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Challenges and practices in implementing Single Window in Japan

How NACCS contributes to fulfilling our Missions: Speedy & Proper Clearance

October 2011

Harumi ChikadaDeputy Director, Information Management OfficeCustoms and Tariff BureauMinistry of Finance, Japan

APEC Regional Workshop on Single Window

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Outline

I. Overview of Single Window (SW) system in JapanII. Background of SW initiativeIII. Development of SWIV. ChallengesV. Key enablers to successVI. Conclusion

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I. Overview of Single Window system in Japan

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I. Overview of Single Window System in Japan

NACCS (Nippon Automated Cargo and Port Consolidated System) playing a pivotal role in achieving Single Window

Established status of NACCS as a comprehensive international logistics information platform, where Customs and private sector share information, enabling complete cargo tracking, quick response, high credibility and more

Developed in a phased manner since 2003

Going beyond Single Window – System Integration

6 government agencies participate in Single Window (agencies related to customs, port authority, quarantine, immigration, trade control, food sanitation, veterinary and plant health)

Facilitation of import / export procedures across government agencies

Simplification and harmonisation of import / export procedures, supported by uniform processing through IT system

Enhanced convenience of users

⇒ 　 Enhancement of international competitiveness of logistics in Japan

Features

Effects

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II. Background of SW initiative

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II. Background of SW initiative It was necessary to submit similar but different documents for various government agencies → Duplicated work to process documents which requires more time and cost

Different stages of computerisation of various agencies → Mixture of paper-based and system-based processing

Various systems, not interconnected → Needed to file to all the concerned systems

Political impetus, political leadership - Cabinet decision to enhance paperless environment regarding import/export and port procedures (July 2001) - International logistics Reform Plan (Shiokawa Initiative) presented by Finance Minister to Cabinet members (August 2001)

Coordination mechanism across agencies - Liaison Council for Import/export and Port Procedures-related Ministries and Agencies (September 2001 – July 2003)

Previous status: opportunity for improvement

Driving force

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III. Development of SW

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III. Government Agencies participating in SWAgency in charge Procedures Name of System

(prior to system integration)

Ministry of Finance Customs NACCS (Nippon Automated Cargo and port Consolidated System)

Ministry of Justice Immigration Crew Immigration Support System

Ministry of Land, Infrastructure, Transport and Tourism

Port Authority Port EDI

Ministry of Economy, Trade and Industry

Trade Control JETRAS (Japan Electronic open network TRAde control System)

Ministry of Health, Labour and Welfare

Quarantine Port EDI

Food Sanitation FAINS (Food Automated Import notification and inspection Network System)

Ministry of Agriculture, Forestry and Fisheries

Plant Health PQ-NETWORK (Plant Quarantine NETWORK system)

Veterinary ANIPAS (ANimal quarantine Inspection Procedure Automated System)

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NACCSNACCS

JETRAS (Trade Control) FAINS

(Food Sanitation)

ANIPAS (Veterinary)

All Users

NACCS (Customs)

INTERFACE SYSTEM

Port EDI (Port Authority)

(Quarantine)Immigration

First Generation (From Jul. 2003)

Simple Interfacing SW SystemLess User Friendly

All Users

Common Portal

Port EDI (Port Authority)

(Quarantine)

Immigration

(Customs)

JETRAS (Trade Control)

ANIPAS (Veterinary)

PQ-NETWORK (Plant Health)

PQ-NETWORK (Plant Health)

New Generation (From Oct. 2008)

Common Portal SW System User Friendly

New Dimension New Dimension (Partially from (Partially from Oct. 2008 and complete by Oct. 2013)Oct. 2008 and complete by Oct. 2013)

Integrated NACCS Very User Friendly, Less Cost

NACCS

All Users

Common Portal

ANIPAS (Veterinary)

PQ-NETWORK (Plant Health)

(Customs) (Port Authority)

(Quarantine) (Immigration)

(Trade Control)

CurrentSystem

Merged in

Oct. 2013

From Oct. 2013Integrated NACCS

All Users(Customs)

(Port Authority) (Quarantine) (Immigration)

(Trade Control) (Food Sanitation)

(Veterinary) (Plant Health)

FAINS (Food Sanitation)

FAINS (Food Sanitation)

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NACCS

Trade Control Food

SanitationVeterinary

All Users

NACCS (Customs)

INTERFACE SYSTEM

Port System (Port Authority)

Quarantine

Immigration

First Generation First Generation (July 2003-)(July 2003-)::Interfacing SW System

Although this SW system give a basic benefit of SW to the users, it is not so user friendly compared with Common Portal SW.

A user is required to obtain and manage multiple IDs and passwords issued by individual OGA systems, and to consult with many help desks if some troubles occurred.

Each OGA system is owned and operated by respective OGA.

Plant Health

More importantly, besides the benefit of SW function, interfacing Customs system with OGAs’ allows declarants to process customs procedure and OGAs’ concurrently.

Without the interfacing system, declarants are required to take OGA procedures first and then customs procedure at last as the customs is required to confirm all the necessary official requirements completed prior to the release. It’s so called one by one process which is much more time consuming than the concurrent process.

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NACCSAll Users

Common Portal Each OGA system is owned by

respective OGA but daily system operation is managed by the administrator of the Common Portal (NACCS Center) because all queries on the system operation come to the help desk of the Common Portal.

Port Authority

Quarantine

Immigration

Customs

Trade Control

Veterinary

Plant Health

A user is merely required to obtain and manage one ID and password issued by the Common Portal Administrator (NACCS Center), and to consult with Common Portal’s single help desk.

New Generation New Generation (October 2008-)(October 2008-)::Common Portal SW System

Food Sanitation

More User Friendly System

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Ultimate Solution Ultimate Solution (partially from October (partially from October 2008, complete by October 2013)2008, complete by October 2013)::Integrated NACCS

Integrated NACCS

All Users

(Customs)

(Port Authority)

(Quarantine)

(Immigration)

(Trade Control)

(Food Sanitation)

(Veterinary)

(Plant Health)

Very User Friendly, Less Cost

Advantage of Common Portal Plus

Less development cost by avoiding the duplication hard and software (No Common Portal)

Less system maintenance cost by the integration of hardware

More user friendly service by allowing OGA applicants to use cargo information Quicker response due to the single system (No network between the systems)

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Two critical components of trade facilitation

Declaration

Input an approval or permit number of OGA

Permission

OGA Database

within NACCS

(Common Portal/ Interface Server)

MatchingApproval or permit number, Importer &

Commodity

NACCS

Even if Single Window is operationalised, if there is no link between database of Customs and those of OGAs, importers/exporters still need to physically present paper permits of OGAs to Customs for clearance, which requires more time…

⇒ Two Critical components for facilitated release: ① Single Window (single submission to various OGAs)+ ② Link of database between Customs and OGAs

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IV. Challenges

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IV. Challenges

Varying level of computerisation at various OGAs

Diversified business operation for similar procedures – diversified data elements, code, timing of entry, etc. – simplification and harmonisation way into the future

Negotiation with OGA was difficult

New Generation SW or System Integration needed very tough negotiation over the controversial issue: who would be the leading agency?

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V. Key enablers to success

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V. Key enablers to success ① Political impetus Leading agency

Firm commitment at ministerial level - ‘Use’ of Cabinet Decisions as strong driving force across agencies, with deadline - Initiative presented by minister, shared by Cabinet members

Coordination mechanism among concerned agencies - Cabinet decisions with clear targeted date - Liaison Council for Import/export and Port Procedures-related Ministries at

directors level - Frequent meetings among concerned entities (Customs, OGAs, NACCS Center,

system vender)

Established status of NACCS as a comprehensive international logistics information platform, where Customs and private sector share information, enabling complete cargo tracking, quick response, high credibility and more

- It was obvious that the customs must be a leading agency (Traffic Burden of NACCS: Customs:60.93%, OGA:0.51%, Private:38.56%)

Contributing factors

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V. Key enablers to success ② Simplification and harmonisation of data elements

Simplification and harmonisation of data elements - Definition of each data element (e.g. What is ‘consignee’?) - Coding structure -- Number of characters/digits, types of characters (numeric, alphabetic, marks, etc.) -- Order of entry (e.g. last name, first name, middle name)

Harmonisation of the timing of submission - Similar documents with slightly different timing - Different documents but same timing

Contributing factors

July 2003 (just after the introduction of SW system for Port Clearance) Declaration forms: 16 Pre-arrival forms: 5 Data Elements: 600

November 2005 (after revision of forms and data elements in order to adopt FAL Convention) Declaration forms: 8 Pre-arrival forms: 1 Data Elements: 200

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V. Key enablers to success ③ Stringent project management

Expertise of project management - Established status of NACCS as a comprehensive international logistics informati

on platform, dating back to 1978, with a number of upgrades - Expertise on what to do, when, how

Expertise of coordination - NACCS which has been developed and operated in a framework of PPP - Experiences in coordination between Customs and private sector in upgrading N

ACCS, which can be applied to coordination process with OGAs - Secondment of officers (from MOF, OGAs) to NACCS Center to share institution

al expertise

Stringent management - Coordination meeting among Customs, NACCS Center, OGAs and system vend

er to identify issues, tasks, responsible parties and to monitor progress - Waterfall model - sequential design process used in software development proce

ss, in which progress is seen as flowing steadily downwards (like waterfall)

Contributing factors

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VI. Conclusion

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VI. Conclusion

Whole government approach with driving force

Business Process Reengineering as critical enabler – how best to take opportunity to change business models, to be best in conformity with unified processing of IT

Grand design over mid-term and long-term – phased approach or one stroke approach?

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Thank you