unece - un/cefact standards in trade facilitation and electronic...

Panel Discussion: Implementing the future WTO commitments on trade facilitation

Geneva, 5 July 2010

UNECE - UN/CEFACT Standards in Trade Facilitation and Electronic Business

by

Mr. Serguei Kouzmine Global Trade Solutions Section

Trade Division UNECE

This expert paper is reproduced by the UNCTAD secretariat in the form and language in which it has been received. The views expressed are those of the author and do not necessarily reflect the view of the United Nations.

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UNECE

Serguei KouzmineGlobal Trade Solutions Section

Trade Division UNECE

UNECE - UN/CEFACT Standards in Trade Facilitation and Electronic Business

UNECE

WTO on the use of Standards

Document approved by a recognized body, that provides, Document approved by a recognized body, that provides, for common and repeated use, rules, guidelines or for common and repeated use, rules, guidelines or characteristics for products or related processes and characteristics for products or related processes and production methods, with which compliance is not production methods, with which compliance is not mandatory. It may also include or deal exclusively with mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or terminology, symbols, packaging, marking or labellinglabellingrequirements as they apply to a product, process or requirements as they apply to a product, process or production methodproduction method.

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UNECE

Use of standards

Where technical regulations are required and relevant international standards exist or their completion is imminent, Members shall use them, or the relevant parts of them, as a basis for their technical regulations except when such international standards or relevant parts would be an ineffective or inappropriate means for the fulfillment of the legitimate objectives pursued, for instance because of fundamental climatic or geographical factors or fundamental technological problems.

UNECE

Why emphasis on standards and regulatory convergence?

Increase of international trade – the growing visibility of technical barriers to trade;

National technical regulations;

Unfair position of foreign business operators;

A shield of local producers from foreign competition;

Negative effect, in particular, on small and medium-sized enterprises.

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UNECE

Elimination of TBTs through :

Harmonization of national technical regulations

Elaboration of international regulations (WP.29)

Mutual recognition agreements;…

Less painful – through the use of “standards-receptive “ regulatory models

UNECE

UNECE International Model for Technical Harmonization (Rec. “L”)

Principles:

- National technical regulations on the basis of international (regional standards;

- "Common regulatory objectives" on the basis of mutually agreed safety and other legitimate requirements;

- Regulators should not harmonize existing regulations, but rather should try to agree on what safety (etc.) levels they would like to achieve.

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UNECE

Trade Facilitation, WTO and Standards

How to promote use and reference to standards in TF context ? Use and role of standards at WTO TF negotiations ? What is a TF standard ? What is “use of standards” in TF context ?

UNECE

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UNECE

Rec:19Mode of Transport

Rec:16UN/Locode ISO Country Code

Rec: 17Payment Terms

Rec:9Currency Code

Rec:20 Units of Measurement

Rec: 28Means of Transport

Commodity Code

Rec: 21Package Codes

UNECE

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

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UNECE

International Trade & Business Process Group (TBG)International Trade & Business Process Group (TBG)

UNECE

UNECE Trade Facilitation and Electronic Business Standards - UN/CEFACTUNECE Trade Facilitation and Electronic Business Standards - UN/CEFACT

UN/ECOSOC

UN/ECE

UN/CEFACT

UNObjectives

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 300 international experts

• UN/CEFACT Forums – joint meetings of experts - 2 per year

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UNECE

CommercialProcedures

• Establish Contract• Order Goods• Advise On Delivery• Request Payment• Packing• Inspection• Certification• Accreditation• Warehousing

CommercialProcedures

• Establish Contract• Order Goods• Advise On Delivery• Request Payment• Packing• Inspection• Certification• Accreditation• Warehousing

TransportProcedures

• Establish Transport Contract

• Collect, Transport and Deliver Goods

• Provide Waybills, Goods Receipts Status reports etc.

TransportProcedures

• 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

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

Financial Procedures

• Provide Credit Rating• Provide Insurance• Provide Finance• Execute Payment• Issue Statements

INVOLVESINVOLVES

Prepare for Export

Export Transport Import

SHIPBUY PAY

Prepare for Import

International Trade Transaction ProcessInternational Trade

Transaction Process

Source: The UN/CEFACT International Supply Chain Reference Model

UNECE

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UNECE

Success Stories UN/EDIFACTThe international standard for electronic data exchange

Backbone of global trade

Bi-annual publication by UNECE

DTM+4:20060620:102' NAD+BY+++Bestellername+

Strasse+Stadt++23436+xx' LIN+1++Produkt Schrauben:SA' QTY+1:1000'

UNECE

United Nations Trade Data Element Directory (UNTDED)

(International Standards Organisation ISO 7372)(International Standards Organisation ISO 7372)

Developed to provide a Directory to facilitate Developed to provide a Directory to facilitate open interchange of data in international tradeopen interchange of data in international tradeStandard data element names with description of Standard data element names with description of meaning (data value) and a specification of meaning (data value) and a specification of character representationcharacter representationFully consistent with UN/EDIFACTFully consistent with UN/EDIFACT

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UNECE

UN/CEFACT Core Component Library (CCL)

Name

Address

email

Phone #

Company

Company

Phone #

email

Address

Name

Party

Party ID

Invoice

PO #

Line Item

Cost

CONTEXT

Date

Order.Date

Business InformationEntities (BIE’s)

UNECE

UN/CEFACT eDocument Standards

• UN Layout Key for Trade Documents (UNECE Recommendation 1)

• United Nations Trade Data Elements Directory (UNTDED/ISO7372)

• UN/EDIFACT

• UN/CEFACT Core Component Technical Specification

• UN/CEFACT XML Naming & Design Rules

• UN/CEFACT Core Components Library

• UN/CEFACT Codes Recommendations

• UNECE Trade Facilitation Recommendations

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UNECE

Paper Documentaligned to UN Layout Key

Electronic Document ExchangeXML or UN/EDIFACT

Electronic Edit Form

<?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:1.0:0.70UBL_Library_0p70_Invoice.xsd">

<cat:ID>token</cat:ID><cat:IssueDate>2003-02-14</cat:IssueDate><n:TaxPointDate>2003-02-14</n:TaxPointDate><cat:BuyerParty>

<cat:PartyName><cat:Name>Bills

Microdevices</cat:Name></cat:PartyName>

</cat:BuyerParty><cat:SellerParty>

<cat:ID/><cat:PartyName>

<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 Documents

UNECE

CCL and the WCO DM

WCO/TBG4 submission to the Core Component Library - 295 entries.

These entries represented the data concepts that were part of the WCO data model

but were not yet in the Core Component Library.

Subject to final TBG17 approval and audit, there will be 201 additions to the Core

Components, 3 changes to existing core components and over 50 deletions from the

Core Component Library.

BIEs yet to be submitted, Business Information Entities to be submitted, which is the

next stage of submission. With the submission of the BIEs, full equivalence between

the structure and components WCO Data Model and the Core Component Library will

be established.

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UNECE

Formal Memorandum of Understanding (MoU)

Commits participants to:

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

eBusiness StandardsCooperationeBusiness StandardsCooperation

UNECE

Electronic

Agriculture

SingleWindow

TraderTransport

Customs

Health Dept

A 'Single Window' environment

Paper

Electronic

Agriculture

Paper

Trader

Customs

Health Dept

Transport

Current Situation for Government & Traders

FROM TO

Single Window Concept

UN/CEFACT Recommendation 33

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UNECE

Single Window Definition

UN/CEFACT Recommendation 33

“A facility that allows parties involved in trade and transport to lodge standardised information and documents with a single entry point to fulfil all import, export and transit related regulatory requirements.

If information is electronic, then individual data elements should only be submitted once.”

MP3

UNECE

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

UNECE is Working on Single Window Implementation Framework (SWIF) – under ITAID

……..

MP3 Look for better slides. shorter text, only oine fontMarkus Pikart, 3/9/2010

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UNECE

Capacity Building

1) Tools • Guidelines, such as those for

Recommendations 1, 4, 33• Business Process Analysis Guide• Trade Document Alignment Guide• Single Window Repository• Trade Facilitation Implementation Guide

2) National and Regional Workshops organized; • With extra-budgetary funds • As part of UN Development Account projects

UNECE

Recommendations/ Standards Development and Maintenance

Capacity Building(Helping governments elaborate a national TF strategy)

Technical Assistance(Donors decide what is to be done) -UNECE does notprovide long term TA

UNECE -UN/CEFACT

UNECE in partnership with other

organizations

UNCTAD,WB,UNIDO, etc

UNECE’s role is to create the standards through participation of UN member States and the business community in UN/CEFACT Working Groups. 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 organizations assist in long –

term technical assistance (UNCTAD, WB etc). The WTO sets the rules

WTO

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UNECE

UPCOMING EVENTS

UN/CEFACT Geneva Forum – 30 August to 3 September

Special Session for Missions – 31 August

UN/CEFACT Plenary – 8 – 10 December

UNECE

Follow-up

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

www.unece.org/tradewww.unece.org/cefact/

E-mail: [email protected]