Interconnectivity of Information Technology systems.

1. Interconnectivity of Information Technology systems.

2. Interconnectivity of what and between whom?Interconnectivity of Customs and Taxation IT systems betweenEuropean Commission & Candidate Member States.

3. Current Commission activities • Recent past: finalised in May 2001 the Interconnectivity report which assesses the situation in the Candidate Countries; • Ongoing: inform the CC about the requirements (Systems Documentation) end June; • Near future: planning of and decision on follow-up and support activities.

4. CCN/CSI: secured common communication network and common systems interface. TARIC:Electronic EU Tariff files EBTI: Binding Tariff information TQS:Tariff Quota System Tariff suspensions (no IT interface needed) TCO/TCT: electronic images of customs stamps . ECICS: Inventory of chemical substances IPR:Inward Processing Relief NCTS:Computerised Common Transit system. ORNET:Binding Origin Information SEED: info on traders of excise goods VIES:VAT Information Exchange System Which IT systems are included ?

5. Bulgaria Czech Republic Cyprus Estonia Hungary Latvia Which countries are affected? • Lithuania • Malta • Poland • Romania • Slovakia • Slovenia

6. Some findings on the status of Candidate Country IT Programmes : • Information systems development strategies are defined; • Estimated time needed of 2 to 4 years to develop the complete set of EU compatible IT-systems at a satisfactory level of quality; • Main focus is currently on : • Integrated Customs Information Systems • Management information systems

7. Needs Analysis - suggestions : • Considerable amount of work still to be done: use of a formal business change management plan recommended; • Full technical needs analysis recommended, which should takes into consideration the detailed in-country situation; • Formalised quality control system needed in order to guarantee quality results.

8. Recommended project management techniques: • Increase the IT project management capability (e.g. use trained & experienced IT project managers); • Give special attention to: • Project initiation & organisation • Estimating & Planning • Resource availability and tracking • Service management in view of computerised operations • Risk analysis & management

9. Issues considered to be important for successful Systems Development • Draft, discuss and approve comprehensive IT strategies; • Create an effective IT human Resource policy; • Study carefully the EU compatibility issues of national declaration processing systems; • Try to make maximum use of internet facilities; • If use is made of outsourcing, pay special attention to quality management & service level agreements for maintenance and support.

10. Particular issue:compatibility between EU systems and current or future declaration processing systems ! Of particular concern are : • Tariff related systems (such as TARIC, Quota, etc.) • NCTS • VAT and Excise data management

11. Recommendation: Preference should be given to systems which: • uselatest technology, • areEU compatibleand • haveproven track record..

12. What if your system is not EU-compatible ? It is recommended to study carefully the situation and assess the risks involved: • List the functions which are not EU-compatible and document the problem; • Estimate efforts needed (human and financial resources); • Assess impact of adaptations on other parts of the system (compatibility of technical platform, Operating systems and other software needed).

13. What if your system is not EU-compatible ? In order to diminish the risks involved, it is recommended to: • Work out a detailed planning for the upgrade; • Monitor carefully the progress by means of mandatory inspection points; • Link contractual payments to acceptance tests of the system; • Ensure ownership of the system and establish contracts for support & maintenance which guarantee a clear service level.

14. What will theTaxation and Customs Union Directorate General of the European Commission provide to the Customs Administrations of the Candidate Countries ?

15. First tasks ahead (1 of 3)? • Making available system documentation and information: • A first package with limited documentation has been distributed; • A complete documentation package is being assembled and will be made available in the next days; • A system for updates is under preparation (distribution via web-site).

16. First tasks ahead (2 of 3)?? • Providing management and planning assistance : • A generic implementation strategy paper (including a time plan) will be developed; • A project framework plan will be developed; • Standard ‘system by system’ plans will be developed and made available.

17. First tasks ahead (3 of 3)?? • Providing further assistance : • organisation of seminars on a system by system are being considered; • making available management and technical support are also being considered; • conformance tests will be organised at least for some systems before they enter into operation.

18. Key Recommendations for candidate countries administrations: • Increase the Enlargement priority level • Prepare a national action plan for each system; • Take action to secure sufficient human and financial new resources! • Install a system for close monitoring of progress by top management

19. Key Recommendations for candidate countries administrations: • Improve the information flow in your organisation: • Prepare, disseminate and make the information available within the organisation (e.g. documents, plans, etc. on intra-web) so that people are sufficiently informed. • Organise Seminars & Workshops to inform, explain, motivate, etc.

20. Key Recommendations for candidate countries administrations: • Improve the information flow with the European Commission: • Nominate a contact person for the interconnectivity issues • Consult regularly the Commission web-site and project web-sites (e.g. NCTS). • Keep records of relevant documents so they can be used in the administration;

21. A bold statement : It is primarily the responsibility of the Customs and Tax administrations of the Candidate Countries to ensure that a satisfactory level of IT operational capacity is achieved by the time of accession to the EU!

22. “Single contact point” Contact person for Customs and Taxation interconnectivity issues: Frank Janssens, Taxation and Customs Union DG,Rue de la Loi 200, B-1049 Brussels Tel: +32.2.29.54.839 Fax: +32.2.29.55.658 E-mail: ‘Frank.Janssens@cec.eu.int’.

23. Final conclusions: It is not too late but it is time ! Matters need to be addressed immediately to be ready in time ! Additional human and financialresources are probably required ! A strong commitment of the management will be required to achieve a success !