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Making sense of IT issues in the ports and transportation sectors is ITinerary's aim. Contributor Leo V. Morada has 20 years experience in the development, project management and implementation of IT projects in Philippine ports, transport and logistics. He is presently an independent consultant for IT projects and initiatives in Philippine ports and transport industries.

 

You are now viewing: ITinerary Archives : 2006 Q3



* Electronic Payment & Collection System in Government (November 20, 2006)

* RFID vs Barcode: Which Is IT? (November 06, 2006)

*Projected Trends in IT Spending (October 11, 2006)

*Recent Developments To Watch Out For (July 31, 2006)

*IFM Submission Through Data Diskette: Is It Stil Worth It? (August 14, 2006)

*PEZA Accreditation for VASPs of Electronic Import Permit Syystem (August 28, 2006)

*Malaysian ICT Firm interested to recruit Filipino Staff (September 25, 2006 )

 

RFID vs Barcode: Which Is IT?

The Depart-ment of Finance and Department of Trade recently issued Joint Department Administrative Order (JDAO) No 2 series of 2006 dated 25 October 2006 on the subject: ÒGuidelines Implementing R.A. 8792 On Electronic Payment And Collection System (EPCS) In Government.Ó Allow me to cite key provisions of this order:

Objectives
The JDAO is issued to prescribe policies and guidelines in the adoption of Electronic Payment and Collection System (EPCS) in government tran-sactions. The guidelines are expected to bring about more efficient and effective payment and collection services for the transacting clients and amongst the government offices through any authorized electronic pay-ment and collection system, allowing the government to better manage its financial resources, thereby improving its revenue generation capability.

Implementation
The EPCS to be used by the government entity must comply with the following basic principles: technology neutrality, interoperability, operational efficiency (elimination of red tape), information availability, security, privacy and integrity, and auditability.

Scope
The JDAO shall apply to all government entities that intend to use or which have existing EPCS for the collection of fees, charges, assessments and revenues. The EPCS should be able to accommodate various modes and channels of electronic payments such as, but not limited to, credit cards, automated teller machines (ATMs), debit cards, stored-value cards, mobile wallet payments and kiosks.

The JDAO defines government entity as national government agencies, local government units, government-owned and/ or controlled corporations, or state universities and colleges which are required by law to remit their collections to the National Treasury.

EPCS Minimum Requirements
The EPCS must have the following technical components:

Front End System – The EPCS must have a front-end system which may be maintained by the Government Entity, connected to a Collecting Bank, or through an Electronic Payment Gateway Provider (EPGP). The EPCS front-end system shall serve as the primary interface between the Government Entity and its clients, or other systems connected to the EPCS. It communicates through user interfaces or standard communication protocols to collect the data required and issue electronic official receipt to complete the transaction.

Back-End System – This component must be able to maintain record of transactions and provide required daily reports to the Bureau of Treasury in electronic format as a result of payment and collection transactions.

Information Security Management System – The confidentiality, privacy, integrity, and availability of electronic information shall be based on the Philippine National Standards on Information Security Management System (ISMS) as approved by the Bureau of Product Standards.

The EPCS shall comply with ISMS through the use of physical security measures and procedures, technical security measures, and administrative security procedures. Independent vulnerability assessment shall be conducted for the EPCS prior to the launching of operations and periodically as may be recommended by the designated Government Electronic Payment & Collection System Evaluation Team (GEPCSET). The EPCS shall also conform to DTI Department Administrative Order No. 8, signed on 21 July 2006, ÒPrescribing Guidelines for the Protection of Personal Data in Information and Communications System in the Private SectorÓ.

Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP) – The EPCS shall be supported by a BCP/ DRP that is operational, satisfactorily tested, and approved by the GEPCSET.

Support Services - The EPCS shall be supported by a 24/7 Technical Support and a Customer Help Desk.

As part of legal and documentary requirements, the Government Entity adopting an EPCS shall designate and authorize a Collecting Bank and/ or EPGP, to receive and process electronic payments for fees, charges, assessments, and revenues due to the Government Entity. In the case of EPGP, its partner bank must be an authorized government depository bank or an authorized agent bank.

An inter-agency GEPCSET shall be created composed of representatives from the Department of Finance, Department of Trade and Industry, Bureau of the Treasury, National Computer Center, and the Bangko Sentral ng Pilipinas. It shall convene on a specified date, time, and place to conduct the appropriate evaluation, accreditation and recommend the approval of applications to adopt EPCS or components thereof. It shall maintain a list of accredited EPCS providers which may be referred to by a Government Entity intending to implement an EPCS.

A technical IRR shall be issued within 60 days after the effectivity of the guidelines. The JDAO shall take effect 15 days after publication of its full text in the Official Gazette or two newspapers of general circulation. The GEPCSET shall issue its operations guidelines within 90 days after effectivity of this JDAO.

Leo V. Morada has more than 20 years of professional IT management experience in the Philippine ports industry. He can be contacted at email address lmorada3f1@yahoo.com .

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RFID vs Barcode: Which Is IT?

I recently noted a number of news develop-ments which appeared to be giving stronger articulation on barcode technology as a safer and stable investment compared to RFID.

Let’s take as close look at two of them.

Early last month a top official of leading mobile data capture and automation firm Intermec was quoted saying that there is a resurgence of barcodes utilization in manufacturing supply chain as RFID technology still remains a future thing. It was further reported that although the last couple of years have seen a lot of RFID pilot studies getting underway, RFID remains in an early adopter phase, lacking significant roll-outs — and is likely to remain that way for a very long time.

Intermec — which is reportedly involved with 62 RFID pilot projects across Europe, some 25 of which are in manufacturing — believes that most of the action for the foreseeable future will remain in barcode technology.

Stuart Scott, senior director of international marketing at Intermec, says that despite the initial enthusiasm and despite the fact that a lot of its projects are in so-called closed loop supply chains where it ought to be easier to achieve a return on investment — not least since there is less requirement to wait for global data synchronization — it just isn’t moving. ÒEven though we can assume benefits with closed loop systems because they are easier to control, and ROI is being derived, it’s being done slowly and cautiously.Ó He names some exceptions, like the automotive sector, which has long benefited specifically from RFID’s read/write capabilities, and likewise aerospace.

ÒThe mood has gone negative after the hype,Ó says Scott. ÒIt’s always the way after expectations have been set too high, even though the technology and standards have moved on a long way and we have the benchmark implementation in the Metro store.Ó And he adds: ÒThe technology will get even better, and adoption in retail will come although mostly at the case level. But the rest are still many years away.Ó

ÒIt’s all about visibility, and that’s about data sharing, which in turn requires accurate data,Ó agrees Scott. ÒAnd for now that accuracy will come from barcode scanning.Ó As a result, Scott believes we’re about to witness a new era of revitalized interest in barcodes right across manufacturing, perversely stimulated by the very activity around RFID and its relegation to the back burner. Indeed, he sees industry upping the ante on barcodes and looking to more sophisticated 2D devices, for example. But he adds: ÒWhile a lot of people think they can take advantage of 2D barcodes or maybe RFID, linear barcodes are more than adequate if all they are doing is tracking goods up and down supply chains with a SKU and quantity. The issue is how to make that real-time.Ó

Last Friday (03 November), the Philippine Daily Inquirer published an article in its Technology Section written by Ron Herana entitled ÒRFID: Raising the Bar Code?Ó

He made a rather interesting comparison of both technologies and I quote hereunder his findings:
ÒCost — High volume tags cost as much as 25 cents each. This is expected to be reduced with increased demand for RFID and standards acceptance. High volume bar codes are virtually free. Think about this: How much does a small toothpaste tube cost? If you implement RFID on an item level today, maybe it’s more than the cost of a tag. Furthermore, bar code technology is already a proven technology, with the cost of implementation becoming more and more affordable.

Scanning — RFID offers a wider scanning range and does not require a visual line of sight to scan a tag. This means that tags placed on a carton, packed in a box, or stored in a pallet may be read. You don’t have to open each box to be scanned. Bar codes offer only a read range of inches and requires line of sight to read a bar code. The bar code should be presented to the scanner in a particular distance. Individual reading requires each box on a pallet to be opened and the item pulled to be read by the scanner. However, although requiring Òline of sightÓ, bar code read rates are reliable even in the most challenging environments

Reliability — RFID acceptance is still in the early adoption stages. Its initial adoption in logistics is on case & pallet marking. On the item level, bar coding is still practical.

Physical Size — RFID tags can be the size of postal stamps. The ratio between a tag’s dimension in length and width is not a significant factor for the reader. Bar codes are highly sensitive to aspect radio for readability to a bar code scanner.

Lifespan — Tags have no moving parts and can be enclosed in protective material, providing a sturdy casing. Bar codes are subject to damage with excessive handling and harsh environments.

Counterfeit — Tags are produced with a unique identity code or serial number from the manufacturer. This is embedded in the microchip, and may not be altered, making them counterfeit proof. Bar codes may be duplicated and attached to products and can be counterfeited.Ó

Herana concludes by saying: ÒThere is no doubt that RFID will one day become an important technology. However, bar code will still exist and can be a complementary technology to RFID. It can be a back-up, redundant technology when there’s a problem or a glitch encountered on operating and implementing RFID.Ó

I suppose this will not be the last we’ll hear about barcodes and RFID and subsequent developments on this matter bear close watching.

All the while it seemed RFID is making more positive headways particularly on the matter of globally acceptable standards which is a highly contentious issue. It was already reported in www.rfidupdate.com that the International Organization for Standardization (ISO) has amended its existing passive UHF RFID standard to include the EPCglobal Gen2 standard. The inclusion now means that Gen2-compliant RFID hardware will also be considered compliant by ISO standards. From an end-user perspective, the incorporation of Gen2 into ISO/IED 18000 will hopefully result in wider variety and lower prices for RFID equipment. It is claimed that by certifying their Gen2 wares, RFID hardware vendors will implicitly also achieve ISO certification

Leo V. Morada has more than 20 years of professional IT management experience in the Philippine ports industry. He can be contacted at email address lmorada3f1@yahoo.com.

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Projected Trends in IT Spending

WE are now into the last quarter of 2006 and in most companies this period coincides with final decision-making on IT budgets for 2007.

For those IT and business decision-makers who are still planning their IT expenditures next year, I would like to share with you highlights of the latest studies done by International Data Corporation (IDC) for the Philippines.

Last month IDC Philippines published its most recent study entitled Vertical Horizons: IT Spending Patterns of Primary Vertical Markets in the Philippines examining the IT spending patterns of and trends in the primary vertical markets in the Philippines based on IDC’s Continuum Survey, 2006, which is a survey of 210 companies. With focus on IT hardware products such as PCs, servers, storage, smart handheld devices (SHDs), and mobile phones, this study also expounds on market opportunities in the different vertical markets based on future spending direction.

According to IDC, the vertical markets in the Philippines are expected to shift to higher gear in terms of IT spending in the next five years. Based on a previous report, the demand from the communications and media, banking, and discrete manufacturing verticals will still heavily shape the IT spending landscape in the country. IDC, however, believes that bright business opportunities from the distribution, service, and public sector verticals can also be seen in the horizon, especially as the Philippine market is now embracing IT adoption on almost all levels of business engagements, combined with inherent Filipino ways of doing business.


Further progress in the next five years
Augusto Roman Carlos, market analyst, Personal Computing Research, IDC Philippines, says “IT spending from the vertical markets in the Philippines are seen to further progress in the next five years. However, intense competition characterizes the IT market landscape these days. In order to gain good footing in the market, utmost importance should be given to particular factors that influence the spending behaviors of the primary vertical markets.

“Faster application deployment will be the main strategic requirement for the public sector, financial service, manufacturing, construction, and resource firms. Building secure IT environments, on the other hand, will be the main aim of companies in the distribution and service segment. In addition, reducing total IT costs will influence the future spending of infrastructure service firms”.

Consistent with the findings of previous reports, one of the important insights gathered from this IDC study is how future spending will still revolve around hardware buying.

Primary vertical markets’ IT buying behaviors would largely be influenced by strategic requirements, depending on the financial capability and internal processes of a firm and wildcard economic or business concerns. Furthermore, overall IT consolidation was found to be the most important IT concern of firms in the public sector and financial service verticals. On the other hand, the distribution and service, manufacturing, construction and resources verticals prioritized IT service management, while infrastructure services zeroed in on information life-cycle management (ILM). IDC further finds that replacement and maintenance were the main IT investment objectives across the four primary vertical markets (except the financial service vertical, which focused more on first-time strategic investments).

Another study released last August entitled Philippine IT Spending User Segmentation 2006-2010 Forecast and Analysis predicts that the country will maintain the momentum in IT spending in 2006 and beyond, expanding by a 10.4% compound annual growth rate through 2010.

2005 saw major shifts in IT spending level in the Philippines, with the industry growing by 20% to reach US$1.4 billion, after finally hitting the US$1-billion mark in 2004. Although the economy did not grow as high as in 2004, positive business sentiment brought about renewed commitments from the end-user community to particularly zero in on key IT investments. These IT investments allowed companies to achieve business efficiency, as well as provided addressable opportunities for IT vendors and service providers. IDC reports that the country’s overall IT sending is seen to lean toward hardware centricity, owing to the fact that a large proportion of the population has yet to adopt or fully implement IT.

The hardware segment will account for 67% of the IT market in 2006, with PCs, networking hardware, printers, and smart handheld devices (SHDs) topping the demand. Services is expected to account for 22% of the total market, while the software segment will garner 11%.

In my previous articles about IT spending patterns I have observed that high IT spending levels in the Philippine ports and cargo transport industry are traditionally the hallmark of large corporations that are likewise listed in the Philippine Stock Exchange such as Aboitiz Transport System, Asian Terminals Inc and International Container Terminal Services Inc.

Growing IT spending on VOIP and broadband internet are clearly being felt based on existing commercial operations of PLDT, Smart, Globe, Eastern Telecoms and Broadband Philippines that cater to businesses in the port area and its immediate environs. But the bulk of IT expenditures by SMEs in the ports and cargo transport sector seems to remain focused on PC desktop and server hardware as well as software licenses for office automation.

Tangible levels of IT spending on RFID are still not evident but one area where a unique trend seems likely in the ports sector is IT spending for port security technology.

The figure below illustrates the overall IT expenditure allocations of the primary vertical markets based on the study entitled Vertical Horizons: IT Spending Patterns of Primary Vertical Markets in the Philippines.

 

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Recent Developments To Watch Out For

Technology Challenges for a Privatized North Harbor
The planned privatization of North Harbor is getting a boost nowadays. It was recently reported that PPA recommended to the National Economic and Development Authority that the policy against having one operator for Manila's ports be lifted since a monopoly no longer exists.

Newspaper accounts identify at least three entities which reportedly expressed interest in the plans for a privatized North Harbor - Magsaysay Shipping Lines and Lorenzo Shipping Corp, Harbour Centre Port Terminals Inc, and International Container Terminal Services Inc.

From the perspective of IT planning and strategy, the North Harbor area constitutes one of the most challenging sites for building an information and communications technology infrastructure and implementing highly integrated software applications for day-to-day cargo and passenger operations. If the privatization plan pushes through and the contract to rehabilitate, manage and operate North Harbor cargo and passenger terminal activities is awarded to a single operator, I really hope that the winning contractor will integrate a comprehensive ICT plan into its overall business model for NH port operations.

The Latest about Customs Computerization Program
Some industry observers have asked me about the latest status of BOC's computerization program. I recall that the last development I shared with our readers months ago was BOC's move to accredit five IT service providers as value-added service providers (VASP). Other than this, nothing much is being heard about the computerization project.

Our readers will be happy to know that Deputy Commissioner Alexander Arevalo will actually discuss the latest developments on this matter when he speaks as a resource speaker during the PortCalls International Trade and Customs Conference on 17 August 2006 to be held at Hyatt Hotel & Casino Manila.

Progress of US Megaports Project In The Port of Manila
In January of this year I reported that efforts are underway to implement the US Megaports Initiative in the Port of Manila which,, upon completion, will result in the installation of special equipment at the South Harbor and MICT to detect hidden shipments of nuclear and other radioactive material and help thwart terrorist attempts to smuggle material for nuclear weapons and so-called "dirty bombs".

During that month a technical team from the US stayed in Manila to meet with officials of the PPA, BOC, Philippine Nuclear Research Institute and representatives of Manila's port terminal operators (ATI and ICTSI) for discussions on technical site surveys and design of the proposed detection system.

Official US government press releases describe the project's goal as "to enable foreign government personnel at key seaports to use radiation detection equipment to screen shipping containers entering and leaving these ports, regardless of the containers' destination, for nuclear and other radioactive material that could be used against the United States or its allies. Through this Initiative, DOE installs radiation detection equipment at foreign seaports that is then operated by foreign government officials and port personnel working at these ports".

ICTSI already disclosed sometime ago its new automated gate system which apparently incorporates abovementioned detection systems. Over the South Harbor, construction of these detection facilities is ongoing. What port users are now awaiting are the final operational procedures related to the Megaports system.

Breaking News: Port Security Charge for Hong Kong Shippers
A report published in www.porttechnology.org says that "five (5) terminal operators in Hong Kong will implement a port security charge starting August 15, 2006 to cover the cost of stronger security measures (see related story below).

"Hong Kong International Terminals Limited, Modern Terminals Limited, COSCO-HIT Terminals (Hong Kong) Limited, Asia Container Terminals Limited, and CSX World Terminals Hong Kong Limited will charge HK$20 per 20 ft container and HK$30 per 40 ft and 45 ft box.

"The fees will be paid directly to the terminal operators and not to the shipping lines for safety concerns. If the fees were paid to shipping lines, there would be no transparency in how the money was spent. A review after 18 months of the implementation date will be held to assess how the collected money was spent on added security. The choice to push through with the levy will also be discussed.

"The charge is expected to generate more than HK$245m (US$31.4m), according to a report. Based on last year's laden throughput of 12.24m TEU, the charge would have generated HK$244.86m."

I wonder how Philippine port users will react to this development.

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IFM Submission Through Data Diskette: Is It Still Worth It?

THE mode of submitting inward foreign manifest to the Bureau of Customs (BOC) in data diskette has been in existence for 12 years now.

It all started when BOC issued Customs Memorandum Order 45-94 dated 03 November 1994 on the subject: "Full Compliance To Electronic Submission Of Inward Cargo Manifest". This mandated that all inward foreign manifest be submitted in electronic diskette media in addition to hard copy manifests. During that time the required file format was in DBF (a text file format used by dBase III and dBase III Plus programming tools which were then widely used).

Five years later, BOC issued Customs Memorandum Order 11-99 dated 02 June 1999 on the subject: "Implementation Of ACOS Manifest". It mandated that all electronic submission of cargo manifest (either through EDI, email or data diskette) shall be in accordance with the new ACOS format.

Additional modes of manifest submission were simultaneously introduced: through electronic mail (ACOS manifest is sent as file attachment) and through EDI (utilizing the services of a customs accredited value-added network). The number of hard copy manifest required for submission together with the electronic manifest were likewise reduced to a minimum.

Role Played by Cargo Handling Operators
The existing regulation is for the electronic manifest to be submitted to BOC. But the implementing procedure in the Port of Manila and MICP is actually for shipping lines/agents, consolidators and freight forwarders to submit electronic manifest through the facilities of cargo handling operators (CHOs) ATI and ICTSI. Upon receipt of the electronic manifest (submitted through EDI, email or data diskette), both CHOs upload the files directly to BOC ACOS computer system using ACOS computer workstations and network access specifically made available to them by customs). At the same time they upload a copy of the same electronic manifest to their own respective CHO computer databases.

In the case of import shipments at Harbour Centre Port Terminal, Inc, the electronic manifest data diskette is submitted directly to the office of the Deputy Collector for Operations (Port of Manila) where the files are subsequently uploaded to the ACOS database. So far I understand that Harbour Centre does not retain a copy of this electronic manifest information for its own use unlike ATI and ICTSI.
Data Diskettes Still Account for Bulk of Electronic Manifest Submission
I don't have statistics on hand but my gut feel is that data diskette submission still accounts for the bulk of electronic manifest submission, particularly for co-loader manifests and consolidation manifests. This is confirmed by the large number of diskettes handled by ATI and ICTSI staff at designated IFM receiving offices. An exception is the submission of main vessel manifests by shipping lines/agents since most of these are done through email.

It will be very useful if both CHOs make available their statistics on this matter.

Since the very beginning, the act of receiving electronic manifest information in data diskette and subsequently uploading them to ACOS constitutes a service rendered "free" by both ATI and ICTSI. There are numerous reasons for this. First, BOC itself does not mandate any fee for manifest submission (unless done by an accredited value-added network). Second, both arrastre operators consider this as a "public service" to port users and a tangible manifestation of their support for BOC computerization efforts. Third, most port users consider data diskette submission as very convenient.

Service Is Free - But Is It Efficient For All Concerned?
The past 12 years constitute more than adequate time to take a second look at data diskette submission and really examine if its promised benefits are valid today as well as for the next few years.

One of the main things to consider is whether or not the new BOC AsycudaWorld system, which is Internet based, will still allow data diskette submission.

Another consideration is the fact that while ATI and ICTSI continue to invest in more technologically advanced IT systems and infrastructure and provide web-based services such as container track and trace and electronic payment of port charges, the continued existence of data diskette submission will be more difficult to justify internally from the perspective of business process improvement.

Just imagine this: Each data diskette is manually uploaded to both the BOC and arrastre operator system. If there are less than 10 diskettes to be processed the effort is not much. What if there is simultaneous submission of 25 diskettes? How about if data diskettes are rejected because they are virus infected? There is also a delay in the completion of manifest upload to ACOS if the co-loader and consolidation manifest files are uploaded ahead of the main vessel manifest.

Gov't Expected To Provide New Technology Direction
So what is the direction ahead for data diskette submission of electronic manifest? This is this column's food for thought for port users.

I believe this is one area where the BOC is bound to exercise technology leadership as well as regulatory mandate in view of its ongoing computerization project. But what is certain is that port users will welcome coordination of respective efforts between the BOC and the Philippine Ports Authority - which has its own electronic manifest initiative - and the formulation of a common initiative that will benefit all industry stakeholders.

Leo V. Morada has more than 20 years of professional IT management experience in the Philippine ports industry. He can be contacted at email address lmorada3f1@yahoo.com.

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PEZA Accreditation for VASP's of Electronic Import Permit System

THE Philippine Economic Zone Authority (PEZA) recently issued invited eligible value-added solutions providers (VASPs) for the development, installation and implementation of the PEZA electronic import permit system. Applications for accreditation must be submitted on or before 5:00 p.m. of August 31, 2006 (complete details are in www.peza.gov.ph)

For those who want a brief understanding of this development, the accreditation guidelines say that the filing of import permits by PEZA-registered economic zone enterprises with tax and duty-free importation incentives is a mission-critical function and in order to simplify and facilitate the processing of import permits, PEZA will implement the Electronic Import Permit System (eIPS) through VASPs.

"Pursuant to PEZA Board Resolution No. 06-261 approving the implementation of the eIPS project, the following guidelines for the accreditation of VASPs for the development and operation of the PEZA Electronic Import Permit System, are hereby prescribed and promulgated for the information, guidance and compliance of all concerned:

"Definition of Terms. In connection with the PEZA accreditation of VASPs for the development and operation of automated systems such as the eIPS, the following definitions are hereby adopted:

a. Electronic Import Permit System or eIPS shall refer to an online system for filing and processing of PEZA Import Permit applications of PEZA-registered economic zone enterprises which ensures that importations covered by the enterprises' tax and duty-free importation privilege are limited to machinery and equipment, raw materials, parts and components and other production inputs required for the manufacture of their registered products and/or operation of their registered activities;
b. Value-Added Service Providers or VASPs are reputable IT enterprises with the technical expertise and capability for the development, installation and implementation of eIPS inside economic zones, which will allow economic zone enterprises to have their Import Permit applications processed on a round-the-clock (i.e., 24x7) basis.

"Required Components of the Electronic Import Permit System (eIPS). The eIPS, which PEZA-accredited VASPs shall operate continuously on a round-the-clock basis, shall have the following automated components:

a. Electronic module for the preparation and submission of the Import Permit (eIPS) application, in compliance with the data requirements and specification of PEZA;
b. Electronic and secured data network infrastructure for the connectivity for PEZA-registered enterprises or their respective authorized representatives to eIPS;
c. Electronic module for the validation of the items declared in the eIPS application against the respective list of importables as approved by PEZA and other screening parameters as may be specified by PEZA;
d. Electronic module for the collection of payment of the PEZA Processing Fee for Import Permit applications (e.g., e-banking, G-cash, auto-debit, etc.), as well as recording and reporting of each payment collected;
e. Electronic module for validation of the ownership of every import shipment, to be triggered by the payment of the PEZA Processing Fee for the application for an Import Permit for such shipment; and
f. Electronic module for confirmation of delivery to the economic zone destination of every tax and duty-exempt import shipment released on the basis of a PEZA Import Permit processed under the eIPS.

"Qualifications of VASP for PEZA Accreditation. Value-Added Solutions Providers seeking accreditation with PEZA shall meet the following minimum qualifications:

a. A minimum of three (3) consecutive years of actual involvement in the development and implementation of electronic systems/ solutions, in the business, industrial or public sector projects or undertaking;
b. Possess in-house technical expertise and capability for developing and implementing electronic/automated systems, and/or partnership with other IT organizations/facilities that will ensure access to specialized expertise on customs procedures, security infrastructures for network/electronic systems;
c. Familiarity with Import-Export transactions of PEZA-registered economic zone enterprises, customs cargo clearance procedures and related operations.
d. Has the capacity to provide a 24x7 non-stop service;
e. Willing to adjust and further test their proposed solution to satisfy other requirements or perform related operations or processes that PEZA may decide to incorporate in its Import Permit processing function;
f. Willing to install and provide PEZA with access to the approved solution at no cost, as well as the database generated on all Import Permit applications processed.

"Provided, that the verification for the compliance by a VASP with these minimum qualifications shall include an evaluation of the following performance and capability indicators:

a. Three operating electronic/automated systems developed and installed by the VASP for client organizations, which the client organizations had formally acknowledged as effectively providing the solutions required, as specified in the service contract for the VASP's engagement;
b. In-house staff complement with relevant educational qualifications, experience in the fields of Enterprise Systems Design and Development, Software Applications Development, Database Architecture and Administration, Network Design and Administration, and IT Training; and
c. Formal or documented relationship with other IT organiza-tions with specialized expertise or capabilities relevant to the develop-ment and implementation of the eIPS.

"Compliance of the Proposed eIPS to PEZA Minimum Requirements. The eIPS should satisfy the minimum requirements, which shall form part of these guidelines. In addition, PEZA shall determine the effectiveness of the proposed eIPS in complying with the objectives of the Authority's Import Permit issuing function, through conduct of live test-processing of actual Import Permit applications of economic zone enterprises. The proposed eIPS should also be compatible with the requirements of the automated import cargo transfer system being developed by the Bureau of Customs as part of its computerization program."

Leo V. Morada has more than 20 years of professional IT management experience in the Philippine ports industry. He can be contacted at email address lmorada3f1@yahoo.com.

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Malaysian ICT Firm interested to recruit Filipino Staff

Portrade dotcom Bhd (Portrade) - a Malaysian company that develops, provides and manages technology app-lications for maritime port operators and related trading and port user community is currently looking for qualified candidates to fill up the position of Functional Analyst.
A maximum of five slots will be filled and are now open to interested Filipino IT professionals as well as those who want to embark on an IT career. The position is project-based engagement and may involve a maximum contract of two years.
Candidates must have the following qualifications:
¥ A Degree or Diploma in Accounting, Computer Science or Business Studies
¥ 2 to 3 years' working experience in an accounting environment preferably with experience in using established computerized accounting applications
¥ Have a keen interest in the design and implementation of computerized applications
In addition to the above qualifications, successful candidates must show good analytical and communication skills, ability to work independently, willingness to travel and be away from base office for an extended period of time. Having a good command of both written and spoken English is essential. Fresh graduates with good academic results are encouraged to apply.
Portrade is a Multimedia Super Corridor (MSC) status company and has been listed in the Malaysian technology stock exchange MESDAQ since 2003. It has offices in Kuala Lumpur and Kuching, Sarawak state. In the Philippines, company operations are handled by a subsidiary - Portrade Philippines.

Portrade's core technology solution - Integrated Port Management System (IPMS) - is a comprehensive enterprise resource management application for general cargo and container port operations used by several ports in East Malaysia as well as the Philippine Ports Authority.
How To Apply: Interested candidates are invited to submit their resume detailing working experiences, expected salary, contact telephone number, email address and a recent passport size photograph and email to this columnist: lmorada3f1@yahoo.com .
Shortlisted candidates will be interviewed onsite Manila during the 3rd or 4th week of October 2006.
BOC In Final Evaluation Of VASP Applications
The Bureau of Customs is currently at the final stage of evaluating applications for accreditation of value-added service providers (VASP).
BOC envisions the VASP as the first line of contact of port users for the purpose of undertaking a comprehensive range of transactions for customs processing under the Internet-based AsycudaWorld (e-Customs) system. These processes encompass electronic manifest, import declaration (formal, informal, warehousing, transhipment), payment of duties and taxes, export declaration, bonds management, raw materials liquidation, and online release.
Last May, BOC invited to a meeting at least five entities which - if they meet customs criteria - would most likely be accredited as VASP and therefore authorized to offer web-based services to port users and stakeholders conducting business with customs. Informed sources say that only three or four entities are now undergoing final evaluation.
PEZA Issues Latest Memo Order On Electronic Import System
PEZA recently issued Memorandum Order 2006-003 dated 11 September 2006 on the subject matter: Implementation of the PEZA Electronic Import Permit System (e-IPS) for Ta and Duty-Free Importations of Economic Zone Export-Producers and IT Enterprises.
It partly states that "the implementation of the PEZA e-IPS aims to simplify procedures and accelerate approval cycle time in the processing of applications for import shipments of PEZA-Registered Economic Zone Export Enterprises (EZ-EPs) and Information Technology Enterprises (ITEs). Specifically, the e-IPS will enable the EZ-EPs and ITEs to file electronic Import Permit application, pay the processing fees through electronic modes of payments and print system-generated electronic Import Permit. The implementation of the PEZA e-IP system is through the following VASPs which have been accredited by PEZA to date: E-Konek Pilipinas Inc. (E-Konek) and InterCommerce Network Services Inc. (INS).
"The e-IPS shall be implemented in the processing of import permit applications and release of the cargo initially for air cargo import shipments cleared through the Customs-PEZA Clearance Office (CPCO) at NAIA. Implementation of the PEZA e-IPS system at the other ports of entry e.g., Port of Manila, Manila International Container Port, Port of Cebu, shall be covered by a separate PEZA Memorandum Order."
Implementing procedure of the e-IPS System is a seven-step process: List of Importables, Enrolment with Accredited VASPs, Enrolment for Payment of PEZA Fees, Connectivity Test and Users Training, Electronic Filing of Import Permit, Release of Goods at Port of Entry, and Delivery of the Goods to the Zone.
PEZA-accredited e-Payment banks are Land Bank, Rizal Commercial Banking Corp, and Union Bank (accreditation in process).


Leo V. Morada has more than 20 years of professional IT management experience in the Philippine ports industry. He can be contacted at email address lmorada3f1@yahoo.com

 

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