SWTCAR5 Module 3 by Ceddet

Single Window for Foreign Trade, 5th Edition Module 3: Review and reconciliation of processes

Single Window for Foreign Trade, 5th Edition

Module 3

Interamerican Development Bank (IDB) (www.iadb.org), through his Integration and Trade Sector (INT). Course coordinator: Interamerican Development Bank (IDB) (www.iadb.org), through his Integration and Trade Sector (INT), the Institute for the Integration of Latin America and the Caribbean (INTAL), the Inter-American Institute for Economic and Social Development (INDES) (www.indes.org), the World Customs Organization (WCO) (www.wcoomd.org) and the General Secretariat of Central American Integration (SG-SICA) (http://www.sica.int/) Module author: Miguel LLop Chabrera, Information and Communications Tecnologies Director. Salvador Furió Pruñonosa, Logistics and Intermodality Director. Valenciaport Foundation. Pedagogical and edition coordination The Inter-American Institute for Economic and Social Development (INDES) (www.indes.org) in collaboration with Fundación Centro de Educación a Distancia para el Desarrollo Económico y Tecnológico (CEDDET) (www.ceddet.org) and Caribbean Customs Law Enforcement Council (CCLEC) (www.cclec.net)

5th Edition 2016

This document cannot be reproduced, in whole or in part, by any electronic or mechanical means, including photocopy or any recording process. Its information cannot be stored or recovered by any systems whatsoever without the due written authorization from the IDB. Any request for partial or total reproduction must be informed to: BIDINDES@iadb.org These materials have been revised in light of the ministerial decisions taken in the framework of the 9th World Trade Organization Ministerial Conference held in Bali, Indonesia, in December 2013. The adjustments were made in order to reflect a higher alignment between the course topics and the priorities identified in Bali’s Ministerial Declaration and decisions, where all IDB members participated. Bali Ministerial Declaration and decisions 2

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Table of Contents Table of Contents ....................................................................... 2 Index of Figures ......................................................................... 6 Index of Tables .......................................................................... 7 Glossary .................................................................................... 8 Introduction ............................................................................... 9 Aim of the module .................................................................... 10 Learning-oriented questions ....................................................... 10 Unit I. Single Window Environment and Foreign Trade Operations .. 12 Learning objectives ................................................................ 12 I.1. Initiatives and objectives of the Single Window environment . 12 Unit II. What regulatory agency functions can benefit from the services of a single window environment? .................................... 26 Learning objectives ................................................................ 26 II.1. Border Management Functions (Foreign Trade Single Window) ............................................................................................ 26 II.1.1. Collections Management ............................................. 28 II.1.2. Facilitation of Transportation and Logistics .................... 30 II.1.3. Implementation of Trade Policies ................................. 32 II.1.4. Public Health and Safety ............................................. 33 II.1.5. Economic Protection ................................................... 34 II.1.6. Canada: ACROSS ....................................................... 35 II.1.7. Chile: SICEX.............................................................. 35 II.1.8. Colombia: FOREIGN TRADE SINGLE WINDOW ............... 36 3

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II.1.9. Spain: Single Window Environment .............................. 37 II.1.10. Jamaica: Trade Point ................................................ 38 II.1.11. Mexico: FOREIGN TRADE SINGLE WINDOW ................. 40 II.1.12. Peru: FOREIGN TRADE SINGLE WINDOW .................... 42 II.1.13. Trinidad and Tobago: Single Electronic Window ............ 42 II.2. Vessel Port Call Functions (Port Single Window) .................. 43 II.2.1 Formalities derived from the European standards: .......... 44 II.2.2. FAL Forms and formalities derived from legal international instruments: ....................................................................... 45 Unit summary...................................................................... 53 Unit III. Processes of business for the design of single window ....... 54 Learning objectives ................................................................ 54 III.1. Introduction to Reengineering and Continually Improving Services ................................................................................ 55 III.2. Introduction to Process Modeling ..................................... 59 III.2.1. Different focuses for the analysis of business processes in international supply chains .................................................... 65 III.3. Sources of relevant information for Single Window process modelling and analysis ............................................................ 69 III.4.

The

Principal

Business

Processes

Single

Window

Environment .......................................................................... 76 Unit summary...................................................................... 78 Unit IV. Design of single window services .................................... 79 Learning objectives ................................................................ 79 IV.1. Scope of the Single Window ............................................. 79 4

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IV.2. Classification of the Services offered by Single Window ....... 80 IV.3. The scope of Single Window Services ................................ 81 IV.4. Aspects to keep in mind in designing Single Window Services ............................................................................................ 83 IV.4.1

Design

Interactions

between

Operators

and

the

Regulatory Agencies ............................................................. 84 IV.4.2. Importance of Visibility and Transparency in the Design of Single Window Services ........................................................ 88 IV.4.3

Auditing

and

Analysis

Capacity

Various

Service

Interactions and Events ........................................................ 89 IV.4.4 Interoperability in the Design of Single Window Services . 90 IV.4.5 Being Sure to Meet User Expectations ........................... 93 Bibliography ............................................................................ 95

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Index of Figures

Figure 1.1. Goods and cargo declarations during the trade flow. Figure 1.2. Customs aspects to operate in international settings. Figure 1.3. Pyramid of systems for a secure transportation chain. Figure 2.1. List of customs functions. Figure 2.2. Classification of customs functions. Figure 2.3. Foreign Trade Single Windows connectivity with Single Window. Figure 2.4. Standards for procedures or operations. Figure 3.1. Example of Diagram of Case of Use for the Declaration of Merchandise Arrival process. Figure 3.2. Categories of actors Figure 3.3. Presentation of different focuses for analysis of business processes in the international logistic chain. Figure 3.4. Simplified Diagram of Business Processes. Figure 3.5. Components of the WCO Data Model. Figure 4.1. Taxonomy of services in foreign trade and international transport. Figure 4.2. Logical order of information generation in the supply chain. Figure 4.3. Design of Single Window services. Figure 4.4. Example of services proposal.

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Index of Tables

Table 1.1. Example of description of a Case of Use within of the Arrival of Merchandise to Customs Territory Declaration process. Table 2.1. Processes included in the WCO Data Model. Table 3.1. Processes and Factors to consider in a Single Window.

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Glossary

•

AEO: Authorized Economic Operator

•

APEC: Asia-Pacific Economic Cooperation

•

B2B: Business-to-Business

•

BPM: Business Process Modeling

•

CCS: Community Cargo System

•

ECS: the Export Control System

•

EMSA: European Maritime Safety Agency

•

FAL Convention: International Maritime Organization IMO:, the Convention on Facilitation of International Maritime Traffic

•

G2B: Government -to- Business

•

G2G: Government-to-Government

•

ICS: Import Control System

•

ICT: Information and Communications Technologies

•

IMDG: the International Maritime Dangerous Goods

•

ISPS: the International Ship and Port Security

•

LCS: Logistics collaboration systems

•

NCTS: the New Computerized Transit System

•

PCS: Port Community Systems

•

PSC: Port State Control

•

SEP: Secretariat of Ports of Brazil

•

SOA: Service Oriented Architecture

•

TRACES: TRAde Control and Expert System

•

UML: Unified Modeling Language

•

VAT: Value Added Tax

•

VTMS: Vessel Traffic Management System

•

WCO: World Customs Organization

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Introduction

Once the principal Single Window environment concepts and models, and the set of institutions and agents involved in their construction processes have been reviewed, the course's third module will enable the participant to discover the business processes that may be linked to the development of Foreign Trade and Port Single Windows and to understand the need for their harmonisation and standardisation. Likewise, the module will introduce the student to process modelling as a tool that is required to review and adapt processes to the new Single Window plans. Following a review of foreign trade operations and Single Window environments, the main regulatory agency functions that can benefit from the services of a Single Window environment will be reviewed. Moreover, an introduction to business process modelling and analysis will be made, as it is a key aspect to the proper design of Single Window solutions. Finally, we present the different types of service concerning Single Window environments and basic aspects to consider in their design.

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Aim of the module

To discover and reflect on the set of functions and business processes that can be improved by incorporating Foreign Trade and Port Single Window services, and enter the world of process modelling and service design regarding Single Windows.

Learning-oriented questions

â&#x20AC;˘

Which regulatory agency functions can benefit from the services of a Single Window environment?

â&#x20AC;˘

What are Business Processes for the Design of Single Windows and why should they be harmonised and standardised?

â&#x20AC;˘

How to move forward in the design of Single Window services?

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Module 3. Review and reconciliation of processes  Unit 1. Single Window Environment and Foreign Trade Operations  Unit 2. What regulatory agency functions can benefit from the services of a single window environment?  Unit 3. Processes of business for the design of single window

 Unit 4. Design of single window services.

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Unit I. Single Window Environment and Foreign Trade Operations

Learning objectives •

To understand the need for harmonisation and standardisation of business processes through the use of Single Windows.

•

To discover the initiatives relating to Foreign Trade Single Windows and Port Single Windows.

•

To discover the different systems involved in an international trade operation aimed at achieving more secure and efficient supply chains.

I.1. Initiatives and objectives of the Single Window environment

It is usual, in foreign trade operations, to find two Single Window initiatives complementing each other; •

Foreign Trade Single Window (FOREIGN TRADE SINGLE WINDOW): In many countries of Latin America, FOREIGN TRADE SINGLE WINDOW is the name given to Single Window sponsored by and serving institutions connected to international trade and customs. In the Caribbean (i.e. Trinidad and Tobago) it is sponsored by the Ministry of Trade and Industry and the name given is Single Electronic Window or SEW. In the UK it is known as the ITSW (International Trade Single Window).

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FOREIGN TRADE SINGLE Window principally function to admit, control, dispatch and release goods arriving from outside the country or being sent abroad. The object of Foreign Trade Single Window is to have standardized information and documents submitted

electronic

form

satisfy

all

information

requirements related to merchandise importing, exporting and transit operations, utilizing a single entry point to which the information must be submitted only one time and it is accepted by

all

the

public

agencies

concerned

with

foreign

trade

operations. â&#x20AC;˘

Port Single Window (VUP): This is the name usually found to identify those single Windows in which the port and maritime authorities are the principal actors. The object of VUP is to have standardized information and documents presented in electronic form through of a single entry channel with the objective of complying with all the procedures and formalities related to the vesselâ&#x20AC;&#x2122;s stay in port and, as with Foreign Trade Single Window, the information need be presented only one time and it is accepted by all the public agencies with jurisdiction in foreign trade operations.

In both cases, the introduction of more efficient administrative procedures will significantly reduce the cost and time required for the transactions necessary to compliance with administrative formalities, customs as well as those of each of the regulatory organs and inspection

agencies

concerned

with

merchandise,

modes

transportation and persons crossing the border. At the same time, Single Window will simplify, standardize and harmonize

trade

procedures,

favour

the

free

movement

merchandise, improve transparency and traceability in compliance 13

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with and in application of laws, regulations and procedures, while strengthening the communication of information between businesses and government (B2G), between the different government agencies (G2G) and between the government and businesses (G2B). The application of international standards to this process is recommended to rationalize the processes, harmonize and standardize the data and obtain greater interoperability, as detailed in the following module. The objective is to create a Single Window environment that deals with all foreign trade operations in an integrated manner, oriented to services perfectly orchestrated among existing systems within a framework of modernization in customs and in the rest of the public institutions, as described in the first module on the Single Window concept. Special importance 1 is given to two types of declarations in this treatment: the goods declaration, by means of which a declarant presents all the necessary details to satisfy customs requirements in reference to the merchandise involved in a foreign trade operation, indicating the customs procedure that should be applied to the goods; and the cargo declaration (also known as the goods entry, temporary declaraciones

deposit

and

sumarias

exit la

declaration carga),

or, which

Spanish,

means

the

transportation operator provides the details required by customs when such goods go through the customs area. This case is shown in the following figure, which demonstrates the various declarations the trade flow requires in its transit through different countries. 1

Review and Reconciliation of Processes. Port Authority of Valencia. Seminar and Electronic

Single Window Experiences. Antigua, Guatemala. CAPTAC-DR. 2011.

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Figure 1.1. Goods and cargo declarations during the trade flow

Source: Trade Facilitation Study in the Pacific Corridor and Mesoamerican Countries Project. IDB

With respect to the process review and reconciliation environment, the World Customs Organization SAFE Framework of Standards described in the preceding module is especially significant to customs administrations. These international standards provide guidelines for integrated supply chain management. The object is to establish a more secure trade regime and a framework of collaboration among the various customs authorities and between customs authorities and economic operators. They introduce the concept of the Authorized Economic Operator. The guidelines provide a very useful set of criteria and implementation options to customs authorities while at the same time reviewing and harmonizing the processes to be considered in establishing foreign trade Single Window.

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Making quality information available at the right time to apply correct intelligence

utilizing

customs

controls

and

activating

risk

management mechanisms is more critical in these processes than having a large quantity of information available that may be unnecessary to complete the processes associated with the functions actually required. With that in mind, the primary concern in Single Window processes should be the availability of the minimum, strictly necessary information at the precise moment it is needed, to enable a correct risk analysis, allowing public agencies to carry out their proper functions when the information is required. Another very important action is being alert as to whether the information is reliable, coherent and useful in subsequent processes without the necessity to ask for it again. The best solution for supplying data to the control and oversight processes associated with a Single Window environment is not to request all the information at a specific time. That can delay execution of the associated logistics operations or make them more difficult because it may be impossible to know or have all the information available beforehand. On the contrary, the best solution for supplying oversight and control data on transborder goods movements through a Single Window is to supply the information when dealing with the processes. Existing information flows and trade processes can and must be utilized, taking advantage of acquiring the data required at the precise time it is needed, using information from such commercial sources as invoices, buy-sell orders, etc., for example.

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That data must then be compared with other available sources to increase its reliability and coherence and detect additional risks that may arise from discrepancies due to errors or possible fraud. Finally, quality information from the supply chain must be shared, not merely with other public agencies, but with other operators in the supply chain as well. Of course, applicable rules in regard to privacy and the protection of sensitive data must be given due consideration. The objective is to move goods effectively through the entire logistics chain in the most reliable and secure manner possible, but also in the simplest, easiest way, making all the operations connected to international transportation more efficient. Recalling the World Customs Organization SAFE Framework of Standards described in module 2, this framework is based on four elements: •

Harmonization of the requirements related to early electronic information on the entry, exit and transit of goods.

•

Utilization of consistent risk management to: o deal with security threats, and o inspect containers or high risk merchandise at its origin, not at its destination.

•

Use, when feasible, of non-intrusive means of detection, and

•

Definition of benefits to operators who meet certain standards and utilize better practices to guarantee the supply chain.

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The SAFE Framework of Standards is based on two pillars, Customsto-Customs

relationships,

which

strengthen

the

necessary

and

immediate interchange of information between different Customs Administrations for the purpose of managing risk more effectively, and Customs-to-Business relationships, the object of which is to create international trade conditions that not only make commerce more secure but simpler as well. Recognition of the Authorized Economic Operator (AEO) offers important benefits that derive from more

rapid

dispatch

goods

and

less

frequent

inspections.

Important savings in costs and time motivate safe operators (AEOs) to improve security processes and systems in the global supply chain. The role of Information and Communications Technologies (ICT) is especially significant to attaining effective, efficient customs controls. Customs have to operate in international environments through open networks, which makes the following aspects particularly important:

Figure 1.2. Customs aspects to operate in international settings

Source: Compiled by author. Adaptation of INDES design - 2013

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The data model also defines the formats of goods and cargo declaration messages, where, in accordance with the ICT guidelines of the Kyoto Convention, it recommends that customs authorities offer more than one solution for the electronic interchange of data, indicating such standards and technologies as UN/EDIFACT and XML. It should kept in mind that a foreign trade Single Window will not be isolated but can interact with other Single Window and share common processes and information that should be treated in an integrated, adequate manner to obtain maximum benefits, not only at the national level for each country but at the integrated level in the region. The strategic alignment of regulatory needs with trade objectives may also mean a single window that allows economic operators much better control of their logistics and easier compliance with regulatory processes by means of interoperability between the businessesâ&#x20AC;&#x2122; own internal control processes and the administrationâ&#x20AC;&#x2122;s customs control processes. The following figure shows how the combination of all the systems that participate in an international commercial operation can be harnessed to attain a more secure and efficient supply chain:

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Figure 1.3. Pyramid of systems for a secure transportation chain

Source: Valenciaport Foundation

The logistics collaboration systems (LCS), community cargo systems (CCS) and port community systems (PCS) are tools oriented to the interchange of logistics, transportation, cargo centers and portsâ&#x20AC;&#x2122; information. The principal objective of these tools is to serve the interests of the various companies and entities involved in such operations. The WCO customs guidelines specifically recommend the participation of customs authorities in these platforms for integrated supply chain management. The appearance of greater security and protection requirements at the international level translates into a necessity for greater control on the part of public agencies (customs, regulatory and border inspection organs and agencies, port and maritime authorities, etc.). 20

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Along those lines, the interest of public agencies and entities and of economic operators in Single Window has caused a significant growth in the new security context promised by prior analysis of information and early risk management. The following qualifying factors must be considered in creating an interoperable Single Window environment: 1.

All the government administrations affected along the corridor must be strongly committed to the process of creating an interoperable Single Window environment. The creation of this type of mechanism as an instrument to simplify procedures requires the establishment of adequate channels of collaboration between the entities and agencies involved. Documentation received through the mechanisms established

Single

Window

must

take

effect

and

recognized by each and every one of the entities and agencies. This collaboration must also remain in effect to coordinate changes that may become necessary as a result of modifications of the legislation and standards or the evolution of technology. Commitment to the creation of an interoperable Single Window environment should be motivated by a shared interest in attaining this type of simplification or it must be determined by legislation that establishes the requirement. Commitment often materializes on the basis of legislation that formalizes

the

framework

institutional

relationships

the

creation of a Single Window environment requires.

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In cases in which the creation of this type of service is not imposed by legislation it is highly advisable to develop a pilot to demonstrate the feasibility and convenience of an interoperable Single Window environment. In the greater part of these cases, operational procedures should be identified during this experience. Agreements between the administrations involved could even include changes in existing standards. In any case, electronic data interchange procedures can continue during these periods of experimentation and offer advantages in the application of interoperable Single Window environments.

Modification of existing legislation and standards is often required

give

legal

coverage

the

electronic

transactions involved in the Single Window. Once the advantages of processing transactions applying an interoperable Single

Window

environment

has

been

demonstrated,

modification of existing legislation may be required in order to obtain a legal base that supports such electronic interchanges. However, it is more and more common for the applicable legislation and standards to already be completely adapted to this type of solution (laws on electronic signatures, for example, or on electronic procedures, etc.). In that case, the process does not involve delaying the effective application of the interoperable Single Window environment. In case some legislative adaptation is necessary, such a change could involve considerable delays in the effective adoption of an interoperable Single

Window

environment.

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Interoperability, the appearance of an integrating or orchestrating

system

for

different

Single

Window

operations becomes a critical aspect that must be kept in mind in the interchange of information between different Single Windows. Organizations that have a high daily volume of

transactions

and

need

automatic

electronic

data

interchange solution, while small organizations that have much smaller volumes of transactions but, taken in conjunction, they represent a high percentage of the declarations submitted to the customs administrations. Moreover, the possibility of submitting the declarations not only in electronic form but on paper as well must be considered in order to confront temporary situations in which

declarations

cannot

processed

electronically

for

technical reasons. Harmonization of the different interfaces utilized in Single Window must consider all the international level recommendations and standards prepared by such organizations as the UN, WCO, WTO, UN/CEFACT, etc. 5.

Adoption of the system on the part of the users, public and private, is a critical aspect of the consolidation of telematics

procedures.

The

electronic

transmission

documents offers significant advantages for the Administration and for the declarant agents. However, its use implies at least a change in the internal processes of the organizations, as well as investments in technology that can delay the adoption of these systems. Management of the change and defining an adequate model adapted to the situation existing in each country will fundamentally

result

the

effective

implementing

interoperable Single Window environment.

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This environment should always be implemented within a process of continual improvement, with the support of the various public agencies, private actors, participating multilateral institutions and key international agencies.

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Unit summary

Throughout this unit, we have delved into the concept of the Single Window environment, how it contributes to the simplification of the B2B, B2G, G2G and G2B processes and relationships, and how foreign trade single windows and port single windows complement one another. It

has

also

emphasised

the

importance,

for

the

review

and

harmonisation of processes, of the SAFE Framework of Standards and Customs Guidelines for the integrated management of the supply chain of the World Customs Organization. Lastly, a review of the various systems involved in an international trade operation have been reviewed in order to achieve a more secure and efficient supply chain, paying attention to Logistics Collaboration Systems (LCS), Cargo Community Systems (CCS) and Port Community System (PCS).

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Unit II. What regulatory agency functions can benefit from the services of a single window environment?

Learning objectives

â&#x20AC;˘

To analyse the functions usually performed by customs, the trade regulatory and control agencies, and the authorities that manage public infrastructure.

â&#x20AC;˘

To understand how Single Windows can support the various bodies involved in the regulation of trade.

II.1. Border Management Functions (Foreign Trade Single Window)

As has been seen in the preceding module, although the Single Window concept can be applied in very different fields of activity, it is usually linked to the labour and services of the public entities involved in foreign trade operations, such as customs, the trade regulatory and control agencies, border security entities and the authorities that manage public infrastructure. The customs functions of admission, control, dispatch and release of merchandise originating or going abroad will therefore be among the basic functions susceptible to management by electronic Single Window services.

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The jurisdictions and responsibilities of customs and other agencies involved, however, are not homogenous and vary from one a country to another. With the objective of facilitating Single Window project analysis, the World Customs Organization (WCO) has conducted a detailed review of the different roles of customs administrations, preparing a list of customs functions grouped in the following blocks: Figure 2.1. List of customs functions

Source: Compiled by author. Adaptation of INDES design - 2013

For the different customs functions the WCO also identifies possible Single Window services related to customs functions and coordinated efforts required with other agencies.

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Figure 2.2. Classification of customs functions

Collections Management Facilitation of Transportation And Logistics Implementation of Trade Policies

Single Window Services

Public Health and Safety

Economic Protection

Source: In-house preparation based on WCO information

II.1.1. Collections Management

The main specific functions linked to the general customs collection function are: • To appraise and collect taxes, obligations and duties applicable to goods entering or leaving the country. • To ensure the collection of the Value Added Tax (VAT), Special Taxes or other local taxes on goods entering or leaving the country. • To facilitate the correct treatment of taxes in the payment of transnational transfers.

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• To resolve conflicts in the application of the corresponding taxes, obligations and duties in an expedited and equitable manner. • To prepare taxpayer profiles based on legal information to identify income opportunities. In connection with those functions, information services as well as transaction services could be offered from an electronic Single Window. Main Information Services: • Information regarding the different taxes, obligations and duties to pay in the importing and/or exporting for each type of product according to tariff code or position import duties. • Information on the method of application of each tax, obligation or rate. • Information

the

authorities

with

jurisdiction

for

the

collection. • Information on the regulatory measures required for importing and/or exporting each type of product and the agencies with jurisdiction for its verification and control. • Guidelines for the tariff classification of merchandise. Main transaction services: •

Electronic presentation of the documentation and formulas associated with procedures prior to product import and export operations in order to comply with the regulations applicable to different products.

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•

Module 3

Access to information and government databases on the part of different administrations in an electronic, automated manner with

the

object

increasing

the

control,

traceability,

transparency and security of foreign trade operations. •

Electronic work flow for dispatch and release procedures.

•

Electronic payment and management of all taxes and duties (as well as refunds).

•

Management of warehouse movements.

•

Information sharing in real time with the other authorities involved.

•

Portal for the management and resolution of conflicts.

II.1.2. Facilitation of Transportation and Logistics

The main specific functions connected to the general function of facilitating

transportation

and

logistics

involve

the

efficient

management of these transportation and logistics operations: • Ensuring that all cross border movements of merchandise are authorized

and

compliance

with

all

the

necessary

requirements for leaving or entering national territory by means of more secure, agile, efficient and transparent controls. • Ensuring

the

secure,

rapid

and

orderly

movement

unloading

operations

international means of transport. • Ensuring

that

the

and

containers and merchandise in ports and airports can be accomplished in a controlled, orderly and efficient manner. 30

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• Ensuring that the operations of storage, inspection, searching, review, etc., take place in a secure manner and with minimum impact on the flow of merchandise in terms of costs and time. • Ensuring that merchandise in storage and transit is stored and/or transported in a secure manner. • Ensuring that the means of transport utilized and the persons (transporters, crew, etc.) involved in cross border operations comply with all legal requirements.

There are various services that an electronic Single Window could offer in connection with these functions, for example: • Facilitating online information on ports, airports and border crossings. Including information on the location of warehouses, terminals, installations of the regulatory agencies (customs, inspection and quarantine sites, etc.). As well as of their characteristics such as: services offered, schedules, levels of service, tariffs, etc. • Providing information in real time on lines and waiting times at border installations. • Allowing the electronic presentation of information for the formalities of dispatch (for entry and exit) at customs and other regulatory agencies. • Allowing control authorities at border crossings online access to information related to customs dispatches (and other relevant information).

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• Services for the assignment of schedules and installations (docks, warehouses, parking areas, etc.) for cargo operations, required inspections, etc. • Services

for

the

coordination

merchandise

inspections

between regulatory agencies and physical control and security agencies. • Services for the management of licenses of installations for the storage and handling of goods in customs controlled areas.

II.1.3. Implementation of Trade Policies

The main functions connected to the implementation of trade policies are: •

Implementing measures derived from trade policies (tariff and non-tariff) and facilitating trade.

•

Providing detailed trade information to support the development of trade policies.

•

Implementing customs measures corresponding to the different bilateral, regional and multilateral trade agreements, and to economic cooperation agreements.

Some of the Single Window services that could be offered in connection with these functions are: •

Providing trade and statistical information to all the regulatory agencies involved.

•

Providing information on the trade measures (tariff and nontariff) applicable to all the products. 32

Single Window for Foreign Trade, 5th Edition

•

Module 3

Providing transaction services for license and permit requests for

importing

and

exporting,

confirmation

and

posterior

verification of licenses and permits.

II.1.4. Public Health and Safety The main functions connected to public health and safety are: •

Implementing

product

admission

measures

guarantee

consumer safety, industrial security, environmental protection and public health. •

Preventing and avoiding traffic in drugs and persons.

•

Implementing cross border regulations of the movement of hazardous wastes.

Some possible Single Window services in connection with these functions are: •

Information on products that describe risks from the point of view of security, the environment and public health.

•

Providing

information

the

dangers

narcotics

and

psychotropic substances. •

Providing information on regulations applicable to the handling and movement of hazardous wastes (Basel Convention).

•

Access to information and government databases on the part of different administrations in an electronic, automatic manner with

the

object

increasing

the

control,

traceability,

transparency and security of foreign trade operations.

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II.1.5. Economic Protection

Customs, regulatory and foreign trade control agencies permit the exercise of economic protection of the nation and its products for the purpose of shielding them from illicit acts. The main functions in the framework of economic protection are: •

Preventing the use of trade and international transportation for illegal movement of money across borders.

•

Implementing appropriate protection measures contra the dumping and other compensatory measures.

•

Ensuring that the falsification of articles (including money) does not get into the market.

Some of the Single Window services that could be offered in connection with these functions are: •

Online service for the declaration of currency by travellers.

•

Electronic,

automatic

control

movement

exchange

between financial entities, the central bank, customs and other regulatory agencies that may be involved. •

Online information services on protective and compensatory quotas.

•

Online services for the registration of Intellectual Property Rights.

•

Providing

liaison

for

the

company

with

Single

Window

international trade services and the Administration’s other electronic services (e-government).

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Although the region’s Single Window experiences and environments will be analyzed in greater detail in the last module of the course, other foreign trade Single Window experiences will be described in this section by way of example, some collected in the Single Window Electronic study published by the IDB in 2010, others in the study of Single Window in the Mesoamerican Integration Corridor carried out by the IDB in 2011, as well as the case of Spain.

II.1.6. Canada: ACROSS

Canada’s

Accelerated

Commercial

Release

Operations Support System (ACROSS) provides advanced electronic technologies to facilitate the way goods are imported to Canada. In this system importers and customs agents exchange electronic information with the customs service (Canada Border Services Agency–CBSA), eliminating all requirements to present paper. By reducing the work load required for the dispatch of low risk shipping, it allows merchandise to be released in a more efficient and rapid manner.

II.1.7. Chile: SICEX

Its objective is to integrate the eight public services that intervene in the greater volume of foreign trade operations.

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These public entities participate in 96 percent of foreign trade operations: Servicio Nacional de Aduanas [National Customs Service], Servicio de Salud [Health Service], Oficina del Tesoro de la República [Treasury], Servicios Fitosanitario y Veterinario [Plant and Animal Health Services], Oficina del Servicio de Registry e Identificación [Registry and Identification Service], Instituto de Salud Pública [Public Health Institute], Servicio Nacional de Pesca [National Fishing Service] and Subsecretaría de Transportes [Undersecretariat of Transportation].

II.1.8. Colombia: FOREIGN TRADE SINGLE WINDOW

Colombia

has

Foreign

Trade

Single

Window

(FOREIGN TRADE SINGLE WINDOW from its Spanish initials) that was created by means of a decree that involved the Ministers of the related entities, which include 18 institutions at the national level. Colombia’s FOREIGN TRADE SINGLE WINDOW has three modules, Imports, Exports and Single Foreign Trade Form (FUCE). The user can carry out foreign trade operations on the Internet, dealing with the entities with jurisdiction over foreign trade operations. The system guarantees the technological and juridical security of the different procedures by integrating a digital signature. Additionally, it allows online electronic payments to speed up the procedure.

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The entities participating in the process are the Ministries of Trade, Industry and Tourism, Mines and Energy, Environment, Housing and Territorial Development, Transportation, Social Protection, Foreign Relations, Agriculture, Defense and Culture; the Superintendencies of Industry and Trade and of Private Oversight and Security; Incoder, ICA

(Instituto

Colombiano

Agropecuario),

Ingeominas,

Invima

(National Institute of Oversight of Medications and Food), Indumil, the National Bureau of Narcotics and the National Fund of Narcotics.

II.1.9. Spain: Single Window Environment

Spain has a Single Window environment supported by a law giving citizens electronic access to Public Services, an electronic signature law and a law on measures to encourage the Information Society. The Single Window environment is constituted as the electronic headquarters of the various public agencies and electronic communications take place between those agencies. There are regulations that establish Single Window functions for different foreign trade procedures, establishing single entry channels for each customs procedure, public infrastructure management authority and the foreign trade regulatory agencies. In the large ports this Single Window environment is strengthened by community port systems establishing logistics-port collaboration and acting as point of entry to Single Window.

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Additionally, Spain is a part of the European Unión and, like the rest of the European common market countries, participates in Single Window at the European level, as well as in the Import Control System

(ICS),

the

Export

Control

System

(ECS),

the

New

Computerized Transit System (NCTS) and the veterinary health system (TRAde Control and Expert System–TRACES).

II.1.10. Jamaica: Trade Point

portal

(JAMPRO),

coordinated Trade

Point

Jamaica

allows

Promotions

importers

and

exporters to carry out different transactions on line. These operations include: the registration of exporters, the processing of electronic manifests, the creation of commercial invoices, the sending of the single import and export forms through customs, and requests for import and export licenses. In addition to Trade Point Jamaica is actively pursuing other Single Window Options.

There is the Single Trade Electronic Window

(STEW) initiated by The Trade Board Jamaica Ltd and ASYCUDA World initiated by the Jamaica Customs Agency (JCA). If all goes according to plan the STEW should be launched in July 2015 to begin operations in September 2015. The STEW Model to be implemented is a Single Automated System for the collection and dissemination of information. See table below.

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Proposed structure for stew - Jamaica

Source: Prepared by the Author

ASYCUDA WORLD is in pilot mode and the export component was fully implement May 11, 2015. Consequently, the export regime for all commercial shipment is paperless declaration. ASYCUDA World in Jamaica was renamed Jamaica Electronic Trade System (JETS). JETS will interface with STEW and there will be no overlapping of function or doubling up of information gathered. STEW will upload to JETS the requisite permits and any other relevant information. The diagram below show the level of integration between to two systems.

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Source: Prepared by the Author

II.1.11. Mexico: FOREIGN TRADE SINGLE WINDOW

the

time

editing

the

present

module

(November 2011), Mexico was developing its Foreign Trade Single Window (FOREIGN TRADE SINGLE WINDOWM, from its initials in Spanish), which will centralize all importing, exporting and transit transactions. A presidential decree has been issued to that effect, establishing a government

plan,

implementing

the

project

and

obliging

all

government agencies and entities to incorporate their foreign trade procedures to the Single Window within a stipulated period of time.

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intersecretarial

group

has

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been

created

supervise

the

development of the Single Window project. The entities involved in the FOREIGN TRADE SINGLE WINDOWM are customs (AGA), Secretariat of Economy (SE), SAGARPA (Agriculture, Rural Development, Fishing and Food), SALUD (Health), SEMARNAT (Environment and Natural Resources), SEDENA (Defense), SENER (Energy), INAH (Anthropology and History), INBAL (Fine Arts), AMECAFĂ&#x2030; (Coffee), CRT (Tequila), SFP (Public Employees) and COFEMER (Regulatory Improvements). Mexico contemplates the concept of private Window that are no less than collaborative systems in the foreign trade, logistics and transportation field. FOREIGN TRADE SINGLE WINDOW contemplates interchanges in its design with the private sector through this type of system, sending and receiving messages to the diverse actors.

Figure 2.3. Foreign Trade Single Windows connectivity with Single Window

Source: Secretariat of Economy of Mexico

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II.1.12. Peru: FOREIGN TRADE SINGLE WINDOW

The

Peruvian

Single

Window

defined

integrated system that permits international trade participants to submit documents and information to cover

the

regulatory

requirements

for

importing,

transit

and

exporting by electronic means. The legislation associated with FOREIGN TRADE SINGLE WINDOW provides for the electronic payment of tariffs and duties as well as the possibility of establishing coordinated border management with other countries.

II.1.13. Trinidad and Tobago: Single Electronic Window

This is a tool to facilitate trade based on information technology management

that

complements

system.

The

the

system

customs

consists

presenting standardized information and documents at a single point of entry with the object complying with the regulatory requirements for importing, exporting and transit. The solution has been designed with the objective of providing a single point of interaction for private actors and government agencies to be able to collaborate in processing the permits and approvals required online in a simple and efficient manner.

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After reviewing the different functions of border management presented in this chapter and the Single Window service ideas, reflect on Single Window service ideas for the situation in different countries and on other Single Window service ideas.

II.2. Vessel Port Call Functions (Port Single Window)

The principal objective of Port Single Window is to facilitate all the procedures necessary for vessel port calls. These Port Single Window must deal with the international standards sponsored, as the case may be, by the International Maritime Organization (IMO), the Convention on Facilitation of International Maritime Traffic (FAL Convention), the International Ship and Port Security (ISPS) code, the International Maritime Dangerous Goods (IMDG) code and other international agreements such as Port State Control (PSC), as well as any relevant standards at the national level. Moreover, and looking to eliminate existing barriers to maritime transportation,

Port

Single

Window

must

seek

the

effective

cooperation of all the authorities with jurisdiction, such as customs, border police, health, ports and maritime authorities, so that all the formalities required of vessels are accomplished in the most efficient manner possible, utilizing electronic systems and transmissions.

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Two relevant examples of Port Single Window are to be found in the port data concentration system of the ambitious Paperless Port Program developed by the Secretariat of Ports of Brazil and in the recently approved European Directive on Formalities for Ships in Ports. In the concrete case of the European Union, based on the aforementioned European Union directive, as of June 2015 formalities in all EU Member States applicable to ships in ports will have to be dealt with by electronic means in a national Single Window environment. These formalities applicable to ships, enumerated below, may serve as examples of the different functionalities which could be served from Port Single Window:

II.2.1 Formalities derived from the European standards:

•

Notification of ships arriving or departing European ports.

•

Control of persons at borders.

•

Notification of dangerous goods and contaminants transported aboard ship.

•

Notification of waste.

•

Notification of security information.

•

Summary Declarations of Entry and Exit.

•

Summary Declarations of temporary storage.

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II.2.2.

FAL

Forms

and

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formalities

derived

from

legal

international instruments:

•

FAL Form 1: IMO General Declaration.

•

FAL Form 2: Cargo Declaration.

•

FAL Form 3: Ship’s Stores Declaration.

•

FAL Form 4: Crew’s Effects Declaration.

•

FAL Form 5: Crew List.

•

FAL Form 6: Passenger List.

•

FAL Form 7: Dangerous Goods.

•

Maritime Health Declaration.

The IMO/FAL forms and the labours carried out by the international PROTECT Group of Ports Authorities defining a scenario of electronic messages to cover these formalities stand out as efforts to rationalize processes and apply international standards in Port Single Window. To assist in the Port Authorities’ information requirements in regard to ships entering or leaving a port, the PROTECT Group has established a series of standard EDI recognized worldwide and brought together in a guide that describes in detail the messages exchanged between the maritime lines or their agents and the Ports Authorities and/or other authorities with jurisdiction. These messages cover the ships’ notification requirements to request authorizations and services when the ports dock and/or utilize waters under the jurisdiction of such authorities. At the present time the PROTECT Group has established standards for the following procedures or operations: 45

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Figure 2.4. Standards for procedures or operations

Source: Adaptation of INDES design - 2013

EXTRA CONTENT www.smdg.org On many occasions the implementation of Port Single Window is supported by the development of a Port Community System (PCS). A PCS is a technological platform that facilitates the interchange

information

between

the

different

electronic

agents

that

participate in port activities and is recognized as the most advanced method for

the

interchange

information between the

Port

Community (at the national level or in a specific port) acting as point or channel of entry to the Single Window environment.

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In cases in which a National Single Window system is not yet available for the implementation of automatic processes in borders and ports, the existence of a PCS can to serve as a basis or assist in its

development.

those

cases

which

Single

Window

environment is already available, the PCS can to serve as a point of access to the national Single Window system or as one of its components within a broader Single Window Environment vision. PCSs are, therefore, complementary platforms of logistics and transportation collaboration that allow the Single Window concept to be

extended,

incorporating

private

relationships

(business-to-

business) and facilitating access to processes or relationships between the private sector and the administrations (business-togovernment)

generally

managed

through

other

national

international Single Window.

IE As cases of reference in Port Single Window we could mention the experience of the Secretariat of Ports of Brazil and of the Spanish Port System. In the case of Brazilian ports, the Secretariat of Ports of Brazil (SEP) has recently implemented a Port Single Window with the name Port Data Concentrator within a â&#x20AC;&#x153;Paperless Port Programâ&#x20AC;? designed to integrate and automate logistics/port operations in an efficient, agile, secure, reliable, competitive and transparent manner. 47

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In that sense, the system began operations in August of 2011 in the ports of Santos, RĂo de Janeiro and Vitoria. The objective is for all Brazilian ports, in the mid-term, to utilize this system to electronically process all the information formalities required of ships for docking and leaving the aforesaid ports. In this manner, Brazil is pioneering a process of maritime traffic facilitation, harmonizing and unifying procedures, while reducing the administrative workload and the time ships spend going through procedures with the different authorities with jurisdiction to obtain authorizations to enter and leave ports. This measure complements gradual implementation of a Vessel Traffic Management System (VTMS). These important advances are in alignment with similar actions being developed in other countries and regions. The European Union already has the European Maritime Safety Agency (EMSA) that focuses on the security of maritime navigation with a sophisticated system for following maritime traffic. A recently adopted directive (2010/65/UE)

designed

establish

fluid,

efficacious

communications between the SafeSeaNet data interchange system, electronic customs services (e-Customs) and electronic systems for the introduction and discharge of data. The objective of this directive is to deepen the cooperation between all the authorities with jurisdiction and to require the use of electronic systems and the electronic interchange of information in order to comply with information formalities between EU member State authorities with jurisdiction.

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Both Brazil and Europe are working to rationalize information formalities and to make the electronic systems involved in maritime transportation and the ports interoperable, thereby creating an effective Single Window environment that achieves simplification, unification and harmonization of all the formalities required by such entities as the authorities controlling customs, the border, public health, security and transportation. In this ambience it may be concluded that Spain is one of the European countries in an advanced stage of creating Port Single Window, having had tangible experiences since 1995. The Port Authority of Valencia has been a pioneer and driver of this process. Valenciaport utilizes three administrative Single Window (VUs) for the following procedures, which are also applied in all Spanish ports: 1. Summary Declarations of temporary storage and cargo manifests (in operation since 1995): Presentation of summary declarations of discharge upon the arrival of the ship in port and cargo manifests to customs and the Port Authority upon exit. 2. Requests for port call and ship in port formalities (in operation since 1996): Presentation of the request for port call as well as all the formalities required in electronic form to the Port Authority, the Maritime Authority (Capitanía Marítima) and other agencies that require information on the arrival of a ship in port (police, customs, port services, …). 3. Notification of dangerous goods (in operation since 1996): Presentation of the declaration of dangerous goods aboard ship and notification of the entry and exit of dangerous goods to the Port Authority and to the Maritime Authority (Capitanía Marítima).

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The object of these three Single Window developed in Valenciaport has been the simplification of administrative procedures necessary for the

submission

the

necessary

documentation

various

administrations and to obtain the pertinent authorizations from those administrations. This type of solution significantly improves the control and the quality of the data presented by the declarants involved. In addition, the Port Authority of Valencia has, through its Port Community System valenciaportpcs.net, extended the Single Window concept to be used by the entire community port private sector

with

coordinating

the

object

transportation

simplifying

trade

transactions

operations

required

the

and port,

particularly when the merchandise is unified, as in the case of containers. Single points of entry for information by the private sector are created in this manner as well, integrating the logistics, port services of various organizations, establishing a single port â&#x20AC;&#x153;virtual companyâ&#x20AC;? that offers services in an integrated and coordinated manner. Some of the services that can be offered from a single point are the following: â&#x20AC;˘

Services for the management of land transportation of containers.

The

agents

involved

(container

transporters,

maritime operators, port terminals, interior terminals or dry ports, storage facilities for empty containers and land transporters) present the required documentation in an electronic environment. It is then distributed to the rest of agents according to preestablished business rules. These services apply to all types of movements of containers with goods (importing, exporting and transit) and are related to the Single Window environment established by foreign trade regulatory agencies, customs and the Port and Maritime Authorities. 50

Single Window for Foreign Trade, 5th Edition

â&#x20AC;˘

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Services for the management of land transportation allow attaining

optimal

logistics

coordination

between

all

the

participants, which translates into important savings in the management

the

associated

documentation,

which

complemented by a paperless, automatic release of imported containers on the part of the Resguardo Fiscal (a Guardia Civil body that acts as customs police at the border). â&#x20AC;˘

Services for the presentation of orders to load and unload containers of the vessel. Maritime container operators and terminals have a single point of entry for the issuance and reception of this type of information in electronic form. The information transmitted can be consulted by customs, Resguardo Fiscal or border police and the Valencia Port Authority to effect the controls they find pertinent, The data is compared with information available on customs dispatches received by the Port Authorities through the Single Window environment for greater control and security of the operations as well as an improvement in the management and time of the operation.

â&#x20AC;˘

Services

for

contracting

maritime

transportation.

Transporters have a single point of entry available in which they can electronically transmit cargo reservations and embarkation instructions to maritime container operators who have agreements with the global platforms of steamship companies.

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For its part, the valenciaportpcs.net Community Port System takes shape as the technological instrument the Port of Valencia utilizes for its Mark of Guarantee to monitor the quality of port and cargo services with a set of tools (such as the land transportation closing time procedure, for example) and reports that allow monitoring and follow up on operations the performance through this system by the Mark of Guarantee itself and by the agents held responsible for the operations. In fact, all the companies subscribing to the Port of Valencia

Mark

Guarantee

are

obliged

utilize

the

valenciaportpcs.net Community Port System.

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Unit summary

•

The regulatory agency functions that can benefit from a Single Window environment are numerous and include the basic customs duties.

•

The main actors involved in Foreign Trade Single Windows are the institutions related to international trade and customs, as well as those mainly providing services to the customs functions of admission,

control,

dispatch

and

release

merchandise

originating or going abroad. •

The main actors involved in Port Single Windows are the maritime and port authorities, mainly providing services in terms of all procedures and formalities relating to the vessel's stay in port.

•

The Single Window concept includes the idea of presenting the information only once, avoiding repeated presentation in different institutions of the same information by the same respondent. This is not the presentation of information in a single transmission, but that information should be completed in successive transmissions according to the logic of business processes that cover the requirements of trade, international transportation and border control.

•

To do so, the development of Single Window projects usually requires a process of analysis and redesign or reengineering of processes

that

enables

them

adapted

this

new

philosophy. Process modelling enables us to better understand the processes and identify opportunities for simplification.

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Unit III. Processes of business for the design of single window

Learning objectives

•

To understand the business processes for the design of Single Windows.

•

To discover what process modelling is, as a tool for reviewing and adapting new Single Window plan procedures.

•

To identify what the Reengineering of Services and the continuous improvement process are.

•

To understand what Single-Window Process Modelling is.

The concept of Single Window includes the idea of one time submission of information to government agencies, avoiding repeated submissions to different institutions of the same information by the same declarant. One time submission does not, however, imply that all the information has to be transmitted to the same actor or at a single instant. On the contrary, for better risk management, information is still required from the different actors who participate in trade and transportation, and that information should be gradually completed in successive transmissions, in accordance with the logic of the business processes, to cover the requirements established in trade, international transportation and transborder control.

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Doing it this way is not possible unless the labour has previously been invested to standardize the processes, procedures, information and documentation associated with them. Therefore, the development of Single Window projects generally requires a process of analysis and redesign or reengineering of processes that permits them to be adapted to the philosophy of eliminating the duplication and duplicity of information. Business Process Modeling (BPM) is useful for approaching the task.

III.1. Introduction to Reengineering and Continually Improving Services

For the authors of the publication “Reengineering,” Michael Hammer and James Champy, reengineering is “the fundamental review and radical redesign of processes to attain spectacular improvements in critical and contemporary measures of performance, such as costs, quality, service and rapidity.”

And as these authors emphasize, there are four key words in this definition that have been put in boldface. Business processes is understood to refer to the conjunction of activities that receive one or more inputs and create a product of value for the client.

Single Window for Foreign Trade, 5th Edition

Taking

that

definition

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the

sphere

the

Single

Window

environment, we could associate the term business process with service, and define the term service as the conjunction of activities that receive one or more petitions or requests and create a solution that contributes value to the user or users of the service. In this analogy we would be speaking of a Reengineering of Services. The term fundamental review refers to analyzing the basis of the activity under analysis, responding to its most basic questions and, in many cases, the responses taken for granted. In a fundamental review one should always attempt to answer the question: why are you doing what you are doing? When radical redesign is mentioned, it is always emphasized that the change proposed should not be superficial but that the objective is get at the root or motivation of the activity, to look for a better solution based on new structures and concepts that can finally break with the traditional conception of the tasks connected to the activity to the extent that those tasks may not be the most appropriate. To attain spectacular improvements means that the reengineering of services should not attempt to obtain marginal improvements in services offered in an inefficient, inadequate manner. On the contrary, new, valid focuses must be sought, capable of offering great leaps in performance, productivity and competiveness. That

being

the

case,

reengineering

should

begin

with

preconceptions at all, without accepting anything as given, forgetting the way things are and concentrating on how they should be, discarding inefficient structures and procedures and improving the foundations and bases of the activity.

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Nevertheless, it is important to keep in mind the fact that the reengineering of services should be applied when seeking or needing to increase the competiveness of services because present services have clearly been unsatisfactory or an important opportunity has been identified to improve them and offer competitive advantages. The reengineering of services has an important cost and requires a significant effort to manage the change. For example, to apply a reengineering of services to a service that has recently been affected by a major reengineering process could be counterproductive. However, to review and apply a reengineering of services to other services that use services that have been optimized could give rise to growing, massive improvements. It

important

distinguish

between

reengineering

and

automation. Automation of existing processes and services by computerizing them merely allows the activities to be carried out in a more rapid and efficient manner. However, computerizing does not get to the root of the problem and ask if what was being done before was the best way to do things. Reengineering tries to approach that question and find a response, seeking a better way to perform an activity. Therefore, in the first place, it is appropriate in supplying a service to find out if the application of reengineering and subsequent automation of the new redesigned and optimized service structure is actually required. For example, the computerization of a paper document to facilitate its electronic transmission does not question the necessity of submitting a document when the information may have been submitted previously and is already available in the government database.

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Neither is it necessary to confuse the reengineering of services (derived from the reengineering of processes) that has been present in this section with a reengineering of computerization or of software, where the effort seeks to reconstruct obsolete computer systems with more modern technology. Reengineering the software can allow the attainment of better automation but, again, we must evaluate

whether

what

are

doing

automating

useless

bureaucracy or computerizing bad practices. Nevertheless, the introduction

modern

technologies

has

revolutionized

the

foundations of the services offered companies and governments, reviving the process of reengineering at all levels. The possibility of transmitting enormous quantities of data at high velocities from any point on the planet to any other point through the Internet, the immense storage and processing capacities for that information and the appearance of new apparatus and technologies of detection, identification and compilation of information are changing the relations between the citizens, business and the government. Finally,

reengineering

must

not

confused

with

continual

improvement. These two concepts are complementary and must be applied in the proper order. In the first place, reengineering must occur first. In the second place, reengineering should be followed by continual improvement. This process can also be subject to cycles in which once a process of reengineering has taken place a process of continual improvement is applied. This continual improvement can offer satisfactory results until the bases of the service offered are modified to the point of once again requiring a new reengineering of the services offered.

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III.2. Introduction to Process Modeling

Models are simplifications or abstractions of reality that help us to visualize and analyze reality. The complexity of analyzing and documenting business processes makes it convenient get assistance from

graphic

modelling

tools

and

languages

that

facilitate

representation and analysis, although a description of the same continues to be important for its complete characterization. This type of model allows us to better understand the processes and discover opportunities to simplify. Unified Modeling Language (UML) is a graphic language to visualize, specify, construct and document a system. UML offers a standard for describing a "system plan" (model), including such conceptual aspects as business processes, system functions, and concrete aspects within information and communications technologies, as expressions of programming languages, database schematics and reutilizable components. Although UML is very extensive for the modelling of software systems among computer analysts and specialists, it is also commonly utilized for the logic description processes of business as an aide to visualize business processes and specify information requirements. In that manner, it is a very useful tool for describing Single Window business processes. UML utilizes different types of diagrams. A diagram gives the user a means of visualizing and manipulating the modelled elements. The types of diagrams considered in UML language are:

Single Window for Foreign Trade, 5th Edition

•

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Diagram of Cases of Use: Represent the functions offered by a service from the user’s point of view.

•

Diagrams of Sequence: Are a temporal representation of actors and objects with the interactions between them.

•

Diagram of Collaboration: Are a spatial representation of actors and objects, their connections and the interactions between them.

•

Diagram of States-Transitions: Representing the behaviour of an object or of an entity in terms of states.

•

Diagram of Activities: Represents the behaviour of an operation in terms of actions.

•

Diagram of Classes: Represents static structure terms of classes and relationships. In computer language, “class” is understood as a type of object or entity.

•

Diagram of Components: Represents the components that constitute a computer application.

•

Diagram of Display: Represents the display of the components on material apparatus (computers, servers, etc.)

UML modelling can be excessively complex and it is convenient to utilize and apply it with an eye to a balance between the value it contributes and the effort invested in the modelling. It may be said that 80% of the necessities of process modelling can be obtained with 20% of UML. Excessive modelling can even be counterproductive to the process or service modelled.

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There are other methodologies and standards for the modelling of processes, many of them based on UML itself. This is the case of UMM (UN/CEFACT Modeling Methodology) the principal objective of which is the analysis of requirements and business processes between organizations.

EXTRA CONTENT •

http://www.uml.org

•

http://www.unece.org/cefact/umm/ucmm_index.html

WCO proposes the use of Diagrams of Cases of use, Descriptions of Cases of use and Diagrams of Activities for the modelling of Single Window processes. The objective of Diagrams of Cases of use is to graphically represent the functionality of a system identifying the actors involved, their functions/objectives or cases of use and the relationships and interdependencies between those actors. The stick figures or “monigotes” represent the actors and the ovals the cases of use within a process. The lines represent the relationship between the actor and the cases of use of the process.

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Figure 3.1. Example of Diagram of Case of Use for the Declaration of Merchandise Arrival process

Source: In-House preparation based on the WCO Data Model

Diagrams of Cases of Use are usually accompanied by descriptions in a table that contains the presentation of the actors involved, the cases of use of the process and the conditions of beginning and ending. One particularly interesting characteristic of Cases of Use is that they can be considered at different levels of detail or abstraction. So we can model a case of use from a high level in order to gradually break it down into greater detail where new actors and cases of use can appear at a lower level until coming to the case of use of one individual action. Processes can be modelled in this manner down to the level of detail considered appropriate for the analysis underway at a particular time. Four large categories of actors can be identified in cases of use.

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Figure 3.2. Categories of actors

Source: In-house preparation based on WCO information

•

Principal Actors: The group of persons that utilize the principal functions of a service.

•

Secondary Actors: The group of persons that service’s carry out administrative or maintenance tasks.

•

External Materials: The group of material resources that form a part of the environment of the service and which ought to be utilized.

•

Other services: The group of services with which the modelled service should interact.

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Once the actors are identified, they must be described clearly and concisely. When numerous actors interact in a service it is best to group them in categories for the purpose of facilitating navigating the cases of use model. Diagrams of cases of use represent cases of one (through elliptical figures), actors and relations. Relationships between actors and cases of use, are referred to as communication or interaction relationships, while the relationships between cases of use may be relationships of utilization or relationships of extension of cases of use. So, a case of use can either utilize another case of use to meet its objective or extend the behaviour of an existing case of use. Table 1. Example of description of a Case of Use within of the Arrival of Merchandise to Customs Territory Declaration process Case of Use

Declaration prior to the dispatch. Declarant: Transporter, Representative, Receptor or Consignee.

Actors

Authority: Customs, Port Authority and other government agencies (Health, Immigration, Veterinary, Agriculture,â&#x20AC;Ś). Provisions are made as necessary to satisfy the requirements of

Description

customs and other regulatory agencies for the entry and unloading of the products and the means of transport for commercial use in the customs territory.

Pre-

Merchandise was exported from its origin and must arrive at the

conditions

destination in order to be imported into customs territory. After the arrival and unloading of merchandise the procedures can

Post-

begin prior to the dispatch and subsequent declarations for

conditions

presenting goods in temporary storage to other customs destination (importing, transit or customs storage). Source: In-House preparation based on the WCO Data Model

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The analysis of processes must take five dimensions into account: •

The chronology that refers to the time at which various events take

place.

(The

events

refer

concrete

points

the

development of an activity). •

The geography that refers to the place where the different events occur.

•

The actors that participate in the various events and activities. (On occasion they may to be generalized as abstract actors, for example the Authority actor can refer to the Customs Authority, the Port Authority and other trade regulatory agencies, the Health Authority for example).

•

The formalities or legal procedures that can oblige the actors to a determined pattern of behaviour.

•

The interchanges of information, data and usage between the different actors involved.

III.2.1.

Different

focuses

for

the

analysis

business

processes in international supply chains

The focus of business processes in international supply chains can vary in function to the point of view and interests of the different actors or agents. For the regulatory agencies, the process can end with the dispatch and release of goods, while for the purchasers and venders, the process does not end until the goods have been delivered and pending accounts have been settled.

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For the transporters, the process ends when all the payments and claims with respect to the In order to be able to manage all these different focuses or points

view,

business

transportation

contract

have been settled. In order to be able to manage all

processes and their models can

these different focuses or

be divided into trade processes,

points

transportation

processes and their models

processes

and

view,

business

can be divided into trade

legal processes.

processes,

transportation

processes and legal processes. Trade processes include the discovery of products by potential purchasers,

the

identification

business

partners,

and

the

establishment of a purchase agreement for the products, as well as the conjunction of activities that have to do with compliance with the purchase order. Supply chain events such as the confirmation of the purchase order, the shipping and the delivery of the goods are relevant in this focus. The principal actors involved are the purchaser, the seller and the producer. Transportation processes include all the processes connected to the physical transportation of goods by the means of transport. Events such as the reservation of space aboard the means of transport, the loading and unloading of merchandise or the delivery of merchandise are relevant in this focus. New actors now appear, transporters and transportation operators. Legal processes include the processes that have to do with compliance with all the formalities of the regulatory agencies along the supply chain. The principal events in this case are those that involve regulatory controls by government agencies. 66

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When

implementing

this

type

Module 3

business

process

analysis

differentiating the various focuses, it is necessary to keep in mind that

certain

events

such

loading,

unloading

delivering

merchandise appear in all three focuses with the same meaning. The following chart summarizes the different focuses or points of view that can be adopted at the time of analyzing business processes in international supply chains.

Figure 3.3. Presentation of different focuses for analysis of business processes in the international logistic chain

Source: World Customs Organization (WCO).

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Having commented upon the methodologies utilized most frequently for modeling and analysis of business processes, the different dimensions addressed in analysis and the different focuses or points of view from which the processes of international logistics chains can be analyzed, the following diagram from the World Customs Organization presents the general pattern of an international supply chain from the point of view of the legal processes attending the five dimensions pointed out above (chronology, geography, actors, formalities and information interchanges). The diagram shows the principal phases that have taken place in the flow of merchandise along the supply chain: Pre-exporting, Exporting, International Transportation, International Transit, (PreImporting), Importing, Subsequent Audits. This outline can to be utilized as a guide for the representation of specific business processes that develop in each one of these phases.

III.3. Sources of relevant information for Single Window process modelling and analysis

In the spirit of facilitating and simplifying the process for the identification and analysis of business processes connected to Single Window projects, it is convenient to pay attention to a conjunction of works and reports from various institutions. The WCO Data Model includes the analysis and model of customs procedures and processes included in the Revised Kyoto Convention for the Simplification and Harmonization of Customs Procedures. It utilizes diagrams of cases of use, activity and descriptions.

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The information flows of customs agencies and other control or regulatory agencies have been categorized, unified and modelled utilizing UML. These models can be utilized at the level national as reference models during the development of automated systems. The conjunction of processes the WCO Data Module analyzes is based on the following simplified diagram of business processes: Figure 3.4. Simplified Diagram of Business Processes

Source: World Customs Organization (WCO).

WCO models assist the analysts and developers in the analysis of relationships among information that comes from different processes all along the international logistics chain. The following table shows possible business processes for which the WCO Data Model can serve:

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Table 2. Processes included in the WCO Data Model Designed as part of the WCO Data Model •

Goods import and export declarations

•

Transit declarations

•

Simplified import and export declarations

•

Cargo import and export declarations

•

Transportation operations reports

•

Responses of the regulatory agencies to earlier declarations Considered in the WCO Data Model

•

Anticipated export of goods declaration (SAFE)

•

Anticipated cargo declarations (SAFE) Other processes/messages with logistics and security information

•

Follow up on container status

•

Control and follow up of ship movement

•

Security reports on the means of transportation Outside the scope of WCO Data Model Version 3

•

Requests for regulatory requirement details

•

Registry of quota and use

•

Request for licenses, certificates and authorizations

•

Reports of use of licenses Other processes/messages based on the WCO Data Model apart from regulatory agencies

•

Messages to maintain lists of codes and master databanks

•

Request for the computation of taxes and the details of the tax liabilities

•

Registry of long term trade agreements

•

Advanced application of rules for the classification of products, valuation and origin Source: In-House preparation based on World Customs Organization (WCO) information

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But the WCO Data Model is more than the model of business processes related to international trade and cross-border agency regulations. The WCO Data Model is a conjunction of interrelated components including business process models, harmonized data sets, information models, international standards and the definition of standard electronic messages with detailed implementation guidelines and other support documentation. Figure 3.5. Components of the WCO Data Model

Source: World Customs Organization (WCO).

IE The Asia-Pacific Economic Cooperation (APEC) forum identifies a conjunction of business process categories to bear in mind in developing a Single Window system in accordance with APEC SCCP â&#x20AC;&#x153;Single Window Implementation Guide.â&#x20AC;? The principal factors to consider are:

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Table 3. Processes and Factors to consider in a Single Window Category

Factors to consider •

Notification of the crew

•

Notification of the cargo

•

Notification of transportation

•

Electronic notifications before the use of the paper

•

Specific economic information

•

Period of notification

•

Communications between agencies

Notifications

•

Activities of conformity

(Import, Export, Transit, Transborder)

•

Notifications in cascade

•

Methodology of notification evaluation

•

Port notifications

•

Alignment with legislative requirements

•

Multi-modal notification capacity

•

Capacity to correct, consult and modify

•

Temporary imports

•

Discrepancies in information

•

Date and time of message reception

•

Dispatch and release messages

•

Notification of arrival and departure (electronic before the use of paper)

•

Notification of release and dispatch (electronic before the use of paper)

•

Memoranda of Understanding between government agencies and Port Authorities

•

Compatibility of Systems

•

Identification of the necessities of intelligence data

•

Risk evaluation methodologies

•

Methodology for compiling intelligence data

•

Methodology for the analysis of intelligence data

•

Sharing of intelligence data between agencies and at the international level

•

Automatic Systems before manual processes

•

Risk management

Port Connectivity

Integrated Risk Management

Single Window for Foreign Trade, 5th Edition

Category

Factors to consider

International Data Interchange

Contingency Plans

•

Alignment with international standards such as the WCO Data Model

•

Electronic messaging

•

Modeling of business processes

•

International interoperability

•

Track and trace

•

System failures

•

Recovery plan in case of disaster Source: APEC, 2009

On the other hand, it is important to always keep in mind that cross border regulation processes are subject to national legislation, which is generally based on international conventions, standards and practices that have been established to harmonize and simplify trade. This legal and normative framework should always be considered in modelling

Single

Window

processes.

Included,

among

other

considerations, are: •

The respective national legislation.

•

The SAFE Framework of Standards and the Authorized Economic Operator concept.

•

The IMO FAL Convention.

•

The TIR Convention.

•

The WCO Post Clearance Audit Guidelines.

•

The Revised Kyoto Convention.

•

Other international conventions.

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III.4. The Principal Business Processes in a Single Window Environment

The WCO groups the principal business processes of a Single Window Environment

five

blocks

for

cross-border

regulation

and

management: Registry

and

Authorization

Processes:

The

processes

are

concerned with registry and authorization on the part of the Single Window operator or the coordinator of the various regulatory agencies and operators, installations and systems that will be in contact with Single Window services. Requests

for

Licenses,

Certificates,

Permits

and

other

Processes: The movement of goods and conveyances between countries is subject to tariff and non-tariff regulatory regimens. So it is often necessary to comply with specific conditions (in terms of licenses, certificates, permits and other documents) before the regulatory authorities permit the importing, exporting or transit of merchandise. The processes include requests for licenses, permits, etc., the corresponding

verifications,

compliance

with

inspections

and

corresponding validations, compliance with validations or subsequent audits. Anticipated Information Processes: The SAFE Framework of Standards requires advance compilation of the information that must be submitted to the regulatory agencies during importing and exporting processes.

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This group of processes includes goods declarations prior to exit and arrival, and other types of information such as a ship loading plan or the condition of containers. Goods

Declarations,

Processes,

Cargo

Transportation

Declarations Operation

and

Reports

Unloading are

based

principally on the Revised Kyoto Convention for the Simplification and Harmonization

Customs

Procedures,

extended

meet

the

requirements of the conjunction of regulatory agencies.

The WCO has graphically illustrated the processes included in each of these groups as in the example at point 3.2.2. These graphics are included in the WCO Compendium, Volume 2: The Professional Practice Guide.

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Unit summary

•

There are different methods for process modelling, the UML standard being one of the most frequently used.

•

The analysis of processes must take five dimensions into account: the chronology, geography, actors, formalities or legal procedures, and interchanges of information.

•

The WCO Data Model includes the analysis and model of customs procedures

and

processes

included

the

Revised

Kyoto

Convention on the Simplification and Harmonization of Customs procedures, using diagrams of cases of use, activity diagrams and descriptions. •

The business processes of a Single Window environment can be classified into: Registry and Authorization Processes, Requests for Licenses, Certificates, Permits and other Processes; Advance Compilation

Information;

Goods

Declarations,

Cargo

Declarations and Unloading Processes; Transportation Operation Reports.

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Unit IV. Design of single window services

Learning objectives

â&#x20AC;˘

To review some basic aspects to be considered when designing Single Window services.

â&#x20AC;˘

To understand the scope of the various Single Window services and identify key issues to boost their usefulness.

â&#x20AC;˘

To understand the taxonomy of services extracted from the Single Window Compendium published by the WCO and the role of different systems in each of those services.

IV.1. Scope of the Single Window

The Single Window (VU) is not a simple portal or data transmission network that connects the operators with government agencies. The VU should also offer value added services that facilitate the dispatch and release of goods, means of transport and persons. In order to complete an international commercial transaction, both the economic operators and the government need access to a conjunction of trade and transportation regulatory services. Designing the VU utilizing an architecture oriented to services allows the operator to concentrate more

providing

the

services

and

less

the

technical

infrastructure. In this context, a service describes the work required to respond to a necessity, while business processes lay out the steps necessary to provide that service. 79

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Examples

regulatory

Module 3

services

can

the

treatment

transportation declarations, anticipated declarations for the entry or exit of goods, temporary storage declarations, export, import and transit declarations, certification of product origin, inspection of products, issuance of licenses and visas, calculation of duties, risk management coordination, operative controls, shared inspections, orchestration of processes between agencies, shared work flows, etc. The introduction of these services allows the economic operator an integrated vision of his trade transaction.

IV.2. Classification of the Services offered by Single Window

The services offered by the VU can be classified as: â&#x20AC;˘

Information

Services,

offering

integrated

regulatory

information. â&#x20AC;˘

Transaction Services, offering capabilities for processing declarations, dispatching goods, paying taxes and duties, and security management.

â&#x20AC;˘

Integration Services, offering automation and integration capacities with business processes, connectivity with processing systems for the verification of operations, authorizations, licenses,

certificates,

visas

and

permits,

electronic

data

interchanges structured for processing and automatic storage in databases or non-structured for online consultation (images, for example, video or scanned copies of paper or pdf documents). In integration services it is more and more usual to use standard Web Services that allow non-attended, automatic 80

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consultations and interactions between different information systems, which leads to the real orchestration of services. â&#x20AC;˘

Services

transformation,

offering

customs

administrations, regulatory agencies and border controllers new

ways

operate,

introducing

analysis

and

risk

management mechanisms, post-auditing for the release of goods, paperless controls, secure operator programs and customer support.

IV.3. The scope of Single Window Services

The following table represents the taxonomy of services extracted from the Single Window Compendium published by the WCO and the role of different systems in each of those services (as supplier, participant, consultant and informed party). As indicated in that publication, a typology or hierarchy of services such as the one shown is a very useful tool to identify the services currently supplied in

the

region

existing

systems,

the

dependencies

and

interrelationships between them and to prepare a critical route in the creation of a regional VU environment. The differentiation of the systems that provide the service, the systems that intervene in the service, the systems that are consulted and the systems that are informed allow the creation of a network of systems that collaborate with each other to attain their objectives in a more efficient manner.

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Figure 4.1. Taxonomy of services in foreign trade and international transport

Source: In-House preparation based on WCO information.

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A classification of services such as the one presented above allows the services to be organized in non-overlapping categories and hierarchies, while identifying needs for services that should be addressed. This organization is much more valuable and revealing when the different services are broken down into their component elements and the relationships between them established. For example, the service that processes export and import declarations depends on a goods inspections service. For merchandise inspections to take place the inspectors require prior scheduling services for their planning, and so forth. Traditionally, the different public services required to control and support international trade have been offered in a fragmentary manner by different departments, agencies and ministries with little coordination among the various administrations. The nucleus of the Single Window is to be found in orchestrating all these services to offer the user an integrated result. The taxonomy of services assists in laying out the scope of the Single Window, studying the relationships and creating the orchestrations of services that may be required.

IV.4. Aspects to keep in mind in designing Single Window Services

A fundamental aspect of the design of a more adequate Single Window solution is to define the situation desired, the to-bestatement or vision according to the perspective of the experience perceived by the economic operator or transporter.

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That vision will A fundamental aspect of the design of a more adequate Single Window solution is to define the situation desired, the tobe-statement or vision according to the perspective of the experience perceived by the economic operator or transporter.

the

regulatory,

all the

participants in the activities of designing

the

connecting thread. It is important for the public and private agents involved in the design

services

conscious of the value of efficient management,

development

serve

trade

and

processing transport

and

services

international transactions require for the various economic operators. When the conjunction of these services is efficiently developed the predictability and reliability of delivery times is improved and logistic costs reduced. In order to obtain this objective, the design of the Single

Window

services

should

realized

jointly

(with

the

participation of the actors involved), taking into account the entire series of considerations pointed out below.

IV.4.1 Design of Interactions between Operators and the Regulatory Agencies

For the design of Single Window Services it is necessary to understand the interactions of the different users and agents involved with the pertinent regulatory agencies â&#x20AC;&#x201C; what those interactions are, and how and when they take place. All the business processes of the service must be defined with that in mind. Processes that must be performed electronically must be identified, as well as those that cannot. 84

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The sequence in which operations take place must be indicated. Contingency

plans

must

contemplated

for

cases

which

communications or computer systems are not available. The more critical the service offered, the more relevant is this last aspect. In general two types of interactions can be distinguished: the physical and the virtual. The electronic submission of information and its use online is part of the virtual interactions, while the face-toface interactions of the operator with the agencies are part of the physical interaction. When different agencies are involved there should be an important collaboration effort to develop standard, common services and procedures.

The

different

regulatory

agencies

have

different

objectives, priorities risk perceptions. Different agencies define controls in a different way. The benefits of a Single Window Environment of cannot be completely attained so long as the controls of the different agencies involved are not implemented in a coordinated manner. That requires a joint determination of priorities. There are two alternatives for such joint determination of priorities: An integrated system of analysis and risk evaluation can be established with harmonized rules prepared by the different agencies, or separate risk evaluations can be prepared by each of the agencies, with subsequent coordination in the election and implementation of control methods. The Revised Kyoto Convention guidelines provide detailed information on the various types of customs controls. Document controls, physical controls, non-intrusive inspections and sample-taking methods are activities that can be standardized, which facilitates coordination between different agencies.

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Time will always be one of the more important variables and should be regarded as money. Any type of inefficiency that results in delays in the flow of goods directly impacts logistics and transportation costs. The point of departure for design of the various interactions associated with Single Window service is the modelling of business processes. These models establish the bases for the design of functional specifications. The analysis of the complexity of the tasks and capacities of the users can also assist in determining other non-functional specifications. A fundamental aspect in the design of the different interactions that take place during the service is to reduce complexity to the minimum by defining scenarios and establishing routines. Training will also be a key aspect to improving user capacity in virtual as well as physical interactions. Collaboration and joint production by means of incremental information processes Another aspect that should be kept in mind in the design of Single Window services is understanding that the various agents involved in the supply chain contribute value to others by providing the information for which they are responsible at the appropriate time in accordance with the logic of the business process, thus improving the overall efficiency of the logistics chain. The supply chain processes require the interchange of information between the actors involved using business-to-business collaboration platforms that assist the generation and management of the information each of the agents requires, working together.

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In the operations of the international supply chains business-tobusiness

information interchange

especially relevant to

the

regulatory agenciesâ&#x20AC;&#x2122; processing of dispatches and controls. The Single Window philosophy of avoiding duplication of information and repeated submissions of information in different instances should assume the form of defining clear processes and services in which each of the parties involved contributes the information for which it is responsible to the system, in multiple incremental transmissions, following the logic and the timing of the business process. The following diagram represents the logical order of information generation in the supply chain: Figure 4.2. Logical order of information generation in the supply chain

Source: World Customs Organization.

It should be kept in mind that the preparation of goods dispatch declarations represents one of the operatorsâ&#x20AC;&#x2122; greatest expenditures of time, effort and cost, so cooperation between agents in generating and managing this information can generate important benefits. 87

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In defining Single Window services, the regulatory agencies can provide the users with interactive tools that assist them in this process. Each participant in the supply chain should ensure that the information interchanged, the information for which he is responsible, is correct, precise and submitted in a timely manner. Any interchange of information with these attributes contributes to the quality and reliability of data and saves time and money for all the parties along the supply chain, beginning to end. On occasion these interchanges of information can be formalized by the establishment of Service Agreements between the parties involved, specifying agreements and establishing responsibilities for non-compliance. Regulatory agencies have even established formal programs that certify operators that comply with the conditions established as â&#x20AC;&#x153;authorized economic operators.â&#x20AC;?

IV.4.2. Importance of Visibility and Transparency in the Design of Single Window Services

In the design of Single Window services the transparency of the information (always respecting the confidentiality and security of the information, an aspect dealt with in Course Module 4) is important, providing the different parties involved the information they require at the appropriate time. Transparency can be obtained by the application of various design concepts such as:

Single Window for Foreign Trade, 5th Edition

•

Module 3

Clear and simple publication and access to regulatory information (tariff

and

non-tariff

requirements).

The

presentation

and

publication of the information should be in a form easily utilized by automatic systems, and without ambiguities. •

Facilitation of user interaction (with interactive tools of the wizard type that guide the user, for example).

•

A software wizard is a user interface presented in a sequence of dialogs that guide the user through a series of well-defined steps. Tasks that are complex, infrequent or unfamiliar to the user can be accomplished more simply by utilizing this type of user interface.

•

User access to regulatory agency decisions and decision registry.

IV.4.3 Auditing and Analysis Capacity of Various Service Interactions and Events

Auditing and analysis capacity is another aspect to be considered in the design of Single Window services. Legal conditions and auditing protocols the agencies and other agents involved have established and agreed to may require certain auditing and analysis capabilities. In the design of Single Window services it is necessary to know in advance what such auditing and control requirements are in order to be able to design services and support systems in a way that facilitates auditing processes subsequent to transactions, events, documents, etc.

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In a Single Window Environment in which processes are automated and paper documents are avoided, auditing and control capacity need not be reduced by a lack of paper. On the contrary, going paperless can improve the facility and agility of auditing and control processes.

IV.4.4

Interoperability

the

Design

Single

Window

Services

The Single Window concept is based on the efficient interchange of data and information between the

operators and government

agencies on the one hand (business-to-government), and between the individual regulatory agencies on the other (government-togovernment). For this to occur it is necessary for the regulatory agenciesâ&#x20AC;&#x2122; different systems, the operatorsâ&#x20AC;&#x2122; systems and the systems of the other agents involved to be interoperable with each other. Interoperability permits communications between different computer applications running on different technological platforms by means of the

use

different

communications

protocols.

The

interoperable the systems are among themselves, the lower the effort and cost of integration to interchange information. Since the information systems of the different regulatory agencies have

developed

independently

and

different

times,

the

interoperability between these systems can sometimes be more complex. Generally, the older the system is the more problems it presents for interoperability.

Single Window for Foreign Trade, 5th Edition

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At the present time the majority of systems are developed with vision and

open

architectures

that

facilitate

system

interoperability,

reusability and scalability. With the object of attaining this interoperability, the design of information systems following the paradigm of Service Oriented Architecture (SOA) appears to be the most appropriate for being able to focus more on services and the level of service offered than on the technical

infrastructure

(servers,

storage,

operating

systems,

programming languages, technical services, etc.). Figure 4.3. Design of Single Window services

Source: World Customs Organization

This

service-oriented

vision

Single

Window

encourages

collaborative public agency focus that can help neutralize the negative effect agencies participating in Single Window sometimes perceive as a loss of identity to the Single Window operator.

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The services paradigm permits passing more easily from the Single Window concept stage to the implementation stage, utilizing the disciplines of establishing the services taxonomy. It also permits passing from the interactive and collaborative design of services, architecture In the majority of occasions the greatest effort from the point of view of interoperability is semantic interoperability.

oriented

services

(SOA) and the management of the level of service offered. In the majority of occasions the greatest effort from the point of view of

interoperability

interoperability.

semantic

Although

the

different regulatory agencies handle the same type of information on products, locations, means of transport etc., semantic differences cause one agencyâ&#x20AC;&#x2122;s information to not be directly useful to other agencies. The elimination or reduction of these semantic differences is a key aspect of the design of Single Window services. WCO guidelines for the harmonization of data in Single Window environments can assist in the development of interoperable data sets than can be used by the parties involved. (Course Module 4 focuses on the concept of interoperability and goes into all these concepts in more depth).

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IV.4.5 Being Sure to Meet User Expectations

In the process of designing Single Window services formulas must be found to guarantee that the services designed fit the users’ needs and expectations. Some of the methodologies utilized to attain this objective are: •

The documentation of cases of use. Cases of use are more and more utilized to gather and communicate functional and nonfunctional

requirements

detailed

manner.

The

documentation of cases of use is usually accompanied by simple diagrams explaining information and decision flows. •

The documentation of concrete cases of users or histories of users. These are brief descriptions in the form of a few paragraphs outlining the concrete objectives of a user in a specific case.

•

The

development

service

proposal

blueprint.

blueprint is a representation or model of the service as a business process. It defines a series or sequence of virtual and physical interactions. Information can be included for each of the interactions: time of execution, wait time, risks or weak points, etc. Flow charts of processes can be utilized for its representation.

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Module 3

Figure 4.4. Example of services proposal

Source: World Customs Organization.

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Bibliography

The

following

the

bibliography

and

support

documentation

consulted in the preparation of this Module: •

APEC. (2009). Single Window Implementation Guide.

•

CAPTAC-DR.

(2011).

Revisión

compatibilización

procesos. Autoridad Portuaria de Valencia. Seminario y experiencias de ventanilla única electrónica. [Review and Reconciliation of Processes. Port Authority of Valencia. Electronic Single Window Seminary and Experiences]. Antigua: Guatemala. •

Inter-American Development Bank (IDB). (2010). Electronic Single Window. Coordinated Border Management – Best Practices Studies. External Author.

•

Inter-American Development Bank (IDB). (2011). Estudio de Facilitación del Comercio en el proyecto Corredor del Pacífico

Países

Mesoamericanos.

Informe

Técnico

Componente III Ventanillas Únicas. [Trade Facilitation Study in the Pacific Corridor and Mesoamerican Countries. Componente III Single Window Technical Report]. •

Michael

Hammer

James

Champy.

(1994).

Reingeniería

[Reengineering]. Grupo Editorial Norma. •

Pierre-Alain Muller. (1997). Modelado de objetos con UML. [Modeling Objects with UML] Ediciones Gestión 2000.

•

World Customs Organization. (2007). SAFE Framework of Standards.

Single Window for Foreign Trade, 5th Edition

â&#x20AC;˘

Module 3

World Customs Organization. (2011). The Professional Practice Guide, Chapter 2 WCO Compendium..

â&#x20AC;˘

World Customs Organization. (2011). WCO Compendium. How to Build to Single Window Environment, Chapter 1.