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Explore the success story of TradeNet, Mauritius' Single Window initiative, which streamlines trade processes, reduces processing time, and enhances efficiency in international trade.
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Single Window Development and ImplementationExperience of Mauritius
Background to the initiative Strategy of Mauritius in the early 1990s: • After the success of the EPZs (mainly in the textile industry), plan to strengthen the economy through the further diversification of economic activities • Decision to increase investment and services in IT • Recommendations to that end by the World Bank in 1993, followed by several studies • One of the feasibility studies: establishment of an network to facilitate the processing of trade documents by electronic means
Design and development process • An extensive analysis was carried out by the public authorities in Mauritius • the most important aspect of the project – submission, processing and approval of declarations and permits by electronic means, and provision of information on the movement of goods – were defined • intensive discussions with potential partners (locally and abroad) and future users were initiated • The Mauritius Network Services Ltd. was incorporated on 15th. April 1994 as a private company
Structure of TradeNet • The Mauritius system – called TradeNet – is a joint venture between - Mauritian public and private sector interests (representing the main actors of the economy), and - a foreign partner providing know-how and experience • Shareholders of Mauritius Network Services Ltd. are: - Maurinet Investments Ltd. (60% of equity) - 53% held by 4 Mauritian public bodies, and - 47% held by the Chamber of Commerce & Industry - Crimson Logic Ltd. of Singapore (40% of equity) (formerly Singapore Network Services Ltd.)
Services of TradeNet • Submission, processing and approval of declarations to Customs within a 15-minute timeframe • Access to air and sea cargo manifests, ships’ arrivals and departures, movement of containers, etc. • Notice of release of consignments • Processing and approval of import and export permits • Payment of duties by electronic means • Using TradeNet, a Contributions Network Project has been launched, allowing the payment of various fees & taxes (VAT, PAYE, Corp. Tax) and contributions by employers to the National Pensions Fund
The technology behind TradeNet • The Mauritius TradeNet is an EDI-based network that allows documents and trade information to be entered into the system and electronically transmitted between all parties involved in the movement of goods (imports and exports) and the Customs Department • Linking with TradeNet at Customs level, a Customs Management System (in fact a Single Window) allows the automatic processing and approval of Customs declarations and provides information • The system can be easily used with a PC, a modem, a telephone line and a Declarant ID
Participants in the Single Window • The participants in the Single Window are all the Government Departments, business concerns and other agencies involved in the country’s international trade and movement of goods: - the Customs & Excise Department - importers, exporters and re-exporters - freight forwarders - the Port Authority and its cargo handling agency - the shipping/airline companies and their agents - the Ministry of International Trade - the Chamber of Commerce & Industry
Clients of MauriNet • The main users of the system are: - the clearing and forwarding agents - large firms who hire their own representatives for the clearance/ forwarding of their consignments - Ministries and other public bodies • Close to 400 public and private bodies/concerns are currently linked to the Mauritius TradeNet system • Submissions can be made round the clock (24/7). Over 1000 declarations on average are received and processed every working day by the country’s Customs & Excise Department
Business model of TradeNet • Joint-venture functioning 100% as a private concern • Equity (± USD 1 million) provided by shareholders • Monopoly of the service within the economic system • Self-sustainability perspective right from the start • Activities financed from 2 sources: - a software single-user licence of $ 1300 at the outset - a service fee of USD 5.- per declaration sent thru’ MNS • Highly successful and profitable activity: - share value multiplied by eight since 1994 - yearly dividends = ± 90% of funds invested
Results of TradeNet • Reduction in processing time of Customs declarations from days/several hours to 15 min. • Declarations sent/information retrieved from one’s office • Paper returns and payments eliminated • One-stop process: one window → one interlocutor • Reduction of errors thru’ the use of a standard software • Harmonisation/control on deadlines and info frameworks • Enhancement of transparency and productivity • Conclusive public/private sector collaboration • Considerable improvement in trade efficiency
Lessons learned from TradeNet • Carefully planned and properly implemented, a Single Window system is potentially self-sustainable, and even highly profitable, anywhere in the world • Certain trade facilitation services directly involving the business community succeed best thru’ joint initiatives of Govt. departments and Private Sector institutions • Full engagement of the Ministries and Govt. agencies concerned throughout is an absolute must • Some parties will attempt to torpedo the initiative • Regular technological updating is necessary • Once telecoms is OK, a SW becomes a must
What are the future plans for the Single Window? • As already mentioned, the TradeNet system has made it possible to set up an offshoot, the Contributions Network • The Mauritian CMS is now used by the Ghana Customs • Plans for the future include: - digitalisation of remaining Customs forms - submission and approval of certificates of origin - implementation of a risk management system - selling of serially-numbered digitalised forms to traders - introduction of an UNeDocs system enabling the electronic exchange of trade documents