Implementing ASYCUDA World Experiences from Africa – the Zimbabwean case Peer to peer learning workshop June 11 – 12, 2013 Livingstone, Republic of Zambia

Implementation Agency Sponsor Project Management Implementation Agency Development overview “to be citizen centric and take government business applications to the people and business”

Desired outcomes Improve service delivery by offering relevant and affordable government services / applications to all the citizens of Zimbabwe, Assist the Country in Meeting its Millennium Development Goals (MDG),

Desired outcomes Improve Zimbabwe’s credit rating and doing business perceptions at a local, regional and international level e.g. World Bank Ease of doing Business Index, Attract competitive financial resources for investment in the country on the basis of a secure, reliable and cost efficient trade facilitation regime / programme (Trade Facilitation Reforms) .

“We will eat what we have hunted” Minister of Finance - Zimbabwe Project sponsorship “We will eat what we have hunted” Minister of Finance - Zimbabwe

ZIMRA – Automation Flag ship project Zimbabwe has an automation project that is earmarked for the whole of the civil service. Zimra was nominated as one of the 14 National flagship sub- projects that were restarted in earnest in 2009 after the dollarization of the economy. ZIMRA’s strategic role in Revenue Mobilisation in a country with little or no foreign investment also recognised and critical resources availed for project implementation.

ZIMRA – Automation Flag ship project Support and oversight is provided from the Government, through the Ministries of Finance and Information & Communication Technology and the Modernisation Unit in the Office of the President and Cabinet. At the Revenue Authority level the Board of Directors and the Commissioner General provide the support and project oversight as the project sponsors.

Where does ZIMRA fit in the Government ICT strategy?

Where does ASYCUDA world sit in ZIMRA? ASYCUDA World is: The transactional system for standard Customs and Excise operations Accounting and Receipting system of other non standard taxes and revenues e.g. Insurance & permit fees at ports of entry & exit and inland offices Centre piece in the collection and apportionment of ALL government revenues. Creating a single collection point for the client. E – Citizens’ Portal (360 Degree view on ALL transactions – Domestic Taxes, Customs & Excise) Business Reporting / Performance Dash Boards (Internal Portal) Risk Engines & SPSS Modelling Tools Design Objectives that have been Met: Web Access for Internal & External Users of the System – 24/7/365 Interoperation online with other systems – Government and Private Business Intelligence (Data Warehousing) Layer Oracle Exalytics / SAP HANA SAP Financial Management (FI) (Corporate Reporting) Asycuda World SAP Tax and Revenue Management (TRM) SAP Master Data Management (MDM) MDM used for the Government of Zimbabwe E-Gov initiative as a whole. (ISIC adopted as master data collection & reporting Model / Standard for industry sectors & economic activity)

Challenges & Bottlenecks Technical Implementation Issues & Considerations

Technical Implementation Issues & Considerations Lack of adequate bandwidth capacity to effectively centralise operations from one production server, A national level problem where the country’s Optical Fibre and Microwave Networks are not developing in tandem with the requirements of the Asycuda World development and roll out. Stakeholder engagement from the Customs Authorities to influence the way the country’s networks evolve. Last mile connectivity poor for remote Border Posts and Inland Offices. Upgrade systems from VSAT to microwave platforms. “Sharing infrastructure with the Mobile telephone operators”.

Technical Implementation Issues & Considerations Balancing of bandwidth, transactions & users “There is never enough bandwidth”. The bandwidth resources need to be balanced at all times. As Revenue Authorities and Customs Functions there is always competing needs for bandwidth, e.g. email applications, Internet access, other line of business applications, CCTV images. There is need to shape traffic and prioritise line of business applications – Riverbed & Exinda network management tools vital.

Technical Implementation Issues & Considerations Lack of preparedness by private sector – “Perception that govt. is catching up with the private sector”. Private sector players need upscale their hardware and up skill their staff. A critical component for them to start working on line and real time. Government had to give an import subsidy for computer equipment. 5% duty for commercial imports and 0% for personal importations.

Technical Implementation Issues & Considerations Weak log in security features Now addressed in version 4.20 onwards, in the next 7 days we will be doing a technical upgrading to the new version / platform. Security will be a central feature as Asycuda moves from being transaction management system to a comprehensive trade facilitation platform. This will involve the introduction of all other government stakeholders (Single Window / Coordinated Border Management). Seriously consider using Novell Access Manager or such tools as standard - complete security, locking out anyone who tries to attack business operations or IT infrastructure over the Internet.

Technical Implementation Issues & Considerations Weak reporting system / platform Reporting is still concentrated at the station level and not yet aggregating at a National level. This then dictates that reconciliations and reports are being manually generated and there is no single version of the truth. We are having to develop interfaces to other applications for consolidation. Power Shortages and Outages Power shortages impede the smooth movement of cargo when border posts resort to manual processes. Zimbabwe is now installing solar power farms at critical points to run computers, network equipment and lighting for all border agencies.

Challenges & Bottlenecks Change Management Issues & Considerations

Technical Implementation Issues & Considerations Mind-set change from “decentralised is good” to “centralised is good”, When ASYCUDA was introduced it was in a decentralised mode with each border post having its own server and ecosystem of traders and customs officials. This was a recipe for corrupt tendencies and hence the resistance to lose control to a central system. “This was not negotiable and the system was designed from that basis and rolled out as such” Fear of job loss – internal & external users – not correct as there is retooling and reskilling of staff who are deployed to new operational areas.

Technical Implementation Issues & Considerations Resistance to change by traders and Revenue Authority staff and the Fear of loosing control, ICT staff had to learn subordinate to Business in system development and project management and provide technical expertise. Manual environment and face to face interaction created demi gods of customs officers and there was fear of losing control and most importantly discretionary powers. Automated systems to remove discretionary powers and face to face interaction with brokers, i.e. dedicated email system, attachment of documents.

”No matter how small, acknowledge the achievement” – Greg Henry Quinn Success & Innovation ”No matter how small, acknowledge the achievement” – Greg Henry Quinn

Success & Innovation Centralised operations on a high availability hardware platform, This has been very crucial in stabilising our operations whilst we started concentrating on appropriate Disaster Recovery Centre and continued with development work for future system roll outs Replication of production hardware to a disaster recovery centre (servers, storage & communication equipment) still in progress, Centralised transit bond account management, Brokers now use one bond account for moving goods in Bond or transit instead of multiple manually managed accounts – Streamlining of procedures and reducing the costs of compliance.

Success & Innovation Centralised prepayment account management, Brokers also now use one prepayment account and there funds are committed to treasury on registration of the Bill of Entry / SAD. E-Query Notification & Request to Amend (E-Form 45) Based on the internal Asycuda world e-mail system, the brokers and traders are electronically notified on any queries from the Customs Staff and they can in turn respond on line and attach documentation. E- Voluntary Disclosure (E-Form 45A) Again the brokers have a facility to voluntarily request an amendment or to do a disclosure before the entry is finalised.

Success & Innovation Master data management Defaulting of declarant details at declaration processing level instead of punching the details at all times especially on Private & Commercial Importations. E-declaration processing – attaching supporting documents Attachment of ALL relevant documentation and once the Single Window is fully implemented, the requirement to lodge copies of documentation for sake of other government agencies will be removed. Electronic appeals process, This is based on the resident e-mail and work flow processes and these will get rid of all manual processes once the integration is achieved with the Microsoft based E-Citizens portal.

Success & Innovation Declaration processing centres (DPC), Centres setup in Harare, Bulawayo and Masvingo to manage the processing of declarations. The idea is to separate the declarations from the normal ports of entry and exit and inland ports. Accounting and receipting of local and special taxes Due to the tariff draw downs that are coming on board, there is a new lease of life for ASYCUDA as we are now using it to collect traditional non tax revenue like Insurance and Special Excise Taxes.

Success & Innovation Electronic management of part shipment of bulk transit consignment e.g. relief food Management supervision – internal and external Reduced workload on customs - (working on extending to importers)

Stakeholder engagement

Stakeholder Engagement – Head Office Zimbabwe Revenue Authority (ZIMRA) to Business Memorandum of Understanding (MOU) is now in place. A formal platform for meeting all the major business organisations like the Confederation of Zimbabwe Industries (CZI), Zimbabwe National Chamber of Commerce (ZNCC), Construction Industry Federation of Zimbabwe (CIFOZ) and the Zimbabwe Chamber of Mines. All managers in the Authority assigned key and strategic business bodies at least once a quarter to discuss pertinent issues that affect that sector of the business community. Breakfast meetings periodically held with business leaders where issues are discussed and proposals tabled for better revenue administration. All the above where done prior and post Asycuda World implementation. Monthly discussion meetings with Shareholder to review progress and resource allocation..

Stakeholder Engagement – Border Posts Border Coordination Meetings with other Government Stakeholders held every month at all Border posts to review operations. Monthly discussion meetings with Shareholder to review progress and resource allocation. Periodic Meetings Border coordination meetings held between Zimbabwe and the countries that share the Border Lines and Border Post. These are held at operational, middle management and National level. All the above where done prior and post Asycuda World implementation.

2013 plan .

User Acceptance Test in Progress E-Temporary Import Permit for Visitor’s Vehicle E-Examination Order – notification for examination of goods for selected cargo Post Clearance Audit – delay due to SLA and legislation review (AEOs) – now in place Forced password change – ICT Policy E-Single Window

Processes in the development stage E-Customs State Warehouse Management State Warehouse in SAD (SWH-in-SAD) E-Notice of Seizure E-Receipt For Items Held Excess & shortage process flows Electronic receipt of goods into the SWH Inventory management Electronic allocation of storage bins Disposals by public auction (Rummage sales) Destruction of goods (SWH – Write offs) State Warehouse out SAD (SWH-out-SAD) Online decision making and appeals process for goods under seizure (Station Manager right up-to Commissioner General)

Processes in the development stage E-Customs Clearance Certificate – currently in SAP – design to allow for automatic generation upon final assessment of declaration E-Vehicle Registration of newly imported vehicles – inventory management of vehicle number plates to enable linking to the CCC & the SAD Online approval of removals in bond (RIBs), licences & permits quota management - currently physical documents Finger print recognition for private importers Activation of bar code for document management Integration of ASYCUDA world to non-intrusive inspection software – to facilitate transit cargo and removals in transit through comparison of images

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