Philippine Maritime Law Annual Conference 2012

16 October 2012 Manila Diamond Hotel

MARIA CARIDAD P. MANARANG Deputy Commissioner p y Management Information System and Technology Group Bureau of Customs

MODERNIZATION NOT AUTOMATION

DRIVER: WHAT NEEDS TO BE DONE NOT

HOW

BOC MODERNIZATION INITIATIVES PRESENTATION OUTLINE

Current Situation in the BOC
ICT Infrastructure Customs Systems Philippine National Single Window Phase 1

MODERNIZATION INITIATIVES
Streamlining/Simplification Process ICT Infrastructure Refresh/Upgrade Customs Systems Philippine National Single Window Phase 2

ASEAN Single Window/NSWs Link g

CURRENT SITUATION IN BOC ICT INFRASTRUCTURE

Inadequate bandwidth for WAN connections End-of-life d b l t E d f lif and obsolete servers/equipment / i t Inadequate computing power for other applications Close to full production server capacity with no provision for archiving facility Poor to nonexistent HW/SW maintenance contracts Unclear security policies and protocols Lack of budgetary resources for maintenance and upgrades ICT development is f C fragmentary and delivered through self-contained projects Not adequately staffed MISTG to manage the extensive BOC ICT infrastructure OC C f

CURRENT SITUATION IN BOC CUSTOMS SYSTEMS

The e2m system has not delivered major improvements in terms of simplified procedures Implementation of e2m is incomplete some incomplete, modules have yet to be implemented There are modules not fully integrated to e2m, requiring manual intervention Some modules still running in the old ASYCUDA system, hybrid implementation of ASYCUDA/e2m is costly and inefficient No effective intelligence system to feed risk management VASP arrangement i insecure, with private t is i ith i t companies having access to confidential trade data No significant value added is provided by VASPs to justify f j tif fees charged to traders h dt t d Accreditation is a prerequisite to transact with BOC

CURRENT SITUATION IN BOC PHILIPPINE NATIONAL SINGLE WINDOW

PNSW Phase 1 has been completed, under warranty until 21 October 2012 PNSW system has delivered improvements to the permit application process in terms of integrity and control Phase 1 provides an initial facilitation step for traders but full potential not realized since link to p e2m still not completely done Some permits are processed through VASPs, no logical l f VASP i l i l role for VASPs in PNSW Phase 2 Ph PNSW Phase 2 is (VERY) delayed Future governance model long-term sustainable model, long term financing structure has not been formulated

PHILIPPINE NSW OVERVIEW

WHAT DOES IT DO?

Helps traders apply for permits, licenses and H l t d l f it li d clearances online Gives information on the progress of application Gi i f ti th f li ti at the agency Gives direct link to Customs for faster goods clearance Increases the transparency and predictability of government processes

MODERNIZATION INITIATIVES

STREAMLINING/ SIMPLIFICATION PROCESS

Importer/ Broker

VASP

a. E t N b Entry Number b. Status b1. Registered b2. Conference b3. b3 Paid b4. Released c. Time d. Remarks d1. Alert Order d2. Physical Examination, X-ray Inspection, d3. Additional Duties & Taxes d4. For Release d5. For Verification

e2m

FED Receiving Section

Sec. 1A Food Stuff Sec. Sec 1B Food Stuff Sec. 2 Textile & Textile Articles Sec. 4 Machinery Electrical Sec. 5 Motor Vehicles Sec. 6 Machinery Non-Electrical y Sec. 7 Machinery Non-Electrical Sec. 8 Machinery Non-Electrical Sec. 9 Iron & Steel Products Sec.10 Hardware Sec.11 Fuel S 11 F l & Oil Sec.12 Plastic Products Sec.13 Tobacco & Fuel Sec.14 Miscellaneous Sec.15 Sec 15 Miscellaneous

Broker s Brokers Lounge (Status Update)

e2m

Payment/ Release

MODERNIZATION INITIATIVES ICT INFRASTRUCTURE

BOC NETWORK PROJECT IS IN PROGRESS! (to (t upgrade and refresh the BOC network) d d f h th t k)

CURRENT BOC NETWORK

NAIA
CEPZA Mariveles Limay FTI Puerto Princesa

CLARK

PL DT L

/L

I.C.T. Center

MICP

Bayantel MPLS IP/VPN

BATANGAS
Postal Office Siain

SUBIC

Disaster Recovery
Sual

SAN FERNANDO

CEBU

Lial

Aparri

EPZA-Baguio

Dumaguete Mactan

Claveria Salumague

ILOILO
Pulupandan

LEGASPI

Globe MPLS IP/VPN

Jose Panganiban Tabaco

TACLOBAN

Catbalogan g Isabel

DAVAO
San Jose

ZAMBOANGA

Zia Gen. Santos Basilan Mati

LEGEND
PRIMARY LINK SECONDARY LINK

Jolo Parang

SURIGAO
Bislig Nasipit

CAGAYAN DE ORO

Iligan

Tawi-tawi

Ozamis

PROPOSED BOC NETWORK

PROPOSED BOC NETWORK METRO PORTS

MODERNIZATION INITIATIVES ICT INFRASTRUCTURE

BOC INFRASTRUCTURE PROJECT HAS JUST BEEN AWARDED! (to address the weaknesses and inadequacies identified in the current infrastructure situation)

CUSTOMS SYSTEM w/ PNSW LINK

Clearance Lodgment L d t
Consumption/ Warehousing/ Transshipment/ Informal Entries Selectivity Accredited Importers/ I t / Brokers Value-Added Service Providers System via Internet Other Government Agencies

Electronic Manifest Submission/ Write-off

Document/Cargo Inspection

NSW Database of Licenses/ Permits

Release
Acknowledges Electronic/ Mobile Payment

Payment

Triggers Release Message

Authorized Agent Banks A tB k

BOC MODERNIZATION INITIATIVES A NEW CUSTOMS SYSTEM

Change the name of the Customs System e2m to Integrated Philippine Customs System (iPCS) I t t d Phili i C t S t Add functionalities not included in the current version and complete the implementation of necessary modules (e.g., automating examiner d l ( t ti i assignment) Eliminate all manual work-arounds Adopt one integrated system rather than have a hybrid system Link the Customs System to the Philippine NSW Gear for a paperless Customs System Require all users to comply with the new Customs System

BOC MODERNIZATION INITIATIVES ONE-TIME/UNIFIED REGISTRATION

REGISTRATION SYSTEM (PNSW Module?)

OTHER GOVT AGENCIES

IMPORTERS, EXPORTERS Importers/ p AND OTHER Exporters STAKEHOLDERS IN NEED TO Seeking TRANSACT WITH Accreditation BOC/OGAs

BOC MODERNIZATION INITIATIVES PNSW PHASE 2

Government-wide rationalization, standardization & harmonization of all trade-related data Consolidation and standardization of application forms Configuring the PNSW Trader Portal providing complete import/export requirements for traders PNSW configuration and roll-out to all remaining regional offices, where needed offices Configuring PNSW for full dashboard reporting of all trade statistics, defining various access levels PNSW configuration to accept and process all fi ti t t d ll ASEAN trade related transactions Total integration with the ASEAN Single Window for full f ll ASEAN f functionality ti lit

ASW TECHNICAL ARCHITECTURE

Acting AMS Example

MALAYSIA External
Economic Operators
NSW Network

INDONESIA Regional g
ASW Network

Domain Level Architecture Level

National

National

External
Economic Operators

Info

ASW GW ASW GW

ASW GW

NSW Portal W

NS SW proce esses

Information o at o Exchange Example

NSW Network

NSW Po ortal

NSW processes

Info

Regional Services
ASW RS Portal
RegionalServiceDomain

Business Transaction Level

Business

Government

Govt-to-Govt Transactions

Government

Business

Business-to-Business Commercial Transactions

ASW WEB PORTAL (In Progress)

OGAs

AutoExchange Of Data
ASW GW

OGAs

Ports Customs

Specified Structured Data Exchanging AutoExchange Of Data

ASW GW

Ports Customs

NSW

NSW

Economic Operators

Economic Operators

ASW Regional Services Other Services, including ATR