Role of Information Technology in Trade Facilitation › news › userFiles › AnthonyBusuttil.pdf · Customs (Export) Port Customs ( Import ) Original B/L, Invoice, PO, Packing

MALTA SHORTSEA PROMOTION CENTRE SEMINAR MALTA SHORTSEA PROMOTION CENTRE SEMINAR

23 May 2011

Role of Information Technology in Trade Facilitation

Customs’ Perspective

Speaker: A Busuttil

MALTA SHORTSEA PROMOTION CENTRE SEMINAR – May 2011

GOODS

PAYMENT

The Trade Transaction

S BINFORMATION

INTERNATIONAL TRADE TRANSACTION PROCESS

CommercialProcedures

• Establish Contract

• Order Goods• Advise On

Delivery• Request Payment

TransportProcedures

• Establish Transport Contract

• Collect, Transport and Deliver Goods

• Provide Waybills, Goods Receipts Status reports

RegulatoryProcedures

• Obtain Import/Export Licences etc

• Provide Customs Declarations

• Provide Cargo Declaration

• Apply Trade Security Procedures

• Clear Goods for Export/Import

Financial Procedures

• Provide Credit Rating

• Provide Insurance

• Provide Credit• Execute Payment• Issue Statements

INVOLVES

Prepare For

ExportExport Transport Import

SHIPBUY PAY

Prepare For

Import


Arrival Notice

Letter of

Instruction

Invoice, PO

Importer’s

Bank

Ocean Carrier

Customs House

Broker

Line of Credit

Proforma Invoice

Shipping & funding detail

Cargo

Status

Vessel Booking Request

Cargo

Status

Shipping & Funding Detail

Exporter’s

Bank

Importer Exporter

Vessel Booking Confirmation

Bill of Lading

Rated Bill of Lading

Dock Receipt

Freight Forwarder /

NVOCC

Purchase Order

LC

Confirmation

AES

Dock receipt

Pick-up & Delivery Order

Vessel Manifest

Dock receipt

Release/Approval

Demurrage

guarantee &

payment

Inland

Carrier

Manifest

Pick-up &

Delivery Order

Importer Notice

Converted Vessel

ManifestCustoms (Export)

Port

Customs ( Import )

Original B/L,

Invoice, PO,

Packing List

Inland

Carrier

Marine

Insurance

Company

Fund Transfer

Confirmed Line of Credit

Release/Hold

Notice

Purchase Exportation Importation

Import

Terminal

Operator

Proforma Invoice

Export Declaration

Export Declaration

Bill of lading, Documentation

Import

Docs

Export

Terminal

Operator

Data exchange in International Trade

• 20 actors;• > 200 data

elements;• Manual

procedures;• Multiple data

systems;• > 30 documents

or messages.


Trade Facilitation Definition: “ The simplification, standardization and harmonization of procedures and associated information flows required to move goods from seller to buyer and to make payment”

Resulting in: A trade environment which is more predictable, secure and cost efficient


TRADE FACILITATION

Process of eliminating all unnecessary elements and duplications in formalities, processes and procedures

Simplification Harmonisation

Alignment of national procedures, operations and documents with international conventions, standards and practices.

Standardisation

Process of developing internationally agreed formats for practices and procedures, documents and information.


Revenue Collection of import taxes (duties & excise)

Protection of society <health, safety>(drug trafficking, firearms, environment, counterfe it etc.)

Economic development <trade, investment> (trade facilitation)

Protection of Economic Interests(domestic production & services industry)

Security <terrorism>(shifting focus to supply chain)

Customs Roles


Evolving concept of trade facilitation

� Protection of Safety and Security Interests

Behind-the-bordermeasures

� Protection of Revenue and Economic Interests

At-the-border measures


Customs Tools

Legal

• Customs Legislation

Technology

• Examination Technology

• Information Technology

• Surveillance Technology


Role of Information and Communication Technology in Trade Facilitation

• Standardisation of data requirements

• Automation

• Trader interface

• Single window for all import or export related requirements

• International electronic exchange of trade data

• Risk management based on risk profiles and targeted controls


EU Electronic Customs Projects (1)

• New Computerised Transit System (NCTS) and NCTS-TIR , for managing transport of goods which are not in free circulation over EU territory.

• Automated Import System (AIS) , for ensuring that import operations started in a MS can be completed in another MS without resubmission.

• Automated Export System (AES) , for ensuring that export operations started in a MS can be finalised in another MS without resubmission.

• Excise Movement and Control System (EMCS) , for monitoring movements of excise goods under suspension of excise duty.

• Economic Operators Registration and Identification Sys tem (EORI), establishing a unique system of registration and identification of economic operators in the EU.

• Authorised Economic Operator (AEO) , permitting online consultations between NAs and easy access to list of ‘reliable’ traders eligible for additional simplifications.


• Single Authorisations for Simplified Procedures , for management of authorisations for simplified procedures involving more than one customs administration.

• Registered Exporters established in third countries , for updated information about list of ‘trusted partners’ involved in export of goods to EU based on preferential rules of origin.

• Single Electronic Access Point , allowing traders to submit customs declarations via a single interface of their choice to connect with all MS customs systems.

• Integrated Tariff Environment , to harmonise interfaces between different tariff-related IT systems.

• Risk Management Framework (RMF) , to provide for the rapid, direct and secure exchange of risk information to support targeting of consignments for customs controls and for the Commission to be able to disseminate information concerning Community-wide threats.



• EU Customs Information Portal , providing access to information related to import/export requirements, including relevant information from non-customs domains (eg. agricultural, environmental, other legislation), information on the operational status of movements, and links to NA portals.

• Single Window , to enable economic operators to lodge electronically and once only all the information required by customs and non-customs legislation for EU cross-border movements of goods.



OoDepOoDepOoDep

AccAccDocDoc

OoDesOoDes

TraderTrader

IE01IE01IE01

IE15IE15IE15

Data InputData Input

TraderTrader

IE18IEIE1818IE06IEIE0606

Data InputData Input

MRNMRN

AccAccDocDoc

IE29IE29IE29

IE01IE01IE01

IE15IE15IE15

Simplified

Procedure

Normal

ProcedureNCTSNCTS

MRNMRN


CarrierCarrier

Office of Office of Subsequent Subsequent

EntryEntry

Office of Office of First First EntryEntry

ENS Lodged

MRN/No Load Communication

Arrival Notification

Arrival Accepted

Risk Notification

ICSICS


Risk Assessment

Combining Technology with Legal Facilitation

Regular Shipping Service

A regular service which carries goods in vessels th at ply only between ports situated in the Customs terr itory of the Community and may not come from, go to or ca ll at any point outside this territory or in a Free Zo ne of control type 1 of a port in this territory.


Goods in free circulation�No customs documentation required

Non-free circulation�Transit Procedure required

–Guarantee required except where–Ship’s Manifest used (Shipping Company – Principal)

Goods in free circulation�No customs documentation required

Non-free circulation�Transit Procedure required

–Guarantee required except where–Ship’s Manifest used (Shipping Company – Principal)

SafeSeaNet System• Set up with the main objective of aiding the collec tion, dissemination and harmonised exchange of maritime d ata.

• Besides serving as a database, it has developed a Community vessel traffic monitoring and information system according to Directive 2002/59/EC.

• Information contained in the system and mandated by the Control and Safety at Sea Legislation, is often sim ilar or even identical to information requested by other authori ties.

• Possibility for broadening of the SafeSeaNet scope, which could include information of interest to other bodi es or

administrations such as Customs and Border Police.

Tracking of Regular Shipping Vessels (1)



Vessel Monitoring System by SafeSeaNet

Source: EMSA



Blue Belt Pilot ProjectThe project will explore new ways to facilitate Short Sea Shipping in the EU by reducing the administrative burden for intra-Community trade.

Directive 2010/65/EUThe SafeSeaNet systems established at national and Union level should facilitate the reception, exchange and distribution of information between the information systems of Member States on maritime activity.


• Fast

• Safe

• Accurate (high definition imagery)

• Non-invasive (no physical disturbance)

• Non-disruptive (no physical damage)

Role of Customs Examination Technology in Trade Facilitation



• Cost

• Compatibility

• Training Needs

• Systems Breakdown

• Underestimates significance of human intervention

Limitations of Technology

End of Presentation

Thanks for your attention


Documents

Role of Information Technology in Trade Facilitation › news › userFiles › AnthonyBusuttil.pdf · Customs (Export) Port Customs ( Import ) Original B/L, Invoice, PO, Packing