1. Cross-Border Declarations: Experience and Challenges
ECONOMIC COMMISSION FOR EUROPE (UNECE)
United Nations Centre for Trade Facilitation
and Electronic Business (UN/CEFACT)
Symposium on
Single Window Standards and Interoperability
Geneva, Switzerland, 3 – 5 May 2006
Cross-Border Declarations:
Experience and Challenges
4 May 2006
Eva C.P. Chan
Dagang Net Group of Companies
Malaysia
Dagang Net Technologies Sdn Bhd
Level 20, HP Towers
Jalan Gelenggang, Damansara Heights
50490 Kuala Lumpur, MALAYSIA

2. Outline
Brief Definition of Electronic Cross-Border Declarations
The Two Aspects of Cross-Border Declarations
Challenges Experienced
The way forward

3. 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

4. Outline
Brief Definition of Electronic Cross-Border Declarations
The Two Aspects of Cross-Border Declarations
Challenges Experienced
The way forward

5. The Two Aspects of Cross-Border Declarations and its Benefits
The Customs Perspective where two Customs Authorities exchange declaration information
Benefits
To maintain border integrity
Pre-emptive analysis / lead up to single co-operative inspection method
Speed up clearance process
Cross-Border Traceability
The User Perspective where Exporters and Importers, or their Agents exchange declaration information
Labour-saving
Accuracy / error reduction
Efficiency / speed

6. Scenario: Export Singapore – Import Malaysia
Exporter / FA
Malaysia
Importer
/ FA
Notification
4. Pre-
Declaration
Message
1. Export
Declaration
5. Declaration
Data
Trade Palette
eDeclare / Cargo Declare
TradeNet
Gateway
Dagang Net
Gateway
6. Import
Declaration
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.
2. Export
Declaration
3. Customs
Response
6. Import
Declaration
Customs
System
Customs Singapore
Customs
System
Customs Malaysia

7. Challenges Experienced
Differences in Customs Procedures
Differences in Customs Data Requirements
Differences in Business environment/practices
Findings

8. Free Trade Port (SG) Vs Conventional Customs port (MY)
Minimal duty and taxes
Minimal data requirement
Trading hub
Transshipment cargoes
Differences
Speedier clearance process at Customs regime with Free Trade Port environment
HK Export / Import
Customs Declaration to be submitted within 14 days after the goods released

9. Proximity Business practice Example Data availability Time factor
Malaysia / Singapore
Hong Kong / Macau

10. Exchange Of Import Declaration
Notification
Importing SP’s Gateway
Export SP’s
Gateway
4.Pre- Declaration Message
Declaration
System
Declaration
System
1.Import Declaration
5.Declaration Data
6.Export Declaration
Exporting FA
Importing FA
2.Import Declaration
6.Export Declaration
3.Customs Response
Customs System
Customs System
Notes:
Reverse flow of the previous scenario.
This Scenario is to cater for
neighboring countries such as HK-Macau, SG-MY& etc
Free Port that requires declarations to be submitted after cargo clearance such as HK
Customs of
Importing Country
Customs of
Exporting Country

11. Challenges Experienced
Differences in Customs Procedures
Differences in Customs Data Requirements
Differences in Business environment/practices
Findings

12. Differences in Customs data attribute
Data field length
Goods description e.g.
MY – 70
JP – 40
SG – 175
HK – 70 for English, 23 for Chinese
Number of line items
MY – 999
SG – 50
KR - 999
Decimal places

13. Differences in Customs data structure
number of BL per declaration
1 BL per declaration (BL # at header level)
Multiple BL per declaration (BL # at item level)
Declaration requirement for HBL / HAWB
Number of invoices per declaration
Decimal places for numeric data

14. Other Customs data requirement
Goods description
Detailed goods description (as per invoice)
Summarized goods description
HS Tariff code
AHTN (ASEAN Harmonized Tariff Nomenclatures for ASEAN Countries – implemented 1st Jan 2004)
HS Codes for Non-ASEAN countries
Customized codes / ID
Vessel ID
Exporter code / Agent code
Cont…

15. Other Customs data requirement
Export Declaration vs Import Declaration
Export Declaration – Booking Reference number
Import Declaration – Bill of Lading # / Air Waybill #
Requirement for information parameters (mandatory / optional)

16. The Malaysia-Singapore Example: Differences in Customs Data Requirements
MALAYSIAN CUSTOMS DECLARATION
SINGAPORE 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 and : compressors for automotive air-conditioners
Parts and accessories of vehicles of heading Nos to Other: - - Wheel rims and spokes:
For subheading No : wheel rims
Parts and accessories of the motor vehicles of headings Nos to for subheading, , , , , , , , , , , , , and

17. Challenges Experienced
Differences in Customs Procedures
Differences in Customs Data Requirements
Differences in Business environment/practices
Findings

18. Differences in Business environment / practices
Mutual recognition of users
Criteria for batching the Customs Declaration
% of data reusability
User readiness (for those with back-end system)

19. Differences in Industry / Customs Processes
Exporting Country
Malaysia x
Export Declaration
Shipper
Shipment &
Declaration
Information
Forwarding
Agent
Forwarding
Agent
Declaration
Information
Declaration
Information
Malaysian
Customs x
Customs
Declarations
Customs
Broker
Constraints
Forwarders do not submit export declaration
Exporting Customs Broker do not know the Malaysian Forwarders
Customs
Export
Declaration
Exporting
Customs

20. Example of data reusability (MY – SG)
Based on mandatory fields in a Customs declaration, required by Customs Malaysia
For eDeclare application
Total mandatory fields = 44
Total fields mapped by CBeX = 31
Total default fields in eDeclare = 4
Total field to be keyed in by FA = 9
Auto-population & default = 80 %
Manual key-in by FA = 20 %

21. Challenges Experienced
Differences in Customs Procedures
Differences in Customs Data Requirements
Differences in Business environment/practices
Findings

22. 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

23. Outline
Brief Definition of Electronic Cross-Border Declarations
The Two Aspects of Cross-Border Declarations
Challenges Experienced
The way forward

24. The way forward Business To 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

25. The way forward Technical Identify International formats for adoption:
WCO Data Model
UNeDocs
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

26. Thank You Eva C. P. Chan eva@dagangnet.com
ECONOMIC COMMISSION FOR EUROPE (UNECE)
United Nations Centre for Trade Facilitation
and Electronic Business (UN/CEFACT)
Eva C. P. Chan