Capacity Building Workshop on Trade Facilitation Implementation 18 March 2005 Dagang Net Technologies Sdn Bhd 20 th Floor, HP Towers Jalan Gelenggang, Bukit Damansara Kuala Lumpur, Malaysia

18 March 2005 Page 2 Single Window System Implementation - Malaysian Experience

18 March 2005 Page 3 Presentation Outline The Malaysian Legacy System Understanding the Definitions Dagang Net’s Approach Challenges

18 March 2005 Page 4 The Malaysian Legacy System Many forms RefType of FormPurposeAuthority 1.Kastam 1 Importation into Principal Customs Area (PCA)Royal Malaysian Customs (RCM) 2.Kastam 2 Exportation from PCARCM 3.Kastam 3Movement of goods between Peninsular Malaysia and East Malaysia RCM 4.Kastam 8Bonded CargoesRCM 5.Kastam 9Removal of Goods from Bonded WarehouseRCM 6.Kastam 4Inward (Import) ManifestRCM/FZA 7.Kastam 5Outward (Outward) ManifestRCM/FZA 8.ZB1Importation of goods into the Free Commercial Zones (FCZ) Free Zone Authority (FZA) 9.ZB2Re-export from FCZFZA 10.ZB3TransshipmentFZA 11.JK69Permit to import/exportOther Govt Agencies (OGA)

18 March 2005 Page 5 Single Filing A single form or administrative document to multiple authorities for processing and approval for import and export trade related purposes Single Window System “One stop” platform, enabling standardised data, where the data from one application can be re-used by other applications for various authorities approval. (Example: filing permits, and the permit data is re- used for Customs declarations) Understanding the Definitions

18 March 2005 Page 6 DNT’s Web of Service and Value-Add

18 March 2005 Page 7 Data Repetition in Trade Documentation Customs Declarations Commercial Invoices Request For Delivery Space Booking DG Declarations Integrated Export Documents Export Permits Manifest Insurance 95% data repetition 70% data repetition 30% data repetition 70% data repetition 40% data repetition 70% data repetition 90% data repetition

18 March 2005 Page 8 Common Data in Supply Chain Data that is re-usable in documentation throughout the Supply Chain Associating data for linking and aggregating all supply chain documentation

18 March 2005 Page 9 Common Data / Many Entities

18 March 2005 Page 10 Dagang Net Exchange’s role in Trade / Supply Chain Aggregation Extended Data Re-use Accuracy Efficiency Speed Single point-of-reference Cost Savings

18 March 2005 Page 11 Changing technological platform Embarking aggressively on emerging technologies Adopt the Single Window System concept The Traditional Role New Dagang*Net SMK (KDRM) Communiti es Users Mail-boxing Facility E-Logistics Trade Facilitation Production, Supply Chain Financial Services Document Exchange Online Software Solutions Content /Information Marketplace Dagang Net Exchange Dagang Net’s Approach

18 March 2005 Page 12 Dagang Net’s Implementation Rolled out web-based eDeclare Service in April 2002

18 March 2005 Page 13 Dagang Net’s Implementation Rolled out eLogistics in August 2002 Rolled out ePermit in September 2004 Rolled out CBex in December 2004

18 March 2005 Page 14 DAGANGNET MNCForwarding Agents Malaysian Customs Customs Declaration (UN/EDIFACT) Rosettanet PIP 3B18 Notification eLogistics eDeclare 1.Standards Conversion 2.Data Population Dagang Net’s Implementation - eLogistics Service

18 March 2005 Page 15 User login User Welcome Screen Select criteria Dagang Net’s Implementation - eLogistics Service

18 March 2005 Page 16 Auto population of PIP3B18 data to eDeclare & submit Status Screen Dagang Net’s Implementation - eLogistics Service

18 March 2005 Page 17 Malaysia Traders Cross-Border Single Window System DAGANGNET Malaysian Customs eDeclare Declaration Data Foreign Traders Foreign Customs Customs Declaration Customs Declaration (UN/EDIFACT) CountryVANStatus SingaporeCrimsonLogicDecember 2004 Chinese TaipeiTradeVanJanuary 2005 CBex 1.Standards Conversion 2.Data Population Dagang Net’s Implementation - Cross Border Service (CBex)

18 March 2005 Page 18 Search criteria Search Results User login Dagang Net’s Implementation - Cross Border Service (CBex)

18 March 2005 Page 19 View Summary Records Accept incoming messages Auto population of CBex data to eDeclare & submit Dagang Net’s Implementation - Cross Border Service (CBex)

18 March 2005 Page 20 Dagang Net’s Plan (2005 – 2007) Order/PrepareTransportCustomsPayment BuyShipPay Application Architecture / Infrastructure refreshment Integrating the trade value chain through the deployment of BPM (Business Process Management) workflow and technology Extension of Cross-border service to Thailand and Indonesia

18 March 2005 Page 21 Private sector initiative Customs procedures and data requirements vary between countries Resistance to change Proliferation of broadband services nationwide Challenges

18 March 2005 Page 22 Conclusion “Single Window System implementation is all about business & NOT technology” Single Window System is not about implementing a solution. It is about implementing CHANGES for the benefits of all parties to increase national competitiveness

18 March 2005 Page 23 Terima Kasih Thank You