Solving Customs Business Process Problems with a Single Source of Data

Overview – GS1 Countries with a GS1 Member Organization Countries served on a direct basis from GS1 Global Office (Brussels) Not-for-profit, industry-driven organization promoting standards- based electronic business and supply chain practices Federated model that includes 114 GS1 Member Organizations in over 150 Countries 1,700+ GS1 employees staff worldwide 2 million user companies produce over 6 billion transactions daily Over 23 industry sectors represented

The Current Border Environment National sovereignty is shifting to regional or even global protocols, changing existing processes and regulatory requirements. Free Trade Agreements (FTA) at a bilateral and multilateral level are having a major impact on customs procedures. With the growth of electronic trade and electronic data exchange, physical borders are transforming into virtual borders, requiring different types of regulatory controls. Cross border internet purchasing has caused the volume of small shipments to explode worldwide, adding extra complexity to the role of border management. The ubiquity of advance e-data is creating growing opportunities for risk assessment and clearance of goods much earlier in the international trade transaction.

GS1 System of Standards

Building the Case for Standards GS1 Standards: Are neutral, global, proven, and time-tested. The GS1 System of Standards is the most widely implemented supply chain standards system in the world. Are already widely used by the most well-known manufacturers, retailers, and logistics firms – the same companies that customs interacts with. In other words, our biggest users are also your biggest users. GS1 Identification Keys are allocated at various levels of the logistics process and can give customs agencies details at any level they require: the shipment, the consignments within the shipment, and the containers for each consignment.

Building the Case for Standards Create the possibility of a simple and immediate “single window”. With standardized data, one submission (e.g.: Customs declaration) can smoothly and easily be accessed by many parties Can contribute to greatly reduced costs by simplifying internal procedures, eliminating duplicate data submissions and significantly reducing the need for manual data entry – and thus reducing labour and the risk of human error.

The GS1 ID Key assigned to any product or service that may be The Barcode GTIN: Global Trade Item Number The GS1 ID Key assigned to any product or service that may be priced, or ordered, or invoiced at any point in any supply chain

Building the Case for Standards Based on pilots conducted in the United States by the International Trade Data System (ITDS), they found that: GTINs can reduce the volume of consumer toy products subject to examination by the U.S. Consumer Product Safety Commission by 75% or more When GPC codes are used in combination with GTINs, the volume of products subject to examination can be expected to be reduced by another 5%, for a total reduction of 80 percent The resulting decrease in the number of toy product examinations could create an estimated $16.8 million in savings for toy importers alone over five years, including $30,000 per year for small and mid-size importers The estimated Return on Investment (ROI) is over $8 for every dollar invested

GS1 Standards & Services Enabling Business Processes GS1 Standards & Services Entry/Exit Counterfeit Goods Prevention Customs Duty Processing Cross-Border Trade

Cross-Border Trade Collaboration Opportunity: Leverage the GTIN to share required regulatory information for imported products with customs & regulatory agencies Benefits: Faster Clearance Consistent application of regulatory requirements Increased transparency and predictability of government processes More effective and efficient deployment of resources Lower administrative costs by reducing delays Improved Identification Techniques of Illegal Operations Easier Trade Compliance

Entry/Exit Collaboration Opportunity: The Canadian Border Services Agency has invested in RFID reader technology at border crossings to enable the automated identification of incoming permanent residents Citizenship and Immigration Canada is now uniquely identifying RFID enabled permanent residency cards with a Global Document Type Identifier (GDTI) Benefits: Faster clearance Improved identification techniques More effective and efficient deployment of resources Lower administrative costs by reducing delays

Customs Duty Processing Collaboration Opportunity: Leverage the GTIN to access product data and associated HS tax code to automatically capture duty information Benefits: Automated calculation of duty/fees owed Reduced time and resources Accurate and easy to use (similar to point of sale in a grocery store)

Counterfeit Goods Prevention Collaboration Opportunity: Incorporate the World Custom’s Organization IPM (Interface Public-Members) tool to increase ability to detect counterfeit goods GS1 Identification numbers extend product range and data availability in IPM improving Customs capacities to detect counterfeit products Benefits: Improved identification of illegal operations  

The Path Forward GS1 can help customs agencies by: Increasing the visibility of products as they travel throughout the global supply chain to international borders. Enabling them to seamlessly interoperate by sharing electronic product and regulatory information with other government agencies, industry and each other. Improving their authentication procedures to verify products and players in the supply chain as genuine and legal. Using GS1 Standards, customs agencies can make quicker decisions, efficiently managing products through cross-border clearance and can improve risk management practices, increasing security and safety for consumers. 

Imagine a World Without Standards….

Contact GS1 Canada Ryan J. Eickmeier M.P.P., LL.M. 1500 Don Mills Road, Suite 800 Toronto, Ontario M3B 3K4 Helpdesk +1 800-567-7084 www.gs1ca.org Ryan J. Eickmeier M.P.P., LL.M. Senior Director, Public Affairs T +1 416-510-8039 x.2377 F +1 416-510-1916 E Ryan.Eickmeier@gs1ca.org