 Goals & Challenges  Problems & Solutions  Key Decisions  Development Strategies  Development Administration  Achievements of Informatization  Effects of Informatization  Future Direction Contents

1. Goals & Challenges Volume and Complexity of Trade & Travel Resource The Customs GAP Challenges l Increase Revenue l Improve Compliance and Enforcement l Enhanced Transparency l Reduce Cost & Time of Cargo Release l Facilitate Legitimate Trade l Improve Customer Service l Prevent the Smuggling of Contraband l Focus Resources on High Risk Areas Goals

Slow clearance Low compliance Corruption Fast clearance High compliance High compliance Transparency Informatization IT was and is the greatest enabler for reinvention Simultaneous accomplishment 2. Problems & Solutions

Note) ISP : Information Strategy Plan, BPR : Business Process Re-engineering Administration Strategy ? BPR ? - Simplification of Ex/Import process ISP ? Benchmarking of Other Countries’ Law/Regulation MASTER PLAN ISP BPR Major Priorities Administration Strategy Present processes - going on ? - Re-engineering ? 3. Key Decisions

4. Development Strategies (1) 3 Targets (2) Stage by Stage Development (3) Architecture Sub-Contents

Process  Export Clearance  Import Clearance  Cargo Management  Drawback Service enhancing  Web site  e-Approval  Cyber-Education  e-Civil Appeal Compliance Efficiency  Surveillance(cargo/passenger)  Selectivity & Post-Audit  Investigation  DW, KMS IT Employment 3 Targets : Facilitation, Control, Client-Satisfaction 4. Development Strategies (1)

Stage-by-Stage Development : Feasibility, Influence, Urgency Investigation& Surveillance Cargo & Drawback Import Clearance Export Clearance ISP MASTER PLAN 1998 Group Ware 1997 Web Site CDW KMS 4. Development Strategies (2)

Architecture : Stability, Expansion, Future-oriented  H/W Employment, Operation, Maintenance S/W Development, Operation, Maintenance Data Management Ex/Import Clearance Cargo Management Drawback Surveillance/Post-Audit/investigation Traders, Customs Brokers, Shippers, Airliners, Forwarders, Transport Firms, Unloading Businesses, Bonded Areas, Banks, Approval Agencies VAN  Structuring and Managing Network  Support for Linkage with External Network  User Management (Education, Counseling & Guidance ) IT center(HQ) End-user Customs(BO) Pre- Computerization 4. Development Strategies (3)

5. Development Administration (1) Roles of Parties concerned with system Development (2) Decision Factors in Organizational Aspect (3) Condition & Role of System Developer

UserUser  Education & Training  Faithful Declaration & Compliance VANVAN  Stabilized Management of Network  Support Users  Setting Up Plans  Securing Budget  Collaborate with Other Agencies  Stabilization  Technology  Trust System Developer Roles of parties associated with in System Development Customs(BO)Customs(BO) CUSTOMS(HQ)CUSTOMS(HQ) UserUser Educatio n Technology support Trust Institutional Improvement  Field Operation of Customs Systems  Fair Execution & Favorable Service 5. Development Administration (2)  Education & Training  Faithful Declaration & Compliance

Leader with Strong will Specialists in IT Experts in Business Decision Factors in Organizational Aspect - Attention & Cooperation : Comprehensive & Practical - Implementation group : Powerful, Swift, Smart Task Force 5. Development Administration (3)

Condition & Role of System Developer 5. Development Administration (4) Condition Stable Financial Situations for a Long-Term : Stabilization Development Abundant Development Manpower & Experiences : Technology Businesses with further Understanding on Customs : Trust Organization/Culture Role Support for Customs’ Internal informatization Planning Provision of Technical and Comprehensive Solution necessary for System Development Development of Computerized System Operation Support after Development Completion

6. Achievements of Informatization (1) EDI Clearance Automation System (2) Customs Control System based on Risk Management (3) Customs DataWarehouse (4) Paperless Office (5) e-customs window

EDI Clearance Automation System Surveillance Drawback Investigation & Intelligence Investigation & Intelligence Post- Audit Export Clearance Export Clearance Export Cargo Import Clearance Selectivity Import Clearance Selectivity Import Cargo 6. Achievements of Informatization (1)

Risk Management Movement Control  Passenger Inspection - API (Advance Passenger Information) System  Cargo Inspection -Cargo Selectivity -Clearance Selectivity Customs Control System based on Risk Management 6. Achievements of informatization (2) Post-Audit Control  Account Audit - Comprehensive Audit - Specific Audit  Transaction Audit - Automatic/Manual Selectivity - Review/Drawback Selectivity Investigation  Intelligence DB - Records Management - Intelligence Analysis  Investigation Process - Report - Approval

Operational data Integrated data Data mart Query/report External data DW  National Tax Service  Bank of Korea  Ministry of Justice  Import clearance  Export clearance  Surveillance  Trade statistic  Post audit Dispersed operational data Integrated information data Easy to use Internal data ECTL OLAP period region country product performance (rate/money ) year half quat Month week day time Report Mining OLAP Surveillance Investigation Clearance Audit Admin Trade statistic admin analyst user  Customs DataWarehouse : Information Infra System  Enhancing Decision Making Processes 6. Achievements of Informatization (3)

Paperless Office : Building e-Approval & EDMS Implementing e-Approval / EDMS Groupware EDMS Communication Paperless office e- Storage e- document 6. Achievements of Informatization (4) information Portal e-bulletin Board e-approval Schedule Manager

e-customs window : Service enhancing e- Customs window Customs Information DB Clearance Automation System Call Center e-Civil Appeal System Bonded Warehouses Bonded Transporters Airliners Shippers Forwarders Agencies Traders Customs Brokers Individua l communication 6. Achievements of Informatization (5) Customs Information Cargo Tracking One Call Total Service e-Civil Appeal

Reduction in Clearance Time - Export Clearance : 1day →2 Min - Import Clearance : 2 days→2.5 hours - Tax Payment : 4 hours →10 Min Increase in Im/Export Clearance % Increase in the number of cases (Increase in 1.76 million cases) % Increase in value (Increase in US$ billion) Reduction in Customs Manpower 4,300 -> 4,100 Reduction in Logistics Cost Annual Savings : US$ 2.8 billion (1993~2002) Guarantee Transparency Real time Cargo tracking 7. Effects of Informatization

e - Trade Portal / Single Window Service Knowledge-based e-Customs e-Processing of Public Inquiries Web-based Import/Export Declaration System International exchange of electronic clearance information EIS(Executive Information System) CRM(Customer Relation Management) Toward the World Best e-Customs Mobile -service / CRM System (Customer Relation Management) Extension of Customs systems to the whole trade process 8. Future Direction

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