Research Paper – Possible models and options for data

exchange for achieving cross border paperless trade

Tahseen Khan, Vice Chair, UN/CEFACT

Kaushik Srinivasan, Senior Vice President, eMudhra

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1. Executive Summary

2. Implementation models for data exchange

3. Current Challenges

4. Transition Measures

Content

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Executive Summary

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Executive Summary

• Cross border paperless trade in implementation

in Asia Pacific is 32%

• As defined in United Nations TF survey for Asia

Pacific, among the six cross-border paperless

trade measures, only laws and regulation for

electronic transaction has seen a implementation

level of more than 50%

• Implementation for other measures that are

related to technology and electronic exchange of

data such as Customs Declaration, CoO etc has

been very slow

• The survey also highlights that the legal

frameworks also may not be ready to support the

legal recognition of electronic data or documents

from other countries

Source: UN Global Survey on digital and sustainable trade facilitation 2019

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Executive Summary

Open Standards and Interoperable data exchange models can help overcome this

gap in implementation of cross border paperless trade measures

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Models for data exchange

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Data FormatsData Format Category Example data formats Extensions Remarks and Pros/Cons

Numeric/String Data Numbers, Strings, Datetime Objects Internal extensions as part of

Database

Generally stored in rows and columns in

databases which are excellent for storage

and retrieval but not as flexible for web data

transfer as required in paperless trade

Documents PDF, Text Document, Word Document PDF, Txt, DOC Used to store unstructured/text data, PDF

used for storing digitally signed documents

but not as efficient for automation as part of

web data transfer in cross border paperless

trade.

Spreadsheets Excel, Open document CSV, TSV, XML, ODS Generally stored in rows and columns in

formats not suitable for web data transfer

Figures Pictures JPEG, PNG, SVG etc Useful in capturing and exchanging

information in visual form. Pictures can be

exchanged either directly or through links

Compressed Files Compressed Files, Folders Gzip, Zip Useful in reducing size of transmission of

large volume of web information

Data Objects Structured, nested and visual data

notation formats

EDI, XML, JSON, QR Codes Formats which are highly suited for web data

transfer through data encapsulation and

ability to send collections of such data

Data Exchange API (Application Programming Interfaces) REST, SOAP Ideal for secure web data transfer between

two systems

• Data Objects and Data Exchange are recent developments in technology that allow encapsulation and sharing of

information in an interoperable manner

• These can be very useful for implementation of cross border paperless trade initiatives

Fu

nd

am

en

tal

Da

ta E

lem

en

ts

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What is an XML/JSON

▪ Lightweight text based data-

interchange format

▪ Completely language independent and

interoperable

▪ Supported by all Browsers and

Programming Languages

▪ Semantic based data interchange

format

▪ Language independent and

interoperable

▪ Supports validation against a schema

JSON

(Javascript Object Notation)

XML

(Extensible Markup Language)

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What is an API – With an example

• User types xe.com

• Enters currency

• Chooses currency

• Hits Go

• Sees Results

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What is an API – With an example

• Same results exposed through a JSON notation as part of an API (Application Programming Interface)

accessible via a web URL http://data.fixer.io/api/latest?access_key=89aae4bb97079f6e159730ad3f000538&base=EUR&symbols=JPY,AUD

• API’s are URL’s that act as gateways to retrieve information from various systems without the need to

duplicate storage of information

• API’s are building blocks of various modern websites and are excellent for Machine to Machine

exchange of information

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API/JSON – Trade Example

• A consignment resource exposed

as API’s

• API provides links to a sources of

information

• API’s offer a paradigm shift from

document exchange to linked

data discovery

• Security aspects such as Identity

Management taken care of by

tokens that are created at the

time of identity verification and

authentication.

• Based on this carry the tokens

carry claims or assertions for

access using interoperable

protocols such as Open ID

Source:

https://www.unece.org/fileadmin/DAM/cefact/cf_forums/2019_UK/Conf_APIs/PPTs_07_SCap

ell_RegulatorAPI.pdf

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Case Study – eInvoicing in India

• Receives notification

of invoice

• De-duplication check

• Unique invoice with

unique number

• Does de-duplication check

in GST system

• Generates Invoice Receipt

Number

• Returns Invoice Receipt

Number

• Also generates Way Bills

for physical goods

movement

Recieves

acknowledgement

Seller

Pushes

JSON of

the e-

invoice to

IRP

ERP/Accounting

System

Invoice Registration Provider(IRP)Indirect Tax System

Buyer

Secure

API

Secure

API

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2 2a

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2b

• India is rolling out e-Invoicing based on PEPPOL standards (used globally) in 2020 allowing businesses to create and

register invoices that are interoperable

• The data format and systems are based on

• Interoperable global standards

• Defined schema based on JSON/XML

• Use of API’s for secure exchange of information, validation and verification of data

• This means invoices created in India and sent digitally as part of cross border paperless trade can be easily understood

by Counterparties, Banks, Customs Agencies in another country which has a similar eInvoicing system

• This is an example of how standards based eInvoicing can aid in mutual recognition of cross border paperless exchange

of electronic data as part of trade processes

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Current Challenges

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Current Challenges - Key Governance Principles

• Any adoption of data exchange and associated technology must support key governance

principles that are adopted in national legislation relevant for electronic transactions

• These include

• Principle of non-discrimination between use of electronic communications and

paper. Laws that allow submission of electronic information are essential

• Principle of functional equivalence implies that paper based communication may be

replicated by electronic communication which may or may not be mirror images of

paper based procedures

• Principle of technological neutrality when adopted must be open to future

developments in technology

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Current Challenges - Technical Considerations

• A lot of existing exchange of documents have been built on legacy systems which by design

are resistant to change.

• Current models of data exchange which are mostly direct alternatives to paper rely on

complete data sharing and results in duplication of information

• Designing electronic paperless trade systems should take into account

• Ability of technology such as API’s to encapsulate information in an containerized and

incremental manner

• Use of Blockchain systems with a “privacy by design” to share information that’s required

by specific organizations or agencies

• Requirement to sometimes rearchitect entire data pipelines and deploying entirely new

systems that are standards based and therefore somewhat “future proof”

• Capacity building to react and adapt to evolving changes in technology

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Transition Measures

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Transition Measures

• Transition measures will be based on technical readiness assessments that focus on use of

technology in enabling electronic data exchange and support for mutual recognition

• UNESCAP has been conducting such assessments for select countries in Asia Pacific

• These assessments can form the basis for defining transition measures that focusses on

principle of progressive automation

• The areas of focus could be

• Improving coverage of regulatory authorities that accept electronic documents and

reducing scope for paper movement

• More alignment of various local system standards with International Standards. For

example: eInvoicing

• Ensuring gradual adoption of newer systems and standards through initial voluntary

adoption and subsequent mandate where necessary

www.emudhra.com

Thank you

Project Team

Tahseen Khan, Vice Chair, UN/CEFACT

Kaushik Srinivasan, Senior Vice President – eMudhra