TSW Update

Since the last update, the project team has: 

• Consulted with industry groups on the priority of the functions that could be provided by the Trade Single Window (TSW), and the general level of support for the initiative; 
• Met with some representative freight forwarder/express courier companies to try to quantify the benefits and costs of the TSW facility for different industry members;
• Developed the processes associated with the functions;
• Assessed how the TSW facility should be deployed, and recommended to the steering committee that it be a service within the Customs and MAF Joint Border Management System (JBMS);
• Issued a Request for Information (RFI) in regard to the JBMS system requirements to test the feasibility of solutions and estimated costs;
• Begun assessment of vendor responses to the RFI;
• Continued development of the JBMS business case, expected to be submitted to government by September 2009.

Below are summaries of some of the consultation meetings held with industry over the last few months.

Next steps are to develop a summary of the potential benefits and implementation considerations (such as the cost of a software upgrade or systems changes) for different clusters within the industry, for feedback from industry bodies. This feedback will then be reflected in the business case before it is consulted with stakeholders.

CBAFF and CAPEC Members Meeting on Trade Single Window (TSW)

The TSW project team issued a questionnaire to customs brokers, freight forwarders and express couriers in December 2008, to assess what benefits might result from TSW, and gain an indication of the priority functions from the industry’s perspective. There was a low response rate to the questionnaire. The project team invited members of the industry to a meeting on 29 January 2009 to discuss how representative the questionnaire results were. Key points from the meeting were:

• The priority function for the industry is registration, specifically the ability to apply online for a client code, and for the code to be common to at least MAF and Customs.
• Benefits from the lodgement function will accrue more to industry members with a higher rate of transactions that have a multi-agency approval element. The agencies were asked to try to identify different clusters within the industry based on transaction profile. Additional priority transactions include fully electronic clearance of personal effects, and the ability to apply for other agency permits via TSW eg Ministry of Health import permits, Ministry of Foreign Affairs and Trade export permits.
• The meeting did not produce a clear indication about the urgency of completing TSW development. This will depend on a better understanding of the benefits and funding arrangements.
• There was a strong interest in on-line payment of import entry charges (including duty and GST) for cash clients. This indicates the payment function is a higher priority than the survey results reflect. This has been picked up in the project analysis.
• There is a strong desire for more detailed information on invoices, enabling clear linking of agencies’ charges to the individual consignment for on-charging. Also for charges relating to a consignment to be identified immediately. Another benefit would be for invoices to be sent to users electronically, with charges referenced to the job/container. This could then be read into users’ accounts payable systems, enabling automatic collation of charges to a job. We have noted the interest in this area, and will assess what is involved over the course of the project.
• The meeting acknowledged the need for changes to user software/systems, and expressed a desire to see changes made in one package, ideally including other agency permit requirements, and the ability to accept images. General feedback from the meeting was that 18 months notice before mandating the new data set (World Customs Organisation Version 3) would be sufficient.

   

Cargo Industry Meeting on Border Management Opportunities

The project team invited representatives from a wide range of industry groups to discuss ideas and opportunities to improve supply chain efficiency and competitiveness through the agencies’ systems. This was followed up by a meeting with port and shipping company representatives to get further detail on the data that would assist port logistics. Key points from the meetings were:

• Industry representatives stressed their view that industry parties and government agencies are partners in both working for the best possible trading environment and protecting New Zealand’s interests.
• Data capture and reuse across the supply chain are absolutely central to an efficient supply chain.  Industry wants more data, and has more to give to the agencies if we want it. Government is trusted to manage information from and for the supply chain, but industry would prefer one interface with government systems for trade and transport domain data, whether it’s related to international or domestic movement. 
• Ports in particular are seeking a joined-up agency approach to port and maritime security matters, regardless of which agency has responsibility for different aspects.  Ports consider that rules underpinning data provision and processes for the supply chain are the best approach to achieve consistent application within the supply chain – while allowing for flexibility where needed so obstacles are not created. Customs is well placed to fill gaps in statistical data e.g. for coastwise movement of transhipment cargo, such as first port of delivery.  Customs should also provide for electronic correction of load and discharge ports, so that the ports receive automatic notification, relieving the pressure to chase release/load authority.
• We need to collaborate on measures to improve data quality, as poor data compromises efficiency and risk management. 
• Accreditation of supply chain partners, including transport operators, is a real opportunity to improve data quality, risk management and facilitation, especially in light of secure trade measures.
• While industry is open to cost recovery and accreditation schemes, they have to be justified by the realisation of tangible benefits.
• The industry environment is very fluid, limiting the ability to make long term predications.