CROSS-BORDER PAPERLESS TRADE
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1 CROSS-BORDER PAPERLESS TRADE Author: Dr. Slavcho Manolov Bulgarian Industrial Association CROSS-BORDER E-GOVERNMENT Slide 1 Copyright SERVICES
2 The reduction of the paper documents flow is the major challenge to the efficiency of the international trade The International Trade Transaction consists of average 27 participants (traders, freight forwarders, carriers, financial and insurance organizations, authorities such as: customs, tax administration, etc.), who issue and exchange average 400 documents. CROSS-BORDER E-GOVERNMENT Slide 2 Copyright SERVICES
3 Achievements of the global and regional initiatives for cross-border paperless trade During the last 20 years many international bodies have realized several initiatives intended for formalization of the data definitions and formats so that information could be exchanged more expedient than in traditional document exchange. The following important results could be mentioned: 33 Recommendations of UN/ECE for facilitation of the international trade procedures. Some of them have been adopted by ISO as international standards; Directory of UN standard electronic messages equivalent to the trade-related documents plus some service messages. Now this directory consists of 192 electronic messages; Directory of UN standard data elements participating in the electronic messages. CROSS-BORDER E-GOVERNMENT Slide 3 Copyright SERVICES
4 Example Validation Information rules flow Usage guidelines Field specs Usage rules Scope Electronic Business XML Initiative The joint initiative of UN/CEFACT and OASIS, named ebxml, hopes to combine the experience from 20 years of EDI with XML's capabilities to avoid EDI's shortcomings. Format specs W H Y W H A T Business Business Requirements Requirements Logical Logical Message Message Design Design TradeCondition InstructingParty OrderToBuyOrSell ExecutingParty -TradeDate: Date -SWIFTIdent: BIC -SWIFTIdent: BIC -PriceCondition: Real -OrderedQty: Real Trade -Security: ISIN -Action: {Buy/S BUSINESS MODELS TRANS- ACTIONS COMPONENTS Purchase Order Purchase Order Business Documents Sender Recipient Position Account Summary H O W Technical Technical Design Design Technical Technical Implementation Implementation Sender Recipient Position Account Summary DOCUMENTS XML CODE SAP AG 2001, Gunther Stuhec CROSS-BORDER E-GOVERNMENT Slide 4 Copyright SERVICES
5 Bulgarian CrossVertical -borderepaperless -Marketplace Trade The problems for real fulfillment of cross-border paperless trade The ebxml approach is based on the assumption that some agents from different heterogeneous environments can reach interoperability by exchange of unified and standardized messages through standardized messaging technology. This can be defined as Passive System Integration. The practical results pointed out that the Passive Integration is not sufficient in many cases of the cross-border trade. Some of the obstacles to the reliable and effective exchange of the e-documents can be defined as following: the problem of Various Interchange Agreements - different national addressing of the institutions, which are involved in the messaging process; the problem of the Cross-Certification, etc. CROSS-BORDER E-GOVERNMENT Slide 5 Copyright SERVICES
6 Bulgarian CrossVertical -borderepaperless -Marketplace Trade The proposed approach of the Active System Integration The proposed approach is a consequence of some recommendations of the European e-government Interoperability Framework, elaborated by IDA Programme: recommendation No 3, which defines and demarcates three dimension of the interoperability: organizational, technical and semantic; recommendation No 5, which defines the necessity of the respective Business Interoperability Interfaces (BII). From the technological point of view, the Active System Integration is based on the assumption that the agents from different heterogeneous environments can reach interoperability only by the intermediation of some homogeneous environment with internal exchange of unified and standardized messages through standardized messaging technology. CROSS-BORDER E-GOVERNMENT Slide 6 Copyright SERVICES
7 The Pan-European Network for Business e-documents e a realization of the Active System Integration approach The real cross-border exchange of internationally adopted business-related e-documents can be fulfilled by Information System, deployed at two levels. The Pan-European (networking) level would be a homogeneous network consisting of National e-document Brokers plus Centralized Registers body including: a Register of the Electronic Services and a Register of the Information Objects. National e- Doc Broker Authentication Server Application Server Messaging Server Central Registers Body Uniform Collaboration Protocol Agreement National e- Doc Broker Authentication Server Application Server Messaging Server To the National level To the National level CROSS-BORDER E-GOVERNMENT Slide 7 Copyright SERVICES
8 The National level of the Network To the Networking party of the National e-doc Broker Local party of the National e-doc Broker Local Authentication Server CR Management Server Local Application Server Local Messaging Server Local Form Server Web (Presentation) Server To the local end-users The process of interaction and data transformation between the International and the Local parties of the National e-document Brokers (realized by set of Application Adapters, Data Adapters and Transactional System Adapters) would be an essential factor for crossborder interoperability of the system. Each national subsystem would also contain two National Registers (of Electronic Services and of Information Objects), ensuring the national peculiarities concerning the drawing up, the addressing and the signing of e-documents. CROSS-BORDER E-GOVERNMENT Slide 8 Copyright SERVICES
9 Organizational aspects of the realization Having into account that such system would serve the Business communities in the European countries, it will be advisable that the establishment of National e-document Brokers as National nodes of the Network would be undertaken by competent National business representatives, like Bulgarian Industrial Association (BIA). On the other hand, this approach corresponds to the principles and objectives of the new IDABC Programme. Therefore, along with the bilateral negotiations in the preparatory period, the eventual initial development of the system can be supported by IDABC, which can play important role as methodologist and organizer of first collaborative events. The real works for establishment of Pan-European network of Business e-docs exchange can start with: Pilot realization by exchanging of one businessrelated e-document (for example, Dangerous Goods Manifest) between two parties (future National e-document Brokers); Temporary realization of the Centralized Registers prototype. CROSS-BORDER E-GOVERNMENT Slide 9 Copyright SERVICES
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