Single Window for Foreign Trade, 6th Edition MODULE 6: Lessons learned and cases of reference
1
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Single Window for Foreign Trade, 6th Edition
Module 6
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, IT and Communications Director in Valenciaport Foundation. The study case on Trinidad and Tobago has been updated for the 6th edition of the course by Frank Holder, Customs and Trade Consultant 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)
6th Edition 2017
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
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Table of contents Table of contents ......................................................................... 2 Index of Figures .......................................................................... 5 Glossary ..................................................................................... 6 Introduction .............................................................................. 10 Aim of the Module ...................................................................... 14 Learning-oriented questions ........................................................ 14 Unit I. Identification of key aspects for a single window environment in the region ............................................................................. 16 Learning objectives .................................................................. 16 I.1. The WCO’s Single Window Concept ..................................... 16 Unit summary ........................................................................... 25 Unit II. Initiatives to facilitate trade in Central America and the Caribbean ................................................................................. 27 Learning objectives .................................................................. 27 II.1. Operational or proposed single windows in Central America and the Caribbean ......................................................................... 27 II.2. Harmonized Customs Legislation in the Caribbean Community (CARICOM) Region .................................................................. 37 II.3. TIM and ACIS as a SW initiatives in Central America and the Caribbean respectively ............................................................. 38 II.4. The Proposed Advanced Cargo Information System in the CARICOM Region ..................................................................... 44 II.5.
Digital
Electronic
Certification
in
the
Single
Window
environment ........................................................................... 48 II.6. Functional necessities of SWs and CMSs in the MCCA and CARICOM................................................................................ 54
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Unit summary ....................................................................... 66 Unit III. Status of MCCA Single Window Initiatives ........................ 67 Learning objectives .................................................................. 67 III.1. El Salvador: SW and CMS ................................................ 67 III.2. Nicaragua: SW and CMS .................................................. 74 III.3. Costa Rica: SW and CMS ................................................. 78 III.4. Trinidad and Tobago: SW and CMS ................................... 84 Unit summary ....................................................................... 96 Unit IV. International experiences in creating a Single Window environment .............................................................................. 97 Learning objectives .................................................................. 97 IV.1. Introduction .................................................................... 97 IV.2. Republic of Korea ............................................................ 98 IV.3. Spain ........................................................................... 103 IV.4 Sweden ......................................................................... 109 V.5. Senegal ......................................................................... 110 IV.6. Mauritius ...................................................................... 111 Unit summary ..................................................................... 113 Unit V. Toward an interoperable single window environment ........ 114 Learning objectives ................................................................ 114 V.1. Introduction ................................................................... 114 Unit summary ..................................................................... 122 Bibliography ............................................................................ 123
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Index of Figures
•
Figure No. 0.1. Software components of the Mesoamerican Integration Corridor.
•
Figure No. 2.1. Situation of regional SW initiatives.
•
Figure No. 2.2. Single Window for cargo manifests in the MCCA.
•
Figure No. 2.3. Traceability of transit operations with TIM.
•
Figure No. 2.4. Border posts and state of TIM implementation (June 2011).
•
Figure No. 2.5. Basic axes of TIM.
•
Figure No. 3.1. Export-import SW between Guatemala and El Salvador.
•
Figure No. 3.2. Global connectivity scheme of the Single Customs Declaration System.
•
Figure No. 3.3. The functions of the CENTREX
•
Figure No. 3.4. Organizations involved in a SW system: Level of Influence- Role
•
Figure No 3.5. Reduction in Processing times
•
Figure No. 3.6 Proposed Interventions for the SW
•
Figure No. 4.1. Linkage of the Single Window and UNI-PASS
•
Figure No. 4.2. Benefits from Single Window establishment in Korea
•
Figure No. 4.3. Establishment of communication channels between public organs.
•
Figure No. 4.4. Port community service systems.
•
Figure No. 5.1. Goods declarations and cargo declarations along the commercial flow.
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Glossary
ACI: Advanced Cargo Information. AEAT: Spanish Tax Administration Agency. AEO: Authorized Economic Operator. ALAVU: Association of Foreign Trade Single Windows. ANIEX: Nicaraguan Association of Industrial Exporters. APEN: Association of Export Producers of Nicaragua. API: Advanced Passenger Information. ASYCUDA: Automated System for Customs Data B2B: Business-to-Business. B2G: Business-to-Government. BAN: Central Bank of Nicaragua. BDC: Business Development Company. BPR: Business Process Reengineering. CAPENIC: Chamber of Fishing of Nicaragua. CARICOM: Caribbean Community CARTAC: Caribbean Regional Technical Assistance Centre. CAUCA: Central American Uniform Customs Code. CBTT: Central Bank of Trinidad and Tobago. CCLEC: Caribbean Customs Law Enforcement Council. CED: Customs and Excise Department. CEI: Center for Exports and Investments.
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CENTREX: Single Window for the processing and registry of exports. CIEX: Import and Export Processing Centre CMI: Mesoamerican Integration Corridor. CMS: Customs Management Systems. CNPE: National Commission for the Promotion of Exports. COMEX: Ministry of Foreign Trade. COMRIEDRE: Council of Ministers Responsible for the Economic Integration and Regional Development of Central America. COSEP: Superior Council of Private Enterprise. CSO: Central Statistical Office. CWC: Cricket World Cup. DGA: General Directorate of Customs Services. DUCA: Central American Single Declaration. ESW: Electronic Single Window. FAUCA: Single Central American Customs Form FTSW: Foreign Trade Single Window. G2G: Government-to-Government. ICT: Information and Communications Technologies. IDB: Inter-American Development Bank. ISCM: International Supply Chain Management. KCS: Korean Customs Service. KITA: Korean International Trade Association. LAC: Latin America and the Caribbean. MAFIC: Ministry of Industrial and Commercial Promotion. MAJOR: Ministry of Agriculture and Forestry.
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MARINA: Ministry of Natural Resources. MCCA: Central American Common Market. MCPC: Ministry of the Treasury and Public Credit. MNS: Ministry of National Security. MOCIE: the Ministry of Commerce, Industry and Energy. MOF: Ministry of Finance. MTI: Ministry of Trade & Industry. NTFLC: National Trade Facilitation and Logistics Committee. OGA: Other Government Agencies. ORBUS: Single Window of Senegal. PACE: Business Customs Compliance Program. PCAU: Post Clearance and Audit Unit. PROCOMER: Foreign Trade Promoter. RECAUCA: Code Regulations. RIOE: Integrated Registry of Economic Operators. RMU: Customs Risk Management Unit. RTGS: Real Time Gross Settlement system. SAD: Single Administrative Document. SEW: Single Electronic Window. SIDUNEA: Automated System for Customs Data. SIECA: Central American Secretariat of Economic Integration. SIFTSW: Integrated Foreign Trade Single Window System. SITRADE: Export Procedures System. SW: Single Window. TICA: Information Technology for Customs Control. 8
Single Window for Foreign Trade, 6th Edition
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TIM: The Mesoamerican International Merchandise Transit Program. TTBizLink: Trinidad and Tobago Business Link – Business Made Easy TTBS: Trinidad and Tobago Bureau of Standards. UN/CEFACT: United Nations Centre for Trade Facilitation and Electronic Business. UN: United Nations. UNCTAD: United Nations Conference on Trade and Development. WCO: World Customs Organization. WTO: The World Trade Organization.
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Introduction
The last module of the course will attempt to put a value on the knowledge acquired in previous modules and contribute to a more practical vision in regard to the application of a regional Single Window environment as a tool to facilitate foreign trade, identifying and analysing key success factors in different experiences and implementing a review of actual cases of reference in regard to single windows in Central American reality. The Trade Facilitation Study in the Pacific and Mesoamerican Countries Corridor Project undertaken by
the
IDB
and
completed
in
September
2011
was
utilized
extensively in the development of this module. The Mesoamerican International Merchandise Transit Program (TIM) merits special mention. Its Merchandise Transit System is at an advanced
stage
of implementation.
TIM
incorporates
a
single
document that brings together the information needed by all the agencies along its route with a unified, coordinated border control procedure, with one single instance and one country intervening. This procedure provides for a traceability system with anticipated information and risk analysis systems that support the operation. With respect to transit operations, the TIM system is an interregional Mesoamerican
Single
Window
system.
It
is
configured
as
a
cornerstone for integration of the different national single windows in the region. An integration process of national single windows should consider recognizing and combining the registries of the economic operators of each one of the countries.
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The module proposes to evaluate the worth of an Integrated Registry of Economic Operators (RIOE, from its Spanish initials) that also provides a certified safe operator scheme within the guidelines of the Authorized Economic Operator (AEO) programs and would support the strengthening of border control and security by introducing mechanisms to establish a more computerized cross border trade. Recently, the Inter-American Development Bank (IDB) adopted a new strategy1 designed to reinforce the process described above. Its objective is to increase and focus the IDB’s contribution to the regional and global competitive integration of Latin America and the Caribbean. The central message of this strategy is particularly relevant to the purposes of this module. It sets forth the need to simultaneously support integration with software (policies and regulatory frameworks) and hardware (infrastructure investments), ensuring coherence between national and regional interventions. Thus it is perceived that although investments in software generally require
fewer
resources
than
investments
in
hardware,
such
investments are determinants in imparting more efficiency to the infrastructure developed. The
following
figure
shows
the
application
of
four
software
components that will be described in this module and which contemplate applying measures to facilitate trade and increase control
and
security
in
support
of
the
hardware
component
constituted by the infrastructure required in the region such as ports in the Mesoamerican Integration Corridor.
Estrategia Sectorial de Apoyo a la IntegraciĂłn Competitiva Regional y Global [Sector Strategy of Support to Competitive Regional and Global Integration.] Inter-American Development Bank. March 2011. 1
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Figure No. 0.1. Software components of the Mesoamerican Integration Corridor
Source: IDB
Single Window initiatives and regional interoperability are among those components. These measures attempt to advance toward the harmonization of data and procedures to reduce processing steps in trade, thus facilitating the interchange of data at the national and regional levels.
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The creation of an interoperable single window environment is configured as a key element for the integration of the rest of the initiatives to facilitate trade. The concept of a safe trading partner within
the
Authorized
Economic
Operator
program
and
the
achievement of a secure supply chain, introducing advanced control measures in border crossing posts, need to be a part of the architecture and services offered by the interoperable single window environment. On the other hand, TIM can be considered a successful regional SW experience for international transit operations. Thus, in 2008, a pilot program was developed on the TIM platform between Honduras, El Salvador and Guatemala, extended later, in 2010-11, to the border with Panama. TIM fulfills the SW principles and attains the purposes sought in facilitating trade as well as control. The growth of foreign trade in Latin America and the Caribbean has demonstrated
the
region’s
deficiencies
for
competing
in
the
international arena. The high transaction costs, the lack of infrastructure, the poor condition
of
the
transportation
network,
the
complexity
and
duplications in operating procedures as well as highway and logistic safety factors substantially increase times for the movement of merchandise to the detriment of competiveness and the efficacy of control over foreign trade. It becomes crucial to strengthen port and highway infrastructure and the performance of highway logistics, along with implementing facilitation and control measures to eliminate obstacles at border crossing points to guarantee trade flow and offer supply chain security, which will redound to an increase in the competitiveness of regional exports and productivity in general.
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Single Window for Foreign Trade, 6th Edition
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Aim of the Module
•
One of the objectives of the module consists on reviewing the status of initiatives related to Single Windows and improvements in the national Customs Management Systems in Central American countries.
•
The other objective is to favour dialog in regard to possible operating necessities, standards and technologies that could be sought to attain an integrated Single Windows environment that, from the national level, would allow completing and accelerating transit, import and export border clearances while at the same time facilitating control and review of goods by customs and regulatory control organs, eliminating almost all manual handling at the border.
Learning-oriented questions
•
Why is Customs as a border agency regarded as a key player in the Single Window?
•
Why is it important to have other governmental agencies (OGA) that are involved with the clearance of goods at the border fully automated?
•
What are the phases of the Single Window for border regulation?
•
What are the services shared in a Single Window?
•
Why it is important not to force the same operator to repeatedly declare the same data to different agencies?
•
What is the importance of political commitment to the single window?
•
Why do most countries view the implementation of the SW as important to the success of trade?
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Module 6. Lessons learned and cases of reference Unit I. Identification of key aspects for a single window environment in the region Unit II. Initiatives to facilitate trade in Central America and the Caribbean Unit III. Status of MCCA Single Window Initiatives Unit IV. International experiences in creating a Single Window environment Unit V. Toward an interoperable single window environment
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Single Window for Foreign Trade, 6th Edition
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Unit I. Identification of key aspects for a single window environment in the region
Learning objectives
•
To comprehend the efforts of the WCO in promoting a Single Window to its members.
•
To recognise the importance of trade facilitation to the movement of goods through a Single Window
I.1. The WCO’s Single Window Concept
The WCO considers the SW concept as a key component of Coordinated Border Management, a term it utilizes to describe global efforts to rationalize and facilitate border procedures and management systems. The key aspects described in the chapter have been extracted from the World Customs Organization compendium on how to construct a Single Window environment. The development of automated management systems within customs administrations and border regulatory and protection agencies is a key aspect for the adoption of facilitative measures simultaneously offering substantial improvements in the objectives sought in regard to collection functions, social protection and promotion of trade.
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Nevertheless, while these important developments are an effect of the introduction of new technologies and, in particular, of information and communications technologies, they are also due to the adoption of
new
philosophies
and
architectures
of
management
and
governance to provide greater degrees of efficiency and efficacy in international trade practices. As mentioned in the first module of the course, the Single Window concept is one of these philosophies of governance in which the traditional structures of government are transformed to better serve the necessities of its citizens, business and the economy. Under the Single Window concept the procedures established by the different government agencies are transformed into integral and integratable services offered by the government and derived from simplifying procedures that will take place in a more efficient and coordinated manner substantially decreasing the cost of compliance with
regulations.
The
process
of creating
a
Single
Window
environment is based on an interactive transformation that should involve various initiatives, some new but others already consolidated or underway. They have to be appropriately integrated into the single window environment, initially by a rigorous work of reengineering, followed by continual improvement. The Single Window environment (SW) is developed to facilitate the complex
processes
that
regulate
the
movement
of
goods,
conveyances and people across country borders. Traditionally in LAC (Latin America and the Caribbean), these single windows are known as “FTSW� or Foreign Trade Single Window (FTSW) and offer the facility of a simplified interface between the economic operators and the government regulating agencies as a response to inherent problems related to costly inefficiencies, a lack of coordination between agencies, confusing administrative procedures and opaque documentation that make up a slow, complex bureaucracy.
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FTSW is a concept already consolidated in LAC in general. The concept is now in the implementation phase in most of the countries in the form of different SW initiatives that will be characterized in the following chapter along with the International Merchandise Transit System (TIM), which can be considered a case of successfully implementing a Single Window at the regional level integrating the customs administrations of the Mesoamerican countries. It
is
suggested
that
the
following
aspects
be
considered
in
characterizing a Single Window: •
Number of existing SW systems in the country and level of interoperability between them A SW system does not limit the existence of other SW systems within the same country so long as they complement each other and comply with the principle of constituting a single point of entry for the information required of the economic operators. For example, it is perfectly feasible to find a Foreign Trade Single Window and a Port Single Window. National single windows for export, import and transit operations that can operate separately can also be observed in the region, and some of them go so far as to operate on the regional level (as is the case of TIM). A fundamental aspect in cases of different existing single windows is that an attempt should be made for them to effectively integrate all the processes which could require their joint intervention.
•
Leader and Operator or orchestrator of the SW Depending financial
on
political
capacity
and
support, knowledge,
competencies, different
necessity,
organizational
solutions can be found in the constitution of each single window. 18
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It is possible to distinguish between a single window leader or promoter and a single window operator or orchestrator. Moreover, various agencies, institutions or businesses in each country could be charged with playing those roles. •
Agencies and regulatory organs that participate in the SW These are agencies empowered to examine or authorize the movement
of goods
crossing
the
borders. Among
these
agencies are customs administrations and regulatory agencies or organs concerned with human, plant and animal health, as well as control of product origins and quality. Also among the regulatory and border protection agencies are those authorities charged with control of people and vehicles that cross borders. Usually there is little information sharing between these agencies. Situations occur in which the same economic operator must present the same information to each one of these agencies and undergo various inspections required at different times. In addition, this situation weakens the risk evaluation systems implemented by the various agencies due to the fact that such systems are based on individual and often divergent information sources, instead of using common, more reliable information received by the government from each one of the economic operators. •
Existence of collaborative logistics systems and level of collaboration with the single window Logistics
collaboration
systems,
also
known
as
cargo
community systems, have been created in many countries.
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Single Window for Foreign Trade, 6th Edition
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These systems may provide a common interface for all those who participate in the port logistics community, in which case they are known as port community systems or airport logistics community systems. It is usual for the customs administration, regulatory and border control agencies to participate in these systems,
as
well
as
the
authorities
who
manage
the
infrastructure (for example port authorities). •
Level of connectivity between different agencies and between customs administrations Collaboration between different agencies in the same country and even between the administrations of different countries is more and more common in international trade. Thus we can find this type of collaboration in TIM, where the sending customs administration receives confirmation of the finalization of transit in the destination customs administration in order to update its records. Other examples are the recognition of certificates, licenses and permits produced in one country to be utilized in another. Information is supplied across borders before the exit or arrival of goods, which improves border security and speeds the flow of goods.
•
Phases of the single window for border regulations In cases in which there is an existing single window project, one of the following three phases can be identified: o
Concept: There is a desire to work together; a process of diagnosis and consultations with the participants has begun with an eye to generating strategic planning and political convergence.
o
Initiation: There is some sort of political mandate, with structures to provide support, program management and projects have been formulated. 20
Single Window for Foreign Trade, 6th Edition
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Module 6
Environment: Projects have been implemented, single window services are operational and the process of change management,
performance
evaluation
and
continual
improvement has begun. The
stages
of
design,
construction,
implementation
or
operation can be identified within this phase. •
Maturity level of the systems of participating organs and agencies The single window can be constituted as a single centralized computer system utilized by all the control and regulatory agencies or as a network of applications that work with each other by means of common interfaces. In either case it is important
to
characterize
these
management
systems,
especially the customs management system from different perspectives; o Use of modern risk management practices o Minimization of the data requested for clearance o Use of safe economic operator programs o Audits of goods released o Cooperative
agreements
with
agencies
to
ensure
compliance with regulations The single window has an impact on how customs provides services for the regulation of international trade. Customs plays a key role in the management of the international supply chain, providing services to facilitate trade and control, maintaining sources of tax collection for the country such as duties, imposts and fees and generating statistics to support the creation of trade policies.
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Services offered by the customs management system are determining factors in facilitating trade and may be classified in the same manner as the services offered by the single window (information, transaction, integration and transformation) •
Services shared in the single window The single window must not be seen as a simple portal or data transmission network that connects operators with government agencies. The SW must also offer added value services that facilitate the clearance and release of goods, conveyances and persons. In order to complete an international trade transaction the economic operators as well as the governments need to access a conjunction of regulatory trade and transportation services. Designing a SW with a service oriented architecture allows concentration to be centered more on the services to be provided than on the technical infrastructure. Examples of regulatory services can be the treatment of transportation declarations, declarations prior to the arrival or departure of goods, declarations of temporary storage, declarations of export,
import
and
transit,
product
certifications
and
inspections, issuance of licenses and visas, rate calculations, coordinated risk management, shared operating controls and inspections, orchestration of processes between agencies, shared work flows, etc. The introduction of these services allows the economic operator to have an integrated view of his trade transaction. The services offered by the SW can be classified as: o Information services, offering regulatory information in an integrated manner.
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o Transaction services, offering the capacities to process declarations and performing the clearance of goods, payments of taxes and duties, and security management. o Integration
services,
offering
the
capacities
to
automate and integrate business processes, connectivity with systems to process licenses and permits, structured and non-structured electronic data interchanges or the use of web services that allow unattended, automatic interactions between different information systems. o Transformation
services,
offering
new
forms
of
operation on the part of customs administrations and regulatory
and
border
control
agencies,
introducing
mechanisms for risk analysis and management, postaudits on the release of goods, paperless control, safe operator programs and customer support. •
Harmonized
declarations
and
responses
with
the
agencies and regulatory organs The single window has the capacity of constituting the single point of entry for all the information required from the economic operators. It is important to remember that the existence of a single point of entry does not mean the submission of all the information about the operation in one data transmission. It is often advisable to send in the information gradually, in accordance with the business logic of operation being declared. One aspect that must be taken seriously is avoiding forcing the same operator to repeatedly declare the same data to different organs. This does not mean that other economic operators do not have to make their own declarations;
in
that
case,
it
is
possible
to
require
complementary information. 23
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For example, the transportation operator must declare the goods he brings into the country (summary declaration of temporary storage or cargo manifest upon entry) and the importer must declare the goods he imports and nationalizes (declaration of goods imported). It is then up to the ground transportation operator to remove the goods that have been nationalized. Obviously there is a relationship between one declaration and the other. The matching of information from the two declarations offers complete traceability and control of the operation, checking the count of goods brought in against the goods withdrawn from customs, offering guarantees that no more goods were brought in or released than were imported.
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Single Window for Foreign Trade, 6th Edition
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Unit summary
In this unit we looked at the views of the WCO in implementing a Single Window. The theme focused on the importance of Customs and other government agencies to the SW operations. As a border agency the Customs must make all efforts to simplify its procedures and facilitate trade. It is therefore suggested that the following aspects be considered in formulating a SW:
Number of existing SW systems in the country and level of interoperability between them: whilst they can be number of single windows in a country they must complement one another and integrate all the processes.
Leader and Operator or orchestrator of the SW: different organizational solutions can be found in the constitution of each single window and it is possible to distinguish between a single window leader or promoter and a single window operator or orchestrator.
Agencies and regulatory organs that participate in the SW: other governmental agencies besides the Customs also have an interest in examining goods.
Existence of collaborative logistics systems and level of collaboration
with
the
single
window:
customs
administration, regulatory and border control agencies must participate in logistics collaboration systems, also known as cargo community systems, as well as the authorities who manage the infrastructure.
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Single Window for Foreign Trade, 6th Edition
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Level of connectivity between different agencies and between customs administrations: Collaboration between different agencies in the same country and even between the administrations of different
countries is more
and
more
common in international trade. TIM in Central America is a fine example of this level of collaboration.
Phases of the single window for border regulations: in cases in which there is an existing single window project, one of the following three phases can be identified: (I) Concept, initiation and environment.
Maturity level of the systems of participating organs and agencies: The single window can be constituted as a single centralized computer system utilized by all the control and regulatory agencies. It is important to characterize these management systems, especially the customs management system from different perspectives.
Services shared in the single window: the SW must offer added value services that facilitate the clearance and release of goods, conveyances and persons.
Harmonized
declarations
and
responses
with
the
agencies and regulatory organs: a single point of entry does not mean the submission of all the information about the operation in one data transmission. For example the transport operator and the importer will make different declarations to different agencies.
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Single Window for Foreign Trade, 6th Edition
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➢
Unit II. Initiatives to facilitate trade in Central America and the Caribbean
Learning objectives
•
To be aware of the initiatives to have harmonized procedures and legislation in Central America and the Caribbean
•
To review the efforts to have regional and national single windows
•
To analyse the measures taken to exchange information across the borders in the Central American and Caribbean regions.
II.1. Operational or proposed single windows in Central America and the Caribbean
The Single Window (SW) is, simultaneously, a facilitating tool that reduces transactional costs and an integrated information centre that feeds risk analyses information and improves controls on foreign trade. An interoperability network is established by the SW between national state agencies and the private operators who participate in each country’s international trade transactions. The intent of this chapter is to characterize the Central American countries’ single window initiatives by means of the information available in studies and recent events developed in regard to SW and from the information available in the official web sites of those initiatives. The CMS [National Customs Management Systems] will also be analysed in detail as a fundamental Single Window component.
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In the same manner, the TIM (Mesoamerican International Transit) system will be analysed from the point of view of a successful case of regional SW that has managed to greatly facilitate international transit operations in the countries of the Central American region by utilizing a single procedure, a single document and a single system to manage transit operations. In general, all the Central American countries have created or are in the process of developing an initiative related to a Single Window environment. A consolidated Single Window environment for exports and imports can already be identified in the cases of Costa Rica and Colombia. In general, the will of the region to become integrated and begin information interchanges between countries is obvious. However, there are still important challenges in field of governance and alignment of SW initiatives to be addressed in the different spheres, beginning with politics, followed by regulatory adjustments and technical innovations. Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama, along with the Dominican Republic 2, are working together on facilitating foreign trade from the regional point of view and have established important accords such as the creation of an Association of Foreign Trade Single Windows (Spanish initials: ALAVU), increasing electronic information interchange, situational analysis, advances in each country’s laws on digital signatures and the creation of an information unit on procedures, requirements, non-tariff barriers, certifications, treaty requirements, etc.
Ventanillas Ăšnicas de Comercio Exterior (VUCE) en AmĂŠrica Latina y Caribe: avances y retos pendientes [Foreign Trade Single Windows (VUCE) in Latin America and the Caribbean: Advances and Pending Challenges]. 2
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Figure No. 2.1. Situation of regional SW initiatives
Source: IDB
CAUCA as the base for a SW at the MCCA regional level and the Harmonised Customs Laws at the CARICOM regional level
The Central American Common Market (MCCA) is a priority interest in Central America since regional integration is the key to achieving development. The Central American countries are attempting to harmonize their common foreign duties, as well as their technical regulations and health measures to negotiate with third parties as a solid trading bloc. The MCCA is made up of Guatemala, El Salvador, Honduras, Nicaragua and Costa Rica, ruled by the 1960 Treaty of Managua and its modifying protocols. In April 2011 Panama presented a proposal to join the MCCA and is now in the process of negotiating an incorporation protocol. 29
Single Window for Foreign Trade, 6th Edition
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The member countries of the Central American Common Market (MCCA) have a Single Customs Procedures Manual [Manual Único de Procedimientos Aduaneros] legally based on the Central American Uniform Customs Code [Código Aduanero Uniforme Centroamericano (CAUCA)] and Code Regulations (RECAUCA). The objective is to clarify and harmonize foreign trade customs operations for uniform application in each of the Customs services of the Central American countries. The Single Customs Procedures Manual, the CAUCA and the RECAUCA on which it is based, constitute a basic element on which to construct relationships between national Single Windows at the regional level. At the same time the particularities of the countries’ respective customs laws and regulatory applications must be respected. The procedures described in the manual are grouped in accordance with the following themes, which give an idea of the complexity inherent in the process of harmonizing processes: •
Prior Examination.
•
Reception, Loading and Unloading Goods.
•
Entry or exit through a different customs facility.
•
Transferring.
•
Reshipping.
•
Temporary Goods Storage.
•
Definitive Imports.
•
Definitive Exports.
•
Replacement of Goods.
•
International Overland Customs Transit.
•
Control of incomplete transit.
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Single Window for Foreign Trade, 6th Edition
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•
Interregional Customs Operations of export and import.
•
Temporary importation with re-exportation in the same state.
•
Request for time Extension of temporary import.
•
Control of packaging and transportation elements.
•
Temporary Admission for active improvement.
•
Customs Warehousing Regime.
•
Free Zone.
•
Temporary Export for re-importation in the same state and for passive improvement.
•
Re-importation.
•
Re-exportation.
•
Rapid or Courier Delivery.
•
Travellers’ Baggage.
•
Household Goods.
•
Abandonment, Auction and other forms of disposition of goods.
•
Reclaiming tacitly abandoned goods.
•
Destruction of goods under customs control.
•
Registry of transportation operators.
•
Temporary imports of tourist’s automotive vehicle.
•
Cancelation declaration of vehicle entry by tourist in customs on exit.
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Some MCCA member countries have established “peripheral customs offices� on the borders of the common customs territory where destination country officers are located so users can carry out certain procedures. After a summary review of the manual of procedures it may be seen that these procedures do not differ substantially from those applied in other countries. Nevertheless, there are some details that, with improvement and computerization, could provide important foreign trade facilitation. It is notable that the Single Customs Procedures Manual still contains many manual verification, control and annotation processes with intensive use of paper. The introduction of computerized processes can permit greater automation and control and, in consequence, reduce the valuable personnel time consumed in these processes. Examples
identified
in
these
cases are
operations
verification
processes with respect to information declared, time period, quantity and weight controls. Why not use computer techniques to maintain these controls? As observed in the procedures manual, in some cases this option is already mentioned, others continue to be restricted to the use of paper. Some interesting examples extracted from the manual are described in the following figure:
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Figure No. 2.2. Single Window for cargo manifests in the MCCA
Source: IDB
IE A particularly relevant MCCA case is the international customs overland transit that appears in the Single Manual of Customs Procedures. It describes the procedures to be followed in the customs office of departure, in the transit customs office and in the destination customs office. The international transit operation can begin after the reception and review of the cargo manifests upon entering the customs territory. In this case, the operator responsible for prior transportation, the shipping agency or, as the case may be, the representative of the transportation operator, must present the cargo manifest information in electronic and physical form, notifying the destination customs of the arrival of the means of transportation.
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In addition, the customs officer at the point of departure must verify adequate security of the means of transportation and of the corresponding security provisions and affix the appropriate customs office seal. For its part the agent responsible for transportation (the transportation operator or shipping agent) or its representative, must electronically transmit the DTI (Declaration of International Transit). Some countries may also require a petition for temporarily importing the container or means of transportation. Through the declaration, the customs officer must verify the documentation and proceed to discharge the cargo manifest manually or electronically. Before the departure, the customs officer must physically verify the unit of transportation (i.e: closure arrangement, the placement of customs seal and the security of the unit to avoid the introduction and removal of goods, among other things) and, depending on the result of the selectivity carried out, can call for physical inspection of the merchandise, the results of which must be noted in the DTI. At the time of departure, the customs officer must effect confirmation, verifying the exit documentation (including any notes) and the seal, retaining a copy of the DTI. In each customs office of transit, the customs officer in the binational customs office verifies the documentation; customs seal number and identification of the status of the means of transportation. A digital reader can be used to read the bar code of the DTI or the seal to record the arrival. In the case of continuing transit, electronic notification of the arrival allows the following country of passage or final destination transit control.
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The destination customs officer verifies the documentation, customs seal number and identification of the status of the means of transportation. Those can be accomplished in a warehouse pending the assignment of a new customs regime, and informs the customs office of departure of the completion of the international transit.
IE Another case of interest is found in intra-regional export and import customs
operations
Formulario
Aduanero
transmitted Ăšnico
electronically
Centroamericano
by
means
(FAUCA)
of
a
[Single
Central American Customs Form or Central American SAD – Single Administrative Document], which can be utilized by exporters directly or through the Single Window. This procedure is presently in operation, for example, in Guatemala and El Salvador. FAUCA is an evolutionary advance toward a Central American Single Declaration (Spanish initials: DUCA) that includes the TIM formula. The intention of the DUCA is to establish a uniform format for some 10 existing declaration forms now utilized in the region depending on whether the merchandise is intra-regional, in transit or comes from outside the region. Recently a January-to-June 2011 Action Plan was launched to advance the process of economic integration of the MCCA countries. It focuses on seeking concrete results, the resolution of conflicts and the facilitation of regional trade, affording the initiative continuity in the form of successive six-month action plans. Among the objectives established in this plan is the promotion of commercial interchange in the Central American region by adopting a series of concrete facilitation measures with a positive impact on the competitive position of the productive sectors.
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Single Window for Foreign Trade, 6th Edition
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With respect to customs procedures, this Action Plan includes responding to the agreements with the EU 3, developing instruments and systems to implement a refund mechanism for customs duties on imports to avoid double taxation and updating the juridical foundations of FAUCA to integrate it with TIM and DUCA. According to this Action Plan, work is also underway on the conclusion of the FAUCA procedure and electronic interchange and on the development of a pilot plan between Guatemala, El Salvador and Costa Rica to establish a uniform electronic certification of origin procedure. The procedure can be applied by the rest of the countries of the region when the technical and juridical instruments are available, by updating international transit regulations to adjust them to TIM and to the new requirements of regional and extra regional trade, and by implementing and disseminating TIM to regional trade operators. Also, activities are being developed to achieve greater recognition of regional
technical
regulations
in
regard
to
medications,
standardization, animal feeds, agrichemicals and health and plant health measures.
3
Source: La Prensa Grรกfica.
http://www.laprensagrafica.com/economia/nacional/209227--buscan-avanzar-in-losacuerdos-pactados-with-ue.html
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Single Window for Foreign Trade, 6th Edition
II.2.
Harmonized
Customs
Module 6
Legislation
in
the
Caribbean
Community (CARICOM) Region
During the nineteen eighties the Caribbean Secretariat of the English speaking countries decided to draft a Harmonised Customs Act. Having such an Act was necessary for the regional integration movement and paved the way for a Customs Union. After many yearly meetings some countries decided that the process was taking too long and they wanted to move forward with customs reform. Dominica and Grenada were the first to seek help in moving the process forward. An approach was made to The Caribbean Regional Technical Assistance Centre (CARTAC) and workshops were held for the two countries. Barbados, Belize, St. Kitts and Nevis, and St. Vincent and the Grenadines followed soon afterwards and workshops were held by CARTAC to assist the countries in developing a modernized Customs Act and Regulations. The legislation was to be based on the on the current draft CARICOM Harmonized Customs Act. Although these aforementioned countries were moving forward their action would be in tandem with the CARICOM Secretariat. A harmonised set of customs legislation would entail all the countries in the CARICOM region applying the same import and export rules including uniform certificates of origin. It would also facilitate the easy exchange of statistical information.
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Single Window for Foreign Trade, 6th Edition
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II.3. TIM and ACIS as a SW initiatives in Central America and the Caribbean respectively
The
objective
of
the
Mesoamerican
Program
for
the
International Transit of Merchandise (TIM)4 is to redesign international
transit
processes
by
unifying
data
and
declarations in a single electronic document that provides the information
the
authorities
of
the
Region
require
and
to
interconnect and improve their information systems to support these new processes. The procedure in question was prepared within the framework of the Project called “Modernization of Customs and Border Crossings,� the executive Agency being the Central American Secretariat of Economic Integration (Spanish initials: SIECA), an institution with long experience in the management of projects to assist in the utilization of information technologies
for the
management
of
international trade. Transit constitutes a customs regime and may be defined as a proceeding that allows external goods to circulate from one point to another through one or more territories, with payment of customs duties and other consumer taxes suspended, contemplated as described in the foregoing chapter on the Central American Uniform Customs Code (Spanish initials: CAUCA).
4
Information extracted from the TIM web site: www.tim.sieca.int
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For its part, Article 2 of the International Land Transit Regulation approved by the Council of Ministers Responsible for the Economic Integration
and
Regional
Development
of
Central
America
(COMRIEDRE) on March 16, 2001, provides that customs authorities, with jurisdiction in each signatory country, will authorize the transportation of goods in international customs transit through their territory from:
a) one customs point of departure in a signatory country to a destination customs point in another signatory country; b) one customs point of departure in a signatory country destined to a non-signatory country in transit through one or more signatory countries other than the country of the customs point of departure; and c) one
customs
point
of
departure
to
a
customs
destination point located in the same signatory country so long as it transits the territory of another signatory country. The indicated regime has allowed the facilitation of trade flows and, in consequence, benefits the different actors involved in trade. But designing a specific procedure to regulate the aforesaid modality of interchange has not been sufficient. All of the Administrations involved have attempted to seek the best procedural formula to attain a safe, simple, automatic and inexpensive mechanism. This has caused customs transit to be considered as one of the measures to facilitate trade. The WCO indicates that many of the problems of transportation agents are related to border crossing requirements,
the
lack
of
uniform
international
transportation 39
Single Window for Foreign Trade, 6th Edition
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standards in relation to documentation, technical regulations and notices in matters of notifications and visas. Along the same lines, the absence of computerized procedures and the failure to use information technology have been identified as one of the principal causes of delays, expenses and inefficiencies suffered in border crossing. All the evidence shows that a greater application of technologies and data treatment to transit shipments through international traffic points will decrease waiting times of conveyances at border crossings, with a subsequent reduction of costs, more flexible transportation and improvement in Border Service controls. Backup causes due, in conjunction, to the transit of goods through the territories were so clear that, at the initiative of SIECA and with the financial participation of such entities as IDB, BCIE, USAID and PROALCA, a broad project called “ModernizaciĂłn de Aduanas y Pasos Fronterizos [Modernization of Customs and Border Crossings]â€? was agreed to in 2004. The basic objective consisted of rationalizing and making more efficient the actions of the various authorities intervening in the transit of goods across borders. That would not be feasible except by designing and implementing a single, computerized procedure for the treatment of the international transit merchandise (TIM) in the region (Mesoamerica). Such an application would consequently and undoubtedly bring a substantial reduction of the waiting time of conveyances at border crossings thereby minimizing service costs and increasing the ability of land traffic to compete with other modes of transportation. TIM is an automated system that attempts to improve the control of the customs and quarantine authorities, provide traceability, improve risk analysis inputs and optimize functions in transit operations.
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Single Window for Foreign Trade, 6th Edition
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This system permits improved transparency, fiscal and tax controls, as well as offering predictability to all the actors, decreasing time invested and operating costs at border crossings.
Figure No. 2.3. Traceability of transit operations with TIM
Source: IDB
More than 40 regional border posts can benefit by the measure. Figure No. 2.4. Border posts and state of TIM implementation (June 2011)
Source: IDB
TIM is built on three basic axes: the redesign of processes, a computerized system and infrastructure improvements.
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Single Window for Foreign Trade, 6th Edition
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The first phase of the TIM project consisted of establishing a system pilot at El Amatillo border pass (El Salvador–Honduras). Results were highly successful. Average time for crossing the border was reduced from 61 minutes to 8. These results demonstrated the advantages in terms of time and costs that can be introduced with the support of a Single Window environment. Figure No . 2.5. Basic axes of TIM
Source: IDB
In effect, TIM can be considered a Single Window at the regional level for international transit operations. This Single Window involves the following actors and systems:
1. Transportation operator or agent 2. Drivers 3. Customs personnel of the different countries 4. Quarantine services personnel of the different countries 5. Computer system or TIM Portal 6. Customs Management System of the different countries.
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Single Window for Foreign Trade, 6th Edition
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The TIM Project has followed the criteria that, to attain a system that unites operating facility and the obligatory control of the shipments in transit
exercised
by
the
different
Border
Services
(Customs,
migration, quarantine), the system must be constructed on the foundation of two considerations: one, the existence of a single documentary support that contains all the documentation required by the different intervening Services, and, two, the capacity of the transit procedure and the controls to be performed in the most automated manner possible. The present challenge is to extend the pilot experience to the rest of the customs posts, and to adapt the procedures to regional maritime and air operations. As of today, TIM is utilized in the Mesoamerican Integration Corridor (Spanish initials: CMI) from Guatemala to the border with Panama. The integral application of TIM all along the CMI corridor, will be of vital importance to making integral application of TIM possible within CMI. The application of TIM in Colombia and Belize should be considered as well, and its possible extension to internal transit and to all modes of transportation. Similarly, the technological capacities that can be introduced at CMI border points, and the identification measures that are introduced along the corridor, may come to be very beneficial to further automation
of
the
procedure
(for
example,
long-distance
fee
collection system, electronic seals, etc.).
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Single Window for Foreign Trade, 6th Edition
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II.4. The Proposed Advanced Cargo Information System in the CARICOM Region
Advanced Cargo Information (ACI) is one of the standards that regional governments are desirous of implementing throughout the CARICOM states. It is a standard which airlines, shippers, importers and exporters worldwide are eager to cooperate with Customs in implementing. It greatly assists with the movement of cargo and avoids the lengthy delays in the clearance of goods.
ACI therefore is the submission of cargo information in a specified time period before the arrival of the aircraft or ship in the State and the equally the departure from a port within the State. It permits Customs Authorities to summarily examine the documents presented for import and export cargo and determine whether any particular item(s) require special attention. It also allows the speedy clearance of cargo which poses no security or revenue threat to the State. Some countries have already implemented an ACI system. The United States introduced it some ten years ago. Other countries such as Canada, India, and Cuba to name
a
few
have
subsequently
followed.
The
World
Customs Organization (WCO) is also developing a wider initiative which will encompass International Supply Chain Management (ISCM).
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Single Window for Foreign Trade, 6th Edition
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Some of the goals of such an initiative would be to avoid costly data re-entry tasks; promote a paperless environment; and avoid a wide variability of requirements. The regional initiative can identify with these goals as governments seek to avoid data re-entry of goods moving within the region; promote an electronic environment which would allow for the easy management of cargo information; and standardize the customs requirements within the region. The ACI initiative in the region was born out of the realization that there was the possibility of increased international terrorism and organised cross border crime during the Cricket World Cup (CWC) in 2007. It was to supplement The Advanced Passenger Information (API) which was achieved, but for varying reasons the ACI was not achieved during that period. The failure to achieve the ACI left a security void in the movement of cargo within the region. Whilst the API has proven invaluable and continues to identify persons who are potential threats to region, the identification of cargo shipments which are probable dangers within the region has not been possible at the region level. It should however be noted that the ACI exists at the national level in Barbados, Jamaica and St. Lucia, Trinidad and Tobago. The enhancement of the regional border controls is required if we are to meet the challenges posed by the increase threats from terrorism and organised crime. The
challenge
for
the
regional
Customs
is
to
facilitate
international trade whilst effectively dealing with the small percentage of cargo that poses a threat to national and regional security. No Customs Authority in the world can conduct a 100% examination. Risk management techniques must therefore be utilised in the selection of cargo for examination. Such is difficult (almost impracticable) to achieve in a paper intensive environment.
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An ACI system would provide an electronic solution where predefined criteria is used to identify suspected shipments and also allow for a further electronic search based on most recent received information. The legislative requirements for the ACI were implemented during the CWC and remain in effect in most States of the region. It requires that:
a.
cargo information should be presented at a specified time before the arrival of the aircraft or vessel;
b. cargo information should be presented in a specified time period after the departure of the vessel or aircraft; and c.
penalties are imposed on air carriers or ship agents who deliberately falsify or omit information on manifests.
Goods remaining on board for export are not required to be reported unless they are explosives and other dangerous items. The goal of a regional ACI is to establish a standardized method of submitting cargo manifests throughout the region.
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Single Window for Foreign Trade, 6th Edition
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Each state at the moment has its own codes and methods of dealing with cargo. In a region of 15 member states and 14m people it is inconvenient for shippers to the region to have to deal with different procedures in each country. It is desirous that a trading bloc such as ours have a harmonised set of procedures and codes for dealing with cargo shipments to the region. The ACI would also present a portal similarly to the API through which all cargo information is channelled as we seek to integrate the management of our borders in the region. The value of the ACI is to increase efficiency through time and cost savings for carriers in the region. Governments also benefit from the process in being able to easily exchange standardized data. The system will allow carriers to lodge information in a single place in order to fulfil all import or export related regulatory requirements within the participating member states. Customs departments in the SDS will also achieve operational benefits from: ď‚&#x;
the effective use of staff which was previously involved in unmanageable paper shuffling; and
ď‚&#x;
the availability of a wide assortment of reports in real time which can be beneficial to other law enforcement agencies.
One of the benefits of the ACI is that it brings a vast economy of scale to the countries involved and the donors. Its flexibility will allow for those with investment in other systems to interface with the platform being used. Each member state would have had to invest millions of dollars to separately implement an electronic cargo management system which met the legislative requirements.
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Donors who have advocated for years a single approach within the region remain reluctant to finance the same project in each member state. All participating countries will therefore benefit from:
1. faster processing of manifests and the ability to view electronically the cargo before it arrives; 2. flagging of suspected cargo for special examination; 3. more efficient standardized profiling of imported and exported cargo; 4. production of accurate and timely statistical data on the movement of cargo; 5. optimization of available personnel resources; 6. harmonization and simplification of procedures for all carriers in the region; and 7. easy aggregation of data from all participating states.
The ACI platform is proposed to be housed in Barbados with backups in St. Lucia and Trinidad and Tobago. It is also proposed that Jamaica house a backup at a later date.
II.5. Digital Electronic Certification in the Single Window environment
Facilitating procedures for obtaining certificates, licenses and visas from different government agencies in coordination with customs procedures for exports, transit or imports, is one of the principle objectives of foreign trade single windows and an asset of vital importance to the effective control of border crossing points. This is 48
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due to the fact that goods should not be released unless all the authorizations from all the agencies are in order. The existence of a digital electronic certification of origin system constitutes a measure that facilitates trade. It eliminates a paper transaction, digitally issuing certificates of origin (which were paper based before) to the customs authority computer system where they can be digitally accepted. The certificate of origin is an officially valid document accrediting that the goods certified originate in a specific country. Such a document allows access to duty preferences negotiated in the framework of regional accords. Technological advances allow the remote transfer of data and the establishment of legal regimes in the different countries to recognize a digital signature in the same manner as a handwritten one. As pointed out by the IDB5, experiences have begun in the design of this new system which not only reduces time, but costs as well. While digital certification of origin does not change the concept, the process varies substantially when we delve into its actual operation. The growing number of certificates of origin in the countries of Central America makes control by the importer more difficult because of the existence of multiple issuers of certificates of origin, different formats and different responsible individuals. Questions arise as to the reliability of control in origin, the information contained in the document or the document itself. These are similar to questions that can arise with other types of certificates (certificates about human, plant and animal health, the Taller de Certificaciรณn de Origen Digital [Digital Certificate of Origin Workshop]. January 2010. Buenos Aires. Institute for the Integration of Latin America and the Caribbean. InterAmerican Development Bank. 5
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environment, etc.). In general, foreign trade single windows (FTSW) facilitate computerization in the process of creating certificates by way of electronic media, including the use of digital electronic signatures. Some FTSWs electronically recognize and even transmit the certificate data to other government agencies in the same country. In most cases, however, these digital electronic certificates do not automate the issuing of the certificate and for recognition, validation and control in other countries; it continues to be necessary to submit a paper certificate, with its corresponding signatures and manual seals. The functioning of this type of system consists of an electronic request for certification on the part of the exporter, annexing to his petition a sworn declaration digitally signed, and a digitalized copy of the commercial invoice. For
its
part,
the
qualified
entity,
having
complied
with
the
corresponding formalities and controls, issues the digital certificate of origin and incorporates the digital signature of the person authorized for that purpose, giving all the assurances equivalent to the certificate of origin on paper that was utilized before the advent of this type of system. This document is electronically remitted to the exporter, who submits it to the importer for its submission, also digitally, to the customs authority of the importing country.
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Single Window for Foreign Trade, 6th Edition
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The principal advantages of electronic digital certification of origin are based on:
speed,
accuracy,
decreased possibility of falsification,
lower processing and filing costs and strengthening of the verification of the origin.
This analysis of the digital certification of origin also applies to the issuance of other types of certificates that may be required by the different regulatory agencies and the customs offices at the point of origin as well as the destination of the goods. Little by little, initiatives are identified in which, within of the realm of certificates of origin, contacts appear between countries at the regional level6:
by means of meetings (Pacific Rim, ALADI) and at the bilateral level through pilot projects between countries (Colombia-Chile, Chile-Ecuador, Central American countries, El Salvador-Guatemala-Colombia or Costa Rica-Chile).
Cornejo, Rafael. Certificación Electrónica Digital [Digital Electronic Certification]. IDB. I Taller: Ventanillas únicas de Comercio Exterior. Consideraciones y propuestas para la acción regional en el marco del Foro del Arco Pacífico Latinoamericano [Workshop I: Foreign Trade Single Windows. Considerations and Proposals for Regional Action in the Framework of the Pacific Rim-Latin American Forum]. SELA. 2010. 6
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The advantages of a digital electronic certification are:
Replacement of the certificate on paper by a digital archive.
Possibility of presenting and transferring information at a distance without physical displacement of persons or paper documents, utilizing digital signatures at lower cost, greater ease and speed of processing, fewer errors and greater facility in filing, finding and recovering the certificate.
Transparency in the operation and greater capacity for expost facto auditing.
Facility of distribution and consultation on the part of all the government agencies and departments involved, including border control posts, which broadens the information base.
Enables government risk analysis systems to broaden their information
sources
to
more
adequately
define
and
computerize criteria (for example, the weight and customs code indicated on the certificate of origin of a food product should match the weight and customs code on the health certificate and the weight and customs code on the import declaration).
Allows greater facilitation by assuring the verification of origin (for example by automatic, unattended consultation in real time between the system that verifies the certificate and the system that issues the certificate).
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However, the digital electronic certificate must continue to comply with existing requirements and regulations the same as the certificate on paper. Both must follow the same verification procedures to ensure that the products comply with the certificate’s requirements. The electronic documents (as well as the documents on paper) must still be inalterable, have juridical value and serve as legal proof. The use of digital signature techniques allows guarantees, with an even greater degree of reliability than the use of manual signatures and seals on original paper documents, of the authenticity of the signer (that is, the entity competent to issue the certificate) as well as the inalterable nature of the document. Juridical recognition and the value of a document with a digital signature as legal proof, however, must be established and regulated within the legislation of each country. The extension of the experiences with electronic certificates of origin to other types of certificates, as well as the recognition of such certificates in the Central American countries, could become a significant facilitating measure. Such a measure could be considered in the national FTSW of these countries, initially to be contemplated in bilateral and later regional, accords. It could also be contemplated within TIM so that instead of having a scanned copy of the paper certificate, an electronic digital document would be available that would permit automatic and immediate verification of authenticity, inalterability and consistency of the information contained in the certificate.
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II.6. Functional necessities of SWs and CMSs in the MCCA and CARICOM
Central America and Panama7 have established some common objectives
to
facilitate
international
trade,
among
which
are
reductions of costs, reductions of procedures, reductions of time, information management, electronic procedures and decreasing or eliminating paper. At the present time:
•
Costa Rica operates a FTSW and is converting its services to 24/7;
•
Panama, El Salvador and Guatemala are developing a FTSW project and operate their services 24/7;
•
Honduras is interested in beginning the project, but does not yet have a digital signature law; and
Nicaragua is improving its CMS (Customs Management System) and has a SW available for exports;.
7
Ventanilla Única para Exportaciones. Ministerio de Economía de Guatemala. Seminario y experiencias de Ventanilla Única electrónica [Single Window for Exports. Ministry of Economics of Guatemala. Electronic Single Window Seminar and Experiences]. Antigua, Guatemala. CAPTAC-DR. 2011.
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The level of maturity and interoperability of these initiatives, however, is still incipient and still requires the extensive use of paper and the submission of original documents. For example, not all the FTSW initiatives consider automatic authorizations of requirements, documents or forms and most of them have a system of their own that must integrated in a process of continual improvement. However, there are interesting experiences in the creation of an integrated SW environment at the regional level. An example is the case of the electronic interchange of FAUCAs between Guatemala, El Salvador and Honduras. TIM, which operates from Mexico to Panama, is presently in the process of expanding to Colombia as well as incorporates other means of transportation (Air and Sea). In March 2011, an IDB-sponsored meeting was held in Costa Rica between these countries as a follow-up to the conclusions of the “I Taller: Ventanillas únicas de Comercio Exterior. Consideraciones y propuestas para la acción regional en el marco del Foro del Arco Pacífico Latinoamericano [Workshop I: Foreign Trade Single Windows. Considerations and Proposals for Regional Action in the Framework of the Pacific Rim - Latin American Forum]”.8 It was agreed, at this meeting, to continue exploring and developing Regional FTSW interoperability, consolidating the plan of Central America
and
Panama;
and
to
emphasize
Single
Windows
as
instruments to facilitate foreign trade, regional integration and elements to accelerate and ease border procedures, eliminating the use of the paper.
Workshop organized by SELA, the National Customs Service of Chile and the Ministry of Foreign Relations of Panama, with the technical advice of the IDB and the financing of CAF of Valparaíso. 8
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Single Window for Foreign Trade, 6th Edition
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Along those lines, the necessity was identified to develop paperless trade models and systems and to interconnect the SW and CMS systems, creating a Single Window environment with the objective of simplifying
processes and
procedures, prioritizing
the
work of
interchanging the documents that generate the greatest number of transactions or the largest volume of information: cargo manifests, FAUCA, sanitation certificates, certificates of origin and health certificates. These are the development stages established at this meeting: •
Analysis of processes and procedures with institutions involved in foreign trade.
•
Simplification of documents and processes.
•
Harmonization and interchange of data with legal value (digital signatures)
•
Integration of systems
Among the simplification measures that may be introduced for effective border control through a Single Window environment, the examples below are taken from those listed in the WCO single window compendium. These measures would be the following:
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Single Window for Foreign Trade, 6th Edition
•
Module 6
Paperless cargo release and the application of automated processes: o
The majority goods should be released on the basis of information contained in the customs declaration without the necessity of documentary or physical recognition at the time of the clearance, while the goods and the means of transportation wait in a temporary warehousing area until admitted to the territory.
o
The intervention of the authorities in the goods should be based on an analysis of risks or the nature of the merchandise itself (for example, in the case of products that require a sanitation inspection)
•
Application of risk analysis techniques: o
Creation of risk management mechanisms and techniques assisted by a computer with minimum selectivity for originating products.
•
Simplified procedures: o
The release (or authorization) of the cargo should require only documentation that is strictly necessary.
o
Clearance
procedures
in
two
stages,
separating
the
submission of the declaration, being able to declare goods before they are under customs surveillance, from the authorization or release authorization, in which the goods must be under customs surveillance. o
More rapid clearance procedures with lower percentages of intervention in the goods or documentation for authorized economic operators.
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Single Window for Foreign Trade, 6th Edition
•
Module 6
Traceability of the goods: o
Capacity to verify and adequately follow up goods that have been introduced in the territory, are in transit or temporary storage, have been cleared for import, are released and have been removed for national use.
o
Capacity to verify and adequately follow up goods that have been cleared for export, are in transit or temporary storage or are released and have left the territory.
o
Capacity to measure the time taken by different procedures and operations required for administration in foreign trade processes.
o
Support
mechanisms
transportation
units
of
and
automatic goods
(bar
identification codes,
of
electronic
identification, etc.) in order to speed up the tasks of customs personnel and economic operators in the work of traceability, making the technology a facilitating element and not a bottleneck for trade. •
Simple Tariffs and transparent regulations: o
Transparent methods of calculating duty rates that facilitate automation.
•
Effective use of risk management techniques: o
Prior availability between border regulatory agencies of reliable common information for application to systematic risk management.
o
Automated and parameterizable systems that facilitate decision
making,
risk
evaluation
and
selectivity.
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Single Window for Foreign Trade, 6th Edition
o
Module 6
Automatic, unattended real time verification and proof of:
coherence of information (for example, that common elements between different documents of the same economic transaction match he type of goods, the quantity, the value, the buyer, the seller and the buysell invoice),
authenticity of the documents, forms or electronic messages (for example, that a certificate has actually been issued and that it has not been manipulated), and
procedural rules of the customs administration and the different
border
regulatory
and
control
agencies
(deadlines, for example, exceptions, payments, prior authorizations, etc.).
capacities to consult or share information between agencies of the same country and between agencies of different countries with jurisdiction in the foreign trade operations related to registries of economic operators (importers,
exporters,
transportation
operators,
warehousers, consolidators, customs agents, etc.). For example, the existence of a single or distributed integrated registry of economic operators.
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Single Window for Foreign Trade, 6th Edition
ď ł
Module 6
Possibility of prior verifications and proofs utilizing information existing in other countries in regard to which there are conventions or collaboration accords between homologous agencies (for example, accords between the customs, regulatory organs of sanitation norms and plant health standards) to share information or introduce measures that permit verifying and more broadly testing the entire supply chain for coherence, authenticity or the existence of information registries that offer greater risk management effectiveness at all the borders from origin to destination.
•
Elevated transparency and capacities to comply with regulations: o
Supply of information about laws, standards, regulations and procedures on the part of the government that facilitates compliance.
o
Training programs that disseminate good practices for correct compliance with regulations.
o
Introduction of new services in the customs administration and the border regulatory and control agencies that help the economic operators develop and improve their internal systems and procedures, introducing more computerized processes and making possible the use of collaborative systems
to
allow
more
effective,
reliable
and
rapid
compliance with regulations. o
Capacities of the customs administration and the border regulatory
and
control
agencies
to
receive
electronic
information automatically and unattended, maintaining all the levels of security and authenticity of the information.
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Single Window for Foreign Trade, 6th Edition
•
Module 6
Elevated capacity to develop controls and post auditing: o
Adequate registries to identify operators who participate in foreign trade (exporters, importers, customs agents and representatives,
transportation
operators,
warehousers,
etc.). o
Adequate registries in regard to the traceability of the goods.
o
Maintenance of all the information supplied in regard to the transaction
(declarations,
petitions,
verifications,
modifications, events, etc.). o
Automatic comparisons of information between different government databases.
o
Rapid, easy access to stored information.
o
Trained personnel dedicated to auditing activities.
o
Generation of measures, statistics and indicators of the activity.
o
Updating of risk analysis criteria on the basis of post audit results.
o
Technical and legal capacities to verify the information recorded and archived by economic operators themselves.
•
Reliable economic operators: o
Existence of authorized economic operator programs.
o
Extension of the program not only to customs but to other border regulatory and control agencies.
o
Transparent certification standards based on independent objective audits.
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Single Window for Foreign Trade, 6th Edition
o
Module 6
Inclusion of the functionalities and processes required to supply the simplifications available to reliable economic operators within the customs administration and border regulatory and control agencies’ own systems.
•
Efficient information interchange: o
Capacities of the customs administrations, border regulatory and control agencies’ systems to interchange information automatically and unattended.
o
Connectivity operators’
and
interoperability
systems
and
with
collaborative
the
economic
systems
(ports,
airports, banks, logistics suppliers, etc.) with the object of interchanging information in an automatic and unattended manner. o
Introduction of electronic provisions capable of capturing, processing
and
automatically
interchanging
(for
example,
information vehicle
rapidly
and
and
container
registration readers, bar code readers, active and passive RFID readers, GPS, intelligent mobile applications, etc.). •
Simple, standardized electronic messages: o
Adoption and use of international standards and practices.
o
Existence of electronic messages capable of covering a broad range of necessities related to processing and authorizing foreign trade operations.
•
Progressive construction of information: o
Possibility of the customs administrations, border regulatory and control agencies’ systems not to require all of the information to be sent at one time but progressively.
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Single Window for Foreign Trade, 6th Edition
o
Module 6
The supplying of data to the administration is permitted in stages that correspond to associated commercial, logistics and transportation activities.
o •
The early sending of information is permitted.
Capacity of the economic operators involved in the supply chain: o
Existence of commercial level and supply chain collaborative systems.
o
Advanced supply chain management systems with electronic information transmission and goods traceability capacity (identification, commercial contract, commercial invoicing, status, locations, shipments, packaging, procedures realized and situation of the procedures, transportation contracts, etc.).
o
Adoption of supply chain quality, security and auditing measures or systems.
o
Connectivity
and
interoperability
of
the
supply
chain
management systems with the logistics systems and the administration systems. •
Capacity of the economic operators involved in the logistics chain: o
Advanced operators,
logistics
management
warehouses,
storage
systems and
in
logistics
terminals
with
electronic information transmission and traceability capacity for the shipments (identification, services invoice, services offered, packaging, status, remittances, procedures realized and
the
situation
of
the
procedures,
transportation
contracts, etc.) and remittances (identification, packaging, transportation
contract
and
invoices,
operations
and
services performed, status, location, procedures underway and the situation of the procedures, etc.).
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Single Window for Foreign Trade, 6th Edition
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o
Existence of collaborative systems at the logistics level.
o
Existence of infrastructure and adequate, secure spaces in warehouses, storage and terminals.
o
Adoption of logistics chain quality, security and auditing measures or systems.
o
Existence
of
computerization
systems
in
warehouses,
storage and terminals. o
Fluid communications between the logistics operators at the origin and destination.
o
Connectivity and interoperability of the logistics systems with the supply chain management systems, transportation systems and administration systems.
•
Capacity of the economic operators involved in the transportation chain: o
Advanced transportation operator systems with electronic information transmission and goods traceability capacity (identification,
packaging,
transportation
contract,
transportation invoice, operations and services realized, status, localization, procedures realized and the situation of the procedures, etc.) and means of transportation (vehicles, transportation
units,
locations,
status,
consumption,
procedures realized and the situation of the procedures, etc.). o
Existence of collaborative transportation systems.
o
Adoption of transportation chain quality, security and auditing measures or systems.
o
Existence of transportation operations assistance systems (aids
to
navigation,
positioning,
identification,
communication of the means of transportation, etc.).
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Single Window for Foreign Trade, 6th Edition
o
Module 6
Fluid communications between transportation operators, logistics operators, warehousers, storage and terminals throughout the transportation chain.
o
Connectivity and interoperability of logistics systems with supply
chain
management,
transportation
and
administration systems. •
Interchanges
in
real
time
between
administration
systems and the economic operators’ systems: o
Real time information in regard to the status of available procedures for economic operators, agencies and managers of the infrastructures involved.
o
Real time information in regard to authorizations to release (levantes) of goods available.
o
Real time information in regard to authorizations to release (levantes) of available transportation units.
o
Coordinated border inspections.
o
Real time information in regard to arrivals and departures of goods and vehicles.
o
Automation of port arrival and departure controls.
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Single Window for Foreign Trade, 6th Edition
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Unit summary
In this unit we studied a number of initiatives available with regards to the SW in Central America. We also examine the attempts made by the Caribbean to move towards SW implementation. •
In moving towards implementation of a SW, Central America and the Caribbean have both made efforts to harmonise their laws and procedures.
•
The member countries of the Central American Common Market (MCCA) have a Single Customs Procedures Manual [Manual Único de Procedimientos Aduaneros] legally based on the Central American Uniform Customs Code [Código Aduanero Uniforme Centroamericano (CAUCA)] and Code Regulations (RECAUCA).
•
The objective is to clarify and harmonize foreign trade customs operations for uniform application in each of the Customs services of the Central American countries. The member Countries of CARICOM have also made efforts to harmonize their laws.
•
Both regions have introduced initiatives which seek to unify data and declarations in single document and use it for transit or customs
purposes.
Central
America
has
established
the
International Transit of Merchandise (TIM) and the Caribbean the Advance Cargo Manifest System (ACIS). •
The
unit
also
covers
the
acceptance
of
digital
electronic
certification. The existence of a digital electronic certification of origin system constitutes a measure that facilitates trade. It eliminates a paper transaction, digitally issuing certificates of origin to the customs authority computer system where they can be digitally accepted. •
Although several countries have made progress towards a fully operational single window there are still a number of necessities which must be introduced.
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Unit III. Status of MCCA Single Window Initiatives
Learning objectives
•
To be cognisant of the existing single windows in Central America and the proposed ones in the Caribbean.
•
To be aware of the steps taken in El Salvador, Nicaragua, and Costa Rica to establish fully operational single windows.
•
To analyse the efforts of Trinidad and Tobago to establish single widows.
The status of existing single windows initiatives in the MCCA countries and CARICOM is described below, utilizing the results of the Single Windows analysis in the September 2011 IDB Trade Facilitation Study in the Pacific and Mesoamerican Countries Corridor Project.
III.1. El Salvador: SW and CMS
In recent years El Salvador 9 has made significant advances in the modernization of customs by applying risk management techniques, extending the use of information technologies and creating a Single Window for importers. It has also advanced in the elimination of unnecessary restrictions in matters of licenses, improving the clarity of technical regulations and sanitation and plant health measures.
9
Examination of commercial policies – El Salvador. WCO. WT/TPR/M/226. 2010
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Single Window for Foreign Trade, 6th Edition
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The institution in charge of applying standards in customs matters is the General Directorate of Customs (DGA).10 The DGA is attached to the Ministry of the Treasury. Customs regulations, including instructions issued by the DGA, are available on the DGA web site. 11 The DGA has published a GuĂa Aduanera [Customs Guide] that describes the customs procedures. It is necessary to submit the original commercial invoice, the transportation document and, for goods that require it, the import permit to Customs. To import goods in the framework of a preferential commercial accord it is also necessary to submit the original or a copy of the certificate of origin. The time necessary to import goods has been shortened from 30 days in 2006 to 10 days in 2009.12 Of these 10 days, two correspond to the clearance in customs. According to figures provided by the authorities, the average time for customs clearance is 22 hours to import products subject to inspection. Importers must register with the DGA. Inscription in the registry is automatic after compliance with the requirements listed in the law of the registry of importers. The use of a customs agent is an option for companies, with the prior authorization of the DGA. The DGA began the Programa Aduanero de Cumplimiento
Empresarial
[Business
Customs
Compliance
Program] (PACE) at the end of 2008.
10
Article 3 of the Organizational Law of the General Directorate of Customs. Legislative
Decree No. 903 of January 12, 2006. 11
12
Consulted at: http://www.customs.gob.sv Online
information
regulations".
from the World
Bank, "Doing Business: Measuring business Consulted
at:
http://www.doingbusiness.org/ExploreTopics/TradingAcrossBorders
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Single Window for Foreign Trade, 6th Edition
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Participation in PACE is voluntary. Businesses that wish to participate in PACE must submit to an evaluation and certification of compliance process based on the tax and customs standards and their internal control processes. The benefits of participation in PACE include reducing the number of shipments subjected to review and a speedier physical review processes. As of early 2011, El Salvador did not yet have a law allowing electronic signatures although the Ministry of Economics was in the process of creating it. There is a Single Window for the processing and registry of exports (CENTREX)
in
El
Salvador,
operating
exclusively
on
export
processes13. A "Single Imports Window" has been functioning in San Salvador since April 2007. Personnel from the institutions involved in import procedures, including those in charge of issuing permits to import certain products, work together. It is, therefore, a physical Single Window. Nevertheless, this initiative has occasioned a considerable reduction of the average time needed to complete permit related procedures from twenty days to one. El Salvador has a project to establish a "Virtual Single Window" in which the users can undertake online procedures to obtain import permits and to integrate the Imports Window to the Exports Window and create an Integrated Foreign Trade System (CIEX)14.
13
Official website for Integrated Foreign Trade System of El Salvador. Available at:
http://www.centrexonline.com 14
Process of Unification of Single Windows to create the Center for Import and Export
Procedures. Central Reserve Bank of El Salvador. Electronic Single Window Models and Experiences [Proceso de Unificación de la Ventanillas Única, para crear el Centro de Trámites de Importaciones and Exportaciones. Banco central de la reserva de El Salvador. Seminario Modelos and Experiencias de Ventanilla Única Electrónica]. CAPTAC-DR. March 2009.
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Single Window for Foreign Trade, 6th Edition
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CIEX is constituted as a Single Window system the object of which will be to centralize, accelerate and simplify legally established procedures
for
the
registration,
authorization
and
issuing
of
documents from different institutions and dependencies involved in imports and exports. Figure No. 3.1. Export-import SW between Guatemala and El Salvador.
The Central Bank of El Salvador is the institution that coordinates Source: Elaborated by the author
CENTREX and will administer CIEX. It will be the Central Reserve Bank’s responsibility to define its administrative structure, schedule and service charges. The law creating CIEX El Salvador will incorporate the following into all foreign trade transactions: •
Electronic data Interchange, with local and foreign customs offices, other countries’ single windows, international cargo transportation operators and other actors involved.
•
Digital signature, utilizing public key codes that ensure the authenticity of information.
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Single Window for Foreign Trade, 6th Edition
•
Module 6
Electronic signatures as mechanisms of proof that the signer approves the transaction.
•
Signatures and identification numbers will constitute legal proof; electronically registered and archived documents will prevail over documents on paper and copies will have the value of public documents if they are certified by CIEX El Salvador.
The El Salvador customs code is based on the Central American Uniform Customs Code (CAUCA IV) [Código Aduanero Uniforme Centroamericano], the code regulations (RECAUCA IV) and on national legislation, including: the Organizational Law of the General Directorate of Customs, adopted in 2006; the Law of Customs Simplification modified in 2005 and 2006; and the Special Law to Sanction Customs Infractions, modified in 2006. The goods declaration can be transmitted to Customs before the arrival of the goods at the port of disembarkation. It is also possible to pay the customs duties before sending the goods declaration to Customs. Both procedures can be accomplished by tele-clearance, an information management system in customs that functions on the base of the United Nations instrument SIDUNEA++. The goods import declaration can be transmitted electronically to the Customs office habilitated to such effect, teleclearanceing the goods declaration. The payment of duties and taxes can be processed electronically at a physical window (authorized banks) or in qualified collection agencies [colecturías].
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Single Window for Foreign Trade, 6th Edition
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Figure No.3.2. Global connectivity scheme of the Single Customs Declaration System
Source: SAT
The customs agent or legal representative must submit two copies of the goods declaration signed and sealed, attaching the original of the commercial invoice, transportation documents and licenses, permits, certificates or other documents that may be required. Entry customs, for its part, requires verifying and validating that the information provided on paper corresponds to what is recorded in the system and proceeds to activate the declaration to submit it to selectivity. Advances reported by El Salvador in regard to the development of the FTSW include: •
Incorporation of the Foreign Trade Single Window project in the 2010-2014 Five Year Development Plan.
•
Creation of the Inter-Institutional Commission to propose a facilitating system.
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Single Window for Foreign Trade, 6th Edition
•
Module 6
Signing of the Inter-Institutional Convention for the Transfer and Functioning of the Import Window to the Central Reserve Bank of El Salvador.
•
Approval by Congress of the Law Creating CIEX El Salvador, which bestows juridical certainty on the Foreign Trade Single Window.
During the month of March 2011, plans to research present procedures and to work on computerizing procedures begin. The objective is to get the computer system underway in the year 2013 to integrally incorporate all of the institutions and/or agencies involved in imports and to make paperless customs possible. That computer system will allow the homologation of procedures, meeting private sector demands in coordination with the customs authorities and State institutions by means of a single, integrated procedure. The computer information system is also intended to promote the Authorized
Economic
Operator
(AEO)
concept
and
strengthen
customs processes by means of the complementary nature of information that facilitates greater traceability in foreign trade operations to give an integral response to the necessity of meeting high levels of security and facilitation of trade.
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Single Window for Foreign Trade, 6th Edition
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III.2. Nicaragua: SW and CMS
The General Directorate of Customs Services (DGA) 15 is charged with the administration of customs services to control and facilitate foreign trade by developing and constantly improving customs techniques, as well as administering the State duties on the international traffic of goods and the juridical relationships derived therefrom. International Trade, the framework of the interchange of goods and services between the different countries, makes it possible for the productive sectors to transcend borders, with the benefits that that generates for the peoples of the countries involved. International Trade promoters demand efficiency, security and transparency in the diverse
international
movement
of
goods
operations.
As
a
consequence of such expectations, DGA signed a United Nations Conference on Trade and Development (UNCTAD) Convention for the purpose of supporting the totality of customs operations in the country with the Automatized Customs System SIDUNEA. This CMS is an application constructed with technology that offers an efficient, robust and rapid manner of processing operations with wide scope and national breadth in a secure manner through the Internet16. At the present time there is only the Export Single Window known as Centro de Trรกmites de las Exportaciones [Export Center] (CETREX), which operates manually and electronically. CETREX is a public entity that offers services to the export sector. 15 16
DGA Web site: www.dga.gob.ni DGA
Manual
of
customs
procedures.
Available
at
http://www.dga.gob.ni/SiduneaWorld/Manual Procedure SW updated 1/21/2011.pdf
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Single Window for Foreign Trade, 6th Edition
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The computer system it utilizes is called SWE-SiTrade. CETREX was created by Presidential Decree 30-94, of June 28, 1994. It was established with the object of centralizing the execution of the specific functions of the public entities that attend to the procedures exporters required. It is attached to the National Commission for the Promotion of Exports (CNPE). CETREX is connected to the DGA. The CNPE Council is made up of five public sector representatives from the: •
Ministry of Industrial and Commercial Promotion (MAFIC)
•
Ministry of the Treasury and Public Credit (MCPC)
•
Ministry of Agriculture and Forestry (MAJOR)
•
Ministry of Natural Resources (MARINA)
•
Central Bank of Nicaragua (BAN)
And of five private sector representatives: •
Superior Council of Private Enterprise (COSEP).
•
Association of Export Producers of Nicaragua (APEN).
•
Chamber of Fishing of Nicaragua (CAPENIC).
•
Nicaraguan Association of Industrial Exporters (ANIEX).
•
Center for Exports and Investments (CEI).
The only connectivity between the different agencies and customs is found in the SWE-SiTrade system although, at the present, the documentation issued by the system is on paper. CETREX is fully consolidated. The export system window is its own development called online Export Procedures System (SITRADE). This system functions through an interface available at the CEDEX 17 web site. This system supports export procedures (FAUCA document or export goods declaration) as well as payments.
17
Available at www.cetrex.gob.ni
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Single Window for Foreign Trade, 6th Edition
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At the present time, the preparation of a FTSW project is being proposed under the responsibility of the Ministry of Industrial and Commercial Promotion (MAFIC) and with the technical support of the IDB. The
DGA
employs
the
SIDUNEA
World
system
for
customs
management that contemplates all the processes related to cargo control, the warehousing of goods, national customs transit and customs clearance. For cargo control, it considers any movement that has a cargo manifest
that
transportation
can
contain
documents.
an Also,
unlimited the
quantity
cargo
of
different
consigned
in
a
transportation document can be remitted in several voyages and consequently in various cargo manifests. Once the manifest is recorded, and the means of transportation has arrived, goods under the supervision of customs are unloaded in the primary zone and sent to the temporary storage qualified by the customs authority. Then they can be declared under any of the customs regimes legally provided for within the periods of time established in the customs code. After complying with the required standards, they can be transferred to the secondary zone or released for circulation. Cargo control also incorporates functionalities for transfers
and
reembarkation,
shortages
and
overages,
deconsolidation (breakdown) of cargo, as well as warehousing and the recovery of electronic archives with information from the manifest. For the destination of goods to a customs transit either internally (national) or international, the customs declaration (form T1) must be registered. The finalization of transit generates a cargo manifest.
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Single Window for Foreign Trade, 6th Edition
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In the case where goods are in temporary storage in Managua Interior Customs or in Port Customs (Puertos Corinto, La Rama and Sandino) or Airport (Air Cargo Center), the form must incorporate the information corresponding to the year and registry number of the cargo manifest and the transportation document number so that unloading corresponds to the inventory generated in Sidunea World. For customs clearance, a goods declaration can contain up to 999 articles or items. It can also comprehend an equal number of transportation documents, so long as they correspond to the Cargo Manifest
included
in
the
Declaration.
Each
goods
declaration
comprehends a single Cargo Manifest. A transportation document can consign as many articles or items of the Declaration of Goods as different duty positions require. However, both the Declaration Model and the General Regime are unique for each goods declaration. In conformity with the standards in effect, the Customs Agent can transmit (Complementary) Declarations of Rectification so long as the Customs
Authority,
before
his
request,
has
authorized
such
Rectification. For all regimes and special modalities, the system has the mechanism of Prior Declarations available. That permits the cancellation of suspense regimes, transfers between regimes and other operations that require connectivity between regimes.
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Single Window for Foreign Trade, 6th Edition
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Figure No 3.3. The functions of the CENTREX
Source: Elaborated by the author
Sanitation Certificates, Certificates of Origin and Customs Certificates can be obtained electronically.
III.3. Costa Rica: SW and CMS
In recent years Costa Rica18 has modernized its trade mechanisms, simplifying and computerizing customs procedures and adopting new regulations in regard to customs procedures and valuation. Costa
18
Examen de las polĂticas comerciales [Examination of Trade Policies] - Costa Rica. WCO.
WT/TPR/S/280. 2007
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Single Window for Foreign Trade, 6th Edition
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Rica has one of the most advanced FTSW systems in the Central American region, well defined at the commercial level. All exporters must be registered with the Foreign Trade Promoter (PROCOMER). All importers must be previously registered. Different databases are utilized for such effect such as DGT taxpayers, Public Registry, etc. Costa Rica recently signed an accord with Panama 19 to facilitate trade and establish interoperability of their single windows and it is working on interoperability with El Salvador and Guatemala. The FTSW in Costa Rica was created by Law 7638, article 8 (paragraph c), of November 18, 1996. It operates electronically for exports as well as for imports.20 As of this date, it has integrated the different
public
organizations
that
issue
legal
permits
or
authorizations and animal and plant health certificates, certificates of origin and others. The FTSW functions has two modules, one external, composed of exporters, importers and customs agencies and the other internal, composed of the authorities of the different public organizations. The leader of the FTSW in Costa Rica is the Promotora de Comercio Exterior [Foreign Trade Promoter] of Costa Rica (PROCOMER). PROCOMER is a non-state public entity that is responsible for the promotion of Costa Rican exports. In accordance with its law of creation, PROCOMER is responsible for: •
Designing and coordinating programs related to exports and investments.
19
Ventanilla Única para Exportaciones [Single Window for Exports]. Ministry of Economics of
Guatemala. Seminario y experiencias de Ventanilla Única electrónica [Electronic Single Window Seminar and Experiences]. Antigua, Guatemala. CAPTAC-DR. 2011. 20
Official site of Promotora del Comercio Exterior de Costa Rica (PROCOMER). Available at:
http://www.procomer.com/
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Single Window for Foreign Trade, 6th Edition
•
Module 6
Supporting the Ministry of Foreign Trade (COMEX) technically and financially to administer special export regimes
•
Promoting and protecting the commercial interests of the country abroad.
•
Centralizing and accelerating import and export procedures.
•
Providing follow-up on foreign trade statistics.
PROCOMER is in the process of developing an Integrated Foreign Trade Logistics System. The integration of the authorities of different public entities is promoted by means of an electronic mechanism called Sistema de Notas Técnicas en Línea [Online Technical Notes System] the following relevant aspects of which are outstanding: •
One single electronic form for the request/processing of permits and certificates. The system identifies the organization, sends, receives, analyzes and approves the form.
•
Once approved, the system sends the approval electronically to the customs of entry or exit in an XML message with an electronic signature token.
•
For exports and imports that require a permit/authorization, an electronic Single Customs Declaration must be associated. Also, payments required for release from the warehouse are made through an account domiciled in TICA through SINPE.
•
The system has a traceability process that allows identification and offers the exporter and importer more information about the status of their procedures, as well as measuring the efficiency of the service for each one of the organizations.
•
There is now a valuation and risk classification scheme in the procedures through the Online Technical Notes System, which allows the registration of low risk products or companies 24/7, which applies total effectiveness to a considerable volume of transactions.
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Single Window for Foreign Trade, 6th Edition
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The FTSW operates in a manner prior to the electronic procedures that must be realized with TICA. They are therefore complementary systems. For the effects of information required by the Central Bank, INEC, PROCOMER, CORBANA and any other interested entity, the computer application will make a Web consultation available with the data generated in the export DUAs duly confirmed or with a message interchange, as agreed to with the institution. Costa Rica has already consolidated a foreign trade Single Window environment integrated with the customs management system. During the month of September 2011 a call for project bids was published with IDB financing for the design, development and implementation of software for automating its FTSW (SIFTSW v2). Among other things, it must include the electronic management of: online export and import permits, certificates of origin, Single Export and Import Customs Declarations, Free Sale Certificates, Electronic Payments, electronic recognition and registration of individuals and corporations,
digital
signatures
and
certificates,
interoperability
between customs processes and inter-institutional systems with all the entities involved. The Sistema Integrado de Ventanilla Ăšnica de Comercio Exterior [Integrated Foreign Trade Single Window System] (SIFTSW) is software that permits exporters to conduct export procedures from their offices by the use of pre-sealed Customs Export Declarations (DAE) or the Formulario Aduanero Ăšnico Centroamericano (FAUCA) [Single Central American Customs Form] and without time-of-day restrictions. The system provides a special print module to print presealed forms that can be acquired at a cost similar to that of traditional forms.
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Single Window for Foreign Trade, 6th Edition
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The advantages of this system are in scheduling flexibility of (24 hours, 365 days a year), integrated service of the export documents required in FTSW, the reduction of costs by eliminating transfer and waiting time, personalized assistance in using the system, registry of exporter’s operations and the generation of statistics, improving and increasing company competiveness by means of a rapid, reliable system. The
General Customs Directorate
(DGA)
employs the
System
“Tecnología de Información para el Control Aduanero [Information Technology for Customs Control], TICA”21. The use of TICA was authorized by circular DGT-037-2007, of May 4, 2007. All messages interchanged in TICA must be electronically signed by the issuer, utilizing the digital certificate the Ministry of the Treasury provides for such effect, and all declarations can be submitted by electronic data transmission.
Customs
procedures
are
well
structured
and
documented in complete manuals22. The customs authorized transportation operator will transmit in advance, within the time limits established by the legislation in effect, the information of the entry or exit cargo manifest and inform port customs of the estimated date of arrival or departure of the means of transportation, as the case may be.
21
22
Office site of the Ministry of the Treasury of Costa Rica http://www.hacienda.go.cr/ Manual de Procedimientos Aduaneros [Manual of Customs Procedures]. Ministry of the
Treasury of Costa Rica. General Customs Directorate. Directorate of Technical Management. Department of Customs Processes. San José. July 2011.
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The responsibilities of the international transportation operators, consolidators, forwarders, customs warehousers, port and airport authorities and infrastructure managers under customs control are clearly defined, as are the interactions with computer applications, the possibilities of rectification, the data considered, the references to utilize in the manifests and the deadlines for presenting them. A clear collaboration is identified between the DGA and Port Authorities for customs control. The information of the entry or exit cargo manifest (or equivalent document such as the DTI) is an important piece within customs control and is transmitted in advance. This information is available on the DGA web site so that the government authorities that require inspections in regard to some of the goods on the manifest can acknowledge shipments in which they are interested and the computer application makes it impossible for them to be associated to a SAD or mobilization request until the same authority lifts the restriction in accordance with the legislation. The customs declarants will be able to send the SAD message 24 hours a day, 365 days a year and the application will undertake the process to validate those messages at all times. It will accept the SAD once the computer application has validated all prior requirements, realized the association of images of the (scanned) documentation and verified the tax payment. It is not necessary to present a printed SAD form to customs. The originals of the documents supporting the SAD must be archived and kept by the customs agent or the declarant, as the case may be, for the period of time established in the legislation in effect. Scanned documents must comply with the technical requirements dictated to such effect. TICA also receives from each issuing entity the transmission of technical notes.
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It will validate the operation and store the information from the technical notes, duly identified by the corresponding code and the number assigned by the issuing entity and by its origin. If not, it will reject the registry of the note and notify the sender, indicating the corresponding error code. When goods are unloaded in port after arriving by maritime or land transportation in container or in warehousing installations when such operation has been authorized by the customs authority, the number of the transportation unit must be indicated in the SAD message and the information will be validated against the record in the entry manifest.
III.4. Trinidad and Tobago: SW and CMS
The Trinidad and Tobago Single Electronic Window (SW) is operated by the Government under the trade name TTBizLink. It is the first of its kind in the Caribbean and is a secure business portal that provides 24/7 access to trade and business related government services via a single
electronic
platform.
Applications
submitted
online
are
automatically routed to the relevant approving agency for electronic processing. The agency then communicates with the applicant electronically on the application’s status indicating whether it has been approved, rejected or queried. TTBizLink is coordinated by an Inter-Ministerial Committee comprising the following ministries: Trade and Industry (Chair), Public Administration, Finance, Agriculture, Land and Fisheries, Works and Transport, Attorney General and Legal Affairs, Health, and Planning and Development.23 23
Trinidad and Tobago, Strengthening of the Single Electronic Window for Trade
and Business Facilitation (TT-L1044). 84
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When the project started it identified a number of agencies that operated in the import/export business. They are both private and public sectors agencies. Figure 3.4 identifies the organisations, level of influence and roles.
Figure No 3.4. Organizations involved in a SW system: Level of InfluenceRole Organization
Level of Influence
Customs & Excise Division, Ministry of Finance (MOF)
High
Port Authorities
High
Transporters and Shipping
High
Agents
Role Customs procedures are mandatory in the movement of goods across borders. Customs offices are based at all major entry/exit points countrywide. • To collect and account for customs and excise taxes including import duty, excise duty and VAT on imports. • To collect on an agency basis, Import Declaration Forms and Inspection fees. • To collect trade statistics. • To facilitate trade and protect the society from the illegal entry and exit of prohibited goods. • Provide the necessary facilities for docking of ships and planes, loading and unloading of cargo. • The interests of these agencies are served by maximising the total revenue from user charges for their facilities. They therefore need to (i) ensure that their charges do not serve as a disincentive to exporters and importers to use their facilities and (ii) that the time needed and predictability to move goods through their facilities are kept to a minimum. • Efficient and cost effective transport systems are necessary to facilitate movement of goods to intended destinations. • Whilst charges need to be high enough to provide an appropriate return on capital, these agencies need to recognize the elasticity of trade with respect to transport cost has been found to be particularly high so that their aim of maximising profits may be best served by keeping charges low. Charges that represent rents extracted as a result of market power may actually fail to maximize profit in the long run.
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Organization Bureau Standards (TTBS)
Level of Influence
of
High
Ministry of Trade & Industry (MTI)
High
Ministry of Agriculture, Land & Marine
High
Ministry Health
of
High
Ministry of National Security (MNS)
High
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Role • Inspect the quality of imports at points of entry. • To ensure that consumers are protected at the lowest costs and reduce the amount of defective or dangerous goods entering the country. • To promote an environment for businesses to compete globally. • To promote greater trade between Trinidad & Tobago and its regional and international trading partners. • To reduce the risk and costs of trade to businesses and consumers. • To issue export licenses to manufacturers. • Individuals and businesses (wholesale importers) wishing to import live animals and animal products are required to apply for an import permit from the Ministry of Agriculture, Land and Marine Resources prior to the import’s entry into Trinidad and Tobago. • Issuing of phytosanitary, health certificates for exports. • Inspection of plant and plant produce at ports of entry and exit. • Importers and manufacturers of food or drugs in Trinidad and Tobago must have their goods inspected and approved by the Chemistry, Food and Drugs Division (CFDD) of the Ministry of Health. • The CFDD is the local regulatory and standards monitoring agency that monitors all aspects of the importation, manufacture, storage, distribution, sale, fraud and deception in labelling and marketing, and disposal of food and drugs. • Inspection and approval must be sought prior to the importation, manufacture or sale of the particular foods or drugs. • Provide immigration services to travellers into and out of Trinidad & Tobago • Responsible for approving imports of firearms, guns, explosives etc. • Eradicate drug smuggling into Trinidad & Tobago. • Police & monitor the trade transactions to identify potential illegal trade.
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Organization
Level of Influence
Ministry of Public Administration
High
Freight Forwarders
Moderate
Central Statistical Office (CSO)
Moderate
Trade Organizations – TTMA, Business Development Company (BDC), Chamber of Commerce etc.
High
Banks
Moderate
Shipping Agents
High
Customs Brokers
High
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Role • Responsible for transforming the country into a knowledge-based economy • Provide various public services to the citizens. • It also provides a ‘One-stop-shop’ for government services. • It acts as a CIO to the different ministries. • Ensure internationally traded goods move from point of origin to their destination to arrive at the right place, in good time, in good condition and at the most economic cost. • Ensure compliance with statutory requirements such as Customs regulations. • Provide logistical support to clients such as leasing with transporters for speedy and reliable service at optimal cost. • Collect statistical data on Trade volumes on imports and exports. • Easy access to the almost real time and accurate data on Trade statistics will enable the CSO to publish data quickly so that various government departments can make strategic decisions quickly and efficiently. • Lobby government and its agencies on trade issues that concern their members. • Advocate for the interests of their members at the various forums therefore encouraging a consultative process which benefits all. • Issue Certificates of Origin to exporters for their goods. • Collect VAT and duty payments. • Cross verify the permit issuance with approved transactions. • Submit electronic manifests to the customs • Goods importers or exporters provide information related to the transit of goods using the custom brokers. Custom brokers, using the SW shall file the declarations on behalf of the importers or exporters.
Source: Elaborated by the author
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TTBizLink implemented the Single Window in 2009. After three (3) phases of development, and with more than 6,500 registered users, TTBizLink currently hosts forty seven (47) transactional e-services administered by twenty four (24) government departments across ten (10) separate Ministries and has substantially reduced the need to send duplicate and repetitive information to multiple agencies, improved information sharing among government agencies and removed many of the inconsistent and fragmented trade and business processes which existed. The following agencies and ministries are stakeholders on TTBizLink: ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢
Central Tenders Board Trinidad & Tobago Coast Guard Customs & Excise Division National ICT Company Ltd (iGovTT) Inland Revenue Division Maritime Services Division The National Insurance Board Port Authority of Trinidad and Tobago Animal Production and Health Division Point Lisas Industrial Port Development Corporation Plant Quarantine Services American Chamber of Commerce Chemistry Food and Drugs Division The Shipping Association of Trinidad and Tobago Environmental Health Unit Trinidad and Tobago Bureau of Standards Registrar General’s Department Trinidad and Tobago Chamber of Industry and Commerce Immigration Division Trinidad and Tobago Manufacturer’s Association Work Permit Secretaria Investment Directorate ExporTT Limited
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In Figure 3.5 the times for many of the processes has been reduced by 75% in the operation of the SW. For example obtaining an eCertificate of Origin has been reduced from 1 Day to 30 minutes. Whilst there has been successes in these areas many problem still exist. The Global Competitiveness Report 2014-2015 ranks Trinidad and Tobago 89th out of 144 countries and the 2015 Doing Business Report, ranks the country 76th out of 189 economies, taking an average of 11 days and US$843 (per container) to export, and 14 days and US$1,260 (per container) to import, significantly higher than leading countries such as Singapore (6 days and $460 to export, and 4 days and $440 to import).
Figure No 3.5: Reduction in Processing times Service
Result
e-Company Registration
Processing time reduced from 7 days to 3 days
e-Work Permit
Processing time reduced from 6 weeks to 2.5 weeks
e-Import/Export
Permits
&
Processing time reduced from 4 weeks to 1
Licences
day
e-Certificate of Origin
Processing time reduced from 1 day to 30 mins
e-Fiscal Incentives
Processing time reduced from 6 weeks to 11 days
e-Import Duty Concession
Processing time reduced from 6 weeks to 12 days
e-National
Insurance
Board
Processing time reduced from 30 days to 1
Registration
day
e-Company/Partnership BIR
Processing time reduced from 30 days to 1 days 89
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e-Company VAT Registration
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Processing time reduced from 30 days to 2 days
e-Goods Declaration
Processing time reduced from 4 days to 1 day
Source: TTBizLink.gov.tt
Although the achievements have been well listed, there are a number of shortcomings in the operation of the SW. These have been cause of great concern since they have affected the ratings of Trinidad and Tobago in the Doing Business Report and the Global Competiveness Report. The gaps which have been identified in the operation of the SW are: i.
the SW has not achieved interoperability with all the information systems within key logistics stakeholders (such as the Customs and Excise Division, the Port Authority of Trinidad and Tobago and the Port of Point Lisas) as well as international interoperability with main trading partners; ii. current operational processes in key agencies such as Customs and Excise Division are not in line with international best practices and require an in-depth business process reengineering to further simplify and automate processes; iii. although TTBizLink is available 24/7, government agencies process operations from 8am to 4pm; iv. the current risk management system in the Customs and Excise Division, as well as within the other major regulatory agencies, is rudimentary at best and requires substantial improvement; v. national legislation needs to be reviewed and updated to conform to the new operating environment and facilitate the transition to a paperless environment; vi. there is currently no electronic payments solution on the SW; vii. lack of a Business Continuity Plan and Data Recovery Solution for the SW; and viii. institutional Governance of the SW requires strengthening in order to ensure its long-term sustainability.
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See Figure 3.6 for a more detailed description of the problems and proposed interventions. Figure No 3.6.: Proposed Interventions for the SW
Problem
Contributing Factor(s)
Impact
Proposed Intervention
Insufficient interoperability between TTBizLink and key stakeholders in the logistics value chain and with trading partners.
Outdated regulatory framework for the exchange of trade documentation.
Increased transaction costs and time for trade operators.
Update business processes, identify technical requirements and implement full integration of information systems between TTBizLink and OGAs. Implement Pilot for the exchange of Certificate of Origins with one relevant trading partner.
High rate of physical inspection of goods by the Customs and Excise Division.
Inadequate risk management system employed by the Customs and Excise Division and OGAs.
It’s estimated that at least 30% of all cargo is currently being selected for physical examination with very low detection rates resulting in substantial additional costs for importers.*
Implement a robust risk management system based on international best practice.
Underutilizatio Government officers n of TTBizLink operate from 8am to
Trade business
and Business process 91
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and lack of auto approvals.
4pm Monday to Friday. Currently the SW still requires human intervention to make basic decisions.
approval processes are only being executed between 8am and 4pm Monday to Friday.
reengineering and progressive implementation of auto approvals for selected processes.
Inability of business community to pay on-line for critical government eservices.
Absence of an electronic payment facility in the Single Electronic Window.
Currently trade operators must physically go to the Customs and Excise Division cashier to make payments in cash. These cashiers operate from 8am to 2pm (Monday to Friday) making it difficult for the business community to efficiently comply with payments which is an essential step to obtain the authorization to release goods.
Integrate the Single Electronic Window with national electronic payment gateway to allow payment processing 24/7.
Risk of breach and loss of sensitive data and availability of e-services.
Absence of a business continuity plan and data recovery solution.
As of June 30, 2015, TTBizLink currently hosts sensitive data for 2114 companies and 4635 individuals which handle
Implement data recovery solution and business continuity plan.
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approximately 95% of volume of trade. Redundant processes and lack of collaboration among government agencies.
Outdated legislation and regulations. Limited number of agreed service standards for delivery services in the SW.
Depending on the type of commodity, the number of documents for import varies from 11 to 15 documents.
Implement business process reengineering, legislation review, and change management consultancies.
Potential failure to finance the maintenance and support of SW in the long term.
Absence of a commercial business model and legal framework to guarantee the sustainability of the SW.
Current maintenance and support cost of the SW is approximately US$3.9 million per year. This figure is expected to increase as system is expanded.
Implement new Institutional governance framework for the SW.
Outdated and cumbersome post incorporation business processes.
Outdated legislation for current postincorporation processes7 requires 100% paper based and human intervention.
Low compliance rate with postincorporation processes. Noncompliance carries a TT$300 penalty per month (US$50) according to Section 5.16 of the Companies Act and the exclusion to participate and bid for government
Legislative review and automation of post incorporation processes on TTBizLink.
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contracts. Inefficient logistics system.
Currently there is no single system that provides a national platform or a one stop shop for the individuals/businesse s and government agencies involved in trade & logistics process in TT to interact with seamlessly.
As there is no single entity managing the communicatio n between all the stakeholders involved in trade,** operators incur higher operational costs as they require additional personnel to manage the manual processes and higher IT costs to communicate with multiple IT systems developed separately by the stakeholders.
Development of a multimodal logistic module for synchronizatio n of logistic services and information across the entire value chain for all cargo originating from or destined to a TT port.
Source: TTBizLink.gov.tt
* The percentage of cargo physically examined in advanced economies is typically 5%-7%. ** Port authorities, terminal operators, customs, shipping lines, shipping agents, depot operators, trucking companies, state tax authorities, banks, cargo owners/shippers, etc.
These are some of the lessons learned in Trinidad and Tobago: •
Need to ensure buy-in of key logistics stakeholders, such as Customs and Excise, and the Port Authorities.
•
Procedures in key agencies need to be in line with international best practises.
•
Substantial improvements to risk management systems in key agencies are necessary for efficient operation of the SW.
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•
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Technological solutions must be coupled with updates to legislation and procedures.
•
Online payment system is necessary for critical government eServices.
•
There is a need for one stop shop for all involved in trade.
The principle obstacle identified was insufficient interoperability between TTBizLink and key stakeholders in the logistics value chain and with trading partners. The IDB and the Government of Trinidad and Tobago have agreed to expand the operations of the SW.
This project will support the
expansion of the current SW and will benefit the private sector of Trinidad and Tobago, regardless of industry and operations volume, and in particular the trading community in the following industries: oil and gas, methanol, ammonia, urea, steel products, beverages, food processing
and
agriculture
(cereal,
sugar,
cocoa,
citrus
fruit,
vegetables, flowers), cement, and cotton textiles. Furthermore, the stakeholders as well as the end users will also benefit from the expansion of the SW through the optimization and simplification of trade and business processes and capacity building. Finally, the government agencies involved in this operation will also benefit from the
reengineering,
and
automation
of
cumbersome
and
often
redundant business processes. This will translate in improved compliance, optimized revenue collection, and a more effective and efficient deployment of resources.
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Unit summary
In this unit we examined a number of SW implementations or proposed initiatives in El Salvador, Nicaragua, Costa Rica, and Trinidad and Tobago.
There is a SW for the processing and registry of exports in El Salvador. CIEX is constituted as a Single Window system the object of which will be to centralize, accelerate and simplify legally established procedures for the registration, authorization and issuing of documents from different institutions and dependencies involved in imports and exports.
In Nicaragua, there is only the Export Single Window known as Centro
de
Tramites
de
las
Exportaciones
(CETREX),
which
operates manually and electronically. CETREX is a public entity that offers services to the export sector. The computer system it utilizes is called SWE-SiTrade.
Costa Rica has already consolidated a foreign trade Single Window environment integrated with the customs management system. The Sistema Integrado de Ventanilla Única de Comercio Exterior is software that permits exporters to conduct export procedures from their offices by the use of pre-sealed Customs Export Declarations (DAE) or the Formulario Aduanero Único Centroamericano (FAUCA) [Single Central American Customs Form] and without time-of-day restrictions. The system provides a special print module to print pre-sealed forms that can be acquired at a cost similar to that of traditional forms.
Trinidad and Tobago has implemented a SW which is operated under the name TTBizLink. A review of the operations has identified a number of problems which has hampered the smooth functioning of the SW. the IDB and the Government of Trinidad and Tobago to enhance and expand the operations of the SW in order to correct these weaknesses.
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Unit IV. International experiences in creating a Single Window environment
Learning objectives
•
To analyse single window implementation outside of the Latin American and Caribbean region
•
To understand how single windows can be operated by different agencies in different countries
•
To examine the different methods used internationally to introduce single windows
IV.1. Introduction
This section presents cases of reference at the international level, examples of single window experiences in different countries. It attempts to compile lessons learned and emphasized by these experiences. Curiously, the lessons learned are conditioned in part by the profile of the organization that leads the Single Window. Each of the experiences emphasizes some aspects more than others. It is also interesting to observe that all the Single Window initiatives analysed have different components that make the experience lived unique and difficult to replicate in the same manner in other countries.
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IV.2. Republic of Korea
Overview Korea's Single Window is one of the 5 sub-systems which is part of the e-clearance system (UNI-PASS) tailored to Korea. It contains a function of Logistics Single Window to submit arrival/departure reports of air crafts or vessels to various relevant agencies and a function
of
Clearance
Single
Window
to
process
customs
import/export declarations as well as requirement verification by related agencies in a single format. The Logistics Single Window enables a single submission of an integrated
e-document
and
automatically
distributes
relevant
information to related agencies which used to have duplication of similar data such as arrival/departure reports of air crafts or vessels and air/sea crew manifests at times of arrival or departure submitted by airlines and shippers to a number of border control agencies including the Customs, immigration, quarantine, and airports/ports in different formats. The Clearance Single Window allows the declarant to submit an integrated e-document to the Single Window once for the process of permission, approval, and recommendation on imports/exports. It automatically transmits the related information to the corresponding OGAs (Other Government Agencies) and provides one-stop service for verifying requirements as well as all related clearance procedures without having to visit the Customs or related OGAs. In addition, for better utilization of the Single Window a user convenience function, statistics service, as well as e-payment service for
customs
duties
and
taxes
are
reflected
into
the
system
architecture. E-certification is also introduced in the context of
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enhanced
privacy
and
security
Module 6
protection
of
the
information
transmitted B2G and G2G.
Figure 4.1. Linkage of the Single Window and UNI-PASS
History of Korea’s single window The background of the development of Korea's Single Window has bases on rapid economic growth of Korea. Korea continued to have sharp economic leaps. From the 1970s to 2015, the trade volume has increased by 316 times, from US$ 2.8 billion to US$ 88.58 billion and international travelers by 117 times, from 460 thousand people to 53.97 million people. The workload also increased very rapidly. To address the challenges, the Korea Customs Service (KCS) developed UNI-PASS on the basis of computerization and automation as countermeasures, and the Single Window was developed in the same context. It is in the same view that international standards such as ‘WCO Revised Kyoto Convention’ recommends its Members to establish a system enabling a single entry for the purpose of 99
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exchanging various data such as quarantine certificates between the Customs and traders. Through availability and sharing of logistics information through Single Window, the KCS aimed at achieving reduced logistics cost and increased user convenience in the environment of rapidly increasing trade volume. In September 2004, with the KCS as a lead agency, the Single Window service began with the 8 OGAs responsible for verifying requirements relating to food inspection, plant quarantine, drugs, etc. Since then, the number of agencies linked to the system has expanded each year and as of late 2015 a total of 39 OGAs and related
stakeholders
(such
as
associations
mandated
by
the
government to verify requirements) are integrated. In addition, about 430,000 logistics companies in supply chains which include traders, customs
brokers,
shippers,
airlines,
carriers,
and
warehouse
operators are connected.
Connectivity and accessibility Korea's Single Window adopted the latest WCO data model and is equipped with an integrated e-document transmission system by applying standardized items and 55 document forms. This enables not only online transmission and sharing of information between the KCS and OGAs, but also provision of real-time information on clearance and processing results to declarants through the Single Window. Methodology for connecting with OGAs depends on establishment of paperless work environment in those agencies. If an agency has an operation system, it is linked through the Single Window module of the UNI-PASS. A user submits an application for requirement verification through the Single Window and it is automatically transmitted to the corresponding agencies and then the processing 100
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results are sent to the applicant through the Single Window. The Authorized Service Program is also built on the Single Window to support agencies with no internal systems to access the Single Window and conduct electronic application procedures such as examination, approval, issuance, receiving and sending data. The Single Window system of the KCS is established on the Internet basis. It is accessible through “http://portal.customs.go.kr�. Through the Internet, with one ID at a single channel, the application for requirement verification and customs import/export declaration are required to be submitted only once. The Single Window system can be accessed just like other ordinary Internet sites. Anyone can access the system with the ID issued by the KCS and a password to fill out requirement certificates and send declarations. Officials of OGAs such as the Ministry of Food and Drug Safety examine received declarations on the Single Window screen to determine the necessity for physical inspection or supplementation of documents. If no abnormality is found, the OGAs transmit inspection or quarantine certificates to the declarant and the Customs. The results of verifying requirements by the OGAs are automatically transmitted to the Customs. Through UNI-PASS, import/export declarations are examined and processed. Through the Single Window, declarants can search the current status of the process for acceptance, examination, and approval by the OGAs as well as the results in the process of examination, inspection, processing of declarations by the Customs in real time. The processing status of declarations is provided via SMS (Short Message Service) or e-mail through the Single Window.
Benefits
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Through the Single Window, Korea has enjoyed benefits of saving a great deal of time and cost. By providing the application for requirement verification and the import/export declaration, it is estimated to reduce logistics processing time to a day on average with the effect of saving US$ 51.54 million per year in logistics cost. In 2009, the Single Window was selected as best practice in Doing Business by World Bank and it was introduced that UNI-PASS including the Single Window brought the effect of saving US$ 2 billion annually in logistics cost.
Figure 4.2. Benefits from Single Window establishment in Korea
Time Saving
Cost Saving
The single window system enables the user to present an application for regulatory permits and customs declaration in a single format, reducing the time for preparing the customs declaration.
The single window system has contributed to reducing logistic costs by providing faster clearance. Annual cost saving in logistics has increased exponentially since the implementation of the single window system.
Sharing experience and knowledge The KCS has strived to share with other countries about Korea’s experience and knowledge in the Single Window and related customs administration.
To
date,
the
KCS
has
been
involved
in
SW
establishment in 3 countries including Ecuador, and wishes to share its knowledge and experience in the SW with IDB Member countries.
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IV.3. Spain
The Single Window environment in Spain is led by the public sector with three large promoters of the creation of a single window service to strengthen trade and simplify procedures for citizens as well as businesses: •
The
Agencia
Española
de
Administración
Tributaria
[Spanish Tax Administration Agency (AEAT)
and, in
particular, the Department of Customs that has implemented electronic Customs (e-Customs) following European guidelines and seeking to guarantee simultaneous achievement of trade facilitation at all times, better risk analysis, greater control and security in operations and better oversight and collections of taxes and duties. •
The Spanish Port System, coordinated by State Ports under the Port Authorities, seeks to optimize the efficiency of its infrastructure, take
maximum
advantage
of infrastructure
capacity, comply with its regulatory protection and security functions, maintain collections to guarantee a sustainable transportation infrastructure and serve as coordinator and leader of the port community as a necessary and indispensable step in carrying out these functions successfully. •
Foreign Trade Regulatory organs, committed to guarantee that trade develops in a secure manner in all its phases (security and quality of the products, sanitation security, plant and animal health and safety)
These three types of institutions have been developing and adapting their information systems over the years with the objective of a better execution of their commitments and compliance with their responsibilities. However, and even though this strategy has given 103
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rise to the appearance of several information technology systems, they have respected the principle of a Single Window environment in which, if a declaration is submitted to one agency of the government, that same declaration no longer needs to be presented to any other agency, either on paper or electronically. Acceptable collaboration and interoperability channels have been created for the information from the declarations to be shared in the form needed, immediately and recognized on a normative and legal basis. Figure 4.3. Establishment of communication channels between public organs.
Source: Valenciaport Foundation
To reinforce the Single Window environment in Spain, the more important Port Authorities in Spain have developed community port systems that favour the integration of physical operations with administrative
procedures to strengthen the
security-facilitation
binomial. These community port systems can be visualized as a virtual table seating all those participating in the port community,
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joined by connection channels and access to Single Window systems made available by public organs. Figure 4.4. Port community service systems.
Source: Port Authority of Valencia
Among the lessons learned in the process of creating a Single Window environment in Spain, the following aspects stand out. Several of them were presented in Module 3: 1.
There must be a strong commitment and joint desire on the part of the Administrations affected in 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 collaboration
channels
between
the agencies
and
organs
involved. The reception of documentation by the mechanisms established by the single windows must take effect and be recognized
by
each
of
the
agencies
and
organs.
This
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collaboration must also last over time in order to coordinate the changes that become necessary because of amendments to the legislation and norms or imposed by technological evolution. This commitment to the creation of an interoperable single window environment must be motivated by a mutual interest in achieving this type of simplification or be determined by legislation that establishes the requirement. On many occasions this commitment materializes on the basis of legislation that formalizes the framework of institutional relationships required to create a Single Window. 2.
It is highly convenient to develop pilot experiences that demonstrate
the
feasibility
and
convenience
of
an
interoperable single window environment in those cases in which the creation of this type of service is not determined by legislation. In most cases it will be necessary, during this experience, to identify and agree to operational procedures between the administrations involved that may even lead to changes in existing norms. By all means, during this
experimental
period,
electronic
data
interchange
procedures can continue to offer advantages in the application of interoperable of single window environments. 3.
Existing legislation and norms often require modification to offer legal coverage to the electronic transactions implied by a Single Window. Once the advantages of the application of the interoperable single window environment have been demonstrated, and in order to obtain a legal base that
offers
support
to
such
electronic
interchanges,
a
modification of existing legislation may be required. It is more and more common, however, for applicable legislation and norms to already be adapted to this type of solution (laws in regard
to
electronic
signatures,
for
example,
electronic
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procedures, etc.), in which case the legal process involves no delay in the effective application of the interoperable single window environment. In case some legislative adaptation must be realized, however, such a change could involve a considerable delay in the effective
adoption
of
the
interoperable
single
window
environment. In these experiences the conditions for creating win-win results in which all the participating of the process can see benefits in the change process must be sought at all times, avoiding the appearance of barriers to adoption. 4.
Interoperability is the critical aspect, considering the interchange of information between different Single Window
systems
that
must
interact
and
share
information. On occasions it may be convenient to create an integrating system to orchestrate different single window systems. It is also important to consider organizations that produce a high daily transaction volume and which, therefore, need automatic, unattended electronic data interchange solutions. Small organizations produce a lesser volume of transactions but, in conjunction, may account for a high percentage of the declarations
submitted
to
the
administrations.
Also,
the
possibility must be considered of submitting the declarations on paper as well as in electronic form in order to confront temporary
situations
in
which
declarations
cannot
be
transmitted electronically for technical reasons. Harmonization of the different interfaces utilized in single windows must take into consideration all those recommendations and standards at the international level on the part of organizations such as UN, WCO, WTO, UN/CEFACT, etc.
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Module 6
The adoption of a system by the users, public as well as private, is a critical aspect of consolidating telematics procedures.
Electronic
transmission
of
documents
offers
significant advantages for the Administration and the declarant agents. Adopting it, however, often implies a change of internal organization processes and investment in technologies that can delay adoption of the systems. Change management and the definition of an adequate model adapted to the situation existing in each country will be fundamental to effectively implementing an interoperable single window environment. This environment must always be framed within a process of continual improvement, with the support of the different public organs, private actors, participating multilateral institutions, and key international agencies. 6.
In reference to the governance of the Single Window environment,
natural
leadership
offers
the
greatest
guarantee of success. This means that the agency that has the ultimate responsibility for the process should lead its inclusion. Thus, for example, in those procedures and functions for which the customs administration is responsible, the entity that should be leading is customs; in those processes in which the responsible entity is the Port Authority that entity should lead. When there are processes in which there is a coresponsibility the leadership should be exercised by the entity most interested in its inclusion or a commission that represents the co-responsible institutions. 7.
The
inclusion
of
a
process
in
the
Single
Window
environment on behalf of an organ of government that has no responsibility for the process is going to generate much less interest and less guarantee of success. All the
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public organs should therefore see themselves strengthened in compliance with their mandates and responsibilities and feel coresponsible for the Single Window environment. The perception of the entity that leads the initiative is positive since it will proactively promote its adoption, but leadership must not be confused with exclusivity, nor should leadership be confused with operation or investment, the latter figures being different for the entity that always exercises leadership under adequate formulas of governance and control. At this point the creation of a taxonomy of services such as presented in Module 3 could be particularly relevant.
IV.4 Sweden
The Single Window environment of Sweden is very similar the one in Spain. In respect to the lessons learned reported by customs, identifying and offering efficient solutions for the processes and procedures utilized by different clients is important to creating a critical mass for its adoption, listening to the requirements and petitions of the final users, involving them from the beginning. First focus must be on the more important processes based on client priorities and taking into account that the greater value for public services will be obtained covering the largest volumes first, utilizing flexible authentication mechanisms that generate adequate security and technology interfaces that are comprehensible and attainable to facilitate their adoption by the small as well as the large enterprises.
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V.5. Senegal
The Single Window of Senegal called ORBUS was begun by the Ministry of Commerce with the objective of reducing the time and cost of customs clearance, improving the quality of service offered to importers and exporters and eliminating bureaucracy. Afterwards, the initiative was transferred to Customs as that administration requires all the documents treated by the Single Window. There are 23 procedures covered by the Single Window, among which are: the declarations prior to importing, authorization of change, releasing of goods, certificates of origin, invoices and the sanitation, plant and animal health certificates. The Single Window in Senegal has a single computer system because the participating agencies have no computer systems available. These are some of the lessons learned in Senegal: •
Necessity of a strong government involvement – Political Will
•
Customs Leadership
•
Existence of a public-private association
•
Creation of an autonomous entity to develop and operate the SW.
•
Informative regular meetings with those participating
•
Begin with the mapping of existing rules and the definition of processes in a preliminary manner to undertake any type of information technology development
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•
Module 6
Make small changes or do not even modify the rules so that the personnel on the ground are not afraid of the system.
•
It is easier to adopt standards and simplify when incorporation more participants into the system.
•
It is very important to take the time to create an environment of confidence and describe the objectives and functions in a comprehensible manner to obtain the necessary support. First you need to clearly define what is it that you want to do.
The principle obstacle identified was resistance to change, due to the perception of a reduction of personnel by the introduction of information technologies.
IV.6. Mauritius
Mauritius can be considered, along with Singapore, as an example of how a small economy has managed to implement a Single Window system. In fact the system in Mauritius inspired the one in Singapore. In a way, the smaller the country, the simpler the process of Single Window environment creation is, as it is much easier to achieve collaboration and unify the interests of the different agencies of government in such cases. But on the other hand, the capacity to invest in this type of system can be much more complicated, as there may not be a sufficient economy of scale for the benefits that derive from its introduction to justify the level of investment required (obviously this would not be the case of Singapore). One of the main lessons learned reported by Mauritius is the importance of a commitment on the part of all the participants, achieving public-private participation in the enterprise created to exploit Single Window services.
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The principle obstacle confronted was the necessity to change the ASYCUDA customs management system they had, as their ASYCUDA implementation could not connect with the Single Window system, which led them to replace it with a more open solution, which caused a two-year delay in finalizing the solution.
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Unit summary
In this unit we looked at the implementation of the SW outside of the Latin American and Caribbean regions.
In Korea the SW is one of the 5 sub-systems that form the Korea’s UNI-PASS e-clearance system. It contains a function of the Logistics Single Window to submit arrival/departure reports of aircraft and vessels to various relevant agencies and a function of Clearance Single Window to process customs import/export declarations as well as requirement verification by related agencies in a single format.
In Spain, the Customs is one the public sector agencies leading the SW. Along with the Port and Foreign Trade agencies the
Customs
have
been
developing
and
adapting
their
information systems over the years with the objective of a better execution of their commitments and compliance with their responsibilities. However, and even though this strategy has given rise to the appearance of several information technology systems, they have respected the principle of a Single Window environment.
In Senegal, the SW was begun by the Ministry of Commerce. It was later transferred to Customs.
One of the main lessons learned in Mauritius is the importance of a commitment on the part of all the participants, achieving public-private participation in the enterprise created to exploit Single Window services.
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Unit
V.
Toward
an
Module 6
interoperable
single
window
environment
Learning objectives •
To review the fundamental pillars of implementing a single window
•
To understand the significance of the WCO Safe Framework of Standards and Guidelines in establishing a single window
•
To review the requirements to establish an action plan for the creation of a single window
V.1. Introduction
Taking into account the Routing Sheet and Action Plan agreed to among the countries participating in the March 2011 FMI/CAPTAC-DR, WCO and IDB Electronic Single Window Seminar held in in Antigua, Guatemala, the SW must be based on the following fundamental pillars: 1.
Commitment of the public administrations to construct a Single Window environment and achieve adequate political support; there must be high level political will.
2.
Conceptualization of the Single Window as a national project.
3.
Issuance of a clear and coherent legislative institutional coordination framework.
4.
Definition of a negotiating project that establishes objectives and guarantees their sustainability.
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5.
Module 6
Existence of an adequate source of financing to develop a system with projection to ensure its interoperability with other regional entities and organs.
While the Single Window environment transcends the Customs functions, its functioning requires customs participation. The SW can be a factor in modernizing customs. However, it must be taken into account that the Single Window and the modernization of Customs feed into each other, and also assist in the modernization of other trade sectors. A Single Window environment must allow completing clearances on the border, whatever the treatment (export, import or transit), simultaneously
facilitating
control
and
the
release
of
goods,
eliminating manual processing on the border. The Routing Sheet must create a framework of relationships and interoperability of the different initiatives and Single Window environments created in each one of the countries and take advantage of the other SW systems (such as TIM in Central America) as assets to be utilized and extended in the process to introduce complete traceability of operations from the origin to its final destination. For that, the following aspects, which were presented in Module 5, must be taken into account: 1.
Establishment of a regulatory framework, fixing of objectives and stages of implementation.
2.
Execution of an analysis of good practices and a study of norms, human, economic and technological resources.
3.
Review of processes and simplification of procedures.
4.
Definition of the Single Windows model and interconnection strategy and linkage of entities and systems.
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5.
Module 6
Creation of a working team and the involvement of the government entities that will participate.
6.
Ongoing training of the public and private sector.
7.
Selection of the available technology.
8.
Definition of the processes, schedule and objectives
9.
Analysis of risk management.
10. Definition
of controversies between institutions and private
entities. 11. Analysis
of result (follow-up).
The introduction of more efficient administrative processes will significantly reduce the cost and time required in the transactions necessary to comply with customs formalities and with each of the regulatory and goods inspection agencies and organs at the border. At the same time they will simplify, standardize and harmonize trade procedures, favouring the free movement of goods, improving transparency and traceability in compliance and the application of laws, regulations, and procedures, strengthening the communication of information between businesses and the government (B2G), between the different government agencies (G2G) and between the government and business (G2B). It is advisable to apply international standards in the rationalization of processes, harmonization and standardization of data. There is a broad consensus that this type of project must be led by the public sector. Thus, it is the government who must lead and instruct although coordination can be performed by the public sector or by the private sector or by a combination of the two. However, the participation of the private sector is paramount in implementing the Single Window environment to ensure its success.
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The implementation must be carried out by a collaboration of the public and private sector, and the role of the actors must be clearly defined; whenever required, the responsibilities of each must be spelled out by a norm. Among the single windows identified in the region, we find initiatives in different stages of advancement, presently covering individual aspects of import, export and transit operations, or they consider all the foreign trade operations in an integrated manner. Obviously, the objective would be to create a Single Window environment that treats all foreign trade operations in an integrated manner with an orientation to services perfectly orchestrated between the existing systems and accompanied by a framework of customs modernization in order to achieve those objectives. Two types of declarations are especially important 24: the customs goods declarations, by means of which the declarant, following the prescriptions of Customs, submits all the necessary details of goods involved
in
a
foreign
trade
operation
indicating
the
customs
procedure to be applied to these goods, and the declarations of entry, temporary storage and exit of goods (also known as manifests
or
cargo
declarations),
by
means
of
which
the
transportation operator provides the details Customs requires upon the arrival or departure of such goods to the customs territory. In some
cases
such
as
TIM,
transnational
systems
have
been
implemented that allow various declarations to be combined into a single integrated declaration.
24
Revisiรณn y compatibilizaciรณn de procesos [Review and Reconciliation of Processes]. Port
Authority of Valencia. Seminario and experiencias de Ventanilla ร nica electrรณnica [Electronic Single Window Seminar and Experiences]. Antigua, Guatemala. CAPTAC-DR. 2011.
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That causes no problems as to the authenticity of the information if all these declarations are controlled by a single economic operator recognized in each of the countries and the region (in this case the transportation operator or his agent). This case is shown in the following figure, where the different declarations required in the commercial flow appear in the course of their travels through different countries. It also shows that TIM manages to unite the declarations of exit, international transit and entrance of the different countries through which the transit passes into a single transaction. Other simplification operations within the corridor could be found, for example, in the creation of a joint exit-entrance declaration valid for countries with common borders (whether land as in the case under study, maritime or air). Figure 5.1. Goods declarations and cargo declarations along the commercial flow.
Source: Elaborated by the author
The WCO SAFE Framework of Standards and Guidelines for the Integrated Management of the Supply Chain are especially significant, as are the rest of the tools that were presented along these lines in the Module 2 of the course. These are unique international instruments that attempt to establish a more secure trade regime and a framework of collaboration between the Customs administrations and between Customs and the economic operators, introducing the figure of the Authorized Economic Operator. 118
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These guides provide the customs authorities with a set of criteria and implementation options very useful at the time of reviewing and harmonizing the processes to be considered in foreign trade single windows. These changes of procedures must take into account technological changes and the reorganization of human resources that may be needed. It may be concluded that it will often require a reengineering of processes, a standardization of tasks and the elimination of redundancies and paper. Nevertheless the development of a Single Window environment never ends. It must remain in permanent evolution. A critical point to consider in improving procedures consists of the importance of providing quality information at the precise moment at which correct intelligence must be applied through customs control and
risk
management
mechanisms,
in
contrast
to
compiling
enormous quantities of information unnecessary to the completion of processes associated with requisite functions. Thus the design of processes inherent to single windows must assign priority to the availability of the minimum of information strictly necessary at the precise moment to enable a correct analysis of risks involved and allow the inherent functions of the appropriate public agencies to develop at the instant in which they require that information. Another very important action consists of making sure that the information
is
reliable,
coherent
and
reusable
in
subsequent
processes without the necessity of having to ask for it again.
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The best solution for feeding information to the control and oversight processes associated with a Foreign Trade Single Window is not to ask for all the information electronically at any specific moment, as that demand may delay execution of the associated
logistics
operation due to the impossibility of knowing or having all the information available in adequate form. The best solution for feeding information to the control and oversight processes associated with a Foreign Trade Single Window and goods moving across the border comes from attempting to integrate these processes with existing information flows and commercial processes, automating to the maximum the acquisition of the data at the precise moment it is required (for example, utilizing information coming from such commercial documentation as invoices, buy-sell orders, etc.). Then that
data
information
can to
be
compared
increase
data
with
other
reliability
available
and
sources
coherence,
of
detect
additional risks due to discrepancies caused by errors or possible fraud and, finally, sharing that quality supply chain information not merely with other public organs, but also with other operators related to the supply chain. Of course consideration must be given to applicable rules in regard to privacy and the protection of sensitive data. The objective is for the movement of goods along the logistics chain to be carried out, not only in the most reliable and secure manner possible, but also in the simplest, most rapid manner, making all the operations connected to international transportation more efficient.
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To complete this module, it would be appropriate to ask yourself, on the basis of the lessons learned and the cases of reference studied, if you could establish an Action Plan that permits the creation of an Interoperable Single Windows environment. This same question was dealt with during the seminar on electronic Single Window Models and Experience and the following stages, presented in the preceding module, were established: 1.
Define the scope of the Single Window and establish a schedule.
2.
Review tendencies, establish benchmarks.
3.
Define the processes to implement and the data.
4.
Define the business flow and reorganizations that should be made. Re-engineering.
5.
Establish the business model.
6.
Source of political resources and support.
7.
Define the model to adopt.
8.
Develop the model.
9.
Implementation and putting in motion.
10.
Cyclic phase of adjustments and improvements.
11.
Follow through.
In regard to these defined stages it is appropriate to apply all the knowledge acquired in this course. Mentioning the KAIZEN or LEAN philosophy described in the preceding module (module 5), continual improvement is attained by everyone applying small changes and improvements every day and in all places. All the participants are equally important in this change process and we must all be involved to attain the objectives sought, facilitating the trade of our respective countries and regions. In definition, ALL OF US ARE A PART OF THE SINGLE WINDOW ENVIRONMENT.
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Unit summary
This unit summarizes the entire course and presents the conclusions towards an interoperable SW. It
emphasizes
the
importance
of
public
and
private
sector
collaboration. In order to achieve the objectives we must continue to work on the initiatives already started. The WCO SAFE Framework of Standards and Guidelines for the Integrated Management of the Supply Chain are especially significant. These are unique international instruments that attempt to establish a more secure trade regime and a framework of collaboration between the Customs administrations and between Customs and the economic operators. The objective is for the movement of goods along the logistics chain to be carried out, not only in the most reliable and secure manner possible, but also in the simplest, most rapid manner, making all the operations connected to international transportation more efficient. To conclude, it would be appropriate to ask yourself, on the basis of the lessons learned and the cases of reference studied, if you could establish an Action Plan that permits the creation of an Interoperable Single Windows environment.
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Bibliography
The
following
is
the
bibliography
and
support
documentation
consulted in the preparation of this Module: •
(2010). Manual Único de Procedimientos Aduaneros de la Región
Centroamericana.
[Single
Manual
of
Customs
Procedures in the Central American Region]. •
CAPTAC-DR, Ventanilla
IDB. Única
(2011).
Seminario
electrónica
y experiencias de
[Electronic
Single
Window
Seminar and Experiences]. •
Inter-American Development Bank (IDB). (2010). Certificación Electrónica Digital. I Taller de Ventanillas Únicas de Comercio Exterior: consideraciones y propuestas para la acción regional en el marco del Foro del Arco del Pacífico Latinoamericano. [Electronic Digital Certification. Workshop I: Foreign Trade Single Windows: Considerations and regional action proposals in the framework of the Latin American Pacific Rim Conference]. SELA.
•
Inter-American Development Bank (IDB). (2010). Taller de Certificación de Origen Digital [Digital Origin Certification Workshop]
•
Inter-American Development Bank (IDB). (2011). Estrategia Sectorial de Apoyo a la Integración Competitiva Regional y Global [Sector Strategy of Aid to Competitive Regional and Global Integration].
•
Inter-American Development Bank (IDB). (2011). Estudio de Facilitación del Comercio en el Proyecto Corredor del Pacífico y Países Mesoamericanos [Study of Trade Facilitation
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in the Pacific Corridor and Mesoamerican Countries Project]. External Author. •
Inter-American
Development
Procedimiento
Mesoamericano
Bank
(IDB).
de
(2011).
Tránsito
TIM
[Mesoamerican Transit Procedures (TIM)]. •
Inter-American Development Bank (IDB). (2016). Trinidad and Tobago, Strengthening of the Single Electronic Window for Trade and Business Facilitation (TT-L1044).
•
Portal TIM. (2011). Available at: http://www.tim.sieca.int
•
Sistema Económico Latinoamericano y del Caribe [Economic System
of
Ventanillas
Latino Únicas
America de
and
the
Comercio
Caribbean].
Exterior
(2011).
(FTSW)
en
América Latina y Caribe: avances y retos [Foreign Trade Single Windows (FTSW) in Latin America and the Caribbean: Advances and Challenges. •
World Customs Organization. (2011). How to Build a Single Window Environment, WCO Compendium. Chapter 1.
124