Integrated Model for Trade Facilitation Implementation Capacity Building

Integrated Model for Trade Facilitation Implementation Capacity Building workshop on Trade Facilitation Implementation: Tools, Techniques and Methodologies 18 - 20 October 2004 Geneva, CH

Who does what? WTO: negotiate the ‘what’ l UN/CEFACT provides relevant work to Article V, VIII and X, l UNECE contributes to capacity-building through the promotion and implementation of UN/CEFACT trade facilitation tools and instruments, through the multilateral networks developed over time in transition and Mediterranean countries, l UNECE cooperates with ITC, UNCTAD, WCO and the World Bank networks to make capacity-building effective. UN/CEFACT: the platform where the ‘HOW’ is discussed and developed internationally

What is… Business: Export formalities raise the transaction cost Trade facilitation is to analyze, rationalize and inter-relate the fundamental requirements of the national/international trade transaction. This requires taking into account the essential, underlying reasons for these activities - including the purposes of a range of official controls and the functional background to change of ownership and responsibilities, the assessment and imposition of duties and taxes and various modes of payment for goods or related serviceselements of international processes, procedures and transactions and working for the elimination of constraints (J. Raven, 1994) Government: Trade increase efficiency and support export transaction

The issue Added value and cost Omagh to Algeria. 1 Order – 360 net tonnes, 21 weeks Payment by customer Retail sale Unload and store Delivery to customers warehouse Main vessel off-loading Sea Crossing Main vessel loading pack Short Lead Components Export Licence Long Lead items Refund payment and administration Dehire GKN pallets Documentation Refund claim Delivery to customs warehouse Load and despatch Inwards clearance Proof of export Exit clearance from community Delivery to port Unload, re- Invoice and order administration Customs formalities (Inland) Pre-shipment Inspection Manufacture Documentation Request Health Certificates, Licences Order receipt and administration Artwork Weeks Credit Arrangements Enquiry Validation 12 13 15 16 Payment of transport and FOB charges 19 21

Achieving Regulatory objectives: The EU 115/2001 Directive on e-invoicing Harmonizes the format of the invoice: “invoice” is a document with “invoice” written on top that contains the data elements (buyer, seller, invoice number, VAT number, …) required by the law Member States may not require paper invoices to be signed Electronic (i. e. paperless) invoicing is allowed provided the invoice is transmitted in EDI or is accompanied by an electronic signature The electronic signature is required to guarantee “authenticity of origin and integrity of contents” An “advanced electronic signature” is demanded. Member States may further require it to be “based on a qualified certificate and created with a secure-signature-creation device” Despite the savings, e-invoicing roll-out is slow, who will deliver the low cost solution for SMEs?

Achieving Business objectives Secure and efficient data exchange Private Sector Telephony Face to Face Integration & Connectivity Services Forms Systems Employees e-Mail Letters Fax Brochure s Adaptor Governments Wireless Enterprise Service Delivery Government Who will deliver the missing component? Portal Framework Adaptor Citizens C H A N N E L S Internet Kiosk Enterprise Services & Applications Enterprise Intelligence External Systems High Speed Backbone Server & Storage IP Continuous IP Integrated Convergence Business Network Service Operation SMC Processes Infrastructure Security Enterprise System Mgmt

Government AND Business objectives UN/CEFACT vision: Integrated view (UMM) Business Government

Reference Model for Trade Facilitation Prepare Export Transport Prepare Import Payments The Supply Chain consists of integrated and coordinated flows of information, products and funds Import

UN/CEFACT SIMPLE, TRANSPARENT AND EFFECTIVE PROCESSES FOR GLOBAL BUSINESS www. uncefact. org