IMPLEMENTATION OF ELECTRONIC CARGO TRACKING SYSTEM (ECTS)

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1 KENYA REVENUE AUTHORITY. IMPLEMENTATION OF ELECTRONIC CARGO TRACKING SYSTEM (ECTS) PRESENTATION TO WCO TECHNOLOGY & INNOVATION FORUM, Smart Borders, Enabling Technologies. CAIRO, EGYPT 2 4 November, /9/2010 1

2 INTRODUCTION ISO 9001:2000 CERTIFIED. Kenya Revenue Authority Vision; To be the leading Revenue Authority in the world respected for its professionalism, integrity and fairness. Reforms Programme Vision; To be a modern and fully integrated Revenue Administration by 2008/09. 11/9/2010 2

the world respected for its professionalism, integrity and fairness.

3 INTRODUCTION KRA has undertaken to improve its service delivery by expanding the coverage and use of the Electronic Cargo Tracking System (ECTS). ECTS project is one of the initiative under the Revenue Authority Reforms and Modernization Programme (RARMP). 11/9/2010 2

4 INTRODUCTION This is in line with KRA s 3rd Corporate Plan Authority s strategic theme that is to develop a dedicated professional team embracing modern processes and technologies to deliver customer focused services that enhance compliance and revenue collection. ECTS long-term vision is the development of a harmonized simplified process, which facilitates the movement of cargo internationally, assist in the enforcement of Tax laws and maximize revenue collection. 11/9/2010 2

5 INTRODUCTION What are the ECTS objectives? Cargo tracking requirements - Knowing the location of the cargo consignments along the supply chain. Knowing seal status at any given time. Real time tracking management - Enable KRA to monitor vehicle/trucks transporting cargo efficiently along the gazetted routes. 11/9/2010 5

along the supply chain. Knowing seal status at any given time.

6 INTRODUCTION What are the ECTS objectives? Controls purpose; Enforcement of stipulated regulations Prevention of dumping/diversion. For planning purposes; Assist in identification of trends in the supply chain hence ability to make informed decision. 11/9/2010 6

7 INTRODUCTION What are the KRA s system expectations? Cargo security; Ability to secure cargo under KRA s control; Raise an alert in an event of violation. Monitor cargo along the supply chain; Give cargo status; Give geographical location; Any pertinent cargo information; Record cargo events from source to destination. 11/9/2010 7

8 INTRODUCTION What are the KRA s system expectations? Have intervention functions; Ability to immobilize a truck in an event of violation; Tamper proof features; Detect any cargo tampering; Pass alert notifications to the Control Room in real time; 11/9/2010 8

event of violation; Tamper proof features; Detect any cargo

9 INTRODUCTION ECTS COVERAGE All cargo to and from customs control areas Transit, CFS (incl. un-entered goods), EPZ, MUB, Exports, Transit Godown, ICD All cargo to Bonded warehouse, customs warehouse etc All wet cargo on transit and re-exportation (R300) Excisable goods For exports and within controlled areas Goods moving to privileged organizations AFCO, NAS, duty free shops etc The visibility will be available for the entire region (ideally we will combine GPRS with satellite Failover to provide complete coverage at least cost) 11/9/2010 9

and re-exportation (R300) Excisable goods For exports and within controlled areas Goods moving to privileged organizations AFCO, NAS,

10 INTRODUCTION What is Electronic Cargo Tracking System?. It is a multi-tiered system developed to electronically monitored goods under transit, exports and KRA s control as it moves along the Kenyan supply chain from source to destination. The ECTS offers real time cargo tracking solution. 11/9/

under transit, exports and KRA s control as it moves along the Kenyan

11 IMPLEMENTATION. Implementation of Electronic Cargo Tracking System. The ECTS is being implemented using Radio Frequency Identification (RFID) and GPS/GPRS technology. All trucks/vehicles, tankers and containers carrying goods on transit, exports & under KRA s control are fitted with a tracking device and electronic seal which sends the seal status, truck location and any violation information to KRA on real time basis. 11/9/

All trucks/vehicles, tankers and containers carrying goods on transit, exports & under KRA s control are

12 COMPONENTS Electronic Cargo Tracking System Components. Tracking reader (GPS receiver, RFID reader & GPRS/GSM modem). Electronic seal. ECTS software platform. The system operate on the existing KRA ECTS software platform. 11/9/

modem). Electronic seal. ECTS software platform.

13 COMPONENTS Electronic seal. The electronic seal is reusable 1000 times and a useful life of 3-5 yrs depending on the usage. 2-Way Encrypted communication to tracking reader. Events memory and configurable user parameters 11/9/

14 Reader in Cabin RF Link OPERATION Hatch Sensor Valve Sensor 11/9/

15 BUSINESS MODEL 11/9/

16 SATELLITE (GPS) Datareader GPS Receiver GPRS Dataport OPERATION Real time tracking system dry cargo. GPRS GPRS/Satellite Network Control Centre Status of Electronic Seals known in Real time. Any attempt to deviate from the gazetted routes is noted immediately. Location of goods can be monitored to destination. Location of trucks can be monitored on real time Electronic / Intelligent Seal 11/9/

Any attempt to deviate from the gazetted routes is noted immediately.

17 OPERATION TRACKING. Once the seal is armed the cargo is monitored from start to destination point. The transit cargo is expected to move along the gazetted and geo-fenced route. Any violation including moving outside the geo-fence / tamper will be detected on real time (immediate) from the control room Alerts can also be received via or sms The Rapid Response Team (RRT) deployed at strategic points and equipped with radio communication system intervene in case of violation. Future enhancement include automatic bond cancellation and regional integration. Exploring the immobilizer effect. 11/9/

Any violation including moving outside the geo-fence / tamper will be detected on real time (immediate) from the control room Alerts can also be received

18 OPERATION Data programmed in the E-seal. The seal is programmed with the user data and does record all events in its memory The user data in the e-seal are; Entry number (T812 & E100). Truck & trailer/tanker registration number. Container number. Cargo source. Cargo destination. Bond number (where applicable). All previous events. 11/9/

user data in the e-seal are; Entry number (T812 & E100).

19 BENEFITS Other stakeholders. Fleet management system for Fleet managers. Operational tool for business analysts and logistics managers. Used as an anti theft device for truck and cargo. Improve level of cargo security. Improve cargo visibility and status to all stakeholders. 11/9/

Used as an anti theft device for truck and cargo.

20 BENEFITS Other stakeholders. Eliminate of manual processes along the supply chain. Eliminate need for physical escorts & movement of trucks in convoy. Simplification of transit trucks licensing process. Quick security bond cancellation. Lower insurance premiums by the bond guarantors. 11/9/

Eliminate need for physical escorts & movement of trucks in convoy.

21 BENEFITS Other stakeholders. Improve truck turnaround times and accountability to the transporters. Higher profit margins. Lower maintenance costs. Lower fuel consumption due to a reduction in side trips. 11/9/

22 BENEFITS KRA & other Governmental Agencies. Maximize revenue collection due to; Anti-dumping/diversion of transit, export, excisable export goods; Fast movement of goods along the Kenya supply chain; Elimination of non-tariff barriers to trade and traffic; Reduction of corruption cases and promotion of integrity. 11/9/

23 BENEFITS KRA & other Governmental Agencies. Increased the level of security of monitored goods. Fast movement of goods and conveyances along the corridors. Improve Kenya s competitiveness as preferred port. Improve voluntary levels of compliance Low cost of compliance 11/9/

24 BENEFITS KRA & other Governmental Agencies. Use of information to identify compliant stakeholders in the industry. Platform for exchange of information with other Governmental Agencies. Develop improved risk assessment systems. Serve as data sources and as a data exchange tool for Regional Cargo Tracking. 11/9/

25 Installation & Registration requirements. Kenya Revenue Authority Roles. Configure the ECTS hardware. Inspect and approve the installed system. Check on compliance. Monitor the cargo. Enforce tax laws. 11/9/

26 Business challenges. RISKS & Mitigating Factors. Resistance embracing by users. (sensitization) System knowledge and commitment among the users. (training) Vendor management Numbers/ quality (strict Balance of quality/ charge) ICT challenges integration (source code). 1. Vendors challenges. (SLA and Compliance regulation) Hardware failures, Systems integration. Maintenance and capacity challenges 2. Stakeholders Resistance and costs consideration (TEP) 11/9/

27 CONCLUSION Other stakeholders will benefit greatly with the full implementation of the Electronic Cargo Tracking System. The ECTS provide KRA with a comprehensive solution for the monitoring of transit cargo, its status, location and other pertinent information about it in real time, hence securing the Supply chain. 11/9/

28 THANK YOU FOR YOUR ATTENTION. Q & A 11/9/

Electronic Cargo Tracking System (ECT-1)

A D VA N C E D F L E E T M A N A G E M E N T S Y S T E M S Electronic Cargo Tracking System (ECT-1) The UTrack ECT-1 system is ideal for monitoring and managing any fleet size of Tankers or Cargo Trucks