UNECE The United Nations Layout Key for Trade

UNECE The United Nations Layout Key for Trade Documents Tom Butterly UNECE

UNECE The UN Layout Key (UNLK) This Session will cover: Overview of the UNLK Design principles and applications Standards, codes and Recommendations behind the UNLK Implementation tools

Information - controls the entire trade transaction process UNECE q Exchange of information - covers the entire trade transaction process q q q q Sales contract Movement of goods Official controls Payment Trade Documents are the core means of exchanging this information The goods cannot move faster than the information that controls them Increasing requirements for faster delivery for supply chains etc Impact of Security on Information requirements (24 hour rule, ACI, etc)

UNECE Many Parties Involved Source : Complex Networked Supply Chain [Harwick, 1999

UNECE And many Trade Documents Enquiry Order Despatch advice Collection order Payment order Documentary credit Forwarding instructions Forwarder's invoice Goods receipt Sea waybill Rail consignment note Bill of lading Freight invoice Cargo manifest Export licence Exchange control doc. Phytosanitary certificate Veterinary certificate Certificate of origin Consular invoice Dangerous goods declaration Import licence Customs delivery note TIR carnet ATA carnet

If this process is not simplified and coordinated - Frustration! Product Company A Company B UNECE Supplier Manufacturer Wholesalers Retailers Customer

UNECE And Cost q 40+ documents to manage the export process q Costs - up to 10 per cent of the value of the goods (annual global costs related to trade documents: 550 Billion USD

UNECE q United Nations Layout Key Historical background Up 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 • 1950 s: Trade Facilitation in Sweden and other Nordic countries • 1960 s: UNECE set up a Working party to simplify and standardise international trade • 1963: International model form adopted as a Layout Key

United Nations Layout Key Historical background UNECE • 1960’s and 70 s: 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 called the United Nations Layout Key for Trade Documents

Borders UNLK Set of standards Boxes Data Elements and Boxes

Mode of transport Destination

UNECE • • • UNLK INTEGRATED SET OF STDS Rec 3 County of Origin: UN Rec 3 use ISO 3166 2 digit country codes Rec 5 Terms of delivery: Rec 5 Aberration of ICC Incoterms Rec 7 Numerical representation of date and time Rec 8 Unique Identification Code Rec 9 Alphabetic Code of the Representation of Currencies Rec 16 Codes for ports and other locations; Port of Loading: Rec 16 LOCODE Codes for ports and other locations; 55” entries; Show Switzerland Rec 19 Codes for Mode of transport Rec 20 Codes for Units of Measurement Rec 22 Packaging codes CODES SIMPLIFY AND STANDARDISE THE INFORMATION – A CRITICAL FEATURE FOR e. DOCUMENTS

UNECE 6. System of aligned Trade Documents Shared Information The common information definition allows the exchange of data between documents (70% of all information in trade documents is shared)

UNECE Master Document and Series of Aligned Documents See UNLK Guidelines for details …

UNECE Many national and international sectoral documents developed through the UNLK Hierarchical System of Design

UNECE Hierarchical System of Design

UNECE United Nations Layout Key Aligned Trade Documents Today, nearly all international trade documents are aligned to the UNLK Examples: • 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) • GSP Certificate • Cargo Declaration (IMO FAL) • etc

UNECE United Nations Layout Key… SAD

UNECE Tools Available UNLK Guidelines UNLK Recommendation International Document Set UNe. Docs

• Built on a series of standards • Box design principle - related information always appears in the same place • Common definition of data elements • One run system of aligned documents • Series of Recommendations and standards developed around the data elements • System of Sectoral, and National Layout Keys and standard forms

UNECE Key Message • UN Layout Key is an intelligent integrated set of UNECE, ISO and other international standards that are the foundation for the flow of information in trade transactions • Implemented in many developed economies but still much room for use in developing economies • Selection of tools are available from UNECE • Huge potential savings for both business and government

UNECE Key Message • Can be used directly irrespective of level of technological development • Aligned trade documents are a prerequisite for development of electronic documents • Aligned Trade Documents are a Key element in achieving trade efficiency. . .

UNECE International Competitiveness and Trade Facilitation World Economic Forum Country competitiveness rankings 2004 1. Finland 2. United States 3. Sweden 4. Taiwan 5. Denmark 6. Norway 7. Singapore 8. Switzerland 9. Japan 10. Iceland 11. United Kingdom 12. Netherlands

UNECE Thank you!