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Trade Facilitation Norms, Standards and Recommendations for Policy Makers

UNECE. Trade Facilitation Norms, Standards and Recommendations for Policy Makers . Geneva, May 2011. UNECE Works to Facilitate Trade Flows. Simplified and harmonized trade documents, processes, procedures flows throughout the supply chain Globally agreed data standards

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Trade Facilitation Norms, Standards and Recommendations for Policy Makers

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

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

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

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

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

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

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

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

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

  10. Business Process Analysis Objective: Document, analyse and simplify business processes • Is a structured analysis and description of the Business Process in the Supply Chain • Captures time, costs, delays,.. • Starting point to improve and automate the process • 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, ..

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

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

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

  14. 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) 24 Data Elements Standardization and DataHarmonization Request form for Permit for the export of rice Standardized Data Set for documents (70 Data Elements) 63 Data Elements Request Form for Rice Quality Certificate 30 Data Elements Permit for the export of rice 38 Data Elements Rice Quality Certificate Standardization and Harmonization can reduce the data elements from 24+63+30+38=155 data elements to70 data elements using UNTDED Source: KU-INOVA, Kasetsart University, Bangkok, Thailand 16

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

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

  18. Summary • 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

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