Customs bureau goes paperless

Increased investment by the private sector in modern manufacturing, information and supply chain management systems, supported by information and communication technologies, has resulted in greater expectations for quicker, more cost-efficient and predictable border processing of goods.

Internationally, there is also a growing awareness that Customs serves as a key vehicle for economic growth, social development and national security. Hence, there is a need for governments and donor organisations to invest in sustainable capacity building activities in Customs, supported by a high level of professionalism and an in-depth research-based strategy.

In recognition of the need to address such issues, the Bureau of Customs (BOC) is moving towards internationally agreed and adopted standards of “paperless” procedures in dealing with import/export declarations and clearance. Through the implementation of the BOC-Value Added Service Provider (VASP) Gateway, importers can now easily process and submit documents via the internet making cargo release, quicker and less complicated.

In-line with the Automated System for Customs Data (ASYCUDA) database and the e-Customs System, the BOC-VASP Gateway was created to facilitate the processing of import and export declarations and clearance. The system monitors and controls the status of all types of goods (i.e. non-commercial, commercial goods, semi-finished and regulated goods) all throughout the release process.

Under Customs Memorandum Order (CMO) 19-2007, the legal enactment implementing the Gateway, the BOC is responsible for providing the necessary Gateway infrastructure and telecommunications facilities to enable electronic lodgment of import entries.

In addition to the above, the e-Customs Value Added Service Providers (e-CVASPs) which were created under Customs Administrative Order (CAO) 2-2007, are Information and Communication Technology (ICT) front-line services linked to the BOC. These were established by the government through partnership with the private sector to aid the trading community.

The VASPs are responsible for the installation of the necessary computer system on the internet at the importer’s offices that will enable it to encode and transmit import entries. Moreover, this is also used to receive the corresponding responses from the BOC e-Customs System via the BOC-VASP Gateway so that importers are updated on the status of their importation.

In a nutshell, the system involves the following procedures:

• The importer or broker will file its entry declaration by filling up the Single Administrative Document (SAD) declaration online through a VASP. The VASP will then convert the SAD declaration into an XML file and send to the BOC through the Gateway.

• The entry is then received by BOC’s e-Customs System which electronically calculates the amount of duties and taxes to be paid. It checks the validity of the manifest, bill of lading and mode of payment declared by the importer. The e-Customs system also determines whether the importer and broker are valid BOC clients.

• Upon submission of the SAD declaration to the BOC, the Selectivity System (BOC’s cargo risk assessment system) is automatically activated. This system tags the shipment as either Green (allowed to move to the next process), Yellow (subject to document check), Red (subject to document check and physical examination of goods) or Blue (tagged for post-clearance).

• A feedback message of whether the shipment has been selected or assessed is then relayed to the importer via the VASP and the system validates and officially records the entry in the ASYCUDA database.

• After the importer’s payment of duties and taxes has been matched to the payment details of the BOC, an automatic release instruction message will be transmitted to arrastre and the VASP which will eventually send a message to the importer informing it of the release of its shipments.

A computerised system like the BOC-VASP Gateway provides for a more organised, transparent entry and release system which expedites cargo clearance thereby cutting administrative costs and allowing for a more efficient supply chain.