INTEGRATED FOREIGN TRADE SYSTEM

.......... What is IFTS and Why?
.......... IFTS - Main Principles
.......... IFTS Structure
..............ITFS Institutions
..............Air Cargo System
..............Financial System
..............Maritime Cargo System
..............Customs Interfaces System
..............Information System

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A. What is IFTS and Why?

On May 25, 1987, the Economic Affairs committee of
the Israeli Cabinet decided to establish an integrated
foreign trade system.
According to the above resolution all Israeli
institutions that are part of the import - export
processes will participate in this system.

IFTS's Main Objectives are:

Founding an independent non - profit organization
....that will serve as a link between importers, exporters
....public and private systems, commercial attaches and
....international systems.

Providing an efficient and wide range of services to
....those dealing in import and export, based on
....sophisticated computer systems and advanced
....technologies.

Aiding those involved in the foreign trade processes
....to perform their role in the most efficient manner.

Providing comprehensive, up-to-date, accessible and
....useful information in the foreign trade field to
....authorized parties and systems.


The system will become national and will serve as the
....Israeli national foreign trade information system.



B. IFTS - Main Principles

Based on the government resolution, IFTS was
established and functions according to the following
principles:

IFTS initiates and encourages the establishment of
...community systems according to concepts it defines.

At present, IFTS is focusing on the following
...subjects:

......1. Communications
..... 2. EDI (Electronic Data Interchange),
.........data dictionary
..... 3. Customs
..... 4. Air cargo
..... 5. Maritime cargo
..... 6. Finance
..... 7. Information


IFTS acts independently in each of the above, while
constantly considering the overall view of the other
areas.

The main objective in establishing the IFTS system is
to follow the world-wide trend toward minimizing
paperwork and performing all import and export
documentation electronically, in accordance with
international standards (using Electronic Data
interchange technology).

IFTS has established a data dictionary, and is
responsible for its maintenance and for its distribution
to the member organizations. The data dictionary is
based on the UN data dictionary and is adapted to the
international standards for transferring electronic
messages (UN/EDIFACT). The dictionary serves as
the basis for IFT?S systems and for the computerized
systems of private and public foreign organizations.


IFTS Participates in and is Responsible for the
following:

Defining the requirements for the IFTS systems

Defining work procedures and interfaces between
...IFTS members.

Aid and counsel in the operation of the interfaces and
...IFTS systems.

Promoting EDI by explaining and encouraging its use

Ongoing communication with international
...communities and organizations, for the study and
...implementation of their recommendations in IFTS.



C. IFTS Structure

List of IFTS Member Organizations According to the
Cabinet Resolution (the following list is subject to
changes due to organizational restructuring).

---

Ministry of Industry and Commerce
Customs and VAT
Ministry of Finance - Budget Department
Airport Authority
Ministry of Agriculture
Ministry of Economics and Planning
Bank of Israel
Association of Israeli Banks
ELAL Airlines - representing the airlines
Ministry of Transportation
Israeli Federation of Freight Forwarders
...and Customs Clearing Agents
Maman - Cargo Terminals and Handling LTD
Manufacturers Association of Israel
Central Bureau of Statistics
Federation of Israel Chambers of Commerce
Israeli Ports and Railways Authority
Israeli Chamber of Shipping
Israel Export Institute
Ministry of Energy - The National Center
...for Technological Data
The Industrial Cooperation Authority
The Israel Foreign Trade Risks Insurance
...Corporation Ltd.

---

IFTS Institutions


IFTS directorate

Executive Committee - The chairman is Mr. David
Shimoni, deputy director of Customs and VAT.

Finance, import, export and communication
committees

Work groups dealing with various areas (air and
maritime cargo, finance, customs etc).

The director of IFTS is Mr. Jacob Salman.

Taldor Computer Systems Ltd. who won the tender in
supplies the professional staff that oversees ,1988
IFTS ongoing activity.




Air Cargo System

System Scope:
Transportation of cargo which leaves or enters Israel
by air, from the exporter to the importer.
The system deals with the definition of the relevant
processes, the characterization of the messages
transferred between the parties involved and the
implementation of these messages using EDI
technology.




Financial System

System Scope:

Financing and funds transfer involved in foreign trade
transactions between the importer / exporter and the
bank, integrated with the activities of the authorities
controlling foreign currency.
The system deals with the definition of the relevant
processes, the characterization of the messages
transferred between the parties involved and the
implementation of these messages using EDI
technology.


Pilot Projects:

Customs - bank: Value Added Tax (VAT) loans.




Maritime Cargo System

System Scope:

Transportation of cargo which leaves or enters Israel
by sea, from the exporter to the importer.
The system deals with the definition of the relevant
processes, the characterization of the messages
transferred between the parties involved and the
implementation of these messages using EDI
technology.

Pilot Projects:
- Ports and Railways Authority - shipping agent -
customs: transfer of manifests

- Ports and Railways Authority - customs agent
customs: transfer of cargo status updates




Customs Interfaces System

System Scope:

Handling of links between all organizations involved
in tax collection and government control of the import
and export of goods.
The system deals with the definition of the relevant
processes, the characterization of the messages
transferred between the parties involved and the
implementation of these messages using EDI
technology.


Pilot Projects:

Israeli Standards Institute - customs agents.
Customs - ministry of Industry and Commerce.




Information System

System Scope:

Collection of data concerning foreign trade in Israel,
in export and import processes, and supplying
information services to all system users.
The data handled in the system is that which is needed
for performing the regular activities of the various
parties involved in foreign trade (such as statistical
data, rates, tariffs and international tables).

---

Legal Committee

A legal committee, headed by the Deputy Government
Legal Advisor, has been established by IFTS. The
committee was appointed by the Minister of Justice
and its members are the legal advisors of the
following bodies:

Ministry of Justice

Ministry of Finance

Ministry of Industry and Commerce

Bank of Israel


The legal committee handles the following issues:


Examination of the legal aspects concerning the
..implementation of EDI and the effects of paperless
..trade at the national level, in accordance with similar
..activities performed at the international level

Proposal of required legislation for implementing EDI

Examining intermediate solutions for EDI
..implementation until amendment of the current
..legislation is completed


Exporters/Importers - Freight Forwards / Customs
..Agents Forum

Forum Scope:

Handling the links between exporters/importers and
freight forwarders/customs agents by defining uniform
and standard processes.
The forum deals with the definition of the relevant
processes, the characterization of the messages
transferred between the parties involved and the
implementation of these messages using EDI
technology.

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