1. Tauno Kangur Global Trade Solutions Section Trade Division, UNECE
UNECE Standards for Global
e-Business Interoperability
Tauno Kangur Global Trade Solutions Section Trade Division, UNECE
UNESCAP -ECO Joint Trade Facilitation Forum
on Paperless Trade and Single Window
Kish Island, May 2012

2. UNECE Work Areas Economic cooperation Statistics Transport Housing
Sustainable
energy
Housing
Trade
Environmental policy

3. UNECE Trade Facilitation and Electronic Business Standards - UN/CEFACT
Objectives
Simple, transparent and effective processes for global business
Efficient and automated exchange of information
Means
Standards developed in an open and transparent environment
Public Private Sector Partnership – over 200 international experts
Specific Customs Domain
UN/CEFACT Forums – joint meetings of experts - 2 per year – September Vienna UN
UN/ECOSOC
UNECE
UN/CEFACT

4. Regulatory Procedures
International Trade Transaction Process
Commercial
Procedures
Establish Contract
Order Goods
Advise On Delivery
Request Payment
Packing
Inspection
Certification
Accreditation
Warehousing
Transport
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
Financial Procedures
Provide Credit Rating
Provide Insurance
Provide Finance
Execute Payment
Issue Statements
INVOLVES
Prepare for Export
Export
Import
SHIP
BUY
PAY
Prepare for Import
Source: The UN/CEFACT International Supply Chain Reference Model

5. Success Stories UN Layout Key
Specifically endorsed in the WCO Revised Kyoto Convention and the draft WTO TF Agreement
Basis for the EU Single Administrative Document (SAD)
Endorsed by key international organizations
Administrative hurdles from cumbersome procedural and documentary requirements can account for up to 75% delay of shipments. Each additional day of delay may reduce trade volume by at least 1% or approximately 7% if the products are agricultural commodity.2
The costs of paperwork account for 3.5 – 7% of the value of the goods.3 It can be as high as 10 – 15% if there are typing and other error.4
The United Nations, through its Centre for Trade Facilitation and Electronic Business (UN/CEFACT), supports activities dedicated to improving the ability of business, trade and administrative organizations, from developed, developing and transitional economies, to exchange products and relevant services effectively. Its principal focus is on facilitating national and international transactions, through the simplification and harmonisation of processes, procedures and information flows, and so contribute to the growth of global commerce. This is achieved by:
Analysing and understanding the key elements of international processes, procedures and transactions and working for the elimination of constraints;
Developing methods to facilitate processes, procedures and transactions, including the relevant use of information technologies;
Promoting both the use of these methods, and associated best practices, through channels such as government, industry and service associations;
Coordinating its work with other international organizations such as the World Trade Organization (WTO), the World Customs Organization (WCO), the Organization for Economic Co-operation and Development (OECD), the United Nations Commission on International Trade Law (UNCITRAL) and the United Nations Conference on Trade and Development (UNCTAD), notably in the context of a Memorandum of Understanding for a Global Facilitation Partnership for Transport and Trade;
Securing coherence in the development of Standards and Recommendations by co-operating with other interested parties, including international, intergovernmental and non-governmental organizations. In particular, for UN/CEFACT Standards, this coherence is accomplished by cooperating with the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the International Telecommunication Union (ITU) and selected non-governmental organizations (NGOs) in the context of the ISO/IEC/ITU/UNECE Memorandum of Understanding (MoU). These relationships were established in recognition that UN/CEFACT's work has broad application in the areas beyond global commerce and that interoperability of applications and their ability to support multi-lingual environments, are key objectives.

6. Rec. 20 Units of Measurement
Mode of Transport
Rec.16
UN/LOCODE
Rec. 17
Payment Terms
Rec. 3
ISO Country Code
Rec. 9
ISO Currency Code
Commodity Code
Rec. 28
Means of Transport
Rec. 21
Package Codes
Rec. 20 Units of Measurement

7. Electronic Document Exchange aligned to UN Layout Key
Electronic Documents
Electronic Document Exchange
XML or UN/EDIFACT
<?xml version="1.0" encoding="UTF-8"?>
<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">
<cat:ID>token</cat:ID>
<cat:IssueDate> </cat:IssueDate>
<n:TaxPointDate> </n:TaxPointDate>
<cat:BuyerParty>
<cat:PartyName>
<cat:Name>Bills Microdevices</cat:Name>
</cat:PartyName>
</cat:BuyerParty>
<cat:SellerParty>
<cat:ID/>
<cat:Name>Joes Office Supply</cat:Name>
</cat:SellerParty>
<cat:InvoiceLine>
<cat:ID>1</cat:ID>
<cat:InvoicedQuantity unitCode="token">5</cat:InvoicedQuantity>
<cat:Item>
<cat:Description>Pencils, box #2 red</cat:Description>
</cat:Item>
</cat:InvoiceLine>
</n:Invoice>
Electronic Edit Form
Paper Document
aligned to UN Layout Key 7

8. Success Stories UN/EDIFACT
The international standard for electronic data exchange
Backbone of global trade
Bi-annual publication by UNECE
DTM+4: :102'
NAD+BY+++Bestellername+
Strasse+Stadt xx'
LIN+1++Produkt Schrauben:SA'
QTY+1:1000'
Administrative hurdles from cumbersome procedural and documentary requirements can account for up to 75% delay of shipments. Each additional day of delay may reduce trade volume by at least 1% or approximately 7% if the products are agricultural commodity.2
The costs of paperwork account for 3.5 – 7% of the value of the goods.3 It can be as high as 10 – 15% if there are typing and other error.4
The United Nations, through its Centre for Trade Facilitation and Electronic Business (UN/CEFACT), supports activities dedicated to improving the ability of business, trade and administrative organizations, from developed, developing and transitional economies, to exchange products and relevant services effectively. Its principal focus is on facilitating national and international transactions, through the simplification and harmonisation of processes, procedures and information flows, and so contribute to the growth of global commerce. This is achieved by:
Analysing and understanding the key elements of international processes, procedures and transactions and working for the elimination of constraints;
Developing methods to facilitate processes, procedures and transactions, including the relevant use of information technologies;
Promoting both the use of these methods, and associated best practices, through channels such as government, industry and service associations;
Coordinating its work with other international organizations such as the World Trade Organization (WTO), the World Customs Organization (WCO), the Organization for Economic Co-operation and Development (OECD), the United Nations Commission on International Trade Law (UNCITRAL) and the United Nations Conference on Trade and Development (UNCTAD), notably in the context of a Memorandum of Understanding for a Global Facilitation Partnership for Transport and Trade;
Securing coherence in the development of Standards and Recommendations by co-operating with other interested parties, including international, intergovernmental and non-governmental organizations. In particular, for UN/CEFACT Standards, this coherence is accomplished by cooperating with the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the International Telecommunication Union (ITU) and selected non-governmental organizations (NGOs) in the context of the ISO/IEC/ITU/UNECE Memorandum of Understanding (MoU). These relationships were established in recognition that UN/CEFACT's work has broad application in the areas beyond global commerce and that interoperability of applications and their ability to support multi-lingual environments, are key objectives.

9. UN/EDIFACT 209 Messages, including 7 Customs Messages:
 CUSCAR Customs cargo report message                          CUSREP Customs conveyance report message                      CUSDEC Customs declaration message                            CUSEXP Customs express consignment declaration message        CUSRES Customs response message                               CUSPED Periodic customs declaration message
GOVCBR Government Cross Border Regulatory message

10. United Nations Trade Data Element Directory (UNTDED)
(International Organisation for Standardisation
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

11. UN/CEFACT Core Component Library (CCL)
Date
Business Information
Entities (BIE’s)
Company
Phone #
Address
Name
Name
Order.Date
Address
Cost
Party ID
Line Item
Party
PO #
Important to note:
Data Elements can be aggregated to build bigger structures such as “documents” much like Lego can be used to build bigger toys.
At this point, there are no display semantics or dependencies.
Clean separation of content from display is a key concept for enabling one format to be consumed by both humans and applications.
Processes can be referenced and inferred by the context in which the data element aggregation is used.
Phone #
Invoice
CONTEXT
Company

12. UN/CEFACT Cross Industry Invoice - CII
This common global standard is based on a set of business requirements from different industries and stakeholders in both the private and public sectors
The European Commission Expert Group on e-invoicing recommends that all actors within both the private and public sector adopt a common invoice content standard and data model – the UNCEFACT Cross-Industry Invoice (CII) v.2 ( invoicing/report_en.pdf)

13. WCO Data Model & UN/CEFACT Standards
WCO Data Model v 3.0
UN/EDIFACT
GOVCBR
XML Schemas / messages Other readers, Guidelines etc
UN/ECE RECOMMENDATIONS
No. 7: REPRESENT OF DATE AND TIME
No. 16 : UN/LOCODE
No. 20 : UNITS OF MEASURE UN/EDIFACT
No. 28 : MODE AND TYPE OF TRANSPORT
etc
Message Implementation Guidelines
International Code Standards
UN/CEFACT CCL
Business Process Models:
UN/CEFACT has developed the UN/CEFACT Modeling Methodology (UMM) to provide a guideline for modeling inter-organizational business processes from a global perspective. It employs a top-down approach that describes step-by-step on how process analysts should document knowledge on process attributes that they capture from business experts.
International supply chains consist of integrated and coordinated flows of information, goods and payments. Buy-Trade procedure, Ship – Transport procedure, Pay- Financial procedure.
Data elements include Data sets and Information Model with alignments of UNTDED( Trade Data Elements Directory).
International Code Standards:
Message Implementation Guidelines: XML & EDIFACT. GOVCBR: Government Cross Border Regulatory message
Data Elements
UNTDED
Business Process Models
UMM, Buy-Ship-Pay Model

14. Single Window Instruments
UN/CEFACT Recommendation & Guidelines on Establishing a Single Window (Recommendation No 33)
Draft UN/CEFACT Recommendation 34 - Data Simplification & Standardization for International Trade
Draft UN/CEFACT Recommendation 35 - Establishing a Legal Framework for an International Single Window
UN/CEFACT Repository of Single Window applications
Single Window Implementation Framework (SWIF) – under ITAIDE (Information Technology for Adoption and Intelligent Design for eGovernment)
……..
SW Implementation Framework was developed as Project co-funded by the European Commission within
the Sixth Framework Programme ( ) from 2006 to 2010
ITAIDE aims to integrate and strengthen European research for innovative government by enhancing service offerings and disseminating good governance practice through increased security and controls, while employing intelligent software tools to reduce administrative load burden.
ITAIDE addresses the issue of eCustoms: How can customs documents and procedures be digitized and redesigned, and what business and administrative challenges may be encountered?
Our research bridges the technical, procedural and inter-organizational network layers.
Our inter-disciplinary project covers five main areas: (1) standardization, (2) interoperability, (3) control and redesign, (4) network innovation and (5) value assessment.
ITAIDE partners: Free University Amsterdam, Copenhagen Business School, SAP, IBM, UNECE and others

15. Implementing Single Window Using UN/CEFACT and WCO Standards & Recommendations
Rec 33, SW repository, (Rec 34,35)
Single Window
Cross Border
Data Exchange
Data Model based on International Standards (e.g. WCO DM)
National Data Harmonization
UNTDED, Core Component Library, UN/LOCODE and code lists
Document Simplification and Standardization
UN Layout Key, Master Document,
UNTDED, TF Toolkit and Forms Repository
Process Analysis and Simplification
Business/Political Process - Collaboration Between Trader and Government (UN/CEFACT Rec. 4, Rec. 18), Revised Kyoto Convention
UN/CEFACT International Supply Chain Reference model,
Unified Modeling Methodology (UMM), Business Process Analysis Guide
Global Facilitation Partnership for Trade and Transport (GFP) Audit Methodology

16. Single Window Phased Development Approach
1st Cycle: Customs Clearance + Permits & Certificates Issuance
2nd Cycle: Transport + Financial Settlement
3rd Cycle: Cross-border Paperless Trading
Cross Border Exchange of data between Single Windows
Airport
Bank
Customs
Airline
Ministry of Agriculture
Internet
Insurance
NSW
NSW
Other country
NSW
The implementation approach are carried on in phases beginning with Trade Compliance Hub.
This includes as first stage electronic customs declaration and clearance, and related permit issuing activities through an architecture called GDX – Government Data Exchange Platform.
The second stage will involve more electronic documents exchange among cargo-movement providers,
such as port operators, carriers, freight forwarders, other logistics service providers, banks and cargo insurance companies.
In the third stage, the system will be extended to cover more export and import-related procedures. For example, more industrial sectors and users will be covered.
This e-logistics platform and its work programmes are aimed also to support regional cooperation, particularly the APEC Paperless Trade Pathfinder initiatives, GMS Cross-Border MOU, and ASEAN Single Window Initiatives.
Ministry of Commerce
Shipping line
Sea Port 16 16 16

17. Trade Facilitation Layers
UNECE – UN/CEFACT Integrated Framework of Standards for Paperless Trade
Trade Facilitation Layers
Framework
for Data
Exchange
XML/EDI
Schemas,
Paper Forms
Data
Model
Reusable
Elements
Policy
(National,
Regional,
Sector)
Single Window, Paperless Trade …
Capacity building and projects by UN System…
Revised Kyoto Convention, WTO, eTIR …
Imple-
menta-
tion
UN/CEFACT Recommendations
Single Window (Rec 33)
Rec: 6,11,12,14,18,22,26
SAD
WCO
Rec
IATA
AWB …
Inter-
change
UNTDED
Core
Components
UN/EDIFACT
Data Level
UNTDED United Nations Trade Data Directory
UMM - UN/CEFACT Modelling Methodology
CCTS - Core Component Technical Specification
NDR Naming and Design Rules
EDIFACT - Electronic Data Interchange for Administration, Commerce, and Transport
IATA AWB - IATA Airway Bill
eTIR electronic - Transit International Routier
NDR - Naming and Design Rules
SAD - Single Administrative Document
XML - Extensible Markup Language
WCO - World Customs Organization
Generic
UN Layout Key
Code lists Rec …
UMM, CCTS, XML NDR
ISO 9735(EDIFACT Syntax) …
Paper
Electronics Business

18. UN/CEFACT Programme Development

19. Inland Transport Committee (ITC)
The UNECE
Inland Transport Committee (ITC)
57 Agreements and Conventions
Examples:
TIR Convention, 1975
European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR), 1957
Convention on the Contract for the International Carriage of Goods by Road (CMR), 1956
Convention on the Harmonization of Frontier Controls of Goods, 1982
The history of the TIR Convention starts in the late nineteen forties, at the time when the European economies started recovering from the turmoil of the Second World War.
A number of countries in Europe thought it necessary to develop a reliable transit system which would find a solution for the complicated and lengthy Customs procedures which up to that time were normal at border crossings.
The objectives for such a Customs transit system were formulated as follows. One wanted to create a Convention which would provide Customs authorities with efficient Customs procedures for road transport.
In addition, the aim was to find a solution for the Customs duties and taxes which were involved in the transport. Up until that time it was normal that at each border crossing, Customs authorities would require a guarantee from the transport operator to secure the payment of Customs duties and taxes in case the goods would get lost in the course of the transport in the territory of that country. Once the goods would have left the country this guarantee would be released or paid back.
The transport operator would then have to pay a new guarantee to enter the following country. The idea was to create an international guarantee, which would be valid from the Customs office of departure to the Customs office of destination. By doing so, the Convention would not only be good for Customs but also for the transport industry because transport operators would save money if they could rely on simple, harmonized and speedy Customs formalities.

20. National/ Subregional Policies and Implementation Strategies
How do we bridge the gap between the policy framework & the implementation at regional/national level?
Regional Single Window and Paperless Trading initiatives
National/ Subregional Policies and Implementation Strategies
National Single Window Projects
UN Network of Experts
International Standards and Technology
WCO Data Model, UNTDED
Core Components
ebXML

21. UN Single Window Symposium in December 2011
UN Single Window Symposium in Geneva, 12 to 13 December 2011 – Single Window 10 years on – where are we now and where should we go
Explored possible new models for trade data interchange – including the use of cloud computing
Global perspective - organised by all five UN Regional Commissions (Africa, Asia, Europe and North America, Middle East, Latin America)

22. UNECE and UN/CEFACT upcoming meetings
UNECE 5th Session of the
Committee on Trade June 2012
UN/CEFACT Meeting of
Experts – Vienna, Austria September 2012
Experts – Geneva, Switzerland April 2013
UN/CEFACT 19th Plenary June 2013
Experts – India autumn 2013

23. UNECE in partnership with other organizations
UNECE - UN/CEFACT
UNECE in partnership with other organizations
UNCTAD, WB, WCO, UNIDO, etc
Technical Assistance
(Donors decide what is to be done) - UNECE does not provide long term TA
Recommendations Standards Development and Maintenance
Capacity Building
(Helping governments elaborate a national TF strategy)
UNECE’s role is to create the standards through participation of UN member States and the business community in UN/CEFACT Programme Development Areas. We engage in an active Capacity Building programme to help countries understand how best to implement these standards, given their unique needs, priorities and resources while other organisations assist in long–term technical assistance (UNCTAD, WB etc). The WTO sets the rules
WTO
Develops rules such as those for minimal transparency, equal treatment and (perhaps in the future) for simplified procedures
(WTO does not develop the recommendations and instruments needed for implementation)

24. Follow-up
All UNECE and UN/CEFACT Recommendations, codes, standards and publications are available for free on our website at: