Integrated Management of Trade Information Flows:

What must a country do?

United Nations Economic Commission for Europe

Mario Apostolov, Regional Adviser, UNECE Trade mario.apostolov@unece.org

UNECE support for trade facilitation and PRO committees

• Over 40 years of work on trade facilitation standards: UNLK, codes, EDIFACT, etc.

• Recommendation 4: PRO Committees

http://www.unece.org/cefact/rec/rec04en.htm• A network in SEE – SECI PRO Committees

Create a regional network (commitment – the SECI model)

Link to projects

UNECE support for trade facilitation and PRO committees

• Support for PRO committees: Czech-UNECE technical assistance project: internship in CZ, TF seminars in the region

Contact: mario.apostolov@unece.org

The importance of managing trade information flows

• Efficiency -> basic trade facilitation (cutting red tape, faster and efficient movement of trade information and goods)

• Security -> improving information gathering is the key

Accepted standards to be used

• National standards for trade documents (usually paper-based documentary procedures)

• UN Layout Key for trade documents (ISO3535: Data Carrier & Formatting: Forms Design Sheet)

• UN Trade Data Elements Directory (UN/TDED) (ISO7372, endorsed by WCO)

• UN Code for ports and other locations (LOCODE)• Other codes• UN/EDIFACT (the only global standard for EDI)• Use of standard software platforms

A key slide

Longer-term objective: integrated management of trade information flows

Single Window

Aligned electronic trade documents

e.g.UNeDocs

Submission of trade data in advance of actual arrival of goods

Exchange of advance info across borders

The effects: • more efficient trade: cutting red tape (ultimate goal of trade facilitation)• more security through better management of information supply chains within countries and across borders –> better risk analysis• integration with Europe [SAD is based on UNLK]

Longer-term objective: UNeDocs

• Objective: Open migration path from paper to electronic document environment

• Based on accepted trade standards for paper documents (national and int’l)

• Potential to use ICT for development and improving security of supply chains

Creating access through technology

Creating access through technologyOpen Source:XML and Web Services

Creating access through technology Adobe Interactive Paper

Security through technologyCooperation UPU and UNECE on digital

signatures for digital Documents

Selecting the electronic ‘Postmark’ tab to validate signature and document integrity.

Information and contacts: www.UNeDocs.orgjean.kubler@unece.org;markus.pikart@unece.org

UNeDocs: 4 Phases

I. Better Paper DocumentsII. Document Data ModelsIII. Digital DocumentsIV. Systems: Automated document processing, Single

electronic Window, electronic Transport Corridors…

Tasks -> Output -> Benefits -> UNeDocs support

UNeDocs Phase 1 Better Paper

Output• Set of aligned national trade documents on paper• Box Completion Guidelines• Both endorsed by key stakeholders• Published on the WebTasks

OrganizationHigh-level Steering Committee (HLSC) of main stake holdersExpert Group to prepare the National Documents

Documents• harmonize documents (common document set in SEE ?)• harmonize data requirements (interagency committee)• align documents with international standards Benefits:

Efficient paper document system, cutting red tape; harmonization of cross border documetary procedures

UNeDocs support: capacity building; Set aligned trade documents (IDS)

UNeDocs Phase 2Document Data Models

Output• Data model for national documents• Based on international standards (UNTDED, WCO data model)• Technology/syntax independent• Detailed, agreed definition of the data contents of documentsTasks

OrganizationHLSC of main stake holdersNat. Document Work Group

Documents• UML data model for each documentBenefits

Readiness for automation of procedures, improving business processes, cross border facilitation

UNeDocs support: IDS Generic data models, Tools & technologies, expertise & capacity building; regional

harmonization

UNeDocs Phase 3digital Paper

Output• EDIFACT Message Implementation Guidelines (optional)• UNeDocs XML documentsTasks

OrganizationNat. Document Work Group

Documents• XML: semi automated generation based on data modelBenefits

Start with electronic Business; computerization of proceduresUNeDocs support:

Tools, capacity building, standards

UNeDocs Phase 4Leveraging digital Documents

Output• Advance exchange of Information• Electronic Single Windows• Sector for Digital Services (ex. UNeDocs Web Services for digital Documents) • eBusiness/eGovernance PoliciesTasks

OrganizationHLSC of main stake holders

Integrate into IT system of stakeholders, Last mile connectivity,

Benefits

Fundament for any automation of documentary procedures

UNeDocs support:

Capacity building, last mile technologies, Reseach & Development: UNeDocs Software Extensions for the IDS; UNeDocs Web Services for Digital Documents, UNeDocs/UPU digital signatures

Harmonization – a key

• If countries harmonize documentary and data requirements with international standards (or create a common document set), UNECE can help with tools – a project to gather the documents and assess their alignment.

• Political will needed – support from existing structures (TRACECA, PRO Cttees, etc) and the donors – EU, World Bank, US, private sector.

The choice of each country – what they want to do

TRACECA

E-Check-Fiche

Harmonizationof procedures Where am I ?

How can I improve ?Who can do it ?

Countries can be on different steps of the ladder. They must choose what they want

UNECE

UNeDocs

UNLK

Capacity building

What a country should do to prepare for a pilot project

1. create a national e-document strategic vision2. make a review of the UNeDocs documents3. focus on one or two key documents4. investigate feasibility for cross border exchange of

electronic documents5. establish and/or strengthen cooperation with

international organizations6. build support for pilot project & create a data model

Before starting implementation – financing and donor support should be guaranteed, and a resource plan developed.

Expected benefits

• Efficient supply of information for managing supply chains

• Scalable to user requirements • Compatible with existing

procedures and regulation• Security of investments

Longer-term objective: Single WindowDefinition (from UN/CEFACT draft Recommendation) • Single Window – “a facility that allows parties

involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements.”

• If information is electronic – electronic SW (not obligatory), individual data elements should only be submitted once.

• UN/CEFACT will adopt a Recommendation and Guidelines on SW in summer 2004 (text available)

For an electronic Single Window one needs:

• Well defined documents. • Description of the required information• Electronic documents

This is the link to UNeDocs

Benefits from a Single WindowFor government (both lead agencies and other agencies)• More effective and efficient deployment of resources• Correct (and often increased) revenue yield• Improved trader compliance• Enhanced security (risk profiling & management) • Increased integrity and transparencyFor trade • Cutting cost through reducing delays• Faster clearance and release• Predictable application and explanation of rules• More effective and efficient implementation of rules• Increased transparency

Most common model of a Single Window

Electronic

Authority 3

SingleAuthority

Authority 1

Authority 2

Authority 4

3-a: 'Single Authority'

Paper

Trader(incl. Transport)

Practical steps in planning and

implementing a Single Window • Developing the Initial Concept • Initial Decision to Examine the Feasibility of

a Single Window• Undertaking a Feasibility Study• Consideration of the Feasibility Study Report• Implementation

For more information: tom.butterly@unece.org

Managing risk and information in container trade

Importance of managing trade information flows:• Efficiency • Security (information for risk profiling)

“If we do not know what is in it, it will not move!” Douglas Browning, US Deputy Customs Commissioner, statement at UNECE’s Second International Forum on Trade Facilitation, Geneva, 14 May 2003.

The role of TRACECA, World Bank (TTFSC), etc. in the implementation

of TF tools• Help implement existing TF tools and

standards? • If countries request – implementation

projects of UNeDocs & SW. • Can TTFSE link to implementation

projects on improving the management of information supply chains?

Integrating the information supply chain

Thank you !www.unece.org

mario.apostolov@unece.org

United Nations Economic Commission for Europe