SENEGAL Peer Review Country Report

Workshop on the impact of single windows on the passage of

goods across ports and on the trade facilitation in general

Douala, Cameroon, 08-11 September 2014.

Peer Review Week

Date: 14th to 18th July 2014: Dakar, Senegal

Team: Dr. Somnuk Keretho and Ms. Birgit Viohl,

project consultants, and

Mr. Abdoullahi Faouzi

(Cameroon Single Window, e-GUCE)

Mission: 19 interactive sessions

Scope: ORBUS, GAINDE Integral, ORBUS Logistics,excluding Customs Management System (CMS - GAINDE)

for clearance processing,

and the B2B e-marketing services (Buntoo)

2

1.1 Context: Type of SW

Single Window for Pre-Clearance and Clearance Formalities

with few logistics-related services

Supporting electronic interaction among

traders (or their representatives/declarants), Customs agents,

shipping lines, freight forwarders, banks, insurance companies,

the inspection company, Customs Administration and almost

all other foreigh trade-regulated agencies with

electronic data submission and regulatory approvals,

consolidated payment online and offline for fees and duties,

status notification and performance reporting services

during import and export procedures.

Fully paperless environment - except for some exceptional cases

Continuous evolution of processes & services coverage

(in operation since 2004)

4

1.1 Context: Type of SW (evolution)

5Adapted from the presentatIion by Ibrahima DIAGNE, MD of GAINDE2000, April 23rd 2012.

2011

ORBUS moved

its operations from

an automated system

to

a paperless system

1986

Senegal

government takes

the decision to

develop it own

CMS

1990

The telecom

infrastructure allows

Customs GAINDE to

be online in 1990.

1995

Senegal government

starts consultation to

develop a national SW

2002

GAINDE2000was stablished.

2004

The NSW

ORBUS is

operational.

2006

GAINDE starts

international

cooperation

1.1 Context: Type of SW (SW Model)

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SW Front End

for Traders/Declarants

(for Pre-clearance

Formalities)

SW for Trade

Formalities

Orchestration

(with paperless

documents exchange,

data cross checking,

online approval,

consolidated

e-payment,

status notification

and

performance reports)

SW Front End

for Customs Agents

(for Customs Clearance)

SW Front End

for Shipping Lines

and Freight Forwarders

(for e-Manifest submission

& release order tracking)

OGA-1(for permits/certificates)

Commercial Banks(for issuing

exchange permits,

and online payment)

Cotecna(for pre-clerance inspection)

OGA-2(for permits/certificates)

OGA-9(for permits/certificates)

Customs

Administration(for Customs Cleareance)

End Users Service Providers

1.2 Context: National policy direction & mandate

The national strategy to become an international trade hub

for the region has been set by the Senegalese Government.

Foreign trade Single Window inititaive started in 1996 led by

Ministry of Commerce, then in 2001 the mandate was moved to

Ministry of Finance with the strong involvement from

the Customs Administration.

In 2002, GAINDE2000, a PPP company, was established and

mandated by MOF to develop and operation the SW platform

for the country (CGPID 92%, Private 8% share).

In 2008, the Government further endorsed the national policy

towards paperless trade and e-government solutions.

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1.2 Context: National policy direction & mandate - SWOT

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1. 3 Context: National Governance & Stakeholder Collaboration

(National-level) Senegal Paperless Trade ProjectWorking collaboratively at the strategic, management and development levels

Steering Committee

comprising of Senior Officials from key government agencies, e.g.

Customs, Port Authority, other Ministries/Departments/Authorities

and business associations,

empowered to validate the project related deciision and

monitor the execution of milestones

Project Management Committee

MD of GAINDE2000, (chair), and representatives from Customs,

Port Authority etc., proposing to the Steering Committeee

the plan of actions, and assuring the execution thereof.

Development team: by GAINDE2000 team, Customs IT Team

which work closely together in the same or closed location.9

1. 3 Context: National Governance & Stakeholder Collaboration - SWOT

10

1.4 Context: Legal Framework

The mandate of Gainde to operate the NSW of Senegal

is contained on the status of the company itself.

So GAINDE has been created to operate the single window.

Electronic Transaction Law “No.2008-08 of Jaunary 25, 2008”

for legalizing electronic documents and electronic signatures, and

Data Protection Law “No. 2008-12 of January 25, 2008” for

the protection of personal data were enacted.

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1.4 Context: Legal Framework - SWOT

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1.5 Context: Corporate Governance and Strategy

GAINDE2000 – a PPP company (CGPID 92%, Private 8%)

(Customs is chairing the CGPID.)

PPP Board Committee – having representatives from

Customs Administration and key private associations

Long-term well established Leadership

by Managing Director of GAINDE2000

Closely collaborating and building trust, and

continuously delivering substantive value to the commuity.

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1.5 Context: Corporate Governance and Strategy -SWOT

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1.6 Context: Financial Model

Senegal Single Window is financially self-sustainable after one year

of its operation (mainly from mandatory electronic submissions)

The service rate has been determined to just cover all the

operational costs and the research and development activities.

The central servers of ORBUS are hosted by customs.

So ORBUS and Customs CMS share the same central

infrastructure and maintenance costs are supported by

Customs Administration.

This situation is changing now. since 2012, Gainde is moving all its

equipement from Customs data Center to it's own data center. The sharing

of hosting environment was to facilitate the implementation of the SW and to

buid trust between SW and CMS management teams.

Additional earns come from other services but those are not

mandatory e.g. training and electronic payment, and

international consultancy.

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1.6 Context: Financial Model - SWOT

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1.7 Context: Performance & Process Monitoring - SWOT

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1.8 Context: Human Resources -SWOT

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1.9 Context: Client Relationship

19

End Users

Service Providers

1.9 Context: Client RelationshipNames of Service Providers & Roles

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2.1 Coverage:Trade procedures & formalities by SW

21Adapted from the presentatIion by Mor Talla Diopof GAINDE2000, Feb 2014.

2.1 Coverage:Trade procedures & formalities by SW

Release Operations

• Release order

Customs Declare

• Electronic documents are

consolidated in a folder and

transmitted online to the Customs

Management System dubbed

GAINDE INTEGRAL (for Customs

declaration processing)

• Consolidated online payment of

Customs duties, taxes and fees

Pre-Clearance

• Traders/Declarants submit

electronic data (based on

invoice data, and other

accompanying documents,

deed of transport, importation

document, etc)

• ORBUS automatically lists

required Permits/Certificates for

each case

Approval

• The Inspection verifies and

validates data online, and issue

DPI (Déclaration Préalable

d’Importation),

• The Bank verfies and issues AC

(Autorisation de Change)

• OGAs issues relevant

permits/certificates

Release

• Submission of electronic

manifest (by Shipping lines)

to CMS through SW

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2.1 Coverage:Trade procedures & formalities by SW - SWOT

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2.2 Coverage: Processes & Services

The Senegal SW supports the typical interaction between traders and

government entities for the approval of trade transactions and

issuance of relevant documents pursuant to national legislation.

Electronic government approval and document collection process;

Electronic processing of payment of Customs duties and taxes;

Electronic submission of Cargo manifests through SW, then

to Customs Administration

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2.2 Processes/Services by SW - SWOT

Strengths

The collection and submission of electronic data and issuing documents for pre-clearance

is efficiently managed, e.g. with unique data entry, user-friendly interfaces, fast processing,

and with automatic routing rules for OGA requirements.

OGA interfaces to visualize data and report process decision in the SW.

SW data exchange with CMS, GAINDE integral of declaration relevant data and linking of

SW file with the declaration file.

For OGAs' electronic signatures on submitting and issuing e-documents

Non-electronic documents, e.g. documents from aboard, can be electronically scanned

and attached to the system.

Possibility of progressive data entries allows users flexibility.

For SMEs, non-formalized representatives and small Customs Brokers, there is a facility

(CF) in Dakar for data entry services.

Training programs for users are available but with fees.

Payment for OGA formalities and SW are now collected in one place, with the possibility

for monthly payment settlement25

2.2 Processes/Services by SW – SWOT (cont)

Weaknesses

Lack of offline notification channels for all users and in particular CF users that also

cannot view status of the files on-line.

SW capability for data exchange with external systems (e.g. stakeholders like

COTECNA, Banks, Insurance, OGAs, other countries’ SWs) is less developed.

Back-end processes of stakeholders, e.g. decision making, controls and task

coordination and workflow communications are not integrated.

Reported high frequency of data entry error cases increase the time for controlling by

the OGAs and increasing overall processing time due to amendments and their

subsequent physical papers and physical visits.

Lack of the tools that allow OGAs to monitor case-by-case processing, e.g. OGA and

users need to write down some information from the system in their own paper log

book to keep track of the files or the decisions.

Low percentage of ORBUS users using CORUS e-payment functions.

Payment process for SW services is either cash payment or bank transfer with many

users using cash payment. Invoice for subscribed users is still paper-based.26

2.2 Processes/Services by SW – SWOT (cont)

Improvement Opportunities

Offering regular training for users and extending it to non-formalized users.

Data visibility for Customs should be available in single interfaces instead of multiple user interfaces.

Conducting some studies of the types of data entry errors and their root causes for analyzing and

identifying improvement measures. For example, some specific data elements with the most-likely

errors should be treated with some error elimination techniques, e.g. with re-checking warning or

second confirmation, or the 2nd person data cross checking at the counter service (of course, based

upon its return on investment also).

Collecting users/stakeholders’ requirements regarding the monitoring of case-by-case transaction and

develop tools that can be made available with fee.

Further documenting incidents of physical signature on documents (e.g. required by third or other

parties Certificate of Origin, SPS Certificates) and discuss solutions to eliminate or reduce some

number of physical signatures on paper documents.

End-to-end performance measurements but from the business traders' perspective should be

conducted, e.g. average time from starting the data submission to approval of pre-clearance DPI & AC

formalities.

Promoting more actively information about regulatory requirements, e.g. through the Buntoo services.

Conducting a study on the possibility of providing automatic control and in future automatic decision

making supporting functions for OGAs.27

3. System Architecture & Technical Issues - SWOT

Strength

- Partnership with a private Internet Service provider facilitates

access to the Applications by the users

- Dedicated datacenter for all the applications

- Infrastructure sharing with the CMS facilitates integrations

- Infrastructure management processes are certified with ISO 9001

- Well trained personnel for the datacenter management

- In-House Developments for all the applications

- Common and Collaborative Team from GAINDE and ORBUS

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Weaknesses

- Although it is a web-based application, ORBUS is not yet accessible through

Internet

- The CMS, also web-based seems not to be secured from the MIM password,

because it is not using a Server certificate for the http encryption, e.g.

the https protocol has not been utilized on some login-password screens.

- The certificates are only used for signing pdf Documents

- All the stakeholders are using the same database. This may complicate the

management of the Orbus Software as number of stakeholders are growing.

- The usage of an abroad certification authority may cause legal trouble in case of

issues on the documents provided.

- Only one Internet Service provider seems to be providing access to the CMS

and ORBUS (Orange).

3. System Architecture & Technical Issues - SWOT

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Improvement opportunities

- Allow users to access the ORBUS Application through Internet to permit

treatment of files from outside the office by stakeholders, but of course with

better security schemes.

- Develop a National Certification Authority in collaboration with Government

and make sure GAINDE 2000 is at least a registration Authority for that CA.

- Allow if feasible, the strong authentication using certificates.

- Implement a real Enterprise Service Bus (ESB) in the ORBUS platform, to

enhance GAINDE 2000 integration flexibility and capability.

- Encrypt the CMS transaction using HTTPS

- Apply the ISO/IEC-27000 Information Security Management Systems (ISMS)

standard concept for the Senegal SW environment, e.g. in a regular basis,

conducting the ISO/IEC-27005-based risk assessment analysis, conducting

vulnerability assessment and penetration testing, and implementing security

control measures to reduce those proiritized risks and vulnerabilities.

3. System Architecture & Technical Issues - SWOT

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4. Performance: Usage Statistics

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4. Performance: Usage Statistics

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4. Performance: General Impacts

The SW scope and functions were expanded

incrementally. It seems that the paperless version

implemented since May 2013 had a significant

marginal impact for the users and stakeholders.

Most users, but in particular the stakeholders, say

they value the improvements made by the SW.

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4. Performance: Impacts on Facilitation level

Users: SW has significantly reduced both processing time,

and their internal preparation times

Users: E-submission also has cut down the number of

physical movements necessary.

– Possible 0 movement for online user and monthly

payment subscription, or

– Up to 2 movements if CF is used for the deposit of

paper documents and cash payment for the services.

Stakeholders: Processing time per transaction has been

reduced (in particular banks)

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4. Impacts on Efficiency of Processing

Positive:

Stakeholders noted that abandon of personal contacts has

improved their productivity (less people queuing and arguing).

Paper requirements has been reduced, e.g. previously Cotecna had

to print out 5 copies of the DIP now only one, DPV does not print

a copy anymore at all, and Manifest was previously required in up

to 8 copies.

Users: Archiving of documents is now made easier online.

Some stakeholders have been able to assign staff to other functions

(SGBS has now only 1 person processing instead of 4 previously).

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4. Impacts on Efficiency of Processing

Negative

Two users, have noted that the numerous data

errors and the process to manage them (for non

validated documents) is sometimes lengthy, e.g. more

time is needed to write a message to the person and

wait until they correct error in data in the SW.

Two users also mentioned that double checking on

the screen takes them longer than keying in the

information as they did previously.

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4. Impacts on Compliance

DI (Dept of Industry) reported that previously it was

easy to circumvent the control and checks of their

process (issuing of CoO). With the SW, the number

of frauds and wrongly issued CoOs has been reduced

significantly.

Although this is a great impact, the SW does not

support the OGA processes of controlling the data

and taking a decision. They are still the result of

human intervention outside the SW and prone to

errors in the processing.

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4. Impacts on Cooperation

As a result of the SW, the various actors involved in

the trade procedures have established

a good relationship and the SW is a platform for

inter-agency dialogue on trade facilitation.

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4. Impact: Time & Cost

39

4. Impact: Time & Cost

Transit and Transhipment process is not covered yet.

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Thank You

Workshop on the impact of single windows on the passage of

goods across ports and on the trade facilitation in general

Douala, Cameroon, 08-11 September 2014.