1. UNECE CAPACITY BUILDING WORKSHOP ON TRADE FACILITATION IMPLEMENTATION: TOOLS, TECHNIQUES AND METHODOLOGIES 18 – 20 October 2004, Geneva Single Window Development and Implementation Experience of Singapore Wilfred Tan Country Director, NCS Singapore

2. UNECE UN/CEFACT Background Making Waves Since the 1980s ( Singapore Roadmap ) First Wave Infocomm21 Late 90s Second Wave National ITPlan Mid 80s National Computerisation Plan Early 80s Third Wave IT2000 Early 90s Fourth Wave Connected Singapore 2003 - Fifth Wave Conceptualized in 1986 as part of National IT Plan Implemented in 1st Jan 1989 by Singapore Customs

3. UNECE UN/CEFACT ® The Objectives of TradeNet ® Background

4. UNECE UN/CEFACT Traders Singapore Customs Checkpoints VAN - CrimsonLogic Controlling Agencies Goods imp/export by Air Goods imp/export by Sea Goods imp/export by Rail/Road Trade & manifest info Permit Applications Cargo Clearance Permits Cargo Clearance Goods imp/export by Air Goods imp/export by Sea Goods imp/export by Rail/Road Background

5. UNECE UN/CEFACT ® The Path of TradeNet ® Version 1.0 Version 1.8 Version 2.0 Version 3.1 Implemented Electronic Submission Declarations were batched up Turnaround time in few days Declarations were batched up Turnaround time in half-an-hours Interactive TradeNet Approval within 2 - 5 minutes Major business processing upgrade Background

6. UNECE UN/CEFACT Design and Development Process

7. UNECE UN/CEFACT  To evaluate Technology  Consolidate Data Element to form TradeNet specs  Contingency Plan ( e.g. DR Site ) and SOP  Benchmark performance of electronic declaration ( from days to minutes )  Payment of Duty and GST via Electronic means ( GIRO ) Design and Development Process

8. UNECE UN/CEFACT Front-end Traders VAN operator Controlling Agencies ® Current Structure of TradeNet ® Trade Community Singapore Customs Design and Development Process

9. UNECE UN/CEFACT Structure and Services Submission of TradeNet  applications Submission of TradeNet  applications # Import # Export # Transshipment # Removal # Container # Controlled/Non-controlled/Strategic goods # Payment/Non-payment # Cert of origin and other applications Amendment of TradeNet  applications Amendment of TradeNet  applications Cancellation of TradeNet  applications Cancellation of TradeNet  applications Auto Process of TradeNet  applications (more than 1000 Auto Process of TradeNet  applications (more than 1000 validation rules) validation rules) Enquiry on application status via 24-hours IVR ( Interactive Enquiry on application status via 24-hours IVR ( Interactive Voice Response System ) Voice Response System ) Auto deduction of duty/GST via GIRO Auto deduction of duty/GST via GIRO Paperless clearance for TradeNet  permits (CCS) Paperless clearance for TradeNet  permits (CCS)

10. UNECE UN/CEFACT Technology

11. UNECE UN/CEFACT Government Agencies Government Agencies  Singapore Customs ( System Owner )  Controlled Agencies ( e.g. AVA, A&E, etc )  IRAS ( Accounting of GST collection )  RCB ( Registration of Company and Business)  IE Singapore ( Statistics department )  Etc. Participants

12. UNECE UN/CEFACT Private Sectors Private Sectors  Importers  Exporters  Shipping Agents  Freight Forwarders  3rd or 4th Party Logistic Companies ( 3PL/4PL )  Other Trade communities Participants

13. UNECE UN/CEFACT Participants

14. UNECE UN/CEFACT  Total of 3,000+ declaring agents who are the key users in submitting electronic declarations.  Customs - 1,000+ staff strength on operations  The volume of TradeNet is around 30,000/day. On the average, declaration is being processed and approved within 5 minutes. Frequency of use for TradeNet  Statistics

15. UNECE UN/CEFACT  Front-end Software - VAN Funded  ASP model for front-end with transaction charges  Backend System is funded by Singapore Government ( MOF )  White paper was being prepared to justify the development and upgrade costs  Outsourcing to vendor(s) in development and maintenance Business Model

16. UNECE UN/CEFACT Results  Single Window border Automation System (APEC, 2003b)

17. UNECE UN/CEFACT Key Consideration

18. UNECE UN/CEFACT Future Plans  Liberalisation of VAN  More integration to trade industries, for example : Logistics, Shipping and freight forwarders.  Objective to reduce data entry, information sharing and further costs saving  Centralised platform to act as National Hub for all trade activities  To value add and serve the trade communities better

19. UNECE UN/CEFACT Future Plans

20. UNECE UN/CEFACT Introduce Integrated Single Window e-Logistics Introduce Integrated Single Window e-Logistics A Single Window System which applies IT in innovative and productive ways to maximize the business value of IT within cargo and logistics operations. It integrates the enterprise systems of the trade community and government agencies and supports the delivery of key strategic business objectives by increasing information velocity, visibility and accuracy. E-Heart & E-Soul of Trade, Logistics and Supply Chain Government Owned or Run and Owned by 4PL Provider. TradeNet  will be one of the Core Applications Future of TradeNet ®

21. UNECE UN/CEFACT Transportation Operator Operator 3PL/4PL Freight ForwardersFreight Forwarders Government Agencies CustomsCustoms Control AgenciesControl Agencies Chamber of CommerceChamber of Commerce Market Place ManufacturersManufacturers SuppliersSuppliers Workflow Event Messaging Business Rules Process Knowledge Integration of Application Visibility Freight Management System Transport Management System Payment Trade Documentation Customer Service Center Order Fulfillment ò Integration is the Key to Success for e-Commerce Financial Service Provider BankBank InsuranceInsurance Future of TradeNet ®

22. UNECE UN/CEFACT  Customers unwilling to pay for or trust such services/transactions.  Some doubts on the return on investment for integration technology (which can be expensive).  Policy issues – Data Protection, Pricing, Service Standards, enforcement, etc.  Getting the agreement of all stakeholders including Governments, Suppliers, Customers, 3PL Parties, Banks and Insurance Companies  Lack of a globally accepted suite of integration technologies and standards. Challenges of Integrated Single Window e-Logistics Hub Future of TradeNet ®

23. UNECE UN/CEFACT Key Benefits of Integrated Single Window e-Logistics  increased trade revenue  streamlined procedures  seamless experience for traders  reduced business cost  increased productivity  fast turnaround (cost and process)  empowered customers Example of Benefits  Realized Lower Freight Costs  Improved Order Cycle Times  Reduced Inventory  Enhanced Customer Service  Focus on Core Competencies Future of TradeNet ®

24. UNECE UN/CEFACT

25. King, J. and Konsynski, B. Singapore TradeNet (A): A Tale of One City. Harvard Business School, Case 9-191-009, Cambridge, MA, 1990.Harvard Business School Neo, B.S.; King, J. and Applegate, L. Singapore TradeNet (B): The Tale Continues. Harvard Business School, Case N9-193- 136, Cambridge, MA, 1993.Harvard Business School Teo, H.H.; Tan, C.Y. and Wei, K.K. Organizational Transformation Using Electronic Data Interchange: The Case of TradeNet in Singapore. Journal of Management Information Systems, Vol. 13, No. 4 (1997), pp.139-165. Reference