ASYCUDA Automated SYstem for CUstoms DAta ASYCUDA introduction Functional overview Technical overview Project implementation PROGRAMME PRESENTATION

ASYCUDA – SYDONIA – SIDUNEA* * Automated System for Customs Data 1981 The ASYCUDA Programme was born in UNCTAD ASYCUDA version 1 will be implemented in 3 countries 1984 Launching of ASYCUDA version 2 ASYCUDA PCs + LANs will be installed in many countries 1994 Launching of ASYCUDA++, or version 3 ASYCUDA wide area networks are in use worldwide Four E.U. countries use ASYCUDA++ 2004 ASYCUDAWorld, or version 4, uses cutting edge Internet and wireless technologies. First ASYCUDAWorld implementation projects starting * Automated System for Customs Data

* Source: UNCTAD Handbook of Statistics 2003 ASYCUDA WORLDWIDE Countries Import* CIF (b $) Export* FOB (b $) Customs sites ASYCUDA C. sites 84 242 230 1,936 1,345 ASYCUDA Computers Trained Users 21,900 31,700 ASYCUDA Declarations (yearly) Languages 15,131,000 19 * Source: UNCTAD Handbook of Statistics 2003

ASYCUDA OBJECTIVES Enforcement & Security Trade Efficiency Fiscal & Statistic Accurate calculation of duties & taxes [Integrated Tariff, Value,…] Monitoring of payments [Deferred, cash, …] Timely and accurate statistics [Trade balances, …] Enforcement & Security Control of cargo [manifest-declaration crosscheck, warehouse,…] Risk management [risk-assessment, selectivity, shipment targeting…] Container security initiative [risk prevention] Trade Efficiency EDI, Direct Trader Input Norms and standards [KYOTO, HS Tariff, ISO, WCO, UN/EDIFACT …] Uniform application of Customs law

ASYCUDA TANGIBLE RESULTS Fiscal & Statistic Fiji, Gabon, Iran, Romania, Venezuela, Yemen … Enforcement & Security Bolivia From 100% physical inspection to: 22% physical inspection 24% documentary check 54% direct release (Customs Act No 1990, July 1999) Trade Efficiency Venezuela: Import procedure reduced from 37 steps to 7 steps Albania, Jordan: DTI requested by the Traders El Salvador: ISO 9000

CUSTOMS MODERNIZATION MULTI-COMPONENTS PROJECTS To reform and modernize the Customs Administrations, aligning the legal framework, their organization and procedures to international standards and best practice, and ensuring their expected role in a modern market economy* ASYCUDA provides the core software and related expertise to create an efficient and effective environment for the management of Customs operations. Its proven Customs software and experience are guarantees of successful implementation. IT Components To modernize the Customs information technology infrastructure and build e-government facilities for information and interaction with the trade community, including electronic filing of declarations* *Source World Bank – various project documents

Modernization of Customs, the essentials* GOV, IMF, WB 2 1 GOV, ASYCUDA Adopting modern, simple procedures, in particular movement from physical to post clearance control Establishing coherent trade policies and clear supporting legislation GOV, ASY, Trade ALL 3 4 Ensuring incentive and organizational structures conducive to integrity and effectiveness in Customs Shifting to substantial reliance on self-assessment by the trade operators *Source IMF – Changing Customs, Challenges and Strategies for the Reform of Customs Administration

ASYCUDA Automated SYstem for CUstoms DAta ASYCUDA introduction Functional overview Technical overview Project implementation PROGRAMME PRESENTATION

CUSTOMS EXPERTISE & EXPERIENCE ASYCUDA DEVELOPMENT Openness Communicate with other IT systems; Evolve with the moder-nization of IT hardware and techniques; Evolve according to users countries requirements; Evolve according to developments done by users countries; Independent from Hardware suppliers. UNCTAD MANDATE CUSTOMS EXPERTISE & EXPERIENCE NORMS & STANDARDS Flexibility Be usable by Customs with variable sizes and different types of organization; Cover the specifics requirements of User countries (recom-mended practice, good governance). ASYCUDA COUNTRIES REQUIREMENTS TECHNOLOGY COUNTRIES FEEDBACK

ASYCUDA FEATURES Unique and complete, the same system: Is operational in 84 countries implementing 84 different national regulations; Allows Customs Administrations to handle automatically the whole Clearance Process; Provides adequate functionality for all steps in the Customs Clearance Process (Modular design); Includes powerful management of taxation and Customs declarations versions.

CUSTOMS CLEARANCE PROCESS Arrival of goods (e.g. from transit) Goods are placed under Customs control Temporary storage of goods Processing of goods Goods are declared Goods are controlled Duties are paid To introduce the functionality of the system it is useful to have a look on what composes the clearance process independently of manual or computerised environment . Release of goods Output: Statistics & Audit

ASYCUDA – FULL CLEARANCE PROCESS TRANSIT MANIFEST Carrier Electronic Manifest CUSCAR TRANSIT SHED Trader: DTI, EDI, CUSDEC DECLARATION PROCESSING TEMPORARY & ECONOMIC PROCEDURES RISK MANAGEMENT PAYMENTS & ACCOUNTING Banks, Treasury Electronic payments, Credit One of the limits that can be found in Customs Computerisation is to have different systems that are collaborating together or not. We have often found the case, before implementing ASYCUDA where exist a limited system for capture of declaration data, an embryo of manifest management and some functions for accounting. Often there was very limited or no communication at all between these system. But, even in case of cooperation between systems, one can easily find “Holes” in the process, and obviously these holes are rapidly identified by the fraudulent traders and used to release goods at lower cost. ASYCUDA has the advantage to offering a unique system that is fully integrated and covers all the steps of Customs Clearance, with mutual auto-control between the data bases at the various steps of the process. The first database (i.e. the manifest) corresponds to the placement of goods under customs control. Of course this concept can be very broad depending of the goods, the country of destination and manly the trader TRANSIT SHED Trade balance STATISTICS & AUDIT Data mining

Integrated Process COVERAGE Integrated databases Cross check controls Cargo Control All the goods placed under customs control must be declared … Payment control To secure revenue collection, release of the goods must be granted only if duties are paid or guaranteed

CUSTOMS HEADQUARTERS Tariff and control tables management National configuration Office configuration Risk management User profiles

+ PROTOTYPE BUILDING Reference database Configuration Forms & documents Law & regulation Reference database Reference database To operate a Customs computerized system it is necessary to input in the system the national legal framework, i.e. the customs applicable regulation in a form that the system can process and a language that the users can understand. This customs applicable regulation includes: Tariff and taxation Forma and documents (Implementation of ASYCUDA was often linked wit adoption of the SAD) Files and codes Law and other regulations. This will result in the creation of the system reference database allowing to control and process the transactions Configuration ASYCUDA is unique but among the user countries exist many different Customs cultures, multiple situations (e.g. Landlocked countries Vs seaside and islands, strong currencies vs week currencies), thus meaning that there are different way to handle procedures and to solve questions, and the system has to offer different solutions, the user country selecting the most suitable to its national conditions. This is what is called “Configuration”. Configuration allows to adapt the system to the national environment t or to specific local conditions (office configuration). + Customs tariff & taxation Configuration Files & Codes

ASYCUDA STANDARDS COMPLIANCE Harmonized System Tariff (WCO) Revised Kyoto Convention (WCO) Data Standardization (WCO/CDM, TDED) Normalized Codifications (ISO) UN/EDIFACT standards Regional norms (EU, ECOWAS, COMESA) From the origin normalisation of documents and data standardisation are among the principles at the base of the ASYCUDA development. At the age of global economy, speaking the same “language” or understandable languages is essential for exchange of ideas between peoples. It is absolutely mandatory between IT systems specially if dealing with international trade.

PRACTICAL CASES Case #1 – Import Transaction - Trade Efficiency – Streamlined Procedure Case #2 – Import Transaction – Efficient Customs Control Case #3 – Monitoring of Transit

B2B INTERNATIONAL TRADE TRANSACTION Export declaration Merchandise XML Import declaration

GREEN LANE DECLARATION PROCESS Deferred / Credit / e-payment Import declaration The declaration processing is the core of the Customs Clearance. The system performs the following background processes for validation [This list is not exhaustive]: Manifest Tariff and other control files Previous documents Risk assessment Taxation Control of Payment … e-SAD Assessment Request Risk Management Deferred / Credit / e-payment e-notification Release note Merchandise

Import transaction / Trade efficiency Streamlined procedure PRACTICAL CASE #1 Import transaction / Trade efficiency Streamlined procedure Preparation and validation of an e-declaration Customs controls performed 5-minute clearance Paperless

RISK MANAGEMENT CUSTOMS CONTROL Inspection Act Customs Declarations ASYCUDA SELECTIVITY ENGINE Direct Release CUSTOMS CONTROL Post clearance control Documentary check RISK POLICY Goods examination Manifest & Waybills This slide presents the risk assessment function of ASYCUDA and the different selectivity channels. All the data elements of the declaration and of the B/L are usable by the selectivity, this meaning they can be tested and checked by the criterions to select the declaration or BL and direct it to a control channel. There are four channels (describe) plus the possibility to place the declaration on a query status while waiting the issue to be solved. Query status Manifest screening Inspection Act Feedback analysis

Random selection completes the criteria RISK MANAGEMENT Selectivity criteria identify the transactions that have to be controlled e.g.: Fiscal risk: High duty rate goods => loss of revenue Health/security risk => Prohibited or controlled goods Random selection completes the criteria Selectivity parameters allow to apply the selectivity policy (rates of control) according to available resources e.g.: Why select 200 declarations if only 50 can be controlled by the available Customs staff?

Efficient Customs control Storage of results – data mining PRACTICAL CASE #2 Import transaction Efficient Customs control Validation of an e-declaration Pertinent Customs controls performed Transparency (assistance to user) Storage of results – data mining

ASYCUDA Automated SYstem for CUstoms DAta ASYCUDA introduction Functional overview Technical overview Project implementation PROGRAMME PRESENTATION

Ensuring that information is not accessed by unauthorized persons COMPUTER SECURITY Confidentiality Ensuring that information is not accessed by unauthorized persons Integrity Ensuring that information is not altered by unauthorized persons in a way that is not detectable by authorized users Authentication Ensuring that users are the persons they claim to be

Secure communication protocols X509 e-Certificates TECHNICAL SECURITY Java security model Resources protection, no foreign intrusion Asymmetric Cryptography (multiple providers) Secure communication protocols SSL, RMI extended, End to end security X509 e-Certificates Public Key Infrastructure (multiple providers) e-Signature e-Document data integrity (no possible forgery) Biometrics User authentication

FUNCTIONAL SECURITY Document Processing Path Status Document ownership – Protected access Operation authorized for {business units} User profile belongs to {business units} Full audit – Document historical detail Full operation tracking Status Operations

T1 DOCUMENT PROCESSING PATH ARCHIVED DELETED CLOSED CANCELLED NULL EXTERNAL STORED REGISTERED GOODS ARRIVED CONFORM NON CONFORM

ASYCUDAWorld n-TIER MODEL SQL XML vieW View Relational Databases Document Object Model User Friendly MM Interface Business Rules Connector Data Rule Facet

ASYCUDAWorld - MATURITY Technology Scalability {Adequate system architecture} Centralized vs Decentralized Evolution {Focus on user demand} Technology, Internet standards System deployment, maintenance, development Infrastructure and Budgets Flexibility Open environment Model e-Documents {customizable} Third party providers {cryptography, tools, …} Large e-Document set i.e. emerging e-Gov. applications Customs software toolbox and framework

ASYCUDAWorld TECHNICAL REQUIREMENTS Deployment Affordable cost of maintenance / upgrade Flexibility to adapt to various partners Infrastructure, timeframes, budgets, etc. Market driven Fast adaptation to functionality change Quick response / integration to technology evolution Truly open SECURE system State-of-the-art security systems Ability to integrate multiple interfaces to businesses

ASYCUDAWorld MAIN TECHNOLOGY JAVA [OS independent: Unix, Windows …] DB Independent [Oracle, Informix, SQL Server …] State-of-the-art security model based on asymetric cryptography, Public Key Infrastructure [PKI] and e-certificates Internet client-server n-tier model Support from high end to low end Internet clients Hierarchical Document Object Model [DOM, XML …] Resilience to telecom breakdowns, mobile computing Ergonomic User Interface [WYSIWYG …] Dynamic [no cost] deployment

ITC HARDWARE – From High-end clusters to low end computers OPEN ENVIRONMENT Operating Systems DataBase vendor UNIX SOLARIS, AIX, HP-UX, SCO Unix LINUX Suse, LINUX Red Hat, LINUX Debian, ... MS/Windows XP, 2000 Mac OS X … ORACLE DB2 INFORMIX SQL Server MS/Access INTERBASE FIREBIRD SYBASE … SYSTEM INTEGRATORS ITC HARDWARE – From High-end clusters to low end computers

ASYCUDA Automated SYstem for CUstoms DAta ASYCUDA introduction Functional overview Technical overview Project implementation PROGRAMME PRESENTATION

GEOGRAPHICAL IMPLEMENTATION Regional Customs House Customs Administrations, International Organizations, Intelligence Databases, Intelligence Systems… Customs Office Abroad Intelligence Transit Border Post HQ Estonia Fully centralised system 840 computers 57 sites (HQ+5 RCD+51LCO) Regional Customs House Border Post Romania Decentralised system 2,200 computers 137 sites (HQ+12 RCD+124 LCO) Inland Clearance Office Border Post Border Post Customs Office Abroad Transit ASYCUDA UNCTAD

ASYCUDA IMPLEMENTATION STRATEGY Protection of previous investments Co-existence/operation of ASYCUDA World and ASYCUDA++ Full compatibility with existing ASYCUDA peripheral systems Implementation according to country’s technical/financial resources Countries’ ownership Transfer of technical know-how to National Project Teams at early stage Source code provided to Customs Administrations Facility to develop national extensions from existing ASYCUDA modules Full advantage of new technologies Non-disruption of operational Integrated Customs IT Systems Low-cost deployment and maintenance

PROJECT PHASES Phase 0 (preparatory / pre-implementation) Phase 1 (pilot) Phase 2 (roll-out)

PROJECT PHASES Phase 0 Pre-implementation activities Phase 1 (pilot) Feasibility Study / Project Document Phase 1 (pilot) Phase 2 (roll-out)

PROJECT PHASES Phase 1 Phase 0 (preparatory / pre-implementation) - Pilot Phase 1 Training of the National Project Team (Foundation) - Technical, Functional, Train-the-Trainers - Evaluation / Certification Awareness activities Prototype building - Integration of national legislation/procedures/codification Configuration according to organisational structure, telecom Definition of specific country reports Training of end-users and advanced training of NPT Prototype testing - HQ + Regional + Local (inland + border) Review / Pilot acceptance - Pilot test methodology & scenarios Phase 2 (roll-out)

PROJECT PHASES Phase 2 Phase 0 (preparatory / pre-implementation) Phase 1 (pilot) - Rollout Phase 2 Technical assistance to the National Project Team Final review / Acceptance

CUSTOMS IT SYSTEM - COMPONENTS Operating System Integration ASYCUDA Training Additional Software RDBMS IT Hardware Telecom Hw & Sw Servers, PCs, Printers, UPS etc Internet, Office etc

POST-IMPLEMENTATION SUPPORT In the framework of a project / MOU ASYCUDA new releases Updates of technical & functional doc and training materials Remote technical assistance Error solving ASYCUDA website Discussion forum Error reporting/Change requests escalation mechanisms Technical services on cost recovery basis Specific technical assistance Change requests Regional technical support centres Africa - Ouagadougou, Burkina Faso - COMESA Secretariat – Lusaka, Zambia Americas & Caribbean – Caracas, Venezuela Asia & Pacific - Kuala Lumpur, Malaysia - Pacific – Suva, Fiji Central & Eastern Europe - Geneva

ASYCUDA Web PRESENCE

MANAGEMENT STRUCTURE UNCTAD / ASYCUDA Projects Central Team - Programme Co-ordinator - Regional Co-ordinators - Functional and Technical Teams Field / Technical Assistance Teams Projects Steering Committee National Project Director National Project Manager National Project Team - Users Team (functional) - Technical Team - Training Team

PROJECT DOCUMENTATION Pre-implementation / Preparatory Phase Feasibility Study Preparatory Phase Doc Agreement / Project Plan Project Document Description of Services/Operation Reporting - Monthly Reports - Quarterly Reports - Final Report Reviews - Phase Reviews - Final Review

ASYCUDA Automated SYstem for CUstoms DAta PROGRAMME PRESENTATION