The European Union makes it a top priority to ensure the security of its citizens and single market. Every year trillions of Euros worth of goods are imported into EU, with the EU-27 now accounting for around 15 % of the world’s trade in goods. The European Union is implementing a new customs pre-arrival security and safety programme, underpinned by a large-scale advance cargo information system – Import Control System 2 (ICS2). The programme is one of the main contributors towards establishing an integrated EU approach to reinforce customs risk management under the common risk management framework (CRMF).
The pre-arrival security and safety programme will support effective risk-based customs controls whilst facilitating free flow of legitimate trade across the EU external borders. It represents the first line of defence in terms of protection of the EU internal market and the EU consumers. The new programme will remodel the existing process in terms of IT, legal, customs risk management/controls and trade operational perspectives.
The EU’s new advance cargo information system ICS2 supports implementation of this new customs safety and security regulatory regime aimed to better protect single market and EU citizens. It will collect data about all goods entering the EU prior to their arrival. Economic Operators (EOs) will have to declare safety and security data to ICS2, through the Entry Summary Declaration (ENS). The obligation to start filing such declarations will not be the same for all EOs. It will depend on the type of services that they provide in the international movement of goods and is linked to the three release dates of ICS2 (15 March 2021, 1 March 2023, and 1 March 2024).
Advance cargo information and risk analysis will enable early identification of threats and help customs authorities to intervene at the most appropriate point in the supply chain.
ICS2 introduces more efficient and effective EU customs security and safety capabilities that will:
Increase protection of EU citizens and the internal market against security and safety threats;
Allow EU Customs authorities to better identify high-risk consignments and intervene at the most appropriate point in supply chain;
Support proportionate, targeted customs measures at the external borders in crisis response scenarios;
Facilitate cross-border clearance for the legitimate trade;
Simplify the exchange of information between Economic Operators (EOs) and EU Customs Authorities.
For more information on the ICS2 programme, refer to the EU Webpage here!
Following the adoption by the December 2020 Policy Commission and Council of key documents forming part of the WCO E-Commerce Package, the WCO web-site now features the complete set of tools supporting the implementation of the Framework of Standards on Cross-Border E-Commerce (E-Commerce FoS).
The documents endorsed by the December 2020 Policy Commission and Council are “Reference Datasets for Cross-Border E-Commerce”, “Revenue Collection Approaches”, “E-Commerce Stakeholders: Roles and Responsibilities”, a document on a PTC decision on the E-Commerce FoS update/maintenance mechanism, and the first edition of the Compendium of Case Studies on E-Commerce. In addition, the Policy Commission and Council took note of the progress in the area of cross-border e-commerce, including the finalization by the Permanent Technical Committee in June 2020 of key performance indicators for possible monitoring and evaluation of the E-Commerce FoS implementation.
The WCO E-Commerce FoS was endorsed by the Policy Commission and Council in June 2018, while the June 2019 Council sessions witnessed the endorsement of the WCO E-Commerce Package, with the exception of three Annexes to the E-Commerce FoS Technical Specifications.
The E-Commerce FoS provides 15 baseline global standards with a focus on the exchange of advance electronic data for effective risk management and enhanced facilitation of the growing volumes of cross-border small and low-value Business-to-Consumer (B2C) and Consumer-to-Consumer (C2C) shipments, through simplified procedures with respect to areas such as clearance, revenue collection and return, in close partnership with E-Commerce stakeholders. It also encourages the use of the Authorized Economic Operator (AEO) concept, non-intrusive inspection (NII) equipment, data analytics, and other cutting-edge technologies to support safe, secure and sustainable cross-border E-Commerce.
The E-Commerce Package contains Technical Specifications to the E-Commerce FoS, definitions, E-Commerce Business Models, E-Commerce Flowcharts, Implementation Strategy, Action Plan and Capacity Building Mechanism, which have now been supplemented by the documents on Reference Datasets for Cross-Border E-Commerce, Revenue Collection Approaches and E-Commerce Stakeholders: Roles and Responsibilities. The document on Reference Datasets for Cross-Border E-Commerce is an evolving, non-binding document that can serve as a guide to WCO Members and relevant stakeholders for possible pilots and implementation of the E-Commerce FoS. The Revenue Collection Approaches document has been designed to describe existing revenue collection models with the objective of providing a better understanding thereof. The document on E-Commerce Stakeholders: Roles and Responsibilities provides a clear description of the roles and responsibilities of various E-Commerce stakeholders for transparent and predictable cross-border movement of goods, and does not place any additional obligations on stakeholders.
The first edition of the Compendium of Case Studies on E-Commerce compiles seventeen case studies and supports the WCO Membership with practical examples of how individual Members address priority issues, such as exchange of advance electronic data, facilitation, safety, security and revenue collection (including de minimis levels).
The importance of developing global digital trade rules has never been clearer. The COVID-19 pandemic has accelerated the digital transformation, bringing about a surge in online activities. E-commerce will be critical to the global economic recovery. The Joint Statement Initiative on E-commerce (JSI) is an opportunity for the WTO to respond to this urgent need.
There has been encouraging progress in the JSI since negotiations were launched in 2019. Despite the challenges presented by COVID-19, co-conveners Australia, Japan and Singapore have ensured that work continues in virtual and hybrid formats. The number of participants in the initiative has grown to 86 WTO Members, collectively accounting for over 90 per cent of global trade and representing all major geographical regions and levels of development.
Consolidated Negotiating Text
JSI participants have developed a consolidated negotiating text that captures progress so far and will form the basis of the next stage of negotiations. The consolidated text was circulated among participants on 7 December 2020.
The consolidated text is based on Members’ proposals. These proposals cover the following themes:
enabling electronic commerce;
openness and e-commerce;
trust and e-commerce;
market access; and
scope and general provisions.
We have been able to advance the negotiations, guided by the objective of achieving WTO-plus outcomes that deliver meaningful benefits for businesses and consumers. Highlights include the good progress made in small groups on issues such as e-signatures and authentication, paperless trading, customs duties on electronic transmissions, open government data, open internet access, consumer protection, spam and source code, among others. Proponents of services market access commitments have also developed a possible framework for negotiations on these issues.
Provisions that enable and promote the flow of data are key to a high standard and commercially meaningful outcome. Discussions on these issues are ongoing and will intensify from early 2021. Japan and Singapore hosted an information session on data flows and localisation rules in November 2020, involving negotiators and the private sector, to build better understanding and support for strong commitments.
WTO members participating in the negotiation of rules on e-commerce shared updates on the work done to streamline the negotiating text at a plenary meeting on 23 October. The co-conveners, Australia, Japan and Singapore, encouraged members to propose constructive solutions and show flexibility in an effort to deliver a consolidated negotiating text by December this year.
Facilitators of small group discussions reported on the work done in between plenary meetings to further streamline text proposals in the areas of spam, source code, open government data, trade facilitation in goods, services market access, electronic signatures and authentication, and online consumer protection.
Participants also re-engaged on topics that had been scheduled for consideration in the postponed March and April-May negotiating rounds, namely protection of personal information/data.
The co-conveners set common principles for the small groups to make their work more efficient and consistent, noting that transparency and inclusion should guide their work.
Ambassador George Mina (Australia), on behalf of the co-conveners, noted that reports from small groups are encouraging and that there is still some work that needs to be done. He said that the participating members are only two months away from the deadline for delivering a consolidated negotiating text and that the consolidated text should include “clean text” on e-signatures, authentication, spam and online consumer protection. To that end, he urged participants to engage with each other informally, not only in small groups but also bilaterally, and to show flexibility wherever possible.
The co-conveners set 16 November as a deadline for any new proposals to be submitted by participating members.
Ambassador Mina highlighted that COVID-19 has increased the urgency of developing global rules on digital trade and that these negotiations are seen as a key test for the WTO to respond to modern commercial realities.
WTO negotiations on trade-related aspects of electronic commerce were launched in Davos in January 2019 with the participation of 76 members. The number of participating members now stands at 86. Participating members seek to achieve a high-standard outcome that builds on existing WTO agreements and frameworks with the participation of as many WTO members as possible. The e-commerce initiative was created on the margins of the WTO’s 11th Ministerial Conference in Buenos Aires.
Throughout their negotiations of the several e-commerce related topics, members have been encouraged by the co-conveners to consider the unique opportunities and challenges faced by members, including developing countries and least-developed countries, as well as by small businesses.
Ambassador Tan Hung Seng of Singapore, as a co-convener, encouraged members to propose constructive solutions as discussions intensify. He said that the initiative is well placed to swiftly develop something concrete that would benefit the global economy.
Ambassador Kazuyuki Yamazaki of Japan, as a co-convener, said that it was important to make as much progress as possible, and for the consolidated text to be comprehensive in reflecting issues proposed by members. He also urged members to take a holistic approach to the work of the initiative and address more challenging issues.
The co-conveners plan to hold ambassador level consultations to discuss and hear members’ views on the way forward between 28 and 30 October. The next plenary session will be on 5 November, during which an information session for members on data-related provisions will be hosted by Japan and Singapore.
A Global On-line Accreditation Workshop for English-speaking experts on E-Commerce was held from 31 August to 7 September 2020 via the CLiKC! platform of the World Customs Organization (WCO).
Due to the increasing needs of WCO Members for Capacity Building support for a harmonized and efficient implementation of the WCO Framework of Standards on Cross-border E-Commerce and other supporting tools, the Secretariat organized this first Accreditation Workshop in the area of E-Commerce as a pilot virtual accreditation initiative.
The event was organized with the objective of setting up a pool of English-speaking Technical and Operational Advisors capable of independently leading, on behalf of the WCO for its Members, Capacity Building missions in the field of Cross-border E-Commerce.
Twelve selected candidates representing five of the WCO regions took part in the Workshop. Mr. Mike Leahy of the Canada Border Services Agency (CBSA), former Customs Co-Chairperson of the WCO Working Group on E-Commerce, joined the workshop as a co-facilitator. Participants from Australia, Belgium, Brazil, Canada, China, Ireland, Japan, Mauritius, the Netherlands, Nigeria, Pakistan and the United Kingdom worked intensively and demonstrated their knowledge and skills to deliver Capacity Building activities in the area of Cross-border E-Commerce. Moreover, the Workshop served as a forum for sharing knowledge and experience, as well as discussing challenges and solutions.
The participants that successfully completed the Accreditation Workshop will be invited to the next stage of the WCO expert accreditation process, an in-field mission with a qualified WCO expert in the area of E-Commerce. Fully accredited experts will be expected to conduct future WCO Capacity Building activities.
India and South Africa circulated a communication to members of the World Trade Organization (WTO) General Council, arguing that the WTO moratorium on customs duties on electronic transmissions has “catastrophic” impacts on developing countries’ economic growth, jobs, and the attainment of the SDGs. In another communication, a group of WTO members highlighted “the overall benefits” of duty-free electronic transmissions.
The WTO e-commerce moratorium, which bans countries from imposing customs duties on electronic transmissions, dates back to 1998 when ministers at the Second Ministerial Conference adopted the Declaration on Global Electronic Commerce, calling for the establishment of a work programme on e-commerce, which was adopted later that year. Since then, at every Ministerial Conference, WTO members have agreed “to maintain the current practice of not imposing customs duties on electronic transmissions.”
The WTO Work Programme on Electronic Commerce defines “electronic commerce” as the “production, distribution, marketing, sale or delivery of goods and services by electronic means.” According to a recent WTO report, the enforcement of social distancing, lockdowns, and other measures to address the COVID‑19 pandemic resulted in an uptake in e-commerce, including online sales and streaming of videos and films.
In March 2020, India and South Africa circulated a communication, outlining the implications the moratorium has on developing countries, including: tariff revenue losses; impacts on industrialization; impacts on the use of digital technologies like 3D printing in manufacturing; as well as losses of other duties and charges. The countries argue that the moratorium is “equivalent to developing countries giving the digitally advanced countries duty-free access to [their] markets.”
According to a UN Conference on Trade and Development (UNCTAD) article, in 2017 alone, the potential tariff revenue loss to developing countries due to the moratorium was USD 10 billion. The article further notes that removal of the moratorium could provide policy space for developing countries to regulate imports of electronic transmissions and generate annual tariff revenue of up to 40 times greater than that in developed countries.
A communication from Australia, Canada, Chile, Colombia, Hong Kong, China, Iceland, the Republic of Korea, New Zealand, Norway, Singapore, Switzerland, Thailand, and Uruguay, circulated in June 2020, highlights a paper by the Organisation for Economic Co-operation and Development (OECD) titled, ‘Electronic Transmissions and International Trade: Shedding New Light on the Moratorium Debate.’ The members state that, according to the paper, “the overall benefits” of duty-free electronic transmissions “outweigh the potential forgone government revenues” due to the moratorium. The members recommend that these findings be considered in the current discussions on the extension of the moratorium.
A decision on whether or not the moratorium should continue will be taken at the 12th WTO Ministerial Conference (MC12). Originally scheduled for June 2020, the Conference has been tentatively postponed until June 2021.
As the title suggests, the latest edition of WCO Newscontains a variety of articles concerning Customs approach to COVID-19 and even one article relating to Customs Brokers on COVID-19. Other features include C-2-C cooperation and information exchange, Risk Management and the future invisible supply chain and Secure Border . Of interest for Customs Policy are articles on improvements to simplification and harmonisation of components to the Revised Kyoto Convention; WCO’s development of draft “Practical Guidance on Free Zones” as well as Internet domain name ownership data – understanding changes and useful suggestions for Customs. All in all another great read!
It is often difficult to navigate and assimilate the myriad of documentation and annexes associated with significant initiatives such as WCO’s ‘framework of standards’. True, the documentation is detailed and technical. There are, however, online training courses available on the WCO website for users wishing to attain a level of proficiency on a particular subject. Furthermore, member states can request technical assistance from WCO in the establishment of capacity for the implementation of specific Customs initiatives.
However, sometimes one requires a synopsis or insight as to what a particular initiative aims to achieve. This is important so as to establish the nature and extent of change and capacity required in one’s own domestic situation. In my area of operation, MS PowerPointTM plays an important role in uniformly conveying key information to a multitude of people across different disciplines in the organisation. Im happy to share a ‘guide’ which consolidates most of the ‘official’ WCO documentation that comprise the Framework of Standards on E-Commerce. When viewed as a PowerPoint Show, all hyperlinks to the official WCO E-Commerce documentation are available for download or display. Below are versions for both standard PowerPoint or PowerPoint Show. I hope it will serve some useful purpose.
The WCO and the International Maritime Organization (IMO) strengthened their partnership recently to further facilitate the exchange of information in a harmonized way by updating the IMO Compendium on Facilitation and Electronic Business and mapping it to the WCO Data Model. The updated Compendium, which is a set of standards on the submission of maritime related data, will enable the integration of Maritime and Customs Single Windows and allow closer coordination between Customs administrations and Maritime authorities.
It is known that when ships enter and leave ports, vital information concerning cargo, dangerous goods, crews, vessel details and other pieces of information have to be exchanged with the authorities ashore. However, under the International Maritime Organization (IMO) Convention on Facilitation of International Maritime Traffic (FAL), public authorities are now required to set up systems for this all to happen digitally.
With a view to sustaining the maintenance work of the Compendium and to allow more involvement of different stakeholders in the maritime supply chain, within the framework of existing partnerships, the IMO, the WCO, the United Nations Economic Commission for Europe (UN/ECE) and the International Standards Organization (ISO) have come together to support this increased maritime digitalization.
The renewed partnership paves the way for updating the IMO Reference Data Model and for its further development towards the harmonization of data standards in other areas, beyond the FAL Convention, such as exchanging operational data that could help facilitate the just-in-time operation of ships. Just-in-time operations allow ships to optimise their speed, so they arrive at their destination port when their berth is ready for them, thereby saving energy and cutting costs and emissions.
The partners involved have been cooperating to develop the IMO Reference Data Model, which is a key element of the IMO Compendium on Facilitation and Electronic Business and covers the reporting requirements defined in the FAL Convention to support transmission, receipt, and response of information required for the arrival, stay, and departure of ships, persons, and cargo via electronic data exchange. This work ensures interoperability between the respective standards of each organization, such as the WCO Data Model.
The WTO Secretariat has published a new information note looking at how the COVID-19 pandemic has affected e-commerce, including the implications for cross-border trade. It notes the increased use of e-commerce as consumers adapt to lockdowns and social distancing measures and draws attention to several challenges, such as the need to bridge the digital divide within and across countries.
As well as highlighting the uptick in e-commerce during the COVID-19 crisis, the report looks at measures introduced by governments to facilitate e-commerce and some of the challenges facing these initiatives. Governments have worked to increase network capacity, encourage the provision of expanded data services at little or no cost, and lowered or scrapped transaction costs on digital payments and mobile money transfers. The report also looks at ongoing e-commerce discussions in the WTO and how continued implementation of the WTO’s Trade Facilitation Agreement could address some of the challenges brought to the fore by the COVID-19 pandemic.
The report argues that the experiences and lessons emerging from the COVID-19 crisis could be a further incentive for global cooperation in the area of e-commerce, which could help to facilitate cross-border movement of goods and services, narrow the digital divide, and level the playing field for small businesses.
But for as much as shipping has changed over the decades, not much about the bill of lading (BL) has. Today, it’s pretty much the same often-paper, always-time-consuming document it ever was.
That’s why driving an eBill standard is largely considered the Holy Grail of global trade. Succeed in that, and partners up and down the supply chain would benefit from the days and weeks that paper BLs add to the process as they are printed, pouched, messengered, lost, found and waited upon.
It’s ironic because there isn’t a single aspect of the BL that couldn’t be done better digitally. To demonstrate, let’s dive into the essence of these documents and the challenges that remain to making them digital.
How does an original paper bill of lading work?
Once the vessel departs, an original BL can be issued by the ocean carrier. After the shipper endorses the original bill, it is couriered to the buyer who then needs to surrender it back to the carrier at destination as part of the cargo release process.
It sounds simple enough, but along the way the BL impacts many other processes and actions. Even before issuance, the time-consuming process from a shipping instruction to the issuance of a verified BL, many iterations and changes can occur to get the BL into an approved state.
The BL, and its critical data fields are required for customs clearance, letter of credit, change of title and other processes. One delay in any of these can result in costly extra charges.
The functions of a bill of lading were made to be done electronically
In oftentimes convoluted international shipments, the BL is the legal go-to document that facilitates negotiation, lending and risk reduction by performing three key functions:
1. It is evidence of a contract of carriage
2. It confirms receipt of goods
3. It serves as the title to the goods
So, can eBill perform these functions while maintaining the integrity and legality that’s required? The P&I Clubs think so. Today’s top eBill solutions meet these challenges through rule frameworks and advanced security measures — all while providing significant cost and time savings.
eBills can play a pivotal role — and a digital role
Carriers issue the BL, but they rely on information from shippers which may change multiple times during the booking and shipper’s instruction processes. Electronic features like structured documents make creation, approval, distribution, tracking — everything — easier than paper.
This benefits not only the shippers but the carriers, buyers, sellers and banks without having the need to continue to print out paper — which defeats the purpose
Digital does the different types of bill of lading better
There are many types of BL, reflecting the complexities of international trade. Eliminating paper is only the beginning of the ways eBills can help streamline processes related to the two main categories of BL:
Sea Waybills are sometimes referred to as “Express Release.” They have a named consignee on them but are issued without any original documents that have to be presented for the release of the cargo. Non-negotiable and non-transferable, they are usually used in three cases:
Intra-company shipments between divisions located in different countries
Shipments when no negotiations take place between the seller and the consignee
Instances when the shipper doesn’t have to submit an original BL to any party in order to secure their payment
Original BLs have different forms that all hinge on the issuance of original BL documents in some way.
· Order BLs are the most common type of BL. They enable delivery of the cargo to be made “To Order” to the bonafide holder of the BL. These types of BL are negotiable and often linked to letter of credit transactions. Often banks must verify and endorse the original BL before the cargo can be released to the buyer.
Straight BLs stipulate that the cargo may only be released to the specified consignee and only upon the surrender of an original BL.
Open BLs are negotiable and transferable. The name of the consignee can be changed with the consignee’s signature and transferred — often multiple times.
Going Digital assists in filling out the bill of lading
With shippers providing the majority of the information for a BL, completeness and correctness is crucial. eBills help guide the way. If shippers can provide bill of lading information digitally, there’s less risk of keying errors. Form fields and autofill features all speed the process and lead to time savings.
One of the challenges of going paperless with BLs from the very beginning is standards. Adhering to set data standards makes information useful for different parties within organizations and multiple supply chain partners and it enables seamless workflows from automation. Unfortunately, standards are far from being standard today.
Digital makes the information included in a BL more useful
Users look to the bill of lading as an infallible source of essential and comprehensive information like names and addresses, purchase orders or reference numbers, special delivery instructions, pickup date, description of items, packaging type, NMFC freight class and DOT hazmat designations.
eBills of lading can make this information highly transparent to supply chain partners who can use it. But like many of the benefits of eBills, this transparency hinges on adoption — if all the participants of the supply chain are rowing together digitally, it works. If not, it just makes for another manual process that may end up being even more work than paper.
With its centrality to supply chains and essentiality to digitizing global trade, it’s easy to understand why the industry has its sights set on digitizing this important document. But acceptance of the eBill remains both the goal and the greatest challenge today. That’s why getting the eBill to catch on will require successfully digitizing the entire process for eBills, too.
TradeLens, with its relationships with the world’s largest ocean carriers, is in a unique position to explore the digitization of this process at an unprecedented scale. Within an ecosystem where there’s already widespread acceptance, the potential of the eBill could finally be revealed.
Here are seven ICC digital initiatives that will prepare business for the future of global trade:
1). TradeTrust facilitating ICC TradeFlow
During the World Economic Forum Annual Meeting in Davos, ICC joined the Singapore Government and major firms from key industries to launch TradeTrust, a public-private partnership that uses blockchain technology to digitalize global trade. The TradeTrust framework allows for interoperability across different trade platforms for the exchange of trade documents on a public blockchain.
ICC TradeFlow, a blockchain platform developed by ICC and Perlin to simplify the trade documentation process for all, was the first project built on the TradeTrust network. The platform, launched by ICC, DBS Bank, Trafigura, Infocomm Media Development Authority (IMDA), Enterprise Singapore, and Perlin, enables businesses to visually map out trade flows, issue instructions to partners, and analyse trade actions in real time.
2). Digital Trade Standards Initiative
The ICC Banking Commission has announced the creation of the Digital Trade Standards Initiative (DSI) to establish open technology standards that will promote interoperability among existing blockchain and technology platforms.
3). Digitalisation in Trade Finance Working Group
ICC’s Digitalisation in Trade Finance Working Group coordinates the ICC Banking Commission’s work related to the digitalisation of global trade, including the Internet of Things (IoT), artificial intelligence, and blockchain.
Formed in 2017, the Working Group evaluated all existing ICC rules for electronic compatibility, leading to the release of the eUCP version 2.0 and eURC version 1.0. In addition, the Working Group conducted a legal survey to understand the rights of third parties under e-Bills of Landing and developed a Digital Trade Roadmap, a communication tool for policymakers engaged in digital trade work.
4). Partnership with Perlin
In May 2019, ICC Secretary General John W.H. Denton AO announced the formation of a technology partnership between ICC and Perlin, a Singapore-based blockchain technology company. As part of this partnership, ICC and Perlin will work in close association to develop innovative blockchain products that will simplify and transform global trade for all.
AirCarbon, Perlin, and ICC at COP25
In recognition of the significant environmental impact of commercial air traffic, ICC, Perlin, and AirCarbon, formed a partnership on the side-lines of COP25 to facilitate carbon credit schemes to reduce worldwide aviation emissions. ICC will work with its global network to pursue adoption of the AirCarbon Exchange, the world’s first blockchain backed trading network for CORSIA compliant carbon credits. CORSIA, International Civil Aviation Organization’s Carbon Offset and Reduction Scheme for International Aviation, was signed in Montreal in 2016 by 191 countries.
Chambers Climate Coalition
The Chambers Climate Coalition is an initiative launched by ICC to mobilise chambers of commerce to take climate action, aligned with limiting global temperature rise to 1.5°C above pre-industrial levels and reaching net-zero emissions by no later than 2050. The Coalition, which was recognised as part of the landmark Climate Ambition Alliance at COP25, aims to reduce the greenhouse footprint from chamber service activities without delay.
Chambers of commerce can use Perlin’s blockchain technology to trace their value chains and implement a more sustainable model for their services to local businesses.
ICC Centre of Future Trade
ICC, Perlin, and Enterprise Singapore, established the ICC Centre for Future Trade in Singapore, an innovation hub for the creation and development of blockchain solutions for business. From the Centre for Future Trade, ICC and Perlin will work together to accelerate the commercial adoption of blockchain technologies for business.
International E-Registry of Ships (IERS)
In collaboration with Perlin and the Singapore Shipping Association, ICC has announced the creation of the International E-Registry of Ships, the world’s first blockchain-backed digital ship registration system. IERS will standardise the international shipping registration and renewal system through the use of digital technology.
ICC’s partnership with Perlin enables ICC’s global membership network with access to Perlin Clarify, a blockchain solution that enables businesses to trace their value chains. Perlin Clarify allows businesses to track their compliance with government regulations, environmental standards, and other industry indicators.
The Incoterms® rules and smart contacts
ICC with support from Perlin is piloting customisable, self-executing digital sales agreements, that incorporate the latest edition of the Incoterms® rules into contracts. The creation of these blockchain-backed Incoterms® rules with smart contracts will help facilitate trade by reducing costs faced by importers and exporters worldwide.
On the side-lines of the World Economic Forum Annual Meeting in Davos, Mr Denton joined Pavan Sukhdev, CEO of GIST and President of the World Wildlife Foundation, to launch two digital platforms that track the environmental impact of business operations for companies of all sizes. The platforms, I360X and SME360X, utilise analytics and global databases to measure the environmental impacts of market goods and services.
With the analytical information provided by these platforms, companies can transition their operations toward a more sustainable model for the future.
6). eATA Carnet
In November 2019, ICC successfully piloted the first ever digital ATA Carnet, a customs document allowing duty- and tax-free movement of goods for up to one year. The project, known as the Mercury II pilot, was initially launched by ICC in 2018 as part of the organisation’s commitment to using digital technology to simplify the trade documentation process.
7). Digital platforms with the World Trade Organization (WTO)
Global Dialogue on Trade
In October 2018, Mr Denton and World Trade Organization Director-General Roberto Azevedo launched the Global Dialogue on Trade digital platform to gather input from policymakers, business leaders, and academia on the future of global trade.
The first series of debates, which concluded in March 2019, resulted in a set of concrete policy recommendations to provide guidance to stakeholders for strengthening multilateral trade.
At the request of the WTO and B20, ICC is responsible for hosting Trade Dialogues, a digital platform connecting stakeholders from around the world to spark discussions among WTO members on critical business issues.
ICC has launched the Digital Trade Standards Initiative (DSI) – a collaborative cross-industry effort to enable the standardisation of digital trade.
The ICC Digital Trade Standards Initiative (DSI) will build on work done by various likeminded initiatives, many of which aim to digitise trade, notably through the development of open trade and technology standards to promote interoperability.
The ICC DSI will promote greater economic inclusion through the development of open trade standards. This will facilitate technical interoperability among the variety of blockchain-based networks and technology platforms that have entered the trade space over the past two years.
“Universal standards will connect existing digital islands and enable market forces to improve customer experience,” said ICC Secretary General John W.H. Denton AO. “As a leading and neutral voice in the industry, it made sense to bring this project under the umbrella of ICC. This will allow the ICC DSI to lead and coordinate efforts in developing standards and protocols to digitise trade.”
The ICC DSI is unique among trade digitisation initiatives due to its collective nature. Too often, digitisation is enacted through bilateral agreements between institutions that require members to run on the same platform. This has resulted in siloed data and bespoke trade and trade finance processes.
“The ICC DSI seeks to coordinate all parties in the standardisation of data formats and processes, rather than duplicate existing efforts. In turn, membership will be open to all organisations across industries and geographies supporting the project’s core mandate, including existing industry associations and initiatives,” explained Steven Beck, Head of Trade Finance at the Asian Development Bank.
The ICC DSI will be supported by seed-funding committed by the Asian Development Bank and the Government of Singapore, in addition to ICC’s support. The ICC DSI will be run as an independent entity out of the recently-established ICC Centre for Future Trade.
“We have seen the tremendous impact of technology in growing businesses and facilitating international trade,” said Gina Lim, Director of Financing Ecosystem Development at Enterprise Singapore. “The ICC DSI will promote greater adoption of technology within the trade ecosystem and facilitate greater inclusiveness for small businesses. We are excited for the establishment of the ICC DSI office in Singapore and look forward to working with our global partners across geographies and sectors.”
ICC anticipates the implementation of a full-time management team, and a global and diverse steering committee to provide guidance and set priorities for the project’s development.
ICC has opened the recruitment process to hire a managing director to lead operations within the ICC DSI, with an official launch event to follow once this first process completed.
This edition’s “Dossier” focuses on how Customs can foster sustainability for people, prosperity and the planet, the WCO’s theme for 2020, and includes a selection of articles on the implementation of Multilateral Environmental Agreements, the role of the Harmonized System, the trade in illegal timber, and tools for logistics planning and supply chain optimization.
The “Panorama” section covers various topics such as internal communication, cultural goods, partnership with express couriers to fight illicit trade, management of e-commerce transactions via blockchains, and measurement of the time required to process imports in order to boost logistic service providers’ efficiency.
You can also read an insightful “Point of View” article on how machine learning can automate the determination of the valuation of goods, as well as an “Events” article containing highlights from the WCO Communication Strategies Conference held in October 2019.
A companion guide in support of increased compliance in the reporting of goods and conveyances (RCG) to Customs, South Africa.
Necessary information for – Air, Sea and Road carriers, vessel’s agents, NVOCCs, freight forwarders, Air and Sea terminal operators, container depot operators, transit shed operators and de-grouping depots. Also, all private software service providers to the trade.
The guide offers easy navigation through –
registration and electronic trading with SARS Customs
the various electronic messages mandated by law, covering import and export movements, across all modes of permissible international transportation
message types for each transaction type
scenarios to facilitate easier understanding across operators in the supply chain on how the various electronic reports are sequenced, ensuring that Customs formulates a comprehensive end-2-end view of a international trade transaction
reference webpages, official notifications, Customs rules and other pertinent information concerning cargo reporting.
All information is hyperlinked to SARS documentation, found on the official SARS website www.sars.gov.za