Archives For Information Technology

wco-icd2017As national Customs administrations and border agencies celebrate International Customs Day, no doubt showcasing their recent ICT endeavours, it is good to reflect not only on the available standards and tools which are becoming more available to Customs and Border Management Agencies.

The WCO spearheads and supports several initiatives aimed at fostering increased coperation and collaboration between member states under the banner of ‘Digital Customs’. In the post security era, throught is capacity building arm, the WCO champions global development of its Digital Customs concept and strategy. The WCO’s work programme in this regard covers a broad area of focus, for example:

  • to support the WTO Trade Facilitation Agreement,
  • the updating of related WCO instruments and tools,
  • ongoing promotion and maintainance of the WCO Data Model,
  • monitoring of new and emerging technological developments (3D printing, Big Data, Predictive Analytics, Drones and Blockchain),
  • promotion of e-services and apps,
  • exchange of information between stakeholders nationally and accross borders, and
  • promotion of the Single Window concept.

For most customs and border administrators, they have somewhere heard of, or to some extent are aware of the ‘buzz words’. The various chapters of the WCO through the working groups provide up-to-date developments in all facets on developments in the modern Customs operating and global trade environment. These are ably supported by several internal business organisations and umbrella associations adding credence to the developmental work and ultimately the standards, policies and guidelines published by the WCO.

In this modern era of uncertainty – global political and socio-economic risks – International Customs Day should be a combined celebration not only for Customs, but moreover, the associated supply chain industries and business intermediaries. If there was no trade in goods there would be no Customs or WCO. Without the providers of ‘big data’ there would be no need for data analysis. Without illicit activities there would be no need for expensive enforcement technology and equipment and the application of risk management.

Thanks to an imperfect and unequal world the WCO, through its association with the world’s customs authorities, big business and ICT service providers is able to develop a Digital Customs Maturity Model, which provides a road map for administrations from the least to most developed (mature rather). The pace and extent of maturity is undoubtedly determined by a country’s discipline and agility based on a clear strategy with the support and commitment of government and allied industries.Happy Customs Day!

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The WCO Policy Commission, held in Moscow, Russian Federation, from 5 to 7 December 2016 under the chairmanship of Mr. R. Davydov, brought to the fore the key role of Customs in creating a sustainable and efficient e-commerce ecosystem, reviving-up the exchange of data between stakeholders and enhancing risk-management through electronic interface. The other main topics discussed during the Commission pertained to trade facilitation, security, the enhancement of the Customs/Tax cooperation and the modernization of Customs administrations.

The newly established WCO Working Group on E-Commerce will work to tackle the different dimensions of e-commerce by collecting and exchanging best practices in the field, stocktaking and leveraging some of the ongoing work being carried out by other entities and drawing up proposals geared towards the development of practical solutions for the clearance of e-commerce shipments, including appropriate duty/tax collection mechanisms and control procedures.

Concerning the in-depth discussions on Custom /Tax cooperation, the WCO issued this year “Guidelines for strengthening cooperation and the exchange of information between Customs and Tax authorities at the national level” and will continue working on topics of common interest for Customs and Tax experts such as transfer pricing, drawback and Illicit Financial Flows (IFF).

During the Commission, WCO Secretary General Kunio Mikuriya, confirmed the WCO Theme for 2017 “Data Analysis for Effective Border Management” and stressed the impact of the digital revolution and the need to address promptly the challenges posed to the global economy. The Secretary General invited all the WCO Members to promote and share information in the coming months on how they are leveraging the potential of data to advance and achieve their objectives and respond to the expectations of traders, transport and logistic operators, and governments.

As data analysis will be emphasized in 2017 as a force multiplier for Customs administrations, it is relevant to highlight that the WCO is carrying out a Study to collect best practices among its members to assess and promote initiatives in the area of e-commerce. A previous analysis of preliminary data underscored the need for digitalization of processes, better sharing of information between e-commerce stakeholders and customs for improved risk management and the necessity for harmonization in the low-value shipment processes. Source: WCO

sars-edi-user-manualSARS has been operating Electronic Data Interchange (EDI) with its external stakeholders since 2001. More than 98% of all customs declaration (CUSDEC) transactions are today submitted electronically to Customs and the electronic submission of multimodal cargo reports (CUSCAR) is steadily increasing. Today, declaration processing is fully electronic end-to-end thanks to the availability of highly established EDI and Customs software service providers supporting the local customs and logistics community. SARS has also recently introduced a benefit for compliant cargo reporters who will be absolved of certain manual (paper) submission requirements once they attain an acceptable level of electronic submission compliance and data accuracy.

The ultimate objective is to ensure that all Customs-to-Business (C2B) transactions are electronic to enable full supply chain connectivity between the South African business community and Customs. This in turn enables the possibility of SARS accrediting or approving ‘supply chains’ as opposed to just individual trader segments (importers and exporters). The extent of electronic compliance is also a pivotal requirement for traders operating under the new Customs Control Act, to be enacted in the future.

SARS overall EDI capability extends further than declarations and cargo reports. In recent years Customs-to-Government (C2G) messaging has also been successfully established between SARS and the Department of Trade and Industry (dti) as well as the South African Reserve Bank (SARB). SARS is also engaging other government stakeholders concerning IT connectivity and data exchange.

Moreover, developments for cross-border Customs-to-Customs (C2C) data exchange are also in the pipeline and could come to fruition with the partner administrations in Mozambique and Swaziland in the foreseeable future. These initiatives will usher in increased supply chain connectivity through active use of the Unique Consignment Reference (UCR) between participating customs administrations. The ultimate objective here is the creation of mutual recognition benefits for local and cross-border traders based on their accreditation status agreed between the participating customs administrations.

The SARS Electronic Data Interchange (EDI) Manual (which can be downloaded from the SARS EDI webpage) has been updated with the latest versions of SARS Edifact Data Mapping Guides as well as improved diagrams explaining the functional composition of the various electronic messages specified for Customs processing. Also included are the requirements for registering as an EDI user with SARS.

The manual includes recent updates relating to cargo reporting (manifests) as well as the updated customs declaration message incorporating recent inclusion of customs surety, penalty and forfeiture requirements. The latter enhancement removes another document based requirement (the Form DA70 Provisional Payment) for Customs Brokers with the view streamlining data requirements, enhancing customs billing and customs status reporting with the trade and logistics community. This EDI Manual will be an important document over the coming months and years in that it will feature updated electronic requirements in support of the new Customs Control Act. Watch this space!

ibmThe Australian Broadcast Company (ABC) has been told IBM looks increasingly unlikely to hit its October 31 deadline and there are growing fears in the Department of Immigration and Border Protection that the risk of a system failure is rising, as the busy Christmas holidays loom and a long-running industrial dispute remains unresolved.

An IT failure could have serious national security implications as the mainframe will manage Australia’s border controls, including red flagging terror suspects attempting to enter or leave the country.

In response to a series of questions from the ABC, the department issued a statement saying: “This schedule remains under active review.”

“This is common to all major system changes in which the protection of operational capability and security protections remains the overarching priority,” the statement said.

The concerns about the enterprise-wide mainframe contract come in the wake of the high profile woes of another federal agency.

The Australian Bureau of Statistics was embarrassed by a census-night shutdown, which Prime Minister Malcolm Turnbull blamed on IBM.

The company is also currently embroiled in a Canadian payroll scandal, where tens of thousands of public servants have been underpaid, overpaid or not paid at all.

And that echoes the billion-dollar health payroll debacle in Queensland, after which the State Government banned its agencies from signing contracts with IBM.

Rand Corporation review of the merger between Immigration and Customs that said there was “an absence of a solid plan” for executing the integration.

Before Customs and Immigration merged in 2015, two companies had been delivering IT services — IBM for Customs; and CSC, another US information technology giant, for Immigration.

CSC lost the bid for the combined tender and was told in February that its contract would be terminated 20 months early, with the new finish date set at October 31, this year. That upped the ante on transferring enormous amounts of information between CSC-managed and IBM-managed data centres.

As that deadline approaches, fears have grown within the department that IBM is not ready and that the system might fail.

There have been meetings between IBM and officials as they war game solutions, which might include IBM hiring CSC’s workforce.

The total value through to 2019 of the mainframe contract is $509 million, and it is understood that the department does not have any more money to bolster the transition and is struggling to find the staff it needs within its own ranks to handle the change.

It is just one of many contracts IBM has with the Federal Government.

The department’s statement in response to the ABC’s questions also said it “has a robust risk management framework in place to address any potential risks that may arise from a large scale change to border systems”.

“IBM has had a long relationship with the former Australian Customs and Border Protection Service and has maintained a stable computing environment for critical border systems,” the statement said. Source: ABC

MarEx APM Tangier 2016Maritime Executive reports that the world’s third largest port operator APM Terminals said it will invest 758 million euros ($858.3 million) in a new transhipment terminal in Tangier, Morocco, that will be the first automated terminal in Africa.

APM Terminals, a unit of Denmark’s shipping and oil group A.P. Moller-Maersk, has been named as the operator of the new container transshipment terminal at the Tanger Med 2 port complex. The group already operates the APM Terminals Tangier facility at Tanger Med 1 port, which started operations in July of 2007 and handled 1.7 million TEUs in 2015. The new terminal will have annual capacity of five million TEUs.

Maersk Line, also a part A.P. Moller-Maersk, will be an important customer of the new terminal. The new terminal is scheduled to open in 2019, under the terms of a 30-year concession agreement with the Tanger Med Special Agency (TMSA), which has responsibility for the development and management of the Tanger Med port complex.

The Tanger-Med port complex is strategically located on Africa’s northwest coast near the mouth of the Mediterranean Sea on the Strait of Gibraltar, where the Atlantic Ocean and Mediterranean Sea meet. Tanger-Med is the second-busiest container port on the African continent after Port Said, Egypt. The new APM Terminals MedPort Tangier terminal will increase the port’s total annual throughput capacity to over nine million TEUs.

APM Terminals MedPort Tangier will have up to 2,000 meters of quay length and will feature the technology pioneered at the APM Terminals Maasvlakte II Rotterdam terminal which opened in 2015.

For APM Terminals the Western Mediterranean is an important market. APM Terminals Algeciras, on the Spanish side of the Strait of Gibraltar, operates in tandem with APM Terminals Tangier as an integrated Western Mediterranean transshipment hub. APM Terminals Algeciras handled more than 3.5 million TEUs in 2015, and has completed a major upgrading of its cranes and quay infrastructure to accommodate ultra-large container Ships of 18,000 TEU capacity and above.

The location of the Tangier and Algeciras facilities provide a natural transshipment location for cargoes moving on vessels to and from Africa from Europe and the Far East on the primary East/West shipping route through the Mediterranean Sea; over 200 cargo vessels pass through the Strait of Gibraltar daily on major liner services linking Asia, Europe, the Americas and Africa.

While African ports at present account for only 4.5 percent of global port throughput (including transshipment cargoes), the United Nations 2015 World Population Prospects Report projects that more than half of the world’s population growth between 2015 and 2050 will occur in Africa, with the African population more than doubling from 1.1 billion to 2.4 billion over the next three and a half decades.

Significant investment in port and transportation infrastructure will be required to meet the anticipated needs of the expanding African population and corresponding economic growth.

APM Terminals is the largest port and terminal operating company in Africa by equity-weighted container volume, with 12 facilities operating in 10 countries and three more terminals under construction. Source: Maritime Executive

WCO News Feb 2016Another bumper edition of customs news, views and success stories (click here to view!). Several countries showcase their modernization and digital developments under the theme “Digital Customs” from declaration management systems, carnet systems to paperless procedures for AEO’s. Nice to see an article featuring South African Customs once again.

There’s also a section featuring articles on ‘big data’. Learn about Canada’s approach to private sector stakeholder engagement. You’ll also find some interesting points of view regarding use and misuse of valuation databases and a whole lot more.  Source WCO

BIMCO E-Bill of LadingPaper bills of lading have been used throughout the world to document and effect international trade for centuries. Yet whilst the world has become increasingly digitalised the paper bill of lading has, on the whole, remained a constant feature of global trade. Its continued use is mainly due to its combination of three legal characteristics that it has developed over time: (i) it is a receipt of the goods carried; (ii) it provides evidence of the terms of the contract of carriage; and (iii) it is a document of title to the goods. It is these characteristics that have, until relatively recently, foiled attempts to replace the paper bill of lading with an electronic equivalent. However, with the inclusion of an electronic bills of lading clause in BIMCO’s NYPE 2015 time charter form, as well as the International Group of P&I Clubs’ approval of the coverage of three electronic trading systems, the dominance of the paper bill of lading may well be coming to an end.

Reed Smith LLP Ship Law blog posts an interesting article in regard to change in law and the impact of e-commerce on bills of lading.

Issues with the paper system
Whilst the paper bill of lading has been used for centuries it is not without its faults, the principal problems being that:

  • Carriers are obliged to discharge the goods carried on production of an original bill of lading: this is particularly problematic today given both the speed of transport and the fact that the cargo may be sold multiple times during carriage. As a result of this the bill of lading is often not delivered to the consignee in time, and the carrier is often required to accept a letter of indemnity. This indemnity does not, however, remove the carriers’ liability under the bill of lading and creates an additional administrative burden and cost to the trade.
  • The paper system is hugely expensive (such cost is estimated to be between 5 – 10% of the value of the goods carried each year).
  • A paper bill of lading may be forged with relative ease and carriers are liable for misdelivery against a forged bill of lading.

Benefits of an electric bill
The electronic bill of lading or e-bill, in theory, addresses many of the flaws of the paper system, bringing with it a number of advantages:

  • It can be sent around the world instantaneously, hugely lowering the administrative burden of trade (especially where cargo is subject to multiple transfers of ownership during carriage).
  • Any amendments or corrections required can be made far more efficiently and cost effectively.
  • Electronic payment systems, and related advances in security, make an electronic system considerably more secure than its paper equivalent. This is obviously subject to cyber issues.

These benefits will cut the administrative costs of trade significantly and reduce, if not eradicate, situations where carriers discharge their cargo against letters of indemnity.

So why so slow on the uptake?
One of the main reasons the widespread use of the e-bill has been slow to proliferate stems from the fact that it is not treated in the same manner, legally, as its paper equivalent. Significantly:

  • A paper bill of lading is a document of title, enabling it to be negotiated and transferred as possession of the bill is evidence of title to the goods. This is not automatically the case at law with an e-bill.
  • The Hague Rules / Hague Visby Rules (HR / HVR) apply to a contract of carriage by reference to the bill of lading, or similar document of title, and it has been less clear whether they would apply to any electronic trading system used. The solution developed to these legal obstacles is essentially a multiparty contract. This takes the form of a set of rules to which users of an electronic trading system are all required to subscribe to use that system. Such rules then set out the specific form of electronic trading documentation to be used and that the consequences of using such documentation shall mirror the position at law as if they were paper bills of lading.

This, however, means that electronic trading systems such as BOLERO, which has been in existence since the 1990s, are only able to function between their members (i.e. those that have agreed to the uniform set of rules and systems that will govern their transactions). Where a member of an electronic trading system enters into a transaction with a non-member, the electronic system cannot be utilised and a paper bill of lading is issued. This feature has limited their growth, as electronic trading systems are only really effective once they have a large number of members, but are not cost-effective for traders to join until they have a large number of members.

The present situation
The benefits of electronic trading systems are particularly tangible to container carriers (as there is often a separate bill of lading for each container carried) and as such have been utilised by liner companies before wider adoption in the industry. However, the efficiencies of electronic trading systems are not confined to the container industry alone and with members of the largest trading companies, trade finance banks, mining companies and oil majors using such systems, it is clear that they are becoming increasingly prevalent in the shipping industry as a whole.

The growth of the use of electronic trading systems in the wider shipping industry is something that BIMCO, by including an e-bills clause in its latest iteration of the NYPE form, has also recognised. In sum the new clause provides that:

  • use of an electronic trading system is at charterers’ option;
  • owners shall subscribe to the system elected by charterers, provided such a system is approved by the International Group of P&I Clubs;
  • charterers shall pay any fees incurred by owners in subscribing to such elected system; and
  • charterers shall indemnify owners for any liabilities incurred arising from the use of the elected system, so long as such liability does not arise from owners’ negligence.

The International Group of P&I Clubs have now ‘approved’ three electronic trading systems (BOLERO, essDOCS and E-title). An ‘approved’ system is one that is found to replicate the legal characteristics of a paper bill (namely (i) as a receipt; (ii) a document of title; and (iii) a contract of carriage which incorporates the HR / HVR). This means that the International Group of P&I Clubs will provide cover for any liabilities arising under carriage covered by these three electronic trading systems (or any such other subsequently ‘approved’ system), provided that such liability would also have arisen under a paper bill. However, members should be advised that risks connected with the use of a non-approved electronic trading system will not be covered.

The use of an electronic trading system does, however, lead to other risks from things such as hacking, systems collapse, e-theft and viruses, none of which are traditionally covered by P&I clubs and would need to be insured separately. In this regard, essDOCS (which is now used throughout 71 countries by over 3,300 companies) has insurance cover of up to USD $20 million per electronic bill of lading for “eRisks” resulting from an electronic crime or electronic system failure.

With the rise in usage of electronic trading systems, the recent judgment in Glencore v MSC (albeit currently under appeal) provides a timely reminder that the release of cargo should only be made in accordance with the contract evidenced by the bill of lading, even where an electronic release system for cargo is being operated. In this instance cargo was released on presentation of a PIN, despite no provisions for this in the bill of lading, two of the released consignments of cargo were misappropriated and the carrier was held liable.

The future?
With the International Group of P&I Clubs’ approval of three electronic systems, the inclusion of an electronic bills of lading clause in BIMCO’s latest NYPE form and the proliferation of the use of electronic trading systems throughout the wider shipping industry, it is clear that the use of electronic trading systems is increasing. Whilst there is no doubt that we can expect teething problems as the industry continues to adapt to such electronic trading systems, and the cyber risks they may bring, it seems that the efficiencies are too great to be ignore. Source: Ship Law log / ReedSmith

WCO Data Model Workshop, Pretoria, South Africa, Dec. 2015

SARS’ EDI and Customs Business Systems representatives with WCO Data Model facilitators Mr. Giandeo Mungroo (2nd from the left) and Ms. Sue Probert (2nd from the right) [Photo – SARS]

Officials of the South African Revenue Service (SARS) last week attended a WCO workshop on the Data Model facilitated by Ms. Sue Probert and Mr. Giandeo Mungroo. The event, held in Pretoria, South Africa was sponsored by the CCF of China as part of the WCO’s Capacity Building endeavours to promote the adoption and use of customs standards and best practice amongst it’s  member states.

The workshop was requested by SARS ahead of new technical and systems developments and requirements informed by SARS’ new Customs Control and Duty Acts. Moreover, there are also political ambition to institute a Border Management Agency for the Republic of South Africa. All of this requires that SARS Customs has a robust electronic tool to assist the organisation in mapping national data requirements according to specific needs.

Besides the use of a value added Data Model tool – GEFEG, it is imperative for the organisation to develop capacity in the knowledge and understanding of the WCO Data Model. SARS has successfully EDI (Electronic Data Interchange) for the last 15 years with various local supply chain trading partners and government agencies. Over the last few years SARS has been actively pursuing and promoting IT connectivity with regional trading partners with the express purpose to extend the benefits of eCommerce across borders.

GEFEG.FX software is used to model data formats and develop implementation guidelines for data interchange standards such as UN/EDIFACT. It is a software tool that brings together modelling, XML schema development, and editing of classic EDI standards under a unified user interface, and supports the development of multilingual implementation guidelines.

Version 3 of the WCO Data Model brought about a distinct shift towards an ‘all-of-government’ approach at international borders with the introduction of the GOVCBR (Government Cross Border Regulatory) message. The message and underlying data requirements facilitate the exchange of customs and other government regulatory information to support a Single Window environment.

WCO Data Model not only includes data sets for different customs procedures but also information needed by other Cross-border Regulatory Agencies for the cross-border release and clearance at the border. The WCO Data Model supports the implementation of a Single Window as it allows the reporting of information to all government agency through the unique way it organizes regulatory information. This instrument is already 10 years old and is seeing increased use by WCO members.

Amongst the benefits derived from the workshop, SARS staff acquired the following competencies that will not only aid their work but business user support as well –

  • Competence in operating the tool to build a source control collaborative environment to support national and regional harmonization;
  • Competence to build a base to conduct national/ regional data harmonization based on the WCO Data Model to support national Single Window implementation as well as Regional Integration;
  • Competence to build systems/ electronic interfaces between Customs and its partner government agencies including a Border Management Agency; and
  • Provide needed competence to develop, maintain and publish national and regional information packages based on the WCO Data Model.

APM Terminals has released drone footage of its Rotterdam Maasvlakte II terminal. The terminal set a loading record last month on the Madison Maersk with 17,152 TEU loaded, including ten high above deck stowage.

The facility launches the world’s first container terminal to utilize remotely-controlled ship-to-shore (STS) gantry cranes. The cranes move containers between vessels and the landside fleet of 62 battery-powered Lift-Automated Guided Vehicles (Lift-AGVs) which transport containers between the quay and the container yard, including barge and on-dock rail facilities.

The Lift-AGV’s also represent the world’s first series of AGV’s that can lift and stack a container. A fleet of 54 Automated Rail-Mounted Gantry Cranes (ARMGs) then positions containers in the yard in a high-density stacking system. The terminal’s power requirements are provided by wind-generated electricity, enabling terminal operations, which produce no CO2, emissions or pollutants, and which are also considerably quieter than conventional diesel-powered facilities.

The facility, constructed on land entirely reclaimed from the North Sea, has been designed as a multi-modal hub to reduce truck traffic in favor of barge and rail connections to inland locations.

Construction began in May 2012, with the first commercial vessel call in February 2015.

2015 and 2016 are the years of ramping up operations and refining the terminal operating system. The 86 hectare (212 acre) deep-water terminal features 1,000 meters of quay, on-dock rail, and eight fully-automated electric-powered STS cranes, with an annual throughput capacity of 2.7 million TEU.

At planned full build-out, the terminal will cover 180 hectares (445 acres) and offer 2,800 meters of deep-sea quay (19.65 meters/64.5 feet depth), with an annual throughput capacity of six million TEUs. Source: Maritime Executive

WCO Capacity Building Magazine 3rd Edition.ashxThe WCO – Sub – Saharan African Customs Modernization Programme funded by the government of Sweden comprises four projects, namely the WCO- EAC CREATe , the WCO– SACU Connect, the WCO– WACAM and the WCO– INAMA Projects. In their totality, the projects support regional Customs Unions in Africa in their mission to facilitate trade without compromising the security of their country and the safety of their citizens. The newsletter will appear quarterly and will inform on ongoing tasks as well as give an overview of future activities. Source: WCO

AfricaMap_SADCThe following article titled ‘Cross-border projects dependent on cost’ was recently published by Transport World Africa. It deals essentially with cross border logistics and provides an insight into regional infrastructure and logistics projects – successes, failures and their impact on transport logistics. It emphasizes the need for greater and closer public and private partnerships, but alas sovereign states appear to be more focused inwardly on their domestic affairs. 

Implementers of projects have the knack of focusing on what they know very well, often leaving out what they do not know. Usually, this comes back to bite them. An example is in the integration of leadership. Countries in the Southern African Development Community (SADC) region compete with each other for demand and capacity provision, which results in the inflated cost of logistics.

Rather, countries should work together. Integrating ports and funding is relatively easy. What is not available is integrated leadership in the region (excluding heads of various states), agreeing that SADC is ‘one country’. Logistics planning is still done at the country level, which is not practical, because then supply chains are being developed that are competing with each other. The sector should be cautious about acceleration, and about what is funded. One example is Transnet, whose plans should fit into regional plans, but right now they do not.

The softer issues in project development often go ignored, but they are at times the most important. There should be a halt to focusing mainly on mega-projects, since they take time and money, as well as resulting in complications (excluding Grand Inga). Despite this, mega projects do create a common vision for a region. Do sponsors have the capacity to support these projects? Institutional capacity is certainly needed. At the political level, southern Africa has done well, top–down approaches are there, but things go off course when there is the attempt to get others to plug-in to this.

One-stop border posts are very important. It was cautioned that the region must be careful not to follow the architecture of colonial extraction, which means focusing on intra-Africa trade rather than too great a focus on ports and exports. Government and private sector must both drive natural winners and losers in markets. There is sufficient funding and policies, but project preparation is limited. What is needed is to decide how to make hubs of excellence, and decide who is going to do what.

The high-level work has been done, but now the sector is facing an implementation challenge. Governments do not do regional integration very well. The private sector does the regional integration, and they suffer most when it does not work. Regional infrastructure will not happen unless there is public support for it. The most successful cross-border project was a PPP: the M4 toll road. This had a large economic impact.

Also, the Port of Maputo has been successful in generating income. Ports without land side integration are useless. Projects need a soft-issue mediator; otherwise there are great ideas, but no implementation. The private sector should not see itself as a messiah, but should rather have a sense of responsibility for developing supply chains. There needs to be a clear understanding of soft issues, clear legal and policy understanding, and communication. SADC has been driving the implementation of harmonisation of vehicle load management for twenty years. A mediator between the public and private sector (such as Maputo Corridor Logistics Initiative (MCLI) is absolutely necessary.

It is a stark reality how little intra-African trade there is. To address this there should be a clear target for development in future. In Namibia, there are efforts to focus on the positives in regards to transport development, even with limited resources. Namibia has been independent for 25 years; 15 years ago the Walvis Bay Corridor was created as a focus on regional integration and regional development. There are 2.2 million people in Namibia, which means a small economy.

There is no real choice but to take into consideration the region and recognise the value Namibia can add. In regards to planning, in 1995 it developed its first transport master plan, and in 2014 it developed its second transport master plan (this was twenty years apart). In February 2015, it developed a logistics master plan to develop Namibia into a logistics hub in the region. It has focused on transport modes because it has a port emphasis. It started roads development.

Currently, Namibia is building its first dual-carriage road (65 km), which is a big step for such a small economy. It would like to do more with sufficient funding. Namibia is also looking into what to do with aviation. As a whole, the country is trying to develop as an alternative trade route for southern Africa. Five to seven years ago, Walvis Bay was just a fishing port, but now R500 million is coming into Namibia’s economy through this post (from zero rand 10 years ago). Namibia is trying to create a better alternative in the SADC region. Now it is looking to focus on developing the manufacturing sector. Namibia is working with South Africa to develop partnerships (excluding transport corridors to production corridors). Continue Reading…

eFreightIndia-based e-freight software development company Hans Infomatic has teamed up with the Worldwide Information Network (WIN) – an online platform for independent freight forwarders -to offer its customers a streamlined e-Customs process.

“Hans Infomatic’s web-based ‘AMS’ application enables customers to access one streamlined process for e-Customs filing, as well as electronic Air Waybills (e-AWBs), and e-manifests to over 90 airlines, using the WIN platform,” WIN said in a statement.

Benefits also include full electronic tracking, with AWB information automatically loaded into the AMS system, so shipments no longer have to be checked manually.

Hans Infomatic’s managing director, Parvinder Singh, said that the new integrated system would help forwarders collate and consolidate information into a single system.

“With this system of e-filing, export documents will be accessible to Customs (for Shipping Bills) as well as airlines without duplication, thereby saving costs and also helping to conserve the environment,” he added.

WIN’s online collaboration platform for freight forwarders is used by agents in 111 countries and 450 cities.

ConTraffic HomepageA new regulation adopted by the European Parliament and the Council will allow customs to access information to track the origins and routes of cargo containers arriving in the EU to support the fight against customs fraud both at EU and national level. The Joint Research Centre (JRC) has been instrumental in the conception and adoption of this legislation as it provided the scientific evidence on the importance of analysing the electronic records on cargo container traffic.

The EU customs authorities have been long aware that information on the logistics and actual routes of cargo containers arriving in Europe is valuable for the fight against customs fraud. However, they had very limited ways to obtain such information and no means to systematically analyse cargo container traffic both for fraud investigations as well as for risk analysis. On the other hand, the ocean carriers that transport the cargo containers, as well as their partners and clients, have easy on-line access to the so-called Container Status Messages (CSM): electronic records which describe the logistics and the routes followed by cargo containers.

jrc-cargo-container-routes-world-mapIn collaboration with the European Anti-Fraud Office (OLAF), the JRC has worked extensively on how to exploit CSM data for customs anti-fraud purposes. The JRC proposed techniques, developed the necessary technology, and ran long-term experiments involving hundreds of EU customs officers to validate the usefulness of using CSM data. The results of this research led the Commission to bring forward a legislative proposal that would enable Member States and OLAF to systematically use CSM data for these anti-fraud purposes. It also served to convince Member States of the value of the proposed provisions.

The financial gains from the avoidance of duties, taxes, rates and quantitative limits constitute an incentive to commit fraud and allow the capacity to properly investigate in cases, such as mis-declaration of the origin of imported goods. The information extracted from the CSM data can facilitate the investigation of some types of false origin-declarations. With the new legislation an importer will no longer be able to declare – without raising suspicions – country X as dispatch/origin of goods if these were transported in a cargo container that started in country Z (as indicated by the CSM data).

jrc-csm-dataset-world-map (1)The technologies, know-how and experience in handling CSM data, developed by the JRC through its experimental ConTraffic platform, will be used by OLAF to set up the system needed to implement this new legislation applicable as from 1 September 2016. The JRC will continue to analyse large datasets of CSM records (hundreds of millions per year) as these are expected to be made available through the new legislation and will continue to support not only this new regulation but to exploit the further uses of this data notably for security and safety and real-time operations. Its focus will be on data mining, new automated analysis techniques and domain-specific visual analytics methods. Source and Images: EU Commission

Sost_Pakistan_Customs_and_Chinese_TrucksPakistan Customs’ experts are in China to make further progress on the establishment of direct Electronic Data Interchange (EDI) with the trusted and neighbouring country to reduce the incidences of revenue losses.

The sources told Customs Today that Chief Customs Automation Abdul Qadir, Director Majid Yousfani, Riaz Chaudhary and Azeem from PRAL flew to China on August 9 to hold series of meetings with the Chinese counterparts to make further progress on the EDI.

The sources said, that the EDI will help access trade documents on real time basis from computers of cross-border customs stations. The directorate had exchanged the technical documents with China for EDI, the sources said, adding that the Chinese Customs had given feedback and counter proposal on the technical documents.

In order to expedite finalisation of the EDI arrangement, earlier a meeting with the Chinese Customs for exchange of data relating to the certificate of origin between the two countries was held on February 2 to 4, 2015 in Beijing. And, this is the second meeting of Pakistan Customs officers with the Chinese Customs, sources added.

It is recalled here, that Federal Board of Revenue had issued an alert regarding mis-declaration in imports from China under 50 HS Codes. The Board also showed concerns on the un-warranted concessions granted under various SROs covering preferential or free trade agreements.

The Board had advised verification of suspected Certificates of Origin directly through the commercial missions of Pakistan abroad, discouraging mis-classification of goods to obtain concessions and extending benefits only to goods which strictly matched the description provided in respective SROs.

It may be mentioned, that the export data of China customs for CY 2013 was cross matched with the import data of Pakistan Customs for same period and it transpired that in respect of 376 tariff lines the import value declared before Pakistan Customs was short by $2.437 billion recorded by China Customs as export value to Pakistan.

Moreover, in respect of 13 tariff lines the import value declared before Pakistan Customs was in excess of $829 million that that recorded by China Customs as export value to Pakistan. This is indicative of possible mis-classification of those goods which attract higher rates of duty but are cleared as goods attracting lower rates. Source: CustomsToday

At the launch of Transnet National Ports Authority's new Integrated Port Management System (IPMS) [Transnet]

At the launch of Transnet National Ports Authority’s new Integrated Port Management System (IPMS) [Transnet]

Transnet National Ports Authority’s new web-based Integrated Port Management System (IPMS) went live on 26 July at the pilot site, the Port of Durban, with the crude oil tanker, Colorado, the first to be brought into the port using the new system.

Developed by Navayuga Infotech, a company based in India, in collaboration with their South African partner Nambiti Technologies, the IPMS is a strategic project that aims to support the broader objectives of the Transnet Market Demand Strategy (MDS) in terms of efficiency and productivity.

The project will cost TNPA around R79 million for the entire system, for all eight South African ports, covering concept development, architecture, implementation and rollout.

TNPA Chief Executive, Richard Vallihu, said: “Since 2008, various feasibility studies were undertaken where we identified the need for an automated and web-based system to improve port operations, strengthen efficiencies and enhance competitiveness. This online system will help transform our ocean gateways into smartPORTs by using advanced information technology that will make them more intelligent and sustainable, while conserving resources, time, space and energy.”
The system replaces manual processes, with key port operations now set to be automated, online and in real time.

Vallihu said the IPMS was benchmarked against Malaysian and Singaporean ports which were among the world’s most efficient. The IPMS system will be a groundbreaking initiative in that for the first time in the world a system such as this is integrated across multiple ports on a single platform.

“For us as a customer-focused organisation this state-of-the-art information technology will ensure that port information and processes are transparent and easily accessible to users throughout the South African port logistics chain,” he said.

Yugen Reddy of Sharaf Shipping Agency was excited about being able to work more efficiently. “My role as an agent is to make sure that ships are in and out of the port as quick as possible because time is money. With IPMS we will be able to use our smart phones or tablets while we’re out and about to update the system and get acknowledgment from TNPA on the spot with regards to sailing or berthing of vessels,” he said.

Vessel agent, Londa Small of Thembani Shipping agreed. “I am optimistic about the IPMS system because everything’s going to be in real-time enabling quicker turnaround,” he said.

IPMS will link to Transnet Freight Rail’s Integrated Train Plan (ITP) and Train Execution Management System (TEMS). It is also integrated with global systems such as Lloyds Register, AIS (for vessel traffic management), IPOSS (for weather), EDI (Electronic Data Interchange) and SAP (for business operations, customer relations and finance).

From Durban the project team will move on to Cape Town and Saldanha, then Port Elizabeth, Ngqura and East London and finally to Richards Bay and Mossel Bay.

TNPA conducted daily intensive training for internal and external users at the Maritime School of Excellence in Durban during June. Source: Transnet