cross-border declarations: experience and challenges 4 may 2006 eva c.p. chan dagang net group of...

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

Geneva, Switzerland3 - 5 May 2006

Outline

Brief Definition of Electronic Cross-Border DeclarationsThe Two Aspects of Cross-Border DeclarationsChallenges ExperiencedThe way forward


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


Outline



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


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.


Challenges Experienced

Differences in Customs ProceduresDifferences in Customs Data RequirementsDifferences in Business environment/practicesFindings


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


Proximity

Business practiceData availabilityTime factor

ExampleMalaysia / SingaporeHong Kong / Macau


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


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


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


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…


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)


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


Differences in Business environment / practices

Mutual recognition of usersCriteria for batching the Customs Declaration% of data reusabilityUser readiness (for those with back-end system)


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


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 %


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


Outline



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


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]

cross-border declarations: experience and challenges 4 may 2006 eva c.p. chan dagang net group of...

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