Governance and Customs Operations: the Role of Information and Communications Technology Regional Co - PowerPoint PPT Presentation

1 / 18
About This Presentation
Title:

Governance and Customs Operations: the Role of Information and Communications Technology Regional Co

Description:

Regional Conference on Investment Climate and Competitiveness ... Misguided economic and social policies had left it very impoverished at the end of the 1980s. ... – PowerPoint PPT presentation

Number of Views:190
Avg rating:3.0/5.0
Slides: 19
Provided by: wb404
Category:

less

Transcript and Presenter's Notes

Title: Governance and Customs Operations: the Role of Information and Communications Technology Regional Co


1
Governance and Customs Operations the Role of
Information and Communications Technology
Regional Conference on Investment Climate and
Competitiveness in East Asia21-22 November 2005,
Luc De Wulf International Trade Department
World Bank
2
Overview of the presentation
  • 1.Governance and Customs
  • 2. Information and Communications Technologies in
    Support of Integrity and Customs
  • 3. The example of Single Window (SW)
  • 4. Ghana TradeNet A Single Window in a
    developing country
  • 5. Conclusions

3
1. Governance and Customs
  • Customs often identified as the most corrupt
    public sector agency . This undermines investment
    climate and growth. New WTO concerns in ongoing
    Trade Facilitation Negotiations
  • But corruption in Customs also reflect the
    situation of integrity in the country as a whole.
    Anti corruption efforts at Customs are best when
    other agencies are also targeted.
  • However Customs operations are especially
    vulnerable to corrupt practices.
  • Integrity campaign can be formulated along two
    axes
  • Reduce Opportunity Modernize with ICT support
  • Reduce Motive Need and greed

4
2. ICT in Support of Integrity at Customs
  • Its importance is recognized by most Customs
    today.
  • Yet, many operate with ICT systems that are
    outmoded, or fail to take full advantage of their
    ICT system for a variety of reasonsincluding the
    reluctance to implement the transparency that
    good use of ICT use implies.
  • ICT use forces the adoption of streamlined
    clearance practices,mainly inspired by WCO- Kyoto
    Agreement.
  • It would be a mistake to design the ICT system
    around present clearance practices.
  • The troyan horse opportunity.
  • The adoption of modern ICT platform is a
    necessary but not sufficient condition for
    modernity in Customs.

5
3. Single Window
  • A Single Window is a system that allows traders
    to lodge information with a single body to
    fulfill all import and export related regulatory
    requirements.
  • It involves all members of the trading community
    private as well as public
  • Does not necessarily have to be electronic, but
    manual processes have many disadvantages
  • Transparency and simplicity are main objectives
    improved integrity is a side result.
  • Single window is intended to reduce the number
    of transactions to a minimum, reduce error rate,
    speed up clearance time, drastically reduce the
    face-to-face contact between traders and
    government agents so as to enhance transparency.

6
(No Transcript)
7
(No Transcript)
8
Requirement for successful introduction of a
Single Window
  • Political will overcomes resistance and mobilizes
    resources
  • Strong Lead Agency has the necessary authority
    and access
  • Partnership between Government and Trade
  • ICT savvy and mastery of good procedures in the
    participating agencies, particularly Customs
  • Clear objectives that take capacities of various
    stakeholders into account
  • Single Window is user friendlytraining and
    support
  • Legal environment is enabling
  • Adoption of international standards helps greatly
  • A communications strategy keeps stakeholders
    informed and solicits their contribution

9
4. Ghana TradeNet Inspiration and
Implementation
  • 4.1 Singapores example
  • Seeds were sown in 1979 when Singapore
    leadership stimulated IT, training as well as
    adoption of IT solutions in government agencies.
    Deliberate decision.
  • Application of IT to trade received priority in
    1985, a reaction to a year of economic recession.
  • Trade documentation flows were studied and
    drastically simplified.
  • Top level government support was announced
    end-1986 TradeNets operation was announced for
    early-1989 and Singapore Network Services (since
    renamed Crimson Logic) was created to own and
    operate the TradeNet system.
  • Competitive bidding for an integrator was won by
    IBM.
  • TradeNet was actually launched in early 1989, use
    was at first voluntary but made mandatory in
    1991. Extensive training and IT savvy of members
    of the trading community helped a lot.
  • TradeNet links about 34 members of the trading
    community to a single transaction point.

10
  • Results of TradeNet From 1989 to today
  • Processing time fell from 2-7 days to 2 minutes
  • Number of documents required for clearance fell
    from a maximum of 3035 to one
  • Transactions rose from 10,000 per day to 30,000
    per day
  • Trade forwarders estimate that they saved 20-35
    of transaction costs
  • Customs duty and excise tax revenues enter
    Treasurys coffers immediately rather than with
    long delay
  • Trade statistics are prepared promptly

11
4.1 Ghana Context and GCNet design
  • Ghana is a mid-sized English Speaking country on
    the coast of West Africa. Its per capita income
    defines it as low income country. Misguided
    economic and social policies had left it very
    impoverished at the end of the 1980s.
  • In the early 1990s new leadership chose for an
    open market-oriented economy. Multilateral and
    bilateral aid supported this new direction. New
    trade policies low tariffs, fewer tariff lines,
    elimination of import quotas, creation of export
    processing zones, total revision of the
    regulatory framework for private sector operation
  • By 1998, results were found wanting and FDI was
    lagging. New direction to lift structural
    investment constrains was decided upon. WB
    supported GATEWAY project. Field visits to
    Singapore, Mauritius, Malaysia led by strong
    Minister of Trade.
  • Impressed by the Mauritius model. Minister of
    Finance trusted that revenues would rise and
    supported the project. Did not trust Customs to
    guide the project.

12
Operational decisions
  • A joint venture company was created to launch the
    Ghana Community Network (GCNet) patterned on the
    Singapore TradeNet. GCNet was to become the
    system integrator. Capital of US 5.3 million
    60 private-foreign and 40 private-public
    Ghanaian (Customs 20,Shipping Council 10, two
    banks 10). GCNet would own and operate the
    system for 10 years and would charge a fee per
    transaction. GCNet operates under a service
    contract with Ministry of Trade and Industry.
  • The IT system consists of
  • Singapores TradeNet
  • Customs Management system of Mauritius

13
Ghanas TradeNet Vision
14
GCNet Implementation
  • Customs adopts new management system diagnostic
    analysis of its procedures, simplification of
    procedures, adjust the Mauritius customs
    management system to its situation. Full fledged
    customs modernization would follow at a later
    stage.
  • Political uncertainties hampered implementation
    but autonomy of GCNet allowed progress to
    continue. Customs needed to be brought on board
    slowly as its staff correctly foresaw a loss of
    facilitation money to which it had become
    accustomed. But staff compensation was adequate
    (Autonomous Revenue Agency since early-1990s).
  • GCNet had to establish its own private
    communications network fiber optic between
    Customs and GCNet, radio links with Customs
    collections stations,dedicated leased lined,
    because of weakness in national network and slow
    modernization program there.
  • GCNet assisted Customs with the introduction of
    its management system and simplification of
    procedures including the Tariff Book.
  • GCNet sensitized traders and other Government
    users to use and advantages of the system.
  • GCNet was rolled out gradually,
    station-by-station. But for stations connected
    its use was made obligatory for all users.
    Contrast with Tunisia where use still is
    voluntary.

15
Outcomes
  • Revenues are up In the first year by about 30
    when accounting for growth in trade volume,
    composition and exchange rate shifts.
  • Clearance times are down No benchmark data
    though, improvements slowed down in recent years
  • At airport 75 same day15 between 1- 2 days
  • At Sea port 14 same day 30 between 1-2 days
  • Customs review takes 15 minutes (against 245
    hours earlier) bank payment 10 minutes compared
    with a few hours earlier.
  • Community network is gradually expanding and is
    being used more intensely scope for more
    members and for making better use of the Network
  • Winners (traders, Treasury, Shippers) are happy
    losers are Customs staff and customs brokers
    they are coming on board, but need further
    convincing that future modernization will enhance
    their status and esprit de corps. Continued
    professional communications efforts are needed.

16
Lessons learned
  • Private-public partnership can work
  • Use if ICT can provide quick results
  • Hands on support for Customs may be necessary,
    but can pay off
  • Top level support for the initiative is necessary
    and needs to be continuous.
  • The Road Ahead
  • Full Customs Modernization needs to be tacked to
    assure further progress and avoid regression
  • More Members of the trading community need to be
    drawn into the Network
  • Clearance time is only one aspect of improving
    the trade logistics chain improvement needs to
    be made in port processes and the still
    excessive standard inspections.

17
5. Conclusion
  • ICT can be used to promote integrity in Customs.
    Single Window is one approach that goes beyond
    Customs and aims at streamlining operations of
    other agencies and members of the trading
    community. It can be used to reduce the
    opportunity for corrupt behavior. But its
    overall impact on integrity will be countered if
    the need motive remains strong.
  • Modalities of implementing the reforms are
    important political support, technical
    expertise, independence , financial stability,
    often external support.
  • Ghanas example showed that a Single Window can
    be implemented with success in a developing
    country, but also that further progress depends
    on overall customs modernization. Why not tackle
    overall customs modernization at the same time as
    introducing the Single Window?

18
Thank You
Write a Comment
User Comments (0)
About PowerShow.com