“Single Window” Concept:

a Key Tool

of Trade Facilitation and

Proper Management

Mario Apostolov, Regional Adviser for Trade of UN EEC mario.apostolov@unece.org

Kiev, 18 October 2011

PROBLEM: .One Foreign trade operation requires filling in of ≈ 40 documents with repeated information => The procedure and documents require simplification and decrease of their quantity

▼“Single Window” (SW) is a system enabling all the players of the foreign economic activity to provide the required information simultaneously, to one place, in a standard form and to one and the same agency.

Recommendation # 33 of UN EEC: http://www.unece.org/fileadmin/DAM/cefact/recommendations/rec33/rec33_trd352r.pdf

“Single Window” (Fig. 33) on the state levelTrade operators and control bodies may physically be present in various

places, but the information flows between them are connected

Electronic

Authority 3

SingleAuthority

Authority 1

Authority 2

Authority 4

3-a: 'Single Authority'

Paper

Trader(incl. Transport)

“Single Window” Advantages

1. For governmental bodies – an instrument of proper management

Efficient distribution of resources Better collectability of duties and taxes More assistance from business Security improvement (on the basis of risk analysis) Lesser corruption

2. For private business – efficiency Cost cutting due to reduction of the document preparation time Faster goods production Predictable and efficient explanation and application of rules More transparency

Organisational and Political Instrument

ОТ К

A heap of papers

30% of mistakes

Clearance ≈ 4-5 days

The processes of customs, export, import, etc. – all together; the documents are filled/filed at the same time, clearance ≈ 1 hour

АДМИНИСТРАЦИЯПОРТА

ТАМОЖНЯ

ОТПРАВИТЕЛЬ

СЛУЖБАЗДОРОВЬЯ

ПЕРЕВОЗЧИК

ПОГРУЗЧИКВЛАДЕЛЕЦ ПРИСТАНИ

ТАМОЖЕННыЙБРОКЕР

АГЕНТ ТРАНСП.КОМПАНИИ

ПОЛУЧАТЕЛЬ

FCPS

СЛУЖБАЗДОРОВЬЯ

АДМИНИСТРАЦИЯПОРТА

ТАМОЖНЯ

ОТПРАВИТЕЛЬ

ПЕРЕВОЗЧИК

ПОГРУЗЧИКВЛАДЕЛЕЦ ПРИСТАНИ

ТАМОЖЕННыЙ БРОКЕР

АГЕНТ ТРАНСП.КОМПАНИИ

ПОЛУЧАТЕЛЬ

100

On the level of port servicing system

Port Information Servicing System

Before it was on the whole state level:

• Form a favourable legislative base• Provide for the agencies’ information systems interaction

the basis of international standards• Provide for political will and framework of implementation

B 2

G

G 2 G

B 2 B

Trade Information Flows

VIKING Project TrainKLAIPEDA─ MINSK─ KIEV─ ODESSA (ILYICHEVSK)

ИМО-ФАЛ данные

Certificate

Customs data

Railway data

Road transportation data

Two lines of work:

~80% of work: negotiations

Political Line

Form the political will

Prepare the concept and the project feasibility study

Nominate the leading agency

(e.g. customs house)

Harmonise policy

Technical WorkData correlationDevelop the SW electrical system Correlate it with international standards

Interagency ManagementGroup

~20% technical work

Interagency Technical Group

General management direction for all agencies

1. Inquiry / consultation of business

2. Development of initial concept

3. Business processes analysis

4. Decision of SW extention

5. Determination of financing sources

6. Determination of the leading and executive organisations+ coordinator (both organisation and person)

7. Organisation of interagency: (а) project management group; (b) group of technical experts

8. Analysis of legal issues (Rec. # 35)

9. Feasibility study (О)

Master Plan (1)

10. Working plan on feasibility study basis

11. Standardisation and correlation of data

12. Data model13. Diagram of data flows (B2G, G2G, G2B)

14. Technical infrastructure, model and administration of the project

15. Plan of configuration control

16. Plan of risk management

17. Plan of transition to new system operation

18. Plan of training

19. Communication strategy

Master Plan (2)

Data model

Analysis and simplification of data

Simplification of documents

Analysis and facilitation of business

processes

Developing electronic

documents

Simplification of paper documents

Building the System Step by Step

Analysis of data in the document

Understanding and facilitating of business processes

Steps and Participants in Analysis of Business Processes (ABP)

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

Integrated chain of supplies

Facilitation of trade processes

Competitiveness as trade efficiency

Findings of Business Processes Analysis

Package of UN EEC Recommendations• “Single Window” Standards and Data Harmonisation:• Single Window – Rec. # 33http://www.unece.org/fileadmin/DAM/cefact/recommendations/rec33/rec33_trd352r.pdf

• Data Harmonisation – project Rec. # 34: http://www.unece.org/fileadmin/DAM/cefact/recommendations/rec34/

ECE_TRADE_C_CEFACT_2010_13R_r1.pdf

– UN Trade Data Elements Directory UNTDEDhttp://www.unece.org/fileadmin/DAM/trade/untdid/UNTDED2005.pdf

– WTO Data Model (subset UNTDED) – Core Components

• Single Window Legal Issues - Rec. # 35http://www.unece.org/fileadmin/DAM/cefact/recommendations/rec35/

Rec35_october2010_REV2_Final_Russian.pdf

7-8.04.2011, Moscow, Conference=> presentation and 3 studies: www.unece.org/trade/workshop/2011_Moscow/welcome.html

Rec. # 34: harmonization of data – what for?

• Eliminate excess requirements to data and documents• Organise “Single Window• Provide for possibility of electronic data exchange

Steps of harmonization:• Collection

– Name and classify the data elements required by agencies

• Determination– Determine the information transferred by the given element

• Analysis– Compare corresponding names and definitions

• Coordination– Agreement on using one name, one definition, one classification (code)

Why is coordination with international standards required?

There 8 cities with the name of Odessa in the world:

USA:

US ODF (FL) Canada:US ODG (MO) CA ODE (ON)US ODS (NY)US OSD (TX) Ukraine:US ZGY (DE) UA ODSUS ZOA (NE)

…try to send a container with the use of electronic exchange of information to Odessa, Canada, without UN/LOCODE

Collection, Definition, Analysis, Coordination

Collected at the present stage are:•Port of unlading•Port of unloading•US Port of unlading•US Port of unloading•Foreign Port of unlading•Foreign Port of unloading

Codes of Ports4-digit US own5 -digit Schedule ‘K’CA - ownMX - own

From WCO Data Model: Place of discharge,Code in (UNTDED): 3225

UN LOCODERecommendation # 16 UN EEC

Port ofUnloading

HARMONISATION STANDARDISATION

Collection, Definition, Analysis, Coordination

Collected at the present stage are:• Port of unlading•Port of unloading•US Port of unlading•US Port of unloading•Foreign Port of unlading•Foreign Port of unloading

Codes of Ports4-digit US own5 -digit Schedule ‘K’CA - ownMX - own

From WCO Data Model: Place of discharge,Code in (UNTDED): 3225

UN LOCODERecommendation # 16 UN EEC

Port ofUnloading

HARMONISATION STANDARDISATION

Drill in 9 documents

data harmonisation:

FAL (7) + CMR + UAD

Harmonisation of 3 documents data

7 forms, IMO FAL

CMR

UAD

142 elements

110 elements

47 elements

collectSet of 299

data elements

Required 142 + 110 + 47 = 299 data elements

Harmonisation of 3 documents data

7 forms, IMO FAL harmonised

CMR

Transit Declaration

64 elements

16 elements-2

47 elements-9

Data standardisation

and harmonisation

Standard set of data

in 9 documents

119 Data

elements

Standardisation and harmonisation may decrease the set of required elements from 299 down to 119

UNTDED semi-structured standard

UIDNameDefinition

Repr.MappingCoded

UNLK & TDED (mapping)

3246 Consignment.Delivery Location.Text

The place at which the cargo leaves the custody of the carrier under the terms and conditions of the transport contract

an..256UNLK: L 26, P 27-44

UIDNameDefinition

Repr.Mapping

3247 Consignment.Delivery Location.Identifier

To identify the place at which the cargo leaves the custody of the carrier under the terms and conditions of the transport contract

an..35UNLK: L 25, P 36-44

UN Locode

Rec. # 35: where in creating UO may legal problems arise

Are/is there any:1) Laws on electronic signatures; el. commerce; el.

government; data protection?2) Requirements of industry legislation to use special codes?3) Requirements to submit (paper) originals? 4) Equality between electronic and paper documents?

Analise laws and by-laws.Propose corrections and amendments to legislation.Interagency agreements of data exchange

THANK YOU!

MARIO APOSTOLOVRegional Adviser, UNEEC, Trade Department

Palais des Nations, Room 431CH-1211 Geneva 10, Switzerland

tel.: +41 22 9171134fax: +41 22 9170037

e-mail: mario.apostolov@unece.org

www.unece.org/trade & www.unece.org/cefact