• IN THIS ISSUE • PAGE 3 | Wind of change • PAGE 4 | CCS Guidance • PAGE 5 | Port Events • PAGE 6 | Logistics Performance Index • PAGE 7 | Feedback time • PAGE 8 | Forecast

MESSAGE TO THE COMMUNITYDear readers, we have the pleasure to introduce you to this first issue of The Cargo News for the year 2018. We begin this new edition with our warmest wishes and hope that you are appreciating our news and vital guidance.Indeed, 2018 is a challenging year. Everyone is expecting the best to happen and prospecting for better opportunities. MACCS is at the heart of the logistics with a strong sense of community and the desire to positively help you be more effective. Therefore, we intend to assist you while crossing the bridge to reach your ultimate business objectives in order for you to be responsive and adapt to the new changing business environment within which it operates.

«CCS definitely simplified business processes for our private operators»

«Mauritius, one of the most attractive and productive markets of Africa and Indian Ocean»

HAPPY 10th ANNIVERSARY MACCS

NEWSLET TER PUBLISHED BY MACCS LTD — ISSUE NO 6 | MARCH 2018

RAJU JADDOO, SECRETARY GENERAL OF THE MCCI

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Since the introduction of the Cargo Community System (CCS) in 2009, how has this system improved the operations of stakeholders?

The Cargo Community System (CCS) is one of the main trade facilitation initiatives undertaken in Mauritius to modernize and harmonise the import and export processes. With the CCS, operators can now track their consignments online. This gives more transparency and visibility on their transactions. Furthermore, our logistics service providers can exchange information with the transport operators, customs and other port and airport authorities. Overall, this implementation definitely simplified business processes for our private operators while achieving efficiency and improved productivity.

Which proportion of the economic operators have not yet applied the CCS in their operations and why? What are the solutions?

A limited number of operators currently registered as ‘approved economic operators’ at MRA has not taken pace yet. Perhaps, here MRA might look into reviewing the criteria set for such registration. In fact, we need to encourage more operators to comply with the laws and have good business practices so that they can be enrolled on the scheme of ‘approved economic operators’. For those already registered, there is still a need to sensitise them on the benefits of introducing the CCS in their operations. Awareness sessions must be conducted on the advantages derived from this system.

Technology plays a significant role in the development of maritime and port services. How did MACCS contribute to this?

Shipping lines operating in Mauritius are very well automated nowadays. Most of them are offshoots of multinationals sailing to several ports in the region as well as to other international ports. The e-bunkering system implemented by the MACCS is a strong example of this automation process. By facilitating the exchange of information between identified parties in a view of streamlining the bunker booking procedure with suppliers and authorities, e-bunkering has helped in eliminating paper transactions and reducing the processing time.

In 2008, Mauritius Chamber of Commerce and Industry (MCCI) invested in MACCS and holds a share of 22%. Has this initiative been worthwhile?

Trade facilitation has always been the upmost priority of the MCCI. Indeed, we have been the main private sector institution pioneering several trade facilitation projects in Mauritius. Besides MACCS, our investment in TradeNet in 1994 is another example of our endeavour to facilitate day-to-day operations of private entrepreneurs and the business community at large. In 2017, the MCCI had made several recommendations in the budget to improve the business and trading environment.

What challenges are waiting for the CCS in 2018?

The successful implementation of the CCS and the continued deployment of its other modules can only be beneficial to the business community. Recently, the MRA Customs, MACCS and the MCCI jointly collaborated to provide information on cargo statistics both by air and sea to our operators. Such fruitful collaboration should be renewed and strengthened. It will all be in the interest of the business community and all port and airport stakeholders to obtain valuable business intelligence.

FOCUS

Raju Jaddoo, Secretary General of the Mauritius Chamber of Commerce and Industry (MCCI)«CCS definitely simplified business processes for our private operators»

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Simplifying business, improving efficiency as well as productivity: the Cargo Community System has brought significant change for operators. Yet, more efforts need to be done in terms of awareness and online support, says Raju Jaddoo.

WIND OF CHANGE VOICING OUT

Gupta Gopaul, Chairman of the Professional Association of Freight Forwarders of Mauritius

The New Regulation 19 of Customs Regulations 1989

«We have expressed our disappointment»

House Manifest : 3 hours to go Hurdle or Facilitation ?

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«With more than 40 years of existence, the Professional Association of Freight Forwarders of Mauritius has brought its collaboration in the logistics sector. Throughout these years, the cost of doing business has considerably increased. Now, with the change in legislation, the work of the freight forwarders will become more cumbersome. As a matter of fact, we are left with only three hours to submit the House manifest following the Master manifest by the shipping line. Thus, we have expressed our disappointment for the introduction of this amendment. A constructive meeting was held and a formal letter was sent to the Director of Customs. The latter welcomed our grievance and due consideration is being given to this change that definitely impacts negatively on our business. In our view, a joint consultation between the MRA, MACCS and our association is vital. Synergy is the driver. Together we will be stronger».

After the 15th January 2018, the change to Regulation 19 with respect to earlier submission of consolidated manifest by a freight forwarder forms part of reforms brought by the government to facilitate trade and foster a better risk management of goods arriving in the country.

The previous legal provisions applied for such declaration, that is prior to moving a consolidated container from CHCL premises to a freight station. In some cases, delays were experienced when subsequent co-loaders submitted their information. This resulted in the blocking of containers at the terminal notwithstanding the risks associated with ‘’unknown’’ consignment content laying at CHCL. The new regulation 19 2(c) would specifically cater for the above shortcomings.

When queried about these changes, Daniel Ng, Chief Executive Officer of MACCS, expressed the view that information on a shipment is readily available. “It is a question of looking for it and transmitting it to the local correspondent in due course. May be the 3 hours’ time limit should be reviewed. In the meantime, we must consider that Advanced Cargo Information is the key to trade facilitation”, he stated.

According to Daniel Ng, we need to compare what other Customs administrations based in USA and Europe have implemented. For example, he mentions the obligations for the mauritian operators to submit Advanced Cargo Information to European Customs prior to embarkation of containers in Europe, that is for the EU ICS.

• The initial and the new amended legal contexts since 15th January 2018

Since the 15th January 2018, when a consolidated container is imported, the freight forwarder must submit the full and complete House Manifest within 3 hours from the submission of the Inward Master Manifest. However, this measure was not well welcomed by the freight forwarder community. The latter mentioned its disappointment to the Professional Association of Freight Forwarders of Mauritius.

Initial Legal context of Regulation 19 Before 15th January 2018

19. Freight forwarding agent or broker.

(1) No freight forwarding agent shall remove a container from its landing place without the authorisation of the Comptroller through the TradeNet.

(2) (a) Unless otherwise directed by the Comptroller, a freight forwarding agent who intends to remove a container from its landing place to his premises shall submit an application through the TradeNet for authorisation of the Comptroller under paragraph (i). (b) An application for authorisation under subparagraph (a) shall be submitted in such form and in such manner as may be approved by the Comptroller.

Amended Legal context of Regulation 19 After 15th January 2018

19. Freight forwarding agent or broker.

(1) No freight forwarding agent shall remove a container from its landing place without the authorisation of the Comptroller through the TradeNet.

(2) (a) Unless otherwise directed by the Comptroller,

a freight forwarding agent who intends to remove a container from its landing place to his premises shall submit an application through the TradeNet for authorisation of the Comptroller under paragraph(1). (b) An application for authorisation under subparagraph (a) shall be submitted in such form and in such manner as may be approved by the Comptroller. (c) A freight forwarding agents to whom the container is consigned shall submit the full and complete house manifest – (i) prior to the application referred to in subparagraph (a); and (ii) within 3 hours from the submission of inward manifest under section 49(1) (a), (b) or (1A) of the Act, as the case may be.

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CCS GUIDANCE

TERMINOLOGIES

A House Manifest on the waiting line

The unique identifiers… in CCS !

The CCS House Manifest in the waiting state functionality has been deployed on the 28 May 2014. This information is registered on the system by a freight forwarder prior to the

submission of the Inward Master Manifest by the airline/ground handling agent (GHA). Once the Inward Master Manifest is approved electronically by Customs, the House Manifest in waiting state is automatically approved on the system. This function helps the freight forwarder to anticipate his clearing process. Furthermore, the delivery of the air consignments is processed more rapidly.

THE ADVANTAGES ARE AS FOLLOWS:

1. Enable the freight forwarder to submit the House Manifest to customs, well in advance before the creation of the Master Manifest by airline (Before flight departure at origin).

2. No need for the freight forwarder to wait for the Master Manifest to be approved by Customs System (CMS II).

3. An automatic linkage of the Report Number is done on the House Manifest with the approval of the Master Manifest at CMS.

4. Early submission of House Manifest prevents bottleneck at Bill of Entry and fosters quicker clearance of goods, that is hours after landing of aircraft or disembarkation of goods.

5. With Information such as shipper, consignee, freight charges and Destination received earlier, MRA Customs can ensure a better risk management.

Consolidated cargo (grouped shipment)It is where a freight forwarder at the port of origin combines several individual consignments to make up a full container load. This arrangement allows the goods to be shipped as a containerized-cargo (FCL/LCL). This offers greater security at lower shipping rates. Following the submission of the Inward Master Manifest by the shipping agent and approval by MRA Customs at the port of destination, the freight forwarder is under the obligation to submit a House Manifest (LPD) via CCS by customs.

«Liste Provisionnelle de Dépotage» (LPD)

In CCS, “Liste Provisionnelle de Dépotage’’(LPD) is used for a House Manifest. This unique identifier is generated in the system when the House Manifest data is transmitted either by electronic data interface (EDI) message or by manual data capture on the

system by the freight forwarder agent. Following completion of all customs procedures, the freight forwarder can secure delivery of the container at the terminal. The latter is then transferred to a container freight station where the consolidated shipment is separated (deconsolidated) back into the original individual consignments for delivery to their respective consignees.

«Sous manifeste» (SMA)

Under the unique identifier “Sous Manifeste” (SMA), the House Manifest is used for consignment having Full Container Load (FCL/FCL) and only one consignee. Generally, the mode of providing information on CCS is the same as the LPD. However, in the case of the SMA, the container is not transferred to a freight station for unstuffing. Hence, the freight forwarder agent or a broker proceeds with the Bill of Entry (BOE). Once approved by customs, the container will be collected from the terminal and delivered to the consignee.

A corporate plan launched by MRAOn the 26th January 2018, the International Customs Day was celebrated. On this occasion, an official ceremony was held at the Mauritius Revenue Authority (MRA) Customs House at Mer Rouge. In addition, this institution proceeded with the launching of MRA Corporate Plan 2018-2020. This document provides details on intended actions for the next three years such as enhancement of training, renovation of information systems and coping with e-commerce markets etc. In his speech, Sudhamo Lal, Director General of the MRA (photo), highlighted that the MRA Corporate Plan englobes 107 projects and initiatives which are allocated to MRA’s 13 directorates for a period of 3 years.

The women’s contribution in the logistics sector highlighted Strengthening empowerment and engagement: a fulfilled mission for the Women in Logistics and Transport (WiLAT). On the 26 January 2018, the organization mobilized several international experts and local participants for the closing session of the Mauritius Maritime Week 2018. The event was held at the Ravenala Attitude Hotel in Balaclava in the presence of Maggie Herary, Consultant in Logistics and Transport, Dato Sharifah Halimah Syed Ahmad, WiLAT Asia Forum Convenor and Nozipho Mdawe, Secretary General at the Port Management Association of Eastern and Southern Africa. Discussions on the maritime sector in Malaysia, transport and logistics as a tool for economic prosperity and mentoring as a yardstick of personal development and women empowerment prevailed. Additionally, representatives of Loreto College of Port-Louis attended the workshop. This provided an excellent opportunity to highlight best practices and personal experiences on mentoring programmes.

WORLD CUSTOMS DAY 2018

WILAT

The workshop mobilized international experts, local participants and students.

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PORT EVENTS

Air CCS Export flies high on debate

With the submission of the AirCCS Export specifications by MRA customs in September 2017, the computerization of its export module has

been elaborated by research and development teams. The advantages? Better risk management for customs coupled with a paperless system for the whole Air Logistics community, higher visibility and transparency between stakeholders. In collaboration with customs, these improvements were discussed during one day workshop at the Holiday Inn Hotel in Plaine Magnien. It was on the 20th February 2018. “The aim was to promote awareness on this Air CCS Export Module. A detailed

presentation on the process flow was made by the MRA followed by a demonstration by MACCS”, states Khaleelah Peerbocus, Research and Development Manager at MACCS. During the event, the organization also introduced the e-Bordereau (Pre GateIN), a QR-Code with real-time validation.

UNDERSTANDING

Logistics Performance Index : the quality of trade and transport infrastructure

The Verified Gross Mass (VGM) Since the implementation of Safety of Life at Sea (SOLAS) for the provision of the Verified Gross Mass (VGM), the Cargo Handling Corporation Ltd (CHCL) has introduced a new infrastructure to operate a container weighbridge in the port area. However, this facility is not a stand-alone measure. Thus, after the weighting of a container, its mass is instantly and electronically received to update the CCS for transmission to the CHCL system. The electronic message – the Verification of MASS (VERMAS) - provides information on the Verified Gross Mass (VGM) of a packed container, the time, place and method of obtaining the VGM etc. Such data provision effectively eliminates the human intervention (typing errors) to the terminal.

COPARN Messages between shipping Lines, MACCS and CHCL Ltd A COPARN is a UN/EDIFACT message used by the shipping company or his ship’s agent to notify the Terminal operators that containers will be delivered at a specific time. For instance, in Mauritius, a shipping company can generate a COPARN message when an export booking is confirmed in their internal system. This message is then transmitted by the File Transfer Protocol (FTP) to the CCS. Once integrated in CCS, it is electronically relayed to the Terminal Operating System (N4) of the Cargo Handling Corporation Ltd (CHCL) for integration. The latter is used for verification upon gate-in of export containers at the terminal and to MRA Customs for validation purposes of export Bill of entry. This is then processed by the concerned freight forwarder, broker or exporter.

Implementation of CCS Indeed, many efforts have been made by authorities and private operators regarding the adoption of modern tools, techniques and new technologies. System wise, with the deployment of the CCS in 2008, much improvement has been achieved for the dematerialisation and automation of certain processes, streamlining and fluidity of the lorries’ flow at the CHCL terminal. This logistics system has contributed to the full visibility on the clearance and increased security for the delivery of import containers.

An extended berth at the Mauritius Container Terminal In order to cater for the increasing container traffic, the CHCL proceeded to the extension of the Mauritius Container Terminal berth.

The main benefits are: • Ability to accommodate and handle two mega ships up to 12,000 Teus capacity simultaneously

• Faster ship turnaround time due to larger yard space and additional ship to shore cranes

• Additional revenue from increased transhipment traffic linked to improved capacity of the terminal

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Following the presentation of the efficiency of customs and border clearance in our fifth edition, we now proceed with the quality of trade and transport infrastructure. This dimension covers a wide range of services, systems and infrastructures. However, a lack of support among each element negatively impacts on the achievement of business success.

FEEDBACK TIME

Happy 10th anniversary MACCS !

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Founded in 2008, MACCS celebrates its 10th anniversary in June 2018. What is the vision of stakeholders and employees embarking in this adventure since a decade? Let us hear from them.

Pascal Ollivier

Anshila Cootthen Vimi Seetamah Poliah

Khadeeja Oozeerally-LuckhunDIRECTOR OF CORPORATE DEVELOPMENT AT SOGET

“As a major maritime and air crossroad coupled with an incomparable destination for experiencing Indian Ocean beauty, Mauritius Island has no choice but to impose itself as a model for connectivity and fluidity. Whether for the mauritian population or the foreign customers involved in luxury tourism and global trade, MACCS has acted over the past decade as a tremendous Master of Ceremony for gathering all

the stakeholders and shareholders into the same quest of logistics’ excellence. Besides implementing an Information Technology solution, the company has been a real pioneer through a forehead thinking and its abilities to turn a project into a logistics community success. Nowadays, Mauritius is one of the most attractive and productive markets of Africa and Indian Ocean”.

OPERATIONS OFFICER AT MACCS

“Working at MACCS is a privilege. I am surrounded by a diverse team of intelligent and friendly people. I joined the company since 10 years and learned so many things. I still remember my first day at MACCS where my valuable colleagues taught me about the industry and shared their knowledge. I will always be thankful to those who believed in me and helped me to grow, not only within the company but also as a person. In addition, MACCS has given me the opportunity to be in contact with people from

different countries. Thanks to this exceptional company, I have developed my skills. I believe MACCS is an excellent organization with which to build a career”.

HUMAN RESOURCES OFFICER AT MACCS

“MACCS has been my second family since joining the company in 2008. When starting, I just stepped out of school. This company offered me a unique opportunity to integrate the new working world and acquire professional experience within a stimulating industry. The last decade has been a learning curve especially in the logistics industry, customer relations, and effective communication and most importantly for future challenges. Indeed, MACCS has grown very quickly. We maintain this success as we are a nimble organisation ready

to face any challenge. Working to reach the next level as a team and individuals, we also keep ourselves open to new ideas and improvement. As such, I am always encouraged to broaden my knowledge and aptitudes. I am proud to be a part of MACCS. May we keep on growing and delivering great results!”

MANAGING DIRECTOR AT MAERSK

“MACCS has played a key role in the history of business facilitation in Mauritius. Before the introduction of CCS, we were performing a series of manual tasks. Indeed, vessel manifest was submitted directly via the customs system. Along with electronic submission, a hard copy manifest was required. The ease of doing business through MACCS contributed to restructure, achieve efficiency and better risk management in our local organization. Some

notable advances are e-manifest submission, online manifest amendment and e-delivery order. Efficiency has even crossed borders with the help of MACCS. For instance, at Maersk Line and Safmarine, CCS is also present in India where our manifest team can access CCS remotely to submit vessel manifest. This provides oxygen to our onshore team in Mauritius to serve customer’s exceptional cases. Special thanks for the continuous support of MACCS”.

For any query regarding system assistance, training and refresher courses, please send your request via https://services.maccs.mu/onlineservicedesk/

Addres: First Floor, Trade & Marketing Centre, Mer Rouge, Port Louis, 11609, MauritiusPhone: (230) 2062973Web: www.maccs.mu/

If you wish to advert in our Cargo Community News, kindly contact us:Phone: (230) 206 2971/80Mail : sambiah_ashuina@

maccs.mu

MACCS brand new! Good-bye Mer Rouge! After ten years of location in this region, MACCS and its whole team are moving. Our brand-new offices will be located in the northern region where we will be offering our whole range of services and above. Our new address will be soon communicated to our fellow readers and operators.

Thanks to the online tickets created by our customers, our operation team can now acess how conversant our clients are with our systems and services. We have observed that some users are very user friendly while others are still experiencing difficulties with the CCS and other value-added services provided by MACCS. To assist you, several trainings and refresher courses are in the pipeline.

They are as follows:

• For shipping agents : 20 March 2018 : ATP, 21 March 2018: Master Manifest, 22 March 2018: Delivery Order and tracing targeting shipping agents

• For freight forwarders : 26 and 27 March 2018 : House Manifest, 28 to 30 March 2018 : Delivery of Containers (Delivery Order/ICID/DTI) and Tracing

• For brokers and importers: 3 to 5 April 2018: Delivery of Containers (Delivery Order/ICID/DTI) and Tracing, 11 to 13 April : Export module

• For shipping lines : 9 to 10 April 2018 : Export module and 17 April 2018: Transhipment

For any information on enrolment, contact Priscilla Mootoocurpen on 206-2991 or send us a mail on customercare@maccs.mu.

COMING SOON...

FORECAST

Training in the pipeline

Daniel NgChief Executive Officer of MACCS

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It gives me great pleasure to write on the 10th Year anniversary of MACCS, event coinciding with the 50th Independence of Mauritius. In fact, MACCS is a public-private sector partnership operating the Cargo Community System (CCS) under the Customs Cargo Community System Regulation 2008. At MACCS, we strive to be an organisation that is a top of Mind, value Added services provider as well as being Customer focused, and a trusted Community advisor, providing Superior customer service to all its stakeholders.

Being a trade facilitation tool by excellence, the CCS has allowed for elimination of certain paper-based transactions, automation of customs related processes and enabling a 24/7 processing. Being conscious of undue delays and unnecessary costs resulting from self-inflicted inhouse bureaucracies and inefficiencies of importers, MACCS has been engaging in roadshows fostering on the various tools of the CCS at the frontline.

Advanced Cargo Information provided via this system also allows for better risk management techniques and faster clearance of goods at imports. In addition, we have very well progressed in the development and deployment of export modules for both air and ocean modes of transport. In the latest Doing Business Report 2018, Mauritius is ranked 70th whilst using the same technology as France which is at the first posiition. We need to analyse the gap and try to find out where we can further improve. The CCS cannot exist in a vacuum as by its very nature, it acts and reacts to the various inputs of the community.

I am personally proud and honoured to have been accompanied by fellow colleagues in leading MACCS in its mission of further improving the competitiveness of the cargo community and of Mauritius. My thanks also go to the Board of Directors of MACCS for its continued belief and support in the usefulness of such a system.

Long Live MACCS! Long Live Mauritius!