Single Window Solutions for International Trade

With more than 30 years in business, OCR Services, Inc. aims to build upon its reputation as the industry leading provider of high quality global import and export compliance software and single window solutions. OCR continuously improves its quality of services, keeping clients satisfied with our performance and effective solutions already implemented in many Fortune 500 companies. Because we are always focusing on achieving the best results and a positive outcome, it is why we got the reputation of becoming a reference in the provision of enterprise software solutions for Global Trade Compliance such as our developed Single Window International Trade Solution.

The notion of a Single Window is not unique to trade and it could be applied to other sectors as well. It started with the concept that the government should facilitate services and access to information by electronic means. The source of the information shared could be of its own or submitted by other government agencies, business companies or individual citizens. This concept idea became an initiative explored by many governments in numerous countries and it is also known as e-government or One-stop-Shop.

All companies involved in international trade have to prepare and submit different documents to government authorities to comply with imports, exports and transit related regulatory requirements. The information is submitted to different agencies with different requirements, procedures and forms. Generally, the more agencies involved, the greater the complexity of the trade process for the governments and the companies involved in international trade. An approach to solve this issue could be the establishment of a single window solution for international trade where the information is submitted only once. This solution could enhance the availability and handling of information, expedite and simplify information flows between trade and government resulting in a greater harmonization and sharing of information across corporate and public systems. This solution also improves efficiency and effectiveness while reducing the cost and time of the transactions. OCR defines a Single Window International Trade (SWIT) solution as a system that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfill all import, export and transit related regulatory requirements.

Benefits of SWIT Solution

The benefits of a SWIT solution are enormous when developed with proper planning, good coordination and full integration with all stakeholders and incumbents. In general, a single window solution:

• Reduces transactions cost
• Provides easier, better and more accurate access to intelligent information and databases
• Allows better coordination and integration between all parties involved in trade
• Contributes to fewer delays, more control and better monitoring and tracking of merchandise and documentation
• Builds efficiency collecting, processing, submitting or archiving information
• Improves security among transactions

For the government, benefits include correct revenue yields; improve trader compliance; and the enabling of risk management tools. For traders, the benefits relate to cost cutting through the reduction of delays, faster clearance and release and the predictable application and explanation of rules.

Key Elements for the establishment of a SWIT

• The existence of political will is one of the most fundamental key factors for the implementation of a single window solution. Without this element we cannot support the implementation and success of this system. There is not a defined number of actors involved and it varies in each country, but to have a fully integrated system we need the support and political willingness of each of the main actors involved in the public administration as well as in the private sector.
• The second element is the presence of a strong organization and leadership headed by a champion who will direct and coordinate with all parties involved and with subordinates maintaining the proper political, legal and economic support to conduct its obligations.
• At some point, a decision on which financial model to apply has to be made. The options could go from a system fully financed by the government, to a self-sustainable model. A PPP model should also be explored to share the workload and also the cost involved.
• Sometimes different players have different interest so becomes more complex to get them all involved in the development of a single window solution. In situations like this, it is best to specify the barriers up front and try to develop a coherent solution together with all parties involved for decision making and also during the implementation phase. It is here where the communication strategy plays a key role and it is necessary to establish a proper mechanism for keeping all stakeholders involved at all times about the project goals, objectives, outputs and activities in progress. All this in an effort to increase the trust among all players involved.
• Following the principles of e-government, governments must become citizen/constituent centric and service based. Consequently, the single window solution should be fully integrated (front and back office) and with electronic processing end to end.

Steps for Implementation of SWIT

The implementation of a single window solution involves many steps, several stakeholders and most important, the commitment from the government agencies and business companies involved in trade. In every case, the implementation will always be influenced by the political, social and cultural conditions and traditions.

• Build consensus for the development of initial concept for single window solution;
• Assess the scope to conduct a feasibility study with stakeholders and incumbents;
• Create a working management group comprised by the decision makers; and
• Create a technical group comprised by representatives from each of the agencies involved.

Models for a Single Window Solution

There are many approaches we could follow for implementation of a single window solution. The decision in terms of their best solution relates to the needs, requirements, capabilities and country regulations. Three main basic models to follow are: the single authority; the single automated system; and the automated information transaction system.

• The single authority model is a body that receives all information either electronically or on paper, disseminates all information to all relevant authorities and establishes controls to prevent any undue and enhance coordination and logistics.
• The single automated system interacts between the trader and the authority for collection and dissemination of information.
• The single information transaction system does what a single automated system, and in addition, transmits electronically the approval from government authorities to the trader’s computer, calculating the fees, taxes and duties and deducts it from the bank account.

OCR´s Approach to Single Window International Trade Solution

The development of solutions applying Information and Communication Technology (ICT) has enabled the governments and private enterprises to make great improvements in the delivery of services. Each new development brings new possibilities for enhancing the convenience and efficiency of trading more effectively. The concept of a SWIT solution is about submitting and receiving all regulatory information at a single point, preventing duplication as regards to information submission requirements, saving transactional costs on the preparation of information & documentation, the interaction with multiple regulatory agencies for cargo clearance and the time spent on meeting requirements.

OCR Single Window International Trade Solution is a real time solution designed for all the public administrations and private enterprises engaged in international trade. SWIT could be integrated with any ERP system and it could also work on the cloud to avoid an excessive investment costs upfront. Cloud computing is the development of applications customized by service providers for the use of their clients and carried out on line in applications that from the client’s perspective is on the internet somewhere. The SWIT solution is comprised of multiple independent and seamlessly integrated modules. Its size and project scope will be based on the client’s demand and requirements. The potential modules are the following:

• Watch List Screening (Denied Party, Restricted Party Screening): Screen your partners against various lists on an ad hoc basis. You may also submit a batch file of names to screen or screen all partners in the database.
• License Screening: Determine the export controls for goods and countries based on national and international regulations, including US, UK, EU, Australia and Singapore.
• Commodity Classification: Request for classifications and jurisdictions of your product catalog. This request can be reviewed by multiple focal points and a determination can be made for your commodities to include: National Export Controls, Global Export Controls, and Customs Classifications. Once finalized, the classifications can be imported into a Product Master File for reference throughout the SWIT System.
• DOC Licensing: This module allows you to electronically store export licenses, re-export licenses and commodity classification applications to the Dep. of Commerce.
• DOS Licensing: This module allows you to electronically submit unclassified export and import license applications to the Department of State via D-Trade.
• License Management: This module allows you to manage and store approved export Licenses and Agreements from the different departments. You may generate reports for management and activity of your Licenses and Agreements as well as required reports used for submission to the national government.
• Export Documentation / AES Direct: This module allows you to create product export related documents, such as: Commercial Invoices, Certificates of Origin, Shippers Export Declaration (SED), etc. You can also submit the SED electronically to the Census Bureau via AES.
• Import Classification: This module allows you to manage their imports and create management reports.
• Regulations: This module provides access to all the national regulations on export and import.
• Compliance Request: Request internal approval of an export or an import. This request can be reviewed by compliance managers and a determination can be made. Request data can also integrate seamlessly into License Applications within the Licensing modules if required.
• Visitor Management: Allows you to electronically request visitors to secure locations and keep tracking log. This request can be reviewed by multiple focal points & security, and a determination of their status can be made before a visit.
• DSEA Management: Electronically request internal approval of an export for technical data & services. Request can be reviewed by compliance managers and a determination can be made to authorize & log the export.
• Training Management: Allows administrators to post training classes and record who has attended and completed certain courses.
• Archive and Restore: Allows technical personnel to archive and restore data stored in the system to keep the most relevant information available.

Single Window Offerings

Customs Solution

It is generally recognized that customs agencies, have a pivotal role in the development of Single Window solutions. In order to implement this solution for customs, government agencies must be convinced about this solution and that their powers will not be diminished. Although customs agencies are the focus of any Single Window solution, it this does not necessarily mean that it will be owned or run by Customs. Nevertheless, they will still be the most important stakeholder. Customs is the largest and most important cross-border regulatory agency in terms of trade transactions, information  gathering and business activity. Strong leadership is necessary to make this solution a success.

Single Window Solution for customs deals with all stakeholders: public and private sector agencies, traders, transport entities, vendors, regulatory agencies, etc. So, generally a legal framework should be in place comprising interagency agreements between the agencies involved. Such agreements must recognize the fact that responsibility for risk management for a given function resides with the agency set up to manage that function and not within the Single Window itself. It involves a number of complex issues of resource sharing, costs, integrated risk assessment and data sharing. There are also other important issues including data security, confidentiality and identity management across a number of databases.

Single Window Solution for Customs also implies significant changes to the way in which agencies such as customs, interact with each other and with trade and transport parties. So, a Business Process Reengineering (BPR) could be required. BPR is a term which describes the means by which that change can be analyzed, documented and put in place. It is an activity that requires all parties’ participation and guidance, and it aims to ensure that the business operating environment is in the best possible condition to maximize the benefits of the legal, technical and policy implications of a Single Window Solution. The result of a BPR is a blueprint of how business processes will change for the Government and the industry. These changes will include the need for standard procedures and data harmonization.

A suitable and effective approach for the Business to Government (B2G) and the Government to Government (G2G) exchange of information would be applying OCR’s Single Window Solution which will allow all parties involved to speak the same language, standardizing procedures, forms and other documents, and also harmonizing the data.

The steps required for the establishment of a Single Window Solution for customs might include: (a) Process analysis and harmonization; (b) National data standardization; (c) Cross border data standardization and exchange; (d) Document/messaging simplification and standardization; and (e) Customization of data.

Activities required for implementation of this solution are classified as follows:

Pre-implementation

• Legal framework in place
• Feasibility study to assess the capacity, the project scope and the timeframe
• Political will. Interagency coordination and dissemination
• Financial instrument

Implementation

• Organizational structure
• Training and transferring of the know-how
• Basic infrastructure (HW, SW, Telecom)
• System implementation and adaptation

Post-implementation

• Fine-tuning
• Maintenance service
• Updating services
• Support services

The technical requirements in terms of architecture, platform, interface, data exchange, security, communications and other technical issues should be discussed with the parties involved and based on the existing infrastructure, capacity and specific client needs.