Customs perspective on IATA e-freight implementation
WCO program: The pillars of WCO Customs to Customs Ensure better security against terrorism through effective risk- assessment Mutual recognition of Customs administrations and co-operation Business to Customs Traders submit data to customs through advanced electronic information Export/import t declarations (goods & cargo) based on a common standard 47
WCO program: The pillars of WCO Coordinated Border Management Border agency co-operation with Customs being the single entry point Single Window Concept allowing one single entry point for traders Emphasis on Information not physical checks 48
WCO Program and e-freight: Common Objectives Business to Customs: Advance electronic information to speed up transit time WCO standards data model to simplify data exchange Coordinated d Border Management Data transfer to a single entry point to reduce connection costs Customs being the entry point for Other Government Agencies as connection already exists 49
WCO Program and IATA e-freight: Alignment IATA e-freight: Is only implemented in countries that already have an e-customs program that allows electronic data exchange Is promoting countries to have a single entry point for trade using standard electronic message including all necessary data elements Benefits from advanced risk assessment do not have to wait for customs clearance on arrival and thus improvements in goods transit time 50
WCO Program and e-freight: Different Mandate Customs to Customs Single Window provides one entrance for the submission of standardized information to regulators: Either in electronic format (data) Or in physical format (paper document) IATA e-freight mandate is Paper Free: Process whereby air freight supply chain does not transport the paper but, There may be a requirement by exception to produce this paper in original, copy or printed e-document form 51
IATA e-freight: Electronic Standards IATA recommends the use of international standards to reduce the cost of managing diversity in systems integration IATA publishes transportation standards (Cargo-IMP) focused on communications with airlines IATA recommends the use of WCO standards within the Supply Chain for Customs interface Where no standards exist IATA together with relevant supply chain stakeholders builds them based on UN/CEFACT standards The implementation of the Single Window implies documents and data models to be based on international standards and recommendations 52
IATA e-freight: 24 Live Locations (February 2010) Canada USA Iceland Sweden Norway Denmark UK Luxembourg Germany France Netherlands Switzerland Spain Egypt Dubai Mauritius Japan South KoreaChinese Taipei Hong Kong Malaysia Singapore Australia IATA e-freight live locations IATA e-freight live locations & known Single Window Environment New Zealand 53
e-freight and Customs Agency: Case Study Korea Republic have 2 programs: 1. Clearance Data Model Allows electronic messaging standards Can be used to provide Import and Export Declarations today Based on WCO Data model Flexibility, IT communication costs reduction, development costs reduced 54
e-freight and Customs Agency: Case Study Korea Republic have 2 programs: 2. Data exchange between Korea and Philippines Data exchange project where exporters file a declaration Importer in Philippines cross check this on import Using UCR number the export and import declarations cross checked Based on WCO Data elements => Simplified procedure as no declaration is lodged at import 55
e-freight and Customs Agency: Challenges Recognising that Customs are often the most technologically advanced agency for electronic submission whereas others are not Customs has a challenge to establish themselves as the Single Window point of entry Needs political will, leadership and Customs not always high in decision-making hierarchy 56
e-freight and Customs: Way Forward Promote data harmonization and the Single Window Paperless Environment Encourage the use of international standards and recommendation, such as UN/CEFACT IATA continues to participate to UN/CEFACT, WCO Working Groups as well as regional and national Customs meetings IATA e-freight ensure alignment with standardization initiatives Develop new messages in XML based on UN/CEFACT Standards Develop equivalent of Cargo IMP transportation messages in XML format based on UN/CEFACT Standards Support the WCO in the development of XML version of Customs messages based on UN/CEFACT Standards 57
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