IT in Singapore Customs Driving Innovation Coping

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IT in Singapore Customs: Driving Innovation & Coping with Change 2008 WCO IT Conference & Exhibition 23 – 25 April 2008 LEE Tiow Yong, Assistant Director-General (Technical Cooperation) Singapore Customs 3/19/2018 1 Copyright 2008 – Singapore Customs

Singapore : An Intelligent Nation, A Global City, Powered by Infocomm Land Area : 704 sq km (2006) Population : 4. 59 million (2007) Per Capita GDP : S$52, 994 (2007) Ranked 1 st World Easiest Place to do Business by World Bank Report “Doing Business 2008” Ranked 2 nd in IMD World Competitiveness Yearbook 2007 Total Trade : S$ 847 billion (2007) Air Cargo Handled : 1, 899, 500 tonnes (2007) Sea Cargo Handled : 483. 6 million freight tonnes (2007) 3/19/2018 4 Copyright 2008 – Singapore Customs 4

Singapore Customs: Facts & Figures Total Staff Strength : 588 In FY 2006/2007, • Collected over S$5. 7 billion against an operating expenditure of S$57. 3 million, spending just 1 cent for every dollar collected; • Processed 9. 6 million customs & trade declarations, with 90% approved within 10 min; • ICT operations constituted 23. 3% of total operating expenses Invested S$34. 2 million from 2004 to 2007 in ICT development 3/19/2018 5 Copyright 2008 – Singapore Customs 5

IT Roadmaps National IT Plans 2007 E-Government i. Gov 2010 (2007 – 2010) 2003 Connected Singapore (2003 -) 2000 Info. Comm 21 (2000 – 2003) 1992 E-Government Action Plan II (2003 – 2006) E-Government Action Plan (2000 – 2003) IT 2000 (1992 – 1999) 1986 1980 Phase 4 : Trade. Xchange®, new Trade. Net ® & e. Customs (2003 - 2007) Phase 3 : Business Intelligence (2000 - 2002) Phase 2 : Integration (1988 - 1996) The National IT Plan (1986 – 1991) The National Computerisation Plan (1980 – 1985) Singapore Customs e-Journey Trade. Net® (1986 – 1989) Civil Service Computerisation Programme (1980 - 1999) Phase 1 : Automation (1981 - 1990) 3/19/2018 7 Copyright 2008 – Singapore Customs 7

Tripartite Partnership for IT Management We take overall responsibility to make IT a strategic enabler of our operations: • Set out vision and goals • Review and streamline business processes Our People • Determine detailed business requirements • Accept and manage business risks • Engage business community and partners 3/19/2018 8 Copyright 2008 – Singapore Customs 8

Tripartite Partnership for IT Management The Government Chief Information Office (GCIO) under the Infocomm Development Authority of Singapore (IDA) support us through: • IT master planning • IT policy development and governance Our • IT project & contract management People • Implement and manage Government-wide IT infrastructure and application systems GCIO • Planning, procurement and management of IT assets and services • IT security administration and monitoring 3/19/2018 9 Copyright 2008 – Singapore Customs 9

Tripartite Partnership for IT Management IT Service Providers GCIO Our People • Select the IT solution and service providers through Best Sourcing • Transparent procurement process 3/19/2018 10 Copyright 2008 – Singapore Customs 10

Reconstitution in 2003 Trade Facilitation Div & Statistics Audit Unit of IE Singapore (MTI) Customs & Excise Department (MOF) § Trade facilitation § Trade documentation § Rules of origin § Revenue collection § Customs documentation § Customs enforcement § Tax suspension schemes Singapore Customs (MOF) Singapore Immigration and Registration (MHA) § Immigration § Registration Checkpoint clearance § Travellers, baggage § Cargo, vehicles Immigration & Checkpoints Authority (MHA) 3/19/2018 11 Copyright 2008 – Singapore Customs 11

IT Challenges of the Reconstitution Challenges Strategies • Short implementation timeframe Immediate • Focus on essential changes first, e. g. new corporate identity • High costs and efforts needed to untwine and • Extend system access to users in other agencies rebuild legacy systems without migrating the systems Medium term • Business process re-engineering before re-building the systems • Designed new IT architecture for Singapore Customs • System development of e. Customs, Trade. Net version 4. 0 & CASS 3/19/2018 12 Copyright 2008 – Singapore Customs 12

Integration of IT Systems for Border Management Implemented in Oct 07, Trade. Net® version 4. 0, e. Customs and CASS form a critical backbone to support Singapore trade infrastructure and cargo clearance for air, sea and land. 3/19/2018 13 Copyright 2008 – Singapore Customs 13

“Big Bang” Implementation of Multiple Border Management IT Systems Challenges Strategies • Complex business processes across agencies • Business rules review • Trade. Net® e-Learning to educate traders of the changes • Harmonisation of business processes across agencies • Different project schedules and vendors for CASS, Trade. Net and e. Customs • Alignment of project schedules and stringent project management • Use of ‘mock-up’ data to facilitate testing of individual systems • Robust integrated testing by agencies 3/19/2018 14 Copyright 2008 – Singapore Customs 14

“Big Bang” Implementation of Multiple Border Management IT Systems Challenges Strategies • Long blackout • Informing traders to submit declarations prior to blackout periods for system periods migration • Use of manual processes during blackout periods • Preparation of sudden load surge after blackout periods • Staggering migration of system components and data to reduce length of individual blackout periods • High implementation risks • Parallel-run for Trade. Net® • Early engagement with the trading community and extensive public communications • Strong commitment from all levels and across agencies • Contingency plans for various worst case scenarios 3/19/2018 15 Copyright 2008 – Singapore Customs 15

What is Trade. Xchange®? A Secure and Neutral IT Platform that Facilitates the Exchange of Commercial and Regulatory Information for Trade and Logistics Community 3/19/2018 17 Copyright 2008 – Singapore Customs 17

Trade. Xchange®: Facilitating Information Flow Trade Documents Preparations Core Services e. g. Shipping Instructions Bill of Lading Desired Airway Bill etc outcomes: Permit Application Value-Added Services • Reuse data in supply chain and streamline documentation Shipper/Seller • Reduce documentation costs and data Port discrepancies booking, Track & competitiveness Trace Singapore Government Trade Finance Processing • Improve strategic with supply chain efficiencies & visibility • Develop the IT industry (value-added. Banks/ Freight Forwarders services providers) Carriers Ports Insurance 3/19/2018 electronic 18 Copyright 2008 – Singapore Customs 18

Trade. Xchange® Services • Messaging and Translation Services - B 2 B service • Title Registry - B 2 B service • Rosetta. Net Automated Enablement (RAE) - B 2 B service • Overseas Highway Customs - B 2 B service • Overseas Highway Manifest - B 2 B service • Shipping Line Linkages - B 2 B service • Integrated Multimodal Solution - B 2 B service • Trade. Net® Version 4 - B 2 G service 3/19/2018 19 Copyright 2008 – Singapore Customs 19

Trade. Xchange® Services : Title Registry • • • A truly electronic bill of lading Enable secure creation and transfer of the title of the goods electronically as part of the import/export trade process Capable of supporting end-to-end electronic title flow or hybrid (electronic-to-paper) title flow 3/19/2018 20 Copyright 2008 – Singapore Customs 20

Trade. Xchange® Services : Trade. Net® V 4. 0 • Single electronic window to the trading community (for new permit applications, amendments, cancellations and refund) • Single clearing house for customs / trade declaration processing • New services offered: Government front-end service, cc copies and printing of permits, permit listings, etc • Reduction in transaction cost (savings of S$0. 42 per declaration) 3/19/2018 21 Copyright 2008 – Singapore Customs 21

Innovation in Trade. Xchange® • Innovation in role of Customs: from purely regulatory function (B 2 G) to facilitating business operations (B 2 B) • Innovation in business model: 1 st Public Private Partnership IT project in Singapore • Innovation in business processes: Integration of Trade. Net with B 2 B services • Innovation in service offerings, e. g. Title Registry 3/19/2018 22 Copyright 2008 – Singapore Customs 22