1. Copyright 2008 – Singapore Customs 1 IT in Singapore Customs: Driving Innovation & Coping with Change 2008 WCO IT Conference & Exhibition 23 – 25 April 2008 LEE Tiow Yong, Assistant Director-General (Technical Cooperation) Singapore Customs

2. Copyright 2008 – Singapore Customs 2 2 Setting the Context The Singapore Customs IT Journey & Experience Beyond TradeNet ® : TradeXchange ® Presentation Outline

3. Copyright 2008 – Singapore Customs 3 Setting the Context 1 /1 /

4. Copyright 2008 – Singapore Customs 4 4 Ranked 1 st World Easiest Place to do Business by World Bank Report “Doing Business 2008” Land Area : 704 sq km (2006) Population : 4.59 million (2007) Per Capita GDP : S$52,994 (2007) Sea Cargo Handled : 483.6 million freight tonnes (2007) Air Cargo Handled : 1,899,500 tonnes (2007) Ranked 2 nd in IMD World Competitiveness Yearbook 2007 Total Trade : S$ 847 billion (2007) Singapore : An Intelligent Nation, A Global City, Powered by Infocomm

5. Copyright 2008 – Singapore Customs 5 5 Total Staff Strength : 588 In FY 2006/2007, Collected over S$5.7 billion against an operating expenditure of S$57.3 million, spending just 1 cent for every dollar collected; Processed 9.6 million customs & trade declarations, with 90% approved within 10 min; ICT operations constituted 23.3% of total operating expenses Invested S$34.2 million from 2004 to 2007 in ICT development Singapore Customs: Facts & Figures

6. Copyright 2008 – Singapore Customs 6 6 The Singapore Customs IT Journey & Experience 2 /2 /

7. Copyright 2008 – Singapore Customs 7 7 National IT Plans E-Government Singapore Customs e-Journey Civil Service Computerisation Programme (1980 - 1999) E-Government Action Plan (2000 – 2003) E-Government Action Plan II (2003 – 2006) 1980 1986 1992 2000 2003 2007 The National Computerisation Plan (1980 – 1985) The National IT Plan (1986 – 1991) IT2000 (1992 – 1999) InfoComm 21 (2000 – 2003) Connected Singapore (2003 -) iGov 2010 (2007 – 2010) Phase 4 : TradeXchange ®, new TradeNet ® & eCustoms (2003 - 2007) Phase 3 : Business Intelligence (2000 - 2002) Phase 2 : Integration (1988 - 1996) TradeNet ® (1986 – 1989) Phase 1 : Automation (1981 - 1990) IT Roadmaps

8. Copyright 2008 – Singapore Customs 8 8 Our People Tripartite Partnership for IT Management We take overall responsibility to make IT a strategic enabler of our operations: Set out vision and goals Review and streamline business processes Determine detailed business requirements Accept and manage business risks Engage business community and partners

9. Copyright 2008 – Singapore Customs 9 9 Our People Tripartite Partnership for IT Management GCIO The Government Chief Information Office (GCIO) under the Infocomm Development Authority of Singapore (IDA) support us through: IT master planning IT policy development and governance IT project & contract management Implement and manage Government-wide IT infrastructure and application systems Planning, procurement and management of IT assets and services IT security administration and monitoring

10. Copyright 2008 – Singapore Customs 10 Our People Tripartite Partnership for IT Management GCIO IT Service Providers Select the IT solution and service providers through Best Sourcing Transparent procurement process

11. Copyright 2008 – Singapore Customs 11 Singapore Immigration and Registration (MHA) Immigration & Checkpoints Authority (MHA)  Immigration  Registration Checkpoint clearance -  Travellers, baggage  Cargo, vehicles Singapore Customs (MOF)  Trade facilitation  Trade documentation  Rules of origin  Revenue collection  Customs documentation  Customs enforcement  Tax suspension schemes Trade Facilitation Div & Statistics Audit Unit of IE Singapore (MTI) Customs & Excise Department (MOF) Reconstitution in 2003

12. Copyright 2008 – Singapore Customs 12 IT Challenges of the Reconstitution ChallengesStrategies Short implementation timeframe High costs and efforts needed to untwine and rebuild legacy systems Immediate Focus on essential changes first, e.g. new corporate identity Extend system access to users in other agencies without migrating the systems Medium term Business process re-engineering before re-building the systems Designed new IT architecture for Singapore Customs System development of eCustoms, TradeNet version 4.0 & CASS

13. Copyright 2008 – Singapore Customs 13 Implemented in Oct 07, TradeNet ® version 4.0, eCustoms and CASS form a critical backbone to support Singapore trade infrastructure and cargo clearance for air, sea and land. Integration of IT Systems for Border Management

14. Copyright 2008 – Singapore Customs 14 “Big Bang” Implementation of Multiple Border Management IT Systems ChallengesStrategies Complex business processes across agencies Business rules review TradeNet ® e-Learning to educate traders of the changes Harmonisation of business processes across agencies Different project schedules and vendors for CASS, TradeNet and eCustoms Alignment of project schedules and stringent project management Use of ‘mock-up’ data to facilitate testing of individual systems Robust integrated testing by agencies

15. Copyright 2008 – Singapore Customs 15 “Big Bang” Implementation of Multiple Border Management IT Systems ChallengesStrategies Long blackout periods for system migration Informing traders to submit declarations prior to blackout periods Use of manual processes during blackout periods Preparation of sudden load surge after blackout periods Staggering migration of system components and data to reduce length of individual blackout periods High implementation risks Parallel-run for TradeNet ® Early engagement with the trading community and extensive public communications Strong commitment from all levels and across agencies Contingency plans for various worst case scenarios

16. Copyright 2008 – Singapore Customs 16 Beyond TradeNet ® : TradeXchange ® Journey 3 /3 /

17. Copyright 2008 – Singapore Customs 17 A Secure and Neutral IT Platform that Facilitates the Exchange of Commercial and Regulatory Information for Trade and Logistics Community What is TradeXchange ® ?

18. Copyright 2008 – Singapore Customs 18 Ports Freight Forwarders electronic Shipper/Seller Port booking, Track & Trace Permit Application Carriers Trade Documents Preparations e.g. Shipping Instructions Bill of Lading Airway Bill etc Banks/ Insurance Trade Finance Processing Singapore Government Value-Added Services Core Services Desired outcomes: Reuse data in supply chain and streamline documentation Reduce documentation costs and data discrepancies Improve strategic competitiveness with supply chain efficiencies & visibility Develop the IT industry (value-added- services providers) TradeXchange ® : Facilitating Information Flow

19. Copyright 2008 – Singapore Customs 19 Messaging and Translation Services - B2B service Title Registry - B2B service RosettaNet Automated Enablement (RAE) - B2B service Overseas Highway Customs - B2B service Overseas Highway Manifest - B2B service Shipping Line Linkages - B2B service Integrated Multimodal Solution - B2B service TradeNet ® Version 4 - B2G service TradeXchange ® Services

20. Copyright 2008 – Singapore Customs 20 A truly electronic bill of lading Enable secure creation and transfer of the title of the goods electronically as part of the import/export trade process Capable of supporting end-to-end electronic title flow or hybrid (electronic-to-paper) title flow TradeXchange ® Services : Title Registry

21. Copyright 2008 – Singapore Customs 21 Single electronic window to the trading community (for new permit applications, amendments, cancellations and refund) Single clearing house for customs / trade declaration processing New services offered: Government front-end service, cc copies and printing of permits, permit listings, etc Reduction in transaction cost (savings of S$0.42 per declaration) TradeXchange ® Services : TradeNet ® V4.0

22. Copyright 2008 – Singapore Customs 22 Innovation in role of Customs: from purely regulatory function (B2G) to facilitating business operations (B2B) Innovation in business model: 1 st Public Private Partnership IT project in Singapore Innovation in business processes: Integration of TradeNet with B2B services Innovation in service offerings, e.g. Title Registry Innovation in TradeXchange ®

23. Copyright 2008 – Singapore Customs 23 Thank You www.customs.gov.sg