EurTradenet, ETN Alliance

Acronym of the case:

ETN

Web address of the case:

http://www.eurtradenet.com

Country of the case:

Spain , Pan european

Posting Date:

6 December 2007

Last Edited Date:

14 February 2008

Author:

Maite Miret (NKN, New Knowledge Network SA)

Customs | SEAP | exchange

Type of initiative

Project or service
Network
Strategic initiative

Case Abstract

ETN provides a core messaging service for trading companies (importers and exporters, forwarders and logistics operators), allowing them to submit customs declarations Europe-wide by exchanging customs-related information accross borders. It is aimed at enterprises â€“traders and intermediate agents in the rough sense- with the need of moving goods through the European Customs space and forced to the associated submission of forms and declarations related with different National Customs regulations. The services are provided by the ETN Alliance, an association of CRSPs (Customs-related Service Providers) leaders in their respective markets, and with long-time experience and recognised practice excellence.

Description of the case

Domain

eGovernment

Topic

Interoperability | Services for Businesses | Infrastructure

Sector

Customs

Start date - End date

April 2003 (Ongoing)

Date operational

January 2005

Target Users

Business (industry) | Business (SME)

Target Users Description

The ETN end customers are all traders and intermediate agents in the foreign trade process, those entities dealing with movements of goods, business partners abroad and customs procedures Europe-wide. They range from SMEs that use to submit 10 declarations per month, to large companies with up to 100,000 declarations. They include from small parts of manufacturing companies, or trade agents in border places or seaports, to global logistics operators or international traders.

Scope

International

Status

Operation

Language(s)

Policy Context and Legal Framework

The International Authorities (the European Commission but the World Customs Organisation as well) are looking for harmonization in Europe, and working since years in the design of new eCustoms procedures to be deployed according to a multi-annual plan (MASP).

The introduction of the new transits system NCTS in 2003/2004, was the first time a customs procedure was based on harmonised EU Law, and the way of handling it electronically was to replace the old paper-based system, also more automised exports are implemented through AES but ... even though the customs procedures are being harmonised within the EU, they are locally realised. The differences in the way of implementing the customs procedures Europe-wide are in several areas: different content (mandatory fields but some still local-dependant contents), different technologies (from X.400 or closed VANs, to just SMTP/mail), different workflow (unload reports, cancellation functions and exit functionality), different legislation on archiving (even co-existence of electronic and paper-based processes), and different auditing (per country, per region and even per customs office in the area).

Properly managing the different fields and codes, and administrative processes all around, forces the EU to the provision of a Single Electronic Access Point or SEAP. The goal is to offer one connection point to the whole European administration network, having one standardized message format, and a unique contracting partner.

Only the feasibility study of SEAP has been completed at DG TAXUD, counting on the needs â€“and approval- of the different national customs authorities, but also getting feedback from the economic operators or private stakeholders.

Project Size and Implementation

Type of initiative

IT infrastructures and products

Overall Implementation approach

Partnerships between administration and/or private sector and/or non-profit sector

Technology choice

Standards-based technology

Funding source

Private sector

Project size

Implementation: Not applicable/not available

Implementation and Management Approach

The value proposition of ETN is based on having a strong partner company in each EU member state, a leading customs-related service provider or CRSP. To allow full coverage of the market space, this ETN partner also acts as a national gateway incorporating other local competitors serving their applications to other customers.

Each ETN partner in charge of a national gateway:
- Receives messages from and sends messages to all the end customers (its own customers or the ones from the providers integrated under the national gateway)
- Forwards messages that are meant for another country to the appropriate ETN partner gateway, and
- Processes messages that were received from partner gateways and that are meant to the local customs systems.

The ETN Alliance is currently configured by eight core partners representing Belgium + Germany + Ireland + Netherlands + Poland + Portugal + Slovenia + Spain, but there is an expansion process in progress: the rest of Eastern Europe is being incorporated by the co-ordination of the partners in Poland and Slovenia, Mediterranean countries as France and Italy are being managed in a project basis, and the Scandinavian region is under negotiation with a leading holding there.

Technology solution

Along more than four years, counting on all the local experience across Europe, ETN has defined UIDS (Unified Interchange Data Structure). It is a meta-structure, a XML message definition that contains all the data that any country might require. Trading companies fill the UIDS messages with as much data as they have, it is â€œmanagedâ€ and flows internationally through the ETN network, and each target destination extracts just the data that is needed for that country. UIDS is already available for NCTS, Exports, Intrastat and manifests or simplified procedures. Imports follows, it is a difficult task to be prepared for the new ICS to be effectively implemented within the EU, planned from 2009.

UIDS is acknowledged by the SEAP working group of DG TAXUD, that accepted the huge effort spend by ETN to inventory the differences among all European countries, and how it offers a full-featured solution that goes beyond by solving the trader authentication issue and the issue of the diversity in the message formats.

Impact, innovation and results

Impact

- Traders connected not only in a National basis with the Customs and other public administrations, but also internationaly with their business partners, those intermediate agents involved as parts of the whole foreign trade process and trans-European transit.

- Not only the big traders (manufacturers, importers and expertors, large logistic operators) but also the smaller companies (forwarders and intermdiate agents), can benefit from such a wide and knowledgeable network, value-added at the best balanced price.

- Customs-related providers now able to reach international environments, thus crossing borders to serve global customers from abroad, and being prepared for competition with the big multi-national trying to serve one global system to cover the whole European diversity.

Track record of sharing

The ETN Alliance is open to other leading customs-related providers that could support this trans-European service provision in their own territory. By collaboration with neighbourg companies the whole Europe should be conveniently covered.

ETN has also strategic agreements for collaboration with both global private entities (systems and logistics integrators, adding the ETN value-selling to their own service portfolio) and public bodies and regulatory administrations (European and world-wide).

Lessons learnt

Lesson 1 - Best balance between public and private service provision in the customs sector, between European harmonisation and local diversity that will remain, thus between local performance at the National level (massive sales and customer support) and global support (common standards, promotion and alliances).

Lesso 2 - Need for strong business commitment with the medium and long-term. Even though there are still uincertainties in new electronic customs procedures effective deployment Europe-wide, and there is a late and non-homogeneous adoption of regulations ... the ETN partners must keep working as an Alliance. It should keep pushing their customers at the local level to enter into more ambituos and wider initiatives, and accesing to the global decision-making level.

Lesson 3 - Need of having a high & early voice as representatives of a group of crucial stakeholders in foreign trade and customs handling, complementary to traders + forwarders + couriers. AS a sector alliance, ETN must have a stable and active participation at the specialised discussion groups working in the redesign of electronic customs Europe-wide and globally.

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