cross-border declarations: experience and challenges 4 may 2006 eva c.p. chan dagang net group of...
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Cross-Border Declarations:Experience and Challenges4 May 2006
Eva C.P. ChanDagang Net Group of CompaniesMalaysia
Dagang Net Technologies Sdn BhdLevel 20, HP TowersJalan Gelenggang, Damansara Heights50490 Kuala Lumpur, MALAYSIAhttp://www.dagangnet.com
ECONOMIC COMMISSION FOR EUROPE (UNECE)
United Nations Centre for Trade Facilitationand Electronic Business (UN/CEFACT)
Symposium onSingle Window Standards and Interoperability Geneva, Switzerland, 3 – 5 May 2006
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Outline
Brief Definition of Electronic Cross-Border DeclarationsThe Two Aspects of Cross-Border DeclarationsChallenges ExperiencedThe way forward
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Brief Definition of Cross-Border Declarations
It is the re-use of an export declaration information from one Customs Authority as an import declaration for another Customs Authority
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Outline
Brief Definition of Electronic Cross-Border DeclarationsThe Two Aspects of Cross-Border DeclarationsChallenges ExperiencedThe way forward
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The Two Aspects of Cross-Border Declarations and its Benefits
The Customs Perspective where two Customs Authorities exchange declaration information
BenefitsTo maintain border integrityPre-emptive analysis / lead up to single co-operative inspection methodSpeed up clearance processCross-Border Traceability
The User Perspective where Exporters and Importers, or their Agents exchange declaration information
BenefitsLabour-savingAccuracy / error reductionEfficiency / speed
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Scenario: Export Singapore – Import Malaysia
Tra
de
Pale
tte
Singapore
Exporter / FA
MalaysiaImporte
r/ FA
eD
ecla
re /
Carg
o
Decla
reDag
ang NetGatewa
y
TradeNetGateway
1. Export Declaration
4. Pre-
DeclarationMessage
5. DeclarationData
Email Notification
2. Export
Declaration
3. CustomsResponse
6. Import
Declaration
CustomsSystem
Customs Singapore
6. Import
Declaration
CustomsSystem
Customs Malaysia
Notes:1. Singapore exporter / FA
creates export declaration using TradePalette.
2. Submit export declaration to Singapore Customs.
3. Singapore Customs send Response.
4. CL generates Pre-Declaration to DN.
5. DN populates declaration data into eDeclare / Cargo Declare database.
6. Malaysia importer / FA completes the import declaration for submission to Malaysia Customs.
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Challenges Experienced
Differences in Customs ProceduresDifferences in Customs Data RequirementsDifferences in Business environment/practicesFindings
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Free Trade Port (SG) Vs Conventional Customs port (MY)
Free Trade PortMinimal duty and taxesMinimal data requirementTrading hubTransshipment cargoes
DifferencesSpeedier clearance process at Customs regime with Free Trade Port environment
HK Export / ImportCustoms Declaration to be submitted within 14 days after the goods released
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Proximity
Business practiceData availabilityTime factor
ExampleMalaysia / SingaporeHong Kong / Macau
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Exchange Of Import Declaration
DeclarationSystem
Importing S
P’s
Gatew
ay
Customs System
Export S
P’s
Gatew
ay
1.Import Declaration
2.Import Declaration
DeclarationSystem
4.Pre- Declaration Message
5.Declaration Data
Customs System
6.Export Declaration
Importing FA
Customs ofImporting Country
Customs ofExporting Country
3.Customs Response
Exporting FA
Notes:Reverse flow of the previous scenario.
This Scenario is to cater for1. neighboring countries such as HK-
Macau, SG-MY& etc2. Free Port that requires declarations to
be submitted after cargo clearance such as HK
6.Export Declaration
Email Notification
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Challenges Experienced
Differences in Customs ProceduresDifferences in Customs Data RequirementsDifferences in Business environment/practicesFindings
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Differences in Customs data attribute
Data field lengthGoods description e.g.
MY – 70JP – 40SG – 175HK – 70 for English, 23 for Chinese
Number of line itemsMY – 999SG – 50KR - 999
Decimal places
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Differences in Customs data structure
number of BL per declaration1 BL per declaration (BL # at header level)Multiple BL per declaration (BL # at item level)Declaration requirement for HBL / HAWB
Number of invoices per declarationDecimal places for numeric data
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Other Customs data requirement
Goods descriptionDetailed goods description (as per invoice)Summarized goods description
HS Tariff codeAHTN (ASEAN Harmonized Tariff Nomenclatures for ASEAN Countries – implemented 1st Jan 2004)HS Codes for Non-ASEAN countries
Customized codes / IDVessel IDExporter code / Agent code
Cont…
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Other Customs data requirement
Export Declaration vs Import DeclarationExport Declaration – Booking Reference numberImport Declaration – Bill of Lading # / Air Waybill #
Requirement for information parameters (mandatory / optional)
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Malaysia Singapore
The Malaysia-Singapore Example:Differences in Customs Data Requirements
MALAYSIAN CUSTOMS DECLARATIONMALAYSIAN CUSTOMS DECLARATION
SINGAPORE CUSTOMS DECLARATIONSINGAPORE CUSTOMS DECLARATION
New pneumatic tyres, of Rubber. Of a kind used on motor cars (including station wagons and racing cars)
Compressors other than those of subheadings Nos. 8414.30 and8414.40: compressors for automotive air-conditioners
Parts and accessories of vehicles of heading Nos. 87.11 to 87.13. - Other: - - Wheel rims and spokes: For subheading No. 8712.00 200: wheel rims
401110000
841480520
871492110
Parts and accessories of the motor vehicles of headings Nos. 87.01 to 87.05. for subheading, 8703.22 310, 8703.23 311, 8703.23 312, 8703.23 313, 8703.24 310, 8703.31 310, 8703.32 311,8703.32 312, 8703.33 311, 8703.33 312, 8703.90 321, 8703.90 322, 8703.90 323 and 8703.90 324
870899150
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Challenges Experienced
Differences in Customs ProceduresDifferences in Customs Data RequirementsDifferences in Business environment/practicesFindings
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Differences in Business environment / practices
Mutual recognition of usersCriteria for batching the Customs Declaration% of data reusabilityUser readiness (for those with back-end system)
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Differences in Industry / Customs Processes
ForwardingAgent
ForwardingAgentShipperShipper
CustomsBroker
CustomsBroker
ExportingCustomsExportingCustoms
ForwardingAgent
ForwardingAgent
Exporting Country Malaysia
Export Declaration
xConstraints• Forwarders do not submit export declaration• Exporting Customs Broker do not know the
Malaysian Forwarders
CustomsExportDeclaration
xDeclarationInformation
Shipment &DeclarationInformation
DeclarationInformation
MalaysianCustoms
MalaysianCustoms
CustomsDeclarations
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Example of data reusability (MY – SG)
Based on mandatory fields in a Customs declaration, required by Customs Malaysia For eDeclare application
Total mandatory fields = 44Total fields mapped by CBeX = 31Total default fields in eDeclare = 4Total field to be keyed in by FA = 9
Auto-population & default = 80 %Manual key-in by FA = 20 %
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Challenges Experienced
Differences in Customs ProceduresDifferences in Customs Data RequirementsDifferences in Business environment/practicesFindings
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Findings
All Customs Authority adopted UN/EDIFACT CUSDEC message specification
Implementation of CUSDEC varies
Adopted UN/CEFACT Trade Facilitation Recommendations such as LOCCODE, INCOTERMS and etc
Missing link – key field for matching of Export Declaration and Import Declaration
It takes 2 to “Tango”
Both Sender and Recipient must be willing to share the declaration information with their counterpart on the other side of the border
The Sender and Recipient on both sides of the border must have technical / system readiness in order to participate in electronic declarations
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Outline
Brief Definition of Electronic Cross-Border DeclarationsThe Two Aspects of Cross-Border DeclarationsChallenges ExperiencedThe way forward
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The way forward
BusinessTo provide more value-added services
Use of other data source for population of Customs Declaration e.g. Invoice, Packing List and etc.
Exchange of Customs Responses
To resolve the “last mile” issue
Develop solutions that enables the cross-border document exchange
Share experience in different national forums
Trade Facilitation Council
National Single Window Committees
Malaysia Standards Organization – Technical Committee for E-Commerce
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The way forward
Technical
Identify International formats for adoption:WCO Data ModelUNeDocs
Alignment of documents structure in the Customs Declarations on both sides
Harmonization of Information Parameters and Formats
Implementation of the Unique Consignment Reference (UCR) concept
Thank You
ECONOMIC COMMISSION FOR EUROPE (UNECE)
United Nations Centre for Trade Facilitationand Electronic Business (UN/CEFACT)
Eva C. P. [email protected]