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 - PowerPoint PPT Presentation

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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

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Title: 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


1
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
2
Agenda
  • UNECE Integrated Model of Trade Facilitation
  • UN/CEFACT Standards, Recommendations and Tools
  • International Trade Single Window
  • Capacity Building

3
UN Economic Commission for Europe (UNECE)
UN Centre for Trade Facilitation and Electronic
Business (UN/CEFACT)
4
UNECE Integrated Model of Trade Facilitation
UNECEs 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
5
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.
6
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

7
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8
INTERNATIONAL TRADE TRANSACTION PROCESS
SHIP
PAY
BUY
Prepare For Export
Prepare For Import
Export
Transport
Import
INVOLVES
  • Commercial
  • Procedures
  • Establish Contract
  • Order Goods
  • Advise On Delivery
  • Request Payment
  • Transport
  • Procedures
  • Establish Transport Contract
  • Collect,Transport and Deliver Goods
  • Provide Waybills, Goods Receipts Status reports
  • Regulatory
  • Procudures
  • 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

9
The UN/CEFACT Vision
Total Trade Transaction Integrated supply-chain
Competitiveness trade efficiency
Trade facilitation
10
Economic efficiency
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13
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

14
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

15
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

16
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

17
Economic Benefits
  • Estimates vary from 1-15 of total trade
    transaction costs
  • Even if only 1, OECD estimates total gains to
    world economy of US40, billion
  • APEC estimates gains of US46 billion from trade
    facilitation measures - adopted TF as key policy
    target.

18
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

19
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.

20
Agenda
  • UNECE Integrated Model of Trade Facilitation
  • Best Practice - UN/CEFACT Standards,
    Recommendations and Tools
  • International Trade Single Window
  • Capacity Building

21
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22
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

23
UN/CEFACT Standards and Recommendations
  • Over 30 Recommendation, many of which are ISO
    Standards
  • Recommendation 1 - UN Layout Key for Trade
    Documents (ISO 6422)
  • Recommendation 25 - UN/EDIFACT (ISO 9735)
  • Recommendation 33 - Single Window
  • UNeDocs - IDS
  • UNTDED (ISO 7372) CCTS - WCO Customs data model
  • Recommendation 4 on TF Structures

24
Trade Document Simplification and Standardisation
The United Nations Layout Key for Trade
Documents
25
Economic efficiency
26
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27
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28
Codes for Trade Information
Rec 19 Mode of Transport
Rec 16 UN/Locode
Rec 17 Payment Terms
Rec 3 ISO Country Code
Rec 9 Currency Code
Commodity Code
Rec 28 Means of Transport
Rec 21 Package Codes
Rec 20 Units of Measurement
29
United Nations Standards for Trade Documents SAD
30
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/

31
  • Standardisation and harmonisation of trade
    documents is a prerequisite for paperless trade

32
Office PC
Back-end Server
Provides specialised services Cost Recovery basis
Standard user software, Internet Browser
XML
UNeDocs
Exporter
Digital Document Web Services
PAPER
  • Electronic Signature
  • Document Validation
  • Electronic Post Mark
  • Language switching
  • National Requirements
  • Time Stamping.

UNeDocs Trade Transport Documents
Importer
Internet
EDIFACT
Importers Bank
HTML/PDF
F Forwarder
Security, efficiency, speed, best business
practice, ICT integration
Adds
33
Agenda
  • UNECE Integrated Model of Trade Facilitation
  • UN/CEFACT Standards, Recommendations and Tools
  • International Trade Single Window
  • Capacity Building

34
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35
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.

36
Current situation for exchanging trade
information with government

37
The Single Window approach
  • A simple, one-stop solution offering official
    control with trade
  • facilitation.

38
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

39
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
40
UN/CEFACT Single Window Case Study Repository
  • Malaysia
  • Senegal
  • Singapore
  • Sweden
  • United States
  • Korea.
  • Finland
  • Germany
  • Guatemala
  • Hong Kong SAR (China)
  • Mauritius
  • Japan

Each case is described in a standardized template
More case studies (Ghana, Australia )
41
Diversity of SW models adopting to specific
national/regional conditions and requirements
  • Financing
  • By the State (Finland, Sweden, United States),
  • By the private sector (e.g. Guatemala, Germany)
  • private-public partnership (e.g. China, Malaysia,
    Mauritius, Senegal, Singapore)
  • The use of Single Window
  • compulsory (Finland, Guatemala, Mauritius,
    Senegal)
  • voluntary (China, Germany, Malaysia, Sweden,
    United States)
  • Services
  • Free on charge (Finland, Sweden, United States)
  • Paid based on various payment schemes (Guatemala,
    Germany, China, Malaysia, Mauritius, Senegal,
    Singapore)

42
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
43
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)

44
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

45
Agenda
  • UNECE Integrated Model of Trade Facilitation
  • UN/CEFACT Standards, Recommendations and Tools
  • International Trade Single Window
  • Capacity Building

46
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

47
UN/CEFACT Comprehensive Guide to Trade
Facilitation Implementation
  • The Guide will help countries to
  • identify trade facilitation needs and priorities
  • assess and understand available tools, techniques
    and standards
  • assess costs for implementation
  • review implementation and funding options
  • develop an effective national and/or regional
    trade facilitation implementation strategy.

48
The Guide
  • Guide
  • Training material
  • Website
  • CD
  • 6 Regional Training Workshops
  • Target Date for Completion of Guide end 2006

49
Relationship between the work of UNECE
(UN/CEFACT) and other international organisations
in Trade Facilitation
50
UNECE - UN/CEFACT
UNECE in partnership with other organizations
UNCTAD,WB,UNIDO, etc
   

Technical Assistance (Donors decide what is to be
done) - UNECE does not provide long term TA
Recommendations/ Standards Development and
Maintenance
Capacity Building (Helping governments elaborate
a national TF strategy)

WTO
 
UNECEs 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
51
.. now we have to make trade facilitation happen!
52
THANK YOU ! tom.butterly_at_unece.org
53
Follow-up
  • All UN/CEFACT Recommendations, codes, standards
    and publications are available for free on our
    website at
  • www.unece.org/cefact/
  • www.unece.org/trade
  • www.unece.org/etrades/unedocs/
  • tom.butterly_at_unece.org
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