working with industry to deliver material benefits to industry and government from the implementation of the Integrated Cargo System as well as improving the consistency and efficiency of our operations.
Through working with industry in 2006-07, Customs has delivered material benefits to both industry and government from the implementation of the Integrated Cargo System. We also improved the consistency and efficiency of our cargo operations through building on single window developments and increasing the timely reporting of cargo.
INTEGRATED CARGO SYSTEM (ICS), WORKING WITH INDUSTRY
In October 2004 the exports component of an innovative cargo system, the ICS, was implemented. A year later the ICS was extended to include import declaration and import cargo reporting functionality. Following implementation difficulties with the import component, industry has provided much needed feedback on many aspects of the cargo processing system. This has lead to further development and enhancements.
Customs has now established an Industry Engagement and User Services Branch to provide industry with essential support services for the ICS. A user support framework has been developed and provides a self-service support basis on the Internet and other support services through phone, fax and email.
Customs and industry have worked closely to provide a focus
for the future of the ICS. Cargo industry representatives have
attended workshops and meetings to discuss issues of concern
to them. Major functional issues of interest to industry include
providing more information on cargo status to customs brokers,
stevedores, freight forwarders, air and shipping companies,
processing of refunds, and improving the movement of underbond
goods.
The Cargo Processing Executive Steering Committee was established to provide executive direction for Customs and industry on processing and system issues affecting movement of cargo.
The Industry Action Group examines operational issues relating to the ICS including priorities for system enhancements. It comprises company representatives from industry and Customs representatives.
These two bodies are examples of Customs and Industry working together to provide an efficient and consistent approach to improve the facilitation of trade.
International trade single window developments have been identified as a priority on the Australia-Pacific Economic Cooperation (APEC) trade facilitation agenda, and feature in Australia's APEC host year in 2007.
Those involved with international trade often have to submit the same or similar information to a number of government agencies when importing or exporting goods. A single window is a facility that allows people to submit import and export information to government once only through a single entry point, usually electronically. This facility would significantly reduce the amount of red tape for business. It improves the quality of information provided to government and enhances agencies ability to conduct risk assessment and thus improve supply chain security.
In order to expand on our single window developments in Australia, Australian Customs has been very active at the international level. We are the lead agency on the International Trade Single Window Project, which was established to facilitate a single window strategy across government.
Within APEC, Australia chaired a Single Window Working Group that recently completed the first stage of a single window initiative. The working group produced a Single Window Strategic Plan and Single Window Development Report. The plan and report were adopted by all APEC member customs administrations in June 2007.
The APEC Single Window Strategic Plan provides a vision for
the development of single window systems by APEC members to
achieve trade facilitation targets and enable data sharing.
The identified benefits of a single window include enhanced
supply chain security, efficiencies for government and industry,
and improved risk assessment and targeting. Customs is looking
forward to continuing the collaborative effort in the development
of single window initiatives within the APEC region.
Photo: Mr Carmody, Customs Chief Executive Officer, addressing
the APEC Sub-Committee on Customs Procedures forum.
Accurate and timely reporting of cargo is crucial to the smooth movement of goods into the marketplace. It is also vital to ensure that Customs is able to fulfil its border protection role through profiling and identification of suspect transactions and cargo. Where reporting is not accurate and timely, owners may face delays in the clearance of cargo. Late and inaccurate reporting can have a flow on effect to others in the cargo reporting chain, causing delays in the clearance of goods.
Accordingly, Customs and industry have been working together closely since the inception of the Integrated Cargo System to achieve improved cargo reporting compliance. As an example:
A major shipping company was highlighted in the 2006 Cargo Reporting Compliance Strategy as submitting an unacceptably high proportion of Cargo Reports that were lodged outside of the timeframes required under Customs legislation. At the time, they had submitted a monthly total of 10,895 bills, of which 34 per cent were submitted late.
Customs visited the company and worked closely with them providing education and support in identifying areas where improvements could be made. Changes were made to the Company's software and operating procedures. A number of other reporting issues were addressed during this time, such as vessel arrival information.
Customs is continuing to monitor this company's reporting performance and maintain the close working relationship developed over several months. The timeliness of the shipping company's reporting has improved markedly with a compliance rate in April 2007 of 98 per cent. This achievement is well above the national average.
The consistent timeliness and accuracy of the shipping company in its reporting has been infectious throughout the reporting community, and assisted nationally in an improved level of compliance.
INTEGRATED CARGO SYSTEM (ICS), BUSINESS CONTINUITY PLAN (BCP)
Customs ICS BCP was redeveloped and relaunched in December 2006 following the Australian National Audit Office Cargo Management Re-engineering Project review and the Booz Allen Hamilton review. Both reviews identified control weaknesses in business continuity and information technology disaster recovery planning.
The updated BCP was implemented after extensive industry engagement and testing to ensure suitable controls existed for transactions made when business disruption occurs to the ICS. The BCP covers all legitimate requirements for contingency and is continually enhanced to meet with industry and Customs requirements as they arise. The ICS BCP system is an essential backup plan which has been provided in case of electronic failures in a system widely used by industry across the country.
The implementation of the BCP for the ICS has been successful. The plan has been invoked on a number of occasions. Clients within the cargo industry expressed their appreciation of Customs assistance in these circumstances which minimised disruption to their business.
