WCO Framework of Standards To Secure and Facilitate Global Trade Capacity Building Workshop on ‘International Standards to Stimulate Paperless Trade’ WCO Framework of Standards To Secure and Facilitate Global Trade UNeDocs A cross-domain (Trade, Transport and Customs) data model Marianne Wong Mee Wan Senior Assistant Director of Customs (Malaysia) UN/CEFACT RMC WCO

Outline About WCO Evolution of Customs WCO Initiatives WCO Framework of Standards WCO Data Model vs UNeDocs Moving Forward

World Customs Organization Established in 1952, HQ in Brussels To improve the effectiveness and efficiency of Customs Administrations 169 members, representing 99% of global trade

Evolution of Customs Customs Function Framework of Standards Security (terrorism – shifting focus to entire supply chain) Economic Development (trade, investment) Protection of Society (health & safety) Protection of Economic Interests (domestic industries) Revenue Collection of Import Taxes

WCO Initiatives Security and Facilitation Programmes: The Revised Kyoto Convention Risk Management Guide Application of Information and Communication Technology WCO Data Model Unique Consignment Reference Time Release Study Immediate Release Guidelines Recommendations WCO Framework of Standards

WCO Framework of Standards To Secure and Facilitate Global Trade Background Drawn up by High Level Strategic Group of Directors General Accepted in principle by WCO’s Policy Commission in December 2004 Adopted by Directors General of 166 Customs Administrations in June 2005 Objectives Establish standards to secure and facilitate global trade in the supply chain Enable integrated supply chain management for all modes of transport Enhance the role, functions and capabilities of Customs Strengthen co-operation between Customs administrations Strengthen Customs/Business co-operation Promote the seamless movement of goods

WCO Framework of Standards To Secure and Facilitate Global Trade 4 Core Elements Harmonizes the advance electronic information on inbound, outbound and transit shipments (using WCO standard Data Model for electronic Customs messaging) Application of risk management approach to address security threats Outbound inspection of high-risk consignments being exported, preferably using non-intrusive detection equipment such as large-scale X-ray machines and radiation detectors Customs will provide benefits to businesses that meet minimal supply chain security standards and best practices

WCO Framework of Standards To Secure and Facilitate Global Trade The Two Pillars of the Framework Customs-to-Customs Pillar Integrated Supply Chain Management Cargo Inspection Authority Modern Technology in Inspection Equipment Risk-Management System High-risk Cargo or Container Advance Electronic Information Targeting and Communication Performance Measure Port Security Assessment Employee Integrity Outbound Security Inspection Customs-to-Business Pillar Partnership Security Benefits Technology Communication Facilitation

WCO Data Model vs UNeDocs What is WCO Data Model? What is UNeDocs?

WCO Customs Data Model WCO Customs Data Model(WCO CDM) is originated from the G7 data set which was handed over to the WCO in January 2002 WCO CDM containing the G7 data sets, the G7 EDIFACT message specifications, the G7 code lists, and the Kyoto Customs Data Principles was adopted as version 1.0 in June 2002 WCO CDM was reexamined and updated to version 1.1 to include data necessary to identify high-risk goods (completed – June 2003) WCO CDM was updated to version 2.0 based on international standards to include data pertaining to transit and transport requirements only Other Government Agencies’ requirements too complex (deferred to version 3) WCO CDM version 2.0 was endorsed by the WCO Council in June 2005

WCO Customs Data Model…cont. Content of WCO CDM version 2.0 Revised Kyoto Convention Models Business Process Models Use Case diagram, Use Case description, Activity diagram, Sequence diagram and Class diagram Framework with sets of standardized and harmonized maximum data requirements (264 data requirements) Standard electronic EDIFACT message EDIFACT Message Implementation Guidelines (MIGs) XML schemas

WCO Customs Data Model…cont. 3 distinguish features of WCO CDM Version 2.0 Adoption of UMM (UN/CEFACT Modeling Methodology) and UML (Unified Modeling Language) Inclusion of goods transit information Inclusion of conveyance information WCO CDM version 2.0 has incorporated the UCR (unique Consignment Reference, WCO ID 016) To provide continuity of the audit trail from source to destination Maximum field length is 35 characters (an..35) UMM (UN/CEFACT Modeling Methodology) Methodology sets out a process to ensure consistency and enables CEFACT groups to adopt a common approach Based on customizing the Unified Process Methodology UML (Unified Modeling Language) The language to express the model management, behavior and structure diagrams Based on the Revised Kyoto Convention (simple business process model), use case diagram, case description, activity diagram, sequence diagram and class diagram From Customs point of view, the UCR is intended to provide continuity of the audit trail from source to destination to facilitate the move to more audit-based controls.

WCO Data Model version 3.0. WCO Data Model takes into account the Single Window Concept (data requirements and reducing redundancies) Scope of WCO Data Model version 3.0 Deferred DMRs from version 2.0 Customs Transit Response Ongoing alignment with CEFACT Core Component Technical Specification (CCTS), United Nations Trade Data Elements Directory (UNTDED) and to work towards the full engagement of trade/transport Review and resolve inconsistency (e.g data elements from a paper environment) OGA/PGA Only processes directly related to the clearance of goods, means of transport and crew at least health and agricultural (national and international) No license/permit application/request/approval processes

UNeDocs Based on the concept of a cross-domain (Trade, Transport and Customs) data model, known as the UNeDocs Master Based on international standards including the UN/CEFACT Unified Modelling Methodology,UN Trade Data Element Directory (UNTDED) and other global instruments Shares that alignment with the WCO Data Model A superset of data elements used within the international purchase and supply chain Syntax independent and can be used to produce documents in paper, EDI or XML formats The WCO data set has been included within UNeDocs Importers will be able to exchange WCO information electronically using UNeDocs XML transactions  create local Customs declaration Will include additional regulatory requirements (e.g permit, licenses) when this information becomes available in WCO Data Model version 3.0

WCO Data Model UNeDocs Adopting International standards such as UN/CEFACT Unified Modelling Methodology,UN Trade Data Element Directory (UNTDED) and other global instruments Data elements used within the international purchase and supply chain Taken into consideration security, trade facilitation and Single window Approach Will include regulatory requirements (e.g permit, licenses) WCO data set a sub-set of UNeDocs Exporters and importers will be able to exchange WCO information electronically using UNeDocs XML transactions  create local Customs declaration

Moving Forward WCO established the Framework as a minimum set of standards; members have to implement; 120 members signed letter of intent Implementation in phases; WCO assistance in capacity building, diagnostic studies, funding opportunities, pool of experts G8 countries and APEC economies have agreed to implement WCO Data Model, where possible. Customs Administrations of UK, US, Canada, India, Japan, Australia, Chinese Taipei have already begun to move towards full implementation of the WCO Data Model and others are moving in WCO is involved in UNeDocs project through the TGB4 Customs Domain working group and will work closely with the UneDocs team in a collaborative manner towards integration of the WCO Data Model and UNeDocs

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