2010

1. 2010

2. Introduction References Cooperation opportunity

3. Establishment I. Introduction CUPIA, a non profit organization established by the KCS, has experts in customs and IT providing various consulting/development services. • Non-Profit Organization established by Korea Customs Service (KCS) • Develop and operate Korea Customs’ e-clearance system UNI-PASS Establishment • Customs Specialists (Risk management, Valuation, Cargo…) • IT experts (Network, Software, Hardware) • BPR/ISP Consultants Human resources • Operation and Maintenance for Customs system • Consulting on IT, customs business process & legal framework redesigning • Supervision, procurement consulting support for customs system development • Customs system development Major Services

4. Domestic references II. References CUPIA is domestically active providing consulting services and performing system development for the Korea Customs Service. Consulting • WCO Customs Data Model (2007) • Data exchange with Philippine and Belgium (2008) • AEO (2008) • Air cargo e-Freight (2008) • Importer/exporter compliance evaluation (2009) • 21st Century BPR/ISP for KCS (2009) • Customs Data Model mgt system (2007) • RFID system (2008~2009) • Data exchange system (2008~2009) • AEO management system (2009) • Single Window system 2nd Step (2009) • Integrated risk management system (2009) System Development

5. Overseas references II. References CUPIA has references in S. American countries such as the Dominican Republic, Costa Rica and Guatemala. • BPR/ISP Consulting service, 2007 • 1st Implementation supervision, 2008 • 2nd Implementation supervision, 2009 Dominican Republic Costa Rica • IT/Business Consulting service for audit system,2009 (AS-IS, TO-BE, Action Plan) • SAT Customs Modernization Feasibility Study, 2007~2008 (AS-IS, TO-BE, Action Plan) • SAT Risk Management Feasibility Study,2008~2009 (AS-IS, TO-BE, Action Plan) • Developing Risk Management and Data Warehouse system (2009.1 ~ ) Guatemala

6. Overseas references II. References CUPIA has references in Asian countries such as the Laos, Mongolia and Nepal. • Laos Customs Modernization Feasibility Study, 2008 (AS-IS, TO-BE, Action Plan) • Consulting for transit, warehouse mgnt., Duty Free Shop mgnt. system Laos Mongolia • Procurement Feasibility Study, 2007 • Nepal Customs Modernization Feasibility Study, 2007 (AS-IS, TO-BE, Action Plan) Nepal

7. Overseas references II. References CUPIA has references in African countries such as Kenya and Tanzania. Kenya • KRA Customs Modernization Feasibility Study, 2007 (AS-IS, TO-BE, Action Plan) • TRA Customs Modernization Feasibility Study, 2008 (AS-IS, TO-BE, Action Plan) Tanzania

8. Cooperation opportunity III. Cooperation opportunity CUPIA can cooperate with you providing feasibility study, consulting services and system development. Consulting SystemDevelopment Feasibility Study • Customs modernization • System enhancement • New system implementation • Business process re-engineering • Information strategy planning • Procurement and supervision for system development • Systemenhancement • New system implementation • Operation and maintenance

9. Introduction Features System structure Benefits Implementation Plan

10. Brand name UNI-PASS I. Introduction UNI-PASS stands for unified, universal, unique, fast and efficient clearance system. Currently the system is benchmarked in various countries. • Brand name of Korea Customs Service’s information system that support for all customs procedures (clearance, cargo, collection, and etc ) • Unified, Universal, Unique. • One-stop service point providing every service, accessible from anywhere • Fast & efficient clearance service

11. Development background I. Introduction UNI-PASS development dates back to 1974 starting from simple statistic system and is in continuous development. 1974 Simple Statistic Ubiquitous Clearance 2008 Internet Clearance Risk Management 2005 EDI Auto Clearance • Integrated risk management (‘07) • AEO (‘08) 2002 1992 • Internet Clearance portal(‘04) • Internet collection and drawback (‘05) • Single Window (‘05) • BSC (‘05) • CRM (‘06) • Internet cargo (‘07) • Risk management enhancement (‘06) SimpleOn-line • Data center integration (‘01) • Customs Data warehouse (‘01) • Knowledge management system (‘01) • Risk management (‘03) 1990 • Basic plan for EDI automation (’92) • Export clearance (‘94) • Import clearance (‘96) • Cargo system (‘97) • P/L Clearance (‘98) • Investigation information system (‘99) • Air cargo online system (‘90) • Statistic system (‘74)

12. Features II. Features UNI-PASS is highly flexible, compatible and uses advanced information technology to provide a high quality customs system. Advanced Information Technology High Flexibility Compatibility Up-to-date web based technology (Ajax, DW) Flexible system architecture Customizable Standard data exchange technology (XML) Expandable to add new features Open source framework Applicable to any language & currency User-friendly screen design High security (PKI) Sustainable & scalable architecture Revised KyotoConventions WCO Data Model ASEAN/EU/S. AmericaSAD ISO/IEC Global Standardformats UN/EDIFACT Global Standard formats WCO’s Harmonized Commodity and Coding System

13. Clearance Management Cargo Management Import Clearance Import Cargo Transit Export Clearance Export Cargo CLIS Duty collection Information management Single window Administration system Groupware Customer Relationship Management Risk management Knowledge management Conveyance single window Customs data warehouse Investigation and Surveillance Human Resource Management Performance management Clearance single window Post Audit APIS Structure overview III. System structure UNI-PASS can be divided into: single window, clearance mgt system, cargo mgt system, information mgt system and the administration system.

14. Single Window III. System structure UNI-PASS single window provides a one-stop service for declarers during the cargo arrival and clearance stage. Single Window Arrival/departure reporting agencies Arrival/ departure report Arrival/ departure report Conveyance Single Window National Quarantine Service Notification Approval Shipping lines Airlines Forwarder Immigration Bureau, MOJ … Clearance Single Window 5 agencies Verification confirmation Submit declaration Clearance customs formalities agencies Approval Clearance results Importer Exporter Customs Broker Declaration/arrival Approval results Food and Drug Administration Notification Natl’ Fisheries Products Quality Inspection Service Customs Administration System … 13 agencies

15. Import Cargo III. System structure UNI-PASS Import Cargo provides a cargo information management for all cargo movement from arrival at the port to release Unloading Inventory Management Bonded Transportation Manifest audit Bonded Transportation Bonded Warehouse Bonded Warehouse Forwarder Shipping Line Arrival Border Carry in & out Bonded Transportation Bonded Warehouse Carry in & out Import Cargo system ImportClearance Carry in & out report Approval Approval Import Manifest Approval Carry in & out report Notification Bonded Transporta-tion report Airline Manifest Master B/LHouse B/L Carry out Carry in B/L info MRN Cargo Information Share

16. Import Clearance III. System structure UNI-PASS Import Clearance provides a paperless declaration for declarers during all clearance stages. P/L Inspection Import Approval PaymentManagement Approval Paper Inspection Inspectorassign PhysicalInspection Declarationaccept Quarantines Declarant Consignor Bonded Warehouse BANK Import Declaration Inspection Duty Payment Approval Import Clearance system Internet • Cargo Info • Clearance Info • Payment notification info • Statistics Information Provide Verification Notification Notification Tax notification search Receipt Approval Notification Release report Classification Valuation Import declaration Release goods Duty Payment

17. Export Cargo & Clearance III. System structure Export Declaration ExportApproval Carry into loading area DepartureReport Departure approval UNI-PASS Export Cargo & Clearance provides a simplified procedures to increase competitiveness of local company. Inspectorassign Paper Inspection Approval Manifest submission PhysicalInspection Departure Approval request P/L Inspection Quarantines Declarant Declarant Forwarder Shipping Line Cargo Handling Request Manifest Master B/LHouse B/L B/L info MRN Airline Result acknowledgement Export Manifest Export Clearance system Export Cargo Sys Export Declaration Internet Shipment Management Declaration Number Link • Clearance Info • Departure info • Loading info Approval Information Provide Approval VerificationRequest

18. Post Audit III. System structure UNI-PASS Post Audit provides Individual audit and company audit functions for customs officer after the declaration. Audit Record Audit Opinion Payment confirmation Payment notification Result report Audit R/S Company Selection Information Analysis Payment Notification Record result Payment confirmation Document or Site Audit Importer BANK Importer BANK Item Audit Company Audit Post Audit Sys Post Audit Sys Payment Notification Payment Notification Payment Payment Report Report

19. Risk Management III. System structure UNI-PASS Risk Management provides a information analysis service for cargo selectivity, clearance selectivity, audit selectivity and etc. Drawback Review Origin supplier Price Cargo Import CDW Declaration Data   Inspection Selectivity *RM: Risk Management Management Criteria *CDW: Customs Data Warehouse Register Criteria Customer Official Reflect Criteria ApplyCriteria Analysis statistics AccumulateOutput Declaration

20. Advanced Passenger Information System III. System structure Passenger data (Pre-arrival) Selection for inspection Review of selection Arrival confirmation (Arrival info) Inspection UNI-PASS APIS provides a high risk passenger selection service for airport passenger. APIS Airline Arrival info MoJ Review the selection Decide inspection target Passenger list info (Pre-arrival) Inspection exempted Passenger Info Arrival report Speedy clearance Selection Criteria Sort high-risk passenger Inspection of personal effects Immigration info Control of high-risk passengers *APIS: Advanced Passenger Information System

21. System architecture III. System structure UNI-PASS system architecture is divided into 3 zones: Internal zone, Shared zone, and External Zone. L4 L4 External Zone Accrediting Center Public Service Applicant Firewall L4 Spam Sniper Shared Zone (DMZ) Search Homepage Web Clearance WEB Certification Server Mail Firewall Mutual backup SSO Internal zone Clearance Portal Clearance WAS Doc. Distribution High-speed Disk Backup Devices Mutual Backup Clearance DB Clearance DB

22. Software architecture III. System structure UNI-PASS has been developed by applying EJB on the base of J2EE component. System Component Architecture Import Cargo Import Enterprise JAVA Architecture e-Clearance Common info Firewall DB Server Export Drawback Export Cargo JDBC Entity Bean Web Application server/web server Session Bean JSP HTML Servlet Internet/ Intranet User

23. Benefits IV. Benefits UNI-PASS has improved customs administration, maximized productivity and raise efficiency in clearance and trade. Improve satisfaction Maximize productivity Raise efficiency • Increase revenue • Raise transparency and anti-corruption (clean customs) • One-stop service • Improve work environment and seek convenience • Create e-Customs flexible to e-Biz & e-Trade • Build a foundation for inter-agency information sharing structure and international trade gateway • Enhance trade competitiveness by reducing clearance work time • Create synergy by reusing national clearance information • Enhance corporate & national competitiveness

24. Benefits IV. Benefits In case of Korea, 3.8 million USD/year is saved by ROI research from NIA 2006 and one customs officer is handling $127 million cargo. Time Saving Cost Saving • Complete Clearance • Internet / EDI Clearance Network • Simplification • Smooth Logistics Logistics 2 billion USD + 1 day Export - 2 mins Increase Productivities& National Competitiveness Office Supplies 55 Million USD -1.5 hrs +2 days Import Customs 34 Million USD - 5.2 hrs + 2 days Drawback 48 Million USD Taxes + 4 hrs Tax Payment - 10 mins Reduce 130 Manpower