Teresa Alvaro Director – Central Service Technology for Innovation

1. Facilitating International Trade Rome, February 1st , 2008 ecustoms.it Teresa Alvaro Director – Central Service Technology for Innovation

2. Customs in the European Union 27 Customs administrations operating within one Community legislative framework

3. The Mission of Customs in a Globalized Environment Facilitate legitimate trade Protect the security and safety of citizens Protect the Community/national budget Foster the competitiveness of enterprises controls speed To strike the balance between effective controls and smooth trade flows.

4. customs e controls The Balance speed • 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.

5. customs e 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.

6. 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. • 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 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 2007 and 2013 over 300 mln Euros have futher been assigned.

7. A.I.D.A.Automazione Integrata Dogane Accise ecustoms.it The Italian ecustoms solution

8. A.I.D.A. has been implemented through: • a parallel process of “computerization” andre-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. HOW

9. Customs Excise Chemical Labs Regional Customs Offices P.A. Government PROCESSING Other bodies REPORTS EDI INFO INFO INFO European partners Traders EU Customs Companies Users A.I.D.A. - An Interactive System Connecting Traders and Public Bodies It offers an on-line customs-clearance service in which controls are integrated; it sends out information drawn from customs documents to national and Community bodies and administrations.

10. 600.000 declarants (WITHIN/OUTSIDE the EU) 11.000.000 SAD – 21.000.000 INTRA over 400 offices about 10,000 customs staff AIDA: Main Functions and Some Figures 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.

11. Ministry for foreign affairs Ministry forl international trade Ministry for economic development Ministry for agriculture and forest policy Ministry for infrastructure and transport Ministry of public health The Complexity of Operation …armament authorization… ... AGRIM, AGREX ... …marks, quality and security of products… …CITES… Up to 73 documents per customs declaration, released by over20 bodies …certifications… …sanitary and veterinary…

12. Single Window • 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” • 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

13. At the trader’s premises Customs clearance Ordinary procedure Authorizations … and customs clearance From Document Dematerialization to Process Digitalization Single window SAD: coded information TARIC codes Provenance of the goods Destination of the goods ID-codes of supporting documents Services

14. and customs clearance From Document Dematerialization to Process Digitalization Single window Min. Defence Min. Foreign Affairs SAD: coded information CITES TARIC codes Provenance of the goods Destination of the goods ID-codes of supporting documents On-line verification of the documents accompanying the declaration

15. and customs clearance From Document Dematerialization to Process digitalization Single window Min. Defence Min. foreign affairs SAD: coded information CITES TARIC codes Provenance of the goods Destination of the goods ID-codes of supporting documents the list of “supporting” documents is derived from the data in the declaration 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. 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.

16. VIES AFIS RIF Other The Control Policy The skyrocketing of trade has led to the adjustment of control systems through the latest technologies in view of the “computerized management of risks” internet Collection, evaluation and connection of all available information Control level Computerized risk management Continuous analysis of trade flows Customs

17. The Control Policy Evaluation of the subjective risk of each operation to favour “reliable” traders White list Black list

18. 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. GREEN= Computerized control - YELLOW= Documentary control ORANGE = Scanner control - RED = Physical inspection AEO

19. 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.

20. SCANNER 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. PONTE CHIASSO TRIESTE MILANO VENEZIA Silhouette 300 + CAB 2000 GENOVA RAVENNA Silhouette 300 BOLOGNA LA SPEZIA ANCONA SAVONA LIVORNO BARI CIVITAVECCHIA NAPOLI TERRA BRINDISI NAPOLI PORTO TARANTO SALERNO GIOIA TAURO CAGLIARI PALERMO TRAPANI CATANIA

21. The MATRIX Control Centre 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. LOCAL OFFICES TRADERS SCANNER RX Source CONTENT SILHOUETTE CONTAINER Incident ray CENTRE LOCAL SERVER (CENTRAL ADM.) NETWORK WEB CONNECTION CONCENTRATOR

22. Fully Automated Logical SysTem Against Forgery Fraud

23. 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. Request for intervention Company record Product record RECOGNIZE genuine products complying with quality and security standards. IDENTIFY counterfeit products and fraud strategies.

24. Who feeds and uses FALSTAFF 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; Customs To directly and continuously update information contained in FALSTAFF and to share the contrast strategy; Companies and business associations 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. Consumers

25. Ministry for economic development Automated alert on dangerous products Information gathered through FALSTAFF also integrates the data used for the computerized targeting of goods Customs operation AEO Customs audit PI SC DC CC Requests for protection White/Black list Risk profiles Feedback from controls AIDA IS SELF-FED

26. AIDA’s Development Identify new processes and modify organization and legislation supplying on-line training and information. Organization Analysis and review of processes Training and Information single window • Adjustment to EU legislation • Review of legislation • Workflow Systems • On-line services Legislation Technology

27. Non-coordinated Approach Organization Legislation Technology

28. Synchronising national egovernment plans with a view to ecustoms: the single-window approach is a key element Min. Defence Customs Min. Foreign Affairs Single window

29. Each reform project that needs to be “translated into computerized processes” must clearly state its “business processes” in detail.We firstdefine the new “computerized business processes”, thenwe define the relevant supporting provisions. Organization single window Legislation Technology

30. E-learning and KB training information • 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 supplied • 2004: 100,000 hours supplied • 2005: 200,000 hours supplied • 2006: 276,000 hours supplied • 2007: 188,000 hours supplied

31. 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)

32. E-learning

33. KB for Traders On-line assistance On the web site of Agenzia delle Dogane www.agenziadogane.gov.it

34. On-line Assistance and e-Learning for Traders How? Search

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

36. WEB Services Telematic 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

37. 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 VAT ID-codes to verify their validity - Consultation of customs exchange rates

38. AIDA Work Desktopfor Customs Staff On-line assistance

39. AIDA 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….

40. Customs Internet Office n. 2 Office n. 1 Office n. 3 Developments after full implementation: total digitalization of customs obligations On-line services Single window No more paper Interoperability

41. AEO www.agenziadogane.gov.it