Several elements are involved in making the transition to DMS 4.1. This includes:
- Check of current situation (processes, flows, authorizations, responsibilities)
- Impact analysis on DMS 4.1
- Functional and IT Requirements
- Selection of Customs automation software (provider)
- Capacity and expertise
- Budget
In this last article I will tell you more about budget elements.
Budget elements
As mentioned in the previous blogs, several stakeholders of your organization have been involved during the exploring phase of the DMS project. Now it’s time to allocate budget.
In my latest blog I guide your through the vendor process of the customs software selection.
Bases on the intake sessions and workshops, your software provider should be able to provide you a final budget indication for the complete implementation.
If this is still not the case, make sure that that you have agreed on certain budge amounts for the regular setup as agreed on.
There are several software use licenses in the market available. The most important thing from a budget perspective is that you need to understand the offered one off (set up and implementation fees) and the variable (running) fees, the last one is regularly depending on volumes of declarations or transactions and based on a pay for use principle.
The third budget element which may be important is a budget component for add-ons or small adjustments. Companies which have worked for a long time with a customized (GPA) solution might need small add-ons, such as a report generator or customized reports.
If your customized requirement is not available in the new solution, perhaps you need to do some tasks manually for the time being, as long as the work around or new feature is under construction. It is also useful to review current procedures and ask yourself the question, why you are filing or reporting certain declarations or bonded warehouse transactions? I see often that old behaviors stay in the procedures, while the new electronic processes don not need al these workarounds and archiving procedures.
I described the budget challenges for allocation of resources and expertise already in my latest blog. However, I would like to stress that planning is key in the coming period.
This was the last blog in a range six DMS topics. In the next newsletters I will continue with updates regarding roll out of DMS and the lessons learnt from the migrations.
The DMS 4.0 migration will start in the coming period and Customs will start with audit procedures for the DMS 4.1 declarers to verify of these companies are still in the position to meet the (AEO) requirements for the Bonded Warehouse and IIAA authorization. Prepare yourself on these audits and make sure that your AEO maintenance is on track to move forward to the DMS implementation.
Try to find out how you can have a flexible buffer for the roll out of DMS and think over if you are capable with the team (from a capacity and expertise perspective) to manage the DMS project and the final execution of the new DMS process.
I wish you good luck with al these challenges in the coming period.
Pincvision new DMS approach
Pincvision has announced a partnership with AEB software (www.AEB.com) and based on that we can offer you a full outsourcing model including use of software and the complete execution of the DMS declaration process, based on your customs authorizations. Furthermore, the existing data monitoring process will stay available for the upcoming DMS processes.
Would you first like to know what impact the transition to DMS has on your current processes? The outcome of our DMS Scan tells you exactly where you stand and what you have to do. Of course, we are happy to help you to make the migration as smooth as possible.
Would you like to know more about this? Then let's get acquainted and schedule an appointment. You can reach me by mail: p.italiaander@pincvision.com, or telephone +31(0)88-4321815.
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Peter Italiaander
Head of Customs & Trade Affairs
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