1. LI XiaoGang Chief Information Officer of General Administration of China Customs Promoting Security and Facilitation of International Trade through Applying IT & Fulfilling Customs Functions 2008 WCO IT Conference & Exhibition 23-25 April,2008

2. 2 China-EU Pilot Project 2 IT application in China Customs 31 Main Content 主要内容

3. 3 1998 1988 1978 1999 2001 Integration O.G.A. Integration Customs Regions Full Entry Process Automation Individual Application Decision Support Stages in Customs IT Development 发展阶段 Five Stages

4. 4 General Structure of IT system 总体应用架构 China Customs IT system E-Administrations E-Customs(H2000) Intranet NetworkExternal Network risk management 、 law enforcement evaluation 、 customs duty analysis… Manifest management 、 Enterprise management 、 certificate supervision and control 、 intellectual property 、 processing trade 、 control of origin …… Examination management 、 inspection management 、 customs duty collection 、 release management 、 trade statistics 、 logistics supervision and control…… Clearance Processing level Professional management level Collect dataIssue a command E-Port Clearance service E_admini- strative affairs Comprehe- nsive law enforcem- ent Declaration Online payment…… Online Approval Business Annual checking …… Export Drawback Origin …… Law enforcement data Declaration data External Data Source Importer, exporter and customs broker Freight transport agent Transport company …… State Administration of Taxation General Administration of Quality Supervision, Inspection and Quarantine Ministry of Commerce State Administration of Foreign Exchange

5. 5 Guangdong Center Information Center Guangdong Information Center Double-sided Reproduction Beijing Customs Tianjin Customs Shanghai Customs Shenzhen Customs Lhasa Customs Guangzhou Customs Active to Active System Backup Mechanism 容灾备份 Beijing Information Center 46 Customs Regions

6. 6 The Main Benefits through China Customs IT 应用效益 Provide strong guarantee for fulfilling the Customs functions Tighten supervision, control, and to suppress smuggling Improve clearance procedure efficiency and competitiveness of enterprises ◆ ◆ ◆ Promote co-operation with other government agencies and to strength comprehensive administration Provide reliable data for macroeconomic control Reduce integrity risks and to promote the building-up of a Customs workforce ◆ ◆ ◆

7. 7 China-EU Pilot Project 安智贸目标、背景 To establish a safe, facilitated and smart international trade supply chain to facilitate legitimate trade to the largest extent and to reduce the security risk of cargo flow To establish a safe, facilitated and smart international trade supply chain to facilitate legitimate trade to the largest extent and to reduce the security risk of cargo flow. ◆ In September 2006, the Joint statement on Strengthening Cooperation on Supply Chain Security was signed by the China Customs and Customs Authorities of the European Commission. ◆ In September 2006, the Joint understanding of launching the Pilot Project was signed by the Customs administrations of China, the Netherlands and the United Kingdom. ◆

8. 8 The main benefits through Pilot Project 安智贸主要成果 Successfully set up a system for customs data exchange and sharing between China and EU.◆ Established the AEO program with Chinese Characteristics. ◆ Agreed the minimum joint risk rules setting for advance risk analysis and minimum control standards for customs clearance purposes. ◆ Agreed requirements for the security devices and their use for pilot action and testing the e-seal and container security device. ◆ Launched the mutual attachment program. ◆

9. 9 Conclusion 总结 The in depth and extensive application of IT will help: Intensify customs-to-customs exchanges and cooperation in fulfilling their functions. ◆ Enhance customs-to-business partnership in collectively countering terrorism. ◆ Promoting global trade security and facilitation. ◆