Framework of Std WCO PPT for Econ and Finance

Framework_21feb06

1. WCO Framework of Standards
To Secure and Facilitate
Global Trade
UNeDocs
A 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

2. About WCO
Evolution of Customs
WCO Initiatives
WCO Framework of Standards
WCO Data Model vs UNeDocs
Moving Forward
Outline

3. 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

4. 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

5. 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

6. 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 Standards
To Secure and Facilitate Global Trade

7. 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 Standards
To Secure and Facilitate Global Trade

8. 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 Standards
To Secure and Facilitate Global Trade

9. What is WCO Data Model?
What is UNeDocs?
WCO Data Model vs UNeDocs

10. 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

11.  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.

12. 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.

13. 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.

14. 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

15. 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

16. 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