Facilitating Global Trade - an introduction into eCustoms

Barbara Flgge,
ITAIDE Team SAP Research St. Gallen

Introduction

One of the great challenges for European governments is solving the paradox of increasing security in relation to international trade, while at the same time reducing the administrative overhead carried by commercial as well as public administration organisations involved in the business of trade. Quoted in the proposal of ITAIDE, 2005 There is insufficient synchronisation between legislation, business process redesign and IT developments. The lack of a single European identification mechanism and harmonisation of concepts uniform and structured information exchange about and/or for traders between Member States hinders Member States to make progress in redefining and/or redesigning their business and IT processes. Quoted in the study Benchmarking Customs IT Architecture, 2005

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Envisioning Global Trade

Rapidly evolving border security requirements, changing needs for advance information and an increasing number of business partners involved in demanding flexible supply chains, the collection and transfer of information related to processes, data and messages is a critical success factor. Quoted by SAP experts involved in implementation projects related to Global Trade, 2006 Customs and Tax authorities will apply a wide variety of controls in the fast moving goods environment of today in a consistent manner across the Community and across its business and governmental partners worldwide. Quoted by the European Commission in Introduction to the Customs 2007 programme

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Introducing eCustoms The Key Elements of eCustoms evolve from cultural, organizational, process related, technical and regulatory characteristics:
Customs Procedures Tax Procedures Industry Specific Regulations Companies Specific Processes EU Regulations Non-EU Regulations People and Organizational Skills Cultural Differences ERP and local applications Standardization initiatives Enterprise Service Oriented Architectures Business Process Modelling Techniques Data, Messages and Forms relevant to Customs Language independent , semantics free

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Envisioning Global Trade Introducing ITAIDE

eCustoms solutions will cooperate with specialists, service providers and the ecosystem partners like Tax authorities applying dedicated tools and software applications to facilitate common public customs related processes. Quoted by the ITAIDE SAP project team 2006 to allow small, medium and large enterprises to seamlessly collaborate regardless their private IT infrastructure. Quoted by the ITAIDE SAP project team 2006

ITAIDE is an integrated project funded by the 6th Framework Programme of the EU addressing some of the key issues related to cross-border trade
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ITAIDE Project Setup

Academic Partners
Vrije Universiteit Amsterdam (NL) Copenhagen Business School (DK) University College Dublin (IE) University of Maribor (SL) University of Muenster (DE)

Technology/Standards Partners
SAP Research (CH) UNECE United Nations Economic Commission for Europe (CH) IBM Switzerland (CH) Result Maker (DK)

Governmental Partners
Dutch Customs & Tax Office (NL) Danish Customs & Tax Office (DK) Irish Customs & Tax Office (IRE) Finish State Treasury (FI)

Ecosystem Partners
Heineken (NL) United Paper Mills (FI) Nordea Bank (FI) Lappeenranta Innovation FI) Project Business (FI)
WP4 Network Organization Innovation WP5.1 WP5.2 WP5.3 WP5.4 Beer Living Lab Paper Living Lab Food Living Lab Drugs Living Lab

WP1 Methodology for Standardizable Business Information Exchange & Process Information WP6 WP7

WP2 Application Interoperability Validation & Testbed for WP1

WP3 Design Methodology For Control Procedures

Inter Organisation Innovation Excellence (Dissemination) Programme Management

SAP is contributing actively for the entire lifecycle from 01/2006 to 06/2010
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Research for eCustoms The Ecosystem Bearing in mind the example of the ecosystem of the Finnish Paper Industry,
The key parameters to define an Ecosystem are the following:
Business and Governmental Partners interact They provide different views on processes and information models They have their individual industry specific approach They still contribute to the core business of a Multi National Company (MNC) like UPM (United Paper Mill Finland) for example

focusing on a business-oriented interaction still having different views on successful business relationships still aiming for achievable results such as revenue, usability, profitability and efficiency All required Business and Governmental Partners such as suppliers, logistics service providers and shipping companies, customs and tax offices and further enterprises such as SMEs are participating in the project.

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Introducing eCustoms Four key investigation areas will be necessary to get closer to eCustoms:
How are the ecosystem(s) structured that are relevant to customs?

What is the appropriate standardization approach for data, messages, forms and processes?

What are common business and functional views related to (e)Customs?

Determine the Interoperability Factor!

Where does collaboration start and end in the customs business?

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Research for eCustoms SAPs Contribution

Customs Procedures Cultural Differences ERP and local applications Standardization initiatives Tax Procedures Enterprise Service Oriented Architectures Business Process Modelling Techniques Data, Messages and Forms relevant to Customs People and Organizational Skills Language independent , semantics free

Industry Specific Regulations

Companies Specific Processes

EU Regulations

Non-EU Regulations

Value Framework from various perspectives of the ecosystem

ESOA Approach for eCustoms

SAPs Taxation, customs, trade and SCM solutions

based on collaborative scenarios and concepts relevant to all involved participants

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How Do we Get There? We are focusing our research to the following areas:
Data Management Risk Management Declaration Handling Inspections Shipping lifecycle Verify products authenticity at any place and any time Post-arrival Processing Enterprise Services Collaboration and Partnerships

Customs Offices

Enterprises

Tax Offices

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How Do we Get There? Main objective of Tax and Customs administrations is to

identify, develop and apply working modern practices in the areas of
Pre- and post-clearance audit, Risk analysis, Customs and tax controls related to consumption taxes Sampling and simplified procedures Intelligent reporting

Provide taxpayer centric services for companies (and citizens) Provide regulation recommendations and setup for optimized auditing processes To enable collaboration between taxpayers and agency as well as among agencies

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How Do we Get There? Standards, Standards

ITAIDE and SAP are applying the UN/CEFACT standard, providing semantic methods for business and functional views:
What is the appropriate standardization approach for data, messages, forms and processes? How are the ecosystem(s) structured that are relevant to customs? What are common business and functional views related to (e)Customs?

Determine the Interoperability Factor!

Where does collaboration start and end in the customs business?

Semantic Methods for

Collaborative Business Processes Reference Business Data

Business Semantics (Business Oriented View)

Technical Implementation (Functional Service View)

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Web Services
(SOAP, WSDL, BPEL, )

ebXML
(ebMS, RegRep, CPPA)

EDI
(EDIFACT, TPA, AS2?)

SAP Research Collaborates With ... European and International projects and institutions such as:
ATHENA (EU Project) GENESIS (EU Project) SToP (EU Project) Institute Risk and Fraud Management Enterprise Interoperability Centre (EIC) SAP Initiatives and Solutions such as: Ecosystem Initiative Enterprise Services Community eCustoms Demonstrators like TradeIT and ProveIT based on SAPs GTS, PROVE, eTax and ESOA

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Stay tuned ... What comes next?

SAP Research is working on ESOA for eCustoms, integrating services that derive from SAP GTS, PROVE and eTax concepts SAP Research will establish an Enterprise Services Community inviting you to participate actively in the definition, conception and delivery of Enterprise Services ITAIDE Seminar for eCustoms goes on tour (starting March 8, 2007)
Free seminar conducted in all European capital cities will allow you and your ecosytem to discuss, learn and provide feedback and input The tour calendar and the seminar program will be published on www.itaide.org and www.eic-community.org

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How To Stay in Touch With Us?

your SAP contact partners: Erika Lindinger, SAP IBU Public Services
erika.lindinger@sap.com

Volkmar Zahn, SAP IBU

volkmar.zahn@sap.com

Nina Kissel, SAP Research

nina.kissel@sap.com

Barbara Flgge, ITAIDE Project Manager SAP

b.fluegge@sap.com

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THANK YOU FOR YOUR ATTENTION !

QUESTIONS SUGGESTIONS DISCUSSION

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