Paperless Customs Clearance Initiatives

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Hong Kong Customs
Paperless Customs Clearance Initiatives
Presented by Mr K W Leung Customs and Excise
Department
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Content

• Why we need Customs Clearance
• Why we have to go paperless
• Governments EDI Initiatives
• Electronic Trade Declaration
• Electronic Cargo Manifest
• Arrangement for Air Cargo Clearance
• IT-related key initiatives recommended in the
  Cargo Clearance Study
• The Way Forward

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Customs Clearance

• Customs Clearance refers to
• the accomplishment of the Customs formalities
  necessary to allow goods
• to enter for home use
• to be exported or
• to be placed under another Customs procedures.

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Purpose of Customs Clearance

• Two principal objectives-
• to prevent smuggling and to detect contraband
• to ensure compliance of licensing and other
  statutory requirements

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Drivers to go paperless

• meet the needs of the trade
• align with international Customs practices

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Conventional paper-based Customs Clearance could
hardly cope with the demand for speedy clearance
of cargo
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• Signatory to the WCO since 1985
• Vice-Chairman representing
• Asia Pacific Region

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Examples of WCO Recommendations on IT

• THE TRANSMISSION AND AUTHENTICATION OF CUSTOMS
  INFORMATION WHICH IS PROCESSED BY COMPUTER (16
  June 1981)
• THE USE OF THE UN/EDIFACT RULES FOR ELECTRONIC
  DATA INTERCHANGE(26 June 1990)
• THE USE OF THE WCO DATA MAPPING GUIDE FOR CUSTOMS
  UN/EDIFACT(21 June 1995)

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International Convention on the Simplification
and Harmonization of Customs Procedures(Kyoto
Convention)(revised in 2000)
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• 1995 Sub-Committee on Customs Procedures
• agreed to implement UN/EDIFACT
• Electronic Message Standards
• APEC Ministers Blueprint for
• Action on Electronic Commerce
• - go paperless by 2005/2010

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G7 Initiative in the Harmonization
and Standardization of Customs data requirements
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G7 Initiative

• Paperless data interchange for less-paper Customs
  clearance (common electronic messages using
  UN/EDIFACT)
• Harmonized and standardized data requirements for
  import and export
• Seamless data flow

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Governments EDI Initiatives

• Agreement with Tradelink
• to develop a Community Electronic Trading Service
  (CETS)
• to provide front end EDI services for
• Restrained Textile Export Licence
• Trade Declaration
• Production Notification/ Certificate of Origin
• Dutiable Commodities Permits
• Cargo Manifest (other than road)

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Importer
Manufacturer
ETAS
Bank
TID
Governments TEDIS
Tradelinks CETS
Carrier
CED
GACO
CSD
RTEL TDEC CO/PN EMAN EDI-DCP
ValuNet SilkNet eBiz
Exporter
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Electronic submission of trade declaration EDI
Trade Declaration System (TDEC)

• Mandatory electronic submission
• Bilingual Import and Export declaration
• Options for lodgments
• Tradelink
• Electronic Trading Access Service Centres

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Electronic submission of cargo manifest EDI
Manifest System (EMAN)

• Phase 1 build a gateway
• Value-added Networks
• Internet
• ETAS
• Phase 2 integrate and enhance back-end systems

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Electronic clearance of air cargo Air Cargo
Clearance System (ACCS)

• 7 x 24 air cargo clearance service
• Exchange cargo data and customs instructions in
  real time
• Support pre-arrival clearance
• Identify high-risk consignments

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Air Cargo Clearance System (ACCS)

• Main Features
• Matching with watch-listed data
• Giving warnings on high risk cargo
• Generating Cargo Examination Report
• Tracing and transaction report
• End user computing

Air Cargo Clearance System
Customs Control System (CCS)
Cargo Information/ Breakdown Information
Constraint Codes/ Remarks to Operators
Computer System of Cargo Operators
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Flow of Cargo Information (Within 3 Hours Before
Flight Arrival)
Cargo information or amendment data
Cargo Operators
Airline
Release Constraint Codes
Cargo information or amendment data

• assign temporary Constraint codes
• receive amendment information pending further
  action

Customs Excise Department
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Consultancy Study on Customs Cargo Clearance
Requirements and Services
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Cargo Clearance StudyIT-related key initiatives

• Electronic release of cargo
• Electronic submission of road cargo manifest
• Electronic screening of import manifests and
  export cargo data

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The Way Forward

• Facilitate paperless trading
• Use the best and most modern techniques
• Adopt best practices prevailing in the customs
  community

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Thank You