World Bank Document

Public Disclosure Authorized March 16 Public Disclosure Authorized INSW Stocktake 2010 INSW Status Report and Action Plan CY2010 Public Disclosure Authorized Public Disclosure Authorized ACRONYMS AEC ASEAN Economic Community AEO Authorised Economic Operator APEC Asia Pacific Economic Cooperation ASEAN Association of South East Asian Nations ASW ASEAN Single Window BOL (alt: BoL, B/L) Bill of Lading BPOM (NA-FDC) Badan POM, The National Agency of Food and Drug Control BP-INSW Badan Penglola INSW CMEA Coordinating Ministry for Economic Affairs COO (alt: CoO, C/O) Certificate of Origin CRM Customer Relationship Management DG Director General DGCE Director General Customs and Excise DGFT Director General Foreign Trade DGOAT Director General Office Air Transport ebXML Electronic business Structured Mark-up Language ECOWAS Economic Community of West African States EDI Electronic Data Interchange EDII EDI Indonesia EU European Union GAP Governance, Architecture and Procurement ICT Information and Communications Technology INSW Indonesian National Single Window INSW-PT Indonesian National Single Window-Preparatory Team IPR Intellectual Property Rights ISO International Standards Organisation KPI Key Performance Indicators KPU (Indonesian) Customs Main Unit LOC (alt: LoC, L/C) Letter of Credit MITA Mitra Utama: Priority Partners-a priority importer scheme MOT Ministry of Trade MOTr Ministry of Transport NAFTA North American Free Trade Organisation NGO Non Government Organisation NTB Non Tariff Barrier PI Presidential Instruction PIA Permit Issuing Agency INSW Stocktake January2010 Page 2 SAFE Framework of WCO standards to Secure and Facilitate Global Trade SLA Service Level Agreement UN United Nations UNCEFACT UN Centre for Administration Commerce and Trade UNECE UN Economic Commission for Europe UNeDocs (UNCEFACT/UNECE) UN electronic documents UNUIIST UN University International Institute for Software Technology US United States VASP Value Added Service Provider WCO World Customs Organisation WTO World Trade Organisation XML Structured Mark-up Language INSW Stocktake January2010 Page 3 1.00 Preamble In response to a request by the Minister of Finance to the Executive Chairman of the Indonesian NSW Preparatory Team (INSW-PT)i, the World Bank has been asked to provide a summary of the achievements of Indonesia’s National Single Window (INSW) to this date and a description of remaining key tasks from an external perspective before the program concludes in 2010. The INSW program was initially articulated in the INSW BluePrint of 14 August 2007. A formal description of the implementation of INSW is contained in Presidential Regulation number 10, dated 28 February 2008. This external assessment was undertaken by the World Bank’s Advisors to the INSW PT. The deliverable associated with this assessment is described as “a Stocktake Report” (See Appendix I, Stocktake Terms of Reference (TOR) and Table of Contents (TOC)). Research, interviews and writing were undertaken by World Bank advisors to INSW, Ahmad Malkan Lubis (Indonesian Trade Expert) and Paul Kimberley (International Single Window Expert). The first Draft of the report was completed on 30th November 2009. The final version of this Stocktake Report is planned to be completed by early to mid December 2009, following input from Edy Putra and reviews by Ramesh Siva and the World Bank (Jakarta office). The main contents of the report are to focus on a short list of high priority action items, planned to accelerate the implementation of the INSW. A debrief presentation of the final version of the Stocktake Report was held at the World Bank’s offices in the middle of December 2009. i The Coordinating Minister’s Deputy for Trade and Industry, Coordinating Ministry for Economic Affairs INSW Stocktake January2010 Page 4 Table of Contents Description Page ACRONYMS 2 1.00 INSW Stocktake Report, November 2009: Preamble 4 Executive Summary 6 2.00 INSW National and Strategic Objectives 10 Diagram1 A National Trade, Transport and Logistics Single Window: Community Information Flows 11 3.00 Front Office Workflow 12 3.10 Customs Processes 14 3.20 Priority tasks 15 4.00 INSW Status (November 2009) 16 4.10 Initial Testing Stage 17 4.20 First Stage Implementation 17 4.30 Second Stage Implementation 17 4.40 Third Stage Implementation 18 4.50 Fourth Stage Implementation 18 4.60 Fifth Stage Implementation 18 4.70 Status Summary 19 4.80 The Next Stages of INSW 19 4.90 Current Implementation Arrangements: Urgent Requirements 20 5.00 Interview Program 22 5.10 International Traders 22 5.20 Indonesian Importers 22 5.30 Indonesian GA 23 6.00 Work Program for 2010 and 2011 25 6.10 Significant Actions: The Long Term 25 6.20 Short Term Action Plan (INSW PIU) 27 7.00 Summary 28 8.00 Appendix I Stocktake TOR and TOC 30 INSW Stocktake January2010 Page 5 Executive Summary Following a process of preparation and planning that culminated in the formulation of the INSW Blueprint in August 2007, the Indonesian National Single Window (INSW) has now been in operation for a little more than two years. To a significant degree, INSW has successfully increased the reliability and transparency of the decision-making processes at Customs. Amongst other impacts, INSW facilitates the electronic submission of licensing applications, although only a limited number of such applications are processed electronically at present. As a result of the implementation of INSW, customs and other government agencies have significantly enhanced their supervision and monitoring capabilities over trade transactions, although at present, the number of main private sector beneficiaries is limited to about 300 traders with MITA-type privilege. In addition, INSW has facilitated the development of a comprehensive database of trade regulations (Lartas), which is accessible through the INSW website, with information now available in English as well as Indonesian. Specific achievements of the INSW have included the following: 1. Significant improvements in the quality of Government service in the area of trade clearances, and enhanced perceptions of the Agencies involved in the provision of these services; 2. Improved transparency and greater predictability in Customs decision-making processes, particularly those related to Customs declarations; 3. The establishment of a structure for the initial governance and implementation of INSW through an ad hoc collaborative body, the INSW-PT. The establishment of this body was mandated by the Blueprint and has been remarkably effective in the achievement of its goals. This ad hoc collaborative body is probably unique among ASEAN national single window initiatives; 4. The establishment of a system for ‘stress testing’ a large number of relationships and systems related to Customs processes. INSW stress tests many relationships and systems because it enforces a more rigorous interpretation of regulations, which creates a constant need for collaboration between traders and GA. The impact of this will become even more evident when GA processes are fully automated, placing an increasing workload on INSW-PT during 2010-2011; 5. A reduction in mistakes and improvements in relationships as familiarity with the new processes increases. As INSW users and team members become better accustomed to the new processes, fewer mistakes are made and relationships between the various stakeholders involved in the Customs process improve. While rollouts at new ports, such as the Tanjung Perak port in Surabaya and the Soekarno Hatta (CGK) airport in Jakarta have run into obstacles due to inadequate training, it is expected that these processes will improve very quickly once this is addressed; 6. INSW is now acting as a vehicle for addressing and discussing issues through private sector representative groups on a routine basis. Private sector interest and inputs are becoming increasingly more important. The number of organizations involved in private sector-INSW debriefs is increasing with each meeting. For example, a recent EUCham-INSW debrief was hosted by CMEA and had approximately 50 attendees. These meetings now take place at monthly intervals and are probably the most significant INSW user forum at this stage. As a result the INSW now serves as a de facto forum for addressing trade and related issues with the private sector. Examples of the manner in which INSW has fulfilled its function include the resolution of the conflict between product descriptions and HS codes as required by different GA. Importantly, the resolution of the requirement for both hard copy and electronic input was highlighted by collaborative efforts of INSW and the private sector, resulting in the recent DG INSW Stocktake January2010 Page 6 Customs circular. This initiative typically saves traders one working day in approval and import processes. Many of the achievements of INSW are directly attributable to the efforts of the INSW Preparatory Team, and most particularly to the efforts of CMEA Deputy IV. The hard work and enthusiasm of this team and the goodwill they have generated with other Agencies and with the private sector has become instrumental to the successes of INSW. The INSW-PT has been supported by two World Bank funded consultants, one Indonesian expert and one international expert. In the future, the INSW system will incorporate processes related to port operation, transport, logistics and payment systems, in addition to its current focus on processes related to Customs and GA (the front office or formalities processes). However, before the

Load more