unnext workshops on trade facilitation - unescap buyshippaymodel.pdf · unnext workshops on trade...

UNNExT Workshops on Trade Facilitation

Almaty, Kazakhstan 4-6 May 2015

UNNExT Workshop on Paperless Trade Facilitation for Small and Medium-Sized Entreprises

Buy-Ship-Pay Model

2

3

Freight ForwarderFreight ForwarderImporterImporter

Licensing AuthoritiesLicensing AuthoritiesExporter

InspectionInspectionAgenciesAgencies

CustomsCustoms

ConsulateConsulate

AdvisingAdvising BankBank

HealthHealth

AuthorityAuthority

Issuing BankIssuing Bank

CarrierCarrier

Border crossingBorder crossing

AgentAgent

Port OperatorPort Operator

International Trade Is ComplexInternational Trade Is Complex

Enquiry ValidationCredit Arrangements

Refund claim

Long Leaditems

Export LicenceShort Lead Components

Delivery to port

DocumentationDehire pallets

Delivery to customers warehouse

Unload and store

Retail sale

Payment by customer

Payment oftransportand FOBcharges

$

Added valueand cost

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

4

5

Applying UN/CEFACT Tools and StandardsApplying UN/CEFACT Tools and Standards

StepStep--byby--Step approachStep approach

Process Analysis and Process Analysis and SimplificationSimplification

National Data HarmonizationNational Data Harmonization

Cross Border Data ExchangeCross Border Data Exchange

Single WindowSingle Window

Business/Political Process Collaboration Between Trader and Business/Political Process Collaboration Between Trader and Government (UN/CEFACT Rec. 4, Rec. 18), International Supply Government (UN/CEFACT Rec. 4, Rec. 18), International Supply Chain Reference model, Unified Modeling Methodology, Global Chain Reference model, Unified Modeling Methodology, Global Facilitation Partnership for Trade and Transport (GFPTT), Audit Facilitation Partnership for Trade and Transport (GFPTT), Audit MethodologyMethodology

UNTDED, Core Component Library, UNTDED, Core Component Library, UN LOCODE and code lists, UN LOCODE and code lists, UNeDocs, Rec 34UNeDocs, Rec 34

UNeDocs + WCO DM = UNeDocs + WCO DM = CBRDMCBRDM

Document Simplification and Document Simplification and StandardizationStandardization

UN Layout Key, Master Document, UNTDED, TF UN Layout Key, Master Document, UNTDED, TF Toolkit and Forms RepositoryToolkit and Forms Repository

Work of UN/CEFACT – Trade facilitation Standards and Recommendations

• > 30 recommendations, many of which are ISO Standards and are covered in WTO TF Negotiations– Recommendation 1 - UN Layout Key for Trade Documents

(ISO 6422)

– Recommendation 25 - UN/EDIFACT (ISO 9735)

– UNTDED (ISO 7372) – CCTS - WCO Customs data model

– Recommendation 33 - Single Window

– UNeDocs - IDS

– Recommendation 4 on TF Structures

– Recommendation 18 – strategies and approaches

6

Roadmap for the CBRDM

UNeDocs DM 2.0 WCO DM 2.x

Gap Analysis

CBRDM Draftv.0x

Capacity Buildingfor WCO DM Group

BRS

RSM

TBG Submission

TBG / ICG for Standardization

WCO Audit of CBRDM

Inclusion of CBRDM into

scope of WCO DM 4.0

UNCEFACT Recommendation

CBRDM

Customs RequirementsTrade Requirements Transport Requirements

7

8

Electronic

Agriculture

Paper

Trader

Customs

Health Dept

Transport

Current Situation for Government & Traders

Electronic

Agriculture

SingleWindow

TraderTransport

Customs

Health Dept

A 'Single Window' environment

Paper

OneOne--stop solution offering official control with trade facilitationstop solution offering official control with trade facilitation

FROMFROM TOTO

Single Window ApproachSingle Window Approach

Agenda

• Overview of BSP model

• Procedural constraints faced by SMEs in Asia for BSP

• Buy component

• Breakout, group discussion and presentation

• Ship component

• Breakout, group discussion and presentation

• Pay component

9

13APEC etrade hub and global trade services (GTS)

14

UN CEFACT UN CEFACT

BUYBUY SHIPSHIP PAYPAY

INTERNATIONAL SUPPLY CHAIN INTERNATIONAL SUPPLY CHAIN

SELLERSELLER

GOODSGOODS

BUYERBUYER

PAYMENTPAYMENT

TRADE FACILITATIONTRADE FACILITATION

Simple, transparent, effective process for global business

BSP model looks at

• BUY - Commercial Procedures– eProcurement

• eTendering

• eCatalogues

• eDocuments

• SHIP - Transport & Regulatory Procedures– UNeDocs

– Transport messages

– Cross Border Reference Data Model

– Single Window projects

• Pay - Payment Procedures– Cross Industry Invoice

– International payments

– Financial services

15

17

UN CEFACT SUPPLY CHAIN REFERENCE MODEL

CommercialCommercialProceduresProcedures

• Establish Sales Contract

• Order Goods• Advise On Delivery• Request Payment

TransportTransportProceduresProcedures

• Establish Transport Contract

• Collect,Transport and Deliver Goods

• Provide Waybills, Goods Receipts Status reports

RegulatoryRegulatoryProcuduresProcudures

• Obtain Import/Export Licences

• Provide Customs Declarations

• Provide Cargo Declaration

• Apply Trade Security Procedures

• Clear Goods for Export/Import

Financial Financial ProceduresProcedures

• Provide Credit Rating

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

INVOLVESINVOLVES

Prepare ForPrepare For

ExportExportExportExport TransportTransport ImportImport

SHIPSHIPBUYBUY PAYPAY

Prepare ForPrepare For

ImportImport

UN CEFACT UN CEFACT

CommercialProcedures

• Establish Contract• Order Goods• Advise On Delivery• Request Payment• Packing• Inspection• Certification• Accreditation• Warehousing

CommercialProcedures

• Establish Contract• Order Goods• Advise On Delivery• Request Payment• Packing• Inspection• Certification• Accreditation• Warehousing

TransportProcedures


• Collect, Transport and Deliver Goods

• Provide Waybills, Goods Receipts Status reports etc.

TransportProcedures


• Collect, Transport and Deliver Goods

• Provide Waybills, Goods Receipts Status reports etc.

Regulatory Procedures

• Obtain Import/Export Licences etc





Regulatory Procedures

• Obtain Import/Export Licences etc





Financial Procedures


• Provide Insurance• Provide Finance• Execute Payment• Issue Statements

Financial Procedures


• Provide Insurance• Provide Finance• Execute Payment• Issue Statements

INVOLVESINVOLVES

Prepare for Export

Export Transport Import

SHIPBUY PAY

Prepare for Import

International Trade transaction processInternational Trade transaction process

Source: UN/CEFACT International Supply Chain Reference Model19

UN/CEFACT Architecture

20

Hour Glass effectUMM CCTS

Framework forBuilding Common

Business Processes

UN/CEFACT’s Registry & Repository

„Executeable“ Code

XML Schemata

Reference Models

Re-Useable Harmonised Process & Data Definition

Message Assembly

TGB’n Models

.XLSCCL

Core Components Submission Guidelines

BSP CCBP

Current-

Future-

Achievements

TGBn BRS/RSM

TBG14 Process Harmonization

TBG17 CC Harmonization

XML Schemata

22

TBG Engagement

23

Processes (Tools)

+ C

on

text

Spe

cific Re

fer

an

d R

e-u

se

24

harmonization AS-IS • UMM model build on reverse engineered BRS

• Harmonization requires UMM models

25

… and TO-BE harmonization

• BRS produced from UMM model

UMM Model

Derived BRS

Harmonized Process Model

TBG Input

TO – BEA = semiautomatic

A

26

27

XML Naming and Design Rules, V3

Specification Purpose

– Consistent transformation of Core Components

– Optimized use of XML

Project Purpose

– Align withCCTS 3.0

– Drive Convergence of SDO’s to UN/CEFACT methodology

28

Data Type Library

• Data Types define the value domain for Core Components

• Specification Purpose

– Create and Maintain UN/CEFACT Data Types to support CCTS and syntax solutions

– Provide input to CCTS Project

– Develop guidance to facilitate use

• Project Purpose

– Update existing catalogue

– Develop responsive maintenance procedures

Data Type (DT)

+ Data Type Term: Data Type Term

+ Data Type Qualifier: String [0..*]

+ Usage Rule: String [0..*]

DT Supplementary Component

+ Representation Term: Representation Term

+ Property Term: String

+ Primitive Type: Primitive Type

+ Cardinality: Cardinality

+ Default Value: String [0..1]


DT Content Component

+ Property Term: String = Content {readOnly}

+ Primitive Type: Primitive Type


Component Restriction

+ Facet Type: String

+ Facet Value: String

+ Facet Language: String [0..1]

Common Information

+ Dictionary Entry Name (DEN): String

+ Definition: String

+ Business Term: String [0..*]

Localized Information

+ LanguageCode: LanguageCode

+ Other Language DEN: String

+ Other Language Definition: String

+ Other Language Business Term: String [0..*]

Registry Class

+ Unique Identifier: String

+ Version Identifier: String

1

1

1

1

0..*

1

1

1

0..*

{only zero or one

component

restrictions for

each facet type}

10..*

{only zero or one

component restrictions

for each facet type}

1

1..*

1

1

1

29

§ UNECE Rec. No. 3 - ISO Country Code for Representation of Names of Countries

§ UNECE Rec. No. 5 - Abbreviations of INCOTERMS

§ UNECE Rec. No. 7 - Numerical Representation of Dates, Time, and Periods of Time

§ UNECE Rec. No. 8 - Unique Identification Code Methodology - UNIC

§ UNECE Rec. No. 9 - Alphabetical Code for the Representation of Currencies

§ UNECE Rec. No. 10 - Codes for Ship's Names

§ UNECE Rec. No. 15 - Simpler Shipping Marks

§ UNECE Rec. No. 16 - Trade and Transport Locations (UN/LOCODE)

§ UNECE Rec. No. 17 - Payterms

§ UNECE Rec. No. 19 - Codes for Modes of Transport

§ UNECE Rec. No. 20 - Codes for units of measure used in international trade

§ UNECE Rec. No. 21 - Codes for Types of Cargo, Packages and Packaging Materials

§ UNECE Rec. No. 23 - Freight Cost Code

§ UNECE Rec. No. 24 - Trade and Transport Status Codes

§ UNECE Rec. No. 28 - Codes for Types of Means of Transport

UNECERecommendations

30

ExampleExample

Unique ID Dictionary Entry NameCC Type Definition

UN00000010 Address. Details ACC The information relevant to a specific address.

UN00000014 Address. Postcode. Code BCC The postal code of the address.

UN00000033 Address. Street Name. Text BCC A name of a street or thoroughfare.

UN00000013 Address. City Name. Text BCC The name of the city, town or village of this address.

UN00000203 Address. Country. Identifier BCC A unique identifier of a country, e.g. as specified in ISO 3166 and UNECE Rec 3.

UN00000204 Address. Type. Code BCC The type of this address such as business address or home address.

use OxfordEnglish Dictionary

Once approved, assign a globally unique ID

31

Purpose

Core Component Harmonization

Goal: to provide a consistent and harmonized set of core components across business domains and sectors, contributing to a concise and well-defined glossary of business terms, business data semantic definitions, and structuring of data exchanges.

Challenges& Constraints in BSPBSP Constraints SME

Buy

Supply chain Not universal Do not see supply chain

eProcurement Need a good data reference model to track

No resources to overcome tedium of data entry

Ship

International Trade procedures

Language diversity No visibility or capability / expertise

Customs No harmonised interpretation

Cross border Only small percentage are into cross border

Transport Provider who can provide door-to-door, authorised

Cannot pay for services

Pay

International payment Lack technical knowledge

Financial services

32

Group Discussion – Buy Component

33