1 United Nations Economic Commission for Europe The UN/CEFACT Strategy Information Exchange in Global Supply Chains Virginia Cram-Martos Director, Trade and Timber Division

2 This Presentation Introductory Background Public-Private Stakeholders Integrated Strategy Collaboration Framework

UNECE Work Areas Transport Economic cooperation Statistics Sustainable energy Housing Trade Environmental policy Timber & Forestry

4 There is an Imperative Need for Trade & Transport Facilitation in order to Create dynamic gains and spill over effects into the economy Bolster trade: The IMF suggests that reducing transport and trade related constraints in MENA countries to equal the world average could increase exports by approximately 10% The scope of trade liberalisation also needs to expand to include services – and especially those linked to trade such as transport and finance

5 UNECE : Three Pronged Approach to TF Transport policies & infrastructure infrastructure StandardsDevelopment Facilitating Trade Flows

Transport 1.Harmonizes traffic regulations and road signs 2.Promotes road safety. 3.Manages the World Forum for Harmonization of Vehicle Regulations. 4.Facilitates the international movement of goods by negotiating conventions to simplify and harmonize specific procedures at border crossings, including the Convention on International Road Transport (TIR) signed in Synchronizes transport infrastructure 6.Makes recommendations covering the transport of dangerous goods, including hazardous wastes and substances.

Trade 1. Develops effective international trade- related instruments, norms, standards and recommendations, for the global economy 2. Reduces barriers to trade in goods and services in all countries, through greater implementation of international and UNECE norms, standards, and recommendations 3. Facilitates trade policy development through provision of an international platform for the exchange of views, particularly for the benefit of countries with economies in transition

UNITED NATIONS CENTRE FOR TRADE FACILITATION AND ELECTRONIC BUSINESS SIMPLE, TRANSPARENT AND EFFECTIVE PROCESSES FOR GLOBAL BUSINESS

9 UN/CEFACT Fundamentals Intergovernmental Public-private sector collaboration Global remit Multidisciplinary Consensus-driven Recommendations / Standards Real-world solutions-oriented Free to participate / to use outcomes

10 UN/CEFACT Structure 22 April International Trade and Business Processes Group International Trade and Business Processes Group Applied Technology Group Applied Technology Group Information Content Management Group Information Content Management Group Techniques and Methodologies Group Techniques and Methodologies GroupLegal Group Domains: Accounting & Audit - Agriculture - Architecture, Engineering & Construction - Business Process Analysis - Customs - eGovernment - Electronic Trade Documents - Environmental Management - Finance - Harmonization - Health Care - Insurance - International Trade Procedures - Supply Chain - Transport - Travel, Tourism and Leisure Plenary Chair ___________________Bureau Plenary Chair ___________________Bureau FMG FMG Forum Management Group Group FMG FMG Forum Management Group Group UNECE Secretariat UN/CEFACT Forum UN/CEFACT Plenary

11 Collaboration Memorandum of Understanding (MoU) on Electronic Business Avoid divergent and conflicting approaches to standardization Eliminate duplication of effort Provide a clear roadmap for users Ensure intersectoral coherence in the field of electronic business

The International Supply Chain Prepare for Export Export Transport Import SHIP BUYPAY Prepare for Import Commercial Procedures Transport Procedures Regulatory Procedures Financial Procedures 12

13 Analysing the Business Processes Financial Procedures Provide Credit Rating Provide Insurance Provide Credit Execute Payment Issue Statements Commercial Procedures Procurement / Invoice Establish Sales Contract Order Goods Advise On Delivery Request Payment Prepare for Export Export Transport Import SHIP BUYPAY Prepare for Import Transport Procedures Establish Transport Contract Collect Transport and Deliver Goods Provide Waybills, Goods Receipts Status Reports Regulatory Procedures Obtain Import/Export Licences Provide Customs Declarations Provide Cargo Declarations Apply Trade Security Procedures Clear Goods for Import/Export 13

14 Interoperability: Core Components and Process Models Commercial Procedures Prepare for Export Export Transport Import SHIP BUYPAY Prepare for Import Transport Procedures Regulatory Procedures Financial Procedures consignment item.details payment details party details Customs declaration details trade item details

15 Efficiency and Security for Trade Trade bottlenecks : -High transaction costs in trade -Many documents and signatures -Cumbersome procedures -Need for reform and modernization of border agencies -Lack of transparency -Difficult to meet requirement of international standards -Lack of trust between public and private sector -Ports and border-crossings are bottlenecks -Rent-seeking and corruption Source: National Board of Trade (2009) Trade facilitation and maritime transport

16 Trade Facilitation and Electronic Business  Addressed through a unified strategy dealing with common processes that support business and government, across sectoral domains and across countries   Based on re-usable building blocks from a framework of technical standards that support business standards that support trade facilitation recommendations

17 UN/CEFACT Approach  Applies a total transaction approach when working for the elimination of constraints  Simplifies procedures and documents, encompassing both border-crossing and other government and commercial processes  Captures business knowledge in process and information models  Maps these models to new information technologies as they emerge

18 UN/CEFACT Key Work Area #1 Facilitating national & international trading & business transactions by working towards the elimination of constraints

19 UN/CEFACT Key Work Area #2 Engaging in open dialogue to achieve improved coordination and cooperation

20 UN/CEFACT Key Work Area #3 Improving the ability of business, trade and administrative organizations to exchange products and relevant services effectively

Electronic Documents Supply Chain Data Model Documentation simplification Business Process Analysis ECert, Cross Border Invoice, Material Safety Sheet Core Component Library UN Layout Key UN Recommendations on Codes UN Modelling Methodology (UMM) ECE TF Standards for Single Windows

Electronic Documents Supply Chain Data Model Documentation simplification Business Process Analysis ECert, Cross Border Invoice, Material Safety Sheet Core Component Library UN Layout Key UN Recommendations on Codes UN Modelling Methodology (UMM) ECE TF Standards for Single Windows

23 Standards: UN Layout Key Cross-Sector Transaction Data (mainly business driven) Sector Specific Detail goods items, order line items... Document Function Specific (Free Text Area) UN Layout Key (UNLK) A standard and template for aligning international trade documents

Rec:19 Mode of Transport Rec:16 UN/Locode ISO Country Code Rec: 17 Payment Terms Rec:9 Currency Code Rec:20 Units of Measurement Rec: 28 Means of Transport Commodity Code Rec: 21 Package Codes

United Nations Trade Data Elements Directory: ISO 7372 Developed to provide a Directory to facilitate open interchange of data in international trade Standard data element names with description of meaning (data value) and a specification of character representation Fully consistent with UN/EDIFACT Multimodal & multisectoral Technology & syntax independent ebXML Core Components Technical Specification compliant Standards: UNTDED

Over 200 standard messages for global trade Customs (Source: EU-TAXUD): –175 Million Customs Declarations per year 480‘000 per day 333 per minute 5.5 per second Fiscal Declarations (Source EDIFICAS, France): – companies – million companies 92% of VAT collected using EDIFACT 45% of revenues collected by the French Government Benefit to the State (Source EDIFICAS, France): –Euros 100M per year Standards: UN/EDIFACT

 Business Process Models  Business Requirements Specifications-BRS  Requirements Specification Mapping-RSM  Core Component Technical Specifications  Core Component Libraries  Core Component Harmonisation  Naming & Design Rules  Schema Generation Standards: ebXML (ISO 15000)

28 Business Requirement Specifications Accounting Journal List / Accounting Ledger / Accounting Reporting Accounting in Supply Chain Process / Accounting Message BoostAero Supply Chain Business Chart of Accounts Crop Data Sheet Process (eDAPLOS) Cross Industry Invoice Cross Industry Quotation Cross Industry Remittance Advice Electronic Agreement Template and Process Electronic Data Exchange Proxy e-Tendering Export Specification (eCert) International Forwarding And Transfer Material Safety Data Sheet (MSDS) Information Project Schedule and Cost Performance Management Small Scaled Lodging House Travel Product Information Sourcing of Market Survey information Transfer of Digital Records Transfrontier Movement of Waste Universal Accounting Journal Process

UNEDIFACT - WCO First major adopter –Customs goods declaration - CUSDEC –Cargo report - CUSCAR WCO Data Model v3.0 –UN/CEFACT participated in Project Team –Government Cross Border Regulatory Message – GOVCBR –Largest single submission to UN/CEFACT - helps customs administrations implement, for example, Single Windows UN/CEFACT and Customs

30 UNECE: Facilitating Trade Flows  Simplified and harmonized trade documents, processes, procedures flows throughout the supply chain  Increased transparency and public/private partnership in the design of trade documents, procedure and processes

31 UNECE: Comprehensive TreatmentNational Regional International Implementing international standards and best practices at the national level facilitates integration at regional and international levels

33 Thank you Virginia Cram-Martos Director Trade and Timber Division