1 all rights reserved itis 2008 single window development and implementation the singapore...

1All rights reserved ITIS 2008

Single Window Development Single Window Development and Implementationand Implementation

The The Singapore ExperienceSingapore ExperienceJoint presentation byJoint presentation by

Chris TanChris TanAdvisor & Custom ExpertAdvisor & Custom Expert

International Trade Institute of SingaporeInternational Trade Institute of Singapore&&

Satvinder Singh Satvinder Singh Regional Director (Americas)Regional Director (Americas)

International Enterprise SingaporeInternational Enterprise Singapore


AgendaAgenda

1.1. Background & History of The Single Window Background & History of The Single Window ImplementationImplementation

2.2. BenefitsBenefits

3.3. Stages of DevelopmentStages of Development

4.4. Critical FactorsCritical Factors

5.5. Challenges FacedChallenges Faced

04/19/23

Setting the context: Singapore Today

World’s Most Globalised NationA. T. Kearney/ Foreign Policy Magazine 2006 Lowest Level of Government Corruption in AsiaPolitical and Economic Risk Consultancy, March 2006

Most Competitive Asian EconomyGlobal Competitiveness Index (GCI), 2006-2007

2nd Highest Investment PotentialBERI Report August 2005

Most attractive investment incentives in AsiaIMD World Competitiveness Yearbook 2005

Area

Population

GDP (2007) (at current

prices)

Total Trade (2007)

SovereignFund

704 sq km

4.68 million (2007)

US$161.3 billionUS$35,163 (per capita GNI) + 7.7% (annual growth for GDP)

US$562 billion (+19.2%)

US$689 bn (est.)

04/19/23

Setting the context: Singapore in 1980s

• Among the top 20 trading nations of the world• World’s largest port in terms of gross tonnage activity in 1989; 2nd largest in container handling after HK.• External trade alone equal 3.5 times its GDP by 1990• Top 20 trading nations of the world.

.

Trade Documentation:• Involved multiple parties – traders, shipping lines, freight forwarders, shipping, agents etc.• Required multiple endorsement – TDB, Customs, over 35 controlling Agencies• About 10,000 declarations daily in 1987 – TDB was loaded with paper work• 4-20 documents to be completed by each import/export (depending on complexity)• All handled MANUALLY• Cost estimate of trade documentation then – 4 to 7 % of value of goods shipped.• To remain competitive, the reduction of 4 to 7 % costs for trade documentation – good place to start.

5

In the Beginning – The political will In the Beginning – The political will was essentialwas essential

• Singapore political will to be a developed nation by 2000.• Country also needed to gain practical experience with technology – a special statutory board, National Computer Board (NCB) was created under “Ministry of Finance” to help build Singapore into an IT society• It was necc. to build an IT human infrastructure. Ramp up 850 (1986) IT professionals to over 10,000 needed by 1990• NCB first project was computerization of govt. agencies - this was essential as without the sophisticated computer systems installed in govt. agencies, TradeNet would have nothing to hook up to.• In 1985, after the economic recession hit Singapore, a high level committee decided that improvement in external trade as a major goal – led to concentrated effort to adopt IT for port and airport = leading to TradeNet project.• Also there was competitive pressure as HK announced that they were working on a trade oriented EDI system.


Infocomm21Late 90s

Fifth WaveConnected Singapore2003 -

Fourth Wave

BackgroundBackground

Third Wave

IT2000Early 90s

Second Wave

National ITPlanMid 80s

TradeNet•Conceptualized in 1986 as part of National IT Plan• Implemented in 1st Jan 1989 by Singapore Customs

First WaveNational Computerisation PlanEarly 80s


AgendaAgenda

1.1. Background & History of The Single Window Background & History of The Single Window Implementation Implementation


3.3. Stages of Development Stages of Development


5.5. Challenges FacedChallenges Faced


Benefits of TradeNetBenefits of TradeNet

• To facilitate the submission and exchange of structured trade documents electronically for public and private sectors under a one-stop environment

• To Reduce Turnaround time and manpower costs. Improving productivity for business sector and govt. agencies.

• Streamline enforcement and control. For eg Customs& Excise was able to speed up trade and not slow it down.

• Provide for electronic collection of customs duties taxes and fees – which means Customs & Excise are paid faster.

• Collection and compilation of trade statistics – no lag time in qtrly. reporting of trade performance .

9

Singapore Advantage today: Strategic Singapore Advantage today: Strategic Access to real time Trade StatisticsAccess to real time Trade Statistics

Trade statistics of all import and export data are made available to the public on the September 18th 2004 for August 2004 shipments- only 18 days later

The Government has access to real-time data to analyse strategic trade information

Source: The Straits Times 18 Sept 2004

10

World’s first nationwide trade clearance system

Integrates 34 controlling units’ requirements

Before TradeNet After TradeNet

Processing time/permit 2 – 7 days Within 2 mins

Documents Processed Up to 10,000 per day Up to 30,000 per day

Number of documents 3 – 35 docs 1 doc

Singapore Advantage Today: Singapore Advantage Today: TradeNetTradeNet

World’s First TradeNet

11

TradeNet today:

• Single window for customs administration

and trade facilitation

• Serves more than 2,500 companies with 8,000 users

• Processes approx. 8 million permit applications per year

• More than 97% of the total applications are auto-processed

• Balanced regulatory and facilitation

functions backed by security technologies

• Trade has grown from US$64 Bil in 1988

to US$264 Bil in 2003. Today trade

stands at US$600 Bil in 2008.

The Singapore Advantage Today: The Singapore Advantage Today: Ready to take on more growth – Ready to take on more growth –

trade to reach US$1 trillion by 2011trade to reach US$1 trillion by 2011

12

TradeNet

TradeNet - World’s First Nationwide Electronic Data Interchange System- Harvard Business School, 1993 and 1995

“It is estimated that TradeNet saves Singapore traders around US$1 billion per year.” -Robert M Howe, IBM

“…Fill in one online form and receive the import or export license 15 seconds later …”- McKinsey Quarterly 2001 No.2

“…received the Top eAsia award under the Trade Facilitation Category”- 2003 Sep

Singapore Advantage Today: Singapore Advantage Today: Achievements and AccoladesAchievements and Accolades

13

TradeXchangeTradeXchange® - ® - Work in progressWork in progress

• An extension of TradeNet® (Work in progress)

• A neutral and secure platform to provide seamless interconnectivity among commercial and regulatory systems to facilitate the flow of goods within, through and out of Singapore for the trade and logistics businesses

• A Public Private Partnership model for

eGovernment service.

14

TradeXchangeTradeXchange®® Work in progressWork in progress

It will accomplish 2 things:

1 B2B integrated platform to supplement the B2G (Tradenet) system. Links all the private sector stakeholders on a single platform.

2 B2B cross border linkage between private sector in Singapore and overseas customs .

New Benefits:

1 Coys can send over same information to importing side so that overseas importer can simultaneously use the same information to make declarations with its custom authorities

2 2 Lower Business Costs futther: - Single interface to multiple systems - Reduce errors from repeated entries.

3 Enhance further Economic Competitivenes and continus to position Singapore as a global trading hub


AgendaAgenda

1.1. Background & History of The Single Window Background & History of The Single Window Implementation Implementation


3.3. Stages of DevelopmentStages of Development


5. Challenges Faced5. Challenges Faced


• Push came from Political Leadership: A Committee on National Computerization (CNC) was established to develop specific recommendations on ways Singapore could pursue a future in the IT field

• Project driver was established: Government Lead Agency (IE Singapore, formerly known as Singapore Trade Develiopment Board) brought together a disparate group of influential interests and obtained agreement on building technical support, and streamlining procedures and protocols of various agencies

• Ownership and accountability established with stakeholders: TradeNet Steering Committee was created to oversee the process with Sub-Committees to review trade documentation business process, including

– Submission of declarations– Actions by government agencies– Forms of payment– Movement of cargoes– Process for Clearance of cargoes

Stages in Development of Stages in Development of TradeNetTradeNet


• Experiment with a prototype online system called TradeDial up which allowed traders to dial in and complete trade forms online

• 2 Years Lead Time for Public Acceptance Through announcement by then Minister of Trade and Industry on the TradeNet project

• Singapore Network Services Pte Ltd (SNS presently known as Crimsonlogic was created to own and operate the TradeNet system - Mar 88)

• Both incentives and disincentives rolled out for the traders to adopt the new system online. ( e.g.Attractive tax write–offs given for hardware purchases by enterprises; making it cheaper to transact online vs manual application; provision of training for electronic filing for trading community).

• First transaction on TradeNet submitted on 1 Jan 89, approval was returned 10 minutes later

• Direct capital costs of TradeNet development U\S$10 mil.

Stages in Development of TradeNetStages in Development of TradeNet


Structure of TradeNetStructure of TradeNet

A single point of service to trader

High VolumeHost to Host

Link

WindowSoftware

Customer

CUSTOMER

HOST

Internet

TradeNet Front End

INTERFACE

TradeNet Host (Back End)

Customs

Singapore Customs and

34 ControllingUnits

( CrimsonLogic)34 other

C.U.s


Structure of TradeNetStructure of TradeNet

Components of the back end applications– Document Checking System (5150

Validation rules)– Singapore Customs’ Permit Processing

System ( 620 Validation rules)– Control Units

• 1. AEB (130) 28. …….• 2. FPD (190) 29. CWC

(230)• 3. CUP (140) 30. CCU

(160)• 4. RCU (160) 31. TRU

(140)• 5. FCD (120) 32. CDE

(140)• 6. DAD (140) 33. PCD

(140)• 7. CVC (160) 34. CNB

(160)• …. 35. SC, Prohibition (170)

INTERFACE

TradeNet Host (Back End)

IECustoms

Singapore Customs and

34 ControllingUnits

( CrimsonLogic)

34 otherC.U.s


Performance MeasurementPerformance Measurement

• System Must be available 24 x 7 with 99.98% of Uptime• Faster Turnaround Time

• Approval of declarations Within 10 minutes of Submission

• Improve Convenience and Efficiency• 24 x 7 at Traders’ Premises• Reduce Paper Work

• Reduce Costs• Paperless Clearance• Cashless Transaction


Government AgenciesGovernment Agencies Singapore Customs (System Owner)Singapore Customs (System Owner) Other Government Agencies (controlling agencies responsible for issue of licences Other Government Agencies (controlling agencies responsible for issue of licences

such as Ministry of Health, the Singapore Police Force)such as Ministry of Health, the Singapore Police Force) Inland Revenue Authority of Singapore (for accounting of value added taxes of Inland Revenue Authority of Singapore (for accounting of value added taxes of

imported goods)imported goods) Department of StatisticsDepartment of Statistics

Private SectorsPrivate Sectors Systems Integrator and Operator (National Computer Systems)Systems Integrator and Operator (National Computer Systems) Front-end vendors Front-end vendors Value Added Network operator (e.g. Crimson Logic)Value Added Network operator (e.g. Crimson Logic) Chambers of CommerceChambers of Commerce Importers/ExportersImporters/Exporters Freight forwarders/Logistics OperatorsFreight forwarders/Logistics Operators Port/Airport Terminal OperatorsPort/Airport Terminal Operators Warehouse OperatorsWarehouse Operators

ParticipantsParticipants


TradeNet OperatesTradeNet Operates

• 24 hours a day

• 365 days a year

• Processing of Trade Declarations is Fully Automated No Human Intervention)

• Automated Routing of Declarations to Relevant Government Organizations

• 99% of all Inward/Outward Declarations are Processed Within 5 Minutes

Service LevelService Level


• Significant savings which accrue from reducing the burdens of trade documentation

• Reduces 27 trade documentation into a single online form to serve all trade documentation needs in Singapore

• Turnaround time for processing was reduced from 2 to 4 days to as little as 10 minutes

Advantages of TradenetAdvantages of Tradenet


• Submission and Retrieval at own premises

• Reduced trade documentation processing costs by 20%

• Freight Forwarders reported savings of 25%-35% in handling trade documentation


25All rights reserved ITIS 2008 25

Bulk of permit applications are auto processed (except for some controlled goods) without the need to submit supporting documents

Duty/GST are electronically are collected via the system through Inter-Bank GIRO (e-payments)

With linkages between Customs and relevant Controlling Agencies a single submission suffices for processing by all the agencies



AgendaAgenda



3. Stages of Development3. Stages of Development

4. Critical Factors4. Critical Factors


27•All rights reserved ITIS 2008

Critical Success FactorsCritical Success Factors

• High Level Government Support

• Development of ICT MasterPlan

• Business Process Reengineering within agencies to remove

redundancy and streamline processes and procedures (leading to the

acceptance of a single administrative document for trade purposes

• Inter-Agency Coordination

• Use of industry standards for electronic messaging to ease adoption

(e.g. UNEDIFACT, ebXML, RosettaNet)

• Redesign Infrastructure at border posts to provide for separate

clearance locations of passengers and cargo


• Support trade documentation software developers (developing

programs to access TradeNet portal) through testing and

certification of the programs for quality assurance

• Provide uploading of common data elements based on

international standards such as port codes, country codes, and

including tariff codes to trading community

• Support and endorsement from banking sector to participate in

the electronic transfer of funds and advancement of cashless

transactions



• Close Collaboration & Consultation with all parties involved, Close Collaboration & Consultation with all parties involved,

including private sectors – development of community including private sectors – development of community

networks serving specific industry sector such as Maritime and networks serving specific industry sector such as Maritime and

Air Services community, seminars and regular dialogues with Air Services community, seminars and regular dialogues with

trading communitytrading community

• Provide free software developed by Customs for warehouse Provide free software developed by Customs for warehouse

inventory control systemsinventory control systems

• Comparatively Low cost of telecommunications servicesComparatively Low cost of telecommunications services

• Capacity building through training provided to private sector Capacity building through training provided to private sector

by Singapore Customsby Singapore Customs



AgendaAgenda



3. Stages of Development3. Stages of Development

4. Critical Factors4. Critical Factors



Challenges FacedChallenges Faced

Availability of ICT Resource Personnel

•Emphasis on ICT MasterPlan

•Development of Institute of Systems Studies (ISS) to produce required manpower

•Formation of a National Computer Board (NCB) to oversee ICT development with focus in the public sector

•Deployment of ISS graduates employed by NCB to government sector to formulate, develop and maintain computer systems



Fear of Loss of Employment Within Private Sector

•2 Years Lead Time announcing change – Change Anticipated

•Retraining of Personnel for employment in other sectors with support

from government under a Skills Development Fund – provides for

recovery of portion of funds expended by employers for training

purposes

•Employment opportunities support from Ministry of Manpower and

the Unions

•Full Employment Environment



Fear of Redundancy Within Public Sector

•Retraining of Personnel in other required skills•Redeployment to consequent tasks arising from computerization

• risk management • Pre-clearance • Intelligence• Investigations• Post-clearance

1 all rights reserved itis 2008 single window development and implementation the singapore...

Documents

essential singapore

external trade

singapore today worlds

gdp us

s tradenet

trade documentation

wave background

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