SARS customs modernisation

SARS Customs Modernisation
Improved Trade Facilitation Through Customs
Interconnectivity
African Ports Evolution 2015
Durban
November 2015

ROADMAP
1980+
Customs automation
Trade statistics
1996 - Launch of a
Revenue Authority –
SARS
2000 +
Customs Transformation
Programme
2001 –
Organisational restructuring
EDI
2002 –
Anti-smuggling teams
New systems
2003+
Port of Durban US Container
Security Initiative.
2005 – ICRAS
C-2-G EDI
2006 – Customs Green Paper
2007 – Established the
Customs Border Control Unit
(CBCU).
2008 - X-Ray scanner
Commissioner Gordhan
delivers Customs in the 21st
Century paper at WCO .
2009+
Customs Control and Duty Bills
Customs Modernisation
Programme.
SARS Enterprise Risk Management
System.
2010 – Stakeholder - new
procedures.
New clearance procedures (CPCs)
2011 –Interfront CMS –
Service Manager
(E@syScan)
New clearance and release
procedure for ‘Road’ clearances
New Customs Tariff engine.
New automated Cargo
Management solution.
Worlds 1st iPod inspection tool.
2012 +
modernised legacy systems and
procedures
New Customs Revenue
Accounting solution.
2013 - 10 month parallel
systems test-
Interfront Go Live!
2014 - Systems stabilisation and
enhancements.
Education and training.
Customs Bills and subordinate
rules.
Customs-2-Customs Data
Exchange
Deployment of additional X-Ray
Scanning facilities.
Gate Keeper Approach Risk Management Approach
Paper driven procedures Automated paperless processing
Customs Modernisation Journey
2

SARS Customs Modernisation >> Key Packages
Innovative & Internationally Aligned Delivery
Delivery
• Standardised and
harmonised data - WCO Data
Model
• Standardised Customs
Procedure Codes.
• Electronic Data Interchange –
Less paper
• Automated Risk
Management.
• Electronic supporting
Documents
• Integrated digitized case and
inspection management
• Customs mobile capability
• System driven entry/exit
management
• Customs eAccount –
electronic statement of
account and refunds.
• Legacy system replacement.
• Preferred Trader
3

SARS Customs Modernisation >> Achievements
What are some of the “Real Benefits?
4

Value-Adding Activities
Registration Declaration Assessment Inspection Audit
ResourceDistribution
Current
resource
distribution
Accreditation /
Entity
assurance
audits
Removing
mandatory
checks
Periodic
declarations &
Simplifications
Entity based
performance
audits (systems
&
process)
Inspection
Proactive
client
management
Automated
processing
through integrated
risk assessment
Compliance audits
(customs regimes)
Customs Tomorrow >> Risk-Based & Interconnected

Customs
Data Interconnectivity
Shipper
Country of Export
Customs
Consignee
Country of Import
Customs
0100001101 DECLARATION DATA 01010000
01000011RESPONSEDATA0101010000

What is Customs Interconnectivity?
“Connectivity encompasses
people-to-people, institutional
& information linkages that
underpin and facilitate the
achievement of Customs”
(Secretary General: WCO)
“The ability of computers and
other types of electronic
equipment to connect
successfully with other
computers or programs”
(Macmillan Dictionary)
“Measure of the extent to which
the components of a network
are connected to one another,
and the ease with which they
can converse”
(Businessdictionary.com)
“The state or quality of being
connected or connective: the
benefits of global connectivity.”
(Dictionary.com)
“The state of being connected or
interconnected”
(Oxford Dictionary)
CONNECTIVITY

GNC & Customs Interconnectivity
Revised Kyoto
Convention
Proliferation of
international trade
agreements
9/11 Terror
Attacks
Last 15 Years – Dramatic Changes in the Global Customs and Trade Landscape
US Security
Measures – CSI,
CTPAT, etc.
IMO / ICAO
Maritime & Air
Security Measures
WCO High-
level
Strategic
Group
WCO SAFE
Framework of
Standards, AEO,
DMV3, etc.
Bilateral agreements on Mutual
Recognition –(AEO) & focus on
Capacity Building
Increased uptake on Single
Window initiativesIncrease in global use of Non-
intrusive Inspection (NII)
equipment
WCO C21 and
Globally
Networked
Customs
Global drive for WTO
TFAA compliance
Regional IT
Connectivity & Data
Exchange initiatives
Increase in global use of the
internet and e-commerce
(B2B) – Advance data
reporting
2000 2016
Gate keeper approach > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > Automated Risk Management Approach
WTO Trade Facilitation
Agreement

Customs Interconnectivity - Concept

Connectivity between Governments
• Trade Agreements
• MAA/MOU - Sharing of Information
• Facilitation & Security - Mutual
Recognition
G2G

Connectivity between Customs and
Traders
• EDI / XML declaration submissions
• Electronic supporting
documentation
• Authorised Economic Operator
• Third party validations
• Common digital tariff book
C2B

Connectivity between Customs
Administrations
• Share advance declaration information
• Perform pre-arrival risk assessment
• Facilitate common process - One-stop-
Border
• Exchange of controlled outcome.
C2C - International
CUSTOMS
Country of Export
CUSTOMS
Country of Import

Connectivity within the National Customs
• Border gate arrival & departure processing
• Integrated border management & intervention
• Mobile inspections & Remote image analysis
C2G – National incl. Single Window
CUSTOMS
Gate Arrival processing
Gate Departure processing
Automated Inspection
Port Health Agriculture
Immigration

Customs Interconnectivity - Approach
• Customs Data Interconnectivity enables the “operationalisation” of Customs Agreements.
• Must follow a standardised, yet flexible approach to enable 2 or more countries to administer
data exchange in a seamless manner.

C2C Exchange of Data
• Intent – to identify and agree on a set of minimum data – not the full declaration
• Purpose – to facilitate advance notification and risk assessment in the destination country.
• Unique Identifier – to enable matching of export and import data.
• Usage – may only be used for internal Customs purposes, e.g. risk.
Export Data
Arrival
Confirmation
Data
Control
Results
Data
EXPORT COUNTRY
Transmit subsequent
to clearance and
release for export
IMPORT COUNTRY
Transmit subsequent
to clearance and
release for importation
IMPORT COUNTRY
Transmit control
results to Export
Country

Regional Update
GNC UTILITY BLOCK
“my export = your import”
• 5 Countries
• Bilateral agreements
• UCR
SACU
Connect
Programme
Agreement
Enabling exchange of
Customs data
Dataset
Export data
Confirmation data
Control Results data
UCR
Unique Consignment
Reference to facilitate
cross-border data
matching

SARS Customs Modernisation >> Strategy & Design
Current Focus Areas...
New Customs Control Act
CCA
Border Management Agency
BMA
Manifest Processing
MPR
Provisional Payments
PP
Regional Integration
IT Connectivity
WCO GNC POC Projects
21

SARS Customs Modernisation >> Interim Initiatives
A. Provisional Payments - Automate declaration based Provisional Payments
Automated Submission,
Management and
Liquidation
Comprehensive Validation
Rules
&
Case Management
Workflow
Integral part of Customs
Declaration
&
Integrated to Billing System
22

Electronic Acquittal
Cargo Report for Sea &
Air Operators
ACM Legacy
to
iCBS -MPR Platform
Road Freight
Enhancements,
Improved Validations
and Benefits to Trade
B. Manifest Processing – Improved architecture and validations
SARS Customs Modernisation >> Interim Initiatives

Cargo,
Conveyance &
Outturn
Reporting
Declaration and
Release
Registration,
Licensing,
Accreditation
A ‘package’ of core requirements necessary for the
implementation of the New Customs Acts.
24
SARS Customs Modernisation >> New Customs Act

Customs Integrated Supply Chain Management
Foreign
Importer
Foreign
Exporter
Registere
d Agent
TMS
TBK
LCM
DPR
C3P
MPR
Transport
Commercia
l
Trade Stats
Importer
Exporter
Customs
Broker
Licensee
Processin
g
Warehouse
Stores
Supplier
Tax Free
Shop
Carrier
OGAs
SARB
Cargo
Reporters
Cargo
Terminal
Cargo
Depot
SEZ
Enterpris
e
CBR
SingleWindow
C-2-CandC-2-G
SSM
CRE
SAP
U3T
M
Pipeline of enhanced
supply chain data
(Customs 3rd Party Data)
to augment Clearance,
Risk Management and
Statistical reporting
Manifest Processing (MPR)
Enhanced Transport & Cargo
reporting and goods accounting
management for inbound and
outbound cargoes per modality
ATA
SWH
Declaration Processing (DPR)
Enhanced Declaration processing to
facilitate ‘expedited’ clearance &
release of goods under customs
procedures
B-2-B gateway providing
increased throughput and
reliability for transactional data
exchange, as well as NEW
messaging requirements
(applications, notifications and
reports)
Enhanced
Registration
& Licensing
engine for
all Customs
clients and
future AEOs.
Enhanced Case
Management
workflows
(Service
Manager) to
facilitate NEW
notifications &
Reports
New facility
for
management
of ATA
Carnets &
CPDs
New facility for
management of
Customs State
Warehouse functions
and responsibilities
Single Window gateway for
the exchange and receipt
of C-2-C and C-2-G
transactional data, permits
and certificates, and
statistical data
Enhanced Tariff Book (TBK) and Permits,
Licenses and Certificates (LCM) to administer all
prohibited, Restricted and Sectorally Controlled
goods
SWH
Licensee
Cross Border
Regulatory
environment –
Government’s ‘Single
Face’ at the border
Government ‘s socio &
economic regulatory
requirements
South African Foreign
Exchange Control and
Balance of Payments
requirements
Customs Bilateral and
multilateral regional &
continental integration and
cooperation – supported by
WCO GNC approach
Customs
Supply Chain Management
Offence
Monitorin
g
New mechanism
to track
compliance
/offences per
entity (Licensee
or Registrant)
WH
M
New Warehouse
management
(WHM) and
goods
accounting
system
B-2-BGateway–C-2-B
E-Filing/E@syFile/E@syScan
AEO
AEO capability
for certified
registrants &
licensees
Post
Travelle
r
Foreign
Customs
25

*
Thank you!
Varsha Singh
Customs Business Systems
GNC
WCO Data
Model
C2C

SARS customs modernisation

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