FREIGHT SOFTWARE GUIDE\\\


Issue 4 2019 - Freight Business Journal


35


CDS and Brexit keep software firms on their toes


The 12 months since the publication of the last FBJ Soſtware Guide has possibly been the busiest year for soſtware houses and system providers, writes Gordon Tutt, outgoing chairman of the Association of Freight Soſtware Suppliers (AFSS).


As well as meeting the growing needs of their customers for more


innovation and


automation, we have all been faced with the many challenges that leaving the EU has necessitated. Most AFSS members have


also been totally occupied in developing their product in preparation for the introduction of the Customs Declaration Service (CDS). This has required significant time and effort in both making the changes needed to their soſtware in order to comply with the Union Customs Code (UCC) and the new data sets, as well as the new UCC messages supported by the CDS system. Development of any new


system also requires time and effort preparing for testing of the soſtware. In the case of CDS, this has required the testing of both the CDS system and the trader’s soſtware system. This cannot be undertaken in isolation. The ultimate customer, that is, the person undertaking the declaration must be satisfied that the service provided by CDS meets both their operational needs and service levels. At a critical


period in the


CDS development some of the resources allocated


the changes to CDS


had to be diverted to work on


introduced


for the UK’s exit from the EU. There were several technical


changes required to be in place in the eventuality that no deal (Day One No Deal – D1ND) was reached with the EU and more importantly within our own Parliament. Many soſtware houses


diverted their development teams to meet the challenges of the initial D1ND timeline and the multiple system changes that would have been required had we leſt the EU at the end of March. Although these changes were not required following the extension date to Article 50, the work has been completed and remains available should it be required in October. AFSS and its members have


also been helping the many companies who were faced with the prospect of acquiring their soſtware and systems. These would be needed should they undertake import, export and transit declarations for goods moving between the UK and the EU. For many companies that had traded almost exclusively within the EU this posed a major challenge. Establishing the costs involved in setting up the resources needed in order to continue to trade with the EU has been extremely difficult. In some cases, the preparatory


work involved in acquiring these systems has demonstrated the savings that are possible using automation for customs


declaration. It has been shown that efficiencies can be achieved by avoiding data input, where the data already exists in business systems. These benefits are not only for EU business but also extend to global trading. It was recognised by some companies that developing new business beyond the EU could be achieved at little extra cost by using the soſtware acquired for any future EU declarations.


NCTS The soſtware and systems


industry is also preparing for many other changes being introduced in the next few years including the upgrade to the New Computerised Transit System (NCTS) and the Import Control System (ICS). Both EU systems are being upgraded as part of the changes included in TAXUD’s Multi Annual Strategic Plan. The UK will continue to use both systems irrespective of the outcome of any UK-EU arrangements. The changes introduced to ICS will enable the trade to provide their own consignment data directly into ICS and avoid having to pass this to the carrier, as is oſten the case with the current system. The upgrade to ICS will initially be introduced for postal and express business and then rolled out to other modes of transport


as defined in TAXUD’s project plans. Developers are also seeking


to improve their systems in many other ways. The migration from fixed to cloud servers has been one area that many customers have sought in the last few years. The ability to share data along the distribution chain is also another area that has been subject to ongoing developments. This enables the reduction in manual data input and avoids possible input errors thus improving data compliance.


Blockchain


Towards the latter part of 2018 a small working group of AFSS members met, together with a major trade association to examine any future requirements for the freight industry. The group focused on how Blockchain technology and artificial intelligence could be utilised and help improve the industry. Both are already in common use within industry and being used to bring about efficiencies and improvements in productivity, the avoidance of data entry being one key factor when achieving cost savings. The AFSS Working Group is


planning to meet again during 2019 to further examine how new technical initiatives can be


used to deliver benefits to the freight and logistics industry. Government departments and agencies are also looking at their options to use business data for the mutual benefit of Government and industry. It is very likely that they may drive further technical changes in the freight and logistics sector. AFSS


has become an


important means by which these departments and agencies can channel their communication and, more critically,


open


dialogue with the soſtware and system providers. AFSS is also working closely


within the industry to explore the


opportunities that are


available utilising the IATA ‘One Record’ initiative. This will replace the current IATA Cargo XML and Cargo IMP schemes supported by many soſtware houses in order to pass data between the trade and carriers. The ‘One Record’ system should bring data distribution into the 21st Century and avoid some of those difficulties that have prevented the electronic airwaybill from achieving its full potential. It will also open communications


to a much


wider trade population than is currently possible using the current messaging schemes. AFSS is supporting the call for the UK to be one of the pilots for the scheme. We believe it


important that the UK has an opportunity to evaluate and implement ‘One Record’ in the UK at the earliest opportunity.


AFSS members


Within AFSS we have also seen several changes to our members. We were pleased to have two new companies join within the last 12 months. Interest in membership continues to grow as the benefits of being part of our association increase year on year. With so many changes to regulations now having an impact on the soſtware and system developers it is important that the views and opinions of the industry can be conveyed to those legislating the changes. I will close by introducing


you to Stephen Bartlett who has recently taken over as chairman of AFSS. He was appointed to the role in May following my announcement at our AFSS autumn general meeting in 2018 that I would retire in 2019. Steve has a wide IT knowledge and has also a depth of experience in new technology, project development and planning. Contact details for AFSS and our member companies including links to their own websites can be found at:


www.afss.org.uk


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