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United Nations

Economic Commission for Europe

The UN/CEFACT StrategyInformation Exchange in

Global Supply Chains

Virginia Cram-MartosDirector, Trade and Timber Division

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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

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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

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UNECE : Three Pronged Approach to TFTransport policies &Transport policies &

infrastructureinfrastructure

Standards Standards DevelopmentDevelopment

Facilitating Trade Facilitating Trade FlowsFlows

Transport1. 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 1975.

5. Synchronizes transport infrastructure

6. Makes recommendations covering the transport of dangerous goods, including hazardous wastes and substances.

TradeTrade 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

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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

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UN/CEFACT Structure

22 April 2009 10

International Tradeand BusinessProcesses Group

International Tradeand BusinessProcesses Group

Applied TechnologyGroup

Applied TechnologyGroup

Information Content Management Group

Information Content Management Group

Techniques and Methodologies Group

Techniques and Methodologies Group Legal Group

Legal 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 ChairPlenary Chair___________________

BureauBureau

Plenary ChairPlenary Chair___________________

BureauBureau

FMGFMG

ForumForumManagementManagement GroupGroup

FMGFMG

ForumForumManagementManagement GroupGroup

UNECESecretariat

UNECESecretariat

UN/CEFACT Forum

UN/CEFACT Plenary

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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

ExportExport Transport Import

SHIPBUY PAY

Prepare for

Import

Commercial Procedures

Transport Procedures

Regulatory Procedures

Financial Procedures

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Analysing the Business Processes

FinancialProcedures

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

CommercialProcedures

•Procurement / Invoice•Establish Sales Contract•Order Goods•Advise On Delivery•Request Payment

Prepare for Export Export Transport Import

SHIPBUY PAY

Prepare for Import

TransportProcedures

•Establish Transport Contract

•Collect Transport and Deliver Goods

•Provide Waybills, Goods Receipts Status Reports

RegulatoryProcedures

• Obtain Import/Export Licences

• Provide Customs Declarations• Provide Cargo Declarations• Apply Trade Security

Procedures• Clear Goods for

Import/Export

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Interoperability: Core Components and Process Models

CommercialProcedures

Prepare for Export Export Transport Import

SHIPBUY PAY

Prepare for Import

TransportProcedures

RegulatoryProcedures

FinancialProcedures

consignmentitem.details

paymentdetails

partydetails

Customsdeclarationdetails

trade item details

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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

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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

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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

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UN/CEFACT Key Work Area #1

Facilitating national & international

trading & business transactions

by working towards the elimination

of constraints

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UN/CEFACT Key Work Area #2

Engaging in open dialogue to achieve

improved coordination and cooperation

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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 KeyUN 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 KeyUN Recommendations on Codes

UN Modelling Methodology (UMM)

ECE TF Standards for Single Windows

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Standards: UN Layout Key

Cross-Sector Transaction DataCross-Sector Transaction Data(mainly business driven(mainly business driven))

Sector Specific Detail Sector Specific Detail goods items, order goods items, order line line items ...items ...

Document Function SpecificDocument Function Specific(Free Text Area)(Free Text Area)

UN Layout Key (UNLK)UN Layout Key (UNLK)

A standard and template for aligning international A standard and template for aligning international trade documentstrade documents

Rec:19 Mode 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

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):– 1987 - 100 companies– 2004 - 1 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)

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Business Requirement SpecificationsAccounting Journal List / Accounting Ledger / Accounting ReportingAccounting in Supply Chain Process / Accounting MessageBoostAero Supply Chain BusinessChart of AccountsCrop Data Sheet Process (eDAPLOS)Cross Industry InvoiceCross Industry QuotationCross Industry Remittance AdviceElectronic Agreement Template and ProcessElectronic Data Exchange Proxye-TenderingExport Specification (eCert)International Forwarding And TransferMaterial Safety Data Sheet (MSDS) InformationProject Schedule and Cost Performance ManagementSmall Scaled Lodging House Travel Product InformationSourcing of Market Survey informationTransfer of Digital RecordsTransfrontier Movement of WasteUniversal 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

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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

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UNECE: Comprehensive Treatment

InternationalInternational

RegionalRegional

NationalNational

Implementing international standards and best practices at the national level facilitates integration at regional and international levels

Recommendations/ StandardsDevelopment and Maintenance (These are instruments that can be used for compliance with

WTO rules)

Capacity Building(Helping governments elaborate TF strategies, where appropriate in compliance with WTO rules)

Technical Assistance(To implement national strategies -Done by other agencies – UNECE does not provide long term TA)

UNECE -UN/CEFACT

UNECE in partnership with other

organizations

UNCTAD, WB, UNIDO, UNDP, others

WTODevelops rules such as those for minimum transparency, equal treatment and, perhaps in the future, for simplified procedures (however, WTO does not develop the recommendations and

instruments needed for implementation)

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Thank you

Virginia Cram-Martos

Director Trade and Timber Division

http:/www.unece.org/trade

trade@unece.org