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UNECE CAPACITY BUILDING WORKSHOP ON TRADE FACILITATION IMPLEMENTATION:

Single Window Development and Implementation Experience of Singapore. Wilfred Tan Country Director, NCS Singapore. UNECE CAPACITY BUILDING WORKSHOP ON TRADE FACILITATION IMPLEMENTATION: TOOLS, TECHNIQUES AND METHODOLOGIES 18 – 20 October 2004, Geneva. Background.

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UNECE CAPACITY BUILDING WORKSHOP ON TRADE FACILITATION IMPLEMENTATION:

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  1. Single Window Development and ImplementationExperience of Singapore Wilfred Tan Country Director, NCS Singapore UNECE CAPACITY BUILDING WORKSHOP ON TRADE FACILITATION IMPLEMENTATION: TOOLS, TECHNIQUES AND METHODOLOGIES 18 – 20 October 2004, Geneva

  2. Background Making Waves Since the 1980s ( Singapore Roadmap ) Fifth Wave Connected Singapore 2003 - Fourth Wave Third Wave Infocomm21 Late 90s IT2000 Early 90s Second Wave National ITPlan Mid 80s First Wave National Computerisation Plan Early 80s • Conceptualized in 1986 as • part of National IT Plan • Implemented in 1st Jan 1989 • by Singapore Customs

  3. Background The Objectives of TradeNet ®

  4. Background VAN - VAN - CrimsonLogic CrimsonLogic Goods imp/export by Air Goods imp/export by Air Trade & Permit Permit manifest info Applications Applications Traders Traders Goods imp/export by Sea Goods imp/export by Sea Controlling Agencies Controlling Agencies Cargo Cargo Cargo Cargo Clearance Clearance Clearance Clearance Permits Permits Goods imp/export by Rail/Road Goods imp/export by Singapore Customs Singapore Customs Checkpoints Checkpoints Rail/Road

  5. Background The Path of TradeNet® Version 1.0 • Implemented Electronic Submission • Declarations were batched up • Turnaround time in few days Version 1.8 • Declarations were batched up • Turnaround time in half-an-hours Version 2.0 • Interactive TradeNet • Approval within 2 - 5 minutes Version 3.1 • Major business processing upgrade

  6. Design and Development Process

  7. Design and Development Process • To evaluate Technology • Consolidate Data Element to form TradeNet specs • Contingency Plan ( e.g. DR Site ) and SOP • Benchmark performance of electronic declaration ( from days to minutes ) • Payment of Duty and GST via Electronic means ( GIRO )

  8. Design and Development Process Current Structure of TradeNet® Front-end Traders VAN operator Singapore Customs Trade Community Controlling Agencies

  9. Structure and Services • Submission of TradeNetapplications • # Import • # Export • # Transshipment • # Removal • # Container • # Controlled/Non-controlled/Strategic goods • # Payment/Non-payment • # Cert of origin and other applications • Amendment of TradeNetapplications • Cancellation of TradeNetapplications • Auto Process of TradeNetapplications (more than 1000 • validation rules) • Enquiry on application status via 24-hours IVR ( Interactive • Voice Response System ) • Auto deduction of duty/GST via GIRO • Paperless clearance for TradeNetpermits (CCS)

  10. Technology

  11. Participants Government Agencies • Singapore Customs ( System Owner ) • Controlled Agencies ( e.g. AVA, A&E, etc ) • IRAS ( Accounting of GST collection ) • RCB ( Registration of Company and Business) • IE Singapore ( Statistics department ) • Etc.

  12. Participants Private Sectors • Importers • Exporters • Shipping Agents • Freight Forwarders • 3rd or 4th Party Logistic Companies ( 3PL/4PL ) • Other Trade communities

  13. Participants

  14. Statistics Frequency of use for TradeNet • Total of 3,000+ declaring agents who are the key users in submitting electronic declarations. • Customs - 1,000+ staff strength on operations • The volume of TradeNet is around 30,000/day. On the average, declaration is being processed and approved within 5 minutes.

  15. Business Model • Front-end Software - VAN Funded • ASP model for front-end with transaction charges • Backend System is funded by Singapore Government ( MOF ) • White paper was being prepared to justify the development and upgrade costs • Outsourcing to vendor(s) in development and maintenance

  16. Results • Single Window border Automation System (APEC, 2003b)

  17. Key Consideration

  18. Future Plans • Liberalisation of VAN • More integration to trade industries, for example : Logistics, Shipping and freight forwarders. • Objective to reduce data entry, information sharing and further costs saving • Centralised platform to act as National Hub for all trade activities • To value add and serve the trade communities better

  19. Future Plans

  20. Future of TradeNet® • Introduce Integrated Single Window e-Logistics • A Single Window System which applies IT in innovative and productive ways to maximize the business value of IT within cargo and logistics operations. It integrates the enterprise systems of the trade community and government agencies and supports the delivery of key strategic business objectives by increasing information velocity, visibility and accuracy. • E-Heart & E-Soul of Trade, Logistics and Supply Chain • Government Owned or Run and Owned by 4PL Provider. • TradeNetwill be one of the Core Applications

  21. Future of TradeNet® Market Place • Manufacturers • Suppliers Customer Service Center Payment Government Agencies Workflow Event Messaging Business Rules Process Knowledge Integration of Application Visibility Freight Management System 3PL/4PL • Customs • Control Agencies • Chamber of Commerce Order Fulfillment • Freight Forwarders Transport Management System Trade Documentation Financial Service Provider • Bank • Insurance • Integration is the Key to Success for e-Commerce Transportation Operator

  22. Future of TradeNet® Challenges of Integrated Single Window e-Logistics Hub • Customers unwilling to pay for or trust such services/transactions. • Some doubts on the return on investment for integration technology (which can be expensive). • Policy issues – Data Protection, Pricing, Service Standards, enforcement, etc. • Getting the agreement of all stakeholders including Governments, Suppliers, Customers, 3PL Parties, Banks and Insurance Companies • Lack of a globally accepted suite of integration technologies and standards.

  23. Future of TradeNet® • Key Benefits of Integrated Single Window e-Logistics • increased trade revenue • streamlined procedures • seamless experience for traders • reduced business cost • increased productivity • fast turnaround (cost and process) • empowered customers • Example of Benefits • Realized Lower Freight Costs • Improved Order Cycle Times • Reduced Inventory • Enhanced Customer Service • Focus on Core Competencies

  24. UNECE UN/CEFACT

  25. Reference • King, J. and Konsynski, B. Singapore TradeNet (A): A Tale of One City.Harvard Business School, Case 9-191-009, Cambridge, MA, 1990. • Neo, B.S.; King, J. and Applegate, L. Singapore TradeNet (B): The Tale Continues.Harvard Business School, Case N9-193-136, Cambridge, MA, 1993. • Teo, H.H.; Tan, C.Y. and Wei, K.K. Organizational Transformation Using Electronic Data Interchange: The Case of TradeNet in Singapore.Journal of Management Information Systems, Vol. 13, No. 4 (1997), pp.139-165.

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