UNECE
UNECE Integrated Approach to Trade Facilitation
Tom Butterly
Deputy Chief
Global Trade Solutions Branch
UNECE Capacity-Building Workshop on the WTO Trade Facilitation Negotiations
12-13 June 2006, Chisinau, Republic of Moldova
Agenda
1.
UNECE Integrated Model of Trade
Facilitation
2.
UN/CEFACT Standards,
Recommendations and Tools
3.
International Trade Single Window
4.
Capacity Building
UNECE
UN Economic Commission for Europe (UNECE)
UN Centre for Trade Facilitation and Electronic Business (UN/CEFACT)
UNECE Integrated Model of Trade Facilitation
UNECE’s objective in international
trade:
to facilitate and strengthen the
integration of member States, and
especially countries in transition, into
the European and global economy.
UNECE region - two thirds of world
trade
UNECE
Trade Facilitation in the UNECE Context
Trade Facilitation is a key tool of
UNECE to achieve this objective
This work in trade facilitation
supports the UN Millennium
Development Goal 8 – to develop
further an open trading and financial
system that is rule-based, predictable
and non-discriminatory.
UNECE
Trade Facilitation
“The simplification, standardization
and harmonization of procedures and
associated information flows
required to move goods from seller
to buyer and to make payment “
Facilitate - to make easy or easier
UNECE
Supply Chain
Sources:
plants
vendors
ports
Manufacturers,
Regional
warehouses:
stocking
points
Field
warehouses:
stocking
points
Customers,
demand
centers
Supply
Material
Production/
purchase
costs
Manufacturing/
Inventory &
warehousing
costs
Transportation
Transportation
costs
costs
Inventory &
Source: Sim chi-Levi & al , 2000
warehousing
costs
UNECE
INTERNATIONAL TRADE TRANSACTION
PROCESS
SHIP
BUY
Prepare For
Export
PAY
Transport
Prepare For
Export
Import
Import
INVOLVES
Commercial
Procedures
Transport
Procedures
Regulatory
Procudures
• Establish
Contract
• Order Goods
• Advise On
Delivery
• Request Payment
• Establish
Transport
Contract
• Collect,Transport
and Deliver
Goods
• Provide Waybills,
Goods Receipts
Status reports
• 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 Credit
• Execute Payment
• Issue Statements
UNECE
The UN/CEFACT Vision
Stock Mini atteint
Stock Mini atteint
Contrôle Périodique
Contrôle Périodique
1
2
1
DDTTCC
2
3
4
6
18
19
Note d'achat
5
8
20
2 3
23
5
3
Offre
de de
prix
Offre
prix
fact.
Proforma
fact.
Proforma
5
4
Analyse des
Analyse des
d'offres
d'offres
Demande d'offre
Dem ande d'offre
de
deprix
prix
3
4
B.C
informatisé
B.C
inform atisé
B.C Manuel
Total Trade Transaction – Integrated supply-chain
6
9
10
4
35
Signature et cachet
Signature et cachet
35
Fax
etet
courrier
Fax
courrier
Préparation Titre
d'importation
729
12
13
14
15
30
32
17 17
28
17
18
22
23
9
16
19
24
Transitaire
Transitaire
28
8 23
Avis
d'embarq.
Avis
d'em barq.
Photocopie
Doc.
Photocopie
Doc.
Suivi
Suivicommande
commande
11
17
10
Lettre d'engagement si
produit inflamable
Assurance
16 16
Classement
Classement
desdes
documents
documents
618
8
2 2 3 5
Constitution
Constitutiondossier
dossier
Achat
Achat
3
5
6
8
6
Confirmation
Confirmation
Commandes
Commandes
22
5
8
5
Constitution
Constitution
Dossier
Dossier
16
21
13
11
14
12
Documents
Docum ents
d'expédition
d'expédition
179 24
7 21 1129 1230 1331 1432 1533
Labo
LaboContrôle
Contrôle
5 10 6 8 9 19
Competitiveness – trade efficiency
31
Réception
Réception
33
18
24
Livraison
Livraison
22
Résultat
Résultatcontrôle
contrôleLabo
Labo
Comptabilité
Comptabilité
Contrôle
Qté
Signat.
Contrôle
Qté
Signat.
& &Cachet
BLBL
Cachet
conforme
conforme
3
5
58
11
29
12
30
13
31
14
32
15
33
Stockage
Stockage
Calcul
Calculde
delalafreinte
freinte
Photocopie
Photocopie
document
docum ent
Classem entet
et
Classement
Archivage
Archivage
35
58
721 11
29
30
12
31
13
14
32 15
33
Calcul
Calculprix
prixde
de
revient
revient
7
non
nonconforme
conforme
11
Form ulaire
d' écart
167
12
7 21
21
Déchargement
Déchargem ent
Déclaration
Déclaration
douanière
douanière
Prélèvement
des
Prélèvem ent
des
échantillons
échantillons
Règlement
Règlem ent
douane
douane
11
27
28
Agence
Agence
Maritime
Maritim e
Lettre de non
conform ité / F
15
B. de Retour MP
Enlèvem ent
Enlèvement
M.PM.P
12
B. d'entrée interne
15
Produit
ProduitIsolé
Isolé
Enregistrem ent
Enregistrement
Inform atisé
Informatisé
15
Etiquettage nonconform ité
Vérificationde
delala
Vérification
saisie
saisie
Transporteur
Transporteur
Trade facilitation
13
14
Produit
retourné
Produit
retourné
12
12 12
12
36
UNECE
Economic efficiency
£
Omagh to Algeria. 1 Order –
360 net tonnes, 21 weeks
Added value
and cost
Payment by customer
Retail sale
Payment of
transport
and FOB
charges
Unload and store
Delivery to customers warehouse
Inwards clearance
Main vessel off-loading
Proof of export
Sea Crossing
Refund payment and administration
Main vessel loading
Delivery to port
Unload, re-
Exit clearance from community
pack
Delivery to customs warehouse
Dehire GKN pallets
Documentation
Refund claim
Invoice and order administration
Load and despatch
Manufacture
Short Lead Components
Export Licence
Customs formalities (Inland)
Pre-shipment Inspection
Documentation
Request Health Certificates, Licences
Order receipt and administration
Artwork
Long Lead
items
Credit Arrangements
Enquiry Validation
12
13
15
16
19
21
Weeks
(approx)
UNECE
UNECE
UNECE
The Work of Trade Facilitation

It encompasses the systematic rationalization
of processes, procedures, infrastructures,
documentation and information exchange for
international trade.

Involves Customs, other regulatory agencies,
transport, ports, customs brokers, freight
forwarders, finance, insurance, legal issues, etc

It requires strong dialogue and partnership
between government and the business
community
UNECE
Strategic Approach to Realising the Benefits of
Trade Facilitation

Undertake detailed needs analysis and set
priorities at both the national and regional
level

Total trade transaction approach

Involve the business community from the
outset

Cultivate the necessary political will
UNECE
Strategic Approach to Realising the Benefits of
Trade Facilitation

Develop national and regional
implementation strategies, with trade
facilitation as a key trade and economic
development instrument

Manage the technical assistance and
capacity building process

Use existing trade facilitation standards, tools
and instruments
UNECE
Why has Trade Facilitation become
more popular






Economic Benefits - shift in focus from technical
to trade/economic policy perspective
Greater demands from business for
predictability and speed
Information requirements
International Supply Chains
Investment Link
Trade Facilitation at the WTO
UNECE
Economic Benefits

Estimates vary from 1-15% of total trade
transaction costs

Even if only 1%, OECD estimates total gains
to world economy of US$40, billion

APEC estimates gains of US$46 billion from
trade facilitation measures - adopted TF as
key policy target.
UNECE
Economic Benefits

Benefits higher for developing countries and
for SMEs

Greater than the potential value of increased
tariff reductions under future multilateral trade
negotiations.

Inefficient or unnecessary process and
controls add no value whatsoever
UNECE
Recent UNECE Study on TF



TF plays a crucial role in deriving benefits
from overall trade liberalisation policy
Even in non-liberalised economies significant
benefits cold be gained
The introduction of trade liberalisation
measures without parallel trade facilitation
initiative might fail to realise their full
economic potential.
UNECE
Agenda
1.
UNECE Integrated Model of Trade
Facilitation
2.
Best Practice - UN/CEFACT Standards,
Recommendations and Tools
3.
International Trade Single Window
4.
Capacity Building
UNECE
STEP BY STEP PRO CESS
S in gle W indow
R ec 33,
34,35
C ross B order
U N eD ocs,
D ata E xchange
W CO DM
D ata
UNTD ED, CC,
H arm onization L ocode, code lists
D ocum ent S im plification U N L a yout K e y, U N T D E D , T F
and S tandardization
T oolkit and F o rm s R epository
P rocess S im plification B usiness/P olitical P rocess C ollaboration
and H arm onization
B etw een T rader and G ovt
P rocess
UMM
A nalysis
UN/CEFACT
 UN/CEFACT: United Nations Centre for Trade
Facilitation and Electronic Business
 Open to all UN Member States and Organisations
Recognised by ECOSOC
 Global Mandate
 Driven by member States – Plenary and Forum
 Over 400 international experts – meets worldwide
 Vision: Simple, Transparent and Effective Processes
for Global Commerce
UNECE
UN/CEFACT Standards and
Recommendations

Over 30 Recommendation, many of which are
ISO Standards
o
o
o
o
o
o
Recommendation 1 - UN Layout Key for Trade
Documents (ISO 6422)
Recommendation 25 - UN/EDIFACT (ISO 9735)
Recommendation 33 - Single Window
UNeDocs - IDS
UNTDED (ISO 7372) – CCTS - WCO Customs
data model
Recommendation 4 on TF Structures
UNECE
Trade Document Simplification and
Standardisation
The United Nations Layout Key
for Trade Documents
UNECE
Economic efficiency
£
Omagh to Algeria. 1 Order –
360 net tonnes, 21 weeks
Added value
and cost
Payment by customer
Retail sale
Payment of
transport
and FOB
charges
Unload and store
Delivery to customers warehouse
Inwards clearance
Main vessel off-loading
Proof of export
Sea Crossing
Refund payment and administration
Main vessel loading
Delivery to port
Unload, re-
Exit clearance from community
pack
Delivery to customs warehouse
Dehire GKN pallets
Documentation
Refund claim
Invoice and order administration
Load and despatch
Manufacture
Short Lead Components
Export Licence
Customs formalities (Inland)
Pre-shipment Inspection
Documentation
Request Health Certificates, Licences
Order receipt and administration
Artwork
Long Lead
items
Credit Arrangements
Enquiry Validation
12
13
15
16
19
21
Weeks
(approx)
UNECE
Rec 19:
Mode of Transport
Rec 16:
UN/Locode
Rec 17:
Codes
Information
Recfor
3: Trade
ISO
Payment Terms
Country Code
Rec 9:
Currency Code
Commodity
Code
Rec 28:
Means of
Transport
Rec 21:
Package Codes
Rec 20: Units of
United Nations Standards for Trade
Documents… SAD
UNECE
UN Trade Facilitator Toolkit


Practical tools that help trade facilitators to align
trade documents

Guidelines for Trade Facilitators

UNLK Grid in Adobe Acrobat

Background material (UNLK, UNTDED..)
Beta version available from our website at
http://unece.unog.ch/etrade/
UNECE

Standardisation and harmonisation of trade
documents is a prerequisite for paperless
trade
UNECE
Office PC
Back-end Server
Provides specialised services
Cost Recovery basis
Standard user software, Internet Browser
XML
UNeDocs
Exporter
Digital Document
Web Services
PAPER
Importer
EDIFACT
•Electronic Signature
UNeDocs
Trade & Transport
Documents
•Document Validation
Internet
•Electronic Post Mark
•Language switching
•National Requirements
Importers Bank
•Time Stamping….
HTML/PDF
F Forwarder
Security, efficiency, speed,
best business practice,
ICT integration
Adds
UNECE
Agenda
1.
UNECE Integrated Model of Trade
Facilitation
2.
UN/CEFACT Standards,
Recommendations and Tools
3.
International Trade Single Window
4.
Capacity Building
UNECE
STEP BY STEP PRO CESS
S in gle W ind ow
R ec 33 ,
3 4,35
C ro ss B o rd er
U N eD o cs,
D ata E x ch an ge
W CO DM
D ata
U N TD ED, CC,
H arm on ization L o co d e, cod e lists
D o cu m en t S im p lification U N L ayo u t K ey, U N T D E D , T F
an d S tan d ard ization
T oo lk it and Fo rm s R epo sito ry
P ro cess S im p lification B u sin ess/Po litical Pro cess C o llabo ratio n
an d H arm on ization
B etw een T rad er an d G o vt
P ro cess
UMM
A n alysis
International Trade Single Window
UN/CEFACT Recommendation 33 defines
a Single Window as a facility that allows
parties involved in trade and transport
to lodge standardized information and
documents with a single entry point to
fulfil all import, export, and transitrelated regulatory requirements.
If information is electronic, then individual
data elements should only be submitted
once.
UNECE
Current situation for exchanging trade information with
government
Current Situation for Government & Traders
Trader
Electronic
Transport
Customs
Agriculture
Paper
Health Dept
The Single Window approach
A simple,
one-stop
solution
offering
official
control with
trade
facilitation.
A 'Single Window' environment
Transport
Trader
Electronic
Single
Window
Customs
Agriculture
Paper
Health Dept
UN/CEFACT Single Window Recommendation 33
Calls on Governments to establish a Single
Window with the following features:

Allow traders to lodge standardized information
and documents with a single entry point to fulfil
all import, export, and transit-related regulatory
requirements

If information is electronic then it need only be
submitted once

Allow for the sharing of information amongst
government agencies in respect of international
trade transactions
UNECE
Recommendation 33 calls on Governments to Establish a
Single Window with the following features (continued):

Provide coordinated controls and inspections of
the various governmental authorities.

Allow payment of duties and other charges

Be a source of
information
trade related government
Recommendation includes a set of Guidelines
for the establishment of a Single Window
UNECE
UN/CEFACT Single Window Case Study Repository






Finland
Germany
Guatemala
Hong Kong SAR (China)
Mauritius
Japan






Malaysia
Senegal
Singapore
Sweden
United States
Korea.
Each case is described in a standardized template
More case studies (Ghana, Australia …)
UNECE
Diversity of SW models: adopting to specific
national/regional conditions and requirements

Financing
o
o
o

The use of Single Window
o
o

By the State (Finland, Sweden, United States),
By the private sector (e.g. Guatemala, Germany)
private-public partnership (e.g. China, Malaysia, Mauritius,
Senegal, Singapore)
compulsory (Finland, Guatemala, Mauritius, Senegal)
voluntary (China, Germany, Malaysia, Sweden, United States)
Services
o
o
Free on charge (Finland, Sweden, United States)
Paid based on various payment schemes (Guatemala, Germany,
China, Malaysia, Mauritius, Senegal, Singapore)
Benefits and Costs of a Single Window
Implementation costs
Benefits for government
and trade

Faster processes, clearance and release

Reduced costs of compliance

Reduced corruption

Reduction in bureaucratic processes

Better collection of government revenues

Improved trader compliance

risk management techniques for control
and enforcement purposes

Predictable application and explanation
of rules



From less than one million
US dollars (Guatemala) to
Between 1and 4 million
dollars (Finland, Senegal,
Malaysia)
In the US, the cost was
significantly higher but the
system is quite extensive and
covers many additional areas.
Benefits outweigh costs ……
Key factors for success

Strong leadership, which can come from the private (Guatemala) or
the public sector (Malaysia, Senegal, United States, Singapore,
Korea, Australia)

Cooperation and commitment of all stakeholders, private and public
(Finland, Mauritius, Malaysia, Senegal, United States, Singapore)

User-friendly system, which do not create complications for usual
business procedures (China, Malaysia, Sweden, Senegal, United
States)

Investments in modern technologies (Guatemala, Malaysia)

Phased, flexible approach (Germany, Mauritius, Singapore)
UNECE
Next Steps for UNECE …

Develop Recommendation 34 on Data Harmonisation

Develop Recommendation 35 on Legal Framework for Data
Exchange

Establish a Single Window Stakeholder Group

Develop a Cross Border Reference Data Model

UNeDocs pilot implementations

Expand SW Repository on the Web

Welcome to participate in work
UNECE
Agenda
1.
UNECE Integrated Model of Trade
Facilitation
2.
UN/CEFACT Standards,
Recommendations and Tools
3.
International Trade Single Window
4.
Capacity Building
UNECE
Capacity Building Approach


Capacity building workshops to help
countries understand available
recommendations and standards and see
where they can fit their needs
One Size does not fit all – but standards
essential

National regional strategies

Partnership approach

National Experience
UNECE
UN/CEFACT Comprehensive Guide to
Trade Facilitation Implementation

The Guide will help countries to:
o
o
o
o
o
identify trade facilitation needs and priorities
assess and understand available tools,
techniques and standards
assess costs for implementation
review implementation and funding options
develop an effective national and/or regional
trade facilitation implementation strategy.
UNECE
The Guide





Guide
Training material
Website
CD
6 Regional Training Workshops
Target Date for Completion of Guide – end
2006
UNECE
Relationship between the work of
UNECE (UN/CEFACT) and other
international organisations in
Trade Facilitation
UNECE
UNECE UN/CEFACT
Recommendations
/ Standards
Development and
Maintenance
UNECE in
partnership with
other organizations
Capacity Building
(Helping
governments
elaborate a national
TF strategy)
UNCTAD,WB,
UNIDO, etc
Technical
Assistance
(Donors decide
what is to be done)
- UNECE does not
provide long term
TA
WTO
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
.. now we have to make trade facilitation happen!
UNECE
THANK YOU !
[email protected]
UNECE
Follow-up

All UN/CEFACT Recommendations,
codes, standards and publications are
available for free on our website at:
o
www.unece.org/cefact/
www.unece.org/trade
www.unece.org/etrades/unedocs/
o
[email protected]
o
o
UNECE
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