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. Kubler
jean.kubler@unece.org
UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE
UN/CEFACT Mission
Simple, Transparent and Effective Processes
for Global Business.
 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
UNECE regional level and cooperation with
other UN Regional Commissions and organizations
UN/CEFACT
Time and Cost implications
£
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
Exit clearance from community
Delivery to port
Unload, repack
Delivery to customs warehouse
Dehire GKN pallets
Documentation
Refund claim
Invoice and order administration
Load and despatch
Manufacture
Short Lead Components
Export Licence
Long Lead
items
Customs formalities (Inland)
Pre-shipment Inspection
Documentation
Request Health Certificates, Licences
Order receipt and administration
Artwork
Credit Arrangements
Enquiry Validation
12
13
15
16
19
21
Weeks UN/CEFACT
(approx)
Competitiveness of a nation
•
Logistics – Efficiency flow of Goods
•
Logistics Cost in Thailand is quite high.
Current Logistics Cost/GDP
Thailand
~ 25-30%
Japan
~ 11%
USA
~ 10%
EU
~ 7%
Cost reduction opportunity in Logistics
For example 5% of GDP ~ 7.5 Million USD
UN/CEFACT
Drivers of Supply Chain Performance
Competitive Strategy
Supply Chain Strategy
Efficiency
Responsiveness
Supply Chain Structure
Inventory
Transportation
Drivers
Facilities
Information
Source: Chopra & Meindl 2001
UN/CEFACT
Actor : Institutions
Ministry of Transport
Door-to-door
Logistics
Ministry of Trade
Ministry of Finances
Trade facilitation Customs reform
measures
& modernization
Private Sector
Reduce transaction costs
Monitor external trade flows
UN/CEFACT
Actor: Enterprises
UN/CEFACT
Source : Complex Networked Supply Chain [Harwick, 1999
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
23
10
4
35
13
B.C
inform
atis
é é
B.C
inform
atis
B.C Manuel
Signature et cachet
Signature et cachet
35
6
18
14
729
11
17
15
30
32
6
8
8
10
17
18
22
23
9
16
19
6
Confirmation
Confirmation
Commandes
Commandes
Fax
etet
courrier
Fax
courrier
5
24
Transitaire
Transitaire
2 2 3 5
Préparation Titre
d'importation
Lettre d'engagement si
produit inflamable
Assurance
17 17
16 16
28
28
8 23
Avis
d'em
barq.
Avis
d'em
barq.
Photocopie
Doc.
Photocopie
Doc.
Suivi
Suivicommande
commande
12
Offre
de de
prix
Offre
prix
fact.
Proforma
fact.
Proforma
5
22
Classement
Classement
desdes
documents
documents
3
5
3
Total Trade Transaction – Integrated supply-chain
6
9
Constitution
Constitutiondossier
dossier
Achat
Achat
5
8
5
4
Analys e des
Analys e des
d'offres
d'offres
Dem ande d'offre
Dem ande d'offre
de
deprix
prix
3
4
3
Constitution
Constitution
Dossier
Dossier
16
21
13
11
14
12
179
Docum
ents
Docum
ents
d'expédition
d'expédition
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
Livrais
on on
Livrais
22
Rés
ultat
Rés
ultatcontrôle
contrôleLabo
Labo
Comptabilité
Comptabilité
Contrôle
Qté
Signat.
Contrôle
Qté
Signat.
&&
Cachet
BLBL
Cachet
conform
e
conforme
3
5
58
11
29
12
30
13
31
14
32
15
33
11
Calcul
Calculde
dela
lafreinte
freinte
Photocopie
Photocopie
docum
document
ent
Classsem
ement
entet
et
Clas
Archivage
Archivage
35
58
30
12
31
13
Form ulaire
d' écart
167
12
7 21
21
Déchargem
entent
Déchargem
Déclaration
Déclaration
douanière
douanière
Prélèvem
ent
des
Prélèvem
ent
des
échantillons
échantillons
Règlem
entent
Règlem
douane
douane
11
27
28
Agence
Agence
Maritim
e e
Maritim
Lettre de non
conform ité / F
721 11
29
14
32
7
non
e
nonconform
conforme
Stockage
Stockage
Trans
porteur
Trans
porteur
Trade facilitation
15
33
Calcul
Calculprix
prixde
de
revient
revient
15
B. de Retour MP
Enlèvem
Enlèvem
entent
M.PM.P
12
B. d'entrée interne
15
Produit
olé
ProduitIsIs
olé
Enregistrem
trement
ent
Enregis
Inform
atis
Inform
atis
éé
15
Etiquettage nonconform ité
Vérificationde
delala
Vérification
aisieie
ssais
14
Produit
retourné
Produit
retourné
12
36
13
12 12
12
UN/CEFACT
Integration and conectivity
Internet
Kiosk
Portal
Framework
Private Sector
Adaptor
Citizens
Governments
Telephony
Face to Face
Wireless
Enterprise
Service
Delivery
Government
Systems
Single Window,
UN/CEFACT Rec 33
Rec 4
Forms
e-Mail
Letters
Fax
Brochures
Adaptor
Employees
C
H
A
N
N
E
L
S
Enterprise Services &
Applications
Enterprise
Intelligence
External
Systems
High Speed
Backbone
Server &
Storage
IP Integrated
Network
IP
Convergence
Service
Continuous
Business
Operation
SMC
Processes
Infrastructure
Security
Private
Sector
Systems
Enterprise
System Mgmt
UN/CEFACT
The International Trade Transaction Process
Intermediary
Seller
BUY
SHIP
PAY
Buyer
Authority
UN/CEFACT
The International Trade Transaction Process
BUY
Establish
Business
Agreement
Request
Quotation
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 for
Export
Export
Transport
Prepare for
Import
Import
INVOLVES
Regulatory Procedures
• Obtain Import/Export Licences etc
• Provide Customs Declarations
• Provide Cargo Declaration
• Apply Trade Security Procedures
• Clear Goods for Export/Import
Transport Procedures
• Establish Transport Contract
• Collect,Transport and Deliver Goods
• Provide Waybills, Goods Receipts
Status reports etc.
UN/CEFACT
Article V
UN/CEFACT
The International Trade Transaction Process
PAY
Prepare for
Payment
Request
Payment
Initiate
Payment
Execute
Payment
Advise
Payment
INVOLVES
Financial Procedures
• Provide Credit Rating
• Provide Insurance
• Provide Credit
• Execute Payment
• Issue Statements
UN/CEFACT
Codification and transfer of knowledge
TODAY
YESTERDAY
(A methodology)
(informal description)
W
H
Y
Validation
rules
Information
flow
Usage
Format
Usage
guidelines
specs
rules
Field
specs
Scope
Business
Requirements
Example
BUSINESS MODEL
W
H
A
T
H
O
W
OrderToBuyOrSell
Logical
Design
TradeCondition
InstructingParty
ExecutingParty
-TradeDate: Date
-PriceCondition: Real
-OrderedQty: Real
-SWIFTIdent: BIC
-SWIFTIdent: BIC
Trade
-Security: ISIN
-Action: {Buy/Sell}
TRANSACTIONS & DOCMENTSS
Technical
Implementation
INTERNET
UN/CEFACT
Combined Approach
UNeDocs
XML or UN/EDIFACT
<?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:1.0:0.70
UBL_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>
Electronic Edit Form
Paper Document
aligned to UN Layout Key
UN/CEFACT
Objectives must be clear
Facilitation
Efficiency
•Exchange of
goods and services
•Production
•Government
•National
•Regional
•trade
•Private
•Security
Balance revenue enhancing, economic efficiency, security, external trade policy for market
access
UN/CEFACT
Definition
Export formalities raise the transaction cost
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)
Trade Facilitation increase efficiency and support export transaction
UN/CEFACT
International Standards add value and are scalable
 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
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
On the road to..
An internationally agreed meaningful roadmap, including
existing and current developments, to achieve
efficiency and security in the supply chain ....
-
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
UN/CEFACT
UN/CEFACT
SIMPLE, TRANSPARENT AND EFFECTIVE PROCESSES
FOR GLOBAL BUSINESS.
www.uncefact.org
UN/CEFACT