UNECE Trade Facilitation Norms Standards and Recommendations for

UNECE Trade Facilitation Norms, Standards and Recommendations for Policy Makers Geneva, May 2011

UNECE Works to Facilitate Trade Flows o Simplified and harmonized trade documents, processes, procedures flows throughout the supply chain o Globally agreed data standards o Increased transparency and public/private partnership in the design of trade documents, procedure and processes 2

Priorities for Trade Facilitation Policies in the 21 st Century Four major drivers in trade facilitation policies o o Globalization Security Trade agreements Information 3

Example of UNECE Trade Facilitation Tools and Standards o Implementation of Single Windows for Cross Border Trade o Paperless Trade: Simplification and Automation of Processes and Data in Supply Chains 4

Streamlining trade information: The Single Window Concept FROM TO PORT HEALTH CUSTOMS WHARFINGER PORT HEALTH CARRIER CUSTOMS HAULIER 1 0 0 CARRIER WHARFINGER HAULIER Single Window CUSTOMS BROKER PORT AUTHORITY LINE AGENT CONSIGNEE CONSIGNOR Mountains of paper Up to 30 % mistakes One time submission, re-use of information, co-ordinated control 5

The Challenge of implementing Single Window There a lot of obstacles to be overcome. Trade Facilitation Vision Many Document Requirements Complicated Trade Procedures Laws and Regulations Connectivity within Many Stakeholders the country Compliance Difficulties in trade Many different ICT systems Governance data exchange Conflicts of Interest Regional Connectivity People and Business Inadequacy in Technology Infrastructure Unpreparedness Change Management System Development Barriers in Interoperability Reality 6

UNECE Instruments to Establish a Single Window n UN/CEFACT Recommendation & Guidelines on Establishing a Single Window (Recommendation No 33) n UN/CEFACT Recommendation 34 - Data Simplification & Standardization for International Trade n UN/CEFACT Recommendation 35 - Establishing a Legal Framework for an International Single Window n Single Window Implementation Framework (SWIF) for policy makers and managers n Capacity building: Policy makers, Government officials and private sector 7

Example of UNECE Trade Facilitation Tools and Standards o Implementation of Single Windows for Cross Border Trade o Paperless Trade: Simplification and Automation of Processes and Data in Supply Chains 8

Paperless Trade: A Stepwise Approach Data Model and Paperless Trade Data Analysis and Simplification Document Simplification Business Process Analysis and Simplification Develop electronic documents Analyse information in the documents Simplify paper documents Understand simplify business processes

Business Process Analysis Objective: Document, analyse and simplify business processes o Is a structured analysis and description of the Business Process in the Supply Chain o Captures time, costs, delays, . . o Starting point to improve and automate the process o Creates a shared understanding of the supply chain and the interests of the actors Standards and tools: UNECE Guide for BPA, UML, UNECE/CEFACT Modelling Methodology, . . 10

Analyse Business Processes Stakeholders Reviewing and Approving 11 Source: Inova, Thailand

Document Simplification Objective: harmonise, simplify, standardise documents and data o Align documents to international standard: United Nations Layout Key (UNLK) o Use international accepted codes for trade data: UN Code list recommendations o Reduce number of documents and signature requirements Standards &Tools: UN Layout Key, ECE/CEFACT Recommendations, WCO, IATA, . . . 12

Simplified documents: common structure, layout, definitions and codes 13

Data Analysis and Simplification UNTDED 3238: Country of Origin Def. : Name of the country in which the goods have been produced or manufactured, according to criteria laid down for the application of the Customs tariff or quantitative restrictions, or measures related to trade. Standards &Tools: UN/TDED (ISO 7273), WCO Data Elements, ECE/CEFACT Recommendations, . . . 15

Example - Data Harmonization of four documents (Exporting Rice) Request form for Permit for the export of rice Request Form for Rice Quality Certificate Permit for the export of rice Rice Quality Certificate 24 Data Elements 63 Data Elements 30 Data Elements Standardization and Data Harmonization Standardized Data Set for documents (70 Data Elements( 38 Data Elements Standardization and Harmonization can reduce the data elements from 24+63+30+38=155 data elements to 70 data elements using UNTDED Source: KU-INOVA, Kasetsart University, Bangkok, Thailand 16 16

Data Model and Digital Documents q. A Data Model is a logical model of the information used in cross border trade q Delivers the specifications for electronic documents q. Standards: UNECE Core Component Library (CCL), WCO Data Model 17

Using a Data Model to establish regional Data Exchange Country A Country B Regional Agreement TDED Business Process Analsysis Common Data Model (WCO DM) Data Standardization Regional Data Model Data Standardization Business Process Analysis TDED

Summary o o Trade Facilitation can provide a framework of rules, trust, efficiency and automation Strategy: Analysis simplification standardization automation Benefits come from trade facilitation and electronic business New trade facilitation instruments can provide the basis for cross border information exchange 19

Thank you Virginia. Cram-Martos@unece. org 20