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Concept of Operations for an ESCM Standard

Concept of Operation for ISO Approved Work Item 24533: Data Dictionary and Message Set for Tracking of Freight and its Intermodal Transfer

International Organization for Standardization
Technical Committee 204, Work Group 7.2
February 27, 2004
Draft v.5a

 

Version History
Description Date Name
Strawman version with completed outline, to facilitate Expert committee contribution August 19, 2003 Draft version 1
Incorporates Expert group inputs, including rewrite of Sect 5; placeholder for Section 6 now replaced with content; Section 7 (special freight) eliminated; Section 8 reworked and mostly put into Annex September 12, 2003 Draft version 2
Annex scaled back; Glossary of Terms added; other minor enhancements throughout September 30, 2003 Draft version 3
Edits as per WG7.2 meeting #4 (Vienna), including referential pointers to driver identity verification, hazardous material movement and country-specific issues; also scope clarification on truck-only movement support October 31, 2003 Draft version 4
Incorporates updates as per AWI 24533 Clause 5 development, including articulation of Chain of Possession.
February 27, 2004		 Draft version 5

Table of Contents


ISO AWI 24533: A Concept of Operation


Background
Document Overview
Operational Scope
Objectives
Overview of Physical Freight Flow
Information Exchange Transactions
Operational Scenario
Initial Roles of Standards Setting Bodies and Customs Agencies in ISO 24533
Glossary of Terms
List of Acronyms
References
Annex: Discussion of Relevant Bodies Involved in Standards Setting

ISO AWI 24533: A Concept of Operation

1. Background

As freight movement becomes more international and intermodal in nature, as security concerns increase, and as the potential of eBusiness transactions become apparent and feasible, standardized data formats are needed among stakeholders to facilitate the efficient, productive and secure movement of that freight. ISO Technical Committee 204, Intelligent Transport Systems (ITS), is addressing one area in which a standards gap exists - freight movement involving truck and air modes. ISO New Work Item 24533 became an Approved Work Item in February 2003, and an effort is proceeding to create a working draft standard. A description of the strategic objectives and implementation approach of this emerging standard is given in the white paper, "Deploying Freight Data Standards to Improve Electronic Supply Chain Transactions", authored by the Technical Committee's working group in June 2003.

A variety of freight ITS operational tests within this business domain have taken place among various government and industry segments. The committee recognizes that the successful deployment of a standard is enhanced by adopting best practices from past tests and working to infuse elements of a draft standard in future tests. One successful field test completed in 2002 that is viewed as a backbone for the standard considered the use of an electronic supply chain manifest between supply chain partners in the U.S. and in Canada for transporting time-sensitive freight among truck and air modes.

The working group has created this concept of operations (CONOPS) to provide a functional context and description of the business environment in which the various freight supply chain stakeholders would apply the standard. Material from this CONOPS will be adapted into the draft standard. The combination of the CONOPS plus Use Case and Information Exchange Concept documentation forms the basis for the functional description to be included in the Standard.

This standard will include a unified standard Data Dictionary and Message Set, all elements of which are intended to be harmonized with the United Nations Trade Data Element Directory (UN/TDED) and United Nations Trade Data Interchange Directory (UN/TDID). The standard will be recognized, understood and used by international customs agencies and international trade organizations. This adoption will enable the streamlining of the movement of international inter-modal freight to make it more efficient and cost-effective, as well as to increase the abilities of all customs agencies to operate more efficiently and assure the security of countries they represent. This Concept should be replicated and embraced by the national standards institutes of countries represented in the ISO, by the member countries of the World Customs Organization (WCO), the Group of Seven Industrialized Countries, and put into practice by the world's customs agents, trade and financial industries, and international shippers and freight-forwarders.

2. Document Overview


It is an objective of the working group to create a technology-neutral Standard that is applicable by organizations independent of technology choices made in areas such as messaging platforms and driver verification. Therefore, this CONOPS purposely written in a way that prescribes no technology hardware or software solution.

A second objective of the working group is to develop this Standard in a way that is compatible and complementary with the methodologies and work outputs of the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT) organization. This includes use of the Unified Modeling Language (UML) for functional descriptions and adoption of artifacts created by UN/CEFACT's business process analysis work group. This CONOPS is consistent with, and extends this work.

3. Operational Scope

Activities in the international freight supply chain are complex, involve many stakeholders and types of information exchanges. Interactions between any two or more stakeholders may be guided by country, prior relationship, technology implementation, terms of business, product type, etc. Given the breadth of activities and the factors surrounding these activities, it is not surprising that there are so many languages (electronic and human), operating standards and operational practices involved.

The Standard described in this CONOPS addresses a thread of this chain: the transport of goods from a seller (or "consignor") to a consignee, using intermodal transport that includes motor carrier and air links. It is appropriate for supporting operational freight movements that occur worldwide, whether that freight travels from point of origin to destination domestically or internationally. While the standard is not focused on unimodal movements, and any unique requirements therein, it is considered complementary to standards of unimodal freight movement.

Rail and ocean transport are vital components of intermodal freight movements. The adoption of motor carrier/air modes is a starting point; it is recognized that a robust intermodal standard must include these other modes.

Freight that is transported by motor carrier and air links can be generally categorized as delivery time-sensitive. Examples of freight that might be so categorized include:

  • Inbound parts or assemblies for just-in-time (JIT) manufacturing operations
  • Perishable goods
  • Particularly high-value freight
  • Expedited postal packages and documents

Hazardous materials (considered, for the purpose of this discussion, synonymous with the term "dangerous goods") may also be transported within this chosen class of supply chain. This Standard does not address the particular unique requirements of this special freight type, but again, is intended to be fully compatible with appropriate guiding Standards.

This CONOPS uses the terms "actor" and "stakeholder" synonymously to represent the various roles that add value to this segment of the international freight supply chain. Actors are grouped into actor classes, which depict the most basic type of value being provided. We consider these four actor classes (as are defined by the Basic Resource-Event-Agent ontology used by UN/CEFACT's Unified Modeling Methodology):

  • Customer - A party who acquires, by way of trade, goods or services.
  • Supplier - A party who provides, by way of trade, goods or services
  • Authority - A statutory body existing within a jurisdiction and a specific area of responsibility that administers legislation to regulate trade and/or monitors compliance with existing legislation.
  • Intermediary - A commercial party who provides services to customers, suppliers or authorities within the supply chain. This includes, but is not limited to, freight transport.

There are many specific actors within these classes that participate in the supply chain. We identify those that have particular importance in the specific domain of this standard. These actors, and their class membership, are listed in Table 1.

 

Table 1. Possible Actors by Class Considered by This Standard
Actor Class Possible Actor
Customer Consignee
Supplier
Consignor (might be the Manufacturer)
Authority Customs Agencies
Receiving Authorities (e.g., Port Authority)
Intermediary Motor Carrier
Air Carrier
Third Party Logistics Provider
Freight Forwarder
Import Agent
Export Agent

Section 7 of this CONOPS describes how the primary actors would conduct their relevant activities in an operational setting in which this standard was published and in use. The changes in business process, primarily within the information processing and exchange functions, are described there.

It is noted that in many supply chains, common business practice may mean that an identified consignee is an intermediate point towards the transport of a consignment to the final, or "ultimate" consignee. For example, a Supplier may give a consignment to a Third Party Logistics provider, who then creates a transaction to deliver to the final consignee. Unless otherwise noted, use of the term "consignee" refers to the "ultimate consignee".

4. Objectives

There are a great many different exchanges of information that are required in a supply chain, particularly one that is intermodal and international in scope. The exchanges span multiple business functions. This Standard is concerned with distribution, transportation and security-related information. A concept of operation of how this data standard would be used operationally is driven by the two primary types of benefit that could be enabled through use of the standard: operational efficiency and security.

Operational efficiency

Suppliers and consignees articulate speed and reliability as two important requirements of supply chains, necessary to ensure efficiency, high productivity and competitive positioning. Among the challenges to speed and reliability are the information requirements that must be met to trigger various activities along the physical supply chain. For example, information transactions accompanying international consignments must be filed with Customs authorities as a requirement to gaining Customs clearances that permit further freight movements towards the consignee. Paper-based information transactions frequently become a process bottleneck. Electronic-based information transactions, in the intermodal and international contexts, use standards that are not globally recognized and adopted, thus introducing the same kind of process delays that are symptomatic of the paper transactions. The use of data messages that are widely adopted throughout the supply chain will foster efficiency. Other operational efficiencies include preventing data re-entry by various stakeholders along any given supply chain, reducing errors and rework, and improved operational planning by having advance shipping notices.

Security

Use of this Standard is expected to promote the use of globally harmonized procedures to effect security, and this is an important requirement of an efficient and secure supply chain system. The data standard promotes certain aspects of a "chain of possession" concept of the freight supply chain. The chain of possession refers to the identification and appropriate storage of a history of the party (organization generally, or perhaps at an individual level) with possession of some unit of freight, such as a consignment, and relevant supporting data attributes about that party, the freight, and assets involved in enabling the transport or distribution of that freight. When authorized and authenticated stakeholders are given timely visibility to that information, it may enable preventive, deterrence, and investigative functions of a cargo security implementation. This visibility may take several forms, such as exception reporting, automatic system procedures, manual querying, etc.

This data standard does not include the data elements and messages that are directly tied to the physical movement of goods (for example, data describing container seals and their status). However, the messages within the standard do have a strong indirect relation to the physical chain. The information exchanges encompassed by these messages affect and are affected by progress of the physical freight through the physical chain. Any chain is comprised of a variety of handoff points from one "possessor" to another. Information transactions accompany these handoffs. For example, an air carrier will not release a consignment to a cartage company without verifying the identity of the driver, and, in the U.S., verifying a TSA authorization document. The information availability provides triggers for the physical release of the consignment. If a physical security device such as an eSeal is being used, there would also be a transaction at this point to effect the change of possession to the motor carrier.

Another aspect of security is ensuring that the data collected, transmitted and stored is accessible by only those stakeholders who are recognized as having legitimate rights to view (or edit, or add, or delete) this data. Ensuring this type of security is a requirement of the technology and processes that users would adopt in implementing this data standard. There is a "chain of possession" of the information itself, separate from the chain of possession of the physical freight, that is promoted by the standard, but that must be enforced through the processes and technologies used to implement it.

5. Overview of Physical Freight Flow

Figure 1 gives a simplified depiction of the physical movement of freight in the delivery time-sensitive area. We will use this simplified representation to develop the information flows affected by the standard. In practice, variations in the specific actors involved and the nature of the value these actors add to the supply chain may result in a more complex physical flow than Figure 1 depicts. The standard is intended to be sufficiently robust to handle these variations, assuming that the basic consignor à motor carrier à air carrier à motor carrier à consignee flow exists.

The business process that leads to this physical flow begins with some form of an order triggering the demand for a freight movement transaction between a supplier (consignor) and a customer (consignee). The transaction physically begins at the supplier location. This may be a manufacturing facility or it may be a distribution facility. A motor carrier picks up freight from a manufacturer (Link 1). (It is possible the manufacturer may actually be a distributor.) The motor carrier may bring freight to staging or flow-through facilities; this is not separately shown from the trucking icon on the Figure. The motor carrier delivers freight to the air cargo facility (Link 2). There may or may not be a consolidation operation in which other freight of the same or different manufacturers are merged and transported on a different truck or trailer (2A versus 2B). After air transport, a motor carrier transaction moves the freight to destination. Whether the consignment is international determines whether the freight bypasses a Customs agency (Link 3A), or must pass through Customs (Link 3B). The eventual delivery to consignee may, as above, involve a consolidation operation (Link 4B) or not (4A).

Figure 1. Simplified Depiction of Physical Freight Flow for Time-Sensitive FreightD

Figure 1. Simplified Depiction of Physical Freight Flow for Time-Sensitive Freight

6. Information Exchange Transactions

Associated with the physical freight movement transactions described in Section 5 are supporting information exchanges between two or more actors. As the standard's scope focuses on distribution-specific information, this Section describes this type of information needed to support the business processes of the delivery time-sensitive freight supply chain.

There is some commonality to the information items that comprise distribution-specific documents that are transacted, regardless of which actors or links in the supply chain are involved. These documents' primary purposes are:

  • Contract of carriage - for the carrier to transport the goods, which have been duly marked, to the indicated consignee noted on the document;
  • Title document - which may be negotiable or non-negotiable, depending on the terms of sale;
  • Verification of goods receipt - documenting that the goods have been physically taken into possession by the receiving actor, and in good condition except as may be specifically noted on the document;
  • Vehicle for meeting regulatory and enforcement agencies' requirements - particularly in the air cargo area, where the documents serve this legal role.

Different names are used for these documents throughout the supply chain, depending mostly on which actors are transacting the document, and to a lesser extent, by the companies and industry sectors involved. Table 2 lists the documents, and their specific name, according to position in the supply chain.

The information items that comprise these documents are generally:

  • Consignor - name, address, other contact information,
  • Consignee - name, address, other contact information,
  • Freight description - cargo type, weight, quantity,
  • Consignment description - reference number, date of consignment, special instructions, signature of recipient

Other kinds of data may also appear. Bills of lading typically include the terms by which a motor carrier assumes liability for the freight.

Ancillary information that is also exchanged electronically by two or more supply chain actors, and that is consistent with the stated scope of the standard, are also potentially affected by this standard. Each country or region may have specialized, unique requirements, which this standard should not be in conflict with.

 

Table 2. Distribution Document Type by Link in the Supply Chain
Link Source Destination Typical Distribution Document
1 Manufacturer Motor Carrier The carrier will issue a Bill of Lading for the shipper. Often, the destination actor providing the motor carriage function is a freight forwarder - they too will produce a Bill of Lading.
2A Motor Carrier Air Carrier The motor carrier will produce a Waybill or Manifest
2B Consolidator Air Carrier Master Waybill or Master Manifest created from individual waybills/ manifests
3A Air Carrier Motor Carrier Waybill or motor carrier's Bill of Lading
3B Air Carrier Motor Carrier (via customs) Customs' commercial invoice
4A Motor Carrier Consignee Bill of Lading
4B Consolidator Consignee Bill of Lading

7. Operational Scenario

Figure 2 shows how information might flow between the roles of the primary actors in a full supply chain movement from order to delivery. It assumes that each depicted actor has implemented a system that uses the standardized manifest information items. Physical flows are shown at the bottom of the figure, a variation in format of the same flow depicted in Figure 2. This flow is given to provide context for the information exchanges above it. This Section describes the processes and behaviors the actors would perform in such a system.

7.1 Consignor

In Figure 2, the consignor triggers a request for consignment with some form of order. This transaction begins a process of transport and distribution that is the focus of the Standard; however this ordering process itself is not within the Standard's scope.

7.2 Supplier

The Standard's reach begins when a manufacturer (or other actor who initiates the consignment process) places a request for a motor carrier pickup with a carrier, forwarder, or third-party logistics provider. This request uses a technology solution (for example, based on biometrics) that authenticates and authorizes the user to perform the transaction. This Standard does not include messaging for such a solution, but is seen as consistent with other standards activities that, taken together provide a more integrated security solution.

A system that implemented an electronic supply chain manifest would likely have a manifest template from which the base information describing the consignment would be constructed. The Supplier will know most or all of the items in the template, and the user will fill out the data items, groups of which include consignor and consignee names, addresses, etc., and item level detail about the consignment contents.

If an integrator who will also be providing the air carriage services the motor carrier role, then the Supplier needn't be concerned with air as a separate transaction than the motor carriage. If an integrator is not involved, then the system's architecture, using the intermodal data standard, permits the air carrier to easily be notified of the consignment without requiring a separate manual transaction to be constructed.

Such a system would provide appropriate reports and hard copy records of the manifest transactions, in addition to the electronic transaction captured within the system. At this point the electronic manifest is transmitted to a system host, where the information becomes available to appropriate downstream supply chain providers.

 

Figure 2. Candidate Information Flow With a System Using ISO 24533 Standard (Physical Flow Shown for Perspective) D

Figure 2. Candidate Information Flow With a System Using ISO 24533 Standard (Physical Flow Shown for Perspective)

7.3 Motor carrier transport provider

Authorized and authenticated users will have access to the consignment request. In many situations where this motor carrier does not have regularly scheduled pickups with the manufacturer, this request will trigger a pickup request. The user will be directed to the consignment perhaps by an email. The user may review the manifest generated by the manufacturer, but may not alter it.

The carrier's system for scheduling a pickup will be invoked. Depending on the process used for this, use of this ISO Standard may or may not provide an opportunity to automate a previously non-automated portion of the process. This process step triggers notification to a driver to make the pickup. If the Supplier's action did not trigger a notification to the air carrier, then the motor carrier may do it.

When the motor carrier's driver arrives at the Supplier's facility to make the pickup, the driver will complete a transaction that can verify his/her identity. This might involve the use of a smart card and/or a biometric technology solution. The standard does not address the implementation (which should be governed by other applicable standards as well as common business practices in each country for driver license recognition), but will verify that there is legitimate identification for the individual and by whom (the organization, such as the accredited agent for the transport company). This transaction will be sufficiently robust to effect a possession handoff from the Supplier to the transport provider.

Upon verification, the Supplier then allows the freight to be loaded onto the vehicle or trailer and the consignment is released to the driver. After leaving the Supplier, then the driver may deliver the freight to a facility for consolidation, or directly to an air cargo facility. This concept does not influence that decision, and will support either case. In the case where the consignment is brought into a facility for consolidation, the attendant there will follow a similar procedure as a Supplier—logging in to the system, filling out a master manifest, and assigning it to a certain air carrier.

Upon arrival at the air cargo facility, the server, using the biometric/smart card process, will verify the driver's identity. Once verified, the consignment can be transferred to the air cargo attendant. At this point, an e-mail might be generated letting all the original participants in the distribution chain know that the consignment has reached its air cargo terminal.

7.4 Air transport provider

Authorized and authenticated users will have access to the consignment request, perhaps by an email. The user may review the manifest but may not alter it.

When the truck driver arrives at the air cargo facility, the attendant may log in to the system again and open the corresponding manifest. The driver's identify may be verified using a smart card and/or biometric technology solution. Upon verification, the consignment can be transferred over to the air cargo facility. If the driver is not an authorized user of the system, an alert can be generated and the driver and cargo would be subject to additional screening procedures. Once the driver is verified and the cargo accepted by the air cargo facility, an electronic notification (e.g., email) can be generated to notify the rest of the supply chain of the transfer.

Many air freight forwarders and airlines already communicate transactions using various message sets defined within the Cargo Interchange Message Procedure (IMP). It is expected that Cargo IMP users would at their discretion, be able to enhance their current system to use both this ISO standard and the Cargo IMP, as the ISO Standard is expected to be harmonized with the related Cargo IMP air waybill message (FWB).

If the freight's destination requires it to pass through Customs, the air transport provider will be able to generate a Unique Consignment Reference (UCR), and the system will be populated with this identification number.

Electronic notifications will also be generated as the cargo is transferred to downstream facilities and transporters. The transfer of freight from final air cargo facilities to final (truck-based) destinations will use the same procedures of verification and notification as originating shippers to originating air cargo facilities to destination air cargo facilities.

7.5 Customs authorities

The administrative representative or account manager of the relevant consignment account will interface with the Customs Authority's system for updating the account data and access information about the consignment.

Upon arrival at a customs port of departure or entry (in this case, at the airport intermodal facility) the Customs inspector accesses the system and opens the corresponding manifest. The inspector may verify the identity of the truck or air cargo carrier's representative using a technology solution that may include smart cards and/or biometrics. A consignment profile would then be developed using electronic tags and scanners, and by visual methods. The truck or air cargo carrier representative and the customs inspector may then compare the profile to the manifest, and make changes where the manifest was inaccurate. After all items are matched between the profile and the manifest, and all necessary items are examined, the customs inspector and truck or air cargo representative can sign an electronic document.

At point of origin, advance notification data elements, especially for time-sensitive parcels in the consignment, can be verified and confirmed. The system is then updated and an electronic notification (e.g., e-mail) generated letting all participants in the distribution chain know that the consignment has reached its customs point of departure or entry, and is cleared for international or domestic movement. The system automatically notifies the designated freight forwarder, truck carrier or air carrier at the facility, via the conforming message format/interface, that consignment has been cleared and is ready to be loaded. The transportation provider's representative may then load the consignment. This representative and the Customs inspector may then sign an electronic document before the consignment leaves Custom's control.

7.6 Consignee

The consignee, here defined to be the final recipient of the freight, not an intermediate transportation service provider, has the opportunity to have added visibility into the integrated supply chain, which could serve purposes such as tracking, inventory management, and security incident management.

8. Initial Roles of Standards Setting Bodies and Customs Agencies in ISO 24533

Several international standards-developing bodies and customs agencies will be expected to play important roles in the development of a unified standard data dictionary and message set for intermodal freight. The ISO, IEC and ITU are primary standards-setting organizations; the WCO is involved in standards development with customs authorities; and UN/CEFACT also has a key role in implementing standards. International customs agencies and governments are expected to be key users of this Concept of Operations. Numerous industrial sectors and key trade associations worldwide will be encouraged to eventually conform to the resulting draft standard. Included in the trade associations are the International Chamber of Shipping (ICS), the International Air Transport Association (IATA), and the International Article Numbering Association (EAN).

This CONOPS seeks to be inclusive of the test pilots and technical initiatives begun by international committees and organizations. One such important test was the Electronic Supply Chain Manifest (ESCM) project conducted within the United States, and it has been broadened in this concept to include a more complete international customs dimension for air and truck cargo.

As the home of this standard development, the ISO Technical Committee and Working Group will serve a coordination role between the relevant other organizations. This includes executing the intermodal freight portion of the eBusiness MOU between the IEC, ITU, EN/ECE and ISO, and providing technical support for the growth of the global acceptance, conversion and use of the data dictionary and message set that is developed as part of this standard.

UN/CEFACT will be expected to continue its TBG3 liaison with relevant ISO technical committees, including TC204, by coordinating the harmonization of the ISO 24533 standard with UNTDED, UNTDID and UNEDED, and providing inputs and guidance on all multi-lateral technical issues regarding the standard's data dictionary and message set.

The WCO and the U.S. Bureau of Customs and Border Protection (BCBP) should also be expected to play roles in the successful implementation of the standard. As the WCO publishes updates to its CDM, it and the ISO should work to ensure the CDM and this ISO standard are in alignment. The BCBP should continue to harmonize its various system efforts with the WCO initiatives. New requirements that it levies (for example, the Advanced Notification Final Rule currently in a public comment period) should be socialized with the Technical Committee to ensure the harmony of the standard with emerging information requirements.

9. Glossary of Terms

  • AIR WAYBILL - A particular type of Bill of Lading, specifically a nonnegotiable consignment note used to cover the transport of goods by airfreight. It serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed therein, and obligates itself to carry the consignment to the airport of destination according to specified conditions.
  • BILL OF LADING - Principal transportation document by which a carrier acknowledges receipt of freight, and sets forth a contract of carriage terms and conditions. Responsibilities and liabilities vary with manner and place of use. Bills of lading may be negotiable or nonnegotiable.
  • CONSIGNOR - Person or organization that sends merchandise to another party. In this
  • CONOPS, we use the term "manufacturer" to represent the consignor, though recognizing that other kinds of organizations may actually be the consignor.
  • CONSIGNEE - Person or company to whom the freight is forwarded. In and end-to-end supply chain, there may be manifests in which an intermediate logistics provider is considered the consignee.
  • CONSIGNMENT - Lot of freight tendered to carrier by one consignee at one place at one time for delivery to one consignee at one place on one bill of lading; goods/freight in one or more containers, pieces or parcels for transportation from one shipper to single destination.
  • MANIFEST - A specification of all cargo on board the transportation vessel. This document contains details of contents, shipper, consignee, and other details that may be required by customs or consular authorities. Copies of manifests are provided for the country of export and country of import customs authorities.
  • MASTER AIR WAYBILL - An air waybill covering a consolidated consignment, showing the consolidator as shipper.
  • WAYBILL - A document made out by, or on behalf of, the shipper and evidences the contract between shipper and carrier for carriage of cargo. A "Through Air Waybill" covers the entire transportation from departure to destination of consignment. It is not a document of title.

9. List of Acronyms

  • BPAWG - Business Process Analysis Work Group
  • CDM - Customs Data Model
  • CONOPS - Concept of Operations
  • EAN - International Article Numbering Association
  • ESCM - Electronic Supply Chain Manifest
  • HS - Harmonized System
  • IATA - International Air Transport Association
  • IEC - International Electro-Technical Commission
  • ISO - International Organization for Standardization
  • ITS - Intelligent Transportation Systems
  • ITU - International Telecommunications Union
  • JIT - Just-in-Time
  • MOU - Memorandum of Understanding
  • SSE - Shipper's Security Endorsement
  • TBG - Trade and Business Process Group
  • TBT - Technical Barriers to Trade
  • UCR - Unique Consignment Reference
  • UML - Unified Modeling Language
  • UN/CEFACT - United Nations Centre for Trade Facilitation and Electronic Business
  • UNCITRAL - United Nations Conference on International Trade Law
  • UNCTAD - United Nations Conference on Trade and Development
  • UNSM - United Nations Standard Messages
  • UN/TDED - United Nations / Trade Data Element Directory
  • UN/TDID - United Nations / Trade Data Interchange Directory
  • WCO - World Customs Organization
  • WTO - World Trade Organization

10. References

"BPAWG Reference Model of the International Supply Chain", Working Draft, UN/CEFACT TBG14, March 2003.

"Deploying Freight Data Standards to Improve Electronic Supply Chain Transactions", White Paper, ISO TC204 Working Group 7.2, June 30, 2003.

"Developing and Testing an Electronic Supply Chain Manifest: Phase II Final Report", prepared by the American Transportation Research Institute for the U.S. Federal Aviation Administration and the Federal Highway Administration, December, 2002.

"Intermodal Freight Transportation", by Gerhardt Muller, published jointly by the Eno Transportation Foundation, Inc., and the Intermodal Association of North America, 4th edition, 1999. [Note: some definitions in the Glossary of Terms section are adapted from this publication.]

"Transport information and control systems - Data dictionary and message set for tracking of freight and its intermodal transfer - Road transport information exchanges", ISO AWI/ 24533, Draft, November 11, 2002.

"Transport information and control systems - Requirements for an ITS/TICS central data registry and ITS/TICS data dictionaries", ISO International Standard 14817, first edition 2002-12-15.

"United Nations Trade Data Element Directory", UN/CEFACT.

"United Nations Trade Data Interchange Directory", D.03A, UN/CEFACT, March, 2003.

Annex: Discussion of Relevant Bodies Involved in Standards Setting

Section 8 described the roles that various standards-setting bodies would play in this standard's development. This Annex provides additional background and detail on these organizations, including their constituent parts that will have specific roles.

This CONOPS seeks to be inclusive of the test pilots and technical initiatives begun by international committees and organizations. Specifically, the results of the Electronic Supply Chain Manifest (ESCM) project currently being conducted within the United States is here given an international customs dimension for air and truck cargo. The all-encompassing "Single-Window" concept being forwarded by UN/CEFACT is a driving force of this Concept.

A1. International Organization for Standardization (ISO)

ISO is a network of the national standards institutes of 147 countries, on the basis of one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. ISO is a non-governmental organization: its members are not, as is the case in the United Nations system, delegations of national governments. ISO occupies a special position between the public and private sectors because many of its member institutes are part of the governmental structure of their countries, and other members were set up in the private sector by national partnerships of industry associations. Therefore, ISO is able to act as a bridging organization in which a consensus can be reached on solutions that meet both the requirements of business and the broader needs of society, such as the needs of stakeholder groups like consumers and users.

ISO, the International Electro-technical Commission (IEC), and the International Telecommunication Union (ITU) are the three principal organizations in international standardization. They have complementary scopes, frameworks, expertise and experience to provide this technical support for the growth of the global market. Like ISO, the IEC is a non-governmental body, while the ITU is part of the United Nations Organization and its members are governments.

These three organizations have a strong collaboration on standardization in the fields of information technology and telecommunications, and have also built a strategic partnership with the World Trade Organization (WTO) with the common goal of promoting a free and fair global trading system. The political agreements reached within the framework of the WTO require underpinning by technical agreements. The WTO's Agreement on Technical Barriers to Trade (TBT) includes the Code of Good Practice for the preparation, adoption and application of standards. The TBT Agreement recognizes the important contribution that International Standards and conformity assessment systems can make to improving efficiency of production and facilitating international trade. Therefore, where International Standards exist or their completion is imminent, the Code states that standardizing bodies should use them as a basis for standards they develop. The Code requires that standardizing bodies that have accepted its terms notify this fact to the ISO/IEC Information Centre located at the ISO Central Secretariat. Standardizing bodies having accepted the Code must publish their work programs and also notify the existence of their work programs to the ISO/IEC Information Centre. On behalf of the WTO, ISO periodically publishes a directory of standardizing bodies that have accepted the WTO TBT Standards Code.

ISO Technical Committees and Working Groups

ISO's technical committees and working groups have world-renowned experts in all fields where international standardization is required. ISO 24533 is being developed within TC204, which includes the standardization of information, communication and control systems in the field of commercial transport and its inter-modal and multi-modal aspects. WG 7 of TC 204, General Fleet Management & Commercial/Freight is a smaller division of the same, and Working Group 7.2, is the source of most international coordination work for this Concept of Operations. Also in TC 204, Working Group 9 (Integrated Transport Information, Management and Control), Working Group 15 (Dedicated short range communications for ITS applications), and Working Group 16 (Wide area communications/protocols and interfaces) are strongly related to the development of this Data Dictionary and Message Set, and will be consulted as a resource and partner within this Concept.

Also relevant to ISO 24533 is ISO 14817 - Transportation Information and control systems—Requirements for an ITS/TICS Central Data Registry and ITS/TICS Data Dictionaries. Within TC 204, WG1 (Architecture) and WG4 (Automatic Vehicle and equipment identification) are heavily involved with its development, and should therefore be consulted on the relevant aspects of ISO 24533. The mission of WG1 is to provide ISO TC204, its Working Groups, related bodies and those involved in the TICS sector with a reference model of Conceptual Reference Architecture(s) that show the structure and interrelationships of the sector and to provide timely and appropriate definitions of Terminology by means of Glossaries and Dictionaries, which explain in plain language and with the minimum of jargon, the terms in use in TICS. WG1 is also developing the requirements for a central ITS/TICS data registry and ITS/TICS data dictionaries. WG4 addresses automated vehicle identification and automated equipment identification.

TC 154 (Processes, Data Elements and Documents in Commerce, Industry and Administration) and TC 211 (Geographic information/Geomatics) play a role in the Concept for ISO 24533. Other ISO technical committees may also play a role in this Concept as the standard matures and ISO's organizational structure evolves. TC 154's scope is the international standardization and registration of business and administration processes and supporting data used for information interchange between and within individual organizations, and support for standardization activities in the filed of industrial data. This Technical Committee is responsible for the development and maintenance of standards for process and data identification, and the EDIFACT syntax. TC 211 is concerned with standardization in the field of digital geographic information. These standards specify, for geographic information, methods, tools and services for data management (including definition and description), acquiring, processing, analyzing, accessing, presenting and transferring such data in digital / electronic form between different users, systems and locations. Its work links to appropriate standards for information technology and data where possible, and provides a framework for the development of sector-specific applications using geographic data.

A2. World Customs Organization (WCO or Customs Co-operation Council)

The WCO was established in 1952 as the Customs Co-operation Council, an independent inter-governmental body whose mission is to enhance the effectiveness and efficiency of Customs administrations. With 159 Member Governments, it is the only widely recognized inter-governmental international organization and authority in Customs matters. Its members process more than 95% of all international trade. Approximately 80% of the 159 Members of the WCO could be categorized as developing or in transition to a market economy.

WCO's Harmonized System (HS) of tariff nomenclature is used as a basis for the collection of Customs duties and international trade statistics by almost all countries. Use of HS ensures that a Customs administration produces statistics in accordance with international classification standards. Currently 179 countries and Customs or Economic Unions (including 104 Contracting Parties to the HS Convention), representing about 98 % of world trade, use the Harmonized System. It is therefore one of the most important instruments in world trade, and essential in the development of Customs-to-Customs information exchanges.

The G7 Customs Initiative 3

The G7 Heads of States and Government, in meetings in Lyon (1996) and Denver (1997), and the G7 Finance Ministers at the Birmingham (1998) and Okinawa-Kyushu (2000) Summits, agreed to standardize and simplify Customs data requirements of the G7 countries and to standardize the format in which data are to be reported electronically in order to facilitate international trade, reduce costs for businesses and governments and promote economic growth. The G7 countries agreed on a timetable to achieve implementation, by 2005 if possible, of the standardized electronic formats. Some countries plan to establish prototypes during 2002. In June 2001, the WCO Council accepted a request from the G7 to take over the maintenance and management of the G7 Initiative from January 2002 to advance the work into a global Customs standard in the form of the WCO Customs Data Model.

Custom Data Model (CDM)

Standardized and harmonized information requirements and procedures are essential to establish the common understanding which allows for an effective and efficient exchange of information between all parties involved in international cross-border movements. The WCO Customs Data Model (CDM) provides this common understanding on Customs information requirements. CDM will also provide contracting parties to the revised Kyoto Convention with a global Customs standard to implement provisions dealing with reduced data requirements and electronic submission of declarations and supporting documents. It is a major effort within WCO to forge data element and syntax standards for customs data.

The CDM is based on the following basic principles and best practices:

  • Business process modeling - The work of the Customs Data Model includes the analysis and modeling of the procedures and processes contained in the revised Kyoto Convention.
  • Use of EDI and e-commerce technology - The Data Model for the various Customs procedures and processes is geared exclusively to the requirements of an automated environment using e-commerce technologies. The Data Model therefore forms the basis for the development of common electronic messages (Cargo and Goods declarations for import and export) on the basis of international standards such as UN/EDIFACT 1 or XML 2. This requires the development of common message structures for both the Cargo and the Goods declaration (import and export), which are compatible with relevant commercial information flows.
  • Uniform data requirements - Uniform data requirements are key to Customs control and are crucial to trade facilitation. For this reason the harmonization of the data requirements for import and export, creation of common definitions and standardization of the data content and its format are essential building blocks for the Customs Data Model.
  • Segregation of data requirements - The Customs Data Model also covers simplified procedures as described in the revised Kyoto Convention. This includes, in particular, the two-step procedure at import, where Customs administrations release the goods on minimum information required for control purposes and perform other administrative duties such as duty/tax collection and collection of trade statistics based on complementary information submitted after the release of the goods.
  • Seamless transaction - The Customs Data Model also follows the concept of a seamless data flow, where export and import data requirements are being aligned and the respective electronic declarations share the same structure. This should allow traders to exchange information more economically and enable the importer to utilize the export information as the basis for the import formalities.

Single Window Environment

The WCO Customs Data Model also aims to include other governmental regulatory requirements in order to establish a single window environment. This may allow traders to exchange information only once with a single official body, preferably Customs, to fulfill all regulatory requirements related to an import or an export. This work will require the involvement of other regulatory authorities and international bodies in the work of the WCO Customs Data Model.

A3. United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT)

UN/CEFACT was established in 1996 in response to new technological developments and the need to make better use of available resources, and is open to participation from U.N. Member States, inter-governmental organizations, and sectoral and industry associations recognized by the Economic and Social Council of the United Nations. The Centre's objective is to be "inclusive" and it actively encourages organizations to contribute and help develop its recommendations and standards. Its mission is to improve the ability of business, trade and administrative organizations, from developed, developing and transitional economies, to exchange products and relevant services effectively - and so contribute to the growth of global commerce.

Of particular relevance to this Concept, the focus of UN/CEFACT is the worldwide facilitation of international transactions, through the simplification and harmonization of procedures and information flows. Namely, UNTDED - the Data elements in the United Nations Trade Data Elements Directory (UNTDED) are used in segments of the present United Nations Trade Data Interchange Directory (UNTDID) and are also, in a condensed form for this purpose, included in a special directory (UNEDED). As this structure pertains to the ISO 24533 concept, the data dictionary will fall within the domain of UNTDED, and the message set will be included within UNTDID.

To increase its effectiveness, UN/CEFACT actively coordinates with other international organizations such as the World Trade Organization (WTO); the World Customs Organization (WCO); the United Nations Conference on International Trade Law (UNCITRAL); and the United Nations Conference on Trade and Development (UNCTAD). Many of these organizations participate directly in UN/CEFACT's work. Since its work has broad applications beyond global trade, UN/CEFACT recognizes the need to secure coherence, particularly in electronic commerce methods. To do this, it meets regularly with other interested parties, such as the International Organization for Standardization (ISO), with which the Centre also has a Memorandum of Understanding.

The purpose of the UN/CEFACT's International Trade and Business Processes Group (TBG) is to be responsible for business and governmental business requirements and content. This is achieved by initiating developments in the areas of process analysis, best practices, and international trade procedures. Where appropriate the UN/CEFACT Modeling Methodology is used to support the development of trade facilitation and electronic business solutions.

TBG3

TBG3 has the primary mission to identify EDIFACT standard message requirements for the transfer of transport data and to develop and maintain United Nations Standard Messages (UNSM's) for transport and logistics purposes, for example:

  • IFTM series -International Forwarding and Transport Messages
  • IFCSUM -International Forwarding Consolidation Summary
  • Coxxx series -Containers Movements Messages

In the context of Internet emerging technologies, TBG3 has now to develop and maintain from the basis of EDIFACT directories business models, semantics, and syntax neutral content to be used with XML , including business object libraries and XML DTDs/Schemas. The aim is to provide users a migration path from EDIFACT models and messages to these new technologies. For this purpose, the Group has participated actively in the UN-CEFACT/OASIS ebXML initiative in developing the business processes and core components for the transport domain.

TBG3 also liaises with relevant ISO, UN and CEN Committees, and international transport organizations such as IATA (International Air Transport Association), ICS (International Chamber of Shipping), IMO (International Maritime Organisation), UIC (Union Internationale des Chemins de Fer ), IRU (International Road Union ), and FIATA (Federation Internationale des Auxiliaires de Transport et Assimiles). Other relevant parties TBG3 deals with to ensure that all developments are properly monitored and coordinated, and that working arrangements regarding the division of work items are made where necessary, are SMDG (User Group for Shipping Lines and Containers Terminals), ISA (Information System Agreement), and X12I (Transport Group).

TBG4

The Customs Domain Group (TBG4) is responsible for the development and maintenance of EDI messages exchanged between Trade and Customs. Messages to be developed are based on the Revised Kyoto Convention (on the simplification and harmonization of customs procedures) and will be developed in the context of trade facilitation according to the principles established by CEFACT as stated in R.650. Therefore, they shall take into account principles of best business practice from within the international customs administrations and advice from other relevant groups in UN/CEFACT. This includes messages such as:

  • Customs Cargo Report Message (CUSCAR)
  • Customs Declaration Message (CUSDEC)
  • Customs Express Consignment Declaration Message (CUSEXP)
  • Periodic Customs Declaration Message (CUSPED)
  • Customs Conveyance Report Message (CUSREP)
  • Customs Response Message (CUSRES)
  • Passenger List Message (PAXLST)
  • International Movement of Goods Governmental Regulatory Message (SANCRT)
  • Value Added Tax Message (VATDEC)
  • The WCO Customs Data Model

EDIFACT

EDIFACT is the United Nations rules of Electronic Data Interchange for administration, commerce and transport. They comprise a set of internationally agreed standards, directories and guidelines for the electronic interchange of structured data, and in particular that related to trade in goods and services between independent, computerized information systems.

A4. International Air Transport Association (IATA)

IATA is a trade association representing the air transport industry, with membership including hundreds of the leading airlines worldwide. IATA undertakes a variety of initiatives aimed at ensuring that both people and freight move efficiently throughout the worldwide air network. One such family of initiatives is the development and socialization of data messaging standards that foster the efficient operations of airlines that choose to adopt the standards, thus creating a level of interoperability at the information exchange level.

The specific standards initiative that is relevant to this CONOPS is IATA's Cargo Interchange Message Procedure (Cargo IMP). Its scope includes:

  • Message specifications and encoding of codes and abbreviations
  • Air waybill information
  • Accounting data
  • Airline-customs systems data interchange

This ISO 24533 standard intends to be consistent with the Cargo IMP air waybill message set at the data element level. Until initiatives to harmonize the Cargo IMP messages with the WCO are completed, however, there could be discrepancies. Air carriers and air freight forwarders who use Cargo IMP's air waybill message would require a implementation of a translation service, but otherwise successfully use both the standard and with IMP message.

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