Australian CIO Summit 2012: Modernising New Zealand’s Border Clearance by Channa Jayasinha


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Australian CIO Summit 2012: Modernising New Zealand’s Border Clearance by Channa Jayasinha, Director, Border Change Programme & Joint Border Management System Ministry for Primary Industries

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Australian CIO Summit 2012: Modernising New Zealand’s Border Clearance by Channa Jayasinha

  1. 1. Modernising New Zealand’s Border Clearance “The Joint Border Management System (JBMS)”Channa JayasinhaDirector, Border Change Programme & Joint Border Management SystemMinistry for Primary Industries
  2. 2. A modern global border system
  3. 3. Border sector principles• Risks are managed as early as practicable, ideally before arrival into or exit from New Zealand• Resources are targeted to areas of greatest risk and collective importance• Decision making is driven by accurate and timely intelligence and information, leveraged across government, drawn from domestic and international sources• Partnerships (between New Zealand agencies, with overseas governments and with our stakeholders) enable those best placed to manage risk to do so• Travellers and traders understand their obligations to make it easy for them to comply• Efficiency and effectiveness in border management enabled through collaboration across government and use of technology• Service delivery is designed to streamline trade and travel, and to present a single face of government to travellers and traders wherever practicable• Border systems maintain and enhance government’s assurance programmes 3
  4. 4. Ministry For Primary Industries (MPI) rolein border management - Biosecurity• MPI focuses on managing Trade & Biosecurity risks at the border• NZ border management pathways ~ Passengers, Mail, Cargo & Vessels• MPI manages 70% of NZ’s exports• Biosecurity incursions can damage reputation and incur significant costs
  5. 5. Biosecurity Incursions in the past Incursion Response Year Started Estimated YTD Costs to Crown White Spotted Tussock Moth 1996 $12,400,000 Painted Apple Moth (PAM) 1999 $66,995,000 Varroa Bee Mite 2000 $10,752,000 Asian Gypsy Moth 2003 $5,400,000Didymosphenia Freshwater Algae (Didymo) 2004 $15,619,000 Sea Squirt marine fouling pest (Styela) 2005 $4,412,000 Nelson Varrao 2005 $10,096,000 Southern Saltmarsh Mosquito 2006 $23,606,000 Rena 2010 $42,000,000
  6. 6. More recentincursionsQueensland Fruit Fly• Recent find of a lone male fruit flyin Auckland•Caught in one of 7,500 surveillancetraps around Auckland•Threat to $3 Billion Horticulturalexport sector• Response lasted just over 2 weeksat a cost of $2MPsa Kiwifruit virus• $1 Billion export-earner•37% of Kiwifruit orchards infected• It will cost the industry $885M overthe next 15 years• Reputational damage to NZHorticulture industry
  7. 7. What Customs and MPI do at the Border
  8. 8. JBMS Vision “Government border sector agencies and industry working together using highly effective, agile and integrated processes, systems and technologies to keep New Zealand’s border safe and secure, assure government revenue collection and enhance New Zealand’s international reputation as a highly desirable trading partner and tourist destination”
  9. 9. Why NZ needs JBMS• Existing aging technology presents an increasing risk of failure• Inflexible systems that will not be able to meet evolving expectations for border management and international facilitation initiatives• Current resource-intensive agency processing will struggle to cope with volumes and complexity over time• Current cargo and craft clearance messages not international standard-compliant and insufficient for border agency needs• Duplicated processes across Customs and MPI and different approaches for managing border risks
  10. 10. What did the Industry want from JBMS• Joined up agency requirements and channels• Greater electronic interface to MPI• Less cost and effort in providing information to agencies• System connection options• XML messaging• Online client code applications with faster responses 24/7• Recognition of clients who consistently comply• Certainty of clearance requirements – before cargo arrival• International trade facilitation opportunities
  11. 11. The solution
  12. 12. JBMS Tranche 1 12
  13. 13. What is TSW?UN/CEFACT Recommendation 33 – definition of a single window- A facility that allows parties involved in trade and transport to lodge standardised information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements.- If information is electronic, then individual elements should only be submitted once.
  14. 14. NZ Border Sector System Interfaces
  15. 15. What are we building? – A Trade Single Window Tranche 2 NZCS MPI: Biosecurity Food
  16. 16. JBMS Tranche 1 TSW Risk and Intelligence JBMS Messaging and Entity Resolution Data Mining Web Gateway and Mining Intelligence Risk Identification Registration Processing and Management CUSMOD Goods Craft Passenger Workflow Processing Processing Processing Seized/Detained Goods Tracking Quantum Goods Processing 16
  17. 17. JBMS Solution Layers Presentation Layer (Channels) Security Desktop Desktop Mobile Mobile Kiosk Kiosk Electronic Gate Electronic Gate Web Web Access Management Application Layer Craft Craft Passenger Passenger Goods Goods System Identity Trade Single Window Trade Single Window Intelligence Intelligence Processing Processing Processing Processing Processing Processing Management Service Layer Event Monitoring Goods & Evidence Goods & Evidence Resource Scheduling Resource Scheduling Auditing & Auditing & Pattern Analysis Pattern Analysis Enterprise Search Enterprise Search Management Management & Management & Management Monitoring Monitoring iGovt Integration Risk Profiling& Risk Profiling & Entity Management Entity Management Entity Mining Entity Mining Workflow Workflow Action Plans Action Plans Rating Rating Customer Customer Content & Document Content & Document Business Rules Business Rules Business Intelligence Business Intelligence Relationship Relationship Portal Portal Management Management Engine Engine Management Management Integration Layer Event Bus Event Bus Gateway GatewayKEY: Tranche 1 deliverable Tranche 1 partial deliverable Tranche 2 deliverable Existing System requiring integration
  18. 18. Architecture• End to end architecture – Commercial-off-the-shelf packages – Bespoke software (TSW) – Integration with CusMod, Nexus (warehouse), Quantum – Based on end-to-end process• Solution set − Sterling B2B gateway − SPSS - pattern analysis − Initiate - Master Data Management − FileNet - content management − ArcticFast – Action Plans − DB2 - database − WebSphere Process Server - orchestration − Tivoli - security − Java - bespoke development
  19. 19. JBMS Tranche 1 Benefits Total Benefits over 10 year life estimated at $533m Agency efficiency and value for money FTE savings $41m - 7% Future staff growth containment: QualitativeAgility to handle future change Safeguard Border systems services Decreased CusMod failure risk: $99m – 18% Secure existing Government revenue base: qualitative Industry supply chain efficiency and effectiveness Increased supply chain efficiencies for imports and exports: $137m – 26% Improved trust and mutual recognition: Qualitative Advanced Management of border risk – 49% Biosecurity harm avoidance $199m – 38% Drug harm avoidance $56m – 11% Passenger experience: Qualitative
  20. 20. Cost Recovery• Net operating costs over the 11-year life of the system is $204M• Cabinet agreed to recover 50% of costs from Industry by increasing fees• $46M over 3.25 year initial cost recovery period and then the remainder over a further 4.75 years• Fees will be first adjusted to reflect changes in transaction volumes• Industry consultations in progress with report back to cabinet in October 2012.• Cost recovery to start on 1 April 2013 when the Trade Single Window is launched.
  21. 21. Business Transition May June Jul Aug Sept Oct Nov Dec Jan 2013 Feb Mar Apr System deliverymilestones SPSS Tool Available Release A Release B Go Live Business Transition Plan Communications Plan Business Impact Assessment Operational Procedures People Readiness (PRA) Plan People Transition Plan Training Strategy Training Needs Analysis/Plan Release A Comms Release B Comms Training Release A Training Release B Early Life Support
  22. 22. Stakeholder Transition May June Jul Aug Sept Oct Nov Dec Jan 2013 Feb Mar Apr System deliverymilestones SPSS Tool Available Release A Release B Go Live ECN contingency Release A Release B plan agreed pilot review pilot review Pilot partner On-boarding May 2011 – May 2012 agreements signed docs revised • Industry workshops • High Level procedures Repeat client consultation Intentions • Detailed procedures TSW fact sheets published survey consultation • Online information • Pilot partner engagement Client registration Direct connect & WCO3 • CBAFF conference records migrated marketing material published • Tomorrow Cargo Logistics and validated meetings Stakeholder • Items in internal and agencies updated external publications
  23. 23. JBMS Tranche 2 Vision TSW Risk and Intelligence Messaging and Entity Resolution & Data Mining Web Gateway Mining Registration Intelligence Risk Identification Analysis and Management Reference Enterprise Search Library Prosecutions & Information Transaction Processing Investigations Services Evidence Goods Craft Management Knowledge Passengers Case Management Management Workflow Customer Relationship Content Management Management 24
  24. 24. Key learnings from programme• Governance: Strong and active cross agency governance has driven what we have achieved so far• Consultation: It’s important to consult with Industry early on benefits and cost recovery options• Resourcing: The level of resources needed for the programme from both agencies exceeded initial projections, hence had an impact on BAU work.• Monitoring: The level of external monitoring and auditing imposed on the programme was underestimated and also required more effort than initially anticipated.• Communication: When communicating progress to key stakeholders, the industry and internal staff , we underestimated the time involved in customising the story.• Benefit Realisation: It’s important to develop (early) a benefit realisation framework over the life of the programme (10 years) and have persons accountable for capturing and reporting on the benefits. E.g. Chief Executive KPI.
  25. 25. Thank