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

1. Modernising New Zealand’s Border
Clearance
“The Joint Border Management System (JBMS)”
Channa Jayasinha
Director, Border Change Programme & Joint Border Management System
Ministry for Primary Industries
www.mpi.govt.nz

2. A modern global border system

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
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4. Ministry For Primary Industries (MPI) role
in 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. 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 $5,400,000
Didymosphenia 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. More recent
incursions
Queensland Fruit Fly
• Recent find of a lone male fruit fly
in Auckland
•Caught in one of 7,500 surveillance
traps around Auckland
•Threat to $3 Billion Horticultural
export sector
• Response lasted just over 2 weeks
at a cost of $2M
Psa Kiwifruit virus
• $1 Billion export-earner
•37% of Kiwifruit orchards infected
• It will cost the industry $885M over
the next 15 years
• Reputational damage to NZ
Horticulture industry

7. What Customs and MPI do at the Border

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. 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. 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. The solution

12. JBMS Tranche 1
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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. NZ Border Sector System Interfaces

15. What are we building? – A Trade Single Window
Tranche 2
NZCS
MPI:
Biosecurity
Food

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
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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
Gateway
KEY: Tranche 1 deliverable Tranche 1 partial deliverable Tranche 2 deliverable Existing System requiring integration

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

20. 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: Qualitative
Agility 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

21. 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.

22. Business Transition
May June Jul Aug Sept Oct Nov Dec Jan 2013 Feb Mar Apr
System
delivery
milestones 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

23. Stakeholder Transition
May June Jul Aug Sept Oct Nov Dec Jan 2013 Feb Mar Apr
System
delivery
milestones 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

24. 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
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25. Key learning's 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.

26. Thank you
Channa.jayasinha@mpi.govt.nz
www.mpi.govt.nz