Belgrade

1
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.
2
Contents

• Introduction
• Approach and Objective
• Findings and Recommendations

3
The international trend for import/export
processing today is a Customs-led Single Window
to enhance import/export regulatory processes and
services
Introduction
CONCEPTUAL
Single Window Conceptual Architecture Overview
Government Incl. foreign countries
Citizen/ Traveler
Business community

• 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

G2G
B2G
C2G
Access Channels
Web
VAN
Counter
Mobile
etc.

• Standards and web-service to enable the delivery
  of service through multiple channels
• Converts messages into standard format
• Provides protocol and syntax checks

Service Delivery Platform

• 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

Message Conversion
Syntax and Protocol Checks
Single Window Services
Shared Data Solution
Access Rights Mgmt
Workflow Routing
Risk Management
Cargo Declaration
Selectivity
Payment
Refund
Authentication and Validation
e-payment
Handling and Tracking
Goods Declaration
Accounting
Guarantee Management
Release
System and Business Admin
Examination
Integrated Tariff
Special regimes
Trader Registration
Lead Agency
Health
Agriculture
Environm.
Trade
Customs

Duty, tax, fee Assessment
Valuation
Audit
Appeals
Source Booz Allen Hamilton analysis
4
An Import Export Single Window (IES) is a
critical driver for economic growth in a country
Introduction
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 3
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
5
International cross-border movements of goods and
people require an all-of-government view on core
and support functions
Introduction
IES Core And Support Functions - Overview
Human Resource
Information and Technology
Enforcement
Investigation
Passenger selectivity
Cargo selectivity
Interdiction
Cargo Processing
Passenger Processing
Intelligence RiskManagement
Legal
Organization
Source Booz Allen Hamilton analysis
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which moves from a Government Entity-focused
structure to a customer-focused model
Introduction
Import / Export Services Paradigm Shift
ILLUSTRATIVE
ILLUSTRATIVE
Target Customer-Centric Community Model
Current Situation

• Importer, Exporter
• Broker
• Express carriers
• Travelers

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

Customs
Single Window (One Stop Shop) Community Platform
IES Transformation
Environment
other
other
Environment
Customs
Trade
Health
Agriculture
Trade
Agriculture
Health
7
The Single Window transformation process will
have to address international development agendas
in the Customs and trade domain
Introduction
Emerging Trends from Customs Reform and
Modernization
Organization Legal
Process (Cargo, Passenger, Enforcement)
Information Technology
Human Resources

• 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

• 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

• 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

Source Booz Allen Hamilton analysis
8
A modern Customs system connects with
international supply chains, and so requires a
common data standard
Introduction
WCO Data Model Components - Overview
WCO Data Model
Citizen/ Traveler
Business community
Government

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

Standards
UN/EDIFACT Messages
Import/Export Data Sets
XMLCore Components
UML Class diagrams
UML Use case diagrams
Code Sets
Singapore

• TradeNet
• UN/EDIFACT

Canada

• ACROSS
• UN/EDIFACT

Dubai

• E-Mirsal
• No EDI

Ireland

• AEP
• UN/EDIFACT

WCO Data Model
New Zealand

• CUSMOD
• UN/EDIFACT

Persons/ Parties
Locations
Transport
Measurements
Duty/ Tax details
Date TimeDetails
Commercial details
Sources Booz Allen Hamilton analysis, WCO
9
An Integrated Tariff and Commodity Database
(ITCD) unites all government trade regulation in
one single database, enabling a Single Window
Introduction
Target ITCD Situation and Objectives
ILLUSTRATIVE
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

Government authorities
Business community
Citizen/ traveler
Users (domestic and international)
All relevant government stakeholders provide
their requirements
Central ITCD
1
3
2
Regulatory bodies, Customs, health, etc.
4
5

Source Booz Allen Hamilton analysis
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Contents

• Introduction
• Approach and Objective
• Findings and Recommendations

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Situation and Objective
Situation and Approach

• 12 countries in the region reviewed
• Some EU members
• UN/ECE and WCO members
• Similar forms
• Different data requirements
• Gather and analyse data requirements

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On behalf of UN/ECE, Booz Allen gathered data
requirements in all countries and conducted a
data analysis
Situation and Approach
Research and Diagnostic
High Level Data Harmonization Recommendations
?
2
Gather data requirements From countries in the
region
Understand Internal
Drivers of CMP
requirements
?
?
?

• Contact people in respective administrations
• Gather data requirements, translate into English
  and consolidate in one single spreadsheet

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5
1
Develop understanding Of the situation
Develop
Prepare findings and recommendations for Next
steps
Identify Gaps in
Analyse data requirements
Improvement
current CMP
Roadmap for CMP
?
program
and Tactical Review
3

• Draft report
• Consolidate findings
• Develop recommendations for next steps in
  harmonization initiative

• Rationalize data requirements per country
• Identify duplication and redundancies
• Compare requirements among participating countries

• Existing programs
• Current situation of each country
• Scope and objective of the harmonization
  initiative

Identify relevant intl. Standards for
the Harmonization work
Understand External
Drivers of CMP
requirements

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

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Contents

• Situation
• Approach and Objective
• Findings and Recommendations

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Findings
Findings and Recommendations

• The drawbacks of paper forms is the imperfect
  definition of the data
• All the Phytosanitary Certificates reviewed are
  compliant with the International Plant Protection
  Conventions 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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Recommendations
Findings and 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 jost_dietmar_at_bah
.com www.boozallen.com