1. Less and Better Data to build Trust and Efficiency
Pioneering Paperless Trade:
The way covered and the way ahead
Experience of Innovative Compliance in Supply Chain Security
UN/CEFACT Executive Forum
Geneva , 20-21st June 2005
This presentation layout is intended to provide a common structure for the presentations of session three of the June Forum (Tuesday 21st June 05).
The target time for the presentation is 15 minutes.
It should help the audience to identify the communalities and differences in the approaches/requirements/...
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2. Who we are and what we do
Integrated Risk and Regulatory data management services for the International Transportation industry
US Intermodal Dangerous Goods Data Management (DOT)
US Air Cargo Security (TSA)
EU Air Cargo Security (DG-TREN - Study)
Brief introduction into your company.

3. Background/Business Drivers
Lack of mutual recognition of supply chain security procedures and processes
within the EU
between the EU, USA and other jurisdictions
Industry must “register” with, and report very similar compliance data to, more than one Appropriate Authority
Carrot & stick approach to compliance
Background on the implementation of the Single Window or Integrated Logistics Platform (SW).
Who/what were the business drivers?
What problem had to be solved?
Which agendas/policies were addressed?
Role of technology and standards.
Requirements of cross border trade.
Who are the main participants in the Single Window - i.e. which government Departments, business and other agencies participate?

4. Accreditation by many Competent Authorities
Accreditation of Participants in the International Supply Chain
IATA Cargo Agent
US Indirect Air Carrier
EU Regulated Agent Accreditation
EU Authorized Economic Operator Accreditation
………..

5. Differing Shipment Validation Requirements
Per-Shipment Risk Evaluation
US CBP Load/No Load Decision
EU Pilot Confirmation
US TSA Freight Assessment
EU AEO Pre-Clearance
Targeted Inspection/Screening
Customs - US CBP & EU Administrations
Aviation - Shipment Inspections

6. Project Phases and Evolution
Voluntary pilot study of industry/regulator procedures to enable mutual recognition
Prototyping of data interchange
between transportation industry & regulators
with transportation security authorities in other jurisdictions
with EU customs administration
Future Trends – EU wide and multimodal implications
Often single window platforms are implemented in several phases, such as a solution for Customs declaration, then integrating other regular bodies and banks and finally integrated logistics platforms. It would be interesting to see whether there is a common pattern and what could be the growth path in the future.
What was the initial scope of the project?
How did the project evolve?
What are the likely future trends?

7. Services and User Community
Web Service to validate and exchange information on actors and actions taken to render cargo secure
On line web access
XML data exchange between Industry & Regulators
User Community
Regulatory authorities in pilot EU Member States
Participants in the EU Transportation Industry
Industry/Government Study Group
Brief description of the SW, services provided and user community.
How many users/transactions (currently/evolution)?

8. Lead taken by DG-TREN in Brussels Government funded Pilot to evaluate:
The Business Model
Lead taken by DG-TREN in Brussels
Government funded Pilot to evaluate:
Feasibility ( policies, data collection, risk analysis, etc)
Costs
Potential for Private/Public Partnership
Users motivated to participate through:
Ability to influence future mandatory requirements
Trade facilitation benefits (initially EU – US)
Note: To identify the critical success factors with regard to institutional setting and funding.
This might me more than one slide (such as The Business Model – Organisational Setup, The Business Model – funding and financing). We have prepared a specific slide on financing on the next slide.
How was the SW set up (Public Private Partnership, Government lead…)?
Which organizations took the lead?
How was the go-to-market done?
Will a market driven mechanism provide sustainable development and growth or is government intervention required?
How did the project reach the critical number of users necessary to sustain operations?
What were the motivators for the users to subscribe?

9. Financing Development and Maintenance
Direct Cost Justification
Cost of inspection/screening
Facilitation delays
Loss of business
System development & operation could be financed by usage fees from
Government
Industry
Other stakeholders
What were the costs for development, implementation and maintenance?
Was seed money or subventions needed to start the project?
How is system development, implementation and maintenance financed?
How are costs recovered and how much are users paying?
What was/is the motivation that makes business/governmental agencies use the system (mandatory use of system, saving costs and time, green channel …)?
Are there external costs/benefits (Example: economic actors that benefit without contributing to the costs)?
Are there any lessons learned/crucial success factors to ensure the financing for development and maintenance of the system?

10. Standards and Interoperability
Data Standards
Unique Shipment Reference Number
Unique Corporate Name/ID’s
Evolving Regulatory Standards
Risk management paradigms
Cross administration security procedures
IT Standards selected to support
Interoperability
Maintainability
Data security
How did existing standards respond to the needs?
Which standards are still required?
Interoperability:
What are the current issues?
Is there a need of interoperability & data exchange between SW implementations in different countries?
Will the need for interoperability increase?
Is interoperability between countries a technical issue and/or policy issue?
What is the role of the UN?

11. Pilot will investigate
What are the Benefits?
Pilot will investigate
Feasibility of integrating security procedures within the business processes of industry and regulatory participants to achieve
For Industry
Reduced processing costs
Enhanced risk management
Increased trade facilitation
For the Public at Large
Safety for the traveling public and transport employees
Government
Better utilization of scarce regulatory resources
Note: We are looking for benefits in general and contribution paperless trade to Security and Efficiency in particular (if there is a significant benefit). It would be interesting to see which groups benefits from paperless trade and how.
General:
Who are the users?
Who benefits from paperless trade?
What are the benefits for users the (Government agencies , private sector,...)?
What are the benefits for the society at large (contribution to export promotion, security, development of service sector,...)?
Are there external costs/benefits (Example: economic actors that benefit from paperless trade without contributing to the costs)?
Security and efficiency:
Who benefits?
Does/how does paperless trade contribute to security (regulatory compliance, counter smuggling, anti-terrorist, ?).
Does/how does paperless trade contribute to efficiency of the trade transaction (reducing costs, delays, uncertainties, ?).
Is the potential of paperless trade adequately leveraged?
What can/should be done?
Is Government/private sector aware of potential benefits?
If no: why; if yes: is this reflected in system usage?

12. Key Trends that support a Single Window approach
Security is already an integral component of most trade facilitation processes
Competent Authorities have recognized the need for “one stop” compliance and the “seamless integration” of regulatory processes
Mutual recognition relies on (secure) data on actions taken to render cargo secure
This is an optional slide to list key trends on the national or regional or international level with regard to Single Window implementation and information exchange in the supply chain.
What are emerging requirements of the market and of Governments?
In which direction will Single Window Implementations develop?
What will be their role for the national economies and the regional integration?
How will they affect the security of borders?

13. Crucial Success Factors
Joint Government/Industry participation in the regulatory process
Simple, elegant and industry acceptable technological solutions
Limiting Factors
Political Leadership
Industry fears
Lack of agreed standards
Success factors:
From your experience what are the top five crucial success factors (such as national Champion, Government support, PPP, community integration…).
Limitations:
What are the limiting factors right now (what prevents more users to use the system, what hinders a wide spread uses of paperless trade, the cross border exchange of digital documents)?
What are the lessons learned?
If we would do it again we would…
Which are the future plans?

14. To integrate security with paperless trade we need to..
Establish standards to permit the definition and “one time” capture of all data elements required
Obtain government support for “one stop” security accreditation and mutual recognition across Administrations and National boundaries
Deliver UN funding to develop and validate International Standards
Note: This is to contribute to the development of a “Roadmap” for the migration from paper based trade information to paperless trade. We try to identify the crucial framework conditions that will enable paperless trade.
Some of the requirements may be a consequence of the ”Limitations” under the previous slide. .
What do we expect from our Governments, …?
What do we expect from the United Nations system?
What are the legal/regulatory requirements that are missing?
Do we need a global agenda on paperless trade/pilot projects/funding?
Standards and interoperability? …

15. Thank you