Study Presentation

PRESENTATION

SEE Data Harmonization Initiative

A data analysis and recommendations for a regional cross-border data harmonization initiative

Belgrade 22 November, 2007 This document is confidential and is intended solely for the use and information of the client to whom it is addressed.

Contents  Introduction  Approach and Objective  Findings and Recommendations

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Introduction

The international trend for import/export processing today is a Customs-led Single Window to enhance import/export regulatory processes and services CO NC

EP

Single Window Conceptual Architecture Overview

Citizen/ Traveler

Business community

Government Incl. foreign countries

C2G

B2G

G2G

Access Channels Web

VAN

Counter

Mobile

Cross-border data exchange platform such as those provided by the Pan-Asian Alliance on e-commerce (PAA) - Cross-border data transmission - Mutual recognition of digital certificates - Cross-border tracking Standards and web-service to enable the delivery of service through multiple channels - Converts messages into standard format - Provides protocol and syntax checks

etc.

Service Delivery Platform Message Conversion

Processes and technologies to enable data sharing and access between Authorities - Routes requests based on pre-defined rules - Manages access to information sources - Provides identity management - Allows for single payment

Syntax and Protocol Checks

Single Window Services Workflow Routing

Handling and Tracking

Authentication and Validation

e-payment

Lead Agency Health

Environm.

Trade

…

Customs

Source: Booz Allen Hamilton analysis 3

Selectivity

Cargo Declaration

Payment

Refund

Goods Declaration

Release

Guarantee Management

Accounting

Integrated Tariff

Examination

Trader Registration

Special regimes

Valuation

Duty, tax, fee Assessment

Appeals

Audit

System and Business Admin

Access Rights Mgmt

Risk Management

Management Information System

Shared Data Solution

Agriculture

TU AL

Introduction

An Import Export Single Window (IES) is a critical driver for economic growth in a country IES Purpose and Importance What is IES?

Who uses IES?

 IES provides the required information and application platform to manage the international movement of goods and to and from the state of Qatar and the clearance of international travelers  This includes the declaration and examination of goods, the verification of permits and licenses required for import and export, the payment of duties, fees and taxes and the tracking of the whereabouts of the cargo

 All participants in international trade such as carriers, and importers will use IES to accomplish all import/export formalities in accordance to applicable laws and policies  Citizens/travelers as well as businesses will use IES to find information about import and export rules and regulations  Customs and other authorities to use information generated by IES to perform required tasks

Why Improve IES?  A 2007 Transparency & Trade Facilitation study of the 21 member economies of the Asia-Pacific Economic Co-operation (APEC) estimated that trade in the APEC region would gain by 7.5% of baseline trade of 2004 or $148Bn from greater transparency and trade facilitation. (1)  A modernized import/export process can unleash an additional economic growth of between 5 and 10% (see chart, pre-reform growth 5%, post-reform growth up to 15%)  IES will lead to higher compliance with applicable laws and regulations through increased transparency

Post-Reform Impact on Trade Growth Post-reform +31% Pre-reform

Year 0

Year 1

Year 2

(1) Matthias Helble, Ben Shepherd, John S. Wilson, “Transparency & Trade Facilitation in Asia Pacific: Estimating the Gains from Reform,”, World Bank Development Research Group, September 2007 4

Year 3

Introduction

International cross-border movements of goods and people require an all-of-government view on core and support functions … IES Core And Support Functions - Overview

Human Resourc e

Information and Technology Enforcement Investigation C se arg le o ct iv ity

er g n ty se tivi s Pa lec se

Interdiction

Passenger Processing

Intelligence Risk Management

Legal

Cargo Processing

Organizatio n

Source: Booz Allen Hamilton analysis 5

Introduction

… which moves from a Government Entity-focused structure to a customer-focused model Import / Export Services – Paradigm Shift

 Shipping lines, agents  Terminal operator  Stevedore  Warehouse

Customs

Agriculture

Health

AT IV

 Importer, Exporter  Broker  Express carriers  Travelers

Trade

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other

Environment

Trade

Agriculture

other

IES Transformation

Environment

US TR

Single Window (One Stop Shop) Community Platform

Customs

ILL

Target Customer-Centric Community Model

Current Situation

Health

T US

T RA

ILL

IVE

E

Introduction

The Single Window transformation process will have to address international development agendas in the Customs and trade domain Emerging Trends from Customs Reform and Modernization Organization & Legal

 Transitioning from a revenue collection organization to a trade facilitation structure  Alignment with Revenue and Law Enforcement Agencies  Establishments of Regional Service Centers  Customer Orientation and Service Departments  Modernization of customs laws and regulations  Inter-agency information sharing  WTO and WCO compliance

Process (Cargo, Passenger, Enforcement)

 Implementing new risk management techniques  Customs-business partnerships  Trade consultation  Increased border security focus  Pre-arrival processing  Advance rulings  Post-release audits  Immediate release for courier shipments  Account Management Services  Bond release

Information & Technology

Human Resources

 E-payment capabilities  Move to an e-enabled environment  Customs website  Provide a Single Window for all import/export processing  Apply international data standards  Advance Passenger Information

 Moving from performance measurement to performance Management  Increased customs training  Greater accountability of customs officers  Modernized Human Resources practices  Higher education requirements for new customs staff  Increased anti-corruption measures

Source: Booz Allen Hamilton analysis 7

Introduction

A modern Customs system connects with international supply chains, and so requires a common data standard WCO Data Model Components - Overview WCO Data Model  The Data Model is based on international trade and transport standards as defined by the United Nations (UN/TDED) and standardizes – Data structures – Data names – Data formats – Electronic message formats

Business community

Government

Citizen/ Traveler

XML UML Class UML Use case Import/Export Code Sets UN/EDIFACT Core Components diagrams diagrams Messages Data Sets

Standards Singapore TradeNet – UN/EDIFACT ACROSS Canada Dubai

– UN/EDIFACT E-Mirsal –

Ireland

–

 The Data Model also uses internationally applied code sets for – Commodities – Countries – Currencies – Locations – Measurement units – Incoterms

New Zealand

WCO Data Model

Persons/ Parties

Locations

Transport

Measurements

Sources: Booz Allen Hamilton analysis, WCO

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Duty/ Tax Date & Time Commercial details details Details

No EDI

AEP UN/EDIFACT

CUSMOD –

UN/EDIFACT

Introduction

An Integrated Tariff and Commodity Database (ITCD) unites all government trade regulation in one single database, enabling a Single Window S

ILLU

Target ITCD Situation and Objectives

TIVE TRA

Users (domestic and international)

Government authorities

Business community

All relevant government stakeholders provide their requirements

Central ITCD

1

Regulatory bodies, Customs, health, etc.

2

4

Citizen/ traveler

3

5

…

Source: Booz Allen Hamilton analysis

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Objectives

Impact

 Single source for all governmental regulation relating to imports and exports – Duty rate – Tariff suspensions and quotas – Tariff preferences – Anti-dumping and countervailing duties – Units of measure – Prohibitions and restrictions – Certificates, licenses and permits – CITES and dual-use goods  Enable single window and one-stop shop processing

 Streamlined clearance process  Reduced maintenance overhead  Increased revenue protection  Improved risk assessment  Increased transparency for trade  Improved predictability and planning certainty  Improved coherence and consistency in government policies

Contents  Introduction  Approach and Objective  Findings and Recommendations

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Situation and Approach

Situation and Objective

 12 countries in the region reviewed –

Some EU members

–

UN/ECE and WCO members

 Similar forms  Different data requirements  Gather and analyse data requirements

Country

Document SAD

Albania

PSC

CMR



Bosnia and Herzegovina







Bulgaria







Croatia







Greece



Macedonia















Moldova Montenegro Romania



Serbia













Turkey UNMIK/Kosovo

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Situation and Approach

On behalf of UN/ECE, Booz Allen gathered data requirements in all countries and conducted a data analysis

High Level Data Harmonization Recommendations

Research and Diagnostic

 2

Gather data requirements Understand Internal From countries Drivers of CMP in the region requirements

 Contact people in respective administrations

 1

Develop understanding Of the situation

 Existing programs  Current situation of each country

 Gather data requirements, translate into English and consolidate in one single spreadsheet



 Scope and objective of the harmonization initiative

3

Identify relevant int’l. Understand External Standards for the Drivers of CMP Harmonization work requirements

 Review existing standards  Clarify status of standards and relevance for harmonization initiative

 4

 5

Identify Gaps Analyse datain current CMP requirements program

Develop Prepare findings and Improvement recommendations for Roadmap CMP Next for steps and Tactical Review

 Rationalize data requirements per country

 Draft report

 Identify duplication and redundancies

 Develop recommendations for next steps in harmonization initiative

 Compare requirements among participating countries

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 Consolidate findings

Contents  Situation  Approach and Objective  Findings and Recommendations

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Findings and Recommendations

Findings

 The drawbacks of paper forms is the imperfect definition of the data  All the Phytosanitary Certificates reviewed are compliant with the International Plant Protection Convention’s Guidelines for Phytosanitary Certificates.  All Consignment Notes examined are compliant with the Convention on the Contract for the International Carriage of Goods by Road (CMR).  All the Single Administrative Documents reviewed are mostly aligned to the EU SAD form.  While the WCO DM maps to generic UNTDED entries, the UNTDED does contain more specific data elements that are perhaps better matches  The UN Core Components Library is still being developed and therefore many data elements could not be mapped to it  Both the PSC and the CMR contain several data elements that do not have WCO DM equivalents. Some of these entries may be addressed in version 3.0.

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Findings and Recommendations

Recommendations

 For the purpose of a regional data set/model based on the WCO data Model, the EU SAD and EU Customs Code should be the basis for the Customs work  As necessary next steps in this data harmonization initiative, the data requirements for each country should be normalized and consolidated into one national data set or model followed by a consolidation into a regional data set or model  Involve officials from Phytosanitary agencies and experts in transportation and the CMR to ensure proper definition of the requirements for the relevant forms  To the extent that there are data elements that do not have a WCO DM or UNTDED mapping, decide on a harmonization approach. As the WCO Data Model version 3.0 is currently under development and will have significantly more OGA data included, use this initiative to actively participate in the Data Model process and, where required, raise DMRs  As part of the above countries should review the use of certain country-specific data elements and verify whether they are truly required – for example, the field “km to Yugoslavia” in the Serbian CMR is a candidate for elimination from a common data model

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Contact

Dietmar Jost Booz Allen Hamilton [email protected] www.boozallen.com

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