BT Group plc · LSE:BT.A
BT — Investor Presentation (2010)
86 slides from BT's investor presentation, Dec 26, 2010
Slide 1: BT Smart Customs
BT Smart Customs Customs clearance made easy
Slide 2: Welcome and introduction
Welcome and introduction Mike Routh Sales Manager, Air & Logistics Programme, BT Global Services
Slide 3: Agenda
Agenda 10.30 Registration and refreshments 11.00 Welcome and introduction Mike Routh, Sales Manager, Air & Logistics Programme, BT Global Services 11.10 Legislation update Martin Goodwin, Customs and Air Logistics Consultant, Good Data Ltd 11.30 Electronic security requirements and their impact on t
Slide 4: Agenda
Agenda 12.00 The carrier’s view Andy Burrows – Independent Consultant, A.B. Consulting Services Ltd 12.30 Lunch 1.30 BT Smart Customs Ian Grant, Business Manager, Air & Logistics Programme, BT Global Services 2.30 Benefits of the approach outlined today Guy Thompson, CCS-UK User Group 2.45 Panel dis
Slide 5: Legislation update
Legislation update Martin Goodwin Customs and Air Logistics consultant, Good Data Ltd
Slide 6: The EU Multi Annual Strategic Plan (MASP)
The EU Multi Annual Strategic Plan (MASP) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 The Security Amendment Legislation Modernised Customs Code Implementing Provisions NCTS SAD Harmonisation ICS Operational Automated Import System Systems NCTS (TIR) NCTS (Safety & Security) ECS Phase 1 ECS Ph
Slide 7: Import Control System
Import Control System • Governed by EU Regulation 648/2005 - The Security Amendment • Implementing Provisions (EU regulation 1875/2006) • Legislation sets out new security requirements for goods entering the EU, notably: • Empowers member states to require declarations for security purposes • Declar
Slide 8: The Modernised Customs Code
The Modernised Customs Code • Adopted April 2008 • Sets out Customs procedures for the future • Removes national and local simplifications (will allow EU-wide simplifications) • Requires electronic trading • Aims to create simpler and more coherent rules across the EU • Requires inter-operability of
Slide 9: ICS - key features
ICS - key features • Legally the Carrier is responsible for ensuring ALL goods onboard are covered by an ENS, but with the carrier’s knowledge and consent the ENS can be made by an exporter or agent • Diversion Notification • Arrival Notification with a reference to ENS for all cargo onboard – eithe
Slide 10: ICS - national variations
ICS - national variations ENS EU specification Diversion EU specification Arrival Notification National Administration Summary Declaration National Administration Control Notification National Administration
Slide 11: ICS - Entry Summary declaration
ICS - Entry Summary declaration • Declarations apply to all imports, transhipments and FROB • Declaration is called an ENtry Summary declaration (ENS) • Declaration to first office of entry into the EU prior to arrival • Item level declaration: • Air – (Long haul) at least four hours prior to arriva
Slide 12: ICS – ENS data elements
ICS – ENS data elements Annex 30A data Unique consignment reference Transport document number Consignor Consignee Flight Routing details Carrier Person lodging the ENS Commodity item level detail Notify party ID and nationality of transport Conveyance reference number Country(ies) of routing codes F
Slide 13: ICS – Diversion Handling
ICS – Diversion Handling • Only required if diversion is to another member state which is not on the original ENS itinerary • Diversion request is made to the original first port of entry • Can be based on the ‘unique key’ (flight number/date) or MRNs • The MS forwards the risk for the movement to t
Slide 14: ICS – Arrival Notification
ICS – Arrival Notification • Exact process depends on MS • Possible to arrive the ‘unique key’ (flight/date) or by MRNs • May be part of an existing process, or a new one • Advises Customs that the goods have arrived • Allows Customs to advise the carrier about controls
Slide 15: ICS – Summary Declaration
ICS – Summary Declaration • This is the existing process where goods are to be placed in temporary storage • Adapted to make reference to the ENS, or for the safety and security data to be included • Implementation depends on the member state: • UK will not change their Summary Declaration procedure
Slide 16: ICS – summary
ICS – summary • Legislation in place • Transition phase expires 31 December 2010 • 2011 onwards - ICS mandatory • Enforceable via fines mechanism • Complex information processing requirements • Item level data required in declarations • Across 27 + countries
Slide 17: Electronic security requirements and their impact on the freight forwarding community
Electronic security requirements and their impact on the freight forwarding community Marco Sorgetti Director General of CLECAT
Slide 18: The CLECAT menu
The CLECAT menu • CLECAT snapshot • LSP: what is it? Value-added services • Customs and service to services • Advance information issues • Dual filing, advantages and constraints • ECS and ICS open issues • Conclusions
Slide 19: CLECAT at a glance
CLECAT at a glance • CLECAT is a non-profit association established in Belgium. It is registered in the EU register of interest representatives • CLECAT has 26 members with EU and continental coverage: • Freight forwarders and logistic service providers, national federations and confederations • Cus
Slide 20: CLECAT at a glance
CLECAT at a glance • The type of companies • Global players • SMEs and regional operators • Small & family businesses • Our numbers (full members only): • Over 19,000 companies • Over one million direct FTEs • Business coverage: • ≈ 90% of customs, 70% maritime, 90% air, 50% road and rail operations
Slide 21: LSP as a trade facilitator
LSP as a trade facilitator • Logistics services has evolved: today LSPs are the main ‘facilitator’ of trade: • By using all transport modes to their full potential (road transport still accounts for some 80% of the total) • By providing a direct link between production and markets, with increased ef
Slide 22: LSP as a trade facilitator
LSP as a trade facilitator • By providing a practical ‘single window’ for all those who wish to use LSPs’ services • By beating inflation and enhancing return on investments: • Logistics costs have gone down in the last 25 years from over 13-14% of delivered goods to 5-7% or less in recent times Air
Slide 23: Enabling SMEs to grow in foreign markets
Enabling SMEs to grow in foreign markets The challenge The approach • Distribution through • Partner with logistics wholesalers eats into margins service provider to limit • Current infrastructure does wholesalers’ involvement not allow enough consumers and reach more to be reached consumers Grow by
Slide 24: CLECAT, Customs and services
CLECAT, Customs and services • CLECAT was created immediately after the Treaty of Rome, with an identified Customs agenda • CLECAT followed the creation of a Customs Union from its very inception in 1968 • The MCC and e-Customs work has been central in our policy remit since its inception
Slide 25: CLECAT, Customs and services
CLECAT, Customs and services • The idea that e-Customs will bring specialised Customs service providers to an end is wrong • Logistics and Customs service providers are a very large market for IT and communication services • Is the idea of ‘services to service industry’ more or less important than ‘
Slide 26: Advance information: where are we?
Advance information: where are we? LSPs and • ICS (Import Control System) for security: Customs • Entry summary declaration, single filing submitted by carrier, service or a third party ‘instead of’ or ‘on behalf of’ the carrier providers are often made • Data elements and person responsible for lod
Slide 27: Single or dual filing?
Single or dual filing? • EU approach for ICS security is based on single filing concept • Carrier (others only with its knowledge and consent) must submit data • third party lodgement was originally discouraged • Dual or multiple filing is not even envisaged by June 2013 (date of implementation of M
Slide 28: Single or dual filing?
Single or dual filing? • COM publicly admits (Prague, 25 Feb) that Reg. 648 was conceived when ‘ideas were not so clear yet’ • US understands that risk assessment without dual filing cannot work properly, EU is becoming aware of the same problem • Yet COM is contemplating requiring carriers to provi
Slide 29: G2G information: a dream?
G2G information: a dream? • This is a WCO ‘old friend’: administrations show no enthusiasm for G2G, they prefer the old ‘us’ (Customs) and ‘them’ (trading community) • At present ENS information is not exchanged between customs’ offices (customs office of first entry, customs offices of subsequent e
Slide 30: G2G information: a dream?
G2G information: a dream? • A central repository would solve a lot of practical constraints, but: • Prospects under the MCC are uncertain; discussion still ongoing • Even ‘office of lodgement concept’ (declaration lodged at customs office other than the customs office of first entry) may not be poss
Slide 31: AIS and centralised clearance
AIS and centralised clearance Our view is that Centralised Clearance is in a way the epitome of the Customs Union and the single Customs area, but …
Slide 32: AIS and centralised clearance
AIS and centralised clearance • Full centralised clearance seems to be pushed out into the future (transit is not in the scope): • Exchange of information between supervising customs office and customs office of presentation implies well functioning G2G information exchange • Doubts about government
Slide 33: ECS issues
ECS issues • Standard ECS (including security), which we have now is, in short, an exchange of information between the customs office of export and customs office of exit, but • There is a big issue about open movements still pending • AES (Automated Export System) is an exchange of information betw
Slide 34: ECS issues
ECS issues • Within centralised clearance… same picture? • Some doubts about governments’ investments still exist • Will system be able to cope with the growth in volume (as a result of the possible abolition of STC facilitation)?
Slide 35: The weakest link
The weakest link • Interconnectivity ICS/ECS/NCTS was not foreseen, as this grew like a cluster without being seen as a cluster. A decision is pending, but not seen as a priority. • Possible consequences: duplications, errors, mismatch resulting from unnecessary complication • e.g. there may be situ
Slide 36: Conclusions
Conclusions • IT is not a facilitator, but it is the enabler • Without dual filing the issue of data protection and confidentiality of commercially sensitive data remains unresolved • Without proper G2G information exchange (and the necessary investments) the functioning of the system may be brought
Slide 37: Conclusions
Conclusions Suggestions: • The experience accumulated by the trade should be treasured by modifying some aspects of the incoming legislation • IT service providers should design the architecture of their products for all types of users
Slide 38: Thank you
< european Thank you Pc LECAT ion for forwarding, transport, logisti www.clecat.org
Slide 39: The carrier's view
The carrier’s view Andy Burrows Meeting EU Legislation for Advance Reporting Requirements
Slide 40: Air Cargo: an Evolving Business Model
Air Cargo: an Evolving Business Model Airline CEO issues with Air Cargo: • 10% of airline industry revenues • But 35% of the value of goods internationally is traded by air • IATA: 2008 – air cargo tonnage declined 5%; 2009 – 15% • But – yields declined by 40%+ • US demanding 100% cargo screening by
Slide 41: Air Cargo: It's a Global Business
Air Cargo: It’s a Global Business Airline issues with advance reporting requirements: • Consistency of treatment – region-by-region • Big risk of: • US/Canada • Europe • S.E. Asian countries • Each implementing a different regime ... • IATA airlines already spend USD $5.9 billion/year on security
Slide 42: Air Cargo: It's a Global Business
Air Cargo: It’s a Global Business Airline issues with customs reporting requirements: • Consistency of treatment – region-by-region? • US proposal to drop known shipper programme after August 2010 • UK intention to keep known shipper and selective screening • IATA view: 100% screening is generally i
Slide 43: Major Carriers: Data Entry Options
Major Carriers: Data Entry Options IT Service Provider Carrier Carrier GHA Carrier options for populating IT Service FAX Provider System Forwarder • Send data directly • Send data to GHA for onward transmission • Receive data via fax/email and send on E-mail
Slide 44: Small Carriers: Data Entry Options
Small Carriers: Data Entry Options IT Service Provider Carrier GHA FAX Forwarder Carrier options for populating IT Service Provider System • Send data to GHA for onward transmission GHA E-mail
Slide 45: Keep cargo – IMP message flows
Keep cargo – IMP message flows
Slide 46: Airline requirements from IT Service Provider
Airline requirements from IT Service Provider • Secure, confidential, robust, reliable • Certainty of lodgement • Provide the airline with the ability to identify where and when a third party ENS lodgement has been achieved • Arrival messages - to support proof of entry • Enable airline to provide a
Slide 47: Airline requirements from IT Service Provider
Airline requirements from IT Service Provider • EU-wide implementation – to give a single technical interface, from carrier IT system to one services supplier Trader Customs Customs Trader Office Office Central Services National Reference National System Data System External National Common National
Slide 48: Airline requirements from IT Service Provider
Airline requirements from IT Service Provider • Central database, available for enquiry, enables reconciliation and resolution of lodgement and tracing issues • Flight manifest details • Consignment details at MAWB and HAWB level – and Item level • Routing data • Allows airline/ground handler to wor
Slide 49: Entry Summary Declaration: Send ENS to Customs
Entry Summary Declaration: Send ENS to Customs • Standardised electronic ICS message defined by EU (same data in all the MS) but format defined at national level • Sent to: • Office of first Entry • Prior to arrival (legal time limits!) • 4 hours prior to arrival for long haul • Prior/at departure (
Slide 50: Entry Summary Declarations: Customs Register ENS
Entry Summary Declarations: Customs Register ENS • Customs generate Movement Reference Number (MRN) upon registration of the ENS • Confirmation of ENS registration communicated electronically by customs to: • person lodging ENS and • carrier declared in ENS (if connected to ICS and if EORI number de
Slide 51: Scenario: Forwarder Holds Carrier Consent to Make ENS Entries
Scenario: Forwarder Holds Carrier Consent to Make ENS Entries Make • Forwarder will obtain the Unique Key information and EORI# from the carrier •- Using this information, forwarder will: • compose and submit the ENS to National Customs ICS System • at the first airport of arrival into Europe • Cust
Slide 52: Scenario: Forwarder Holds Carrier Consent to Make ENS Entries
Scenario: Forwarder Holds Carrier Consent to Make ENS Entries Make • Forwarder will send FWB and FHL including the MRNs to the carrier - • which may also include the declarant’s EORI number to indicate they intend to undertake third party ENS • Upon arrival, the carrier then provides customs with th
Slide 53: AEO: Authorised Economic Operator
AEO: Authorised Economic Operator • Authorised Economic Operators can benefit from entering a reduced data set in the ENS and subject to less inspections • The ‘specific circumstance indicator’ ‘E’ shall be declared (The system knows which party is AEO status and which are not.) • The person lodging
Slide 54: IATA Airline preparations
IATA Airline preparations • IATA has issued a Notice of Amendment for changes to its Cargo Interchange Message Procedures (CIMP) • The key changes related to the EU requirements are: • additional customs information identifiers • a more flexible Other Customs Information (OCI) line to include new in
Slide 55: Airline Requirements from IT Service Provider
Airline Requirements from IT Service Provider Support all forms of airline cargo operations • Help manage flight changes, overbooking splits, flight diversions • Provide multiple distribution channels, including internet: • secure, confidential, robust, reliable • certainty of lodgement • provide th
Slide 56: Airline Requirements from IT Service Provider
Airline Requirements from IT Service Provider • EU-wide implementation – via one technical interface • Central database available for trade enquiries enables reconciliation and resolution of any lodgement, tracking, or re-routing issues
Slide 57: Lunch break
BT@ Lunch break
Slide 58: BT Smart Customs
BT Smart Customs Ian Grant Business Manager BT Air Logistics
Slide 59: BT Air Logistics
BT Air Logistics • Cargo Community System – UK (CCS-UK ) • Launched in 1994 • Community-based solution enabling UK traders to clear imports through HRMC • National Export Service (NES) • Launched in 2003 • Enhancement to CCS-UK covering new export requirements • Standard Messaging Service (SMS) • Co
Slide 60: History of the development
History of the development • Initial discussions began in 2007 • Initial meeting September 2007 • Initial funding granted January 2008 • Attended IATA World Cargo Symposium March 2008 • Demonstrator launched September 2008 • Attended TIACA Air Cargo Forum November 2008 • Held a series of presentatio
Slide 61: Principles of BT Smart Customs
Principles of BT Smart Customs • Designed to meet the requirements of ICS • Initial focus on EU ICS • Multimodal • Community-based structure • Reuse as much existing information as possible • Automates as much as possible • Allows for manual intervention • Worldwide access • Designed to minimise fin
Slide 62: Design of BT Smart Customs
Design of BT Smart Customs • Central database populated by: • Regular download of schedule information • CargoIMP messages e.g. FWB, FHL, FFM, FBL • Also other means e.g. XML • Users and trusted partners can select consignments to declare • Will accept ENS declarations and flat file data entry • Mes
Slide 63: BT Smart Customs Functionality
BT Smart Customs Functionality • Part shipments and short shipments • Diversion • Handling of trucks • Download of declaration data to GHA, forwarder etc. • View/print/email of ENS for fallback
Slide 64: Populating the BT Smart Customs Database
Populating the BT Smart Customs Database BT Smart Customs Database Schedule Booking Flight Schedule Carrier Manifest Other Data AWB AWB AWB AWB AWB AWB 30A 30A 30A MRN 30A MRN AWB Data Agent HAWB Data Other Data HAWB HAWB HAWB 30A MRN MRN The CCS Cargo Community User Group Slide 64
Slide 65: Generating the Entry Summary Declaration
Generating the Entry Summary Declaration BT Smart Customs Database Flight Schedule Request ENS Declarant AWB AWB AWB AWB AWB AWB 30A 30A 30A MRN 30A MRN HAWB HAWB HAWB 30A MRN MRN ENS Process ENS The CCS Cargo Community User Group Slide 65
Slide 66: Generating the Entry Summary Declaration
Generating the Entry Summary Declaration BT Smart Customs Database Flight Schedule Request ENS Declarant Response AWB AWB AWB AWB AWB AWB MRN MRN HAWB HAWB HAWB MRN MRN ENS Process ENS MRN MRN The CCS Cargo Community User Group Slide 66
Slide 67: Presentation (Arrival Notification) at Office of First Entry
Presentation (Arrival Notification) at Office of First Entry BT Smart Customs Database Request ARN Response Flight Schedule Status Status Declarant Status AWB AWB AWB AWB AWB AWB Status MRN MRN MRN MRN MRN Status Status Status Status HAWB HAWB HAWB MRN MRN MRN Process Risk ARN Analys
Slide 68: BT Smart Customs Demonstration
BT Smart Customs Demonstration
Slide 69: Further Functionality
Further Functionality • Consignment Search and List • Arrival Processing
Slide 70: Arrival Processing
Arrival Processing • Member state discretion • When FSU-ARR, FSU-RCF or MVT message received • Ignored if outside the EU • Triggers flight arrival at FPoE • Other process dependant on individual MS requirement • If not received • ARN • Divert • View • Up to six responses could be received
Slide 71: Further Functionality
Further Functionality • Consignment Search and List • Arrival Processing • Email Notification
Slide 72: Further Functionality
Further Functionality • Consignment Search and List • Arrival Processing • Email Notification • Function Access Control • Tick box list of all screen • Data Function Access Control • Read only access
Slide 73: Timescales
Timescales • Core application ready • Message connectivity • Most messages implemented • FBLs before the end of next month • Arrivals by June • Customs Connectivity from June • Full user trials from end of July
Slide 74: Tariff
Tariff • Fundamentally based on existing tariff structure • Recurring quarterly charge • Usage charge based on successful ENS • Usage charge per line item • Fixed tariff for small users • Separately negotiated for large organisations
Slide 75: Summary
Summary • Large development • Fully compliant with ICS • Automated declarations • Supports concept of Dual Filing • EU and beyond
Slide 76: Thank you
Thank you
Slide 77: Benefits of the approach outlined today
Benefits of the approach outlined today Guy Thompson CCS-UK User Group
Slide 78: Benefits of the approach outlined today
Benefits of the approach outlined today Managed system • Most EU member states have different technical interfaces • Not all specifications ready • Only some test systems presently available • Technical interfaces change and develop and will be a very significant overhead to keep abreast of the chan
Slide 79: Single system
Single system • User staff trained on a single system • Common look and feel and access method • Functionality and process is the same for all MS • Centralised control ‘desks’ can manage exceptions • Other business partners share the same service and can have delegated responsibility • Customers’ te
Slide 80: Single system
Single system • Changes to the customer ‘network’ • Simple to extend to another country • Diversion and Arrival Processing • Differs widely across the EU • All information on the system wherever the aircraft/vessel arrives
Slide 81: BT Smart Customs User Group
BT Smart Customs User Group • Process of putting together • Legal structure • Representation • Role • Roadmap for future direction • Monitoring performance
Slide 82: Why Smart Customs?
Why Smart Customs? • History of working collaboratively with business experts • Operate on a community basis and track record of cost containment • Provide robust systems • BT as a CSP will have a fully engineered interface to ICS in UK • Will have connections to 27 + countries • System undergoing u
Slide 83: Why Smart Customs?
Why Smart Customs? • System has high level of functionality • Central database built up as information about shipments is available • Enables different sources of data capture and input dependant on how freight forwarder/carrier wishes to work • Electronic notification of significant issues • Comple
Slide 84: Why Smart Customs?
Why Smart Customs? • Addresses limitations in the implementation of the EU legislation, e.g. • Dual filing • Ability to cross-refer between MRN to HAWB, MAWB and Item • No single European access point • Variation in arrival processing
Slide 85: Smart Customs solution produced by a community approach
SMART CUSTOMS SOLUTION PRODUCED BY A COMMUNITY APPROACH
Slide 86: BT Smart Customs
BT Smart Customs Customs clearance made easy