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The Client Export system

In 2005, the Client Team did research on possible improvements in the domain of the export procedures and inspections. Extensive interviews were held with exporting companies. The situation and opportunities in the inspection agencies were mapped on the needs of the industry. Looking for possible ways to fulfill the needs of both industry and inspection agencies the Client Team allso investigated the solutions in other exporting countries. This resulted in a proposal for the program Client Export.

Toelichting bij dit beeld
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    CLIENT Export commenced with extensive interviews at exporting companies.
    In this way, the point of view of the companies was used to review the processes and requirements of the authorities.

    Tjeerd:”We invited some exporters, and together with them, we made sure the real problems are mentioned and submitted in the Client system. We made sure that all of us will get a properly working sytem that’s suitable for business users.

    In these interviews we focussed on two important themes:

    Firstly: the process of requesting and issuing an export certificate by the Dutch authorities. How do inspections take place?
    Where are bottlenecks and what can be improved?

    Secondly: The complete export procedure for products and the receiving countries.
    What other procedures take place and what can be improved?
    Are there opportunities for improving the complete process?

    This is a veterinary export certificate. Each product-country combination has it’s own model. The certificate shows all the requirements consignments should meet to be accepted. In order to confirm this, The Food and Consumer Product Safety Authority needs safeguards for all requirements such as country statements, inspections or third party declarations.

    The certificate shows many details of the consigment’s content. A phytosanitary certificate does not show specific requirements. These requirements however, do exist, are based on legislation, and are the basis for inspection by the Plant Protection Service.

    The Food and Consumer Product Safety Authority or the Plant Protection Service together with the Inspection Services check if all requirements are met, after which a certificate is issued or certified.

    There are many variations in export certification for different products. However, general improvements can be made in all area’s, based on the principles of ‘smarter inspections’ and ‘smarter communication’.

    More and more companies use their own quality systems.

    Jan v/s Sijs:”The Dairy sector already relies partly on other safeguards than inspections. Many companies and processes are certified, and we use these safeguards and garantees extensively.”

    More and more companies would like their quality systems to be supervised and recognised by the Food and Consumer Product Safety Authority or the Plant Protection Service. In this way company inspections can replace inspections of consignments as much as possible.

    Another way of ‘smarter inspections’ is the reuse of existing inspection data.

    Marjan:”In some sectors many inspections are executed earlier in the production process by inspection services. If inspections are already carried out, a safeguard is available, it’s not necessary to reinspect just before exporting.”

    A third method for ‘smarter inspection’ is to create a direct connection to existing information systems.

    When exporting live cattle the exporter has to show an ‘animal passport’ for the requirement ‘born and bred’, in the form of a print from the Identification and Registration-system. This paper is then inspected by the Food and Consumer Product Safety Authority. This procedure can be simplified by automatically retrieving this safeguard from the system.

    The CLIENT system is set up to receive and combine all these different inspections and safeguards. In this way, work will be reduced in two ways: the authorities can bypass, or reduce inspections on processes already safeguarded; and the exporter does not have to present the same data over and over again.

    In a central system data is registered once at the source. In this way the exporting party is responsible for complete and accurate destination data, while the Food and Consumer Product Safety Authority and the Plant Protection Service take care of their part of the process.

    Data can then be separated into a part for inspection (or to determine if an inspection is necessary) and a part with information that should appear on the certificate.

    Jan vd Sijs:”this means that exporters, or even producers, can make changes in the data relating to a consignment much later in the process, and that these changes can still be included in the final certificate.”

    Requirements for ‘smarter communication’ do vary per sector.

    Jan Lanning:”We can deliver our flowers throughout the world within 24 hours, but this requires a quick run time of both the product and the documentation on import and export.”

    The logistic process for cut flowers consists of: consignment data which is available at seven thirty, the consignment and its data available at nine, inspection at eleven, and the final certificate ready at two o’clock.
    Export of live cattle however can take months. The animals are selected and inspection takes place to ensure that requirements are met; the animals will then go to a specific export stable, where inspection takes place for other requirements. Only then an export certificate is requested.

    In veterinary sectors requirements are explicitly listed on the certificate. If requirements change, for example if blue tongue is detected, all paper certificates need to be reproduced with new information. So a modified certicate may be available weeks later.

    Currently many certificates are available as pre printed papers. To reduce fraud a costly process of the administration of commercial paper is necessary. A supporting digital system can make these costly stacks of paper redundant.

    New Zealand has been using a support system for export certification that offers electronic certificates to ‘third countries’ for several years. The best elements of this system are the basis of Client.

    In Client
    - certificate model is registered per product-land-combination;- requirements for every certificate are made available;
    - the certifying authority can register which safeguards (such as country statements, certifications and external inspections) can apply for each requirement;
    - the certifying proces is adjusted to the logistic process;
    - and companies apply themselves for certificates and enter the required information.

    Obtaining an export certificate is only one of the procedures an exporting company has to achieve from the authorities.
    Let’s look at an avarage procedure:

    A 'Declaration to Export' at the Tax collectors office or customs office is mandatory for any consignment.

    For agricultural products an export certificate is usually required, in which the Dutch veterinary or phytosanitary authority certifies that the consignment meets the requirements set by the importing country.

    Reports of inspection services, laboratories or health services are often required by the verterinary or phytosanitary authority, to prove that a requirement is met.

    Sometimes these authorities also supply notifications demanded by the importing country, for example radio-activity or dioxin statements or declarations about the product composition.

    For some products export rebates are available within the Common Agricultutal Policy. In the Netherlands the Product Boards are responsible for executing these procedures.
    If an export rebate is applied for, additional customs procedures are often necessary, in order to guarantee that these products have indeed left the European Union.

    Frequently a Certificate of Origin is requested, issued by the Chambers of Commerce.

    The wild variety of some products, such as flower bulbs, can appear on the CITES-list of protected plant and animal species. Then, a CITES-report is required, confirming that the species in the consignment is cultivated.
    Sometimes the importing country demands additional procedures in the Netherlands. This can include a pre-shipment inspection, such as an inspection of flower bulbs destined to the United States by a US-official. It could also be about certifying Dutch documents by the embassy of the importing country in the Netherlands.

    Additional processes in the bussiness domain require the same information relating to the consignment.

    Transport by sea requires a ‘Bill of Lading’, transport by air an ‘Air Way Bill’.

    In the financial world a ‘Letter of Credit’ is often requested for safeguards about payments.

    Recapitulating, there are many processes and procedures for the exporting party, where the same information is requested, in other formats in different forms and at different office windows.

    The Ministry of Economic Affairs has started a programme that will optimize the total set of export processes.

    Two elements of Client will ensure that this system will easily connect to the total of export processes:
    Data required by Chambers of Commerce, Product Boards and Customs, the Food and Consumer Product Safety Authority and the Plant Protection Service, will be harmonized.

    Fredrik:”Our team has worked for months and reduced the total data set from 1200 elements to 200. Well, that is an enourmous profit for companies and a huge simplification for the requested information.”

    Access to Client (by means of company identification and employee authentication) will be developed to ensure relationship with other export procedures.

    So, Client Export will improve the inspection processes of the Ministry of Agriculture, Nature and Food Quality.
    Applying for certificates will be better incorporated into the logistics of exporting companies.
    And the complete export process will become more coherent.

    In addition, the importing country can also benefit from the system.

    Joost:”One problem with a paper system is that we issue it to a company, and after a few weeks it reappears for the use by another competent authority at a Third Country. And what happens with these papers in the weeks in between, well, we don’t know…”

    Marjan:”If we transfer to a digital environment, no paper is available, so there’s nothing to compromise.”

    Joost;”There’s direct communication between national authorities, known as ‘first-hand information’, and this reduces risks substantially.”

    The Client programme will deliver higher quality export certificates, with less chance of errors in the production process. This will contribute to the reputation of the Netherlands as a major exporting country.

Toelichting bij dit beeld

In the desired situation of the Dutch export sectors an automated system took an important place. The system should make it possible for the industry to apply for certificates and for the inspection agencies to support the inspection processes. To design this system the Client Team started a phase of “information analysis”:

Toelichting bij dit beeld
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    On a step-by-step basis, the Client program has created a draft framework for practical system specifications. During this project, we consulted with experts from trade and industry and from inspection organisations.

    Out of the preliminary studies regarding improvement of export processes, the framework for a possible support system emerged, which is largely applicable to all sectors.
    All sectors are familiar with the principle that for any combination of products and destination countries:
    - a certification model exists,
    - the consignment is subject to strict standards; veterinary standards as required by the certification process, and plant health standards in accordance with related legislation,
    - guarantees must be given that the standards will be met,
    - besides the inspection, numerous other guarantees are in place as part of the quality control process or other systems.
    However, the system is also specific in part. This is particularly the case regarding areas in which the connection must be made between the sector’s inspection processes and logistics; these can be very complex.

    Before we begin with the development of such a system, it is important to address two questions:
    - question one is, to what extent are the factors addressed as global in the preliminary study actually nominated as global, and to what extent will they remain global once you have taken a deeper look into these sectors? For this reason, investigate the various sectors in more detail.
    - Secondly, to what extent do different sectors impose different requirements on this type of common system?
    To give a well thought-out answer to these questions, we have followed a special course of information analysis.

    Information analysis is a course, a step-by-step plan, in which the details and processes of businesses are investigated, irrespective of the way that they are carried out. The advantage of this is that you receive a well-thought-out approach and a renewed design of the business processes, without being hindered by outdated and/or impractical working methods.

    Three subdivisions defined the complexity of the analysis:
    - Firstly, we have to deal with a chain; business processes that are not only employed by the particular organisation, but also extend outside the domain of that organisation.
    - Secondly, we must deal with a generic system, which must retain the capability to be implemented according to the specific needs of the particular sector.
    - Lastly, we must deal with the government and the business community, which by their natures have differing interests, and manage to achieve a result suitable to both.
    For Client Export, we were asked to fulfil a bridging function between businesses and IT on the one hand, and the government and the business community on the other.

    Main objectives of the course:
    - Analyse the export certification in six separate sectors. For this, make a separate model for each sector (of both the processes and the information).
    - Combine these six models to form one common model. As part of the process of consolidation, assess whether there are sufficient similarities between the sector models.
    - By using a number of ‘fresh’ sectors, test whether the model also supports the operations of these sectors.
    - Develop a Realisation Plan for the development of the system.
    Also, investigation was required into how the system can be implemented into the exporter’s other processes that involve the government, for example, Customs or the Chamber of Commerce, in a way that will assist export certification.
    For this, the pieces of data that the different government organisations request must be geared to each other.
    Furthermore, an infrastructure must be defined within which the various transactions involving the government are coherently addressed.

    A start was made on the inventory of data that the Chamber of Commerce, Customs, Productschappen (the Commodity Board), the Plantenziektenkundige Dienst (Plant Health Department) and the Voedsel- en Warenautoriteit (Food and Consumer Product Safety Authority) will require from the exporter. At first count, this added up to 1,200 pieces of data. These pieces of data were compared and matched with each other, and fine-tuned where necessary. This condensed data set consisted of 200 elements. The harmonised definitions of the data formed the basis for the subsequent information analysis by Client Export.
    The analysis itself began with six sectors. For every sector, we assembled experts from the government and the business community. Based on their input, business processes and data were analysed. The result of this approach was that six individual information models came into being, one for each sector.

    The next step was one for the specialists. The six separate process models were assessed based on their similarity regarding both process content and the process data usage. In this way, a number of processes could be classified as generic, whilst others remained specific to one particular sector.

    Also, all data was pooled. This allowed for the classification of generic data elements, in which sector-specific data elements were given their place. This provided a new data model.

    The result of this phase of the project was a consolidated information model, that supports all six of the original sector models.
    To be certain that this model indeed supported all export sectors, it then underwent a verification phase. This verification also had the purpose of creating a basis of support for the model in other sectors. The export sectors of unsexed chicks and hatching eggs, animal feed, seed stock, bulbs, pork and poultry formed working groups. These working groups first formulated their export processes and subsequently investigated whether or not these processes and their data were adequately supported by the model. In the majority of cases throughout the sectors, the model proved successful. It was only in a few cases that an addition or improvement to the model was suggested.

    After this verification phase, the information model was set in stone.
    The last step in the information analysis process was to prepare the model for the actual system development. That involved separating the model into pieces, lets call them plots, all of which could be designed and built separately in a sub-project. For every plot, an explanation was given as to what the automated support structure should look like. Subsequently, cost and duration estimates were made based on prior experience, and a budget and schedule were determined.

    These products, along with development guidelines from the Ministry of Agriculture, Nature and Food Quality provided the necessary material for contracting out the actual system development for fixed prices. After a round of quotes, the Limburg based company Mediaan was selected to develop the separate parts of the system at the agreed prices.
    Development of the systems was started in the second quarter of 2006. Throughout the course of 2006 and the beginning of 2007, the agreed partial systems were developed and tested.

    In the meantime, the VWA (Food and Consumer Product Safety Authority) and the Plant Health Department added the standards and conditions necessary for the initial sectors. After the standards, conditions and certification models were incorporated into the system, the complete functionality of the system could be assessed.

    In the third quarter of 2007, the dairy sector was able to begin a step-by-step process of acquiring the necessary export certificates. In the fourth quarter of 2007, the seed potato sector began to request export certificates via Client Export. The role that Client Export fulfilled in both of these sectors can be found in separate sections of this DVD.

At the end of the information analysis phase a pilot was conducted. This pilot was intended to test the combination of a new system with the new procedures and possibilities. The pilot was conducted in the (relatively small) sector of flower exporters in Uganda, in close cooperation with the Ugandan Plant Health Service. On the foundation of the information analysis an automated support system was developed within two months. This system offered a clear picture of the new thought process and played an important role in decision making

Toelichting bij dit beeld
  • Download this movie

  • Text in this movie

    CLIENT Export commenced with extensive interviews at exporting companies.
    In this way, the point of view of the companies was used to review the processes and requirements of the authorities.

    Tjeerd:”We invited some exporters, and together with them, we made sure the real problems are mentioned and submitted in the Client system. We made sure that all of us will get a properly working sytem that’s suitable for business users.

    In these interviews we focussed on two important themes:

    Firstly: the process of requesting and issuing an export certificate by the Dutch authorities. How do inspections take place?
    Where are bottlenecks and what can be improved?

    Secondly: The complete export procedure for products and the receiving countries.
    What other procedures take place and what can be improved?
    Are there opportunities for improving the complete process?

    This is a veterinary export certificate. Each product-country combination has it’s own model. The certificate shows all the requirements consignments should meet to be accepted. In order to confirm this, The Food and Consumer Product Safety Authority needs safeguards for all requirements such as country statements, inspections or third party declarations.

    The certificate shows many details of the consigment’s content. A phytosanitary certificate does not show specific requirements. These requirements however, do exist, are based on legislation, and are the basis for inspection by the Plant Protection Service.

    The Food and Consumer Product Safety Authority or the Plant Protection Service together with the Inspection Services check if all requirements are met, after which a certificate is issued or certified.

    There are many variations in export certification for different products. However, general improvements can be made in all area’s, based on the principles of ‘smarter inspections’ and ‘smarter communication’.

    More and more companies use their own quality systems.

    Jan v/s Sijs:”The Dairy sector already relies partly on other safeguards than inspections. Many companies and processes are certified, and we use these safeguards and garantees extensively.”

    More and more companies would like their quality systems to be supervised and recognised by the Food and Consumer Product Safety Authority or the Plant Protection Service. In this way company inspections can replace inspections of consignments as much as possible.

    Another way of ‘smarter inspections’ is the reuse of existing inspection data.

    Marjan:”In some sectors many inspections are executed earlier in the production process by inspection services. If inspections are already carried out, a safeguard is available, it’s not necessary to reinspect just before exporting.”

    A third method for ‘smarter inspection’ is to create a direct connection to existing information systems.

    When exporting live cattle the exporter has to show an ‘animal passport’ for the requirement ‘born and bred’, in the form of a print from the Identification and Registration-system. This paper is then inspected by the Food and Consumer Product Safety Authority. This procedure can be simplified by automatically retrieving this safeguard from the system.

    The CLIENT system is set up to receive and combine all these different inspections and safeguards. In this way, work will be reduced in two ways: the authorities can bypass, or reduce inspections on processes already safeguarded; and the exporter does not have to present the same data over and over again.

    In a central system data is registered once at the source. In this way the exporting party is responsible for complete and accurate destination data, while the Food and Consumer Product Safety Authority and the Plant Protection Service take care of their part of the process.

    Data can then be separated into a part for inspection (or to determine if an inspection is necessary) and a part with information that should appear on the certificate.

    Jan vd Sijs:”this means that exporters, or even producers, can make changes in the data relating to a consignment much later in the process, and that these changes can still be included in the final certificate.”

    Requirements for ‘smarter communication’ do vary per sector.

    Jan Lanning:”We can deliver our flowers throughout the world within 24 hours, but this requires a quick run time of both the product and the documentation on import and export.”

    The logistic process for cut flowers consists of: consignment data which is available at seven thirty, the consignment and its data available at nine, inspection at eleven, and the final certificate ready at two o’clock.
    Export of live cattle however can take months. The animals are selected and inspection takes place to ensure that requirements are met; the animals will then go to a specific export stable, where inspection takes place for other requirements. Only then an export certificate is requested.

    In veterinary sectors requirements are explicitly listed on the certificate. If requirements change, for example if blue tongue is detected, all paper certificates need to be reproduced with new information. So a modified certicate may be available weeks later.

    Currently many certificates are available as pre printed papers. To reduce fraud a costly process of the administration of commercial paper is necessary. A supporting digital system can make these costly stacks of paper redundant.

    New Zealand has been using a support system for export certification that offers electronic certificates to ‘third countries’ for several years. The best elements of this system are the basis of Client.

    In Client
    - certificate model is registered per product-land-combination;- requirements for every certificate are made available;
    - the certifying authority can register which safeguards (such as country statements, certifications and external inspections) can apply for each requirement;
    - the certifying proces is adjusted to the logistic process;
    - and companies apply themselves for certificates and enter the required information.

    Obtaining an export certificate is only one of the procedures an exporting company has to achieve from the authorities.
    Let’s look at an avarage procedure:

    A 'Declaration to Export' at the Tax collectors office or customs office is mandatory for any consignment.

    For agricultural products an export certificate is usually required, in which the Dutch veterinary or phytosanitary authority certifies that the consignment meets the requirements set by the importing country.

    Reports of inspection services, laboratories or health services are often required by the verterinary or phytosanitary authority, to prove that a requirement is met.

    Sometimes these authorities also supply notifications demanded by the importing country, for example radio-activity or dioxin statements or declarations about the product composition.

    For some products export rebates are available within the Common Agricultutal Policy. In the Netherlands the Product Boards are responsible for executing these procedures.
    If an export rebate is applied for, additional customs procedures are often necessary, in order to guarantee that these products have indeed left the European Union.

    Frequently a Certificate of Origin is requested, issued by the Chambers of Commerce.

    The wild variety of some products, such as flower bulbs, can appear on the CITES-list of protected plant and animal species. Then, a CITES-report is required, confirming that the species in the consignment is cultivated.
    Sometimes the importing country demands additional procedures in the Netherlands. This can include a pre-shipment inspection, such as an inspection of flower bulbs destined to the United States by a US-official. It could also be about certifying Dutch documents by the embassy of the importing country in the Netherlands.

    Additional processes in the bussiness domain require the same information relating to the consignment.

    Transport by sea requires a ‘Bill of Lading’, transport by air an ‘Air Way Bill’.

    In the financial world a ‘Letter of Credit’ is often requested for safeguards about payments.

    Recapitulating, there are many processes and procedures for the exporting party, where the same information is requested, in other formats in different forms and at different office windows.

    The Ministry of Economic Affairs has started a programme that will optimize the total set of export processes.

    Two elements of Client will ensure that this system will easily connect to the total of export processes:
    Data required by Chambers of Commerce, Product Boards and Customs, the Food and Consumer Product Safety Authority and the Plant Protection Service, will be harmonized.

    Fredrik:”Our team has worked for months and reduced the total data set from 1200 elements to 200. Well, that is an enourmous profit for companies and a huge simplification for the requested information.”

    Access to Client (by means of company identification and employee authentication) will be developed to ensure relationship with other export procedures.

    So, Client Export will improve the inspection processes of the Ministry of Agriculture, Nature and Food Quality.
    Applying for certificates will be better incorporated into the logistics of exporting companies.
    And the complete export process will become more coherent.

    In addition, the importing country can also benefit from the system.

    Joost:”One problem with a paper system is that we issue it to a company, and after a few weeks it reappears for the use by another competent authority at a Third Country. And what happens with these papers in the weeks in between, well, we don’t know…”

    Marjan:”If we transfer to a digital environment, no paper is available, so there’s nothing to compromise.”

    Joost;”There’s direct communication between national authorities, known as ‘first-hand information’, and this reduces risks substantially.”

    The Client programme will deliver higher quality export certificates, with less chance of errors in the production process. This will contribute to the reputation of the Netherlands as a major exporting country.

Toelichting bij dit beeld

The information analysis phase was concluded with a detailed planning for development of the system Client Export and its implementation in the various Dutch export sectors. This plan was approved by both the exporting industry and government in the Steering Committee. The development of the system really started in Q2 of 2006.


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