Teresa Alvaro

Director – Central Service Technology for Innovation

Teresa Alvaro

Director – Central Service Technology for Innovation

e customs.ite customs.it

Facilitating International TradeRome, February 1st , 2008

Facilitating International TradeRome, February 1st , 2008

Customs in the European UnionCustoms in the European UnionCustoms in the European UnionCustoms in the European Union

27 Customs administrations operating within one 27 Customs administrations operating within one Community legislative frameworkCommunity legislative framework

27 Customs administrations operating within one 27 Customs administrations operating within one Community legislative frameworkCommunity legislative framework

Protect the securityProtect the securityand safety of citizensand safety of citizens

Protect the Protect the Community/national Community/national

budgetbudget

controls speed

Facilitate Facilitate legitimate tradelegitimate trade

Foster the competitivenessFoster the competitivenessof enterprisesof enterprises

The Mission of Customs in a Globalized EnvironmentThe Mission of Customs in a Globalized Environment

To strike the balance between effective controls and smooth trade flows.

To strike the balance between effective controls and smooth trade flows.

The BalanceThe BalanceThe BalanceThe Balance

• Simplify and speed up customs procedures by exploiting the opportunities offered by the latest technologies to reduce costs and times for citizens and enterprises.

• Simplify and speed up customs procedures by exploiting the opportunities offered by the latest technologies to reduce costs and times for citizens and enterprises.

• Ensure the regularity and smoothness of international trade through selective controls targeted at illicit trade, frauds and counterfeiting.

• Ensure the regularity and smoothness of international trade through selective controls targeted at illicit trade, frauds and counterfeiting.

controlscontrols speedspeed

How can we strike the balance?How can we strike the balance?How can we strike the balance?How can we strike the balance?

• The strategies to develop ICT services are defined in close co-operation with the competent EU bodies• Within e-Europe, the recently published ecustoms Decision identifies the enhanced used of ICT as the key tool to simplify customs procedures, optimize control capacities and reduce costs for traders and public administrations.

• The strategies to develop ICT services are defined in close co-operation with the competent EU bodies• Within e-Europe, the recently published ecustoms Decision identifies the enhanced used of ICT as the key tool to simplify customs procedures, optimize control capacities and reduce costs for traders and public administrations.

ecustomsecustoms

• By 2010 the electronic integration of all EU national customs systems shall be completed and customs operations shall no longer be on paper.

• By 2010 the electronic integration of all EU national customs systems shall be completed and customs operations shall no longer be on paper.

• The actions to be taken are set out in the MASP (MultiAnnual Strategic Plan) – the Community plan for the implementation of ecustoms.

• The actions to be taken are set out in the MASP (MultiAnnual Strategic Plan) – the Community plan for the implementation of ecustoms.

• The political agreement contained in the ecustoms Decision commits the European Commission and the Member States to the progressive implementation of a Europe-wide paperless Customs environment.

• The political agreement contained in the ecustoms Decision commits the European Commission and the Member States to the progressive implementation of a Europe-wide paperless Customs environment.

• The modernization of the Customs Code defines the legal basis supporting the new procedures.

• The modernization of the Customs Code defines the legal basis supporting the new procedures.

• Between 2003 and 2007 the E.U. has allocated over 100 mln Euros.• Between 2003 and 2007 the E.U. has allocated over 100 mln Euros.

• Between 2007 and 2013 over 300 mln Euros have futher been assigned. • Between 2007 and 2013 over 300 mln Euros have futher been assigned.

A.I.D.A.Automazione Integrata Dogane Accise

A.I.D.A.Automazione Integrata Dogane Accise

ee customs.itcustoms.itee customs.itcustoms.it

The Italian The Italian eecustoms solutioncustoms solutionThe Italian The Italian eecustoms solutioncustoms solution

A.I.D.A. has been implemented through:

A.I.D.A. has been implemented through:

• a parallel process of “computerization” and re-engineering of service processes and of the relevant activities, to customise them to the needs and simplification opportunities offered by ICT;

• single-window/one-stop-shop (integration of processes and unification of controls)

• on-line training/information; • telematic access extended to the services

provided and to the information processed.

• a parallel process of “computerization” and re-engineering of service processes and of the relevant activities, to customise them to the needs and simplification opportunities offered by ICT;

• single-window/one-stop-shop (integration of processes and unification of controls)

• on-line training/information; • telematic access extended to the services

provided and to the information processed.

HOWHOW

A.I.D.A. - An Interactive System A.I.D.A. - An Interactive System Connecting Traders and Public BodiesConnecting Traders and Public Bodies

A.I.D.A. - An Interactive System A.I.D.A. - An Interactive System Connecting Traders and Public BodiesConnecting Traders and Public Bodies

ExciseCustoms

CompaniesUsers

Traders

P.A.Government

Other bodies

European partners

EU Customs

EDIINFO

INFO

PROCESSING

REPORTS

Regional Customs Offices

Chemical Labs

INFO

It offers an on-line customs-clearance service in which controls It offers an on-line customs-clearance service in which controls are integrated; it sends out information drawn from customs are integrated; it sends out information drawn from customs

documents to national and Community bodies and documents to national and Community bodies and administrations.administrations.

It offers an on-line customs-clearance service in which controls It offers an on-line customs-clearance service in which controls are integrated; it sends out information drawn from customs are integrated; it sends out information drawn from customs

documents to national and Community bodies and documents to national and Community bodies and administrations.administrations.

AIDA: Main Functions and Some Figures AIDA: Main Functions and Some Figures

over 400 officesabout 10,000 customs staff

600.000 declarants (WITHIN/OUTSIDE the EU)

11.000.000 SAD – 21.000.000 INTRA

It processes in real time over 10 mln customs declarations a year (all customs procedures are computerized). Only 4% of declarations are lodged on paper.

Quality and quantity of goods, value, means of transport, country of provenance and destination are some of the data acquired and then used to monitor and analyse trade flows. These data are sent through the web to the other bodies involved, such as the National Institute for Statistics or the State General Accounting Department.

Clearance of export/transit procedurs at the traders’ premises are totally computerized.

Electronic documents with digital signature have replaced paper documents.

Ministry for economic

development

Ministry of public health

Ministry for agriculture and forest policy

Ministry for infrastructure and

transport …sanitary and veterinary……sanitary and veterinary…

…CITES……CITES……marks, quality and security of products……marks, quality and security of products…

…certifications……certifications…

... AGRIM, AGREX ...... AGRIM, AGREX ... …armament authorization……armament authorization…

Ministry for foreign affairs

The Complexity of OperationThe Complexity of OperationThe Complexity of OperationThe Complexity of Operation

Up to 73 documents per customs declaration, released by over 20

bodies

Up to 73 documents per customs declaration, released by over 20

bodies

Ministry forl international trade

Single WindowSingle Window

SW works as a catalyst for the integration of processes, the circulation of information among different administrations and the uniformity of action of Public Administrations towards citizens and enterprises.

SW works as a catalyst for the integration of processes, the circulation of information among different administrations and the uniformity of action of Public Administrations towards citizens and enterprises.

The single-window legal framework:2004 budget Law (Law 350/2003, art. 4, par. 57 e 58)

Regulation 648/2005 of the European Parliament and the Council

The single-window legal framework:2004 budget Law (Law 350/2003, art. 4, par. 57 e 58)

Regulation 648/2005 of the European Parliament and the Council

As stated in REC. 33 UN/CEFACT, the WCO defines SW as: “a form of facilitation that allows... to lodge information and documents at one single point of entry, to meet the regultory requirements prescribed for imports/exports/transit”

As stated in REC. 33 UN/CEFACT, the WCO defines SW as: “a form of facilitation that allows... to lodge information and documents at one single point of entry, to meet the regultory requirements prescribed for imports/exports/transit”

Customs clearance

Authorizations

…

Ordinary procedure

At the trader’s premises

SAD: coded information

Services

ID-codes of supporting documents

TARIC codes

Provenance of the goods

Destination of the goods

Single window

From Document Dematerialization to Process DigitalizationFrom Document Dematerialization to Process Digitalization

and customs clearance

SAD: coded information

ID-codes of supporting documents

TARIC codes

Provenance of the goods

Destination of the goods

On-line verification of the documentsaccompanying the

declaration

Min. ForeignAffairs

Min. Defence

CITES

Single window

From Document Dematerialization to Process DigitalizationFrom Document Dematerialization to Process Digitalization

and customs clearance

SAD: coded information

ID-codes of supporting documents

TARIC codes

Provenance of the goods

Destination of the goods

the list of “supporting” documents is

derived from the data in the declaration

Min. foreignaffairs

Min. Defence

CITES

Single window

From Document Dematerialization to Process digitalizationFrom Document Dematerialization to Process digitalization

and customs clearance

The single window approach is key to reduce the complexity of operation.

The single window approach is key to reduce the complexity of operation.

Certificates/documents are controlled on-line by acceding the data-bases of the releasing authorities.Certificates/documents are controlled on-line by acceding the data-bases of the releasing authorities.

The IM/EX interoperability project is a single-window model that can be extended to all other administrations: Customs, Min. Int.l Trade and traders can check the state of certificates on-line.

The IM/EX interoperability project is a single-window model that can be extended to all other administrations: Customs, Min. Int.l Trade and traders can check the state of certificates on-line.

The Control PolicyThe Control Policy

Continuous analysis of trade flowsContinuous analysis of trade flows

Computerizedrisk

management

Computerizedrisk

management

OtherOther

AFISAFIS VIESVIES

RIF RIF

internet

internet

Collection, evaluation and

connection of all available

information

Collection, evaluation and

connection of all available

information

Control level

Control level

CustomsCustoms

The skyrocketing of trade has led to the adjustment of control systems through the latest technologies in view of the “computerized management of risks”

The skyrocketing of trade has led to the adjustment of control systems through the latest technologies in view of the “computerized management of risks”

The Control Policy

Evaluation of the subjective risk of each operation to favour “reliable” traders

White listWhite list Black listBlack list

Computerized Risk Management Computerized Risk Management

• The computerized risk management addresses customs declarations to 4 control channels (green, yellow, orange, red) according to their matching precise risk profiles developed by combining some of the data in the declarations (origin, provenance, type of goods...)

• Subjective profiles (WHITE/BLACK LIST) decrease or increase the risk level. Through an AUDIT procedure, companies can obtain the certification of their reliability rate (AEO model) , which is linked to a customised control level.

• The computerized risk management addresses customs declarations to 4 control channels (green, yellow, orange, red) according to their matching precise risk profiles developed by combining some of the data in the declarations (origin, provenance, type of goods...)

• Subjective profiles (WHITE/BLACK LIST) decrease or increase the risk level. Through an AUDIT procedure, companies can obtain the certification of their reliability rate (AEO model) , which is linked to a customised control level.

GREENGREEN = Computerized control - = Computerized control - YELLOWYELLOW = Documentary control= Documentary control

ORANGEORANGE = Scanner control - = Scanner control - REDRED = Physical inspection = Physical inspection

AEO AEO

Computerized Risk Management

• Risk profiles are regularly evaluated/ amended according to the outcome of

controls (all control results are entered in the system)

• The system is fed back through the results achieved, in order to increase the effectiveness of controls.

PONTE CHIASSO

MILANO VENEZIA

TRIESTE

GENOVA

SAVONA

LA SPEZIA

BOLOGNARAVENNA

LIVORNO

ANCONA

CIVITAVECCHIA

SALERNO

NAPOLI PORTO

NAPOLI TERRA

BARI

BRINDISI

TARANTO

GIOIA TAURO

CATANIA

PALERMO

TRAPANI

CAGLIARI

FLAG TYPE OF SCANNER

Silhouette 300

Silhouette 300 + CAB 2000

SCANNER CONTROLSSCANNER CONTROLS 28 networked scanners located at the major national ports and interports to perform non-intrusive controls on containers and means of transport. This type of control can be self-sufficient or lead to the physical inspection of the goods, including sampling for chemical analyses.

SCANNER CONTROLSSCANNER CONTROLS 28 networked scanners located at the major national ports and interports to perform non-intrusive controls on containers and means of transport. This type of control can be self-sufficient or lead to the physical inspection of the goods, including sampling for chemical analyses.

The MATRIX Control CentreThe MATRIX Control CentreThe MATRIX Control CentreThe MATRIX Control Centre

RX Source

Incident ray

CONTAINERCONTENT SILHOUETTE

LOCAL SERVER (CENTRAL ADM.)

WEB CONNECTION CONCENTRATOR

LOCAL OFFICES

CENTRE NETWORK

SCANNERTRADERS

Scanning images are sent to the MATRIX control centre to feed the reference data-base

used to enhance and support the analysis of further images.

Scanning images are sent to the MATRIX control centre to feed the reference data-base

used to enhance and support the analysis of further images.

FFullyully AAutomutomatedatedLLogicaogicall SSysysTTeemm AAgainsgainstt FForgerorgeryy FFraudraud

FFullyully AAutomutomatedatedLLogicaogicall SSysysTTeemm AAgainsgainstt FForgerorgeryy FFraudraud

Company record

Product record

Request for intervention

RECOGNIZE genuine products complying with quality and security standards.IDENTIFY counterfeit products and fraud strategies.

RECOGNIZE genuine products complying with quality and security standards.IDENTIFY counterfeit products and fraud strategies.

ICT tools are applied also to fight counterfeiting. FALSTAFF is designed around the multi-media databank which is electronically fed through the requests for protection foreseen by Reg. CE 1383/2003.

ICT tools are applied also to fight counterfeiting. FALSTAFF is designed around the multi-media databank which is electronically fed through the requests for protection foreseen by Reg. CE 1383/2003.

Who feeds and uses FALSTAFFWho feeds and uses FALSTAFF

CustomsCustoms

Companies and business

associations

Companies and business

associations

ConsumersConsumers

To achieve responsive and targeted controls, integrated in the system for computerized risk management and in the system for the automatic targeting of import/export operations;

To achieve responsive and targeted controls, integrated in the system for computerized risk management and in the system for the automatic targeting of import/export operations;

To directly and continuously update information contained in FALSTAFF and to share the contrast strategy;To directly and continuously update information contained in FALSTAFF and to share the contrast strategy;

To disseminate information on the security and quality of goods and to continuously inform consumers of any risks, even at economic level, deriving from unknowingly fostering counterfeiting.

To provide effective tools to identify genuine products.

To disseminate information on the security and quality of goods and to continuously inform consumers of any risks, even at economic level, deriving from unknowingly fostering counterfeiting.

To provide effective tools to identify genuine products.

White/Black list

Customs operation

Requests for protection

Customs audit

PI

SC

DC

CC

PI

SC

DC

CC

Feedback from controls

AIDA IS SELF-FED

Risk profiles

Information gathered through FALSTAFF also integrates the data used for the computerized targeting of goods

Information gathered through FALSTAFF also integrates the data used for the computerized targeting of goods

Ministry for economic

development

Automated alert on dangerous products

AEOAEO

single windowsingle windowsingle windowsingle window

OrganizationOrganizationOrganizationOrganization

TechnologyTechnologyTechnologyTechnologyLegislationLegislationLegislationLegislation

• Adjustment to EU legislation• Review of legislation

Analysis and review of processes

• Workflow Systems• On-line services

Training andInformation

Identify new processes and modify organization and legislation supplying on-line training and information.

AIDA’s Development

Non-coordinated ApproachNon-coordinated Approach

OrganizationOrganizationOrganizationOrganization

TechnologyTechnologyTechnologyTechnologyLegislationLegislationLegislationLegislation

Synchronising national egovernment plans with a view to ecustoms: the single-window approach is a key element

Synchronising national egovernment plans with a view to ecustoms: the single-window approach is a key element

Min. Foreign Affairs

Min. Defence

Customs

Single window

Each reform project that needs to be “translated into computerized processes” must clearly state its “business processes” in detail.

We first define the new “computerized business processes”, then we define the relevant supporting provisions.

Each reform project that needs to be “translated into computerized processes” must clearly state its “business processes” in detail.

We first define the new “computerized business processes”, then we define the relevant supporting provisions.

OrganizationOrganizationOrganizationOrganization

TechnologyTechnologyTechnologyTechnologyLegislationLegislationLegislationLegislation

single windowsingle windowsingle windowsingle window

E-learning and KB

•AIDA integrates an e-learning platform and a knowdlege-base, both available to internal and external users

• Each new development is supported by KB and e-learning.

• Some figures: 2003: 130,000 hours supplied2004: 100,000 hours supplied2005: 200,000 hours supplied2006: 276,000 hours supplied2007: 188,000 hours supplied

The System is fed back by users

• The KB is integrated with the e-learning system, • The operating instructions and the relevant

provisions are available on-line and can be accessed at any time,

• The KB is constantly updated on the basis of the requests for assistance received by the call-centres (management of inefficiences)

E-learning

KB for Traders

On the web site of Agenzia delle Doganewww.agenziadogane.gov.it

On-line assistance

On-line Assistance and e-Learning for Traders On-line Assistance and e-Learning for Traders

How?

Search

WEB Services

Information on the use of these services is available on the Agency’s web site, under the “assistenza on line” [on-line assistance] section.

- Application for the authorization to use the cutoms ICT service and release/management of the digital signature certificate: in real time

- Authorization to the use of the ICT service at the offices specified by the applicant: within the day of grant of application

- Telematic customs clearance of export and transit operations at the trader’s premises: real-time telematic dialogue

WEB ServicesTelematic lodgment of documents:

- Declarations of final importation and exportation, temporatry importation and exportation, transit, entry for warehousing:average total reply time in 95% of cases: less than 60 seconds

- Cargo Manifests:average total reply time in 98% of cases: less than 60 seconds

- Declarations of release for free circulation of natural gas and power:average total reply time in 96% of cases: less than 60 seconds

- Requests for queries in the electronic account:average total reply time in 98% of cases: less than 30 seconds

- Summary lists of intra-Community sales and purchases (INTRA models): average total reply time in 96% of cases: less than 60 seconds

The average reply times of the telematic service are recorded daily and are available on the Agency’s web site www.agenziadogane.gov.it , under the “Servizio Telematico

Doganale - E.D.I” section

WEB Services

Display and consultation:

- Display of the route of the transit operation

- B.T.I. (Binding Tariff Information) and B.O.I. (Binding Origin Information)

- Consultation of the Customs Tariff. Information on tax and trade-policy issues at Community and national level

- Consultation of the S.E.E.D. database to verify excise codes

- Consultation of customs exchange rates

- Consultation of VAT ID-codes to verify their validity

AIDA Work Desktopfor Customs Staff

On-line assistance

AIDA Work DesktopAIDA Work Desktop

• While checking a customs declaration, a user can look up in the tariff, retrieve a Regulation …..

• Each user is supplied with a customised workstation specifying all the activities to be performed and the deadlines to be met.

• The computerized control of workflows identifies the operations to carry out and verifies their correct execution.

• All offices process the same operation in the same manner….

Developments after full implementation: total digitalization of customs obligations

On-line services

Single window

No more paper

Interoperability

Internet

Customs

Office n. 1

Office n. 2

Office n. 3

www.agenziadogane.gov.it

AEOAEO