UN/CEFACT UNECEUNECE Pioneering Paperless Trade: The way covered and the way ahead A Community Model...
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Transcript of UN/CEFACT UNECEUNECE Pioneering Paperless Trade: The way covered and the way ahead A Community Model...
UN/CEFACT
UNECEUNECEUNECEUNECE
Pioneering Paperless Trade:The way covered and the way ahead
A Community Model for Paperless Trade Development
Experience of theDigital Trade and Transportation Network
Peter StokesCEO, Digital Trade and
Transportation Network Ltd
Less and Better Data to build Trust and Efficiency
UN/CEFACT
UNECEUNECEUNECEUNECE AgendaAgenda Tradelink Highlights and Single Window for
Hong Kong SAR Government Trade Documents Evolution to Community Single Window Digital Trade and Transportation Network
(DTTN) Community Model Functions and Features of the DTTN Costs and Benefits
Model for Worldwide Paperless Trade Interconnections
Inhibitors and Success Factors for the Development of Paperless Trade
UN/CEFACT
UNECEUNECEUNECEUNECE
Single Window for Single Window for Hong Kong SAR Government Hong Kong SAR Government
Trade Documents (B to G) Trade Documents (B to G) and Tradelink Highlightsand Tradelink Highlights
UN/CEFACT
UNECEUNECEUNECEUNECE
Tradelink’s Shareholders
The HKSAR Government42.49%
Banks 10.33%
Terminal Operators15.29%
Industry Associations7.78%
China 5.30%
Airline5.30%
Textile Industry 4.73%
Telecommunication8.78%
UN/CEFACT
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Original 7 year franchise (1997 - 2003) for
Government trade documents, with mandatory
electronic submission extended as a license for
2004 - 2008
– Over 53,000 company subscribers
– 17 million transactions/year
– All documents digitally signed & encrypted
for open network transmission, using
Recognized Digi-Sign Certification Service’s
certificates
HKSAR Government Trade Document Single HKSAR Government Trade Document Single Window via Tradelink (1/2)Window via Tradelink (1/2)
UN/CEFACT
UNECEUNECEUNECEUNECE
Network of 27 Service Centers
Paper to electronic conversion for organizations
who have not “computerized”
Key factor in mandatory electronic submission
program
HKSAR Government Trade Document Single HKSAR Government Trade Document Single Window via Tradelink (2/2)Window via Tradelink (2/2)
UN/CEFACT
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Tradelink’s Electronic ServicesTrade Related Government Services as the Basic Building Block
All Traders Import & Export Declaration Certificate of Origin Dutiable Commodities Permit Shipping Order Service Trader Documentation Service for
Regional/Global Trade China Processing Trade/Cross Border
Documentation Service
Textile Traders & Manufacturers
Production Notification Textile Trader Registration Scheme
(TTRS) Notifications Certificate of Origin
Forwarders & Carriers Carrier Notification
Shipping Order / US Customs AMS
Manifest
Textile Trader Registration Scheme Notifications
UN/CEFACT
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Pan Asian e-Commerce Alliance (1)Established in July 2000, aims to facilitate secure cross
border paperless electronic services for efficient global trade
Members Number of Customers
CIECC (China) 10,000
KTNet (Korea) 30,000
CrimsonLogic (Singapore) 25,000
Trade-Van (Taiwan) 25,000
Tradelink (Hong Kong) 53,000
DagangNet (Malaysia) 2,000
TEDMEV (Macau) 2,000
CAT (Thailand) 2,000
TEDI Club (Japan) 80
149,080
UN/CEFACT
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Pan Asian e-Commerce Alliance (2)
Trust in cross border transactions through:• Legal framework for electronic Cross Border trade
transactions
• Mutual Recognition of Digital Certificates amongst members of the Alliance, Six Certification Authorities recognized (HK, Taiwan, Korea, Singapore, Japan, China)
Secure Cross Border Trade Transaction Service• Commercial invoice, ASN/Packing List, Scan / Pack• Import Pre-Declarations based on Export data
UN/CEFACT
UNECEUNECEUNECEUNECE
Trade, ManufacturingLogistics,Finance,Commercial
Evolution from Government Single Window to Community Single Window
Start Electronic Submission of Government Trade Documents
- Trade Declaration
- Export License
Mandate Electronic Submission ofTrade Declarations
Initiate Cross Border Paperless Trade Projects
- Pan Asian E-commerce Alliance- Bolero- TradeCard
Community Single Window forPaperless Trade with WorldwideInterconnection
- Certificate of Origin
- Production Notification
US Customs AMS ManifestTextile TradeNotifications
- Shipping Order- Commercial Invoice- Packing List
GovernmentDocuments
19971997 200620062003200320002000
UN/CEFACT
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The Digital Trade and Transportation
Network (DTTN)
A Community Model
UN/CEFACT
UNECEUNECEUNECEUNECE
Guiding Principles for the DTTNGuiding Principles for the DTTNPublic/private sector Logistics Development Council initiative to improve HK’s
competitiveness and to make HK the regional e-Logistics hub of choice
Neutrality
Non-exclusivity
Transparent, accountable & responsible
operations
Minimum intervention to any participant’s
business processes & relationships
Facilitate & respect market forces
Easy to access & use
UN/CEFACT
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Governance FrameworkGovernance Framework
Digital Trade and Transportation Network Limited ownership principle 51% by Tradelink 21% by Government 28% by industry associations
Operating Agreement to assure a neutral and community focused DTTN operating framework
Industry Based DTTN Standards Advisory Group – advise, review and endorse document structure and interconnection standards
UN/CEFACT
UNECEUNECEUNECEUNECE
Three Layer DTTN ModelThree Layer DTTN Model Value-added services such as
financial products, multi-modal integration, distribution management
Value-added
Services
Core Messaging
Infrastructure(DTTN Ltd)
Open, neutral, secure, reliable and shared electronic infrastructure messaging
Local and international standards for security, trade documents, codes, protocols
Layer 3
Layer 2
Layer 1
Standards and Protocols
UN/CEFACT
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Community Role of the DTTNCommunity Role of the DTTN
SellersSellers Carriers / Portals(Inttra, GTNexus)
Carriers / Portals(Inttra, GTNexus)BuyersBuyers Freight
Forwarders
FreightForwarders
DocumentExchange &
Transformation
CommunicationsGateway
CustomerManagement
SecurityServices
Support & Operations
Management
WebServices
DTTN Core Messaging Infrastructure
Banks & Financial
Institutions
Banks & Financial
Institutions
TerminalsTerminalsInspection Agencies
Inspection Agencies
Insurance Institutions
Insurance Institutions
Government& Agencies
Government& Agencies
Value AddingService
Providers
e.g. Tradelink
Regional/G lobal Service
Providers
UN/CEFACT
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Functions and Features Functions and Features of theof the
Digital Trade and Digital Trade and
Transportation Network Transportation Network (DTTN)(DTTN)
UN/CEFACT
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Reliable, secure transformation and delivery of legally recognized electronic documents
Reliable, secure delivery – local, China, globally Any-to-any protocol & document transformation
Excel; XML; EDIFACT, ANSI X12; Flat file, Cargo-IMP; e-Mail, FTP/S; HTTP/S; AS1, AS2, ebMS2, Multiple Character Sets
Documents stored on-line for 2 years, offline for 7 years Low Cost Single e-Channel to all trading partners
use existing in-house system with minimal changes
Community interconnections e.g.Tradelink’s 53,000 traders & forwarders; 30+ major ocean carriers via INTTRA/
GTNEXUS
DTTN Services – Core DTTN Services – Core InfrastructureInfrastructure
UN/CEFACT
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DTTN Document Exchange Services (1/2)DTTN Document Exchange Services (1/2)
Supports ten Supports ten major trade & logistics processesmajor trade & logistics processes for for import / exportimport / export between HK-PRD (truck, rail, river) & overseas via between HK-PRD (truck, rail, river) & overseas via Ocean / air;Ocean / air;
Purchase Process (Purchase / Sales Order; Order Confirmation)
Get products ready for delivery (Packing List / ASN; Commercial Invoice; Inspection Certificate; Insurance)
Local and overseas transportation (Booking; Shipping order; arrival notices; transport documents - Master / house waybill - sea / air; cargo receipt; transport set; Equipment Interchange Receipt; delivery / release order)
UN/CEFACT
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DTTN Document Exchange Services (2/2)DTTN Document Exchange Services (2/2)
Integration with Government Trade document providers - GETS (Trade Declaration, Certificate of Origin, Textile Notifications, Dutiable Commodities Permits, Manifest…)
Settlement Process (Letter of Credit; Company Guarantee; Bill of Exchange; L/C collection letter; document arrival notice) [Depends on Bank participation]
Key document ownership transfer & “print right” with local on-line payments (transport documents e.g EIR; local trade services invoice; payment instruction / confirmation)
UN/CEFACT
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Development of DTTN Canonical XML Development of DTTN Canonical XML Document StructuresDocument Structures
Following UBL Methodology to develop Canonical XML
Structures for over 60 major international / local trade
documents
The DTTN Standards Advisory Group, comprising relevant industry associations, has reviewed and endorsed over 50 documents
Exploring the submission of these document structures to UBL for incorporation within UBL V2.0, as part of proposed alignment with UN-eDOCS under the UN/CEFACT
framework
UN/CEFACT
UNECEUNECEUNECEUNECE
DTTN Interconnection Example – DTTN Interconnection Example – Purchase to DeliveryPurchase to Delivery
Buyer 1 DTTN1. PO (X 12)
Buyer 2
Forwarders
Seller
ApplicationService
Provider 2
6. Shipment Status
(Web)
1. PO (Excel)
2. SO, CI, PL (Excel)
5. BL (EDIFACT)
2. SO, CI, PL (EDIFACT)
5. BL (Excel)
4. Shipment Status(X 12)
SO - shipping orderCI - commercial invoicePL - packing listBL - bill of lading
ApplicationService
Provider 3
Carriers
3. Master SO (EDIFACT)
3. Master SO 4. Master BLShipment Status
4. Master BL,Shipment Status
(EDIFACT)
3. Master SO(EDIFACT)
6. Goods / Shipment Status
(Web Services/XML)
6. Shipment Status (EDIFACT)
4. Master BL, Shipment Status (EDIFACT)
Goods Status (RFID / EPCGlobal)Goods
Tracking Locations
Physical Delivery
UN/CEFACT
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Cost and Benefits of theCost and Benefits of the
Digital Trade and Digital Trade and
Transportation Network Transportation Network
(DTTN)(DTTN)
UN/CEFACT
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Charges based on each successfully transformed and delivered
document
Initial connectivity, annual & customisation fees will apply
Final pricing details to be determined by DTTN Ltd Board closer to launch
Special Incentives for Pilot Users
Waive document charges for the duration of the pilot, waive initial connectivity charges
Rebates may accrue for each document transacted during the pilot
Be a part of the DTTN marketing program
Low Cost Community InfrastructureLow Cost Community Infrastructure
UN/CEFACT
UNECEUNECEUNECEUNECE
Cut operation costs through reduced delays, double handling / data entry & minimized errors
Save time and cost for document delivery e.g.EIR, HWB Better financial management e.g. credit, cash flow Easy, cheap & fast to interconnect with trading partners
– any-to-any protocol & document transformation Retain existing business against competition
more timely, accurate and value-add services Visibility along the supply chain Significant business and efficiency opportunities
“Just in time” supply chain management; e-access to more trading partners
What are the benefits of the DTTNWhat are the benefits of the DTTN
UN/CEFACT
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Digital Trade and Digital Trade and
Transportation NetworkTransportation Network
Model for Worldwide Model for Worldwide Paperless Trade Paperless Trade InterconnectionsInterconnections
UN/CEFACT
UNECEUNECEUNECEUNECE
Interconnecting for Paperless TradeInterconnecting for Paperless Trade
UN/CEFACT
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Oversease-LogisticsPlatform(s)/ or Direct
Buyers
Hong Konge-Logistics
Hubs(DTTN)
1a. PO
Suppliersin the
Mainland
Buyingoffices in
the Mainland
Nationaland
regional e-
Logistics Hubs in China
1a. PO
2a. SO, CI, PL
2d. BL
1a. PO
2a. SO, CI, PL
2b. SO Confirmation
2b. SO Confirmation
SO - shipping orderCI - commercial invoicePL - packing listBL - bill of lading
3a. BL, CI, PL
3a. BL, CI, PL
InternationalCarriers /Forwarders
2a. SO, CI, PL
1a. PO (copy)
2b. SO Confirmation
2d. BL
2d. BL
3a. BL, CI, PL
3a. BL, CI, PL4. Cargo Status,Shipment Advice
4. Cargo Status,Shipment Advice
4. Cargo Status,Shipment Advice
2d. BL
4. Cargo Status,Shipment Advice
1b. draft import Customs documents (for import of raw materials
1b. draft importcustoms documents
1c. import customsdocuments
MainlandCustoms1c. import customs
documents
3b. draft importcustoms documents
(if export via HK)
3b. draft importcustoms documents
(if export via HK)
HK SAR 3c. import documents
Overseas Customs
Model for Worldwide Paperless Trade Model for Worldwide Paperless Trade InterconnectionsInterconnections
UN/CEFACT
UNECEUNECEUNECEUNECE
Lack of IT sophistication for Small and Medium Enterprises difficult to compete against multi-nationals
High cost in integrating with local and overseas trading partners
Government acceptance of electronic documents from overseas (e.g. Certificate of Origin) is limited
Inhibitors for Paperless Trade (1/2)
UN/CEFACT
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No commonly accepted trust framework for cross border paperless trade
Paper documents dominate for payment and settlement
Lack of coordinated and neutral interconnected platforms to streamline the “total” trade chain for all parties
Inhibitors for Paperless Trade (2/2)
UN/CEFACT
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Efficiency / competition for international trade
Government Mandate
Increasing drive towards integrated global digital supply chains
Metcalfe’s Law
Value of a Network = (Number of Connected Parties)2
Motivators for Paperless Trade
UN/CEFACT
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To make Cross Border Paperless Trade happen we need to…….
Request US and European Governments to accept electronic Certificates of Origin
Support the Financial community’s drive to accept cross border electronic documents for settlement
Find ways to increase acceptance of a common cross border trust framework for paperless trade
Expand hub-hub interconnections between major consumer markets (North America / Europe) and major supplier bases (Asia)
Show demonstrable benefits for “expanded pilot” project as a platform to develop a critical mass of users in focus areas
UN/CEFACT
UNECEUNECEUNECEUNECE
The Digital Express Link to your Business Partners Worldwide