unece unece integrated approach to trade facilitation tom butterly deputy chief global trade...
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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
UNECE
Agenda
1. UNECE Integrated Model of Trade Facilitation
2. UN/CEFACT Standards, Recommendations and Tools
3. International Trade Single Window
4. Capacity Building
UN Economic Commission for Europe (UNECE)
UN Centre for Trade Facilitation and Electronic Business UN Centre for Trade Facilitation and Electronic Business (UN/CEFACT)(UN/CEFACT)
UNECE
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
SupplySupply
Sources:plantsvendorsports
Manufacturers,Regionalwarehouses:stockingpoints
Fieldwarehouses:stockingpoints
Customers,demandcenters
MaterialProduction/purchasecosts
Manufacturing/Inventory &warehousingcosts
Transportationcosts Inventory &
warehousingcosts
Transportationcosts
Source: Simchi-Levi & al , 2000
Supply Chain
UNECE
INTERNATIONAL TRADE TRANSACTION PROCESS
CommercialProcedures
• Establish Contract
• Order Goods• Advise On
Delivery• Request Payment
TransportProcedures
• Establish Transport Contract
• Collect,Transport and Deliver Goods
• Provide Waybills, Goods Receipts Status reports
RegulatoryProcudures
• 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
INVOLVES
Prepare For
ExportExport Transport Import
SHIPBUY PAY
Prepare For
Import
UNECE
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
UNECE
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
Economic efficiency
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
STEP BY STEP PROCESSSTEP BY STEP PROCESS
Process Analysis
Process Simplification and Harmonization
Document Simplification and Standardization
Data Harmonization
Cross Border Data Exchange
Single WindowSingle Window
UMM
Business/Political Process Collaboration Between Trader and Govt
UN Layout Key, UNTDED, TF Toolkit and Forms Repository
UNTDED, CC,Locode, code lists
UNeDocs, WCO DM
Rec 33, 34,35
UNECE
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 Standardso Recommendation 1 - UN Layout Key for Trade
Documents (ISO 6422)o Recommendation 25 - UN/EDIFACT (ISO 9735)o Recommendation 33 - Single Window o UNeDocs - IDSo UNTDED (ISO 7372) – CCTS - WCO Customs
data modelo Recommendation 4 on TF Structures
UNECE
Trade Document Simplification and Standardisation
The United Nations Layout Key for Trade Documents
UNECE
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
Economic efficiency
Codes for Trade InformationRec 19:
Mode of TransportRec 16:
UN/Locode Rec 3: ISO Country Code
Rec 17:Payment Terms
Rec 9:Currency Code
Rec 20: Units of Measurement
Rec 28:Means of Transport
Commodity Code
Rec 21:Package Codes
UNECE
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
XMLXML
Exporter
Importer
PAPERPAPER
Importers Bank
EDIFACTEDIFACT
F ForwarderHTML/PDFHTML/PDF
•Electronic Signature
•Document Validation
•Electronic Post Mark
•Language switching
•National Requirements
•Time Stamping….
Digital Document Digital Document Web ServicesWeb Services
Office PCStandard user software, Internet Browser
Back-end Server
UNeDocsUNeDocsTrade & TransportTrade & Transport
DocumentsDocuments
Security, efficiency, speed,best business practice,
ICT integrationAdds
Provides specialised services Cost Recovery basis
Internet
UNeDocs
UNECE
Agenda
1. UNECE Integrated Model of Trade Facilitation
2. UN/CEFACT Standards, Recommendations and Tools
3. International Trade Single Window
4. Capacity Building
STEP BY STEP PROCESSSTEP BY STEP PROCESS
Process Analysis
Process Simplification and Harmonization
Document Simplification and Standardization
Data Harmonization
Cross Border Data Exchange
Single WindowSingle Window
UMM
Business/Political Process Collaboration Between Trader and Govt
UN Layout Key, UNTDED, TF Toolkit and Forms Repository
UNTDED, CC,Locode, code lists
UNeDocs, WCO DM
Rec 33, 34,35
UNECE
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 transit-related regulatory requirements.
If information is electronic, then individual data elements should only be submitted once.
Current situation for exchanging trade information with
government
Electronic
Agriculture
Paper
Trader
Customs
Health Dept
Transport
Current Situation for Government & Traders
The Single Window approach
Electronic
Agriculture
SingleWindow
TraderTransport
Customs
Health Dept
A 'Single Window' environment
Paper
A simple, A simple, one-stop one-stop solution solution offering offering official official control control with trade with trade facilitationfacilitation..
UNECE
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 trade related government information
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.
More case studies (Ghana, Australia …)
Each case is described in a standardized templateEach case is described in a standardized template
Diversity of SW models: adopting to specific national/regional conditions and requirements
Financing o By the State (Finland, Sweden, United States),o By the private sector (e.g. Guatemala, Germany) o private-public partnership (e.g. China, Malaysia, Mauritius, Senegal, Singapore)
The use of Single Windowo compulsory (Finland, Guatemala, Mauritius, Senegal)o voluntary (China, Germany, Malaysia, Sweden, United States)
Serviceso Free on charge (Finland, Sweden, United States) o Paid based on various payment schemes (Guatemala, Germany, China, Malaysia,
Mauritius, Senegal, Singapore)
Benefits and Costs of a Single Window
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
Implementation costs
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 ……
UNECE
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 identify trade facilitation needs and prioritieso assess and understand available tools, techniques
and standardso assess costs for implementationo review implementation and funding optionso 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
Recommendations/ Standards Development and Maintenance
Capacity Building(Helping governments elaborate a national TF strategy)
Technical Assistance(Donors decide what is to be done) - UNECE does not provide long term TA
UNECE - UN/CEFACT
UNECE in partnership with
other organizations
UNCTAD,WB,UNIDO, etc
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
WTO
UNECE
.. now we have to make trade facilitation happen!
UNECE
Follow-up
All UN/CEFACT Recommendations, codes, standards and publications are available for free on our website at:
o www.unece.org/cefact/o www.unece.org/tradeo www.unece.org/etrades/unedocs/