Single Window Development and Implementation Experience of Singapore

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 Making Waves Since the 1980 s ( Singapore Roadmap ) Fifth Wave Fourth Wave Third Wave IT 2000 Second Wave National Early 90 s ITPlan First Wave Mid 80 s National Computerisation Plan Early 80 s Infocomm 21 Late 90 s Connected Singapore 2003 - • Conceptualized in 1986 as part of National IT Plan • Implemented in 1 st Jan 1989 by Singapore Customs. UNECE UN/CEFACT

Background The Objectives of Trade. Net ® UNECE UN/CEFACT

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

Background The Path of Trade. Net ® Version 1. 0 • Declarations were batched up • Turnaround time in half-an-hours Version 1. 8 Version 2. 0 • Major business processing upgrade • Implemented Electronic Submission • Declarations were batched up • Turnaround time in few days • Interactive Trade. Net • Approval within 2 - 5 minutes Version 3. 1 UNECE UN/CEFACT

Design and Development Process UNECE UN/CEFACT

Design and Development Process q q q To evaluate Technology Consolidate Data Element to form Trade. Net 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 ) UNECE UN/CEFACT

Design and Development Process Current Structure of Trade. Net® Front-end Traders VAN operator Singapore Customs Trade Community Controlling Agencies UNECE UN/CEFACT

Structure and Services • Submission of Trade. Net applications # Import # Export # Transshipment # Removal # Container # Controlled/Non-controlled/Strategic goods # Payment/Non-payment # Cert of origin and other applications • Amendment of Trade. Net applications • Cancellation of Trade. Net applications • Auto Process of Trade. Net 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 Trade. Net permits (CCS) UNECE UN/CEFACT

Technology UNECE UN/CEFACT

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

Participants Private Sectors q Importers q Exporters q Shipping Agents q Freight Forwarders q 3 rd or 4 th Party Logistic Companies ( 3 PL/4 PL ) q Other Trade communities UNECE UN/CEFACT

Participants UNECE UN/CEFACT

Statistics Frequency of use for Trade. Net q q q 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 Trade. Net is around 30, 000/day. On the average, declaration is being processed and approved within 5 minutes. UNECE UN/CEFACT

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

Results q Single Window border Automation System (APEC, 2003 b) UNECE UN/CEFACT

Key Consideration UNECE UN/CEFACT

Future Plans q q q 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 UNECE UN/CEFACT

Future Plans UNECE UN/CEFACT

Future of Trade. Net ® 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 4 PL Provider. • Trade. Net will be one of the Core Applications UNECE UN/CEFACT

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

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

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

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Reference • King, J. and Konsynski, B. Singapore Trade. Net (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 Trade. Net (B): The Tale Continues. Harvard Business School, Case N 9 -193136, Cambridge, MA, 1993. • Teo, H. H. ; Tan, C. Y. and Wei, K. K. Organizational Transformation Using Electronic Data Interchange: The Case of Trade. Net in Singapore. Journal of Management Information Systems, Vol. 13, No. 4 (1997), pp. 139 -165. UNECE UN/CEFACT