United Nations Economic Commission for Europe

1. United Nations Economic Commission for Europe The UN/CEFACT Strategy Information Exchange in Global SupplyChains Virginia Cram-Martos Director, Trade and Timber Division

2. This Presentation • Introductory Background • Public-Private Stakeholders • Integrated Strategy • Collaboration Framework

3. Economic cooperation Statistics Transport Trade Housing Sustainable energy Environmental policy UNECE Work Areas Timber & Forestry

4. 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

5. UNECE : Three Pronged Approach to TF 5

6. Transport • Harmonizes traffic regulations and road signs • Promotes road safety. • Manages the World Forum for Harmonization of Vehicle Regulations. • 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. • Synchronizes transport infrastructure • Makes recommendations covering the transport of dangerous goods, including hazardous wastes and substances.

7. Trade 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

8. UNITED NATIONS CENTRE FOR TRADE FACILITATION AND ELECTRONIC BUSINESS SIMPLE, TRANSPARENT AND EFFECTIVE PROCESSES FOR GLOBAL BUSINESS

9. UN/CEFACT Fundamentals • Intergovernmental • Public-private sectorcollaboration • Global remit • Multidisciplinary • Consensus-driven • Recommendations / Standards • Real-world solutions-oriented • Free toparticipate / touseoutcomes 9

10. UN/CEFACT Structure UN/CEFACT Plenary Plenary Chair ___________________ Bureau UNECESecretariat FMG ForumManagement Group UN/CEFACT Forum International Trade and Business Processes Group Applied Technology Group Information Content Management Group Techniques and Methodologies 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 10

11. 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

12. BUY PAY SHIP Prepare for Export Prepare for Import Transport Export Import Commercial Procedures Transport Procedures Regulatory Procedures Financial Procedures 12 The International Supply Chain

13. Analysing the Business Processes BUY PAY SHIP Prepare for Import Prepare for Export Transport Export Import • Commercial • Procedures • Procurement / Invoice • Establish Sales Contract • Order Goods • Advise On Delivery • Request Payment • Transport • Procedures • Establish Transport Contract • Collect Transport and Deliver Goods • Provide Waybills, Goods Receipts Status Reports • Regulatory • Procedures • Obtain Import/Export Licences • Provide Customs Declarations • Provide Cargo Declarations • Apply Trade Security Procedures • Clear Goods for Import/Export • Financial • Procedures • Provide Credit Rating • Provide Insurance • Provide Credit • Execute Payment • Issue Statements 13

14. Interoperability: Core Components and Process Models BUY PAY SHIP Prepare for Export Prepare for Import Transport Import Export • Regulatory • Procedures • Financial • Procedures • Commercial • Procedures Transport Procedures Customs declaration details consignment item.details payment details party details trade item details

15. 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

16. Trade Facilitation and Electronic Business • Addressedthrough a unifiedstrategydealingwithcommonprocessesthatsupportbusinessandgovernment, acrosssectoraldomainsandacross countries • Based on re-usablebuildingblocksfrom a frameworkoftechnicalstandardsthatsupportbusinessstandardsthatsupporttradefacilitationrecommendations

17. UN/CEFACT Approach • Applies a total transactionapproachwhenworkingfortheeliminationofconstraints • Simplifiesproceduresanddocuments, encompassingbothborder-crossingandothergovernmentandcommercialprocesses • Capturesbusinessknowledge in processandinformationmodels • Mapsthesemodelstonewinformationtechnologiesastheyemerge

18. UN/CEFACT Key Work Area #1 Facilitating national & international trading & businesstransactions byworkingtowardstheelimination ofconstraints

19. UN/CEFACT Key Work Area #2 Engaging in open dialoguetoachieve improvedcoordinationandcooperation

20. UN/CEFACT Key Work Area #3 Improvingtheabilityofbusiness, trade and administrative organizationsto exchangeproductsand relevant serviceseffectively

21. Electronic Documents ECert, Cross Border Invoice, Material Safety Sheet Supply Chain Data Model Core Component Library Documentation simplification UN Layout Key UN Recommendations on Codes Business Process Analysis UN Modelling Methodology (UMM) ECE TF Standards for Single Windows

22. Electronic Documents ECert, Cross Border Invoice, Material Safety Sheet Supply Chain Data Model Core Component Library Documentation simplification UN Layout Key UN Recommendations on Codes Business Process Analysis UN Modelling Methodology (UMM) ECE TF Standards for Single Windows

23. Standards: UN Layout Key UN Layout Key (UNLK) A standard and template for aligning international trade documents Cross-Sector Transaction Data (mainly business driven) Sector Specific Detail goods items, order line items ... Document Function Specific (Free Text Area)

24. Rec:19 Mode of Transport Rec:16 UN/Locode Rec: 17 Payment Terms ISO Country Code Rec:9 Currency Code Commodity Code Rec: 28 Means of Transport Rec: 21 Package Codes Rec:20 Units of Measurement

25. Standards: UNTDED 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

26. Standards: UN/EDIFACT • 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

27. Standards: ebXML (ISO 15000) • 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

28. Business Requirement Specifications Accounting Journal List / Accounting Ledger / Accounting Reporting Accounting in Supply Chain Process / Accounting Message BoostAero Supply Chain Business Chart of Accounts Crop Data Sheet Process (eDAPLOS) Cross Industry Invoice Cross Industry Quotation Cross Industry Remittance Advice Electronic Agreement Template and Process Electronic Data Exchange Proxy e-Tendering Export Specification (eCert) International Forwarding And Transfer Material Safety Data Sheet (MSDS) Information Project Schedule and Cost Performance Management Small Scaled Lodging House Travel Product Information Sourcing of Market Survey information Transfer of Digital Records Transfrontier Movement of Waste Universal Accounting Journal Process 28

29. UN/CEFACT and Customs • 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

30. 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

31. UNECE: Comprehensive Treatment Implementing international standards and best practices at the national level facilitates integration at regional and international levels 31

33. Thank you Virginia Cram-Martos Director Trade and Timber Division http:/www.unece.org/trade trade@unece.org 33