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Copyright © 2016 Sovereign Border Solutions All Rights Reserved

E X P E R I E N C E | I N N O V A T I O N | D E L I V E R Y

WCO ICT Conference Customs Training

June 2016


Challenges Shaping Customs’ Context

2

INCREASING TRADE

VOLUMES

INCREASING

THREATS

TRADER

COMPLIANCE

SERVICE LEVELS

CAPACITY

BUILDING

REGULATORY /

LEGAL

CUSTOMS


Strategy Driven and Results Orientated

3

SBS MODERNISATION LIFECYCLE

You cannot change what you don’t understand. Understanding a problem is the

first step to finding a solution…

Understand the context

Structured Approach

Rapid development and deployment methodology

Deliver stable, on the ground results.

DIAGNOSTIC

PILOT IMPLEMENT

STRATEGY & BLUEPRINT BUILD

SOLUTION DESIGN


Customs Transformation Training Curriculum

4

FIRST YEAR

101 Introduction to Transformation

Solution Development Lifecycle

102 Diagnostic Gap Analysis

Capability Assessment

WCO Tools

103 Data Analysis

104 Developing a Rock Solid Business Case

105 Legal Gap Analysis

106 Stakeholder Engagement

107 Strategy for Transformation

108 Transformation Roadmap

DIAGNOSTIC

PILOT IMPLEMENT


SOLUTION DESIGN


DiagnostIQ Customs Data Cube Analysis

5

DIQ Customs Data Cube Insights & Analysis

Establishing the DIQ Data Fact Base

Multi-dimension analysis

Correlation with additional data sources

Key Findings & insights for follow-up

Data Cube Analysis 3

Trade and port profiles

Heat Maps

Risk Management Perf.

Trader Analysis

Commodity Analysis

Profiles & Baseline Stats 2

Identify System landscape & Data Sources

Acquire, Profile, Assess Data Quality, Cleanse, Transform & Augment Data

Cleanse & Prepare 1

Fact Base Understanding the Agency’s performance baseline

Strategic Insights Supports key decision making and strategy development

Business Intelligence Key trends and findings relevant to the Agency across domains of risk, operations and systems

OUTPUTS

Tra

der


Breakdown of Capability Ratings

6

Basic

Basic

Basic

Basic

Basic Basic

Advanced

Advanced

Advanced

Advanced

Advanced

Advanced

Leading Leading Leading Leading

Leading

0%

25%

50%

75%

100%

StrategyManagement

RiskManagement

ICT Ops.EnforcementCustoms

Ops.EnforcementTax

Org Management

Basic Advanced Leading

SP

RE

AD

OF

CA

PA

BIL

ITY

RA

TIN

GS


IT & Automation – – – – – –

Risk Management – – – – –

Integrity Controls – – – – –

Key Performance

Indicators – – – – – –

Customs Control - – – – – –

Knowledge & Training – – – –

Key Issues /

Comments

Limited view of entities as measure of risk

Entity risk is not part of declaration risk scoring

Entity risk is very relevant in Customs, e.g., smuggling, “Ghost” Exports

Transit control system is basic and can be easily circumvented

Transit risk (-$$$) is typically very common in relevant benchmarks

Current system embodies “Gatekeeper” mentality is 100% paper based and 100% control based

Provides Customs a false sense of “control”

Paper based “controls”

Risk engine is simple rules based and “hit rate” volume is too high and yield is too low

Few analytical tools for assessment (e.g., valuation data base)

High potential to embody culture of collusive corruption (-$$$)

Inland clearance sites rely on few inspections.

Agent chooses inspector based on current paradigm

Land borders?

Paper based, dependent on broker processing even for no/low risk.

Customs specific knowledge is lacking.

Poor appreciation for the difference between Customs and tax audits.

Merging audit functions and systems needs to be done carefully.

Possible Solutions Analyses of

registration data for currency and accuracy against transactions history.

Further Segmentation of trader base to inform risk management.

Data Analyses required to estimate extent of problem.

Strengthen transit controls and inspections via transit system and risk engine?

Risk based or even random document checks

Review risk engine functionality and governance.

Begin establishment of Customs risk knowledge base.

Assembly line approach to desk processing

Everyone can make system changes not monitored/audited.

Entity Management

Cargo Management

Declaration Processing

Risk Assessment

Inspections Release Audit Core Customs Process

OVERVIEW OF CUSTOMS CAPABILITY ASSESSMENT



8

SECOND YEAR

200 Blueprint and Solution Design

As-is

To-be

Business Process Re-design

201 Choosing the Right Business Model

Buy/Build

PPP/BOT

202 Business Requirements and Technical Specifications

203 Going to Tender

204 Legal / Regulatory Requirements

205 Programme Management

Building and Enterprise PMO

Project Risk Management

206 Training and Capacity Building Plan

Development of Performance Measures

207 Advanced Stakeholder Management

Other Government Agency

Traders

SBS MODERNISATION LIFECYCLE

DIAGNOSTIC

PILOT IMPLEMENT


SOLUTION DESIGN



9

THIRD YEAR

30

0

Implementation

Test

Pilot

30

1

Service Management

Contact Centres

Channel Management

Social Media

30

2

Continuous Improvement SBS MODERNISATION LIFECYCLE

DIAGNOSTIC

PILOT IMPLEMENT


SOLUTION DESIGN


Process, Policy and IT Optimisation Needed

Multiple Registrations

Paper Doc Checks

Paper Based Registrations

Manual Reporting

Data Capture Errors

System Work Around

Manual KPI tracking

Paper-based audit selection

Value-Adding Effort

Core Functions/Processes

Re

so

urc

e D

istr

ibu

tio

n

Filing Paper

Registration Targeting Cargo Control

Declare Assessment Inspect Audit

Manual workflow

PAPER BASED IT SYSTEM


GRADUATION

11

STRATEGICALLY ALIGNED To the objectives of the organization

STAKEHOLDER CENTRIC Both to Government and trade community

EFFICIENT Optimizes human performance

MEASURABLE KPI’s, cycle times, etc.

INNOVATIVE Transformation vs. Automation

FUTURE READY Adaptable, Extendable, Reusable

ON BUDGET & TIME Accountable to our key stakeholders


E X P E R I E N C E | I N N O V A T I O N | D E L I V E R Y

12

Out of clutter, find simplicity.

From discord, find harmony.

In the middle of difficulty,

lies opportunity Albert Einstein


Sovereign Border Solution is a boutique consultancy that brings together real-world experience, progressive thinking and proprietary tools and methodologies to deliver tangible results for our clients.

Strategy & Advice

We serve as objective advisors to clients in both the public and private sectors, including Governments, private solution providers and system vendors and NGOs.

Knowledge & Expertise

Our staff brings deep domain

knowledge in the field of

Customs, Excise and Border

Control, combined with leading-

edge business management

and information technology

expertise.

Leading Tools & Methdologies

Together with our proprietary

tools and methodologies, we

deliver strategic analysis that

drives the optimization or

modernization of operations,

systems and procedures.

MANAGEMENT CONSULTING FOR CUSTOMS, EXCISE & BORDER MANAGEMENT

Michael Eads Managing Director

Tel: +27 21 702 4554

[email protected]

www.sbordersolutions.com

mailto:[email protected]

Documents

WCO ICT Conference - etouches · PILOT IMPLEMENT STRATEGY & BLUEPRINT BUILD SOLUTION DESIGN. ... private sectors, including Governments, private solution providers and …