United Nations Network of Experts for Paperless Trade and

Transport in Asia and the Pacific

Data Harmonization

for Single Window Environment

Module 4 Part 1

Introduction into Standards and Concepts

for Electronic Trade Documents

Introduction into UNLK, UNTDED and Core Component

Subregional Capacity Building Workshop on Data Harmonization for Trade Facilitation

6 – 7 December 2018Kemerovo, Russian Federation

2

Objectives of Module 4

To provide an overview of the key standards for

trade documents in paper and electronic format.

To introduce important standards for simplification

of paper based trade documents and the data

model used for design of electronic trade

documents.

3

Topics

United Nations Layout Key (UNLK)

United Nations Trade Data Element Directory

(UNTDED)

Data Models for Electronic Trade documents

◼ CCTS (Core Components Technical Specification)

World Customs Organization (WCO) Data Model

4

Why Global Standards?

Since modern global trade…

takes place in a multi-lingual environment

touches different legislation of different countries/

regions

involves various and independent parties

uses complex & redundant trade documents (both in

paper & electronic formats) for information exchange

Simplification and Standardization of Trade Documents

automation of trade documents and procedures

5

Key Standards for Trade Documents

United Nations Layout Key (UNLK)

United Nations Trade Data Element Directory

(UNTDED, ISO 7372)

Data Model for Electronic Trade Documents

World Custom Organisation (WCO) Data Model

6

UN/CEFACT: export process average: 27 parties involved,

40+ documents, 300+ copies to manage export processes

UNCTAD: 5 Bio Trade and Transport documents are issued

annually

Total US international trade documentation annually

consumes more than one billion man hours, equal to 600

thousand work years

Australia: 22 Agencies collect the name of the exporter on 118

different forms

..described in 61 different ways

Large document volume in global trade

7

Many Trade Documents

Enquiry

Despatch advice

Payment order

Forwarding instructions

Goods receipt

Rail consignment note

TIR carnet

UN/EDIFACT DE 1001 has 700 codes for trade

documents

8

History: A global standard for trade documents…

Until the 1960’s, no standardisation in terms of design, content or layout to trade documents. There was a clear need for a global solution

1960s: UNECE examines the possibility of reducing, simplifying and standardizing external trade documents

1963: International model form adopted as a Layout Key

1960’s and 70s: UNECE Layout Key introduced by many international organisations and countries worldwide through the work of UNECE, UNCTAD and other organisations

1978: UNLK Recommendation had gained worldwide acceptance and was re-named as the United Nations Layout Key for Trade Documents

9

Why UNLK?

The lead standard & key instrument for simplification

of trade documents

The UN Layout Key comprises:

1. Standard Layout Key to render information

2. Rules for modification of the standard Layout Key

3. Standards for coded data entries

4. Standard for the semantic of datat (UNTDED)

5. A concept to create aligned sets of trade documents

UNLK for editing.pdf

11

Principles of UNLK

Essential principles providing a basis for development of electronic document

specification are:

Box Design Principle

◼ To group data into boxes, as a means of rationalizing trade forms

◼ Related information always appears in the same place/in a form.

◼ Each box has a box heading (indicating nature of data) and data field.

Reusability of data

◼ Master Form – equivalent concept to a data model, containing

identical information with the same data structure and semantic

presentation required in different trade documents.

◼ “one-run system” –to produce the whole set of documents for

trade transaction in a single instance by filling all relevant data in

a Master Form .

12

Example of Box Design Principle

from FIATA Forwarding Instructions FFI

Box Heading/

Field Heading

Box

Data Field

Consignor (Exporter)

Consignee

Notify or delivery address

Transport details

Shipping marks; Container No.

Number & kind of packages; Goods

description

Date, Reference No, etc.

Buyer (if other than consignee)or other address

Country whence consigned

Country of origin

Country of destination

Place and date of issue; Authentication

Commodity No.

Gross weight

Cube

Net quantity

Value

More particular needs in individual applications

Terms of delivery and payment

9

Layout Key for

Trade Documents

14

Layout Key for Trade Documents

UNLK: four simple rules for alignment of a trade document

▪ Data elements specified in the LK should be placed in

the corresponding place

▪ Data elements not specified in the LK are placed in the

free disposal area

▪ Data elements not required can be omitted. The gained

space is for free disposal.

▪ Boxes can be further sub-divided to further specify

information.

15

16

Box Completion GuidesExample: The Sea Waybill form with boxes numbered

Box Completion Guidelines for Box 01 (Consignor) and Box 02a (Consignor’s reference)

17

Importance of codes for trade data exchange

Codes:

Are Language independent

Avoid costly errors and misunderstandings

Unique ➔ step towards automation

Maintenance is outsourced

Worldwide usage: by WCO, IATA, FIATA, UPU,

UN/EDIFACT, UNLK etc.

Use of coded data entries

18

Did you say Paris?

There are five locations in the world called “Paris”

US IL PRP Paris

US KY PZT Paris

US TN PHT Paris

US TX PRX Paris

CA ON PAO Paris

FR 75 PAR Paris

The Paris in Canada is identified by CAPAO, the Paris in

France by FRPAR

…just tray to send a container to Paris in Canada

without a LOCODE

19

UN/CEFACT has recommendations on the use of

Codes in trade documents

Country, Currency, Location, Units of Measurement,

Representation of Date and Time, Trade and

Transport Status, Means of Transport, Transport

Mode,, ..

WCO recommend the use of these codes in the

Customs domain

Use of coded data entries

20

Rec:19

Mode of TransportRec:16

UN/LocodeISO 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

21

There is a need to provide commonly accepted

definitions for data elements in a Form

UNLK recommends the use of UNTDED to define

semantic of information in trade documents.

The meaning of data..

22

United Nations Trade Data Element Directory

(UNTDED, ISO 7372)

An internationally accepted standard repository for the

semantic of trade data elements used in international trade

A method to describe information requirements from

business perspective (a non-technical description of trade

information).

The definition is syntax-neutral and provides the basis for

a later automation of document for paperless trade.

Defining the data content in terms of the UNTDED makes

different trade documents become directly comparable,

which helps identify duplication and reduce the number of

documents to the strict minimum.

23

How does UNTDED work? Each UNTDED element consists of a

data element tag in the form of a

four-digit number, a name (informative)

and a description (definition).

The data element may have a reference

to a UN-recommended code list.

For document alignment, it is

recommended to use the tag, the

dictionary’s old name or the business

term and the description of the ISO

7372:2005 release when defining the

Box Completion Guideline.

The format of the UNTDED Revision

2005 (ISO 7372:2005) contains

additional fields such as dictionary entry

name for core component libraries so as

to integrate the requirements of

electronic business and paperless trade.

Grouping used in the Trade Data Element Directory (TDED)

Group 1: (0001-1699) Documentation, references

Group 2: (2000-2699) Dates, times, periods of time

Group 3: (3000-3699) Parties, addresses, places, countries

Group 4: (4000-4699) Clauses, conditions, terms, instructions

Group 5: (5000-5699) Amounts, charges, percentages

Group 6: (6000-6699) Measures, identifiers, quantities (other

than monetary)

Group 7: (7000-7699) Goods and articles: descriptions and

identifiers

Group 8: (8000-8699) Transport modes, means, and equipments

Group 9: (9000-9799) Other data elements (Customs, etc.)

TDED 3404 Person name Family name and given names of an individual.

24

Trade Data Element Directory (TDED)

25

Box Completion GuidesExample: The Sea Waybill form with boxes numbered

Box Completion Guidelines for Box 01 (Consignor) and Box 02a (Consignor’s reference)

26

Definition of TDED element 1140 and 3336 in UNTDED, ISO 7372:2005

27

How does UNLK work?

Commercial Transaction

Document Family(Quotation, Order, Invoice, etc.)

Payment Document Family(Letter of Credit, Documentary

Credit, etc.)

Transport & Related

Services Document Family

(Bill of Lading, Cargo Manifest,

Insurance Contract, etc.)

Official Controls Document

Family(Goods Declarations, Export/Import

Licenses, Certificate of Origin, etc.)

UNLK Document Families Process UNLK Document Family

Buy Commercial Transaction

Ship

Transport and

Related Services

Forwarding and Cargo

Handling

Transport

Insurance

Official Controls

Pay Payment

Document Categorization and Use

28

1. Commercial procedures

2. Transport procedures

3. Regulatory procedures

4. Financial proceduresEnquiry, Offer/Quotation, Order,

Acknowledgement of Order,

Despatch Advice…

33

The common definition of data in an aligned form using UNTDED

allows the exchange of data between documents

(70% of all information in trade documents is shared)

34

Conclusion

Simplifying and standardizing trade documents based on international standards allow for an automation of trade documents and procedures.

Forms for international trade documents shall be aligned to the UNLK - the lead standard for simplification of paper based trade documents.

With its clear and unambiguous meaning of information, UNTDED definitions shall be used for describing the semantic of information in trade documents.

Data models based on UN/CEFACT CCTS maximize the reuse of business information to enhance information interoperability and data interchange across organizational borders and industries

WCO Data Model is developed as one single data interchange standard to enable one single data submission and data reuse in many different business processes. It is used for the design of electronic trade documents.