UNECE CAPACITY BUILDING WORKSHOP ON

TRADE FACILITATION IMPLEMENTATION:TOOLS, TECHNIQUES AND METHODOLOGIES

18 – 20 October 2004, Geneva

Single Window Development and Implementation

Experience of SingaporeWilfred Tan

Country Director, NCS Singapore

UNECE UN/CEFACT

Background

Making Waves Since the 1980s ( Singapore Roadmap )

First Wave

Infocomm21Late 90sSecond

WaveNational ITPlanMid 80sNational

Computerisation PlanEarly 80s

Third WaveIT2000Early 90s

Fourth Wave

Connected Singapore2003 -

Fifth Wave

• Conceptualized in 1986 as part of National IT Plan

• Implemented in 1st Jan 1989 by Singapore Customs

UNECE UN/CEFACT

The Objectives of TradeNet ®®Background

UNECE UN/CEFACT

TradersTraders

Singapore CustomsSingapore CustomsCheckpointsCheckpoints

VAN - VAN - CrimsonLogicCrimsonLogic

Controlling AgenciesControlling Agencies

Goods imp/export by Air

Goods imp/export by Sea

Goods imp/export by Rail/Road

Trade & manifest info PermitPermit

ApplicationsApplications

Cargo Cargo ClearanceClearancePermitsPermits

Cargo Cargo ClearanceClearance

Goods imp/export by Air

Goods imp/export by Sea

Goods imp/export by Rail/Road

Background

UNECE UN/CEFACT

The Path of TradeNet ®®

Version 1.0

Version 1.8

Version 2.0

Version 3.1

• Implemented Electronic Submission• Declarations were batched up• Turnaround time in few days

• Declarations were batched up• Turnaround time in half-an-hours

• Interactive TradeNet• Approval within 2 - 5 minutes

• Major business processing upgrade

Background

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Design and Development Process

UNECE UN/CEFACT

To evaluate TechnologyTo evaluate Technology Consolidate Data Element to form Consolidate Data Element to form

TradeNet specsTradeNet specs Contingency Plan ( e.g. DR Site ) and SOPContingency Plan ( e.g. DR Site ) and SOP Benchmark performance of electronic Benchmark performance of electronic

declaration ( from days to minutes )declaration ( from days to minutes ) Payment of Duty and GST via Electronic Payment of Duty and GST via Electronic

means ( GIRO )means ( GIRO )

Design and Development Process

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Front-endTraders

VAN operator

Controlling Agencies

Current Structure of TradeNet®®

Trade CommunityTrade Community

Singapore CustomsSingapore Customs

Design and Development Process

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Structure and Services • Submission of TradeNetSubmission of TradeNet applicationsapplications

# Import# Import# Export# Export# Transshipment# Transshipment# Removal# Removal# Container# Container# Controlled/Non-controlled/Strategic # Controlled/Non-controlled/Strategic

goodsgoods# Payment/Non-payment# Payment/Non-payment# Cert of origin and other applications # Cert of origin and other applications

• Amendment of TradeNetAmendment of TradeNet applicationsapplications• Cancellation of TradeNetCancellation of TradeNet applicationsapplications• Auto Process of TradeNetAuto Process of TradeNet applications (more than 1000 applications (more than 1000 validation rules)validation rules)• Enquiry on application status via 24-hours IVR ( Interactive Enquiry on application status via 24-hours IVR ( Interactive Voice Response System )Voice Response System )• Auto deduction of duty/GST via GIROAuto deduction of duty/GST via GIRO• Paperless clearance for TradeNetPaperless clearance for TradeNet permits (CCS)permits (CCS)

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Technology

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

Participants

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Private Sectors Private Sectors ImportersImporters ExportersExporters Shipping AgentsShipping Agents Freight ForwardersFreight Forwarders 3rd or 4th Party Logistic Companies 3rd or 4th Party Logistic Companies

( 3PL/4PL ) ( 3PL/4PL ) Other Trade communitiesOther Trade communities

Participants

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Participants

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Total of 3,000+ declaring agents who are the Total of 3,000+ declaring agents who are the key users in submitting electronic declarations.key users in submitting electronic declarations.

Customs - 1,000+ staff strength on operations Customs - 1,000+ staff strength on operations

The volume of TradeNet is around 30,000/day. The volume of TradeNet is around 30,000/day. On the average, declaration is being processed On the average, declaration is being processed and approved within 5 minutes.and approved within 5 minutes.

Frequency of use for TradeNet

Statistics

UNECE UN/CEFACT

Front-end Software - VAN FundedFront-end Software - VAN Funded ASP model for front-end with transaction ASP model for front-end with transaction

charges charges

Backend System is funded by Singapore Backend System is funded by Singapore Government ( MOF )Government ( MOF ) White paper was being prepared to justify the White paper was being prepared to justify the

development and upgrade costsdevelopment and upgrade costs Outsourcing to vendor(s) in development and Outsourcing to vendor(s) in development and

maintenancemaintenance

Business Model

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

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Key ConsiderationKey Consideration

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Future PlansFuture Plans

Liberalisation of VANLiberalisation of VAN More integration to trade industries, for More integration to trade industries, for

example : Logistics, Shipping and freight example : Logistics, Shipping and freight forwarders.forwarders.

Objective to reduce data entry, information Objective to reduce data entry, information sharing and further costs savingsharing and further costs saving

Centralised platform to act as National Hub for Centralised platform to act as National Hub for all trade activities all trade activities

To value add and serve the trade communities To value add and serve the trade communities betterbetter

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Future PlansFuture Plans

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Introduce Integrated Single Window e-LogisticsIntroduce Integrated Single Window e-LogisticsA Single Window System which applies IT in innovative and A Single Window System which applies IT in innovative and productive ways to productive ways to maximize the business valuemaximize the business value of IT within of IT within cargo and logistics operations. It integrates the enterprise cargo and logistics operations. It integrates the enterprise systems of the trade community and government agencies systems of the trade community and government agencies

and supports the delivery of and supports the delivery of key strategic business objectiveskey strategic business objectives by increasing information by increasing information velocityvelocity, , visibilityvisibility and and accuracyaccuracy..

• 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

Future of Future of TradeNetTradeNet ®®

UNECE UN/CEFACT

TransportationTransportation OperatorOperator

3PL/4PL•Freight ForwardersFreight Forwarders

Government AgenciesGovernment Agencies

•CustomsCustoms•Control AgenciesControl Agencies•Chamber of CommerceChamber of Commerce

Market Place

•ManufacturersManufacturers•SuppliersSuppliers

WorkflowWorkflowEvent MessagingEvent MessagingBusiness RulesBusiness Rules

Process KnowledgeProcess KnowledgeIntegration of ApplicationIntegration of Application

VisibilityVisibility

FreightManagement

System

TransportManagement

System

Payment

Trade Documentation

CustomerServiceCenter

Order Fulfillment

Integration is the Key to Success for e-CommerceIntegration is the Key to Success for e-Commerce

FinancialFinancialService ProviderService Provider

•BankBank•InsuranceInsurance

Future of Future of TradeNetTradeNet ®®

UNECE UN/CEFACT

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.

Challenges of Integrated Single Window e-Logistics Hub Challenges of Integrated Single Window e-Logistics Hub

Future of Future of TradeNetTradeNet ®®

UNECE UN/CEFACT

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

Future of Future of TradeNetTradeNet ®®

UNECE UN/CEFACT

UNECE UN/CEFACT

UNECE UN/CEFACT

•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.

Reference