Joint border management system contract signed

A joint border management system (JBMS) designed to significantly improve border processing for New Zealand traders and travellers, and to make border agencies more efficient, will be the result of a contract signed today by New Zealand Customs and information technology provider, IBM [NYSE: IBM].

The JBMS brings together the two border processing systems previously run independently by Customs and the Ministry of Agriculture and Forestry (MAF) – CusMod and Quantum respectively.

Last month’s Budget announcement included a $75 million appropriation to cover the first stage of the system’s development. Stage one will include what is called the Trade Single Window (TSW). Ultimately, TSW will enable exporters, importers and others involved in trade to complete all their border compliance requirements, online through a single point of electronic contact.

Customs Acting Comptroller, John Secker said JBMS was a major strategic asset for New Zealand.

“As well as meeting trade and industry requirements, it also serves our needs across border security, biosecurity, intelligence related to smuggling, and facilitating legitimate travel,” he said.

“We are very pleased to be joined closely with MAF on this and JBMS will ensure we can have more effective and efficient linkages with other government agencies and with industry, to the benefit of New Zealand’s economy and its security.”

Mr Secker said it was a large and complex project that would be very carefully managed. “We have already begun an ongoing process of consultation with industry and other government agencies to ensure that the system is as effective and beneficial as it can possibly. It’s a huge opportunity for all of us.”

It is anticipated that the JBMS will be built and implemented in two stages over a four year period.

MAF’s Director-General Wayne McNee says the international border management environment is constantly evolving and agencies involved in border activities need to move with it.

“JBMS is part of that evolution and MAF is pleased to be working with Customs and IBM to ensure the needs of industry and government are met.”

Kerrie McGrath, Managing Partner, IBM Global Business Services New Zealand, said IBM was very pleased to become the prime systems integrator to develop New Zealand’s Joint Border Management System.

“We bring to this project our specialist expertise in risk and intelligence analytics, and our proven experience in customs and border management. This is combined with the consulting and delivery capabilities of our local team, and our partner Datacom.”

Background information

What is JBMS?

 · The JBMS brings together the two border processing systems previously run independently by Customs and MAF – CusMod and Quantum respectively. JBMS will be a collection of shared services, mostly hosted by Customs, to support the clearance of people, goods, and craft across the New Zealand border.

· The JBMS includes the ‘Trade Single Window’ – a facility that will ultimately enable importers, exporters, and other supply chain participants to electronically submit compliance-related information required for the clearance of goods and craft once, rather than to multiple agencies.

·  The Joint Border Management System will provide Customs and MAF with modern technology to:

        - receive and process enhanced electronic cargo and passenger information

       - simplify and better manage border clearance processes for trade and travel;

       - target high-risk and facilitate low-risk people, goods, and craft;

       - enhance linkages to other government agency systems;

       - improve coordination of resources across agencies; and

       - contribute to improved logistics management in the supply chain.

Why is it necessary?

· The CusMod (Customs) and Quantum (MAF) operational computer systems are over 12 years old and both agencies were due to replace them to maintain services and the ability to respond to a constantly evolving international border management environment.

· The JBMS will move agencies away from fragmented separate processes that result in duplication of effort, to a far more cohesive system that shares processes, data, and technology between border agencies and industry.

What are the benefits?

· Agencies are required to work smarter and get better results with less funding. Investing in JBMS will support us to provide more efficient services to the trade and logistics industry, and improve our ability to protect New Zealand through better risk identification, threat prediction and trend monitoring.

· At the core of the system is a risk management framework that will use sophisticated risk assessment and pattern analysis technologies to provide Customs and MAF with smarter targeting of people, goods, and craft crossing the border. This will result in faster clearance for those who comply and more attention being paid to those who do not.

· The Joint Border Management System will help Customs and MAF to give trading partners proven assurance about the safety and compliance of New Zealand’s exports.

·  The Joint Border Management System will help speed up the clearance of low-risk international travellers, thereby enhancing the passenger experience.

What are the impacts?

·  Implementation of the new Joint Border Management System will involve changes to the data required for the clearance of craft and cargo, and to border processes. Customs and MAF are consulting with industry on proposed changes via a range of forums, including a Trade Single Window Industry Reference Group.

·  Implementation of the new Joint Border Management System will require an increase in fees recovered from importers and exporters for cargo clearance services. Customs and MAF have previously consulted industry on the likely costs and potential recovery options, and will consult further as the costs and new clearance processes are confirmed.

How was IBM selected?

· Customs and MAF received five responses to a Request for Proposal issued to the ICT industry in 2010. The evaluation process included conducting over 50 discovery and due diligence meetings with the short listed vendors; and the completion of 15 reference checks with agencies in Australia, Canada, New Zealand, the United Kingdom and the USA. 

· Audit New Zealand acted as independent quality assurer for the selection process.