Capacity Building Workshop on Trade Facilitation Implementation for Asia and the Pacific Region Integrated Model on Trade Facilitation and e-Business /18, KL, Malaysia Jean E. Kubler U NITED N ATIONS E CONOMIC C OMMISSION FOR E UROPE

UN/CEFACT UNECE regional level and cooperation with other UN Regional Commissions and organizations Develop and maintain international standards and instruments; Integrating UN/CEFACT’s instruments into the new policy frameworks; Strategic capacity building and promotion to support gretaer implementation of existing instruments Simple, Transparent and Effective Processes for Global Business. UN/CEFACT Mission

UN/CEFACT Enquiry Validation Credit Arrangements Refund claim Long Lead items Export Licence Short Lead Components Delivery to port Documentation Dehire GKN pallets Delivery to customers warehouse Unload and store Retail sale Payment by customer Payment of transport and FOB charges £ Added value and cost Omagh to Algeria. 1 Order – 360 net tonnes, 21 weeks Invoice and order administration Unload, re- pack Delivery to customs warehouse Exit clearance from community Refund payment and administration Weeks (approx) Main vessel loading Sea Crossing Main vessel off-loading Artwork Order receipt and administration Request Health Certificates, Licences Documentation Pre-shipment Inspection Customs formalities (Inland) Manufacture Load and despatch Proof of export Inwards clearance Time and Cost implications

UN/CEFACT Current Logistics Cost/GDP Thailand Japan USA EU ~ 25-30% ~ 11% ~ 10% ~ 7% Logistics – Efficiency flow of Goods Logistics Cost in Thailand is quite high. Cost reduction opportunity in Logistics For example 5% of GDP ~ 7.5 Million USD Competitiveness of a nation

UN/CEFACT Competitive Strategy Supply Chain Strategy Drivers InventoryTransportationFacilitiesInformation Supply Chain Structure Source: Chopra & Meindl 2001 EfficiencyResponsiveness Drivers of Supply Chain Performance

UN/CEFACT Ministry of Transport Ministry of Trade Ministry of Finances Reduce transaction costsMonitor external trade flows Customs reform & modernization Trade facilitation measures Door-to-door Logistics Private Sector Actor : Institutions

UN/CEFACT Actor: Enterprises Source : Complex Networked Supply Chain [Harwick, 1999

UN/CEFACT Total Trade Transaction – Integrated supply-chain The UN/CEFACT Vision Trade facilitation Competitiveness – trade efficiency

UN/CEFACT Integration and conectivity Single Window, UN/CEFACT Rec 33 Rec 4 Infrastructure High Speed Backbone Server & Storage IP Integrated Network IP Convergence Service Continuous Business Operation SMC Processes Security Enterprise System Mgmt Enterprise Intelligence Government Systems Adaptor Private Sector Systems Enterprise Service Delivery Enterprise Services & Applications Portal Framework Citizens Employees Private Sector Governments External Systems Internet Kiosk Telephony Forms Wireless Letters Fax Brochures Face to Face CHANNELSCHANNELS

UN/CEFACT The International Trade Transaction Process BUY SHIP PAY Seller Buyer Intermediary Authority

UN/CEFACT The International Trade Transaction Process BUY Establish Business Agreement Request Quotation Negotiate Agree Contract Order INVOLVES Commercial Procedures Establish Contract Order Goods Advise On Delivery Request Payment

UN/CEFACT The International Trade Transaction Process SHIP Prepare for Export Transport Prepare for Import INVOLVES Transport Procedures Establish Transport Contract Collect,Transport and Deliver Goods Provide Waybills, Goods Receipts Status reports etc. Regulatory Procedures Obtain Import/Export Licences etc Provide Customs Declarations Provide Cargo Declaration Apply Trade Security Procedures Clear Goods for Export/Import V: Transit - VIII: Proportionality- X: Publication

UN/CEFACT Article V

UN/CEFACT The International Trade Transaction Process PAY Prepare for Payment Request Payment Initiate Payment Execute Payment Advise Payment INVOLVES Financial Procedures Provide Credit Rating Provide Insurance Provide Credit Execute Payment Issue Statements

UN/CEFACT YESTERDAY (informal description) Scope Field specs Format specs Usage guidelines Usage rules Example Validation rules Information flow TODAY (A methodology) Business Requirements WHYWHY Logical Design WHATWHAT Technical Implementation HOWHOW TRANSACTIONS & DOCMENTSS BUSINESS MODEL INTERNET Codification and transfer of knowledge Unified Modelling Methodology (UMM) June 2005 – 4 BRS UN/CEFACT Standards

UN/CEFACT Combined Approach Paper Document aligned to UN Layout Key UNeDocs XML or UN/EDIFACT Electronic Edit Form <n:Invoice xmlns:n="urn:oasis:names:tc:ubl:Invoice:1.0:0.70" xsi:schemaLocation="urn:oasis:names:tc:ubl:Invoice:1.0:0.70 UBL_Library_0p70_Invoice.xsd"> token Bills Microdevices Joes Office Supply 1 5 Pencils, box #2 red

UN/CEFACT Objectives must be clear Balance revenue enhancing, economic efficiency, security, external trade policy for market access FacilitationEfficiency Exchange of goods and services Government Regional Security Production Private National trade Colombus Ministerial Declaration on Trade Efficiency, UNCTAD 1994

UN/CEFACT Trade Facilitation increase efficiency and support export transaction Trade facilitation is to analyze, rationalize and inter-relate the fundamental requirements of the national/international trade transaction. This requires taking into account the essential, underlying reasons for these activities - including the purposes of a range of official controls and the functional background to change of ownership and responsibilities, the assessment and imposition of duties and taxes and various modes of payment for goods or related serviceselements of international processes, procedures and transactions and working for the elimination of constraints (J. Raven, 1994) Export formalities raise the transaction cost Definition

UN/CEFACT  All UNECE Recommendations, codes, standards and publications are available for free on our website at: – – – – International Standards add value and are scalable

UN/CEFACT Key steps on the road to paperless trade The Win Win Situation –Better Information, structured Information, Advance Information, Automation Governments: –Risk assessment, Security, Compliance, market access, Information Society Trade: –Transaction and SC risk, costs, services

UN/CEFACT Win win is not enough to make it happen –Clear understanding of benefits/costs –Enabling Framework –Strong leadership and commitments –International Cooperation and Pathfinder Projects Roadmap for Paperless trade in International Supply Chains

UN/CEFACT Paperless Trade in International Supply Chain Enhancing Efficiency and Security –SC Information: Current trends and future orientation –Benefits: Governments and Trade –Experience: Single Window Implementations –What do we need to make it happen? –  Roadmap for paperless trade

UN/CEFACT -APEC Symposium /23 -UN/CEFACT Forum, /17, US WAS -Capacity Building Workshop on Trade Facilitation,2004, GVA, CH -6th. UN/CEFACT Forum, March 2005, Malaysia -Capacity Building Workshop on Trade Facilitation,2005, Malaysia -3 rd. International Forum on Trade facilitation, /21, CH, VA -11 th. UN/CEFACT Plenary, /24, CH GVA An internationally agreed meaningful roadmap, including existing and current developments, to achieve efficiency and security in the supply chain.... On the road to..

UN/CEFACT S IMPLE, T RANSPARENT AND E FFECTIVE P ROCESSES FOR G LOBAL B USINESS.