UNECE

United Nations Electronic Trade Documents

Aligned Trade Documents for Efficient Trade:

Migrating from paper to digital paper

UNECEBangkok, December 2007

UNECE

United Nations Electronic Trade Documents

Trade documents and efficiency of Global Supply Chains

UNeDocs Digital Paper: Example

Migration: From paper to better paper to digital paper

UNECE

Goods can’t move faster than the information that controls them

Information is crucial for efficiency and security of the SC

Trade Documents are the core means of exchanging this information

Trade Documents and Cross Border Supply Chains

UNECE

Some figures:

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

The paper avalanche

UNECE

Cos

ts -

US

$

Germany

$85

$425

$30

$200

Total duration: 7 daysTotal cost: $740

A B C D- - - -

900 –

750 –

600 –

450 –

300 –

150 –

0 –

A. Documents Preparation

B. Inland transportation and handling

C. Customs clearance and technical control

D. Ports and terminal handling

Germany (days)

Thailand (days)

3 9

1 3

1 1

1 4

Cos

ts -

US

$Thailand

$270

$220$50

900 –

750 –

600 –

450 –

300 –

150 –

0 –

Total duration: 17 daysTotal cost: $615

$75

A B C D

- - - -

Costs to Export: Thailand / Germany

Source: World Bank; Doing Business (http://www.doingbusiness.org)

UNECE

Documents and supply chain efficiency

Efficiency of documents and related procedures has a key impact on transaction costs, time and risks:

Container clearance costs in Japan: paper documents 26” Yen and 23 hours,

electronic documents 11” Yen and 4 hours

Each day saved in shipping time is be worth 1 %, ad valorem, of

the manufactured goods

Induced costs (storage, non delivery and delays) are often

higher than freight and other costs related to shipment

The same car manufacturer carries 7 days of inventory in Italy,

in Morocco 37 days

UNECE

Moving from today’s paper documents Information exchange in global trade is based on paper documentsTrade processes and practice are based on paper documents

To electronic documents:NeedNeed the ethe equivalentquivalent of a paper document in electronic formatof a paper document in electronic format

BuildBuild on on existingexisting standards and standards and intint’’ agreementsagreements

ComplementComplement the the paper standards paper standards withwith electronicelectronic standard standard componentscomponents

Documents Documents withwith fallbackfallback optionoption to paper to paper

United Nations United Nations electronicelectronic Trade DocumentsTrade Documents

Digital Digital PaperPaper for Tradefor Trade

UNeDocsThe "digital Paper" approach

UNECE

UNECE

UNECE

UNECE

Importer

Advance copy by email

Shipping Line

UN/EDIFACT

Document in PDF

Exporter

Bank

Paper Printout

Customs

XML

One single electronic document adaptingto different information processing concepts

UNeDocs

UNECE

Nothing new under the sun: Document Standards for Cross Border Trade 3300 BC

UNECE

UNeDocs ImplementationDifferent Levels of Automation

StandardizationStandardization

ElectronicElectronic

Aligned paper documents

Data Models

UNeDocs digital Paper

Single Window &Logistics

Paper wrapped in electronic tools

PaperPaper

UNECE

UNeDocs Scenario I: Alignment of Paper Documents; Documents travel with Goods..

ImprovementImprovement: Better documents, less documents : Better documents, less documents less risk, less risk, efficient procedures,efficient procedures,

Paper documents aligned to Paper documents aligned to intint’’ standardsstandardsPaper documents travel with the goods (truck)Paper documents travel with the goods (truck)

UNECE

UNeDocs Scenario II: Paper with electronic toolsAdvance Notice with paper original

Trader generates a UNeDocs PDF documents and Trader generates a UNeDocs PDF documents and emails to Customsemails to CustomsA printout of the PDF document travels as original A printout of the PDF document travels as original with the truckwith the truck

ImprovementImprovement: advance information, faster Customs : advance information, faster Customs processing, business process stays the same (paper processing, business process stays the same (paper based)based)

UNECE

UNeDocs Scenario IIIElectronic PDF Document with signature

ImprovementImprovement: Paper replaced by PDF document; : Paper replaced by PDF document; Documentary check before truck arrives; Less risk for Documentary check before truck arrives; Less risk for authorities and trader, authorities and trader,

Trader generates a UNeDocs PDF documents with Trader generates a UNeDocs PDF documents with digital signaturedigital signature

UNECE

UNeDocs Scenario IV Paperless trade

ImprovementImprovement: Paper replaced by PDF/XML; fully : Paper replaced by PDF/XML; fully automated B2G eBusiness processautomated B2G eBusiness process

Trader generates a UNeDocs PDF documentTrader generates a UNeDocs PDF documentCustoms saves document XML and updates itCustoms saves document XML and updates it’’s IT s IT systemssystems

UNECE

Trade documents are a core instrument to increase efficiency and security of trade

International standards are the basis for efficient paper and electronic documents

Standards and concepts for the migration from paper to electronic documents are now becoming available

Trade facilitation solution = use of a standard + adaptation to the specific user requirements

Summary

UNECE

UNeDocsDigital Paper for Trade

Thank You

Markus.Pikart@unece.org

www.UNeDocs.org

www.unece.org/cefact/forum_grps/tbg/tbg2_edocs/tbg2_edocs.htm