Exchanging Outward Cargo Manifest Through Single Web-Based Application

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2013/SOM1/SCCP/007

Agenda Item: 11

Exchanging Outward Cargo Manifest Through Single Web-Based Application

Purpose: Consideration

Submitted by: Indonesia

EXCHANGING OUTWARD CARGO MANIFEST THROUGH

SINGLE WEB-BASED APPLICATION

INTRODUCTION

The stream of globalization and trade liberalization era, supported by the development of transportation and information technology, have raised the demand for elimination of trade barriers, both tariff and non-tariff, and moreover required border authorities to provide wider trade facilitation.

However the evolution of the forms of trans-national organized crime, such as trafficking of drugs, hard cash, CBRNE materials(chemicals, biological, radioactive, nuclear and explosives), fire arms and explosive materials, as well as weapons of mass destruction (WMD); and furthermore the increasing threat of global terrorismafter the 9/11 traumatic tragedy,bring back Customs’ important roles in protecting the community and conducting control upon the flow of goods across the borders, especially those jeopardizing national security, in terms of social, economic, or political situation.

In addition, there is also an increasing demand for Customs to control over the shipments of high risk cargos that are harmful to the environment, such as toxic wastes, ozone depleting substances, etc.

In response to the above challenges, Customs administrations in the world have developed Risk management technique, and used advanced information technology, as well as strengthened international Customs Cooperation in the scope of bilateral, multilateral and regional cooperation. This is expected to lead to an effective Customs control without creating unnecessary burden to legitimate trade.

At the same time,customs is often hampered by the lack of internal coordination, complexity of port processes and systems, lack of resources, and high-risk working conditions in many seaports and airports. However, each customs administration is mandated to ensure the fluent supply chains of legitimate consignment in terms of trade facilitation as the important element of economic development.

RECOMMENDATION

Although the forms and mode of trafficking are constantly changing, the global movement of contrabands and illicit goods tend to follow well-established paths. In most cases, illegal cargos are even shipped together with legal ones, using legal trade routes. Customs traditionally receivescargo manifest from shipping lines electronically using standardized message format, either in accordance with the UN-EDIFACT or WCO data element standard. Early submission of cargo manifest would enable Customs to conduct analysis and profiling to target high risk shipments.

In order to carry out a faster and more efficient assessment on cargo movement, Indonesia considered that it would be critical for Customs to have an exchangeable cargo manifest data among economies in Asia Pacific Region.To that end, Indonesia proposes to build an internet-based system of exchanging outward cargo manifest among APEC member economies.

The working Plan for the initiatives are as follows:

1. Discussing and identifying the benefit and requirements when establishing cargo manifest exchange system, during the SCCP 2013 meeting.
2. Conducting feasibility study of establishing cargo manifest exchange system among APEC member economies.
3. Conducting workshop/seminar for knowledge sharing/capacity building on the implementation of thecargo manifest exchange system.

A feasibility study shall be conducted at the first place to assess the viability of this initiative to be implemented among APEC member economies. There are a number of aspects to consider before its implementation, among others:

a. Technical and Operational Aspects

-Data element to exchange,

-Data standard and form,

-Regional gateway for exchanging data manifest,

-Regional services provider,

-Data Security system(using digital signature and SSL certificate through mutual recognition PKI),

-Communication channel(using HTTP/S over internet)

b. Legal Framework Aspect

-Mutual recognition mechanism(to describe exchanging model and to ensure every cargo manifest transmitted to the Portal come from recognized APEC economies),

-Dispute settlement mechanism,

-Service level agreement

FINAL NOTE

Advanced Information and communication technology utilization would be critical in supporting the implementation and development of Customs Risk Management. It would help customs to work more quickly, effectivelyand accurately, with limited human resources, and without hampering the smoothness of the flow of goods across the borders.

However building an information technology has never been an easy work to do, since it involves a huge cost, qualified human resources,and legal/security aspects. Much earlier, an information exchange system required a firm commitment among the participants involved.

Believing that this initiative would be significantly advantageous for the smoothness and secures supply-chain within APEC Region, we kindly invite all APEC Member economies to discuss the initiative of building a system of exchanging cargo manifest data, as well as to share experience or best practices from those who have the experience to build similar initiative.