Archives For June 2, 2018

Trade Community System - Brisbane - DashboardA new Trade Community System (TCS) that will function as a free to access portal bringing together existing data on container shipments is the result of a collaboration between PwC Australia, the Australian Chamber of Commerce and Industry, and the Port of Brisbane.

The goal of the TCS is to link existing supply chain information in disparate systems through blockchain technology, and in the process “revolutionise international trade by removing complexity”.

The developers of TCS noted that one shipment to or from Australia today generates as many as 190 documents and 7,5000 data fields, much of which is duplicating data for different systems, and there is no ability currently to track containers on end to end journeys.

TCS aims to address this with a “National platform that links rather than replaces existing systems, provides end to end visibility and foresight of impediments such as delays and incorrect information, and is permissioned”. All documents, approvals and other requirements would be linked to a single shipment or container number as hashes on a blockchain that supports the TCS system, or stored in an off-chain graph database.

TCS - Brisbane

The developers stressed that TCS “augments, not replaces the systems that are already part of Australia’s supply chains”. Users would access the TCS directly through a web portal or indirectly through their existing systems, and at no upfront cost. “Users are not charged to use the platform or access data about the goods they are managing. Revenue comes from the productivity and service innovations that the data unleashes,” the developers stated.

Speaking at the launch of a proof of concept Trade Community System digital application in Brisbane, Port of Brisbane CEO, Roy Cummins said: “To drive new efficiency gains, industry leaders need to develop mechanisms which facilitate the integration and interoperability of commercial operators across the supply chain and logistics sector”.

This is the goal of the TCS. “The Trade Community System proof of concept is the first stage in building an innovative end-to-end supply chain that will digitise the flow of trading information, improve connectivity for supply chain participants, reduce friction for business and reduce supply chain costs, providing unprecedented productivity gains for Australia’s international businesses,” PwC Partner, Ben Lannan added.

For the Chamber of Commerce and Industry, TCS is an important step in reducing the cost of doing business. “As a trading nation, Australia relies on efficient and effective international supply chains to drive its economic engine room,” said Australian Chamber Director of Trade and International Affairs, Bryan Clark. “At present the current inefficiency across Australian supply chains has added to the cost of doing business, creating up to $450 in excess costs per container. This doesn’t just represent in excess of $1bn in value lost, but goes to the heart of Australian commodity trade viability when it gets priced out of the competitive global market”.

Check out the video – https://vimeo.com/262332930

Source: WorldCargoNews, Editorial, 30 May 2018

 

 

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Tin Can Island Nigeria

Nigerian importers operating in all ports in Lagos are facing a tough time in clearing their consignments via the new Nigeria Customs Service (NCS) clearing platform, created to facilitate trade.

The platform

The new IT platform introduced to aid smooth clearance of cargo at the various port terminals has been given the Service sleepless nights before it was further wrecked by windstorm few days ago.

The platform, called Nigeria Customs Integrated System (NCIS)II is an improvement on  earlier automation processes such as Automate System for Customs Data (ASYCUDA), ASYCUDA 2.3, ASYCUDA 2.7,ASYCUDA ++, and NICIS I, which is a software specially created to enhance seamless cargo clearance.

Under ASYCUDA, agents could only make five declarations in one hour, but under the NICIS II, they can make up to 18 declarations within an hour.

Also, under NICIS I, customs agents could view what other control agencies such as National Agency For Food And Drug Administration And Control (NAFDAC), National Drug Law Enforcement Agency (NDLEA), Standards Organisation of Nigeria (SON) are doing with their declarations. Similarly, they could actually interact with these agencies under NICIS II.

The new software had earlier been launched at Lilypond Terminal, Port and Terminal Multi-services Limited (PTML) and Tin Can Customs Commands.

Disruption

However its failure has affected cargo clearance at the ports in Lagos, Tin Can Island, and Kirikiri Lighter Terminal (KLT) twice this month during a heavy downpour.

The disruption was more pronounced at Lagos Port, which handles the largest imports just two weeks when it migrated to the new platform after its trial at Lilypond, PTML and Tin Can commands.

Challenges

Speaking on the challenges, the Assistant Comptroller of Customs in charge of Customs Processing Centre (CPC), Apapa command, Yahaya Muktar highlighted some of the challenges the command had faced since the NCIS II took off two weeks ago, namely –

  • that the migration from ASYCUDA system to NCIS II platform had caused a little disruption in revenue generation, however he said that the command had caught up on what was initially lost to the mixed up; and
  • that the recent windstorm also contributed to the teething problems experienced at the command.

He explained that the service had not been able to access any work because of the server failure.

For the first week, there was no revenue collected. In the second week, when NCS got acclimatised to it, NCS collected N4.3 billon in a day which has now made up for the three days where no revenue was collected.

At the moment, the Lagos Port had only one scanning machine and that this was not adequate for the backlog of pending containers to be cleared. It was also confirmed that scanners were not working in some port terminals (Tin Can).

Requests for inspection were not being triggered properly resulting inspections not being completed.

Issues are also being experienced with debit notes resulting in importers being billed twice.

Many users were reluctant about using the new IT platform in the light of all the difficulties.

The challenges experienced range from network to various hardware and software technical issues. The NCS’s technical partner, Webb Fontaine is working with the implementation team to ensure normal resumption of customs processing for trade.

Source: New Telegraph Online, original article by Bayo Akomolafe, 30 May 2018