WCO Data Model 3.11.0 – Online

Unlike the previous versions where the WCO DM was made available on the WCO Members’ website in a downloadable format, version 3.11.0 of the WCO DM is being released on a new publication platform: the WCO DM app. This app interactively displays WCO DM components and aims to enhance the user experience of working with the WCO DM. In so doing, it helps users navigate through different WCO DM data objects, such as classes, data elements and information models, more easily.

The publication of version 3.11.0 in December 2021 marks the culmination of the maintenance process undertaken by the DMPT in its meetings held from September 2020 to April 2021.

In addition to incorporating changes requested by Members through the regular maintenance procedure, version 3.11.0 introduces two new Message Implementation Guides (MIGs) – for implementing the IMO Compendium and WCO-UPU Joint Message Standards.

The MIGs offer practical guidance and additional technical information useful for implementation of the DM, in addition to the semantic definitions available in the Base Information Packages (BIPs) and/or Derived Information Packages (DIPs).

The IMO MIG includes technical information for implementing ship reporting formalities outlined in the Convention on Facilitation of International Maritime Traffic (FAL Convention). This MIG is the result of the joint efforts of the WCO and the IMO in updating the IMO Compendium on Facilitation and Electronic Business.

The UPU MIG contains technical information relating to primary electronic message formats, namely CUSITM, a message for a postal operator to transmit mail item information to its local Customs authority, and CUSRES, a message to respond to a CUSITM message.

In accordance with the Council Decision of December 2020, the WCO DM package published in the DM app is available free of charge to all interested parties, including Members, partner international organizations and private-sector stakeholders. All those interested in accessing the WCO DM will be able to take advantage of the app after accepting the WCO DM use terms and conditions. The app is accessible at http://datamodel.wcoomd.org.

WTO Joint Statement Initiative on E-commerce

The COVID-19 pandemic has highlighted the digital economy’s importance, accelerated the digital transformation and heightened the need for global rules governing digital trade. As Co-convenors of the Joint Statement Initiative on Electronic Commerce, we are committed to responding to this challenge. This initiative will update the WTO rulebook in an area of critical importance to the global economy.

We recognise the importance of the digital economy in post-COVID-19 economic recovery. The digital economy offers enormous opportunities for developing Members and least-developed country (LDC) Members, including by lowering the costs for businesses, particularly MSMEs, to access and participate in global markets. WTO rules and commitments on digital trade can help unlock these opportunities.

In this context, we will continue to drive negotiations towards a high standard and commercially meaningful outcome building on existing WTO agreements and frameworks. We will continue to promote inclusiveness and encourage the participation of as many WTO Members as possible in the negotiations, which were launched in our January 2019 Ministerial statement.

We welcome the substantial progress made to date in the negotiations. We have achieved good convergence in negotiating groups on eight articles – online consumer protection; electronic signatures and authentication; unsolicited commercial electronic messages; open government data; electronic contracts; transparency; paperless trading; and open internet access. The outcomes already achieved in these areas will deliver important benefits including boosting consumer confidence and supporting businesses trading online.

In addition, we have seen the consolidation of text proposals in other areas, including on customs duties on electronic transmissions, cross-border data flows, data localisation, source code, electronic transactions frameworks, cybersecurity, and electronic invoicing, as well as advanced discussions on market access. We will intensify negotiations in these areas from early 2022. We note that provisions that enable and promote the flow of data are key to high standard and commercially meaningful outcome.

Participants in the initiative support the continuation of the multilateral e-commerce moratorium in fostering certainty and predictability for businesses. The co-convenors consider it crucial that the initiative makes permanent among participants the practice of not imposing customs duties on electronic transmissions.

We recognise the importance of supporting the engagement of developing Members and LDC Members in the initiative, including implementation of commitments. We will continue to deepen the discussion, including through a series of roundtables, dialogues and webinars, on capacity building options and support for implementation for developing Members and LDC Members in 2022.

In light of the strong progress that has been achieved to date, the co-convenors will arrange the JSI work programme to secure convergence on the majority of issues by the end of 2022. We will identify opportunities throughout 2022 for Ministers to provide guidance on key issues in the negotiations.

We look forward to working with all participating Members as we intensify the negotiations and work towards a successful conclusion.

The Hon Dan Tehan MP, Minister for Trade, Tourism and Investment, Australia

H.E. Mr HAYASHI Yoshimasa, Minister for Foreign Affairs, Japan
H.E. Mr HAGIUDA Koichi, Minister of Economy, Trade and Industry, Japan H.E. Mr Gan Kim Yong, Minister for Trade and Industry, Singapor
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WCO – 2022 edition of the Harmonized System Nomenclature is now available online.

As of 18 November 2021, the online version of the 2022 edition of the Harmonized System Nomenclature is available through the WCO Website to all HS users.  The HS 2022 edition, as the world’s global standard for classifying goods in international trade, will enter into force on 1 January 2022.

Used by over 200 countries and economic or Customs unions as the basis for their Customs tariffs and for trade statistics, as well as by international organizations such as the United Nations Statistical Division (UNSD) and the World Trade Organization (WTO), the Harmonized System (HS) Convention currently has 160 Contracting Parties, making it the WCO’s most successful instrument to date.

The 2022 edition of the HS Nomenclature includes significant changes with 351 sets of amendments (including some complementary amendments): 77 relating to the agricultural sector; 58 to the chemical sector; 31 to the wood sector; 21 to the textile sector; 27 to the base metal sector; 63 to the machinery sector; 22 to the transport sector and an additional 52 that apply to a variety of other sectors, comprising a total of 1,228 headings identified by a 4-digit code, and 5,612 subheadings identified by a 6-digit code. 

These amendments have been made to update the Harmonized System Nomenclature, taking into consideration public health and safety, protection of society and fight against terrorism, goods especially controlled under various conventions, food security and environment protection, technological progress, trade patterns, and clarification of the HS texts.

Click here for the HS Nomenclature 2022 Edition.

The digital version of the HS 2022 edition is also available for free on WCO Trade Tools, which is the WCO’s new online database platform that encompasses the last five editions of the HS and functionalities to support all those involved in international trade.  The WCO Trade Tools encompasses various free and subscription only tools relating to the classification and valuation of goods, origin determination and the application of preferential rules of origin.

The paper version of the HS 2022 edition can be purchased on WCO’s Bookshop.

Global Trade Braces for a Mini Y2K With Customs Code Overhaul

Picture by Kyle Glen

The following article was published in Supply Lines, Bloomberg

As if the foot soldiers of global trade needed more complications this holiday season, many logistics managers and customs brokers are starting to brace for a mini Y2K moment come Jan. 1.

That’s when changes will take effect to the official nomenclature for hundreds of product groups used to classify imports and exports. So-called Harmonized System numbers — known as HS codes — exist on more than 5,000 product categories developed by the World Customs Organization, an intergovernmental group in Brussels that updates them every five years or so.

In 2022, the biggest changes are coming for electrical machinery and parts, wood, textiles, fish and organic chemicals.

More than 350 global HS codes are getting updated, and some 1,500 harmonized U.S. tariff codes are subject to revisions, according to a recent webinar from Flexport. The categories are important, if a little wonky, because most items of international commerce fall into one and they can determine tariff levels.

Some codes are disappearing. After a respectable run through the 1970s and ‘80s, answering machines are about to lose their HS code. Made obsolete by voicemail, they rank 5,296th among 5,832 U.S. imports this year, according to Flexport data.

Globes — those spinning spheres that taught geography to schoolkids of the 1970s — will have their number (4905.10) retired, too.

“The trade in globes is not quite what it used to be,” Marcus Eeman, a global customs manager with Flexport, lamented about the U.S.’s 4,025th-biggest import.

Chemical Weapons?

Some new HS codes will appear, like one for pomace oil, a lower-grade form of olive oil.

Among the more intriguing additions, Flexport says there’ll be a “new code created for petroleum resins and other organic chemical compounds used in the manufacture of chemical weapons.” That should make it easier for authorities to track which countries are importing it and potentially using them illegally.

Other categories are getting renamed. Lamps will no longer fall under “lamps,” they’ll be classified as “luminaires.” There will be new subheadings for popular gadgets like smart phones, high-speed digital cameras and flat panel displays.

Economies preparing for the changes include the U.S., China, the European Union, Canada and Australia. The U.K., meanwhile, is still “finding their footing with Brexit and we expect them to get their act together by the end of the year,” Eeman said.

For all the changes to take effect on Jan. 1 in the U.S., there will need to be a presidential proclamation published in the Federal Register with the required 30 days of advanced notice.

So it’s worth looking out for that in coming days.

“My fear is that Dec. 1 will come and the presidential proclamation will be published and that’s when people will start to scramble,” said Tom Gould, Flexport’s vice president of global customs. “Then Jan. 1 will hit and you’ll have a bunch of people that have products that they need to import but they don’t know the classification, because the code that they’ve used in the past is no longer a valid code.’’

Source: Bloomberg, authored by Brendan Murray, 24 November 2021

UNECE eTIR – Turning Borders into Bridges

The United Nations Economic Commission for Europe (UNECE) administers the TIR Convention, which was established in 1959 and extensively revised in 1975 and which has, at present, 68 Contracting Parties. The TIR Convention provides for an internationally recognized procedure to facilitate the cross border transportation of goods in transit through the use of a standard, internationally recognized Customs document, the TIR Carnet, which also serves as proof of existence of an internationally valid guarantee.

For many years the TIR Convention proved to be an efficient facilitation tool. However, with the progress in technology, the use of the paper TIR Carnet is increasingly becoming archaic, in particular when it comes to linking it to the electronic procedures applied by national Customs administrations. At each border crossing, Customs officers are faced with additional work of having to key in up to 50 data elements into their national electronic Customs system. In addition, the current situation does not enable Customs authorities to effectively apply risk management procedures based on advance cargo information, as demanded by an increasingly more security-conscious environment.

The eTIR Project

The Contracting Parties to the TIR Convention launched in 2003 the so-called “eTIR Project”, aimed at providing an exchange platform for all actors (Customs authorities, holders, guarantee chains) involved in the TIR system, known as the “eTIR international system”. The eTIR international system aims to ensure the secure exchange of data between national Customs systems related to the international transit of goods, vehicles or containers according to the provisions of the TIR Convention and to allow Customs to manage the data on guarantees, issued by guarantee chains to holders authorized to use the TIR system.

For more information on eTIR click here!

For more information about eTIR Specifications click here!

For the eTIR flyer click here!

5th WCO Global AEO Conference opens in Dubai

On 25 May 2021, the WCO Secretary General, Dr. Kunio Mikuriya, welcomed approximately 3,650 registered participants from 160 WCO Member administrations to the 5th WCO Global AEO Conference. The Conference is being hosted by Dubai Customs and the Federal Customs Authority (FCA) of the United Arab Emirates (UAE), with support from the Korea Customs Service. 

Under the theme “AEO 2.0: advancing towards new horizons for sustainable and secure trade”, the Conference brings together 80 prominent speakers from Customs administrations, international organizations, academia and the private sector who are engaging virtually to share collaborative input that will help shape the future of Authorized Economic Operator (AEO) programmes. This is the first time that the Global Conference has been organized in the WCO’s North of Africa, Near and Middle East region. 

The Conference was opened by His Excellency Sultan Ahmed Bin Sulayem, Chief Executive Officer of DP World and Chairman of the Ports, Customs & Free Zones Corporation, on behalf of His Highness Sheikh Ahmed Bin Saeed-Al Maktoum, President of Dubai Civil Aviation Authority and Chairman and Chief Executive of the Emirates Group. He delivered an inspiring message on the importance of innovation and collaboration among Customs and other government agencies (OGAs) to support resilient recovery for global supply chains. He congratulated the WCO for providing the international community with a discussion platform on topical issues of interest and highlighted the need for renewed trust and commitment to preserving sustainable and secure trade. 

In his welcome address, Dr. Mikuriya highlighted that in the 16 years since the SAFE Framework of Standards (FoS) was first adopted, the number of WCO Members implementing AEO programmes had increased substantially, from 45 to 97, while the number of Mutual Recognition Arrangements/Agreements had risen exponentially from 17 to 91. Dr. Mikuriya underlined that this demonstrates not only the success of the SAFE FoS but also the importance of monitoring implementation of AEO programmes. 

Secretary General Mikuriya offered food for thought regarding the possible next steps to ensure that AEO programmes more effectively support supply chain recovery as the world moves into a post-COVID-19 pandemic environment. These steps may include ways of inviting more economic operators to take part in AEO programmes, strengthening cooperation between Customs and OGAs, and leveraging disruptive and transformative technologies for the benefit of AEO programmes. Finally, consideration should be given to the role played by training and capacity building in making the AEO concept a key tool at the centre of resilient and sustainable supply chain recovery.

Dr. Mikuriya also commended Dubai Customs and the FCA for their strong commitment and generous support towards making this event an immense success. He further acknowledged the backing provided by regional entities as well as other partners, sponsors and exhibitors, who have all contributed to ensuring that this event will be a remarkable and memorable experience for all.

During his opening remarks, His Excellency Ahmed Mahboob Musabih, Director General of Dubai Customs, said that this Conference provided the UAE with the perfect forum for sharing information on innovative work pushing the boundaries of Customs. He added that it would be an opportunity for everyone to learn more about Dubai’s experience of building up Customs to form one of the pillars of the Emirate’s development and prosperity.

The Conference will continue on 26 and 27 May with discussions on topics including emerging supply chain security threats; the role of technologies in promoting supply chain renewal; risk management; best practices; and partnership and capacity building activities. 

More information can be found on the event website

MSC Introduces New Electronic Bill of Lading for Customers Worldwide Using WAVE BL’s Platform

MSC Mediterranean Shipping Company, a global leader in container shipping and logistics, is officially introducing the electronic bill of lading (eBL) for its customers around the world, following a successful pilot phase, using a solution on an independent blockchain platform WAVE BL. The eBL enables shippers and other key supply chain stakeholders to receive and transmit the bill of lading document electronically, without any change or disruption to day-to-day business operations.

WAVE BL is a blockchain-based system that uses distributed ledger technology to ensure that all parties involved in a cargo shipment booking can issue, transfer, endorse and manage documents through a secure, decentralised network. Users can issue all originals, negotiable or non-negotiable, and exchange them via a direct, encrypted, peer-to-peer transmission. It’s also possible for users to amend documents. WAVE BL’s communication protocol is approved by the International Group of Protection & Indemnity Clubs, and meets the highest industry standards for security and privacy.   

“MSC has chosen WAVE BL because it is the only solution that mirrors the traditional paper-based process that the shipping and cargo transportation industry is used to,” says André Simha, Global Chief Digital & Information Officer at MSC. “It provides a digital alternative to all the possibilities available with traditional print documents, just much faster and more secure.”

The WAVE BL platform can be used free of charge throughout 2021 for exporters, importers and traders. Users only pay for issuing the original documents, and they do not need to invest in any IT infrastructure or make operational changes in order to use the service. They can simply sign up via MSC’s website: www.msc.com/eBL.

Source: Mediterranean Shipping Company, 28 April 2021

EU – Import Control System 2 (ICS2)

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!

Source: European Union

ICC and Partners Launch eTradeHub

The International Chamber of Commerce (ICC) in partnership with West Blue Consulting, United Parcel Services (UPS), Trade Law Center (TRALAC) have officially launched the eTradeHubs portal, http://www.etradehubs.com.

The eTradeHubs portal is a one-stop for Trade Tools, Information & Collaboration which aims to reduce the time and cost of doing business by supporting businesses at all levels of maturity – the micro enterprise to the multinational.

Features

The portal which was virtually launched last week Thursday has features such as a multi country Tariff and Trade Information Tool and a Duty Calculator.

A first-time trader or existing trader wishing to import raw materials or export finished goods, can search on the portal.

The Duty Calculator further provides an estimate of the customs duty, tax and levies of the destination region or country to aid in financial and logistical planning.

eTradeHubs also provides a Trade Management Tool. Equipped with accurate trade information, the trader can proceed to transact, by generating trade compliant documentation, manage compliance, workflow and costs – all on the same platform, without the need to visit multiple regulatory agencies, entities, websites and physical offices as done previously.

The portal currently provides country data on Ghana, Kenya, Nigeria, South Africa, Zambia and the ECOWAS sub region, with more countries and sub regions to be introduced in support of the Digitise 5 million African SMES initiative.

CC, UPS, Tralac, and West Blue Consulting through a Memorandum of Understanding (MOU) announced a partnership to support women-led small and medium-sized enterprises (SMEs) in Africa.

The partners will offer capacity building programmes and tools, including co-developed trade and information portals called “e-Trade Hubs,” advocate for enabling public policy, and create electronic guidelines to help women entrepreneurs scale-up and digitise their businesses.

COVID-19

The Secretary General of ICC, Mr John W.H. Denton AO in his remarks said the economic, social, and health consequences associated with the COVID-19 pandemic had unequally impacted the lives and livelihoods of women business owners everywhere. 

“We are extremely proud to partner with UPS, Tralac, and West Blue Consulting to level the playing field in Africa and provide women entrepreneurs with the required resources to digitise their businesses. Women-led businesses are the backbone of their local economies – we can’t afford to leave them behind,” he added,

The CEO and Founder of West Blue Consulting,  noted that “The adoption of solutions by women in business and trade, will ensure benefits such as an increased ability for women to work from home whilst raising families; improved global market access, employment opportunities and a shift of women from the informal sector to the formal.

“The portal will provide a 24/7 collaborative space where women traders and entrepreneurs in the African Continental Free Trade Area (AfCFTA) and of course their male peers can connect and access timely and up to date information, skills and operational tools, offered by various providers”, she added.

Information

Ms Mintah expressed delight to partner with ICC, UPS and TRALAC to provide the needed skills training, trade information and tools via the eTradeHubs portal http://www.etradehubs.com.

President of UPS, Ms Penny Naas, the International Public Affairs & Sustainability said “Research shows that only 1 out of 5 businesses that exports is led by a woman. At UPS, we’re moving our world forward by helping women-run businesses maximize their participation in trade through public-private partnerships that provide policy recommendations and support with knowledge sharing and building skills”.

 Executive Director of Tralac, Ms Trudi Hartzenberg, said the adoption of digital trade solutions for the AfCFTA would address many border management challenges that disproportionately impact women traders.

Source: GraphicOnline, 11 March 2021

WCO – The full E-Commerce Package is now available online

Picture courtesy – Unsplash

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).

For more information please visit http://www.wcoomd.org/en/topics/facilitation/instrument-and-tools/frameworks-of-standards/ecommerce.aspx

Data is King!

Two recent articles reaching my desk reiterate the importance of clean and standardised Customs data. Without this, any real benefits to be derived from the latest and future technologies will not be fully achieved. Downstream, a country’s economy depends on this data for accurate analysis, forecasting and policy-making. Similarly, the business community relies on accurate information to assist in better business and investment decisions.

During the 15th PICARD Conference held during 23-26 November 2020, ‘World Customs Journal Special Edition’ was introduced. The first paper of the special edition is based on the keynote speech which was given at the 14th PICARD Conference in October 2019 titled “Data Science: Policy Implications for Customs”.

The paper referred to is titled –

“If algorithms dream of Customs, do customs of cialsdreamofalgorithms?A manifesto for data mobilisation in Customs

The Abstract of the document reads as follows –

“Governance by data is a growing global trend, supported by strong national public policies whose foundation is open data, artificial intelligence and decision-making supported by algorithms. Despite this trend and some technical advances, Customs face obstacles in deploying ambitious data use policies. This article describes these challenges through recent experience in some Customs administrations and considers the technical and ethical issues speci c to all law enforcement agencies in the context of customs missions, to open paths for research and propose policy recommendations for a better use of customs data.”

The second matter is perhaps more directed towards Africa. TRALAC Newsletter, of October 2002 titled “Trade and Related Matters discusses the importance of data, specifically now with the introduction of the African Continental Free Trade Area (AfCFTA) in January 2021.

The article considers more than just Customs trade data relating to goods. It envisages trade in services data as just as important to ensure a holistic approach –

“Trade-related data includes not only recorded values and volumes of goods trade among countries, but also data on services trade, non-tariff measures and barriers, tariffs, informal trade, trade restrictiveness, macro-economic conditions (like gross domestic product), micro-economic data (industry/firm-level data including employment, sales, profits and prices) and investment. This data is utilised by governments to make public policy decisions including the formulation of industrial, agriculture, trade and economic growth policies, strategies and regulations; trade negotiations strategies; merger and acquisition reviews; assessments of anti-competitive practices and determinations in trade remedy cases and applications for changes in tariffs. Businesses use trade information, such as tariffs in destination markets, applicable non-tariff measures, transportation costs and trade restrictiveness in combination with macro-economic indicators, firm-level data and market information to make investment, trade and market development decisions, and also to lodge trade remedy and tariff review applications and to inform their participation in public-private forums.”

The Newsletter continues to explain the notable improvements in data and reporting oer the last decade –

“Although trade and trade-related data has various uses, it needs to be useful, reliable and accurate information which is publicly available (except in the case of confidential information). This is the area where most African countries have historically fallen short although there has been some significant progress over the last decade. Initially, African trade data was only available on subscription databases and only for a select number of countries (like South Africa, Kenya and Egypt) and limited to trade in goods. There was a lack in published tariff schedules and data pertaining to non-tariff measures, investment, informal trade and services. In recent years, the availability of some data has improved significantly, especially for goods trade.

  • African countries are now increasingly publishing their statistics on websites of national statistics authorities and notifying their national data to the United Nations (UN). This data includes data on formal goods trade, aggregate services trade, non-tariff measures, tariffs, investment and some market information. The quality of the data has also improved as most countries now extensively verify the data prior to publication and submission. Increased access enables organisations like the World Bank, the World Trade Organisation (WTO) and International Trade Centre (ITC) to obtain, collate and publish trade data in databases like the ITC TradeMap and MacMap and the WTO trade portal.
  • As part of the implementation of the WTO Trade Facilitation Agreement, many countries are establishing trade portals. Southern and eastern African countries that already have functioning portals include Seychelles, Eswatini, Kenya, Rwanda and Uganda. Some portals contain detailed information on import and export requirements by specified product, sanitary and phytosanitary requirements, port of entry and applicable tariffs. The trade portals of countries in east Africa, including Uganda and Rwanda provide details of import or export processes including the trade costs such as inspection charges, and indicate the waiting time to complete the different steps.
  • Once fully operational, the African Trade Observatory (ATO) will contribute significantly to the availability of African trade data and capacity building. The ATO will collect and analyse trade and trade-related qualitative and quantitative data and information, establish a database for African trade; monitor implementation and evaluate the implementation process and impact of the AfCFTA and the Action Plan for Boosting Intra-Africa Trade (BIAT); and equip national governments and businesses to analyse and use of trade and related data.
  • There is increasing awareness of the effect of non-tariff barriers (NTBs) on intra-Africa trade. More information is available in the public domain through industry/product/sector studies, the trade cost database of the World Bank and the online non-tariff barrier mechanisms of the COMESA-EAC-SADC Tripartite Free Trade Area, the Borderless Alliance (west Africa) and the new AfCFTA mechanism.
  • Informal trade is recognised as a major component of intra-Africa trade and this is not captured in formal trade statistics. There are a number of initiatives to gather data on informal cross-border trade (ICBT), including studies by UNECAand ongoing work by the Bank of Uganda which has been conducting surveys and reporting ICBT data since 2005.

Although there have been improvements in intra-Africa trade data, there is room for improvement.”

USA & Singapore – Letter of Intent to Explore Single Window Connectivity

U.S. Customs and Border Protection (CBP) and Singapore Customs signed a historic letter of intent today that will enable closer cooperation in the areas of trade facilitation, revenue protection and risk management.

Executive Assistant Commissioner for the Office of Trade Brenda Smith signed the letter of intent in Washington, DC on behalf of CBP and Deputy Director-General Lim Teck Leong signed the letter of intent in Singapore on behalf of Singapore Customs.

The Letter of Intent to Explore Single Window Connectivity between Singapore’s Networked Trade Platform (NTP) and the U.S. Automated Commercial Environment (ACE) formalizes the United States’ and Singapore’s commitment to sharing trade data and to exploring the possible connection of the two countries’ national Single Windows for trade facilitation. Single Windows are electronic systems that automate and expedite the processing of import and export data by allowing traders to input standardized information in a single entry point to fulfill all import and export requirements. In doing so, Single Windows reduce costs, enhance accountability and improve collaboration among government agencies and the trade community.   

“We value the opportunity for transparency and cooperation that a shared Single Window will bring,” said Executive Assistant Commissioner Smith. “Government-to-government data sharing is rapidly becoming an important component of efficient and secure trade, and CBP looks forward to working with Singapore Customs on this forward thinking approach to trade facilitation.”

“The signing of this letter of intent signifies the first step towards trade data connectivity between the two Customs administrations, and reinforces our commitment to maintain the security of international supply chains, while facilitating legitimate trade,” said Deputy Director-General Lim. 

The letter of intent follows the successful negotiation of the U.S.-Singapore Free Trade Agreement in 2004 and builds on the Authorized Economic Operator-Mutual Recognition Agreement and the Customs Mutual Assistance Agreement concluded by CBP and Singapore Customs in 2014. These efforts support the principles, standards and objectives of the World Customs Organization Framework of Standards to Secure and Facilitate Global Trade.

The collaboration between CBP and Singapore Customs complements the United States’ continued engagement with the Association of Southeast Asian Nations (ASEAN) Single Window Steering Committee on trade facilitative data exchange and Single Window connectivity/interoperability. Singapore is an active member of ASEAN and the ASEAN Single Window. 

In 2019, two-way trade in goods between the United States and Singapore totaled $57.6 billion, making Singapore the United States’ 17th largest trading partner and its second-largest trading partner in ASEAN. 

Source: US Customs and Border Protection, 10 November 2020

TradeLens – Youredi to offer data connectivity services between supply chain entities

Building on the TradeLens network connectivity Youredi has provided since 2018, 3PLs, shippers and cargo owners can now use their software integration services to connect quickly and flexibly to the TradeLens platform. The Youredi Integration service, is an offering that integrates seamlessly and easily with a wide variety of TMS, ERPs and other supply chain and logistics applications, whether on premise or cloud-based.

Permissioned data sharing across the maritime industry, improving the speed of data connectivity between different stakeholders, plus the need to digitalize and automate workflow processes has been a pain point for the industry for decades.

Youredi will support BCOs, 3PLs, carriers, freight forwarders, ports and terminals, authorities, customs brokers, and any other stakeholders to connect with the TradeLens platform rapidly with a predictable cost, effort and time commitment. Connecting different stakeholders with the platform will create a more transparent container shipping industry in which all parties can collaborate and trust each other.

The Youredi solution takes care of the data translation, so you can always send and receive data in your preferred data standard or format. The solution can work both with structured (rich data) and unstructured (PDFs, scans, images) data. Whenever required, Youredi can also provide data validation and data enrichment logic.

More information about the service available at Youredi TradeLens Connectivity.

Source: TradeLens

HMRC – Border Operating Model with the EU

From 1 January 2021, the transition period with the European Union (EU) will end, and the United Kingdom (UK) will operate a full, external border as a sovereign nation. This means that controls will be placed on the movement of goods between Great Britain (GB) and the EU.

The UK Government will implement full border controls on imports coming into GB from the EU. Recognising the impact of coronavirus on businesses’ ability to prepare, the UK Government has taken the decision to introduce the new border controls in three stages up until 1 July 2021.

Her Majesty’s Revenue & Customs (HMRC) published the first iteration of the Border Operating Model in July 2020, setting out the core model that all importers and exporters will need to follow from January 2021 as well as the additional requirements for specific products such as live animals, plants, products of animal origin and high-risk food not of animal origin. We also provided important details of Member State requirements as traders and the border industry will need to ensure they are ready to comply with these, and not just Great Britain (GB) requirements. Indeed, as set out in the recently published ‘Reasonable Worst Case Scenario’ assumptions, it is largely the level of readiness for Member State requirements which will determine whether there is disruption to the flow of goods at the end of the transition period. This is why we have included additional signposting to those requirements throughout the document, and are encouraging all GB businesses not just to ensure their own readiness but also the readiness of EU businesses to whom they export, and throughout their supply chains.

Since July, the HMRC has worked closely with industry to further develop plans for the end of the transition period, and also to respond to industry questions since the publication of the first iteration of the Border Operating Model. This latest iteration of the Border Operating Model provides additional information in a number of key areas as set out below as well as clarifying a number of questions from industry.

You can access the HMRC Border Operating Model here.

UN Special Recommendation No.33 – Guidelines for Single Window : 2020 Edition

In many countries, companies involved in international trade must prepare and submit large volumes of information and documents to governmental authorities to comply with import, export and transit-related regulatory requirements. Often, this information and documentation must be submitted to several different agencies, each with their own specific (manual or automated) systems and paper forms. These extensive requirements, together with their associated compliance costs, can constitute a serious burden to both Governments and the business community and represents a serious barrier to the development of international trade.

One approach to addressing this problem is the establishment of a Single Window federating all relevant government administrations whereby all trade related information and/or documents need only be submitted once at a single entry point. This can enhance the availability and handling of information, expedite and simplify information flows between trade and government and can result in greater harmonization and sharing of the relevant data across governmental systems, bringing meaningful gains to all parties involved in cross-border trade. The use of such a facility can result in the improved efficiency and effectiveness of official controls and can reduce costs for both Governments and traders due to better use of resources.

The Single Window is therefore a practical application of trade facilitation concepts meant to reduce non-tariff trade barriers.

Download the Guidelines here!

Source: United Nations