The United Nations Layout Key for Trade Documents Tom Butterly UNECE

The UN Layout Key (UNLK) This Session will cover: Overview of the UNLK Design principles and applications Standards, codes and Recommendations behind the UNLK Implementation tools Part 3 introduction and learning objectives.

Information - controls the entire trade transaction process Exchange of information - covers the entire trade transaction process Sales contract Movement of goods Official controls Payment Trade Documents are the core means of exchanging this information The goods cannot move faster than the information that controls them Increasing requirements for faster delivery for supply chains etc Impact of Security on Information requirements (24 hour rule, ACI, etc)

Many Parties Involved Source : Complex Networked Supply Chain [Harwick, 1999

And many Trade Documents Enquiry Order Despatch advice Collection order Payment order Documentary credit Forwarding instructions Forwarder's invoice Goods receipt Sea waybill Rail consignment note Bill of lading Freight invoice Cargo manifest Export licence Exchange control doc. Phytosanitary certificate Veterinary certificate Certificate of origin Consular invoice Dangerous goods declaration Import licence Customs delivery note TIR carnet ATA carnet

If this process is not simplified and coordinated - Frustration! Company B Company A Product Supplier Manufacturer Wholesalers Retailers Customer

And Cost 40+ documents to manage the export process Costs - up to 10 per cent of the value of the goods (annual global costs related to trade documents: 550 Billion USD

United Nations Layout Key Historical background Up until the 1960’s, no standardisation in terms of design, content or layout to trade documents There was a clear need for a global solution 1950s: Trade Facilitation in Sweden and other Nordic countries 1960s: UNECE set up a Working party to simplify and standardise international trade 1963: International model form adopted as a Layout Key

United Nations Layout Key Historical background 1960’s and 70s: UNECE Layout Key introduced by many international organisations and countries worldwide through the work of UNECE, UNCTAD and other organisations 1978: UNLK Recommendation had gained worldwide acceptance and was called the United Nations Layout Key for Trade Documents In 1961, the Committee on the Development of Trade of the UNECE examined the possibility of drawing up a recommendation with a view to the possible reduction, simplification and standardization of external trade documents. It was found that, in order for such a recommendation to be effective it had to be global. Also, it would be useful to prepare an international model form which could contain all the data elements (a unit of data that in a certain context is considered indivisible) needed in various trade documents – external to the firms – and to set them out in certain defined spaces.  In 1963, the model form was adopted as a layout key for the simplification and standardization of documents used in export trade. During the period 1963 to 1969, various internationally established documents were aligned by a number of users association and intergovernmental bodies such as the Universal Postal Union and the Customs Cooperation Council to what was then knows as the ECE Layout Key. In 1978 the Committee on the Developm3ent of Trade took into consideration the world-wide acceptance of the Layout Key and changed the name to United Nations Layout Key for Trade Documents.

Data Elements and Boxes UNLK Set of standards Borders Boxes Data Elements and Boxes

Mode of transport Destination

UNLK INTEGRATED SET OF STDS Rec 3 County of Origin: UN Rec 3 use ISO 3166 2 digit country codes Rec 5 Terms of delivery: Rec 5 Aberration of ICC Incoterms Rec 7 Numerical representation of date and time Rec 8 Unique Identification Code Rec 9 Alphabetic Code of the Representation of Currencies Rec 16 Codes for ports and other locations; Port of Loading: Rec 16 LOCODE Codes for ports and other locations; 55” entries; Show Switzerland Rec 19 Codes for Mode of transport Rec 20 Codes for Units of Measurement Rec 22 Packaging codes  CODES SIMPLIFY AND STANDARDISE THE INFORMATION – A CRITICAL FEATURE FOR eDOCUMENTS

6. System of aligned Trade Documents Shared Information The common information definition allows the exchange of data between documents (70% of all information in trade documents is shared) Once the data content in each trade document is properly defined using the TDED as a common repository of definitions the data elements in each document can be compared and interchanged.  Precondition for electronic data interchange and electronic business

Master Document and Series of Aligned Documents See UNLK Guidelines for details …

Many national and international sectoral documents developed through the UNLK Hierarchical System of Design

Hierarchical System of Design

Examples of Sectoral Layout Keys Standard Bill of Lading (Int. Chamber of Shipping) Photo Sanitary Certificate (Plant Protection Convention) Certificate of Origin (Kyoto Convention) Dangerous Goods Declaration (UNECE) LK for Commercial Invoices (UNECE Recommendation 6) LK for Standard Consignment Instructions (UNECE Rec. 22)

Examples of International Standard Forms Freight Forwarding Instruction (FFI) FIATA International Road Consignment Note (CMR) International Rail Consignment Note (CIM Convention) Universal Air Waybill (IATA) Cargo Declaration (IMO FAL) Dispatch Note for Post Parcels (World Post Convention) GSP Certificate (UNCTAD) SAD (European Union)

United Nations Layout Key Aligned Trade Documents Today, nearly all international trade documents are aligned to the UNLK Examples: Standard Bill of Lading (International Chamber of Shipping) Universal Air Waybill (IATA) International Rail Consignment Note (CIM Convention) International Road Consignment Note (CMR Convention) Single Administrative Document (SAD) GSP Certificate Cargo Declaration (IMO FAL) etc Go to the Toolkit for trade facilitators on the Internet. http://www.unece.org/etrades/unedocs/toolset.htm Show: Goods Declaration – Kyoto Convention FIATA Forwarding Instructions International Road Consignment Note (CMR) Single Administrative Document (SAD)

United Nations Layout Key… SAD

Box consists of box heading and data fields Box Principle Box consists of box heading and data fields Related data is placed in a single box e.g Buyer: Name and address of the party to which merchandise is sold Envelope box for consignee

Designing Documents based on the UN Layout Key When designing documents bases on the UN Layout Key certain principles are specified. For example: Data elements specified in the LK should be placed in the corresponding place Data elements not specified in the LK are placed in the free disposal area Data elements not required can be omitted. The gained space is for free disposal. Boxes can be further sub-divided to further specify information Hand over from previous slide to this slide: The UNLK standard form is not a real trade documents and does not support a specific business process. Instead it is a master template to derive a form for a specific trade document such as an Invoice… 4 main rules: Data elements specified in the LK should be placed in the corresponding place Data elements not specified in the LK are placed in the free disposal area Data elements not required can be omitted. The gained space is for free disposal. Boxes can be further sub-divided to further specify information Example one: UNLK Para 25: For example, it is possible to provide space for the exporters agent at the bottom of the exporter box. The field of the transport box can be further sub-divided to provide data elements for specifying places of the itinerary, modes and means of transport.. Example two: Show the UNLK for the aligned invoice (UN Rec 6) Demonstrate: More information on the area for reference numbers. Simplification of the country box. The reuse of the free disposal area for the commodity specification. In stead of authentication information on ancillary cost specification Question: What is the difference between modes and means of transport?

Physical document layout Needed for compatibility with standard printing equipment and US legal size paper format Paper Size: A4, A5L Margins: 20 mm top (gripper) and 10 mm left (filing) margin Character spacing in documents: 1/6 * 1/10 inch (4.24 * 2.54 mm), fixed font Recommended to develop forms for standard paper sizes: ISO A4 (210 x 297 mm, 8 1/3 x 11 2/3 inch) ISO A5L for post parcel documentation Letter (216 x 279 mm, 8 ½ x 11 inch) Utilizing identical top and left hand margins ensures alignment between ISO A4 and Letter size. UNeDocs documents based on fixed fonts with a character spacing of 1/10 inch (2.54mm) and a height spacing of 1/6 inch (4.24 mm) Typical fixed fonts used in international trade documents: Elite, Pica and Futura Printers and typewriters to be used with an UNLK aligned form it must print at least with 10 characters per inch (cpi). Forms are typically completed using printers or typewriters. When allocating space on a form the designer of the form has to know the amount of space each character will take to calculate the total amount of data that will fit into the space. Defining the maximum data length of document fields is specifically important if the document is later used in electronic business as the ICT systems will require precise information on data length for printing and data storage. UNeDocs documents are based on fixed fonts with a character widths spacing of 1/10 inch, or 2.54 mm and a height spacing of 1/6 inch, or 4.24 mm. Typical fixed fonts used in international trade documents are Elite, Pica and Futura. With typewriters it is more common to speak of a horizontal motion index in characters per inch (cpi). For a typewriter or printer to be used with an UNLK aligned form it must print at least with 10 cpi. Most typewriters or printers can print in “Elite” (12 cpi), which is conforming. The spacing measurements are conforming to ISO 4882 Office machines and data processing equipment -- Line spacings and character spacings FFI Grid

Tools Available UNLK Guidelines UNLK Recommendation International Document Set UNeDocs

Built on a series of standards Box design principle - related information always appears in the same place Common definition of data elements One run system of aligned documents Series of Recommendations and standards developed around the data elements System of Sectoral, and National Layout Keys and standard forms

Selection of tools are available from UNECE Key Message UN Layout Key is an intelligent integrated set of UNECE, ISO and other international standards that are the foundation for the flow of information in trade transactions Implemented in many developed economies but still much room for use in developing economies Selection of tools are available from UNECE Huge potential savings for both business and government

Key Message Can be used directly irrespective of level of technological development Aligned trade documents are a prerequisite for development of electronic documents Aligned Trade Documents are a Key element in achieving trade efficiency ......

International Competitiveness and Trade Facilitation World Economic Forum Country competitiveness rankings 2004 1. Finland 2. United States 3. Sweden 4. Taiwan 5. Denmark 6. Norway 7. Singapore 8. Switzerland 9. Japan 10. Iceland 11. United Kingdom 12. Netherlands

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