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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
2All rights reserved ITIS 2008
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.
6All rights reserved ITIS 2008
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
7All rights reserved ITIS 2008
AgendaAgenda
1.1. Background & History of The Single Window Background & History of The Single Window Implementation Implementation
2.2. BenefitsBenefits
3.3. Stages of Development Stages of Development
4.4. Critical FactorsCritical Factors
5.5. Challenges FacedChallenges Faced
8All rights reserved ITIS 2008
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 .
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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
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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
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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
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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
15All rights reserved ITIS 2008
AgendaAgenda
1.1. Background & History of The Single Window Background & History of The Single Window Implementation Implementation
2.2. BenefitsBenefits
3.3. Stages of DevelopmentStages of Development
4.4. Critical FactorsCritical Factors
5. Challenges Faced5. Challenges Faced
16All rights reserved ITIS 2008
• 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
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• 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
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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
19All rights reserved ITIS 200819
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
20All rights reserved ITIS 2008
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
21All rights reserved ITIS 2008
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
22All rights reserved ITIS 2008
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
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• 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
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• Submission and Retrieval at own premises
• Reduced trade documentation processing costs by 20%
• Freight Forwarders reported savings of 25%-35% in handling trade documentation
Advantages of TradenetAdvantages of Tradenet
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
Advantages of TradenetAdvantages of Tradenet
26All rights reserved ITIS 2008
AgendaAgenda
1.1. Background & History of The Single Window Background & History of The Single Window ImplementationImplementation
2.2. BenefitsBenefits
3. Stages of Development3. Stages of Development
4. Critical Factors4. Critical Factors
5. Challenges Faced5. Challenges Faced
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
28All rights reserved ITIS 2008
• 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
Critical Success FactorsCritical Success Factors
29All rights reserved ITIS 2008
• 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
Critical Success FactorsCritical Success Factors
30All rights reserved ITIS 2008
AgendaAgenda
1.1. Background & History of The Single Window Background & History of The Single Window ImplementationImplementation
2.2. BenefitsBenefits
3. Stages of Development3. Stages of Development
4. Critical Factors4. Critical Factors
5. Challenges Faced5. Challenges Faced
31All rights reserved ITIS 2008
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
32All rights reserved ITIS 2008
Challenges FacedChallenges Faced
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
33All rights reserved ITIS 2008
Challenges FacedChallenges Faced
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