LIST OF TABLES

      

Table 2.2-1  MTMC, AMC, and MSC Units in Countries of Interest
Table 3.1.2-1  Annexes Accepted by Countries of Interest
Table 3.4.1-1  Customs Messages
Table 3.4.1-2:  Transport (General Transport Messages)
Table 3.4.1-3:  Transport (Container Movement Messages)
Table 3.4.1-4:  Transport (Dangerous Goods Movement Messages)
Table 3.4.1-5:  Transport (Forwarding Messages)
Table 3.4.2-1:  Fair Share Member Countries
Table 3.4.2-2:  Associate Member Countries
Table 3.4.2-3:  Company Members That Pay Dues Directly to PAEB Rather Than Their National Standards Body
Table 3.4.2-4:  PAEB DLTG Message Design Groups
Table 3.4.5-1:  September JM5 Meeting Attendees
Table 3.5.7-1:  IATA Cargo EDI Messages
Table 3.5.7-2:  IATA Border Control EDI Messages

1.0  INTRODUCTION

      

This report was developed to address, in a preliminary manner, the feasibility associated with the development and implementation of a generic electronic foreign customs interface for commercial and military cargo. The countries targeted for the feasibility study are: the United Kingdom (U.K.), the Netherlands, Germany, Saudi Arabia, Hungary, Spain, Italy, South Korea, and Japan. This preliminary document was prepared for the purposes of providing information. The information that is provided will serve as the principal foundation for the final version. The final version will contain a detailed assessment of the compatibility between commercial and military methods and the feasibility of a generic electronic customs interface.

2.0  COMMERCIAL AND MILITARY FOREIGN CUSTOMS ACCEPTANCE PROCESSES

      

This section covers, in a summary fashion, information that has been obtained regarding commercial and military foreign customs acceptance processes within the U.K., the Netherlands, Germany, Saudi Arabia, Hungary, Spain, Italy, South Korea, and Japan. The next subsection summarizes commercial foreign customs acceptance processes for these countries. The subsection after that summarizes military foreign customs considerations. The final version of this document will contain, in addition to these summaries, information on actual military and commercial customs interface implementations for these countries.

2.1  Commercial Foreign Customs Acceptance Processes

A detailed examination of commercial foreign customs acceptance processes for the purposes of establishing a generic electronic foreign customs interface requires detailed information not only on current foreign customs' documentation requirements but also on current customs interface implementations. In this work, information on customs interface implementations is being sought whether it is paper-based or electronic. For this preliminary document, the paragraphs below summarize the information that has been obtained on customs interface requirements for the U.K., the Netherlands, Germany, Saudi Arabia, Hungary, Spain, Italy, South Korea, and Japan. Although the final version of this document will contain details on actual customs interface implementations within these countries, certain subsections within Section 3.0 contain some of the detailed information that has been compiled to date. More detailed information concerning the remaining paragraphs in this subsection can be found in "Overseas Shipment Operating Concepts and Military and Commercial Foreign Customs Interfaces"[1].

Similar documentation requirements exist for transferring goods into all countries researched (i.e., the U.K., the Netherlands, Germany, Saudi Arabia, Hungary, Spain, Italy, South Korea, and Japan). Forms and/or documentation such as commercial invoices, certificates of origin, packing lists, and bills of lading, have similar information content requirements amongst these countries. In terms of high-level requirements, differences exist in the number of original and/or copies needed of each document and/or certificate to successfully process items through customs.

Storage facilities and duration of storage differs from country to country based on their respective laws. Differences include, the stated time goods are allowed to remain in storage, as well as customs control and oversight while those goods are stored. Some countries require their customs officials to play a major role both in inspection and storage of imported goods, while other countries have their customs officials playing a reduced role or, more specifically, that of inspectors.

In almost all instances, agents and/or distributors are used to facilitate the transfer and distribution process for imported goods. Some agents and/or distributors are regulated by their respective governments, while others act independently either with or without required licenses. It is also understood that personal and professional exchange still plays an important part in the import and distribution process. This is especially true in countries like Japan.

All of the countries researched share standard import requirements for what is called commonly used or domestic goods. Exceptions are made when special items such as food, animals, chemicals, cosmetics, hazardous materials, luxury items, pharmaceuticals, and alcohol are imported. Special documents, as well as special processing requirements, exist to facilitate the import of these special items.

2.2  Military Foreign Customs Acceptance Processes

This section summarizes information that has thus far been obtained regarding foreign customs acceptance processes for military cargo in the countries of interest (the U.K., the Netherlands, Germany, Saudi Arabia, Hungary, Spain, Italy, South Korea, and Japan). Foreign customs requirements regarding military cargo vary amongst nations depending on the Status of Forces Agreements (SOFAs) between the U.S. and each nation. More detailed information concerning SOFAs and the roles and missions of agencies involved in defense transportation (i.e., Air Mobility Command (AMC), Military Sealift Command (MSC), Military Traffic Management Command (MTMC), Joint Traffic Management Office, Army Air Force Exchange Service) is given in "Overseas Shipment Operating Concepts and Military and Commercial Foreign Customs Interfaces"[1].

Without going into the details concerning SOFAs, roles, and missions, it is clear that development of a generic electronic customs interface that will support both military and commercial cargo will require detailed information on current customs interface implementations, whether they are paper-based or electronic, for military cargo that enters each country. In recognition of this, a list of MTMC, AMC, and MSC units within each of these countries has been compiled. The list is provided in Table 2.2-1.

Following the release of the preliminary version of this document, these units will be contacted for the purposes of obtaining information on customs interface implementations, for military goods, within the countries of interest.

3.0  GENERIC FOREIGN CUSTOMS INTERFACE

      

This section addresses, in a preliminary fashion, the implementation of a generic electronic customs interface with the U.K., the Netherlands, Germany, Saudi Arabia, Hungary, Spain, Italy, South Korea, and Japan for commercial and military cargo. The development of a generic electronic customs interface among multiple dissimilar countries is complicated by the fact that different countries tend to have different customs reporting requirements, different computer and communication infrastructures, different currencies, and different languages.

At this time it seems reasonable to assume that regardless of compatibility between commercial and military methods, commercial requirements will play the larger role in the nature of a generic electronic customs interface. This assumption is based on three principal facts: the DoD's increasing reliance on non-defense standards, methods, and processes[2]; the DoD's extensive use of commercial carriers[3, 4]; and customs simplification, harmonization, and automation efforts that are currently underway around the world.

Given the role that commercially-oriented electronic foreign customs acceptance processes are expected to play, coupled with the preliminary nature of this document, the subsections that follow focus on a number of known past, present, and future customs simplification, harmonization, and automation initiatives throughout the world. Particular attention is paid to those efforts that involve one or more countries that are of immediate concern (i.e., the U.K., the Netherlands, Germany, Saudi Arabia, Hungary, Spain, Italy, South Korea, and Japan). The given information will serve as a foundation for assessing the feasibility of a generic electronic customs interface. The feasibility assessment will be included in the final version of this document.

3.1  World Customs Organization (WCO)

The World Customs Organization (WCO)[5], formerly known as the Customs Cooperation Council (CCC), is active in all areas associated with customs simplification, harmonization, and automation. This section introduces the WCO Electronic Commerce Advisory Group (ECAG) and provides an overview of pertinent CCC/WCO activities, such as the establishment of the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention).

3.1.1  WCO Electronic Commerce Advisory Group

The WCO has an Information Management Subcommittee that considers the implications of emerging technologies and directions associated with computers and communications[6]. The Information Management Subcommittee has an ECAG which, among other things, is chartered to assess the potential impact of developments in electronic commerce on customs activities and world trade in general[6].

The WCO's ECAG held its 13th meeting on September 2-4, 1996[7]. One of the high priority issues was the harmonization of data and codes. Due to the high priority nature of harmonization, WCO's Codes Group was expected to meet before ECAG's 14th meeting (scheduled for January 13-14, 1997). Additionally, the WCO Secretariat has been in the process of setting up a World Wide Web (WWW) server. The WCO WWW site will contain information on the WCO, the WCO Data Mapping Guide (for those involved and/or interested in Customs Electronic Data Interchange (EDI), and links to websites of member Customs administrations and international organizations involved in trade facilitation[7]. It is hoped that the WCO WWW site will also contain additional WCO documentation, such as the WCO EDI Security Handbook, etc.

3.1.2  Kyoto Convention

The Kyoto Convention is one of a number of conventions that have been established under the auspices of the WCO/CCC. The Kyoto Convention was designed to overcome obstacles inherent to international trade. The establishment of conventions that are equally binding upon all those that wish to adopt them (referred to as contracting parties) has proven to be an effective method for securing some degree of uniformity in customs regulations[8]. The Kyoto Convention has 31 technical annexes and each deals with a specific customs procedure or activity. The annexes are as follows:

A.1.  Customs formalities prior to the lodgement of the goods declaration
A.2.  Temporary storage of goods
A.3.  Customs formalities applicable to commercial means of transport
A.4.  Customs treatment of stores
B.1.  Clearance for home use
B.2.  Relief from import duties and taxes in respect of goods declared for home use
B.3.  Reimportation in the same state
C.1.  Outright exportation
D.1.  Rules of origin
D.2.  Documentary evidence of origin
D.3.  Control of documentary evidence of origin
E.1.  Customs transit
E.2.  Transshipment
E.3.  Customs warehouses
E.4.  Drawback
E.5.  Temporary admission subject to re-exportation in the same state
E.6.  Temporary admission for inward processing
E.7.  Duty-free replacement of goods
E.8.  Temporary exportation for outward processing
F.1.  Free zones
F.2.  Processing of goods for home use
F.3.  Customs facilities applicable to travelers
F.4.  Customs formalities in respect of postal traffic
F.5.  Urgent consignments
F.6.  Repayment of import duties and taxes
F.7.  Carriage of goods coastwise
G.1.  Information supplied by the Customs authorities
G.2.  Relationship between Customs authorities and third parties
H.1.  Appeals in Customs matters
H.2.  Customs offenses
J.1.  Customs applications of computers

Table 3.1.2-1 provides a listing of the countries that are relevant to the current tasking and shows the corresponding annexes that they have accepted[8]. The entries are valid as of January 1, 1993.

3.2  Asia-Pacific Economic Cooperation (APEC)

The APEC was founded in 1989 as a result of the increasing interdependence among economies in the Asia-Pacific region[9]. Currently, APEC is very active in promoting open trade and economic cooperation. To illustrate the importance of APEC, 1994 statistics indicated that its member economies had a combined Gross National Product of over U.S. $13 trillion (in 1994), which constituted nearly half the world's total annual output. Additionally, APEC members, at that time, represented about 46 percent of the world's total merchandise trade[9]. APEC members include:

APEC countries are actively involved in the simplification, harmonization, and automation of customs procedures. APEC countries have agreed to simplify and harmonize their customs procedures in accordance with the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention) by 1998[10]. Additionally, APEC countries have agreed to enhance the computerization of customs procedures by adopting and supporting United Nations rules for Electronic Data Interchange For Administration, Commerce, and Transport (UN/EDIFACT) by 1999[10].

In November 1994, APEC established the Subcommittee on Customs Procedures (SCCP) under the Committee on Trade and Investment (CTI). The SCCP's efforts and activities are focused primarily on simplification and harmonization of customs procedures to facilitate trade. Their activities include the exploration of risk management in conjunction with electronic commerce to facilitate cargo clearance and an assessment of the feasibility of harmonizing data elements associated with the customs processing of cargo[10]. APECs principal scheduled customs-related activities include[11]:

• Harmonization of tariff nomenclature among APEC members to the sixth digit level through adoption of the WCO Harmonized System in 1996.
• Customs seminars on computer applications (Singapore, August) and risk management (China, September) in 1996.
• A direct Customs-Industry Dialogue through an exhibition and symposium in Manila October 15-16, 1996.
• Adoption of the principles of the World Trade Organization (WTO) Valuation System in 1997.
• A publicly available information manual on APEC members' customs laws, regulations, administrative guidelines, procedures and rulings in 1998.
• Adoption of the principles of the Kyoto Convention in 1998.
• Computerization of APEC customs procedures via UN/EDIFACT by 1999.
• Introduction of an Advance Classification Ruling System by 2000.
• Adoption of the principles of the WTO TRIPs Agreement by 2000.
• Clear appeal procedures introduced by all APEC members by 2000.
• Facilities for temporary importation provided by all APEC members by 2000.

APEC's Transportation Working Group (ATWG) has undertaken a transportation EDI project. An initial evaluation of impediments to EDI has been completed and the results were based on information provided by 14 of the member countries. A report on Phase 1 of the project has been published by the APEC Secretariat[12].

Although the relationship to the aforementioned project is not entirely clear, Tradegate Australia is coordinating several EDI projects within ATWG[7]. The countries involved include Singapore, Korea, Indonesia, Malaysia, Japan, Hong Kong, New Zealand, and Australia. The projects cover commercial clearance and payment of import marine consignments, transport of export maritime consignments to the wharf, invoice, and air waybills for both exports and imports, and a pilot project within the customs subcommittee between Australia, Singapore, and South Korea[7].

In recent customs-related activities, Australian and Philippines Customs have prepared a proposal regarding the implementation of UN/EDIFACT in APEC customs administrations by the end of 1999[7]. With respect to implementation, ten countries have requested assistance. Expected assistance sources include the International Air Transport Association (IATA), WCO, and other customs agencies. Support for the project is being sought from the Asian EDIFACT Board (ASEB) and the Pan-American EDIFACT Board (PAEB)[7].

3.3  North American Trade Automation Prototype (NATAP)

The North American Trade Automation Prototype (NATAP) is a demonstration project involving the United States, Canada, and Mexico that arose out of the North American Free Trade Agreement (NAFTA). The NATAP system is being developed to demonstrate how North American trade activities could function more efficiently through the use of common data elements, common documentation, and common processes for commercial customs clearance[13]. NATAP is being developed by the Information Exchange and Automation Working Group (IEAW), which consists of four subcommittees, out of the International Trade Data System (ITDS) Project Office. The ITDS Project Office is an interagency office of the U.S. Department of Treasury which provides independent staff support to develop and implement both NATAP and the Information Technology Initiative Number 06 (IT06) - ITDS[14].

In conceiving NATAP, the IEAW sought to experiment with techniques that would permit the non-stop movement of conveyances across North American borders. Although IEAW proposed a demonstration involving only rail transport and trucks, NATAP would demonstrate a single transaction at border crossings that could serve as a model for vessel, air, and other transactions. One essential aspect of IEAW's proposal was that the appropriate documentation would be submitted to appropriate customs agencies prior to the arrival of the conveyance.

For submission of customs documentation, the IEAW recommended the use of UN/EDIFACT. The Systems Architecture Subcommittee called for the use of three UN/EDIFACT messages. The primary message was to be the Customs Declaration (CUSDEC) message. Additional messages included Customs Cargo (CUSCAR) and Customs Response (CUSRES).

NATAP was implemented on September 9, 1996 along the southern border of the U.S. with northern border traffic to be added in November or December[7]. The implementation included CUSDEC, CUSCAR, and CUSRES with Periodic Customs Declaration (CUSPED) message expected to follow. Communication was effected through the Internet and employed public/private key encryption. NATAP has the cooperation, support, and/or involvement of approximately 150 companies[7].

The importance of NATAP to the development of a generic electronic customs interface with the U.K., the Netherlands, Germany, Saudi Arabia, Hungary, Spain, Italy, South Korea, and Japan is not necessarily in the implementation itself but in the research that was required for it. Specifically, the research involved a compilation of common commercial goods data, common commercial transportation data, common Government-required data for goods, common Government-required data for transport, and Government-required data that is unique to each country[13]. The significance of this work is that the compiled data can serve as a very useful foundation for comparing customs reporting requirements in the countries that are relevant to the current tasking (i.e., the U.K., the Netherlands, Germany, Saudi Arabia, Hungary, Spain, Italy, South Korea, and Japan).

3.4  UN/EDIFACT and Participating Organizations

There are six regional UN/EDIFACT Boards in the world that support the activities of the United Nations Economic Commission for Europe (UN/ECE) Working Party on Facilitation of International Trade Procedures (WP.4) on the UN/EDIFACT standard. The six regions are the Pan-American region, Western European region, Eastern and Central Europe, Africa, Asia, and Australia/New Zealand. Relevant activities involving both the UN/EDIFACT standard and customs-related activities within some of the regions are covered in the subsections below.

3.4.1  UN/EDIFACT Messages Related to Customs and Transport

This section contains customs and transport-related UN/EDIFACT messages, arranged to some degree according to their specific areas of application. The classifications shown in this section are consistent with those provided by WP.4[15]. The listed messages are at varying stages in the standardization process (i.e., standard messages, draft for formal trial messages, and draft documents). Table 3.4.1-1 shows UN/EDIFACT messages related to customs. Tables 3.4.1-2, 3.4.1-3, 3.4.1-4, and 3.4.1-5 show messages related to transport. Table 3.4.1-2 shows general transport messages, Table 3.4.1-3 shows container movement messages, Table 3.4.1-4 shows dangerous goods movement messages, and Table 3.4.1-5 shows freight forwarding messages. An additional message that is relevant to this work is the Generic Statistical Message (GESMES).

3.4.2  Pan-American EDIFACT Board (PAEB)

The Pan-American EDIFACT Board is the official coordinating body of UN/EDIFACT activity in the Pan-American region (i.e., North America, Central America, and South America)[16]. The membership is divided into fair-share member countries, associate member countries, and company members. The membership lists are provided in Tables 3.4.2-1, 3.4.2-2, and 3.4.2-3. Additionally, all companies who are current members of the given national standards bodies can participate in the PAEB.

The PAEB has a Delegate Liaison Task Group (DLTG). The DLTG coordinates Pan American UN/EDIFACT standards developments, proposals, and comments. Members are official representatives of national EDI standards bodies within the Pan-American region and are therefore the official spokespersons for their organizations[16].

The DLTG has 13 Joint Message Design (JMD) groups dedicated to standards development and maintenance. The groups are given in Table 3.4.2-4.

3.4.3  European Board for EDI Standardization (EBES)

The European Board for EDI Standardization (EBES) is the official coordinating body of EDI (i.e., UN/EDIFACT) activity in the western European region. The EBES has replaced the Western European EDIFACT Board (WEEB) as the WP.4 secretariat for western Europe[17]. EBES was established as a follow-on from WEEB which ceased to exist when the funding for the European Commission's TEDIS project ended[18]. EBES has been launched by the European Commission for a five year period with annually decreasing funding to zero after year four. EBES members include 18 countries, 19 user associations, a number of Directorate Generals from the Commission of the European Union and others.

Of interest is the Customs Work Group (EG3). EG3 is tasked with developing and maintaining UN/EDIFACT messages involving customs and taxation requirements[19]. EG3 generally meets three times a year. Current potential new work items include:

• VATDEC message for lodging Value Added Tax (VAT) returns
• VIESME subset of VATDEC for traders to declare their VIES transactions to the tax authorities
• Message Implementation Guideline (MIG) for VIESME subset
• MIG for VATDEC message
• CUSPED message for periodic declarations of goods to customs
• MIG for CUSPED message
• MIG for new SANCRT message with GOVREG requirements

A WCO ECAG Codes Group and EG3 meeting was held in Brussels, December 2-6, 1996[20].

3.4.4  Asia EDIFACT Board (ASEB)

The ASEB is one of the regional UN/EDIFACT Boards of WP.4 (UN/ECE/Working Party on Facilitation of International Trade Procedures). Current members of ASEB include: Japan, Korea, India, Malaysia, Peoples Republic of China, Singapore, Thailand, the Philippines, Sri Lanka, the Islamic Republic of Iran, and Indonesia[20]. Chinese Taipei (Taiwan) is listed as an associate member. Observers include Hong Kong, Brunei Darussalam, and Nepal.

The ASEB has a Customs Working Group whose chair is Mr. Siti Aminah Abdullah of Malaysia. The mission of the Customs Working Group is to focus on the electronic communication requirements between the trading community and the customs/trade departments in the various member countries[20].

3.4.5  International Joint Customs Message Design Group (JM5)

The JM5 is the message design group within the UN/ECE Working Party 4 that handles UN/EDIFACT customs messages. Customs EDI activities around the world were reported at a JM5 meeting in Helsinki, Finland on September 9-13, 1996. To illustrate the various countries and their representation, the list of participating countries and organizations is provided in Table 3.4.5-1[7].

The JM5 meetings provide very useful and detailed information on both high-level and low-level customs EDI activities around the world. One item of concern that was noted at the Helsinki meeting was the inconsistent use of customs (i.e., CUS) and transport (i.e., International Forwarding and Transport (IFT)) messages around the world. International Joint Transport Message Design Group (JM4) handles the transport messages. JM4 and JM5 intend to work together to resolve these problems[7]. An additional issue of concern includes the newly proposed CUSPED message for periodic customs declarations. The PAEB is arguing that CUSPED is too similar to CUSDEC. The issue is whether CUSDEC should be retained, the only argument for keeping it is the fact that it is easier to understand and implement compared to CUSPED.

3.5  Miscellaneous

This section contains miscellaneous customs EDI initiatives that involve one or more countries of interest.

3.5.1  U.S./U.K. Prototype Trans-Atlantic Initiative

This section reports on a project involving both the United States Customs Service and the U.K. Customs Service. In the U.S./U.K. Prototype Trans-Atlantic Initiative, automated links between the two customs services are being studied[7]. The goal is to have one transaction used for export customs, import customs, and statistical requirements. The U.S. has provided a person to the U.K. for three months to assist in the study.

3.5.2  European Community Initiatives

This section reports on some of the activities of the Commission of the European Community Customs and Indirect Taxation Directorate (DGXXI)[7]. DGXXI is setting up a common network to support twenty trans-European customs and indirect taxation applications. The purpose of this is to achieve harmonization, economies of scale, increases in efficiency, and higher quality of service. The trans-European network project will use UN/EDIFACT as its base standard. The UN/EDIFACT D96B Trade Data Interchange Directory (TDID) has been proposed as the reference directory for developing the trans-European applications. A formal notation for the MIG will also be adopted. In a separate project, an EDI version of the European Community's Single Administrative Document (SAD), called the Single Administrative Message (SAM) is to be developed and annexed into the European Union customs code by mid 1998.

3.5.3  United Kingdom's Simpler Trade Procedures Board (SITPRO)

The Simpler Trade Procedures Board (SITPRO) is the U.K.'s official agency for the facilitation of trade[21]. SITPRO is an independent agency supported by the Department of Trade and Industry and was established in 1970[22]. SITPRO has a two-fold mission. First, assist and promote the use of effective trading practices and information systems by UK traders, thus enhancing their competitiveness. Second, strive to improve the efficiency of the overall trading process.

3.5.3.1  United Nations Aligned Trade Documents

SITPRO has been especially active in trade facilitation matters. SITPRO is an avid supporter of the use of aligned documents in international trade. Prior to the establishment of SITPRO, the U.K. was one of the first countries to adopt the United Nations Layout Key for Trade Documents (UNLKTD). In 1965, the U.K. began using trade documents which followed the UNLKTD. Since that time, many other countries have also adopted the UNLKTD and these "aligned" documents are now widely used. Additionally, many companies have also adopted the UN aligned system for their invoicing, transport, and payment documents[22].

Businesses are using these aligned documents because they are standardized and hence easier to complete and easier to check. The advantage in using aligned documents is that they are designed in a way that ensures that common information is given in standard positions. This is particularly important when dealing with trade documents in multiple dissimilar languages.

In recent years (since 1988), a number of new official documents have been developed in Europe and most are now aligned[22]. Eastern European countries are also using aligned documents. All Eastern European countries now use the aligned customs declaration which is referred to by European Community countries as the SAD[22].

A sample listing of aligned documents that are promoted for use by SITPRO is given below[22].

Invoices, Banking, and Insurance Documents

• Commission Credit Note
• Works Order
• Acknowledgment of Order
• Packing List and Continuation
• Collection/Delivery Order
• Bank Collection Form (BBA)
• Bank Collection Form (BBA plus Bill of Exchange)
• Direct Send Forms
• Model Letter of Credit Presentation Form
• Insurance Certificates

Transport Documents

• Shipping Documents
• Export Cargo Shipping Instructions (ECSI) and Continuation Sheet
• Standard Shipping Note
• Dangerous Goods Note
• IATA Shippers Declaration for Dangerous Goods
• Certificate of Shipment
• Shipping Specification and Continuation Sheet
• Dispatch Advice
• Air Consignment Note
• Other Transport Documents
• Bills of Lading and Waybills

Official Documents

• Arab British Chamber of Commerce Certificate
• South Africa Declaration of Origin
• European Community Certificate of Origin
• Preference Certificates
• Single Administrative Document (SAD)
• Intra-European Union Trade Statistics (INTRASTAT) Form
• European Sales List and Continuation
• Animal Journey Plan

3.5.3.2  U.K. International Trade Transaction (ITT) Model

In its work on trade facilitation, SITPRO has developed a detailed implementation-oriented model of the U.K. international trading process for exporting by air. The model is essentially a flow diagram that illustrates all activities that take place during the trading process. The model is consistent with the ITT Global Reference Model (GRM)[23].

The U.K. ITT model, consistent with the GRM, is divided into seven primary activities: contract negotiations, payment negotiations, preparation for exportation, exportation, transport, importation, and payment final phase. Details are then provided on each activity. Within the model, all interactions with both domestic and foreign customs offices are identified. Additonally, UN/EDIFACT messages for most interactions are provided. The messages include CUSCAR and CUSRES, for interacting with domestic customs, and INVOIC and CUSDEC for interacting with foreign customs.

3.5.4  The Netherlands

This section contains customs EDI activities that are underway in the Netherlands[7]. The sea cargo system RODOS is in the process of being rebuilt[7]. It is expected that in 1997 it will be ready to connect all interested parties in the Port of Rotterdam using UN/EDIFACT CUSCAR and CUSRES messages. Their import system has been in operation since 1988 and accounts for about 76% of declarations. Their export system was built to process declarations and EDI capabilities were to be added in early 1996. Connections with statistics and agriculture are also being developed. A system for excise declarations should be ready by mid-1997. The system will use a subset of the CUSDEC message.

Of particular note is their new modular system for imports, exports, and transit, called SAGITTA 2000. Development of SAGITTA 2000 is to begin in early 1997. It will be a client-server system that employs UN/EDIFACT messages and its first use will be for periodic entries.

3.5.5  Japan

This section addresses two known customs EDI activities in Japan[24]. These activities are in addition to those they are involved in through APEC. One noteworthy effort is the Nippon Automated Cargo Clearance System (NACCS). This system was developed as a result of special legislation to provide a customs clearance system. In early 1991 NACCS was operating in five airports with approximately 150 users and 650 terminals. In late 1991, NACCS was expanded to include sea cargo which led to an expansion in the number of users.

NACCS provides 155 import-related applications and 150 export-related applications. These include applications for use by the customs administration, customs brokers, air-cargo consolidators, warehouse operators, forwarders and banks. NACCS was established with a combination of Government and private investment but is currently funded by charging the users.

In the latter half of 1992, the Ministry of Transport established a Logistics EDI Study Group. The purpose of the group was to promote the development and use of UN/EDIFACT standards in the logistics sector. This group absorbed a previous Sea Transportation Group, headed by the Japan Shipowners' Association. The group has examined the development of message subsets for use in Japan of the EDIFACT Bay plan, Customs, and International Forwarding and Transport Message[24].

3.5.6  South Korea

In addition to those activities that South Korea is involved in through APEC, this section reports on the KTNet effort. KTNet is a customs-related EDI effort in South Korea that dates back to at least 1990[25]. KTNet was planned in three phases and was conceived to involve the full range of import and export trade procedures in what was termed a Reliable, Accessible, Safe, and Serviceable (RASS) system. Early estimates indicated that KTNet would reduce the current cost of trade documentation to South Korean traders by 20 percent. KTNet covered trade administration, customs clearance, transportation, insurance, foreign exchange, and connection to international networks.

3.5.7  International Air Transport Association (IATA)

The IATA was originally established in Havana, Cuba, in April 1945[26]. The IATA is the primary forum for cooperation among airlines in the promotion of safe, reliable, secure and economical air services. The IATA is an avid supporter of UN/EDIFACT, maintaining an EDI Support Team (EST) and eight user groups. The EST functions as the point of contact with the UN/ECE WP.4 and the UN/EDIFACT Joint Rapporteurs Team (JRT). The IATA UN/EDIFACT user groups are as follows[27]:

• Passenger and Airport Data Interchange Standards (PADIS) Board
• Cargo Data Interchange Task Force (CDITF)
• Schedules Information Standards Committee (SISC)
• Billing and Settlement Plan (BSI) EDI Working Group
• IATA Clearing House (ICH) EDI Working Group
• IATA/ATA/API Aviation Fuel Exchange (AVNET)
• CASS-EDI Working Group
• EDIFACT Coordination Board

The IATA maintains a list of all EDI messages that are either in use in the air transport industry or are planned for implementation within one year. Those messages regarding cargo and border clearance are provided in Tables 3.5.7-1[28] and 3.5.7-2[29] respectively.

4.0  SUMMARY AND CONCLUSIONS

      

The information in the previous sections suggests that the idea of a generic electronic foreign customs interface for commercial and military shipments to the U.K., the Netherlands, Germany, Saudi Arabia, Hungary, Spain, Italy, South Korea, and Japan is becoming increasingly feasible. In the realm of commercial cargo, the development of such an interface has been, and continues to be, the subject of intense investigation by many countries around the world. In addition to efforts by the United Nations and others (e.g., WTO, WCO, etc.), the passage of the North American Free Trade Agreement, the formation of the European Union (EU), and the formation of the Asia-Pacific Economic Cooperation, are events which are sparking new activity into the simplification, harmonization, and automation of customs procedures.

The need for stable and widely recognized standards has been acknowledged by all participants in electronic customs initiatives. The above sections illustrate that UN/EDIFACT is widely recognized as the standard of choice for these systems. In short, UN/EDIFACT is currently playing, and will continue to play, a central role in most current and future electronic customs implementations. An additional factor which will very likely effect future implementations is the Internet. The worldwide acceptance and ubiquity of the Internet will likely result in increasing investigations into making effective use of it, as opposed to relying on Value Added Networks (VANs), for not only customs interfaces but for EDI in general.

APPENDIX A:  REFERENCES

      

[1]  "Overseas Shipment Operating Concepts and Military and Commercial Foreign Customs Interfaces," for the DoD CALS IDE Project, January 1997.

[2]  "DoD Policy on the Future of MILSPEC," Secretary of Defense William J. Perry, reprinted in CrossTalk, The Journal of Defense Software Engineering, September 1994 Volume 7 Issue 9.

[3]  "Defense Transportation, Commercial Practices Offer Improvement Opportunities," United States General Accounting Office Report to the Secretary of Defense, November 1993.

[4]  "Defense Transportation Streamlining of the U.S. Transportation Command is Needed," Report to the Chairman, Subcommittee on Military Readiness, Committee on National Security, House of Representatives, February 1996.

[5]  World Customs Organization, November 22, 1996, http://www.unicc.org/unece/ trade/facil/cccstr.htm.

[6]  "Electronic Commerce in International Trade, A Customs Perspective," Presentation by John Drury, Deputy Chairman, Electronic Commerce Australia and Deputy Chief Executive Officer Australian Customs Service, Electronic Commerce Australia National Conference, November 11-13, 1996, http://www.customs.gov.au/drury1.htm, January 7, 1997.

[7]  Minutes of JM5 Meeting, Joint Rapporteurs' Team Meeting, Helsinki, September 9-13, 1996, http://www.tieke.fi/sty/jm5min.htm.

[8]  "Handbook of the International Convention on the simplification and harmonization of Customs procedures," Kyoto, May 18, 1973), Amending Supplement No. 13 - January 1993, 1st Edition, October 1975, http://www.unicc.org/unece/trade/kyoto/ky-01-e1.htm.

[9]  Asia-Pacific Economic Cooperation (APEC) Home Page, http://www.apecsec.org.sg/, January 7, 1997.

[10]  Asia-Pacific Economic Cooperation (APEC) Subcommittee on Customs Procedures, http://www.apecsec.org.sg/sccp3.html, January 7, 1997.

[11]  Asia-Pacific Economic Cooperation (APEC), Annex One, APEC Collective Actions, Action Report for 1996, http://www.apecsec.org.sg/02anxone.html, January 7, 1997.

[12]  Asia-Pacific Economic Cooperation (APEC) Transportation Working Group, http://www.apecsec.org.sg/tptwg.html, January 7, 1997.

[13]  "Report to the Heads of Customs," prepared by the Information Exchange and Automation Working Group in Consultation with the North American Trade Community, June 1995, http://www.itds.treas.gov/hccpapre.html.

[14]  International Trade Data System (ITDS) Home Page, http://www.itds.treas.gov/ index.html, January 7, 1997.

[15]  UN/EDIFACT Message Summary by Sector, http://www.unicc.org/unece/trade/ cnnct/ref941.htm, January 10, 1997.

[16]  Pan American EDIFACT Board, http://www.disa.org/paeb/, January 9, 1997.

[17]  "WP.4 Report and Issues," September 1995 meeting in Geneva, January 1997.

[18]  European Electronic Messaging Association, EDI Committee - Brussels Open Forum, http://www.eema.org/edirep.html, January 9, 1997.

[19]  European Board for EDI Standardization (EBES) Home Page, http://www.ebes.cenclcbel.be/, January 8, 1997.

[20]  The Asia EDIFACT Board (ASEB) Home Page, http://www.ktnet.co.kr/aseb/, January 10, 1997.

[21]  The Simpler Trade Procedures Board (SITPRO) Home Page, http://www.sitpro.org.uk, January 12, 1997.

[22]  Standard Documentation, SITPRO and the UN Aligned System, http://www.sitpro.org.uk/facts/alidoc.htm, January 12, 1997.

[23]  International Trade Transaction Modeling: National and Regional Models, http://www.unicc.org/unece/trade/itt/i_natrg1.htm, November 25, 1996.

[24]  Electronic Data Interchange (EDI) in Japan, http://www.nectec.or.th/bureaux/ tedic/JP-EDI.HTML, January 8, 1997.

[25]  Electronic Data Interchange (EDI) in Korea, http://www.nectec.or.th/bureaux/tedic/

KR-EDI.HTML, January 12, 1997.

[26]  International Air Transport Association (IATA) History, http://www.iata.org/

hist1.htm, January 14, 1997.

[27]  Groups involved in IATA EDIFACT, http://www.iata.org/ia/Activity.htm #user groups, January 14, 1997.

[28]  IATA Cargo Messages, http://www.iata.org/ia/impl_car.htm, January 14, 1997.

[29]  IATA Border Control Messages, http://www.iata.org/ia/impl_un.htm, January 14, 1997.

APPENDIX B:  ABBREVIATIONS AND ACRONYMS