UN/CEFACT Pioneering Paperless Trade: The way covered and the way ahead Experience of Innovative Compliance in Supply Chain Security UN/CEFACT Executive Forum Geneva, st June 2005 Less and Better Data to build Trust and Efficiency

UN/CEFACT Who we are and what we do  Integrated Risk and Regulatory data management services for the International Transportation industry  US Intermodal Dangerous Goods Data Management (DOT)  US Air Cargo Security (TSA)  EU Air Cargo Security (DG-TREN - Study)

UN/CEFACT Background/Business Drivers  Lack of mutual recognition of supply chain security procedures and processes  within the EU  between the EU, USA and other jurisdictions  Industry must “register” with, and report very similar compliance data to, more than one Appropriate Authority  Carrot & stick approach to compliance

UN/CEFACT Accreditation by many Competent Authorities  Accreditation of Participants in the International Supply Chain  IATA Cargo Agent  US Indirect Air Carrier  EU Regulated Agent Accreditation  EU Authorized Economic Operator Accreditation  ………..

UN/CEFACT Differing Shipment Validation Requirements  Per-Shipment Risk Evaluation  US CBP Load/No Load Decision  EU Pilot Confirmation  US TSA Freight Assessment  EU AEO Pre-Clearance  Targeted Inspection/Screening  Customs - US CBP & EU Administrations  Aviation - Shipment Inspections

UN/CEFACT Project Phases and Evolution  Voluntary pilot study of industry/regulator procedures to enable mutual recognition  Prototyping of data interchange  between transportation industry & regulators  with transportation security authorities in other jurisdictions  with EU customs administration  Future Trends – EU wide and multimodal implications

UN/CEFACT Services and User Community  Web Service to validate and exchange information on actors and actions taken to render cargo secure  On line web access  XML data exchange between Industry & Regulators  User Community  Regulatory authorities in pilot EU Member States  Participants in the EU Transportation Industry  Industry/Government Study Group

UN/CEFACT The Business Model  Lead taken by DG-TREN in Brussels  Government funded Pilot to evaluate:  Feasibility ( policies, data collection, risk analysis, etc)  Costs  Potential for Private/Public Partnership  Users motivated to participate through:  Ability to influence future mandatory requirements  Trade facilitation benefits (initially EU – US)

UN/CEFACT Financing Development and Maintenance  Direct Cost Justification  Cost of inspection/screening  Facilitation delays  Loss of business  System development & operation could be financed by usage fees from  Government  Industry  Other stakeholders

UN/CEFACT Standards and Interoperability  Data Standards  Unique Shipment Reference Number  Unique Corporate Name/ID’s  Evolving Regulatory Standards  Risk management paradigms  Cross administration security procedures  IT Standards selected to support  Interoperability  Maintainability  Data security

UN/CEFACT What are the Benefits?  Pilot will investigate  Feasibility of integrating security procedures within the business processes of industry and regulatory participants to achieve  For Industry  Reduced processing costs  Enhanced risk management  Increased trade facilitation  For the Public at Large  Safety for the traveling public and transport employees  Government  Better utilization of scarce regulatory resources

UN/CEFACT Key Trends that support a Single Window approach  Security is already an integral component of most trade facilitation processes  Competent Authorities have recognized the need for “one stop” compliance and the “seamless integration” of regulatory processes  Mutual recognition relies on (secure) data on actions taken to render cargo secure

UN/CEFACT Crucial Success Factors  Success factors  Joint Government/Industry participation in the regulatory process  Simple, elegant and industry acceptable technological solutions  Limiting Factors  Political Leadership  Industry fears  Lack of agreed standards

UN/CEFACT To integrate security with paperless trade we need to..  Establish standards to permit the definition and “one time” capture of all data elements required  Obtain government support for “one stop” security accreditation and mutual recognition across Administrations and National boundaries  Deliver UN funding to develop and validate International Standards

UN/CEFACT Thank you