Documentary Standards for Cross Border Trade - UN Layout Key, UN Trade Data

Element Directory (UN/TDED)

UNNExT: Networking for Efficiency in Cross Border Trade

Geneva, December 2010

In this presentation..

Role of documents for information exchange in supply chainsStandards for simplification and automation of trade documents

United Nations Layout KeyCode for Trade Data Semantic standards

Trade Documents and international Supply Chains

Trade Documents are the core means of exchanging the information

Goods can not move faster than the information that controls them

Information is the key to the processes

A key instrument for revenue collection and risk analysis

Source: Inova, Thailand

Trade documents and information exchange

Enter seaport

Report cargomanifest

Unload cargo

Arrange forpick-up

Vessel Agent

Clear goods through customs

Handle cargoat terminal

Port Operator

Marine Department

Terminal OperatorHaulage/Truck

Complete customsrequirements

Pilot’s Station

Customs

Importeror Representative

Other GovernmentAgencies

Example (Thailand): Stakeholders who’re involved in Importation by SeaBusiness Processes

Actor

Rule of thumb:

In international trade in average 27 independent operators,

40 documents, 400 copies,

80% of all data in trade documents is the same

Costs of trade documents to national economy

Each additional day of delay (e.g. because of trade procedures) reduces trade by at least 1%Ref: “Trading on time”, Simeon Djankoc, Caroline Freud, Cong S. Pham, World Bank (2007)

Direct and indirect cost from import/export related procedures and related documents is about 1 -15% of product costRef: “Quantitative assessment of the benefits of trade facilitation”, OECD (2003)

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

United Nations Layout Key

The UN Layout Key provides:

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 information (UNTDED)

5. A concept to created aligned sets of trade documents

Standard for rendering information (Layout Key Form)

Box Design PrincipleRelated information is placed in a box

Box consists of box heading and data fields

Information is placed in specific parts of the documentIn any aligned document the same information will be placed in

the same location A set of simple rules for modification of the standard

Layout Key to obtain the layout of an Invoice, Customs Declaration,..

Bill of Lading , 1798

UNLK: Layout Key for Trade DocumentsConsignor (Exporter)

Consignee

Notify or delivery addressTransport details

Shipping marks; Container No.

Number and kind of packages;Goods description

Date, Reference No, etc.Buyer (if other than consignee)

or other addressCountry whence consigned

Country of originCountry of destination

Place and date of issue; Authentication

Commodity No.Gross weight

CubeNet quantity

Value

More particular needs in individual applications

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

Did you say Paris?

There are five locations in the world called “Paris”

US IL PRP ParisUS KY PZT ParisUS TN PHT ParisUS TX PRX ParisCA ON PAO ParisFR 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

UN/CEFACT 15 recommendations on the use of Codes

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

Rec:19Mode of Transport

Rec:16UN/Locode ISO Country

Code

Rec: 17Payment Terms

Rec:9Currency Code

Rec:20 Units of Measurement

Rec: 28Means of Transport

Commodity Code

Rec: 21Package Codes

Semantic of information in documents (UNTDED)

There is a need to provide commonly accepted definitions for the data elements in a Form

UNTDED (ISO 7372)A repository with definitions of important data elements used in

international trade

Example:6292 Gross WeightWeight (mass) of goods including packaging but excluding the

carrier's equipment.

ISO 7372 UNTDED

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Analyse and define data in a trade document

UNTDED (ISO 7372)Definitions of important data elements used in international

trade

Steps: Make a list of all data elements in a document Define data elements in your own language/terminology Define data using international standard:

UNTDED (ISO 7372) WCO DE

Defining semantic of information in trade documents

Comparing data between documents

Example - Data Harmonization of 4 documents(Exporting Rice)

Request form for Permit for the export of rice

Request Form for Rice Quality Certificate

Standardized Data Set

of 4 documents

(70 Data Elements)

Standardization and Data Harmonizatio

n

24 Data Elements

63 Data Elements

Standardization and Harmonization can reduce the data elementsfrom 24+63+30+38=155 data elements

to 70 data elements for a standardized data set

Permit for the export of rice

Rice Quality Certificate

30 Data Elements

38 Data Elements

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United Nations Layout KeyAligned Trade Documents

Today, nearly all international trade documents are aligned to the UNLK

Standard Bill of Lading (International Chamber of Shipping)

Universal Air Waybill (IATA) International Rail Consignment Note (CIM Convention) International Road Consignment Note (CMR Convention) Single Administrative Document (SAD)…

.. much is left to be done on the national level

UNECE/UNESCAP Capacity Building for alignment of Trade Documents

Forms Repository on the Internet Guide for the design of aligned forms for paperless trade Electronic tools to align trade documents Training Videos Workshops for alignment and data harmonization Advisory services http://unece.unog.ch/etrade/tkhome.aspx

Thank You

Markus.Pikart@unece.org