MNSW: A detailed look at the unified platform for cross-border trade

During the User Acceptance Testing (UAT) session for the Maldives National Single Window (MNSW). (Photo: Tradenet Maldives)

On July 22^nd, it was reported that the Tradenet Maldives is gearing to launch an electronic platform for international trade under the Maldives National Single Window (MNSW) initiative.

This platform, scheduled for an August 2024 launch, aims to facilitate businesses and individuals to electronically submit all import, export, and transit-related documents subsequently eliminating the need to interact with multiple entities and reducing paperwork.

While the news provided brief introduction of a promising digital innovation with the eventual aim of economic improvement, there was still more details related to the project’s developer, Tradenet Maldives, and its initiative, MNSW, that needs to be explored.

In response to an RTI request, Tradenet Maldives extended a document providing comprehensive insight into the corporation’s initiative.

Introduction of MNSW

The Maldives National Single Window (MNSW) is touted as a major step towards the modernization of international trade processes and procedures in the Maldives.

The online and digital system, MNSW, is designed to provide a single, unified platform for submitting and exchanging trade documents and data. The trade information will be accessible via the Trader portal, which will be launched with the MNSW system.

Tradenet Maldives states this government-led initiative, funded by the Asian Development Bank (ADB), aims to “streamline international trade processes and procedures” and reduce time and costs for both government agencies and private sector stakeholders involved in cross-border trade.

The MNSW will serve as a centralized messaging hub for all trade-related transactions, connecting various stakeholders such as government agencies, importers, exporters, customs brokers, shipping agents, and freight forwarders.

“By integrating diverse trade-related processes and actors, the MNSW is poised to eliminate inefficiencies present in the current system,” highlights Tradenet.

The primary purpose of the MNSW is to reduce red-tape, administrative burdens and enhance process efficiency. The system also aims to facilitate the electronic submission of documents and data, enable real-time information sharing, and automate “many manual tasks currently required in trade procedures”.

The User Acceptance Testing (UAT) is the final stage of the software testing allowing real users to check if system works as expected and provide feedback on any issues they experience. (Photo: Tradenet Maldives)

Tradenet also highlights that the “MNSW” is the project’s working title, and will be launched under an “exciting new brand name.”

The first phase of the system, currently at testing phase, is set to be launched in early September. The official launch date will be announced mid-August upon completion of the User Acceptance Testing (UAT) phase.

Issues, Challenges, Foundations and Opportunities

The existing systems, Tradenet adds, are highly fragmented and lacks integration with each regulatory agency utilizing different software to handle specific tasks.

Maldives Customs Service for instance, employs ASYCUDAWORLD to lodge import and export declarations, whereas other agencies manage licenses and permits through various other platforms.

“This fragmentation not only makes the process cumbersome for traders but also increases the risk of delays and errors,” highlights Tradenet. The same information is repetitively entered or uploaded across different systems before the actual import or export process is greenlit. Meaning that importers and exporters have to work around significant administrative red-tape before getting actual work done.

This fragmentation also constrains the capacity of border agencies to implement coordinated border and risk management practices efficiently.

Besides this, the maritime trade faces other challenges, such as the long cargo dwell times at the Male’ commercial harbor, estimated at 12 days compared to the international average of five days. Moreover, airport exports face similar delays in issuing catch certificates for large consignments and congestion during peak airport hours.

Despite the setbacks, the foundation of technological use in current trade processes and procedures are still deemed promising, as online payments for customs duties and some electronic document exchanges symbolizes the steps taken towards digital transformation.

Regardless, these technologies or systems are not fully integrated right now, which has resulted in a system that “fails to capitalize on the potential efficiencies” of a unified system.

The Need for the MNSW

The MNSW’s introduction is aimed at addressing border inefficiencies impeding cross-border trade, and by consolidating various trade transactions via a unified single platform, this initiative seeks to streamline the entire trade processes and procedures by significantly reducing transaction processing time and lowering associated costs, Tradenet said.

This unified approach will improve accuracy by minimizing the need for repetitive data entry, which would also reduce the likelihood of errors and enhance transparency across all stages of the trade process since all stakeholders will have access to real-time information and a “clear view of the procedural steps.”

“This consolidated system will foster a more efficient, predictable, and user-friendly trade environment, ultimately strengthening the Maldives’ position in the global market,” Tradenet writes.

Border agencies including the Maldives Customs Service and Maldives Ports Limited (MPL) took part in the User Acceptance Testing (UAT) stage to become familiar with the platform and make suggestions based on their user experience. (Photo: Tradenet Maldives)

Moreover, Maldives is a member of the World Trade Organization (WTO) and a signatory to the WTO Trade Facilitation Agreement (TFA), making it “highly recommended” for the member countries to implement single window environments to facilitate paperless trade at the border.

The successful implementation of the MNSW will also enable Maldives to fully comply with Article 10.4 of the TFA, improving the country’s TFA implementation status.

Additionally, this unified platform will also allow Maldives, as a member of the International Maritime Organization (IMO), to comply with the obligations of the FAL Convention, which came into effect on January 1, 2024.

Development Progress

The single window environment initiative began following the 9^th Ministerial Conference held in Bali in 2013, where the WTO Trade Facilitation Agreement (FTA) was adopted by member countries. Preparatory work on formulating the MNSW project, with assistance from the ADB, was initiated in 2017.

The project was approved by ADB in May 2019 and came into effect in October of the same year. The first turnkey contract was signed on December 30, 2019, but faced implementation challenges, leading to its termination in October 11, 2020.

Following a three-year hiatus, the project was restarted in September 2023 with the onboarding of CrimsonLogic as the new Turnkey Vendor.

The project is led by the Ministry of Economic Development and Trade and implemented as a collaborative effort between Tradenet Maldives as the operator of the MNSW system. Besides this, all border agencies, including Maldives Customs Service, Maldives Ports Limited (MPL), and CrimsonLogic are working synergistically to ensure the successful implementation of the project.

Benefits of the MNSW

The MNSW will have broad positive impacts on the Maldives as whole including;