Capacity Building Workshop on Trade Facilitation Implementation for

Asia and the Pacific Region

Integrated Model on Trade Facilitation and e-Business

2005-03-17/18, KL, Malaysia

Jean E. Kublerjean.kubler@unece.org

UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE

UN/CEFACT

UNECE regional level and cooperation with other UN Regional Commissions and organizations

Develop and maintain international standards and instruments;

Integrating UN/CEFACT’s instruments into the new policy frameworks;

Strategic capacity building and promotion to support gretaer implementation of existing instruments

Simple, Transparent and Effective Processes for Global Business.

UN/CEFACT Mission

UN/CEFACT

Enquiry ValidationCredit Arrangements

Refund claim

Long Leaditems

Export LicenceShort Lead Components

Delivery to port

DocumentationDehire GKN pallets

Delivery to customers warehouse

Unload and store

Retail sale

Payment by customer

Payment oftransportand FOBcharges

£

Added valueand cost

Omagh to Algeria. 1 Order – 360 net tonnes, 21 weeks

Invoice and order administration

Unload, re-pack

Delivery to customs warehouse

Exit clearance from community

Refund payment and administration

12 13 15 16 19 21 Weeks

(approx)

Main vessel loading

Sea Crossing

Main vessel off-loading

Artwork Order receipt and administrationRequest Health Certificates, Licences

Documentation

Pre-shipment InspectionCustoms formalities (Inland)

Manufacture

Load and despatch

Proof of export

Inwards clearance

Time and Cost implications

UN/CEFACT

Current Logistics Cost/GDP

Thailand

Japan

USA

EU

~ 25-30%

~ 11%

~ 10%

~ 7%

• Logistics – Efficiency flow of Goods• Logistics Cost in Thailand is quite high.

Cost reduction opportunity in LogisticsFor example 5% of GDP ~ 7.5 Million USD

Competitiveness of a nation

UN/CEFACT

Competitive Strategy

Supply Chain Strategy

Drivers

Inventory Transportation

Facilities Information

Supply Chain Structure

Source: Chopra & Meindl 2001

Efficiency Responsiveness

Drivers of Supply Chain Performance

UN/CEFACT

Ministry of Transport

Ministry of Trade

Ministry of Finances

Reduce transaction costsReduce transaction costs

Monitor external trade flowsMonitor external trade flows

Customs reform& modernization

Trade facilitationmeasures

Door-to-doorLogistics

Private Sector

Actor : Institutions

UN/CEFACT

Actor: Enterprises

Source : Complex Networked Supply Chain [Harwick, 1999

UN/CEFACT

Constitution dossier Achat

Signature et cachet

Résultat contrôle Labo

Labo Contrôle

Fax et courrier

Préparation Titre d'importation

Assurance

Suivi commande

Lettre d'engagement si produit inflamable

Constitution Dossier

Calcul de la freinte

Stockage

non conforme

Formulaire d' écart

Lettre de non conformité / F

Produit Isolé

B. de Retour MP

Enregistrement Informatisé

B. d'entrée interne

Vérification de la saisie

Calcul prix de revient

Classement et Archivage

Photocopie document

conforme

Transporteur

Livraison

Avis d'embarq.

Documents d'expédition

Agence Maritime

Déclaration douanière

Règlement douane

Enlèvement M.P

D T C

Contrôle Périodique

Note d'achat Demande d'offre de prix

B.C ManuelAnalyse des d'offres

Stock Mini atteint

B.C informatisé

55

Offre de prix fact. Proforma

Confirmation Commandes

17

16108

2322

1918

24

1 2 4

Classement des documents

Produit retourné

Comptabilité

Transitaire

3

52

5543 1086

18

9

19 20 22

30 31

32 33

8 29185 17 21

14 12

13 11

13 14

6

5 8 29 30 31

32 33

3

16 17

1716

Photocopie Doc.

Prélèvement des échantillons

Déchargement

Contrôle Qté Signat. & Cachet BL

Réception

11

16 17 2828

5 8 21

30 31

29

3332

Etiquettage non-conformité

2121

28

27

23

10 19

18 24

8

22

24

333231302921

36

11

7

15

15

15

12

12 12 12 12

12

Constitution dossier Achat

Signature et cachet

Résultat contrôle Labo

Labo Contrôle

Fax et courrier

Suivi commandeConstitution

Dossier

Calcul de la freinte

Stockage

non conforme

Produit Isolé

Enregistrement Informatisé

Vérification de la saisie

Calcul prix de revient

Classement et Archivage

Photocopie document

conforme

Transporteur

Livraison

Avis d'embarq.

Documents d'expédition

Agence

Maritime

Déclaration

douanière

Règlement douane

Enlèvement M.P

Contrôle Périodique

Demande d'offre

de prix

Analyse des d'offres

Stock Mini atteint

B.C informatisé

33

Offre de prix fact. Proforma

Confirmation Commandes

98651

Classement des documents

Produit retourné

Comptabilité

Transitaire

2

32

332 54 6

12 13 14 15

5 763

4

3 5 11 12 13

14 15

2

Photocopie Doc.

Prélèvement des échantillons

Déchargement

Contrôle Qté Signat.

& Cachet BL

Réception

3 5 7

12 13

11

1514

77

8

5 9615141312117

16

D T C

911

Total Trade Transaction – Integrated supply-chain

The UN/CEFACT Vision

Trade facilitation

Competitiveness – trade efficiency

UN/CEFACT

Integration and conectivity

Single Window, UN/CEFACT Rec 33

Rec 4

Infrastructure

High SpeedBackbone

Server & Storage

IP IntegratedNetwork

IP Convergence

Service

Continuous Business Operation

SMC Processes

SecurityEnterprise

System Mgmt

Enterprise Intelligence

Government SystemsA

da

pto

r

Ad

ap

tor

Private Sector

Systems

EnterpriseServiceDelivery

Enterprise Services & Applications

PortalFramework

Citizen

sE

mp

loyees

Private S

ector

Go

vernm

ents

ExternalSystems

InternetKiosk

Telephony

Forms

Wireless

e-MailLetters

FaxBrochures

Face to Face

CHANNELS

UN/CEFACT

The International Trade Transaction Process

BUY SHIP PAYSeller Buyer

Intermediary

Authority

UN/CEFACT

The International Trade Transaction Process

BUY

EstablishBusiness

Agreement

RequestQuotation

Negotiate Agree Contract

Order

INVOLVES

Commercial Procedures

• Establish Contract• Order Goods• Advise On Delivery• Request Payment

UN/CEFACT

The International Trade Transaction Process

SHIP

Prepare forExport

Export Transport Prepare for

ImportImport

INVOLVES

Transport Procedures

• 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

V: Transit - VIII: Proportionality- X:

Publication

UN/CEFACT

Article V

UN/CEFACT

The International Trade Transaction Process

PAY

Prepare forPayment

Request Payment

Initiate Payment

Execute Payment

Advise Payment

INVOLVES

Financial Procedures

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

UN/CEFACT

YESTERDAY(informal description)

Scope

Fieldspecs

Formatspecs

Usageguidelines Usage

rules

Example ValidationrulesInformation

flow

TODAY(A methodology)

BusinessRequirements

WHY

LogicalDesign

WHAT

TechnicalImplementation

HOW

TRANSACTIONS & DOCMENTSS

BUSINESS MODEL

-SWIFTIdent: BIC

InstructingParty

-SWIFTIdent: BIC

ExecutingParty

-Security: ISIN-Action: {Buy/Sell}

Trade

-TradeDate: Date-PriceCondition: Real-OrderedQty: Real

TradeCondition

OrderToBuyOrSell

INTERNET

Codification and transfer of knowledge

Unified Modelling

Methodology (UMM)

June 2005 – 4 BRS UN/CEFACT

Standards

UN/CEFACT

Combined Approach

Paper Documentaligned to UN Layout Key

UNeDocs

XML 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>

UN/CEFACT

Objectives must be clear

Balance revenue enhancing, economic efficiency, security, external trade policy for market access

Facilitation

Efficiency

•Exchange of goods and services

•Government

•Regional

•Security

•Production

•Private

•National

•trade

Colombus Ministerial

Declaration on Trade

Efficiency, UNCTAD 1994

UN/CEFACT

Trade Facilitation increase efficiency and support export transaction

Trade facilitation is to analyze, rationalize and inter-relate the fundamental requirements of the national/international trade transaction. This requires taking into account the essential, underlying reasons for these activities - including the purposes of a range of official controls and the functional background to change of ownership and responsibilities, the assessment and imposition of duties and taxes and various modes of payment for goods or related serviceselements of international processes, procedures and transactions and working for the elimination of constraints (J. Raven, 1994)

Export formalities raise the transaction cost

Definition

UN/CEFACT

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

– www.unece.org/trade– www.uncefact– www.unece.org/etrades/unedocs/– www.unemed.net

International Standards add value and are scalable

UN/CEFACT

Key steps on the road to paperless trade

The Win Win Situation

– Better Information, structured Information, Advance Information, Automation

Governments: – Risk assessment, Security, Compliance, market

access, Information Society Trade: – Transaction and SC risk, costs, services

•

UN/CEFACT

Win win is not enough to make it happen

– Clear understanding of benefits/costs– Enabling Framework – Strong leadership and commitments– International Cooperation and

Pathfinder Projects

Roadmap for Paperless trade in International Supply Chains

•

UN/CEFACT

Paperless Trade in International Supply Chain

Enhancing Efficiency and Security

– SC Information: Current trends and future orientation

– Benefits: Governments and Trade– Experience: Single Window

Implementations– What do we need to make it happen? Roadmap for paperless trade

•

UN/CEFACT

- APEC Symposium 04-07-21/23- UN/CEFACT Forum, 04-09-13/17, US WAS- Capacity Building Workshop on Trade Facilitation,2004, GVA, CH- 6th. UN/CEFACT Forum, March 2005, Malaysia- Capacity Building Workshop on Trade Facilitation,2005, Malaysia- 3rd. International Forum on Trade facilitation, 05-06-20/21, CH, VA- 11th. UN/CEFACT Plenary, 05-06-22/24, CH GVA

An internationally agreed meaningful roadmap, including existing and current developments, to achieve efficiency and security in the supply chain ....

On the road to..

UN/CEFACT

UN/CEFACTSIMPLE, TRANSPARENT AND EFFECTIVE PROCESSES

FOR GLOBAL BUSINESS.

www.uncefact.org