Paperless Trade in International Supply Chains: Enhancing Efficiency & Security

20 & 21 June 2005

Dagang Net Technologies Sdn Bhd20th Floor, HP TowersJalan Gelenggang, Bukit Damansara50490 Kuala Lumpur, Malaysiahttp://www.dagangnet.com

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From Paper to Paper-less to Paperless

– Malaysian Implementation Approach

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Presentation Outline

Implementation Status in MalaysiaBenefits of Paperless ImplementationCritical Success FactorsIssues, Challenges & ConstraintsRole of Dagang NetMalaysian Vision

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Implementation Status in Malaysia

Ref Type of Form Message Name Paperless Status

1. Customs Declaration CUSDECCUSRES

CUSDEC (Export)Fully paperless

2. Duty Payment PAYORD/PAYMULDEBADV/DEDMULCREADV/CREMUL

Fully paperless

3. Manifest CUSREPCUSCAR

Fully paperless

4. Free Zone Declarations ZBDECZBRES

Fully paperless

5. Dangerous Good Declarations

IFTDGN Fully paperless

6. Permit SANCRTSANACKSANDEC

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Benefits of Paperless Implementation

1. Saving in Bank Guarantee Charges Annual saving of RM18m in Port Klang

2. Improved Safety No need of security services during transfer of

duty collection Automatic routing of messages to relevant parties

3. Faster Clearance Reengineering of approval process (IFTDGN)

4. Lowering Operating Costs

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Critical Success Factors

1. Government’s support

2. Changes in policies & legislation

3. Phased Implementation ApproachMoving from paper-based to paper-less to paperless

4. Stakeholders’ Commitment

5. Support from Associations

6. Education & Awareness

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Issues, Challenges & Constraints

Resistance to ChangeBPR with Other Government Agencies involved in trade facilitation to streamline processesProliferation of broadband services nationwide

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Role of Dagang Net

Operate & Manage the National Clearing Centre

To provide front-end solutions to enable users to submit electronic documents and duty payment

Access/Password Management

Users Facilitation Education & Awareness Training

Help Desk

Problem Management

Message Design & Development

Multiple standards conversion

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Dagang Net’s Actions in Paperless Trade

Order/Prepare Transport Customs Payment

Buy Ship Pay

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Dagang Net’s Single Window Implementation

eLogistics

ePermit• Adopting ebXML standards

CBex • Adopting ebXML standards

• PIP3B18 - ASN • Adopting Rosettanet standards

eDeclare• Adopting UN/EDIFACT standards

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Malaysian GovernmentTo make Malaysia the preferred trading hub in the Asia Pacific region

To attract Foreign Direct Investment (FDI)

CustomsTo facilitates trade without compromising standards of Customs control & border security

Dagang NetTo integrate the trade value chain & adopt eCommerce as the standard mean of communication through a “One Stop” platform

Conclusion

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Terima Kasih

Thank You