WCO Data Model Background Basic Principles UNCEFACT Symposium

Data Model Background Ø Information and documentation are key elements in the control of international cross-border trade Ø interconnected electronic environment implies controls will include C 2 C information exchange └> prior to the arrival of the goods └> to provide necessary security └> within acceptable release times

Data Model Background Ø Need for standardised/harmonised information requirements and procedures Ø Essential for common understanding & effective/efficient communication Ø Includes all parties in international cross-border movement Ø WCO Data Model satisfies these requirements

Data Model Background The G 7 Customs Initiative ü G 7 Heads of States and Government, agreed to standardise and simplify customs data requirements of the G 7 countries ü standardise the format ü facilitate international trade, ü reduce costs for businesses and governments, and ü promote economic growth ü implementation, by 2005 if possible ü prototypes during 2002 ü 2001 WCO Council accepted request to take over the maintenance and management

Data Model Background Trade Participation ü important contribution to the facilitation of international trade ü crucial for acceptance of the data model is └> participation of the various sectors of business involved in international trade. ü encourage international trade and transport associations to become actively involved └> to ensure compatibility with business practice

Data Model Basic Principles The WCO Data Model is based on the following principles and practices: 1. Business Process Modelling 2. EDI and e-Commerce technology 3. Common Data repository 4. Segregation of data requirements

Data Model Basic Principles 5. Seamless transaction 6. Single window environment 7. The G 7 Customs Initiative 8. Trade participation

Data Model Basic Principles Business Process Modelling; The work of the Data Model includes analysis and modelling of procedures and processes in the Revised Kyoto Convention. Illustrative scenarios are then developed. APEC / WCO Workshop on Data Model and UCR 7 -11 March

Data Model Basic Principles EDI and e-Commerce technology; ü various Customs Procedures ü reflects an automated environment ü forms the basis for the development of common electronic messages using international standards eg: UN/EDIFACT ü development of common message structures ü compatible with relevant commercial business processes and information flows

Data Model Basic Principles Common Data Repository; ü uniform data requirements └> key to Customs control └> crucial to trade facilitation ü harmonisation of data requirements ü creation of common definitions plus ü standardisation of the data content and its format └> creates the building blocks

Data Model Basic Principles Segregation of Data Requirements; ü covers simplified procedures └> two-step-procedure └> Two-step Import └> 1 st step minimum information control purposes └> 2 nd step duty/tax and trade statistics collected after the release of the goods └> Two-step Export

Data Model Basic Principles Seamless Transaction; ü concept of a seamless data flow along supply chains ü export and import data requirements aligned ü export information basis for import formalities ü more effective/efficient information exchange ü submission of entire electronic declaration with required data elements and values ü customs use only mandated data elements ü multinational traders maintain multiple interfaces

Data Model Basic Principles Single Window environment (Version 3. 0) ü including “Other Government Agency” requirements ü to exchange information only once └> fulfill all regulatory requirements ü requires the involvement of so-called “OGA’s”

Data Model Conclusion Way Forward ü Publish version 2 of the WCO Customs Data Model ü Subsequent versions* will be developed └> comprehensive maintenance and change control rules └> procedures to ensure a reliable and stable WCO standard. * In June 2005 Version 2 was approved and accepted by the WCO Council, Version 3. 0 will be put up in June 2008