Harnessing IT to Enhance International Trade Efficiency ...€¢ Balanced regulatory and facilitation functions backed by security technologies. ... cross-border eCommerce ... (Operates

Copyright 2005 Private & Confidential 1

The Singapore Experience:The Singapore Experience:Harnessing IT to Enhance International Harnessing IT to Enhance International

Trade Efficiency and SecurityTrade Efficiency and Security

V. MathivananCEO, CrimsonLogic

[email protected] June 2005

All rights reserved. ‘CrimsonLogic’ and the Shell Device are trade marks of CrimsonLogicPteLtd (Regn No: 198800784N). All information contained in this presentation is disclosed to you on the basis of a prospective business relationship and is proprietary to CrimsonLogic Pte Ltd and may not be used, disclosed or reproduced without the prior written consent of CrimsonLogic.


• Challenges for the Global Trading Community

• The Tale of One City

• Case Study on CertOfOrigin

• Across the Border

• About CrimsonLogic

AgendaAgenda


Challenges for the Challenges for the Global Trading Community Global Trading Community


High World Trade FlowHigh World Trade Flow

Western Europe

Rest of the World

Americas Asia Pacific

170

180192

161

54

8238

42

179

146

188

313

Source: Philippe Crist, OECD

World Trade Flows, 2000 (US$ Billion)


Just SingaporeJust Singapore’’s FTA Alones FTA Alone

In force

Concluded

Under negotiation

In the works

Panama


Voluminous Trade AdministrationVoluminous Trade Administration

Inefficient Trade Procedures

3PL

WarehouseSupplier

Buyer

Controlling Agency

Controlling Agency

Controlling Agency

Controlling Agency

Controlling Agency

Importer

Exporter

Freight Forwarder

Bank

Insurance Company

Shipping Line

27-30 different parties

40 documents 200 data elements

Re-keying of 60-70% of data at least once


Security ThreatsSecurity Threats

• Using cargo to smuggle people and/or weapons

• Using cargo to transport conventional, nuclear, chemical or biological weapons

Cargo

• Attacking the ship to provoke human casualties

• Using the cover of seafarer identities to insert terrorist operatives

People

• Using the vessel as a weapon • Using the vessel to launch an

attack• Sinking the vessel to disrupt

infrastructure

Vessels

• Using revenue from shipping to fund terrorist activities.

• Using ships to launder illicit funds for terrorist organisations.

Money

• Loss of life and damage to property

• Disruption to trade flows• Additional cost of transport due

to additional security measures

External Impact


Global Trading Communication

Many Trade Agreements

Proprietary Standards

Different Systems

Different Practices

Different Languages

Stand

ard

isatio

nSta

nda

rdisa

tion

Bilate

ral U

nde

rstand

ingBila

tera

l Und

ersta

nding

Tec

hnolo

gy

Tec

hnolo

gy

Local Trading

Communication

Harnessing IT for TradeHarnessing IT for Trade


Harnessing IT for TradeHarnessing IT for Trade

Information Technology

Internet Technology

Security Technology

Systems Interoperability

System and Network Security

Transparency

Streamlined Processes

Standardisation

Improved Efficiency


The SingaporeThe Singapore’’s Experience: s Experience: The Tale of One CityThe Tale of One City


TradeNetTradeNet

World’s first nationwide electronic trade clearance system

Integrates 34 controlling units’ requirements

TradeNetTradeNet

? Manufacturers

? Freight Forwarders

? Insurance Companies

? Banks

? Exporters

? Government Agencies

? Air Cargo Terminals

? Container Terminals

? International Traders

? Customs

? Airlines

? Shipping Lines


TradeNetTradeNet BenefitsBenefits

Up to 30,000 per dayUp to 10,000 per dayDocuments processed

1 doc3 – 35 docsNumber of documents

Within 2 mins2 – 7 daysProcessing time/permit

After TradeNet Before TradeNet

TradeNet - World’s First Nationwide Electronic Data Interchange System-Harvard Business School, 1993 and 1995

“It is estimated that TradeNet saves Singapore traders around US$1 billion per year.”- Robert M Howe, IBM

“…Fill in one online form and receive the import or export license15 seconds later …”- McKinsey Quarterly 2001 No.2

“…received Top eAsia award under Trade Facilitation Category”- 2003 September


TradeNetTradeNet DevelopmentDevelopment

Implementing 34 Controlling Agencies

business rules in a changing environment

19891st Implementation

1994Enhancement:

GST

1999Enhancement:

Y2k Compliance & Version Upgrade

2000Planning for right-sizing

2002

Right-sizing

2004 SEW

Cross-Border Trade

• Single window for customs administration and trade facilitation

• Serves more than 2,500 companies with 8,000 users

• Processes approximately 9 million permit applications per year

• More than 97% of total applications are auto-processed

• Balanced regulatory and facilitation functions backed by security technologies


Intelligent Data Share (Multiple Data Sources)

Payment Settlement

Beyond Beyond TradeNetTradeNet

InsuranceFinance Permits & Licences

Certificate of Origin

Procurement InventoryVisibility

FreightEnd

-to

-End

C

olla

bo

ratio

n a

nd

Vis

ibili

ty

TradePalette – Collaboration Hub for the Trade & Logistics Community

TradePaletteTradePalette


CrossCross--Border CollaborationBorder Collaboration

Canada

USA Australia

AsiaMexico

America

Germany

MalaysiaKoreaJapanHong Kong SAR

China Chinese Taipei

PhilippinesMacauSAR

Singapore Thailand

Importers / Exporters / Buyers / Sellers / Custom brokers/ Logistics Providers/Customs

TradePaletteTradePalette

Europe

New Zealand


The SingaporeThe Singapore’’s Experience: s Experience: Case Study on Case Study on CertOfOriginCertOfOrigin


• A revolutionary way to apply for, approve and receive certificate of origin electronically

• Provides simple verification of goods with repository of information

• Governments, chambers, banks and forwarders are working together to migrate from paper-based to electronic CO

www.CertOfOrigin.com


Features of Electronic COOFeatures of Electronic COO

Anti-Fraud

Improved Data

Accuracy

Online Data Verification

User Authentication

Electronic Certificate Repository

Document Control

• Optical Watermark• Digital Signature• Data Encryption• Online Verification• 2D Barcode

• Data import • Data validation • Online data

processing/reuse

• Reference ID • Increases integrity

of certificates

• Print Control• Microprint• Reference ID

• Rules Engine• International Standards

• Digital Signature• Automated Workflow


SecuritySecurity

Original Document Copied Document

Visible watermark

will deteriorate

Invisible watermark “COPY” will appear after photocopied


SecuritySecurity

Original Document

RADIANTRUSTMICROCODE

SECRETSERIALNUMBER

Microprint

Online Verification

No. SCCCI-04-000210

cid=f72cb7bfb84ccebd

2D Barcode


Putting Technology TogetherPutting Technology Together

DIGITAL SIGNATURE

OPTICAL WATERMARKING

PRINT CONTROL

PKI SECURITY FRAMEWORK

AUDIT TRAIL

SECURE CROSS-BORDER DOCUMENTATION

BENEFIT• Confidentiality• Data Integrity• Authenticity• Non-repudiation

BENEFIT• Print online via web• Limits multiple copies• Transition before a total

paperless acceptanceBENEFIT• Authorised signatory• Non-repudiation

BENEFIT• Tracking of document flow• Archival of data

BENEFIT• Embedded logo• Proof of a copy

2D BARCODEBENEFIT•Authentication•Data Integrity•Non-repudiation capabilities•Anti-tampering

MICROPRINT

ONLINE REPOSITORY

BENEFIT• Anti-forgery/imitation

BENEFIT• Online access by multiple

parties anytime, anywhere


Putting Workflow TogetherPutting Workflow Together

ExporterClerk

ExporterSignatory

AgentSignatory

Agent Clerk

CO Application

Signed CO Application

CO Application

Chamber

Exporter’s Bank

ExporterClerk

Importer CustomsImporter’sBank

Overseas

Certified COEmbassy

endorsement

In progress

Secure CO Repository

AO Inbox


Cost and Time Savings• It is estimated that the Singapore trading community will

have direct savings of about US$1.6 million a year

• Savings for businesses:

CertOfOriginCertOfOrigin BenefitsBenefits

S$195.50

4-7 days

Manual CO Application

54% Cost Savings

S$90.00Cost to apply for 10 CO per month

4-7 daysWithin minutesProcessing time

SavingsCO Application with CertOfOrigin


The SingaporeThe Singapore’’s Experience: s Experience: Across the BorderAcross the Border


Across the BorderAcross the Border

JapanKoreaChina

Hong Kong SARChinese Taipei

Malaysia

Canada

Singapore

Australia

Macau

U.S.A.

ThailandMexico

Europe


Build a common IT infrastructure for secure and seamless cross-border eCommerce

Members:• China• Chinese Taipei• Hong Kong SAR• Japan• Korea

PanPan--Asian eCommerce AllianceAsian eCommerce Alliance

• Macau SAR• Malaysia• Singapore• Thailand


Collaboration with MalaysiaCollaboration with Malaysia

Exchange of trade-related documents conducted electronically across border over a secured infrastructure

TradePalette

Importers / Exporters / Buyers / Sellers / Custom brokers/ Logistics Providers

eDeclare

Singapore Customs

Malaysia Customs

Trade Declaration Exchange


ü Dramatically reduces data entryü Minimises data errors with data re-useü Speeds up the permit processing

Header

Trading Partner

Shipment details

Packaging, Cargo Description,Container/Markings

Invoice

Declaration Item

eDeclareManual entry

After Cross-Border

86% reduction in data entry

TradePalette

26 fields can be reused

30 mandatory fields

4 fields left

Collaboration with MalaysiaCollaboration with Malaysia


Collaboration with AustraliaCollaboration with Australia

Exchange of electronic quarantine certificates between countries• Health certificates• Phytosanitary certificates• Specialised quarantine certificates

Exporter/ Custom Broker

Importer

Certificate Application

Application StatusApplication Status/ Certificate Information

Approval/ Rejection

Exporting CountryQuarantine

Importing CountryQuarantine

Certificate Information

S.E.W

eHealth Certificates


Collaboration with AustraliaCollaboration with Australia

$25 to $40Courier costs

Many hours + queuing

Manual Application

> 60% Cost Savings

$10Costs

1-2 dayWithin minutesProcessing time

SavingsElectronicApplication

EXPORTER

$15-35Courier costs

Physical submission of certificates

Manual Application

>46% Cost Savings

$5 to $8Costs

4-7 daysNo submissionProcessing time

SavingsElectronicApplication

IMPORTER

Time and Cost Savings


Secure CO Repository

ExporterClerk

ExporterSignatory

AO Inbox

AgentSignatory

Agent Clerk

CO Application

Signed CO Application

CO Application

Government AO & Customs

Exporter’s Bank

ExporterClerk

Custom Brokers

MEX

ICO

Certified COMexico Embassy

endorsement

Customs SAAI(Pedimento validator)

Submits eCO with pedimento

Collaboration with MexicoCollaboration with MexicoProof of Origin


Textile Tariff Preference Level System Textile Tariff Preference Level System

TTPLS System

TradeNet

MaRS

ETGIS System

SAPSingapore Customs

IE Singapore

Accept/Reject TPL

Apply/Surrender/Transfer

Results View/Alerts/Notify

Allot/Invite/Reject/Withdraw TPL

Process

Alerts/Notify

TPL Allocation/ Export Details/Reports/ Category

Bank

Levy, Price & Fee Payment

Database

TPL Manufacturer, Buying House/

Association


Risk Management RegulationsRisk Management Regulations

• A United States legislation was passed for all commercial airlines on international flights to send their passenger and crew manifest data to US Customs and Border Protection (CBP) APIS for advance processing before arrival in the United States

• Several countries like Australia, Canada, Korea, and New Zealand have since followed suit

Since the terrorist attacks in September 2001…

• US Customs and Border Protection (CBP) published the final Trade Act regulations… The rules require advance transmission of electronic cargo information to CBP for both arriving and departing cargo…

• Canada Border Services Agency requires mandatory advance EDI cargo and conveyance reporting for marine and air mode…

Passenger Information Cargo Information


Collaboration with PanamaCollaboration with PanamaAutomated Data Collection System

Passenger/Crew List, Admeasure data,

Shipping documents etc

Transit booking requests

Ocean Carriers

Wireless/Real-time

Electronic Data Collection System Mobile Data Collection System

Inspection, Processing, Security On Ship

Carrier Agents

Panama Canal Authority

Secure SystemPKI

Risk Assessment

Customs NationalSecurity

Coast Guard

Ports US Agencies


Collaboration with ThailandCollaboration with ThailandAdvanced Passenger Information System

Airlines, SITA, AOT

Rovers Inspection, processing,

security on aircraftONCB, Customs,

Immigrations

Watch/Black list

Real-time

APIS workstations

Risk Assessment Database

Passenger and crew manifest and flight

information

NBIA – APIS

PKI


Collaboration with United StatesCollaboration with United States

OverseasAgents

Forwarder/NVOCC

TradePalette –TradeWeb

TradePalette –Freight

AMS Gateway

Shipping Lines

TradeNet

Other Declaration Systems

AMS US Customs

TradeDec

TradeDec

Booking ConfirmDraft B/LTrack & Trace

Shipper

EDI/RosettaNetData to Forwarder

AMS Submission

Advanced Manifest Submission


Government Agencies(CRA, CFIA)Customer A

(Operates on EDI)

Customer B (Operates on SAP)

Customer C (Operates on Web Platform)

Brokers

• Update• Input• Integrate with

legacy systems

• Submit CI/CSA data• Query duties• Query HS code• Invoke preliminary

payment schedule• Request flexible

reports

CrimsonLogic will transmit and translate from customer’s

format/protocol to Broker’s proprietary format/protocol.

DB ERP

Other Trading Partners

Other Global Service Providers

CrimsonLogic

Collaboration with CanadaCollaboration with CanadaWebCustoms/Advance Commercial Information


About CrimsonLogicAbout CrimsonLogic


Our BackgroundOur Background

Incorporated in March 1988

Four shareholders:

Formerly known as the Singapore Trade Development Board


Key Overseas PresenceKey Overseas Presence

Wholly-owned marketing and operations offices:

Australia Malaysia Saudi Arabia

Canada Mexico Panama

China Philippines UAE

Development center and marketing office:

India

Joint-ventures:

China Mauritius


17 Years of Innovation17 Years of Innovation

2005

2004

2003

2002

2001

2000

1995

1989

Trade & Logistics Legal Government Healthcare Other Areas

eTradeExchange

Legal WorkbenchBizNet

TradePaletteAsianConnect

World’s first TradeNet

IRASLine ALIVE

CARES

Web-based TradeNet

InteReq PRISM

HDBResaleNet

Web-based ProcureNet

BizNet New Generation

LTANet / LTA LinkTradeNet Interactive

CPF Line CCPS

$Link

LitigationTradeNet Version Upgrades

FlexiClaims (Inpatient)

CPF/IRAS Line eConvenyancing

HDB ResaleNet

FlexiClaims(Outpatient)

eLearningCaseWatch

ACCESSTradePalette Agribusiness

World’s first CertOfOrigin

Inventory VisibilityTradeFinance

World’s first eStamping

ClinicWeaver

OfficeWeaver

Singapore TitlesAutomated Registry System

eService ComponentsWorld’s first

Electronic Filing System

Automated Data Collection SystemWebCustoms

FutureFirm

TradePalette LogisticsAdvance Commercial Information

Automated Manifest SystemRosettaNet and AS2 Enabled

Advanced Passenger Information SystemRosettaNet eCustoms System

Iran TradePoint


Global ProjectsGlobal Projects

China

PhilippinesGhana

Mauritius

Canada

MexicoMiddle East

MalaysiaSingapore

Australia

Ireland

PanamaIndia

ThailandLEGALLEGALConsulting projectConsulting project

LEGALLEGALConsulting projectConsulting project

Trade & LogisticsTrade & LogisticsProjectProject

Trade & LogisticsTrade & LogisticsTradeNetTradeNet ProjectProject



Trade & LogisticsTrade & LogisticsConsulting projectConsulting project


More than 20 Govt & Commercial

projects

HealthCareHealthCareHMO ProjectHMO Project


Panama Canal Panama Canal ProjectProject

PKI ConsultancyPKI Consultancy

eLearningeLearning

LEGALLEGALProjectProject Trade & LogisticsTrade & Logistics

ProjectProjectTrade & LogisticsTrade & Logistics

Consulting projectConsulting project


Trade & LogisticsTrade & LogisticsCustoms ProjectCustoms Project


Thank YouThank You

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