Category / UN/Edifact

by Mike Poverello

International Customs Day 2022

The WCO dedicates 2022 to the Scaling up Customs Digital Transformation by Embracing a Data Culture and Building a Data Ecosystem

Traditionally, every year, the Customs community comes together on 26 January to mark International Customs Day. This day of celebration is a unique opportunity for WCO Members, the WCO Secretariat and global Customs’ partners to reflect on a particular theme and to act upon it. 

Thus, throughout 2022, under the slogan “Scaling up Customs Digital Transformation by Embracing a Data Culture and Building a Data Ecosystem”, the Customs community will be focusing on how to operate in a fully digital environment and create an operating model that captures and exploits data from across the trade ecosystem.

Over the years, digital technology has evolved rapidly and Customs can now tap into data from other government agencies, commercially available databases, and open-source information platforms such as digitized global public records and multilingual news sources. 

The extent to which data can be used effectively depends on various factors surrounding data ethics, including privacy, commercial secrecy and legal issues regarding the use of data by Customs and Tax administrations, and the importance assigned to innovation in public administrations. 

To build data ecosystems, or consolidate existing ones, the following enabling actions may be considered:

  • establishing formal data governance to ensure the relevance, accuracy and timeliness of data;
  • making use of the standards developed by the WCO and other institutions regarding data format and data exchange;
  • providing appropriate management of data to ensure that the right people have access to the right data, and that data protection regulations are respected; and,
  • adopting progressive approaches, such as data analytics, to collect and successfully exploit data to drive decision-making.

A robust data culture empowers people to ask questions, challenge ideas and rely on detailed insights, not just intuition or instinct, to make decisions.

In order to nurture a data-driven culture, administrations need to enhance the data-literacy of their staff – in other words, their ability to interpret and analyze data accurately. 

Customs administrations should integrate data science into their curriculums for newly recruited officers and participate in the development of distance learning courses to familiarize Customs officers with the collection and analysis of data in order to forge a data-driven culture. Staff also need to understand the bigger picture, namely the impact of Customs on the effective protection of society, trade facilitation and fair revenue collection. 

On the other hand, Customs administrations are invited to consider leveraging data in their relationships with other actors along the supply chain, as well as making data available to the public and academia as a means of enhancing transparency, stimulating the production of knowledge and enabling dialogue with civil society.

Sharing data analysis with other government agencies increases the role and visibility of Customs in policy-making and in obtaining necessary resources, including donor funding. Disseminating Customs data and information in society is part of governments’ response to the general demand for open governance.

To support Customs administrations, the WCO Secretariat has placed data-related topics on the agendas of several committees and working groups, organized awareness-raising seminars, developed e-learning modules, drafted a Capacity Building Framework for Data Analytics which was adopted by the WCO Council in December 2020, issued practical publications and published articles in the WCO News Magazine.

Moreover, a community of experts has been established, under the name of BACUDA (BAnd of CUstoms Data Analysts), which brings together Customs and data scientists with the objective of developing data analytics methodologies. 

The Secretariat will continue to investigate ways to collect and share data on Customs administrations with a view to enhancing the way it delivers capacity building, and will continue to undertake data-driven assessments and work with international experts to respond to assistance requests.

More measures will be presented in the WCO Data Strategy that the WCO Secretariat is currently working on. The ambition will be to make data a vernacular language among Customs administrations and between the WCO Secretariat and WCO Members. The road ahead is not an easy one, there will inevitably be challenges along the way, but as we have learned during the COVID-19 pandemic, the Customs community is united, stronger and more resilient in the face of adversity. 

Dr. Kunio Mikuriya

WCO Secretary General

26 January 2022

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by Mike Poverello

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.

by Mike Poverello

Harmonised Message Structures for International Forwarding and Transport Messages on the way

NEWS From the GEFEG Blog –

UN COVID-19 project to support data exchange for international supply chain processes

The emergence of COVID-19 has shown an increased demand for coordination, efficient planning, modelling and risk control in many areas. The United Nations Economic Commission for Europe (UNECE) and its trade related United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) are strongly supporting multilateral engagement for interoperable cross-border standards, such as UN/CEFACT Data exchange Standards.

Multi-Model Transport Reference Data Model Ready for use

Many current regulations, standards, instructions and business capacity-building measures are available already. The comprehensive Multi-modal Transport Reference Data Model (MMT RDM) covers the requirements of international forwarding and transport, including related trade, insurance, customs and other regulatory documentary requirements based on the integration of trade facilitation best practices, developed by UN/CEFACT.

COVID-19 Project lead by GEFEG: Development of a standardised data set for the Transport sector

On behalf of the UN, GEFEG provides the project lead for the COVID 19 project. The project concentrates on ensuring the flow of goods and the transport across the various transport modes. Its overall objective is to set up a multi-modal harmonized set of mainly transport documents as a profile of the UN/CEFACT Multi-modal Transport Reference Data Model (MMT RDM).

The data sets developed include seven electronic exchange messages such as Booking Instruction, Shipping Instruction, Waybill, Bill of Lading, Packing List, Status Messages, Rapid Alert Security Food and Feed (RASFF) and their Business Requirement Specifications (BRSs). It has been checked that every data element with the same name also has the same semantic meaning.

The new profile of the MMT RDM will build a bridge to the already existing electronic exchange formats and allow a better use of state-of-the-art technologies such as block chain and APIs regarding the different transport modes.

Focusing on the different transport modes in the next phase

Additional information will be collected in the next phase, with a stronger focus on the different modes of transport. Results will be reported back to the Multi-modal Transport RDM and change processes initiated regarding relevant yet missing information in the MMT RDM. And last but not least, profiles of the MMT for the different modes of transport, such as air, rail, road, and maritime will be published.

Michael Dill, CEO of GEFEG is looking forward to welcome further participants in the project: “It will be important to get advice and hints on any missing data requirements across the various modes of transport! I would like to encourage colleagues involved in transport processes to join the next phase of the project. Your valuable input and expert knowledge would be very much appreciated.”

Interested parties wishing to participate in the project should contact info@gefeg.com with subject detail: New Participant in COVID-19 project.

Source: GEFEG News Blog, dated 16 September 2020

by Mike Poverello

WCO-IMO Partnership for maritime digitalization to support flow of trade by ship

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.

Source: WCO, 14 May 2020

by Mike Poverello

SAD Story – Part 2

What is clear in regard to modern day business is the fact that ‘harmonisation’ in the international supply chain is essentially built around ‘data’. E-commerce has been around for decades, plagued by incompatibilities in messaging standards, and computer software, network and hardware architecture. However, one of the key inhibitors has been organisations and administrations having to adhere to domestic ‘dated’ legislation and so-called standard operating procedures – seemingly difficult to change, and worst of all suggesting that law has to adapt!

A lot has had to do with the means of information presentation (format) and conveyance (physical versus electronic) rather than the actual information itself. Standards such as the UN Layout key sought to standardise or align international trade and customs documentation with the view to simplifying cross-border trade and regulatory requirements. In other words, each international trade document being a logical ‘copy and augmentation’ of a preceding document.  This argument is still indeed valid. The generally accepted principle of Customs Administrations is to maximise its leverage of latent information in the supply chain and augment this with national (domestic) regulatory requirements – within a structured format.

The Single Administrative Document (SAD) was itself borne out of this need. The layout found acceptance with UNCTAD’s ASYCUDA which used it as a marketing tool (in the 1990’s) in promoting ‘What-You-See-Is-What-You-Get’ (WYSIWYG). It certainly provided a compelling argument for under-developed countries seeking first-time customs automation. Yet, the promise of compatibility with other systems and neighbouring customs administrations has not lived up to this promise.

Simultaneous to document harmonisation, we find development of the Customs data model, initially the work of the Group of 7 (G7) nations at the United Nations. Its mandate was to simplify and standardize Customs procedures Customs procedures. In 2002, the WCO took over this responsibility and after further refinement the G7 version became version 1 of the WCO Customs Data Model. Once more a logical progression lead to the inclusion of security and other government regulatory requirements. This has culminated in the recent release of WCO Data Model 3. Take note the word “Customs” is missing from the title, indicating that Version 3 gives effect to its culminating EDI message standard – Government Cross Border Regulatory (GOVCBR) message – an all inclusive message standard which proposes to accommodate ALL government regulatory reporting requirements.

Big deal! So what does this mean? The WCO’s intent behind GOVCBR is as follows –

  • Promoting safe and secure borders by establishing a common platform for regulatory data exchange enabling early sharing of information.
  • Helping co-operating export and import Customs to offer authorized traders end end-to to- end premium procedures and simple integrated treatment of the total transaction.
  • Contributing to rapid release.
  • Elimination redundant and repetitive data submitted by the carrier and the importer.
  • Reducing the amount of data required to be presented at time of release.
  • Reducing compliance costs.
  • Promoting greater Customs Co-operation.

Undertaking such development is no simple matter, although a decision in this direction is a no brainer! Over a decade’s work in the EDI space in South Africa is certainly not lost. Most of the trade’s electronic goods declaration and cargo reporting requirements remain intact, all be they require re-alignment to meet Data Model 3 standard. Over and above this, the matter of government regulatory requirements (permits, certificates, prohibitions and restrictions, letters of authority, etc.) will require more ‘political will’ to ensure that all authorities administering regulations over the importation and exportation of goods are brought into the ‘electronic space’. Some traction is already evident here largely thanks to ITAC and SA Reserve Bank willingness and capability to collaborate. In time all remaining authorities will be brought on board to ensure a true ‘paperless’ clearance process.

So, I digress somewhat from the discussion on the SAD. However, the bottom line for all customs and border authorities, traders and intermediaries is that ‘harmonisation’ of the supply chain operation follows the principal and secondary data required to administer ALL controls via a process of risk assessment, to facilitate release including any intervention required to ensure the compliance of import and export goods. As such even legislative requirements need to enable ‘harmonisation’ to occur otherwise we end up with a non-tariff barrier, uncertainty in decision-making, and a business community unable to capitalise on regional and international market opportunities. Positively, the draft SA Customs Control Bill makes abundant reference to reporting – of the electronic kind.

In Part 3, I will discuss regional ‘integration’ and the desire for end-to-end transit clearance harmonisation.

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by Mike Poverello

Mandatory EDI Submission – SARS engages Cargo Manifest Providers

Some 8 years since the initial implementation of the Manifest Acquittal System (MAS), SARS has recently engaged cargo manifest providers with a fresh urgency to prepare themselves for the impending mandatory requirements for the filing of cargo reports to Customs. The legislation has been in place for several years and a fully revamped cargo management system has since been developed by SARS. Cargo Reporters (shipping lines, airlines, ships agents, terminal operators, freight forwarders, consolidation/deconsolidation agents, depot operators, ground handling agents) are now called upon to ensure that their systems are able to meet the cargo reporting requirements of SARS. (The EDI Mapping requirements for CUSCAR is now available on the SARS website).

The first imperative is to ensure the integrity of data reported to SARS. Once this is at a satisfactory level, SARS will commence the matching of cargo and customs clearance information. Not unlike other customs jurisdictions, the availability of ‘clean data’ from both cargo reporters and declarant’s is imperative to facilitate manifest matching, risk assessment and the release of goods.

A further phase will thereafter introduce measures to ensure that South Africa meets its obligations in terms of the WCO SAFE Framework of Standards. This may require some modification to

  • Data reporting requirements via EDI,
  • Some changes to legislation,
  • Introduction of formal licensing of cargo operators, and
  • Introduction of a seal integrity programme as part of the aforementioned licensing arrangement.

SARS has prioritized air and sea modalities (imports only) for initial implementation, with rail and road modes to follow. The priority not only includes cargo reporting (manifest) requirements but also other reports such as vessel call notifications and advices, discharge lists, gate-in and gate out reports, and cargo outturn reports.

SARS cargo management system will be available for test purposes to all cargo reporters as of 1 March 2011. A period of at least 2 months has been contemplated for such testing, with live implementation occurring in May 2011.

by Mike Poverello

WCO Data Model V.3 available online!

The WCO Data Model 3 is a maximum set of carefully combined and harmonized data requirements derived from cross-border regulation. These requirements are mutually supportive and are updated on a regular basis to meet the procedural and legal needs of cross-border regulatory agencies such as customs, controlling export, import and transit transactions. The WCO Data Model 3 is only available online, by the means of an annual subscription which will enable you to – (a) Have access to a database of knowledge through a FAQ module, and (b) Ask any question directly to the WCO Data Model 3’s Project Managers.

Please visit: http://wcoomdpublications.org/data-model-3.html for pricing and conditions.

by Mike Poverello

The Supply Chain is a Scary Place – World Trade Magazine

The Supply Chain is a Scary Place – THIS MONTH’S ISSUE – World Trade.

by Mike Poverello

Downloads

Please visit the new “Downloads” tab for available documents. In the coming weeks, more specific information in support of the Customs Modernisation Programme will be provided. Please feel free to use this content in a respectable manner, i.e. for training and research purposes.

by Mike Poverello

EDI is Dead – Long Live EDI!

SARS Customs mainstream communication channel with the South African business community has received a major boost, with the installation of a new EDI Gateway. This forms part of SARS’ commitment – relating to increasing demands on its ICT architecture – to meet the rapid increase in B2G (business-to-government) electronic transaction exchanges. Currently for every import, export or cross border declaration transactions, there are a minimum of 2 EDI interchanges per consignment – a Customs declaration message (CUSDEC), and a Customs response message (CUSRES).
Once cargo reports (cargo manifests and cargo notifications) are all being received electronically this average will increase substantially. The future customs clearance process envisages a totally paperless environment. Therefore, any instruction or notification regarding an import or export transaction will need to be handled via electronic messaging between Customs and the Trader. This implies significant more data storage and a reliable network ensuring continuity of business. At present trade declaration (SAD500) volumes are in the region of about 4, 3 million per annum. The need for high-volume / real-time processing is therefore a no-brainer.
The Customs Modernisation Programme (CMP) has undertaken a number of initiatives in regard to maintaining pace with world trends. It is currently reviewing its data models; consolidating import, export and cross border modes; and aligning all its data requirements with the WCO Data Model version 3. Combined with envisaged changes being brought about through the introduction of clearance within Customs Procedures, SARS’s desire is to adequately meet the demands of trade and its accession obligations regarding the WCO Revised Kyoto Convention. In the near future, Customs Response and Cargo Report data requirements will be aligned and consolidated in similar manner. This alignment therefore puts SARS in a position to consider a future migration path – the adoption of the Government Cross Border Regulatory message (GOVCBR).