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Bolstering E-governance with
Certus
Contributions to Norwegian Customs and Excise
Contributions to Norwegian Customs and Excise

Sagar Sen
Research Scientist
Certus Verification and Validation Center, Simula Research Laboratory, Oslo




                                                                              1
The Heart of Norway’s E-governance:
TVINN



                  • The Norwegian Custom’s IT-system for
                    processing declarations

                  • Established in 1988


                  • Around 120 billion NOK revenue in 2011




                  • Towards a corruption-free society        2
The Heart of Norway’s E-governance:
TVINN

                   • 30,000 declarations/day, more than
                     100,000 customs rules


                   • Customs rules accept/reject
                     declarations based on information in the
                     declaration


                   • Norway first country in the world to use
                     UN’s EDIFACT brokerage standard


                   • Key to a corruption-free society




                                                            3
Daily Challenges for TVINN



                      • Accurate Computation of Taxes




   3.14159263....

                                                        4
Daily Challenges for TVINN



                          • Accurate Computation of Taxes


                          • Preventing criminal activities such
                            as mafia


Gross-weight > 2 x Net-
       weight?



                                                                  5
Daily Challenges for TVINN



                      • Accurate Computation of Taxes


                      • Preventing criminal activities such
                        as mafia


                      • Protecting people of Norway from
                        imports of hazardous substances




                                                              6
Daily Challenges Translates to Testing

  • Accurate Computation of Taxes


  • Preventing criminal activities such as mafia


  • Protecting people of Norway from imports of hazardous substances



                    Testing TVINN

Are customs rules complete? Can they correctly detect
              problems in declarations?

                                                                       7
Behind the Scenes: Testing at Toll

                    • Testing the Dynamic TVINN system




Eg.: New government, new
          policy!
                                                         8
Behind the Scenes: Testing at Toll

                         • Testing the Dynamic TVINN system


                         • League of extraordinary test managers at Toll




Atle, Katrine, Astrid,
        Odd


                                                                           9
Behind the Scenes: Testing at Toll

                        • Testing the Dynamic TVINN system


                        • League of extraordinary test managers at Toll
         Coffee
   8-digit Item Code:
       0901200          • Customs rules are a combination of 10,000 Item
                          Codes, 88 Country Groups, 934 Tax Types




   Country Group: EU




  Tax Fee Code: MV
    Tax Group: 1                                                          10
Behind the Scenes: Testing at Toll

                  • Testing the Dynamic TVINN system


                  • League of extraordinary test managers at Toll


                  • Customs rules are a combination of 10,000 Item
                    Codes, 88 Country Groups, 934 Tax Types


                  • 13 trillion possible interactions!


                  • Manually finding a faulty rule is like finding the
                    proverbial needle in a haystack!




                                                                         11
Can we automate steps for test managers?




                                           12
Depict: A Surgical Tool to Detect Holes in
   Declarations


                                  • Modelling What You Are Looking For!




       Headphone
Coffee     s    Cotton VAT etc.




                                                                          13
Depict: A Surgical Tool to Detect Holes in
Declarations


                             • Modelling What You Are Looking For!


                             • Automatic Generation of Data
                               Interactions




                                                                 14
Depict: A Surgical Tool to Detect Holes in
Declarations


                           • Modelling What You Are Looking For!


                           • Automatic Generation of Data
                             Interactions


                           • Visualizing Holes (Absence of
                             Interactions) in Thousands of Records




                                                                     15
Depict: A Surgical Tool to Detect Holes in
  Declarations


                                           • Modelling What You Are Looking For!
Holes detected in 8400 declarations in 6 seconds!
        Eg. No test for Coffee and VAT
                                           • Automatic Generation of Data
                                             Interactions


                                           • Visualizing Holes (Absence of
                                             Interactions) in Thousands of Records


                                           • All this in a matter of seconds!




                                                                                     16
Bird’s Eye Visualization of Large and
Complex Data
  Visualizing Items Imported to Norway (8400
                  declarations)




                                               17
The Big Picture: Certus


Private Sector
                 In a unique dialogue to build...   Public Sector
                           Mutual Trust
                             Synergy
                      Solutions to Common
                    Software V&V Problems




                                                                    18
Acknowledgements
Arnab Sarkar, Institute of Engineering and Mgmt.,
Kolkatta
Astrid Grime and Atle Sanders, Toll
Members of Certus SFI and Norwegian Research
Council

Thank you for listening. Questions are
welcome.




                                                    19

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Presentation ministerpubadminfeb2013

  • 1. Bolstering E-governance with Certus Contributions to Norwegian Customs and Excise Contributions to Norwegian Customs and Excise Sagar Sen Research Scientist Certus Verification and Validation Center, Simula Research Laboratory, Oslo 1
  • 2. The Heart of Norway’s E-governance: TVINN • The Norwegian Custom’s IT-system for processing declarations • Established in 1988 • Around 120 billion NOK revenue in 2011 • Towards a corruption-free society 2
  • 3. The Heart of Norway’s E-governance: TVINN • 30,000 declarations/day, more than 100,000 customs rules • Customs rules accept/reject declarations based on information in the declaration • Norway first country in the world to use UN’s EDIFACT brokerage standard • Key to a corruption-free society 3
  • 4. Daily Challenges for TVINN • Accurate Computation of Taxes 3.14159263.... 4
  • 5. Daily Challenges for TVINN • Accurate Computation of Taxes • Preventing criminal activities such as mafia Gross-weight > 2 x Net- weight? 5
  • 6. Daily Challenges for TVINN • Accurate Computation of Taxes • Preventing criminal activities such as mafia • Protecting people of Norway from imports of hazardous substances 6
  • 7. Daily Challenges Translates to Testing • Accurate Computation of Taxes • Preventing criminal activities such as mafia • Protecting people of Norway from imports of hazardous substances Testing TVINN Are customs rules complete? Can they correctly detect problems in declarations? 7
  • 8. Behind the Scenes: Testing at Toll • Testing the Dynamic TVINN system Eg.: New government, new policy! 8
  • 9. Behind the Scenes: Testing at Toll • Testing the Dynamic TVINN system • League of extraordinary test managers at Toll Atle, Katrine, Astrid, Odd 9
  • 10. Behind the Scenes: Testing at Toll • Testing the Dynamic TVINN system • League of extraordinary test managers at Toll Coffee 8-digit Item Code: 0901200 • Customs rules are a combination of 10,000 Item Codes, 88 Country Groups, 934 Tax Types Country Group: EU Tax Fee Code: MV Tax Group: 1 10
  • 11. Behind the Scenes: Testing at Toll • Testing the Dynamic TVINN system • League of extraordinary test managers at Toll • Customs rules are a combination of 10,000 Item Codes, 88 Country Groups, 934 Tax Types • 13 trillion possible interactions! • Manually finding a faulty rule is like finding the proverbial needle in a haystack! 11
  • 12. Can we automate steps for test managers? 12
  • 13. Depict: A Surgical Tool to Detect Holes in Declarations • Modelling What You Are Looking For! Headphone Coffee s Cotton VAT etc. 13
  • 14. Depict: A Surgical Tool to Detect Holes in Declarations • Modelling What You Are Looking For! • Automatic Generation of Data Interactions 14
  • 15. Depict: A Surgical Tool to Detect Holes in Declarations • Modelling What You Are Looking For! • Automatic Generation of Data Interactions • Visualizing Holes (Absence of Interactions) in Thousands of Records 15
  • 16. Depict: A Surgical Tool to Detect Holes in Declarations • Modelling What You Are Looking For! Holes detected in 8400 declarations in 6 seconds! Eg. No test for Coffee and VAT • Automatic Generation of Data Interactions • Visualizing Holes (Absence of Interactions) in Thousands of Records • All this in a matter of seconds! 16
  • 17. Bird’s Eye Visualization of Large and Complex Data Visualizing Items Imported to Norway (8400 declarations) 17
  • 18. The Big Picture: Certus Private Sector In a unique dialogue to build... Public Sector Mutual Trust Synergy Solutions to Common Software V&V Problems 18
  • 19. Acknowledgements Arnab Sarkar, Institute of Engineering and Mgmt., Kolkatta Astrid Grime and Atle Sanders, Toll Members of Certus SFI and Norwegian Research Council Thank you for listening. Questions are welcome. 19

Editor's Notes

  1. Good morning, we are glad to have the minister of public administration with us today. I am Sagar Sen a researcher in the Certus Verification and Validation center of Simula. I am going to talk to you about our experiences with the Norwegian Customs and Excise dept.
  2. If you ever imported something into Norway you must have had the taste of TVINN. Everything has to go through it. Tollee...was estd. in 1988, and has been operational since 1992..20 years. Its undergoing modernization right now. Imports to Norway account to about 200 billion NOK in revenue. That represents a sizable 20% of Norway’s economy.
  3. TVINN is a sophisticated software system that processes about 30,000 customs declarations making sure they adhere to more than 100,000 customs rules. Incidentally, Norway is a pioneer in E-governance being the first country in the world to use EDIFACT brokerage. A UN standard for exchange of business message. Its in widespread today. The TVINN system is TVINN plays a key role in inching towards a corruption free society.
  4. There are three principal challenges for Toll and in particular TVINN. The first one is the accurate computation of taxes. Some errors in computing taxes could hurt the public image
  5. Second is detecting and preventing criminal activities such as mafia. For instance, if Gross-weight ? two times net weigh then something is fishy.
  6. Third challenge is to protect the people of Norway. For instance, Brevik imported explosive primer from Poland to make a car bomb. He got the fertilizer from Yara ASA. Could this pattern of imports have been automatically detected in TVINN before the disaster?
  7. So how is testing presently done for TVINN. Testing TVINN is like testing a dynamic system where the customs rules change all the time. A new government may reduce taxes on brunost but increase taxes on mozzarella.
  8. Imagine we have three types of items and four kinds of taxes. We model it as tree of classifications.
  9. We then automatically generate all pairwise interactions between items and their taxes.
  10. Are these interactions present the declarations? We analyze about 8400 declarations to observe that.
  11. In about 6 seconds, we detect holes in the declarations. There is no declaration that can test a rule for item Coffee and tax type VAT. This could be interesting as VAT is the most common form of tax. The visualization gives a compact view of dense data.
  12. We also go one step further to visualize patterns of imports into Norway from around the world. Here for instance we automatically analyze 8400 declarations to show the number of items imported to Norway from different countries. Most items are imported from China and Sweden. Some products from India. The tool is an example of a high level view for managers to observe the content of dense data.