WCO Framework of Standards To Secure and Facilitate

Global Trade

UNeDocsA cross-domain (Trade, Transport and Customs)

data model

Marianne Wong Mee Wan

Senior Assistant Director of Customs (Malaysia)

Capacity Building Workshop on ‘International Standards to Stimulate Paperless Trade’

UN/CEFACT WCORMC

About WCO Evolution of Customs WCO Initiatives WCO Framework of Standards WCO Data Model vs UNeDocs Moving Forward

Outline

Established in 1952, HQ in Brussels To improve the effectiveness and

efficiency of Customs Administrations 169 members, representing 99% of

global trade

World Customs Organization

Evolution of Customs

Customs Function

Framework of Standards

Security (terrorism – shifting focus to entire supply chain)

Economic Development (trade, investment)

Protection of Society (health & safety)

Protection of Economic Interests (domestic industries)

Revenue Collection of Import Taxes

Security and Facilitation Programmes: The Revised Kyoto Convention Risk Management Guide Application of Information and Communication

Technology WCO Data Model Unique Consignment Reference Time Release Study Immediate Release Guidelines Recommendations WCO Framework of Standards

WCO Initiatives

Background Drawn up by High Level Strategic Group of Directors General Accepted in principle by WCO’s Policy Commission in December

2004 Adopted by Directors General of 166 Customs Administrations

in June 2005

Objectives Establish standards to secure and facilitate global trade in the

supply chain Enable integrated supply chain management for all modes of

transport Enhance the role, functions and capabilities of Customs Strengthen co-operation between Customs administrations Strengthen Customs/Business co-operation Promote the seamless movement of goods

WCO Framework of StandardsTo Secure and Facilitate Global Trade

4 Core Elements

Harmonizes the advance electronic information on inbound, outbound and transit shipments (using WCO standard Data Model for electronic Customs messaging)

Application of risk management approach to address security threats

Outbound inspection of high-risk consignments being exported, preferably using non-intrusive detection equipment such as large-scale X-ray machines and radiation detectors

Customs will provide benefits to businesses that meet minimal supply chain security standards and best practices

WCO Framework of StandardsTo Secure and Facilitate Global Trade

Customs-to-Customs Pillar

1. Integrated Supply Chain Management

2. Cargo Inspection Authority

3. Modern Technology in Inspection Equipment

4. Risk-Management System

5. High-risk Cargo or Container

6. Advance Electronic Information

7. Targeting and Communication

8. Performance Measure

9. Port Security Assessment

10. Employee Integrity

11. Outbound Security Inspection

Customs-to-Business Pillar

1. Partnership

2. Security

3. Benefits

4. Technology

5. Communication

6. Facilitation

The Two Pillars of the Framework

WCO Framework of StandardsTo Secure and Facilitate Global Trade

What is WCO Data Model?

What is UNeDocs?

WCO Data Model vs UNeDocs

WCO Customs Data Model(WCO CDM) is originated from the G7 data set which was handed over to the WCO in January 2002

WCO CDM containing the G7 data sets, the G7 EDIFACT message specifications, the G7 code lists, and the Kyoto Customs Data Principles was adopted as version 1.0 in June 2002

WCO CDM was reexamined and updated to version 1.1 to include data necessary to identify high-risk goods (completed – June 2003)

WCO CDM was updated to version 2.0 based on international standards to include data pertaining to transit and transport requirements only

Other Government Agencies’ requirements too complex (deferred to version 3)

WCO CDM version 2.0 was endorsed by the WCO Council in June 2005

WCO Customs Data Model

Content of WCO CDM version 2.0 Revised Kyoto Convention Models

Business Process Models

Use Case diagram, Use Case description, Activity diagram, Sequence diagram and Class diagram

Framework with sets of standardized and harmonized maximum data requirements (264 data requirements)

Standard electronic EDIFACT message

EDIFACT Message Implementation Guidelines (MIGs)

XML schemas

WCO Customs Data Model…cont.

3 distinguish features of WCO CDM Version 2.0

Adoption of UMM (UN/CEFACT Modeling Methodology) and UML (Unified Modeling Language)

Inclusion of goods transit information

Inclusion of conveyance information

WCO CDM version 2.0 has incorporated the UCR (unique Consignment Reference, WCO ID 016)

To provide continuity of the audit trail from source to destination

Maximum field length is 35 characters (an..35)

WCO Customs Data Model…cont.

WCO Data Model takes into account the Single Window Concept (data requirements and reducing redundancies)

Scope of WCO Data Model version 3.0 Deferred DMRs from version 2.0

Customs Transit

Response

Ongoing alignment with CEFACT Core Component Technical Specification (CCTS), United Nations Trade Data Elements Directory (UNTDED) and to work towards the full engagement of trade/transport

Review and resolve inconsistency (e.g data elements from a paper environment)

OGA/PGA

• Only processes directly related to the clearance of goods, means of transport and crew

• at least health and agricultural (national and international)

• No license/permit application/request/approval processes

WCO Data Model version 3.0.

Based on the concept of a cross-domain (Trade, Transport and Customs) data model, known as the UNeDocs Master

Based on international standards including the UN/CEFACT Unified Modelling Methodology,UN Trade Data Element Directory (UNTDED) and other global instruments

Shares that alignment with the WCO Data Model

A superset of data elements used within the international purchase and supply chain

Syntax independent and can be used to produce documents in paper, EDI or XML formats

The WCO data set has been included within UNeDocs

Importers will be able to exchange WCO information electronically using UNeDocs XML transactions create local Customs declaration

Will include additional regulatory requirements (e.g permit, licenses) when this information becomes available in WCO Data Model version 3.0

UNeDocs

Adopting International standards such as UN/CEFACT Unified Modelling Methodology,UN Trade Data Element Directory (UNTDED) and other global instruments

Data elements used within the international purchase and supply chain

Taken into consideration security, trade facilitation and Single window Approach

Will include regulatory requirements (e.g permit, licenses)

WCO data set a sub-set of UNeDocs

Exporters and importers will be able to exchange WCO information electronically using UNeDocs XML transactions create local Customs declaration

WCO Data Model UNeDocs

Moving Forward WCO established the Framework as a minimum set

of standards; members have to implement; 120 members signed letter of intent

Implementation in phases; WCO assistance in capacity building, diagnostic studies, funding opportunities, pool of experts

G8 countries and APEC economies have agreed to implement WCO Data Model, where possible.

Customs Administrations of UK, US, Canada, India, Japan, Australia, Chinese Taipei have already begun to move towards full implementation of the WCO Data Model and others are moving in

WCO is involved in UNeDocs project through the TGB4 Customs Domain working group and will work closely with the UneDocs team in a collaborative manner towards integration of the WCO Data Model and UNeDocs