Customs & Border Modernization, Trade Facilitation and Technology
Summary of SAP Today
SAP AG in 2005 revenues: €8.5 billion
More than 32,000 companies run SAP software
Providing more than 25 industry solutions
35,873 SAP employees (Dec, 2005)
12 million users in 120+ countries team with us to
Integrate their business processes
Extend their competitive capabilities
Get a better return on investment at a lower total cost of ownership
Unique partner ecosystem
More than 1,600 partners
Overall more than 180,000 SAP partner certificates
Summary of TATIS Today
TATIS SA was founded in Switzerland in 2000
developed a comprehensive customs management system application suite
The TATIS business strategy is to develop alliances with global technology and business partners
Solution of TATIS SA
TATIScms V1.01 is a modular customs management system that incorporates methodologies, business applications, tools and best practices:
Designed to address revenue and trade compliance, enforcement and trade facilitation
Risk-centric
Based on intervention by exception
WCO/ WTO aligned (ACV, Kyoto, UCR, SAD)
Customs’ Challenges & Modernization Drivers
System Landscape & Functions at Customs
Reforming Tax & Revenue Management and Customs & Border Management
Market Trends and Drivers
Key Drivers
Increased Trade Volume
Regulatory Changes e.g.:
WTO
Supply Chain Security
Authorized Economic Operators
EU MASP Convergence
Legacy Systems
Organizational/Operational Changes & Mergers
Customs & Revenue Management (UK, SARS)
Border Control (USA, SARS, UK)
Service Oriented Architecture (SOA)/Enterprise Services Architecture (ESA)
Customs Role in Trade Facilitation
Trade Facilitation: the simplification and harmonization of international trade procedures (the activities, formalities and practices involved in collecting, presenting, communicating and processing data required for the movement of goods in international trade )*.
A Snapshot on the Business of Public Services Organizations
Differentiated Approach Enables Government Transformation Co-Innovation on Open Platform
Enterprise Services Oriented Architecture (Enterprise SOA)
The Key Elements of Enterprise Services Architecture
Example: Electronic Filing Services -Process View
Example: Electronic Filing Services -System View
Example – Extended Electronic Filing Services
Solution Overview
TATIS Technical Specifications
TATIScms was developed on open source technology using J2EE compliant open architecture. It is database and platform independent and can work with any 3rd party or legacy system:
J2EE (Java)
Linux / Unix Platform
Oracle 9i (10i) RDBMS
Drools Rules Engine
Internationalization (Multi-language Support)
SAP Netweaver Migration & Certification
Integration to External Financial systems (SAP, Oracle, etc)
WTO/WCO & Best Practices Alignment
Aligned with WCO Revised Kyoto Convention
Harmonized System
WTO Agreement on Customs Valuation (ACV)
WCO Best Practices (e.g. SAD)
Provides Comprehensive Risk Management-based Enforcement Program
Based on concept of intervention by exception
High Level Solution View
Comprehensive Customs Application Stack
Customs Declaration Life Cycle
Risk Management: Strategic Objectives of RM Program
Developing a Customs Intelligence infrastructure or coordinating planning and steering operational activity;
Ability to gather, analyze, validate, store and retrieve intelligence;
Manage Customs interventions as exceptions to normal processing; and,
Focus limited inspection resources on where they are most needed.
Risk Management: Trade Segmentation
Risk Management Program Overview
Building the Foundation
Workload Analysis Drives Key Policy Decisions Related to Risk:
Identify Primary Focus Industries
Establish Trade Priority Issues
Focus on Largest Importers
Develop Account Management Strategy
Strengthen Partnerships with Compliant Traders and Service Providers
Initiate Legislative Program Reforms if Necessary
Solution Risk Engine
Risk Analysis
Targeting Screen (sensitivity adjustments)
Wear-Off effect
Valuation Control: Objectives
Prevent tax loss from under-valuation, false invoicing and Customs fraud in general
Collect price data of identical or similar goods needed for Customs valuation purposes (i.e., valuation under methods 2 or 3, audit support, validation of related party prices, etc.)
Identify operations or traders that may require audit or investigation
Prevent evasion of hard currency controls through over-valuation
Ensure accuracy of external trade statistics
Valuation Control: Design Features
Customs Management Luxemburg: Objectives
Customs Management Luxemburg: Solution Architecture
Customs Management Luxemburg: Schedule
Key Lessons Learned so far
Reforming Tax & Revenue Management and Customs & Border Management
Further Information