ESTABLISHING A NATIONAL SINGLE WINDOW GHANA’S EXPERIENCE

Angelina Bainiah/GRAEmmanuel Darko/GCNet

Ghana Revenue Authority

Outline of presentation

GENESIS OF GHANA’S SINGLE WINDOW

GHANA’s TRADE FACILITATION AGENDA

INEFFICIENT AND OUTDATED CUSTOMS PROCESSES

GOVT’S ACCEPTANCE OF SINGLE WINDOW CONCEPT

SELECTION/STRUCTURE OF GHANA’S SYSTEM

CAPABILITIES OF SYSTEM

SERVICES PROVIDED BY THE SYSTEM

DEPLOYMENT APPROACH

BENEFITS

CRITICAL SUCCESS FACTORS

ACCOLADES

CHALLENGES/CONSTRAINTS

WAY FORWARD

CONCLUSION

Genesis of Ghana’s single windowGhana’s trade facilitation agenda (1)

Government reforms and macro economic policy

1983 - Government of Ghana reforms to propel the economy from a low income status to a middle income status.

Mid 1990’s - Expected growth rate of 8-10% needed to register a positive impact on the standard of living of the people not achieved.

Alternate strategy to the development agenda - Vision 2020.

Vision 2020 was Government’s macro economic policy and long term development agenda to propel Ghana to achieve a balanced economy and middle income status with improved standard of living.

Also designed to promote the flow of foreign capital and resources into Ghana and provide infrastructure services of international quality to investors.

Ghana’s trade facilitation agenda (2)

The Ghana Trade and Investment Gateway Programme

To realize the objectives of Vision 2020, Government in 1998 instituted the Ghana Trade and Investment Gateway Programme (GHATIG).Programme objectives:

Make Ghana the trade and investment gateway to West Africa ie to make Ghana the most preferred and most efficient investment and trade destination in West Africa

To increase the participation of the private sector in the development of the national economy.

Ghana’s trade facilitation agenda (3)

THE GATEWAY PROJECT

Established in 1999 under the Ghana Trade and Investment Gateway Programme

Primary objectives:

To attract a critical mass of export oriented investors needed to accelerate economic development

To provide a conducive investment environment and to facilitate trade

Modernization of frontline Government Agencies (which are the first point of contact by Investors) and to re-engineer them into trade facilitators.

The Agencies are:

Customs Division of the Ghana Revenue Authority, Ghana Ports and Harbours Authority, Ghana Free Zones Board, Ghana Investments Promotions Centre, Ghana Civil Aviation Authority, Environmental Protection Agency, Ghana Immigration Service

Inefficient and outdated customs processes

In the mid 1990’s, dissatisfaction by business community with inefficient and outdated procedures and policies of Ghana Customs.

An institutional Audit conducted by Crown Agents in March 1998 revealed the following:

Customs regulations were too complex to comply with Clearance procedures were complex, cumbersome and time consuming resulting

in delays in entry processing There were too many human interventions There was too much paper work There were high error rates in import entries submitted to Customs

The report also indicated that Customs did not have the tools, methodology or corporate culture to deliver service in a manner consistent with the Gateway project objectives.

Government’s recommendation and acceptance of single window concept

Need to modernize Customs in order to enable it to play its role as a trade facilitator in addition to the traditional role of a revenue collector and enforcer of Government regulations.

Recognition by Government of the use of IT as an enabler to make dramatic improvements in the delivery of services and facilitation of trade by Customs.

One of the major deliverables under the Gateway project for Customs was therefore the implementation of an automated Customs Management System.

Government mandated Customs to build a system that was capable of networking the trading community and Government Agencies to a common platform to facilitate sharing and exchange of information and ultimately to enhance efficiencies in the operations of the trading community. – Single Window concept

Selection of trade net PPP business model

Trade net system selected to provide a single point of entry for submission of documents and to exchange and share data and information amongst the trading community

Ghana’s system known as GCNet/GCMS

PPP arrangement put in place to implement and manage the system

System rolled out in 2002

Why TradeNet / GCMS

System Introduced To :

Facilitate trade and clearance of goods through Customs in a secured manner

Enhance mobilization of trade-related revenue for Government

Minimise malpractices associated with import / export trade

Reduce transaction costs and delays Trade Operators encounter In clearing consignments through the ports

The Ghana Community Network (GCNet) System

GCNet SYSTEM CONSISTS OF TWO (2) COMPLEMENTARY SYSTEMS—- THE TRADENet SYSTEM

TradeNet: An EDI Platform for Transmission of Electronic Messages (CUSDECs / CUSRES) Between Trade Operators and Customs on one hand and Other Regulatory Agencies On The Other

- THE GHANA CUSTOMS MANAGEMENTSYSTEM (GCMS)

A Versatile Automated System for Processing Customs Declarations Electronically (eg. Manifest Integration, Validation of Entries , Payments, Warehousing, etc.)

Premier Towers CEPS HQ

Customs Officers interfaced to GCMS

GCMS Server

TradingCommunityInterfacedto TradeNet

Banks interfaced To GCMSShipping Lines

Interfaced toTradeNet

TradeNet Server

All other AgenciesInterfaced to TradeNet:MOTIMoFStatistical ServiceVATBOG…

Before GCNet-Shuttling from one agency to another

Port Authority

Ministries,Departments

andAgencies

Shipping Agent

Banks

ClearingAgents

FreightStations

InsuranceCompanies

VehicleLicensingAuthority

CustomsDestinationInspectionCompanies

What is GCNet doing?-Networking all parties to a common platform to facilitate sharing and exchange of information

Capabilities of the system

Allows 24 hrs. / 7 days Submission of Declarations and documents Provides a single platform for processing trade-related documentation Provides platform for centralized verification of entries Provides a risk management module for profiling consignments into risk

categories Provides systematic monitoring of consignment movements

Facilitates post clearance audit to account for consignments / Proper closure of transactions

Processes all Customs regimes Provides “Real Time” statistics and revenue reconciliation Provides “Real Time” Reporting on trade statistics Provides audit trail facility to monitor officer performance Capacity to audit transactions promptly Transparent and predictable processes, less bureaucracy

Services provided by single window

Processing of Manifest and distribution Processing of FCVRs and distribution Issuance and distribution of Permits and Exemption Certificates by Regulatory

bodies Valuation Assurance Module Electronic tracking of goods in transit Electronic Valuation of Used vehicles Processing of Declarations and distribution

Standard Declaration Head load Declaration

Access to statistics by various Stakeholders using data mining tools Customs Release and Electronic Delivery Order

Allows freight terminals and shipping lines to receive Customs electronic declaration advising them of cargo due for examination.

Allows shipping lines to send instructions to freight terminals advising them that cargo can be released

Current system users

Customs Port Authority Shipping Lines (87) Custom House Agents (771) Commercial Banks Freight Terminals Airport Freight Handling Operator Central Bank Oil Marketing Companies Driver and Vehicle Licensing Authority Shipper’s Authority Bonded warehouses Ministries, Departments and Agencies (28)

Phased deployment approach

First deployed in November 2002 at Kotoka International Airport and Customs headquarters.

Tema port, James Town in Accra, Aflao border town and Takoradi port in 2003.

Now deployed in all 10 regions of the country The above stations process about 98% of total declarations. Over the years, modules have been enhanced New modules have been added Ministries, Departments and Agencies (MDA) system deployed

in 2006

Enhancements

New Modules added and enhancements made since initial roll out in 2002 to respond to requests from users and changes in the business environment- Vehicle valuation module- Temporary vehicle importation- Transit etc

Technological upgrade of GCMS1, a DOS based system to GCMS2 a windows based system on April 6th 2009.

Upgrade of MDA application to a new MDA Portal in October 2009.-Off line FES application system was replaced by a web based system with new features like ability to process on line payments, introduction of risk engine, incorporation of UCR and ability to process scanned supporting documents etc.

Benefits

Benefits have been substantial in terms of increase in Government revenue and reduction in clearance times. In the first year, import revenue grew by almost 50%. In subsequent years there has been an average growth of 23%. This has been possible through plugging of sources of revenue leakage, and transparency of operations.

Faster clearance times through speed of processes and elimination of unnecessary Paperwork and human interventions. At KIA, consignments cleared in 1 day, as against a pre-GCNet

situation of 2-3 days 1-3 days clearance time at Tema as against a pre-GCNet average of

2-3 weeks In Takoradi, consignments cleared in 1 day, as against a pre-GCNet

situation of 2 days Portrays a professional image of Customs Improved staff working conditions through upgraded infrastructure

Critical Success Factors

Well defined goals and strategies A balanced selection of complementary partners with unique strengths

and effective Project champions who had absolute conviction that project could work

Political support and commitment - Strong support was provided by Government through the Gateway oversight committee which was chaired by the Vice President of the Republic of Ghana.

Management support and commitment -A performance contract was signed between the management of Customs and the Gateway Oversight Committee. This contract made provision for sanctions against the management of Customs for failure to achieve the said goals.

Regular and extensive sensitisation and consultations with stakeholders in the form of meetings, workshops and open fora.

A sustainable self financing arrangement in the Public Private Partnership approach.

Development of network infrastructure to obviate relatively weak national infrastructure.

Accolades

Well acknowledged at home, by the World Bank, and the WCO. Presentations have been made at several WCO fora in Brussels, Senegal, Morocco etc

It has also become a reference in the region.

The private-public sector partnership that was adopted has become a model for e-governance projects in Ghana.

CHALLENGES/CONSTRAINTS

Overcoming the human factor, institutional, attitudinal and infrastructural constraints required for a successful change management

Ensuring high level of compliance among Trade Operators and Declarants

Overcoming seeming reluctance of some Regulatory Agencies to interface with System to enhance trade facilitation

Absence of complementary electronic systems for internal operations of Government and other trade-related Agencies (eg. Port Cargo Management System, etc.)

Addressing infrastructural constraints especially at land borders and remote sites

WAY FORWARD

Deploy all functionalities of the new MDA portal (on line payment for MDAs, Coordinated Risk Management etc)

Full deployment of Ghana Integrated Cargo Clearing System (GICCS).

Implementation of second phase of Unique Consignment Reference project to facilitate data exchange with other Customs administrations

Strengthen collaboration with Neighbouring Countries Customs Administrations for improved transit control processes/Connect with other national systems (International Single Window)

Continuous Sensitization / Education of Officers and Trade Operators

Conclusion

The GCNet/GCMS system has substantially transformed and modernized Customs procedures and processes, resulting in increased revenue collection, reduction in clearance times and greater compliance by stakeholders.

It has also facilitated trade and investment promotion in Ghana.

Development of a single window is a gradual and long term process involving several initiatives and organizational rearrangements.

It is possible to roll-out a complex system, with the right capabilities and approaches.

Thank You