kenya's single window system rollout

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    Progress of the Kenya Electronic Single

    Window System Project

    Presentation to: Briefing on the System Implementation of the KNESWS

    Venue: Ole Sereni Hotel, Nairobi

    Date: 8th October 2013

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    Presentation Outline

    i. Background

    ii. KENTRADEiii. Project Objective

    iv. System Implementation

    v. Key Milestones

    vi. Benefits

    vii. Project progress

    viii. Road Map

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    Problem StatementTrade procedures in Kenya have been inefficient, lengthy and slow resulting in high cost of

    trade transactions/doing business. The main reasons are as follows:

    Many stakeholders are involved in the cargo clearance process.

    Stakeholders exchange many documents among themselves.

    Stakeholder ends up sending the same document to each other many times.

    Exchanges are in hard copy form and in most cases, processing of information is

    carried out manually.

    Results;

    Delays in cargo clearance,

    Perennial congestion at the port, Underutilization of port facilities

    Long truck queues at the border posts

    Corruption

    Loss of competitiveness for the country.

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    Inefficient processes addressed by the

    Kenya Electronic Single Window System

    Chamber of Commerce

    Warehouse

    Carriers

    KRA

    KTB KPA PPB

    Other relatedgovernment agencies

    Importer/Buyer

    Exporter/Seller

    Freight Forwarder/Shipping

    InsuranceCompany

    Inspection Agents

    KEBS Many government regulatory agencies

    Numerous lodgments

    Many Duplicated data elements

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    Cargo Dwell Time

    GovernmentEnterprises

    Present Single Window Objective

    8 days maximum - 3 days

    5 days

    2 days

    maximum - 1 day

    maximum - 1 hr.

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    Results of Inefficiencies

    Tons of trade documentsCongestion at Borders & Port

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    Problems of paper based tradeGovernment

    Complex regulation

    Lack of transparency Difficult monitoring Loss of Revenue(Corruption)

    DecreaseNational Competitiveness

    DecreaseNational Competitiveness

    High transaction cost Long lead time Incorrect processing

    Enterprises

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    Doing Business RankingDrop in Kenyas ranking Doing Business Index:

    Doing Business 2013Rank

    Doing Business 2012 Rank Change in Rank

    121 117 -4

    Trading Across BordersDB 2013 Rank DB 2012 Rank

    Change in Rank148 142 -6

    Source:http://www.doingbusiness.org/data/exploreeconomies/kenya/#

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    The Solution -Single Window System

    UN CEFACT RECOMMENDATION 33;

    A facility that allows parties involved in trade and transport to lodge standardized

    information and documents with a single entry point to fulfill all import, export, andtransit-related regulatory requirements.

    Trader or Agent submits all

    information required for

    clearance once to theSingle Window System

    Responses from various

    Authorities and Financial

    Institutions are returned to

    Trader or Agent

    Kenya Revenue

    Authority

    Kenya Ports

    Authority

    Other Control

    Agencies

    Banks

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    Single Window System models options

    Kenya Sugar

    Board

    PCPB

    Trader

    Option 1: Integrated

    Internet

    Licensing

    KNSWS

    SingleAutomatedSystem

    HCDA

    Chamber of

    CommerceIndividual data elements are submittedonce to a single entry point (integratedautomated system) to fulfill all import,

    export and transit-related regulatoryrequirements

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    Benefits- Savings to the EconomyBased on the volume of goods imported/exported:-

    First 3 years US$ 150m and US$ 250m per annum

    Thereafter - US$ 300m to US$ 450m per annum

    Arising from improved services e.g. Reduced trade transaction costs

    Reduced delays

    Reduced Inefficiencies

    Reduced corruption

    Reduced manual documents/paperwork

    Reduced cost of capital ( JIT Concept)

    Reduced demurrage

    Improved space utilization at ports/Airports-Increased capacityutilization

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    Benefits Cont

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    Project Objective Establish an electronic platform to integrate stakeholder

    systems in cargo clearance process

    Facilitate International trade in Kenya by reducing delays and

    lowering costs associated with clearance of goods at the

    Kenyan borders, while maintaining the requisite controls andcollection of levies, fees, duties and taxes, where applicable,

    on imports or exports.

    SWS is a Flagship project under the Economic Pillar of Vision

    2030

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    System Implementation

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    System Implementation

    Cabinet approved a G2G agreement for the Consultancy, Acquisition,

    and Implementation of the National Electronic Single Window System

    from Singapore Cooperation Enterprise (SCE) May 2012

    KENTRADE as the implementing agency entered into a contract with

    SCE for the Supply and Implementation of the System which includes a

    3 year maintenance period after operationalization - September 2012

    Kick off meeting between KENTRADE and the vendor for the

    Implementation of the Single Window System was held on the - October

    2012

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    Revised Project Implementation Plan

    Milestone Oct-

    12

    Nov-

    12

    Dec-

    12

    Jan-

    13

    Feb-

    13

    Mar-

    13

    Apr-

    13

    May-

    13

    Jun-

    13

    Jul-

    13

    Aug-

    13

    Sep-

    13

    Oct-

    13

    Nov-

    13

    Dec-

    13

    Jan -

    14

    1 Kick off Meeting

    2Business Process

    Re-engineering

    3 System Design

    4Software

    Development

    5 Training of Trainers

    6User Acceptance

    Tests

    7Training of

    Stakeholders

    8

    System Roll out

    Pre-clearance

    documents

    9 Declaration

    submission

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    SERVICES TO GO-LIVE 31ST OCTOBER 2013

    S/N Services/Modules

    1. IAR/AAR

    2 Manifest Submission (Sea & Air)

    3 OGA Permits

    i. KEBS

    ii. KEPHIS

    iii. HCDA

    iv. TBK

    v. PPB

    vi. VET

    vii. Port Health

    4 ePayment (Over the bank counter, prepayments)for IDF & Permits) -NPS

    5 Import Declaration Form (IDF)6 Delivery Order

    7 Cargo Release

    8 Security Bonds

    9 Integration with KPA KWATOS

    10 Integration with KRA SIMBA/ MMS

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    Copyright 2012 Private &

    ROLL OUT CONT SERVICES TO GO LIVE 31ST

    DEC 2013

    S/N Services/Modules

    1Declaration Submission ( Sea, Air & Land)

    2 Declaration Integration with SIMBA

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    ROLL OUT CONT.

    System Go-live Phase 2 - April 2014

    Integration with OGAs

    Dynamic Risk Management

    Road Manifest Module

    Declaration Module for Land

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    2011 CrimsonLogicPte Ltd

    Strategy for 31-Oct Go Live

    31-Oct-13 System will be soft launched (System turn on)

    KESWS Portal launched with live data on portal

    1stNov Rollout begins Live transactions from selected group

    Suggested group (AEOs)

    Start with key AEOs for ready modules (IAR, Manifest, IDF &

    Permits, Delivery Orders.etc..) Monitor system for next 30 days and increase coverage

    Phased rollout to all groups/stations

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    PHASE 1A GO-LIVE KEY TASKS & PLANS/N Key Milestones/Activities Start Date End Date Organization Remarks

    1 Production Infrastructure and

    application setup

    30-Aug-13 18 -Sep-13 KENTRADE

    2 Production data setup &

    preparation (Includes pre-

    requisites for go live for ex IAR,

    etc)

    23-Sept-13 18th Oct 13 KENTRADE

    3 Escalation matrix, help desk, call

    center etc.

    N/A 18th Oct 2013 KENTRADE, Work in progress.

    4 Training of key users who will pilot

    the system

    21st Oct 25th Oct 2013 KENTRADE, KRA/

    GOK Agencies,Shipping lines,

    CFSs, C & Fs

    Nairobi and

    Mombasa

    5 Registration of users/ issue of user

    names and passwords

    21st Oct 29th Oct 2013 KENTRADE

    6 Go live 31-Oct-13 31-Oct-13 All

    7 Pilot with key users 1st Nov 30th Nov 2013 KENTRADE, KRA/

    GOK Agencies,

    Shipping lines,

    CFSs, C & Fs

    8 End user training at various

    stations

    4th Nov 14th Dec 2013 KENTRADE, KRA/

    GOK Agencies,

    Shipping lines,CFSs, C & Fs

    Msa, Nrb,

    Malaba,

    Namanga, Busia,TavetaI, sebania

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    Key users for Piloting Shipping lines 9

    Manifest , Baplie, IAR/AAR, Delivery order Process E-payment process

    Clearing and Forwarding agents - 22

    Permit Application

    Security Bond process

    IDF application Cargo release process

    E- payment process

    Container Freight Stations - 6

    Manifest Process

    Delivery order process

    Cargo clearance process

    Insurance /Banks - 3

    Security bond process

    i. Government agencies 10 ( KENTRADE, KRA, KPA, KEBS, KEPHIS, HCDA, TBK, PPB, VET, Port

    Health)

    Manifest/ IAR/ BAPLIE process

    Permit approval process

    Bond approval process

    Cargo release process

    E payment process

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    End User Training

    S/No Location Applicants Trainees Venue End User Training

    1 Mombasa 1074 Bandari College 4th

    Nov 14th

    Dec

    2 Nairobi 640 KEBS, ICD & KENTRADE4th Nov - 14th Dec

    3 Isebania 22 Border point Hotel4th - 8th Nov

    4 Malaba 64 Jacki Hotel 8th 29th Nov

    5 Taveta 18 Green Park Hotel 4th to 8th Nov

    6 Busia 47 Blue York Hotel 18th - 29th Nov

    7 Namanga 18 Namanga River Hotel

    4th - 8th Nov

    8 Others 84 Work in progress TBP

    No specific

    Region38 Work in progress TBP

    Total 2005

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    Thank you

    Facebook: www.facebook.co/kentradeG2B

    KENTRADE TV: www.youtube/kentradeG2B

    Twitter: @kentrade_G2B

    Website: www.kentrade.go.ke