Trends and Challenges, Solutions, Environments e-Customs; Border Security; Alain Clo; Single Window Customs; Border Management

1. Customs and Coordinated Border
Management
• Customs Environments
• Trends and Challenges
• Business Case and Solutions
Alain Clò
E-Government and
High Performance Specialist

2. Agenda
• Customs Public agencies
• Evolving Role of Customs
• High Performance Customs
• Customs Single Window – Trade Process
• Border Management - Paradigm Shift
• Economic and Customs Landscapes
• Addressable Business in Customs
Alain Clò- eGovernment Specialist 2

3. Customs Public agencies
• Central Administration :
– Customs management systems
– Trade Tariff systems
– Trade Quota monitoring systems
– Export licensing systems
• Customs Border control :
– EDI
– Anti-Smuggling
• Airport- & Port Authorities :
– EDI
– Customs declarations
– Cargo management systems
• (Logistics companies/Freight forwarders)
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4. eCustoms EcoSystem Custom National Gov't
Management Ensures
Reporting
Reporting
System
Trader is legitimate, System
Trader checks export quota &
Applies for Export Licensev ensures quota for country of
destination has not been
WTO/WCO
exceeded Harmonized Codes/Tariff
WTO/WCO
National
Quota
System
Shipping/Logistics Company
Ensures all appropriate paperwork
is in order & accompanies Product
Tariff
Transports product to destination System/
Calculator
CMS
Harmonized Codes
Country of Destination
Local Shipping/ National Gov't
Logistics Partner Port Authorities Monitor status &location of shipment
Represents Trader to Country Perform Cargo Management Accept shipment &performs Customs
of destination National & Scheduling for local port Declaration.
Gov't Accept shipment & performs Customs
Declaration
Cargo
Management

5. Evolving Role of Customs
• Traditional Role of Customs is Revenue Collections from
– Customs Duties and Value Added Taxes
– Excise Taxes
• Provides Major Revenue Source for States
– ~1/3 of National Budgets
• The Pressure comes
– from Merchandise Volume Growth (Annual Export WTO)
China 35% India 26% EU 21% US 13%
– And Growing Innovative Threats such as counterfeit, frauds,
smuggling, terrorism
• World Wide Trade will be around 60$ Trillion by 2020
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6. High Performance Customs
• High Performance is needed for Customs in order to
– Facilitate Legitimate Trade / Optimize the Global Supply
Chain
– Protect Nations and Citizen from Innovative Threats
(counterfeit, frauds, smuggling, terrorism)
• Hot Topics are
– Single Window System
– Coordinated Border Management
– Risk Assessment - Authorized Economic Operator
– SOA, Identity Management, RFID
Alain Clò- eGovernment Specialist 6

7. Single Window Systems
• Facilitate Legitimate Trade
• Single Window for customs services
– Paperless, On-Line G2B2G (government-to-business-to-
government) cooperation, On-Line C2B (customs to business),
One Point of Contact for access to declarations, permits, etc ...
– Transforming ot Migrating Bespoke* Legacy Systems to net- and
network-centric services using international and regional standards
for customs processes (WCO etc.), InterOperable Integrated e-
Customs Services systems
• Move to modern systems using International and Regional
Standards (UN,WTO)
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8. Customs Single Window - Scenario
World Trade Organization
World Customs Organization
European Commission
Politicies
DataBase
Tariff and Quota
Ministry of Finance
Single Window Scope
Import Risk
Licenses Managment Customs Border Control
Request Payments of (fraud, counterfeit,
Excises, VAT laundry, smuggling,
Registration and Duties weapons, drugs,
Calculation of Sanitary checks,...)
Logistics Duties
Traders
Exchanges- Alerts Scanner, RFID
Foreign Portal Access
Customs Logistics
Alain Clò- eGovernment Specialist Trader 8

9. Trade Processes
B2G
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10. Trusted Foundation Software
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11. Example: ICDTS
National Bank Traders
Reference Data
Excise ZEFIR Subsystem
Module
Budget Accounting and
TOR Module Tax/Customs Clearing
System
Reporting
Module
Analytical Subsystem
Customs (Data Warehouse)
Validation Government
Module CELINA
Gateway
Declaration Processing
System (Export,
Risk Analysis Import, Transit)
Module
Operational Tariff Users in Ministry of
with Tariff Calculator Finance and
Customs Agencies
EU systems: ISZTAR (Master Tariff)
TARIC, NCTS, TQS, Central Statistical Office
EBTI, ISPP, SMS and CCN/CSI EU NCTS (Transit)
others Other Government systems
Other Customs systems
Alain Clò- eGovernment Specialist *) Modules under development
11

12. Function List
Tariff data Duty and tax clearing
Posting of Debtors’
Main processes Commodity
codes
Duty rates amounts due management
Guarantees’ &
Tariff Bank support Deposits’
Tax rates
Traders’ support measures Support
Roles’ Non-tariff Liquidation
Registering Legal basis Vindication
management measures Assets’ Sale
Status Guarantee Binding tariff Sensitive General General
management management information goods’ lists Collaterals Ledger
License Amendment Tariff Budget
Traders
Traders Traders Duty anddue
Amount tax
Expenses and Traders
management service Tariff data
calculator Costs
support Discipline
support
support
support support clearing Control
Balancing
Recording and Verification of Collection Release for
Notification w/previous
risk analysis declaration of dues procedure
declarations
Declaration processing
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13. Technical Architecture
Front Office Integration & Customs
Security Back Office
Logistics saml:ldaps
https:ssl
WS-Security Customs
Identity Processing
Management
Traders Customs
e-
ID Gateway
or
Customs Portal
Users Integration :
JMSGrid
DMZ1
Police Firewalls
Portal in Cluster DMZ2
Cluster of Web Servers and
Coastal Http Transactions Identity Server Cluster mode Cluster DBMS
Clustered Load Balancing Workflow in Cluster mode High End Servers
Guards ESB + JMS Grid Storage systems
Alain Clò- eGovernment Specialist 13

14. Design, Development, Implementation
• Single Window Design
– Automate Single Window
– Re-engineer BackOffices
– Simplify Trade Documents and Eliminate Duplication
– Streamline Trade Transactions Processes
• Capability Assessment, Partner/Supplier Selection, Design,
• Build, Test, Implement, Operate, Mandate, Governance
• Issues :
– Trade Processes / Chain Effect / Everything Must Fit
– Manage Project Risks, Inter-Institutional Dependancies
– Resistance to Change / Organizational / All Electronic
• Success Factors : Relevancy to Firms, Commitment from Top
Government, Cooperation between private sectors and government,
Simplification, Standardization
Alain Clò- eGovernment Specialist 14

15. Border Management - Paradigm Shift
• Control focus • Facilitation/control balance
• High levels of Physical inspection • Intervention by exception
• Focus on the goods • Focus on information
• Focus on identifying non-compliance • Compliance/non-compliance balance
• One size fits all • Flexible solutions for different clients
• Limited use of ICT • Extensive use of ICT
• Adversarial relationship with trade • Constructive partnership with trade
• Competition between agencies • Single window (or single submission)
• Limited incentives for compliance • Strong incentives for compliance
• Limited cooperation with neighbors • Extensive cooperation and sharing
• Limited operational statistics • Clear measures of performance
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16. Other Challenges and Trends
• Efficient Risk Management (risk-classification-increased/
reduced control), Authorized Economic Operator
• Coordinated Border Management, Cross Border and Cross-
Agency Information Exchange/ reporting co-operation (tax
authorities – border security – health & food inspectorates)
• Fraud Detection (customs duties and taxes)
• Anti-Smuggling
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17. Economic and Customs Landscapes
Initiatives
TransEuropean Customs InfoNet
EU CUSTOMS & and Customs and Tax systems
FISCALIS 2007-2013 Single Window
Paperless customs
US Single Window
ASEAN Customs modernisation
and Single Window
TradeNet and TradeExchange
SINGAPORE
Alain Clò- eGovernment Specialist 17

18. Addressable Business in Customs
• Every country must have an IT system for
– Customs duties and import tax collection
– Supporting all customs and country protection
– Procedures (movement of goods)
• 149 countries in WTO
• 25 + 5 EU countries (HS codes, national procedures)
• Evolution of role and operations of customs Authorities and
agencies means the need to restructure customs
infrastructure every 10-20 years.
• An automated custom system 5M$ average
• Addressable WW Customs Solution IT Markets : > 3Billion $
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19. Layers – Who Does What
Politics, Quotas and Tariff : European Commission DG Taxud, WCO, WTO
Ces intitutions développent les directives politiques, et fournissen aux pays des outils de type Base de
Données Quota et Tariff.
World Bank, United Nations, UNECE, UNCTAB, USAID
Ces organismes fournissent des fonds financiers aux pays en voie de développement et sont
souvent maître d'ouvrage.
Consultants, Integrators : Accenture, Crown Agents, IntraCom, Gainde
Ces sociétés sont maître d'oeuvre/ouvrage des projets Douanes.
E-Customs Solutions and ISVs: Bull, Crimson Logic, IBM
Ces sociétés développent et vendent des logiciels pour les Douanes.
Vendors, Products, Technologies: Microsoft, IBM, Oracle, SAP
Ces sociétés développent et vendent des produits informatiques non spécifiques aux Douanes.
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20. References
• EU Commission – Customs and Taxations
http://ec.europa.eu/taxation_customs/index_en.htm
• Accenture Customs 2020
http://www.accenture.com/Global/Services/By_Industry/Governm
• e-Customs Best Practices, Global Government,
Sun Microsystems, Inc.
Alain Clò- eGovernment Specialist 20

21. Customs and Coordinated Border
Management
• Business Development
• Project and Team Management
• Solution Architect
Alain Clò
E-Government and
Thank You ! High Performance Specialist
Alain Clò- eGovernment Specialist 21