1. U NITED N ATIONS C ENTRE F OR T RADE F ACILITATION A ND E LECTRONIC B USINESS United Nations Economic Commission for Europe UN/CEFACT Supply Chains & Digital Information Current & Future Trends in International Trade Mike Doran UN/CEFACT Plenary Vice-Chair 3rd Executive Forum on Trade Facilitation, Geneva, 20-21 June 2005

2. UN/CEFACT Agenda 1.UN/CEFACT 2.International Trade Transaction Process - International Supply Chain Reference Model - Trade Facilitation & Trade Security - Single Windows 3.From Paper to Digital documents - Document Standards - International Trade - The UNeDocs Project 4.A Roadmap Towards Paperless Trade

3. UN/CEFACT Mission To deliver trade facilitation recommendations & e- business standards which can improve the ability of business, trade and administrative organizations within developed, developing and transitional economies, to trade products and relevant services more effectively - and so contribute to the growth of global commerce. Focus The worldwide facilitation of national AND international trade transactions, through the simplification and harmonization of business processes, procedures and information flows.

4. UN/CEFACT UN/CEFACT Structure STRATEGY VISION TACTICAL

5. UN/CEFACT Agenda 1.UN/CEFACT 2.International Trade Transaction Process - International Supply Chain Reference Model - Trade Facilitation & Trade Security - Single Windows 3.From Paper to Digital documents - Document Standards - International Trade - The UNeDocs Project 4.A Roadmap Towards Paperless Trade ?

6. UN/CEFACT International Supply Chain Reference Model The Challenge:- To enable trade facilitation & e-business solutions to be developed that meet the needs of the potential 45 Parties involved in the execution of National and International Trade Transactions involving Several hundred activities undertaken in some 70 relationships whilst recognising the variety of technical and business capabilities of the parties and contribute to cost savings of some 3 to 10 % of International Trade.

7. UN/CEFACT International Supply Chain Reference Model The Model consists of Text Descriptions of the major trade processes and information Pictorial representations of the information using Unified Modelling Language (UML) standard A Model linking these representations together A Catalog of common business processes

8. UN/CEFACT International Supply Chain - Many Parties Source : Complex Networked Supply Chain (Harwick, 1999 )

9. UN/CEFACT International Trade Transaction Process BUY SHIP PAY Customer Supplier Intermediary Authority The International Trade Transaction Process consists of The International Trade Transaction Process consists of integrated and coordinated flows of information, goods & payments Source: The UN/CEFACT International Supply Chain Reference Model

10. UN/CEFACT International Trade Transaction Process Commercial Procedures Establish Contract Order Goods Advise On Delivery Request Payment Transport Procedures Establish Transport Contract Collect,Transport and Deliver Goods Provide Waybills, Goods Receipts Status reports etc. Regulatory Procudures Obtain Import/Export Licences etc Provide Customs Declarations Provide Cargo Declaration Apply Trade Security Procedures Clear Goods for Export/Import Financial Procedures Provide Credit Rating Provide Insurance Provide Credit Execute Payment Issue Statements INVOLVES Prepare For Export TransportImport SHIP BUY PAY Prepare For Import

11. UN/CEFACT Trade Facilitation & Trade Security New processes to ensure the security of international trade World Customs Organizations Advanced Cargo Information (ACI) World Customs Organizations Advanced Cargo Information (ACI) US Customs 24 Hour Rule US Customs 24 Hour Rule International Maritime Organizations International Ship & Port Facility Security Code (ISPS) International Maritime Organizations International Ship & Port Facility Security Code (ISPS) The European Commission communication on a Simple & Paperless environment for Customs & Trade The European Commission communication on a Simple & Paperless environment for Customs & Trade

12. UN/CEFACT Sub Processes of the Ship Use Case

13. UN/CEFACT Single Windows

14. UN/CEFACT Meeting regulatory requirements and exchanging information with government

15. UN/CEFACT A Single Window The new approach - a simple, one- stop solution offering official control with trade facilitation.

16. UN/CEFACT Business Model of the Mauritius Single Window Joint venture functioning 100% as a private concern Joint venture functioning 100% as a private concern Equity (± USD 1 million) provided by shareholders Self-sustainability perspective right from the start Activities financed from 2 sources: a software single-user licence of $ 1300 a service fee of USD 5.- per declaration Highly successful and profitable activity: share value multiplied by eight since 1994 yearly dividends = ± 90% of funds invested

17. UN/CEFACT UN/CEFACT Recommendation Number 33 Recommendation & Guidelines on Establishing a Single Window To enhance the efficient exchange of information between trade and government http://www.unece.org/cefact/recommendations/rec33/rec33_ecetrd352_e.pdf

18. UN/CEFACT SINGLE WINDOWS Next Steps Developing a Standard for the Establishment of Single Windows Developing Commonly Agreed Data Structures for Single Windows Benefits have to be higher than implementation costs

19. UN/CEFACT Agenda 1.UN/CEFACT 2.International Trade Transaction Process - International Supply Chain Reference Model - Trade Facilitation & Trade Security - Single Windows 3.From Paper to Digital documents - Document Standards - International Trade - The UNeDocs Project 4.A Roadmap Towards Paperless Trade

20. UN/CEFACT International Trade & Digital Information Exchange of information - covers the entire trade transaction process Exchange of information - covers the entire trade transaction process Trade documents are the core means of exchanging information Trade documents are the core means of exchanging information Goods cannot move faster than the information that controls them Goods cannot move faster than the information that controls them There are increasing requirements for just-in-time delivery, approved supply chains etc There are increasing requirements for just-in-time delivery, approved supply chains etc Added impact of security measures on information requirements (ACI, 24 hour rule etc) Added impact of security measures on information requirements (ACI, 24 hour rule etc)

21. UN/CEFACT Paper Document Standards The United Nations Layout Key First started in the 1950s First started in the 1950s During 60s & 70s the UN Layout Key (UNLK) was in use in many countries worldwide through the work of UNECE & UNCTAD During 60s & 70s the UN Layout Key (UNLK) was in use in many countries worldwide through the work of UNECE & UNCTAD In 1978 the UNLK Recommendation had gained world-wide acceptance and was re-named, the: In 1978 the UNLK Recommendation had gained world-wide acceptance and was re-named, the: United Nations Layout Key for Trade Documents (Recommendation No 1 - ISO 6422)

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

24. UN/CEFACT The ability to allow traders to move from a form to an electronic message AND BACK AGAIN at any point in the trade transaction Market Requirements for International Traders

25. UN/CEFACT eDocument Developments ElecTra - SITPRO (UK)FormUN/EDIFACT EDI Equivalent

26. UN/CEFACT Digital Document Standards The UNeDocs Project Developing the initial work of SITPRO for international trade. Based on the following standards: UN Layout Key for Trade Documents (UNECE Recommendation 1/ISO6422) United Nations Trade Data Elements Directory (UNTDED/ISO7372) UN/CEFACT ebXML Core Components (ISO 15000 Part 5) UN/EDIFACT - for EDI applications UN/CEFACT XML Naming & Design Rules UN/ECE Trade Facilitation Recommendations

27. UN/CEFACT UNeDocs Deliverables A Digital Document Standard for international trade documents Business Process model derived from the UN/CEFACT International Supply Chain Reference Model ebXML UN/CEFACT Core Component- based Data Model from which the set of UNeDocs documents are derived which …

28. UN/CEFACT … comply with the UN Layout Key standard …

29. UN/CEFACT …and are delivered with box completion guidelines, …

30. UN/CEFACT Plus UN/CEFACT XML schemas and…

31. UN/CEFACT …and UN/EDIFACT message implementation guides

32. UN/CEFACT UNeDocs Project - Current Status Project transferred to the UN/CEFACT Forum TBG 2 - Digital Paper Working Group Project transferred to the UN/CEFACT Forum TBG 2 - Digital Paper Working Group A Call for Participation in this WG launched in document TRADE/CEFACT/2005/27 A Call for Participation in this WG launched in document TRADE/CEFACT/2005/27 Feasability study carried out with OASIS - UBL TC for UBL 2.0 with UNeDocs alignment Feasability study carried out with OASIS - UBL TC for UBL 2.0 with UNeDocs alignment A Stakeholder Group will now be set up to formulate the needs & documentary requirements of stakeholders and provide support for the development & implementation of digital document standards A Stakeholder Group will now be set up to formulate the needs & documentary requirements of stakeholders and provide support for the development & implementation of digital document standards

33. UN/CEFACT Agenda 1.UN/CEFACT 2.International Trade Transaction Process - International Supply Chain Reference Model - Trade Facilitation & Trade Security - Single Windows 3.From Paper to Digital documents - Document Standards - International Trade - The UNeDocs Project 4.A Roadmap Towards Paperless Trade

34. UN/CEFACT A Roadmap towards Paperless Trade The Executive Forum is invited to : Review the draft Roadmap Review the draft Roadmap Assess the current state of implementation Assess the current state of implementation Take stock of experience & lessons learned, to: Take stock of experience & lessons learned, to: Identify steps that governments & business need to take to change to paperless Identify steps that governments & business need to take to change to paperless

35. UN/CEFACT What is a Roadmap? It is a tool to facilitate the passage from the current situation to a future commonly agreed objective, the implementation of paperless trade.

36. UN/CEFACT What are the issues? Benefits: who benefits & how? Benefits: who benefits & how? Costs: what are the costs & who will pay? Costs: what are the costs & who will pay? Policy & Strategy considerations Policy & Strategy considerations - Time frame & process - Role of governments - Scope of Paperless Trade - Trade Facilitation & Open Standards

37. UN/CEFACT What are the next steps for the Roadmap? The Roadmap is not a negotiated text. It is a living document to establish a framework, based on agreed objectives, which: Includes the input of previous Workshops Includes the input of previous Workshops Will include comments & recommendations from the Executive Forum on Paperless Trade Will include comments & recommendations from the Executive Forum on Paperless Trade Will provide an initial simple tool for the implementation of paperless trade Could provide thematic input into the World Summit on the Information Society (WSIS), Tunis - Nov 05 Could provide thematic input into the World Summit on the Information Society (WSIS), Tunis - Nov 05

38. UN/CEFACT Development of the Roadmap The Roadmap will be further developed during the course of the Executive Forum & will be reviewed in the closing Round Table: Creating an enabling Environment to make Paperless Trade a Reality..and will then be forwarded to UN/CEFACT for consolidation & circulation.

39. UN/CEFACT Next UN/CEFACT Forum Meetings - 7th UN/CEFACT Forum Lyon, France - 26 to 30 September 2005 - 8th UN/CEFACT Forum Vancouver, Canada - March 2006 - 9th UN/CEFACT Forum New Delhi, India - September 2006

40. UN/CEFACT Mike.Doran@cern.ch For further information see: http:// www.uncefact.org