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United Nations Economic Commission for Europe Study on The Use of Standards and Codes for Interagency Exchange of Data and Documents for International Trade Author: Vladimir Korostelev Date: 16 March 2011 Place: Moscow The views expressed in the present paper are those of the author and do not necessarily reflect the views of the Secretariat of the United Nations. This study was prepared by Mr. Vladimir Korostelev, consultant, as part of the joint UNECE - Russian Federation project on publicprivate cooperation for trade facilitation and the Single Window. For further enquiries, please contact Mr Mario Apostolov, Regional Adviser, UNECE Trade, Palais des Nations, 431, CH-1211 Geneva 10, Switzerland, tel.: +41 22 9171134, fax: +41 22 9170037, e-mail: mario.apostolov@unece.org 1 EXECUTIVE SUMMARY 1. The following study on the use of standards and codes for interagency exchange of data and documents for international trade, their mutual compatibility and alignment with international standards and recommendations was carried out in the Russian Federation from 01.07.2010 until 31.12.2010 according under request from with UNECE. 2. This report contains the following sections: • status of development of the Russian Single Window model; • status of use of international systems for classification, coding and electronic data interchange in the Russian Federation; • analysis of the application of systems for classifying, coding and electronic data interchange for the management of foreign trade procedures by government agencies; • analysis of the application of systems for classifying, coding and electronic data interchange for the management of foreign trade procedures by non-governmental organizations; • proposals for the amelioration of the design of systems for classifying, coding and electronic data interchange for foreign trade, • conclusions and recommendations. 3. The analysis of the Russian Single Window model has shown that the largest project implementing interdepartmental information exchange is MIAIS (abbreviation in Russian, which stands for Interdepartmental Integrated Automated Information System). MIAIS was created on the basis of a “One Window” and “One-Stop-Shop” principle. The implementation of the MIAIS project has indicated the following gaps: • the absence of a single lead agency, • exclusion of foreign trade operators, as key providers of trade information, • lack of a feasibility study and business process analysis and, as consequence, the stage of harmonization of data and documents was neglected, • no analysis of international experience, no usage of international standards and recommendations. 4. The analysis of the implementation of systems of classifying, coding and EDI by government organizations has demonstrated that State authorities do not use in practice international standards and recommendations. for the responses to the survey of 14 State agencies indicated the following results: • more than half of the State agencies that participated in the survey have no systems of information interchange with commercial participants in foreign trade and have no plans to create such systems. 2 • most State agencies, which participated in the survey, have no information exchange systems and no plans to integrate with information systems of other State agencies. • none of the State agencies that participated in the survey use international standards and recommendations. Only one agency (the Ministry of Transport of Russia) gave information on its plans to use international standards. • most government agencies which participated in the survey do not consider necessary to streamline and harmonize trade forms and data. • almost all participants in the survey representing various State agencies confirmed the necessity of a nation-wide information resource on standards and recommendations. 5. The results of the study on the use of standards and codes for interagency exchange of data and documents for international trade have shown that some Russian companies actively apply international standards of electronic data exchange The study includes a list of examples of UNTDED, UN/EDIFACT, EANCOM 2002 (UN/EDIFACT D.01B) and XMLschemas application in retail trade (GS1-Russia association, ECR-Russia partnership), railway transport (EDI manual of the organization of cooperation of railways, the bilateral Russian-Finnish EDI project of RZHD (Russia) and VR (Finland)), sea container transportation (SMDG and UN/EDIFACT), and information exchange in the financial sector (statistical reporting of the Central bank of the Russian Federation). The implementation of international standards, UNECE recommendations, international codes and qualifiers is necessary for the international contacts of the Russian commercial organizations and companies with foreign partners. 6. The study leads to the following conclusions: • There is no uniform system of classification and coding in Russia, nor a single State enforcement agency responsible for the implementation of all-Russian codes and qualifiers. • International recommendations, standards, systems of classification and coding have no mandatory status in Russia. That is why international recommendations, standards, classifiers and coding systems are used, mainly, by commercial companies, noncommercial partnerships and associations. • As a result, in Russia there is no uniform State resource (portal, website etc) with actual texts of the all-Russian and international standards, codes and qualifiers translated into Russian. • One of consequences of the absence of a due status of international standards and recommendations is that Russian developers make no use of the declared creation of a 3 “One window”1 system. In particular, no feasibility study (as an important step in the development of a future “one window” system in the MIAIS project (including document and data harmonization) has not been developed. 7. On the basis of the above conclusions, the author of study makes the following recommendations about the use of standards and codes for interagency exchange of data and documents for international trade, their mutual compatibility and alignment with international standards and recommendations in the Russian Federation: • Inform government agencies in the Russian Federation on the expediency of starting a national Single Window project under the control of the Government (in order to ensure interdepartmental integration). • Ensure the participation of business companies (participating in foreign trade activities) in the national Single Window project. • Guarantee the alignment with international standards, recommendations, codes and qualifiers in the national Single Window project. • Create an up-to-date nation-wide information resource on standards, code lists and recommendations used in Russia, as well as international standards, recommendations, codes and qualifiers. 1 The “One window” term is used according to the Russian Government Executive Order N 622-p, dated 4 May 2008 which launched the process of MIAIS concept1 implementation. See section 1.2. 4 CONTENTS CONTENTS ..................................................................................................................................5 LIST OF TABLES .........................................................................................................................7 LIST OF ILLUSTRATIONS .............................................................................................................8 1. CURRENT STATUS OF THE RUSSIAN SINGLE WINDOW MODEL.............................................10 1.1. Definition of a Single Window system according to the international recommendations .10 1.2. Comparative analysis of UNECE Recommendation 33 and the Russian system model ...11 1.3. The role of EEA participants in a Single Window model ................................................15 1.4. Documents and data harmonization ................................................................................17 1.5. Conclusions on the current status of the Russian Single Window model .........................19 2. PREREREQUISITES FOR THE APPLICATION OF INTERNATIONAL SYSTEMS FOR CLASSIFICATION, CODING AND ELECTRONIC DATA INTERCHANGE IN RUSSIA ...................................................................................................................................22 3. ANALYSIS OF THE APPLICATION OF SYSTEMS FOR THE CLASSIFICATION, CODING AND ELECTRONIC DATA INTERCHANGE IN THE IMPLEMENTATION OF FOREIGN TRADE PROCEDURES BY GOVERNMENT AGENCIES ..............................................................................26 3.1. Status of the unified system for classifying and coding ...................................................26 3.2. All-Russian codes...........................................................................................................27 3.3. Application of international systems for electronic data exchange, classification and coding by government agencies.............................................................................................29 3.4. A single information resource of all-Russian codes.........................................................34 3.5. An example of application of international systems for electronic data exchange, classifying and coding by the Federal Customs Service .........................................................38 3.5.1. Application of systems for classifying and coding by Russian Customs ...................38 3.5.2. Application of systems for electronic data exchange by Russian Customs................41 3.6. Status of introduction of electronic data interchange in air freight services (IATA “efreight” programme) .............................................................................................................50 3.7. Example of application of international systems for electronic data interchange, classifying and coding in the Interagency automated information system MIAIS ..................55 3.7.1. Application of systems of classification and coding .................................................55 3.7.2. Harmonization of documents and alignment with international standards.................58 3.8. Results of the survey of federal agencies in 2010............................................................61 4. ANALYSIS OF THE IMPLEMENTATION OF SYSTEMS OF CLASSIFICATION, CODING AND ELECTRONIC DATA INTERCHANGE IN SUPPORT OF THE FOREIGN TRADE PROCEDURES BY NON-GOVERNMENTAL ORGANIZATIONS ..................................................................................68 4.1. Application of systems for classifying and coding in goods manufacturing. Association of Automatic Identification UNISCAN / GS1 RUS ..................................................................68 4.2. Application of systems for classifying and coding for goods delivery and in retail trade. Noncommercial partnership ECR-Rus...................................................................................72 4.3. Application of systems for classifying and coding in the transport sector........................81 4.3.1. An example of implementation in the railway network. Russian Railways –VR data exchange ...........................................................................................................................81 4.3.2. Development of a library of electronic data interchange standards by the Railways Cooperation Organization..................................................................................................82 4.4. Application of systems for classifying, coding and electronic data interchange for transportation of containerized freight ...................................................................................86 4.5. Application of systems for classifying, coding and electronic data interchange in banking and financial networks ..........................................................................................................91 5. PROPOSALS TO IMPROVE THE DESIGN OF SYSTEMS FOR THE CLASSIFICATION, CODING AND ELECTRONIC INTERCHANGE OF DATA USED IN FOREIGN TRADE; AIMED AT SYSTEM-WIDE 5 MUTUAL COMPATIBILITY AND CONFORMITY TO THE INTERNATIONAL STANDARDS AND RECOMMENDATIONS IN NATIONAL IT SYSTEMS .........................................................................97 5.1. Why refine national systems for classifying, coding and electronic data exchange.........97 5.2. Suggestions for improvement of the State systems for classifying, coding and electronic data interchange using a Single Window system .................................................................105 6. CONCLUSIONS AND RECOMMENDATIONS ...........................................................................112 6.1. Conclusions based on the results of the research...........................................................112 6.2. Recommendations based on the results of the study......................................................114 ANNEX I. An example of document mapping from Customs Declaration (SAD) paper form to standard data elements of UNTDED 2005 & UN/EDIFACT D.02A........................................116 6 LIST OF TABLES Table 1 - The comparative analysis of requirements of Recommendation No33 and MIAIS concept ..................................................................................................................................13 Table 2 - List of all-Russian codes of technical and economic information................................27 Table 3 - Status of harmonization of the all-Russian codes with UNECE’s recommendations ...31 Table 4 - Codes and reference data lists used for Customs needs...............................................38 Table 5 - List of messages for electronic declaration (FTS Russia)...........................................47 Table 6 - MIAIS directories and codes structure........................................................................56 Table 7 - Questionnaire on the application of standards and codes in departmental information systems ..................................................................................................................................61 Table 8 - Results of the survey of federal authorities carried out by the Ministry of Economic Development (MED) of Russia ..............................................................................................63 Table 9 - Answers of the federal authorities to the question about application of standards and codes in departmental information systems. DATA FROM THE RESPONSES OF STATE AGENCIES THAT HAVE ANSWERED THE QUESTIONS ...............................................66 Table 10 - List of EANCOM 2002 standard messages...............................................................70 Table 11– An example of segment QUANTITY (QTY) structure in UN/EDIFACT syntax.......74 Table 12 - List of UN/EDIFACT and XML ECR-Rus standard messages .................................75 Table 13 - International Recommendations in EANCOM..........................................................76 Table 14 – Example of implementation of international codes and qualifiers (from the ECR-Rus “Master Data of articles. Version 1.0” User Manual)..............................................................77 Table 15 - Application of international codes and qualifiers ......................................................83 Table 16– Application of international codes and qualifiers in the SMGS consignment note and CIM/SMGS consignment note (UNSM IFTMIN)...................................................................84 Table 17– List of SMDG recommendations on implementation of UN/EDIFACT standard messages for maritime transport .............................................................................................88 Table 18 - UN/EDIFACT international messages used by Russian container terminals .............90 Table 19 - The example of how to specify the type of the document with the help of UN TDED data elements .........................................................................................................................98 Table 20 - The example of application of codes in the electronic message “ORDER” ...............98 Table 21 - Documents that should be provided at arrival in the Russian port of Kaliningrad according to the FAL Convention, 1965 and to the requirements of Russian authorities .......100 Table 22 - The increase of the number of document forms, required for registrations of a tanker arriving in the Russian port of Novorossiysk ........................................................................101 Table 23 - Data in the new document adopted by the Ministry of Transport “Module for Registration of Ship Arrivals and Departures” duplicating data in the IMO FAL-65 forms...104 7 LIST OF ILLUSTRATIONS Figure 1: A Single Window based on the Single Authority model ............................................12 Figure 2 Interaction of State and business organizations in a Single Window model.................16 Figure 3 Russian model of Single Window”.............................................................................19 Figure 4 UN/EDIFACT Directories Library on the UN/CEFACT web site ..............................23 Figure 5 Core Component Library on the UN/CEFACT web site .............................................25 Figure 6 All-Russian Codes on the Rosstat website ..................................................................35 Figure 7 Information about All-Russian Code Changes ............................................................36 Figure 8 Distribution of “pirated” versions of standards and codes...........................................37 Figure 9 List of data for advance information (fragment) .........................................................43 Figure 10 Sets of electronic document formats on the web-site of the Federal Customs Service of the Russian Federation .......................................................................................................44 Figure 11 The sequence of introduction of “e-freight” according to the IATA methodology.....52 Figure 12 Fragment of the IATA report on “e-freight”: current status in different countries of the world .....................................................................................................................................54 Figure 13 Main menu of EANCOM 2002 Manual....................................................................69 Figure 14 Diagram of a QTY data element which corresponds to QTY segment in XML syntax and has the same name...........................................................................................................74 Figure 15 Example of QTY Data Element in XML syntax .......................................................75 Figure 16 Example of financial transactions using UN/EDIFACT............................................92 Figure 17 A fragment of UN/EDIFACT GESMES message of the Russian Central Bank ........93 Figure 18 International and “Russian” EDI standards ...............................................................95 Figure 19 The fragment of CommerceML specification with “Russian” tags............................96 8 ABBREVIATIONS ASU TK B2B B2G CBP CCL DB DLA EANCOM ECR EDIFACT eDoc e-Customs e-freight EEA EMISS ETC FTS FZ G2G GCB GMDSS GS1 HLA HS IATA ID IISVVT INCOTERMS ISO ITDS KSA KTS MIAIS MINEC OSJD SMGS TDED TDT UCR UMM UML UN USAID UN/CEFACT UNECE UN/EDIFACT UNSM UNTDED VIAIS WCO XML XSD Automated Control System of Transport Complex Business -To-Business Business-To-Government US Customs and Border Protection Core Components Library Data Base Detailed Level Assessment GS1 (EAN International) standard for EDI based on UN/EDIFACT Efficient Consumer Response Electronic Data Interchange for Administration, Commerce and Transport Electronic Documentation form Electronic Customs Electronic Freight External Economic Activity Uniform Interdepartmental Information-Statistical System Enabling Technology Committee Federal Customs Service Federal Law Government -To- Government Government Controlling Bodies Global Maritime Distress and Safety System The name of global article numbering association (formerly EAN International) High Level Assessment Harmonized System International Avia Transport Association Identifier Customs Union Integration Information System for mutual and external trade International commerce terms International Standard Organization International Trade Data System Automated Facilities Complex (MIAIS term) Customs Union Commission Interdepartmental Integrated Automated Information System Ministry of Economics Development and Trade Organisation for Co-operation of Railways (Organizacija Sotrudnichestva Zeleznih Dorog) Agreement on International Goods Transport by Rail Trade Data Elements Directory Technical Development Team Unique Consignment Reference Universal Modelling Methodology Unified Modelling Language United Nations United States Agency for international Development United Nations Centre for Trade Facilitation and Electronic Business United Nations Economic Commission for Europe United Nations standard for Electronic Data Interchange for Administration, Commerce and Transport. The only global standard for EDI United Nations Standard Message United Nations Trade Data Elements Directory Service information and analytical system World Customs Organization eXtensible Markup Language XML Schema Definition 9 1. CURRENT STATUS OF THE RUSSIAN SINGLE WINDOW MODEL 1.1. Definition of a Single Window system according to the international recommendations According to UNECE Recommendation No. 33 the main purpose of building a Single Window system is “to enhance the efficient exchange of information between trade and government2”. The term “trade” in this case means “companies” including “exporters and importers, freight forwarders, shipping agents, Customs brokers, transporters, carriers and other parties directly involved in the movement of goods3.” In the Russian Federation, the term “participants of External Economic Activity” (EEA participants) is used and hereafter we shall use this term for the purposes of this study. Recommendation 33 notes that “companies involved in international trade have regularly to prepare and submit large volumes of information and documents to governmental authorities to comply with import, export and transit-related regulatory requirements. This information and documentation often has to be submitted through several different agencies, each with their own specific (manual or automated) systems and paper forms. These extensive requirements, together with their associated compliance costs, can constitute a serious burden to both governments and the business community and can also be a serious barrier to the development of international trade. 4 ”. Therefore the establishment of a Single Window system can have many advantages both for the federal authority and EEA participants. According to the document UN/CEFACT “Guidelines on Establishing a Single Window”5 the introduction of the specified system will have the following advantages for State bodies (federal authorities) and commercial companies (EEA participants): Benefits for government • More effective and efficient deployment of resources • Correct (and often increased) revenue yield • Improved trader compliance • Enhanced security • Increased integrity and transparency Benefits for trade 2 UN/CEFACT Recommendation No.33, page 1 UN/CEFACT Recommendation No.33, Section 1 4 UN/CEFACT Recommendation No.33, Section 3 5 UN/CEFACT Recommendation No.33, Section 4 3 10 • Cutting costs through reducing delays • Faster clearance and release • Predictable application and explanation of rules • More effective and efficient deployment of resources • Increased transparency Within the context of Recommendation 33, “a Single Window is defined as a facility that allows parties involved in trade and transport to lodge standardized information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements. If information is electronic, then individual data elements should only be submitted once.”6 At present in Russia some characteristics of a Single Window system can be identified in the Interdepartmental Integrated Automated Information System (MIAIS) developed under order of the Russian Federal Government. In this study, we will analyze MIAIS as the Russian system model. 1.2. Comparative analysis of UNECE Recommendation 33 and the Russian system model MIAIS (Russian abbreviation of the full name, which can be translated as Interdepartmental Integrated Automated Information System of the federal authorities exercising control functions at the border-crossing points at the national border of the Russian Federation) is being developed in conformity with the Russian Government’s Executive Order N 622-p, of 4 May 2008, which launched the process of implementing the MIAIS concept7. The purpose of developing MIAIS is not to create a Single Window system, but to create a “One Window” system and a One-Stop-Shop mechanism: “the Interdepartmental system will provide8 responses to the following issues: - organization of the functioning of control bodies on the principles of One Window (the information on passengers and goods is provided only once) and One-Stop-Shop (integrated State control); - transition of interdepartmental document exchange to electronic format; - establishing information interchange among control bodies on the basis of information and communication technologies (ICT) and the use of legally binding electronic documents; 6 http://www.UN/ECE.org/cefact/recommendations/rec33/rec33_trd352r.pdf “The Conception of creating of the interdepartmental integrated automated information system of the federal authority controlling checkpoints of the Russian Federation national frontier, sanctioned by the Russian Government Executive Order N 622-p, dated 4 May 2008”, hereinafter – MIAIS conception 8 See “Goals and objectives of the interdepartmental system” in MIAIS conception 7 11 - data protection according to the legislation of the Russian Federation”. This definition indicates that MIAIS is mainly intended for solving problems of automation of the operation of control (fiscal) bodies at the frontier. Probably the terms “One Window” and “One-Stop-Shop” are based on the experience of crossing the land frontier by road transport, when the driver of a vehicle submits all documents necessary for the control in only one window, behind which there is an employee of only one supervising body. And when this procedure is completed, supposedly there would be no more control procedures (“One-StopShop”). The specified mechanism corresponds to the characteristics of the basic model of a Single Window: “the unified body receives the information in paper or electronic form, distributes this information among all related State bodies and coordinates control measures in order to prevent obstacles in a logistical chain”. See the picture 1: Figure 1: A Single Window based on the Single Authority model The Russian Government Decree No1057 9 of 29 December 2008 sanctioned “The Regulation on the interdepartmental integrated automated information system of the federal authorities exercising control functions at border-crossing points on the Russian Federation State frontier” (hereinafter Regulation on MIAIS). For the purposes of the this study, we shall do a comparative analysis of some texts in the 9 Russian Government Decree No1057 of 29 December 2008 “On the adoption of the Regulation on the interdepartmental integrated automated information system of the federal authorities exercizing official control at border-crossing points on the State frontier ot the Russian Federation. 12 UNECE Recommendation 33, in the MIAIS Concept, in the Regulation on MIAIS, and in the documents on the MIAIS tender published on “the official web-site of the Russian Federation providing the information on government contractual works” - www.zakupki.gov.ru. In spite of the fact that the model of a Single Window based on the functioning of a “unified body” corresponds to the MIAIS model, other characteristics of the developed system differ from the positions of Recommendation 33 (see the table 1): Table 1 - The comparative analysis of requirements of Recommendation No33 and MIAIS concept No 1 Single Window Parameter The purpose (UNECE Rec.33) One Window of MIAIS To increase efficiency of information To maintain “effective boundary interchange between commercial and Customs control on organizations and government checkpoints of the Russian bodies. Federation frontier and in cases established by international contracts… and other types of control10”. 2 Lead agency A Single Window is, as a rule, There are several lead agencies: managed centrally by the lead “the government’s customer- agency. coordinator is the Ministry of Information Technologies and Communications of Russia11” “The operator of the bordercrossing points segment is the Federal Agency for State Border of the Russian Federation12” “One Window authorities can be assigned to one of control bodies and the most reasonable 10 MIAIS Concept. Goals and objectives of the interdepartmental system MIAIS Concept. Govermnent procurement agencies for the establishment of the interagency system. 12 Regulation on MIAIS. Participants of interdepartmental information interaction. 11 13 Tender on developing MIAIS segment for a sea border-crossing point. 07514067. MIAIS.Section СП.04.ЧТЗ.01.00, Sub-section 3.4. 13 preference would be the Federal Customs Service” 13 3 Information The information supplier is the EEA “9. The control bodies are supplier participant. A Single Window information suppliers and provides a trader with the uniform users15”. channel where the latest places only once all information and documentation necessary for all official bodies14” 4 Feasibility The “Preparation of a Feasibility MIAIS developing stages do not Study of the Study of the project is a basic cover preparation of the project. element of the development of a Feasibility report. 16 Single Window system ”. Implementation process began in 2008 starting from “developing resources and technological facilities for nation-wide information centre17”. 5 Data and While preparing the Feasibility Data and documents structure documents Study, “studies of a current set of harmonization has not been harmonization commercial papers are being carried realized. For example, the “list out and decisions whether they of documents necessary for the should be unified, coordinated and/or official procedure of import simplified are being made... It is also (export) on a sea checkpoint” decided what data are required; what spreads on 9 pages.19 methods and formats for their submitting (electronic (EDI, XML, other?) or paper form) should be accepted18” 6 14 Application of “The minimum data set including National formats are accepted as international the format, data fields and data the standard: “As far as the basic standards elements should be coordinated with elements of the integration UN/CEFACT Rec.33. Guidelines on establishing a Single Window Regulation on MIAIS . Participants of interdepartmental information interaction. 16 UN/CEFACT Rec.33. Part Two. Annex B 17 MIAIS Conception. Stages of initiation, functioning and development of interdepartmental system 18 UN/CEFACT Rec.33. Part Two. AnnexB 19 Tender on developing MIAIS segment for a sea checkpoint. Subsection 3.3, Tables 4, 5. 15 14 all parties. This set should segment should be realized on correspond to international standards the basis of the all-Russian (for example, UN TDED/ISO and to government information centre, the data model of the World Customs the development of the MIAIS Organization)20”. integration segment should include application of standard technologies and methods that the Federal information centre imposes on the integrated automated information system. The main part of requirements on standardization of integrated automated information systems includes the following positions: - data exchange should be performed in XML format21; …” 1.3. The role of EEA participants in a Single Window model As noted above, according to UNECE Recommendation 33, a Single Window system is created “in order to improve effective information interchange between commercial organizations and the State bodies”. Commercial organizations are understood “as exporters and importers, shippers, forwarding agencies, Customs brokers, carriers and other parties directly related to goods circulation”. To designate the above-mentioned business representatives we shall use the term “EEA participants” (Foreign Trade Activities). The analysis of the MIAIS documents indicates that the Russian interdepartmental information system is developed without the participation of business organizations. The EEA participants are omitted from the MIAIS documents at all – neither among information suppliers, nor among the beneficiaries of the systems. The main scheme of a Single Window can be represented in the form of the letter “T” where the horizontal line designates information interaction among State bodies (federal 20 UN/CEFACT Rec.33. Section Two. Annex B Specific proposal draft on IIAIS segment. 07514067.MIAIS.CI.CHTZ.01.00, Subsection 4.1.12, Requirements to standardization and unification 21 15 authorities), that is “G2G”22, and the vertical line designates interaction between the State and business organizations (EEA participants), it is “B2G”23. The EEA participants are information suppliers in the “One Window” system. State bodies (federal authority) exchange information, originally received from EEA participants, internally and with business organizations (see the picture): Figure 2 Interaction of State and business organizations in a Single Window model The lack of a vertical component (B2G) in the Single Window scheme, as evident from,Fig.2 will lead to non-operability of the whole system. It is EEA participants who possess vehicles, cargoes, and goods, which cross the frontier. EEA participants submit documents for inspection to the State control bodies (passengers’ passports, shipping and transportation documents, certificates, etc.). On the basis of the data of EEA participants information systems, the State control bodies could obtain preliminary information about the expected date and time of vehicles arrival (trains, planes, sea ships, etc.), about cargo description, dangerous goods, lists of passengers, crew, etc. In the description of the Russian “One Window” in the MIAIS system, all these issues are referred to activity of the State bodies. Section III of the Regulation on MIAIS (sanctioned by Governmental Decree № 1057 of the Russian Federation of 29 December 2008) stipulates that: “8. Participants of interdepartmental information interaction are information suppliers and users and operators of the integration segment, departmental segments of control bodies, the checkpoints segment and the operator of all-Russian governmental information centre. 9. Control bodies are information suppliers and users” 22 23 Government-toGovernment Business-to-Government 16 In our opinion, the specified thesis can impede the development of MIAIS. Input of data into MIAIS, namely, transition of the information from a set of documents (paper or electronic scanned copies) received from EEA participants will be a very complicated process. Depending on the type of transport, an extensive list of documents should be submitted to the State control bodies. For example, in “the specific draft proposal on development of the sea checkpoint segment.MIAIS (07514067. MIAIS.СП.04.CHTZ.01.00.” the list of documents “that should be submitted for checking of a prior notification on goods and cargoes export when persons arrive and leave the territory or transit over the territory of the Russian Federation” consists of 9 pages (subsection 3.3 “A submitted set of documents”). If the extensive list of the documents required by the State control bodies would not be optimized, and if the federal authority would try to file the information into a Single Window system on their own, the process of filing primary data into MIAIS will require much time, and the employees of the State bodies will have to delay their direct duties. As a consequence, it can lead to lower capacity of border-crossing points and to long queues of vehicles waiting to cross the frontier. For this reason, implementation of a Single Window on the frontier will not speed up the movement of transport, cargo and passenger flows. 1.4. Documents and data harmonization In the process of developing a Single Window system it is necessary to harmonize the list of required documents and data. The oversized list of documents required for inspection (for example, the requirement for a list of documents spreading on 9 pages for sea border-crossing points - see the previous subsection) is explained by the fact that each State control body, independently of others, demands from the EEA participant the same information. In general, the documents designed by various departments differ only in their form, but 80% of the data they contain is repeated. That is why the development of a Single Window system has no sense without analyzing the whole list of documents required from EEA participants and harmonizing (sorting) the amount of required forms and data elements. Such an analysis shall be carried out within the framework of the Feasibility Study, which precedes the processes of development of a Single Window system. Negotiating a minimum data set is an important part of the Feasibility Study. The procedure of data harmonization, including the improvement of classifying and coding systems, is analyzed in UNECE Recommendation 34 on “Data Simplification and Standardization for International Trade”. 17 UNECE Recommendation 34 (appendix A) contains examples of data harmonization from the relevant Single Window project was realized in the USA: • The initial concept of the International Trade Data System (ITDS) was a result of a special task fOSJD e, the Future Automated Commercial Environment Team (FACET). • Among the key FACET recommendations was the use of the same data for import and export processing and integrated government oversight of international trade processing. • As a result of the FACET Report, the Vice-President directed the US Department of the Treasury to establish the ITDS Project Office. The Project Office was guided by an interagency Board of Directors and was staffed by representatives of Customs (Customs and Border Protection, CBP), Participating Government Agencies (PGA’s), government oversight bodies, and contractors (consultant) personnel. • The Project Office reviewed of all forms required by various agencies assembled an inventory of data elements collected by trade agencies. The data inventory revealed the redundancy and duplication of data collected by trade agencies on over 300 forms consisting of nearly 3,000 data fields. Over 90% of this information was redundant. • Through a process of analysis and harmonization, ITDS established the Standard Data Set (SDS) consisting of less than 200 data elements. This is in sharp contrast to the original 3,000 data fields. In the process of development of the Russian MIAIS concept and draft proposal, the tasks of data harmonization and elimination of excess and duplicated data were not addressed. As a consequence, in the documents on MIAIS very little attention is paid to the development of the reference data unified system: the unified data model demands the unified interdepartmental system of reference data. In a situation of persistent departmental dissociation of document formats, each federal authority uses only its own information resources of reference data. Unified systems for classifying and coding are the basis of interdepartmental information interaction. At the same time, intergovernmental information exchange remains impossible without the application of the international standards on data, codes and qualifiers for electronic exchange. The experience of Russian developers participating in the implementation of the “Electronic Government” project, confirms the important role that reference data has in interdepartmental system integration: • “The traditional problems for all State authorities are the unification of various manuals, registries, registers, cadastres, etc.24” 24 “Finans” magazine, № 37 (368) 11.10-17.10.2010 - http://www.finansmag.ru/offline/num368/ 18 • “The development of unified standards for coding and classifying unified interaction interfaces defines to a large degree the labor intensiveness necessary for integration. … In our projects about 50-70 % of labour expenditures are spent on such a kind of works25”. 1.5. Conclusions on the current status of the Russian Single Window model When comparing the characteristics of the MIAIS with the requirements of UNECE Recommendation 33, the Russian Single Window model can be represented as follows (see Fig.3): G2G G2G Decisions G2G FEDERAL LEVEL ФЕДЕРАЛЬНЫЙ УРОВЕНЬ State Authorities ФЕДЕРАЛЬНЫЙ УРОВЕНЬ State Authorities State Authorities BUSINESS B2G B2B TRANSPORTERS FORWARDERS BUSINESS B2G G2G, B2B BUSINESS Airport Community Service BUSINESS Rail TR. TRANSPORTERS G2G, B2B B2G B2B G2G, B2B Ground Frontier Community Service B2G B2B Sea port Community Service B2G B2G B2G B2G STATE INTEGRATION INFORMATION SYSTEM (G2G) Single Window BUSINESS Figure 3 Russian model of Single Window” The given model reflects both the interaction of the State bodies internally, i.e. G2G relations (Government-To-Government) in the framework of MIAIS, and the interaction of EEA participants with State control bodies, i.e. B2G relations (Business-To-Government). EEA participants are included in the diagram of the Russian model as the unique sources of the primary data on vehicles, cargoes and passengers required by State control bodies and other federal authorities, On the basis of the comparative analysis of requirements of UNECE Recommendation 33 and the MIAIS concept (see Table 1), we can draw the following conclusions: 25 ibidem 19 1. At present, MIAIS is the largest project on realization of interdepartmental information exchange 2. The Realization of a Russian Single Window project (within MIAIS) contains the following disadvantages: • lack of single lead agency, • disregard for the inclusion of EEA participants in MIAIS as the key suppliers of information, • missing the stage of drafting a Feasibility Study and, as a consequence, missing the stage when documents and data structure are harmonized, • missing analysis of international best practice and requirements of international standards and recommendations. However, regardless of the quality of processing of MIAIS project documentation has at present, there is no doubt that data harmonization; streamlining lists of required documents and international standards applied in the Russian model of One Window are issues of the near future. These problems will surely arise before the developers of MIAIS. At the moment, a Single Window project is also planned within the Commission of the Customs Union of Belarus, Kazakhstan and Russia, The Russian Federation, the Republic of Kazakhstan and the Republic of Belarus, which are developing the Integrated information system of foreign and mutual trade (IISVVT in Russian abbreviation), according to “the Agreement on the launching, functioning and development of the Integrated information system of foreign and mutual trade of the Customs Union”: “In order to create favourable conditions for: market participants of different countries, maintenance of effective regulation of foreign and mutual trade over the common territory of the Customs Union, realization of Customs, tax, transport, and other State control, by using information and communication technologies, maintenance of economic integration processes, organization of effective functioning of the Interstate Council of the Eurasian Economic Community (the Customs Union superior body) and the Customs Union … the parties create and develop the integrated information system of foreign and mutual trade and provide its functioning26”. The project of establishing the IISVVT was planned for the period until 2012. Therefore, it is too early to review its accomplishments and characteristics when the information system has not been created yet. However, the application of international standards and recommendations in IISVVT is confirmed in the documents. The Decree of the Customs Union Commission of 30 May 2007 26 http://www.tsouz.ru/Docs/IntAgrmnts/Pages/IISVVT.aspx 20 approves the document “Comparative and legal analysis of protocols drafts “On the use of a unified reference data set by the Customs services of the Member States of the Eurasian Economic Community (EAEC)” and “On the organization of exchange of preliminary information on goods and vehicles crossing the frontier” so that they are in conformity with the provisions of international contracts and national legislations of the Community. The specified document notes that: “The Development of unified systems for information coding is carried out on the basis of codes recommended by the United Nations Economic Commission for Europe (UNECE) and, starting from the first stage of development of the project – the organization of interagency information exchange, the activities of Customs services will be guided by the International Convention on the Harmonized System for the Description and Coding of Goods (1983), Recommendations 19 and 20 of the UNECE Working Group on the simplification of UNECE international trade procedures, and other international standards”. The purpose of this study is to analyze the current situation in Russia – how systems for classifying and coding, reference data, international standards for electronic data interchange in foreign trade are applied? It is necessary to plan maintenance methods that can provide interoperability of departmental and branch systems of reference data, and also their conformity with international standards and recommendations. 21 2. PREREQUISITES FOR THE APPLICATION OF INTERNATIONAL SYSTEMS FOR CLASSIFICATION, CODING AND ELECTRONIC DATA INTERCHANGE IN RUSSIA Development and support of international standards for classification, coding and electronic data interchange is performed by the UN Centre for facilitation of procedures and practices in administration, commerce and transport (UN/CEFAСT) working under the auspices of the United Nations Economic Commission for Europe (UNECE). UN/CEFACT supports and develops the international standard of electronic data interchange UN/EDIFACT and the international Trade Data Elements Directory (UNTDED). In addition UN/CEFACT accepted a number of international recommendations, including recommendations on international codes and qualifiers. The UNTDED (United Nations Trade Data Elements Directory) contains the detailed description of the basic data elements divided into 10 groups, where their exact name, the description and representation (the length, the quantity of symbols, line number and position number in basic forms of commercial documents of international organizations) are presented. It is issued once in several years and distributed also in a paper format (a booklet). The UNTDID (United Nations Trade Data Interchange Directory) is more frequently updated. Besides data elements, the UNTDID contains descriptions of data and objects components of a higher order - information segments and standard messages. The UN/EDIFACT is published twice a year and its designation includes the number of a year (2 figures) and of a half-year (A for the first semester, and B for the second semester) - see http://www.UN/ECE.org/trade/untdid/down_index.htm: 22 Figure 4 UN/EDIFACT Directories Library on the UN/CEFACT web site UN/EDIFACT is a set of international standards, directories and rules for electronic exchange of structured data (concerning, in particular, the area of commerce and service) between the independent computerized information systems. The concept “trade” has a wide interpretation here, including issues of transport-forwarding service, Customs, insurance, etc. In this sense, UN/EDIFACT is a system of international standards for commercial electronic data exchange. The abbreviation of the name means the following: UN/EDIFACT - United Nations Rules for Electronic Data Interchange for Administration, Commerce and Transport27] UN/EDIFACT and UNTDED have been developed by the UN/CEFACT Working group on the simplification of international trade procedures together with the Technical committee on standardization 154 (TC 154) of ISO. This work led to the establishment of international standards. The first version of UN/EDIFACT was published by ISO in October 1988 in 2 documents: • ISO 7372 - 86 “Trade data interchange. Trade Data Elements Directory. First edition. 1986-03-01” • ISO 9735 - 88 “EDI for administration, commerce and transport (EDIFACT). Syntax rules. 1988-07-15” The Gosstandart of the USSR issued in 1990-1991 two standards which were analogues of corresponding UN/EDIFACT: 27 http://www.UN/ECE.org/trade/untdid/texts/d100_d.htm 23 • GOST 6.20.1-90 “ELECTRONIC DATA INTERCHANGE IN MANAGEMENT, (ISO TO 9735-88) TRADE AND ON TRANSPORT (EDIFACT). Syntax rules”. Effective date: 01.01.92; • GOST 6.20.2-91 “ELEMENTS OF FOREIGN TRADE DATA” (ISO 7372-86) Effective date: 01.01.92. Thus, after State standards GOST 6.20.1-90 and GOST 6.20.2-91 were accepted, real prerequisites for the application in Russia of international systems for classifying and coding and systems of EDP international standards appeared. Since 2000, UN/CEFACT has guided the development of the Universal Modelling Methodology (UMM). Its basis is the application of Universal Modelling Language (UML). The development of information model of the various business processes is preceded by obligatory modelling, i.e. the development of diagrams in UML, according to the UMM methodology. Finally, UML diagrams of processes are the input data for generating electronic documentation forms (eDocs) and structures of electronic messages in XML and UN/EDIFACT syntax by means of special technology. In the process of generating structures of electronic messages (XML-schemas), a set of data elements is necessary. And the unified directory of basic data elements is necessary for generating messages based on UMM business models. Such a syntactically neutral directory was developed by UN/CEFACT and named Core Components Library (CCL). CCL is a library of “building blocks” for the future information models and structures of electronic messages and includes objects of two levels28: • at the bottom level - Core Components neutral in relation to business applied areas; • at the top level - Core Components intended for describing business-information entries. The elements of CCL exactly correspond to the UNTDED data elements. The library of CCL elements as well as of UNTDED is published twice a year on the web-site of UN/CEFACT –. http://www.UN/ECE.org/cefact/codesfortrade/unccl/CCL_index.htm: 28 UN/CEFACT Core Components Technical Specification. Version 3.0. 2nd Public Review, section 5.1 24 Figure 5 Core Component Library on the UN/CEFACT web site The Core Components Technical Specification has the status of international standard ISO 15000-5: ISO/TS 15000-5:2005 Electronic Business Extensible Mark-up Language (ebXML) – Part 5: ebXML Core Components Technical Specification, Version 2.01 The document ISO 15000-5 has not been translated into Russian yet, and the corresponding State standard GOST-R has not been adopted in the Russian Federation yet. The introduction of new (including international) standards and coding systems is a complex process related to the necessity to solve a great number of organizational and technical problems. If in private business companies this process can be initiated by the decision of the company management and can be carried out under its control, at the State level, the organization of simplification of interdepartmental business procedures, including the use of global best world practices, standards, and codes, demands an interdepartmental coordinating body – a national trade facilitation body29. The first such body in Russia appeared in 1993, when its creation was supported by the Ministry of foreign economic relations and Government Decree No1097-p of the Russian Federation of 20 June, 1993 established the UN/EDIFACT Interdepartmental Coordination Council on introduction of electronic data interchange systems in management process, trade and transport section (UN/EDIFACT) under the guidance of Interdepartmental 29 UNECE Recommendation 4: National Trade and Transport Facilitation bodies. ECE/TRADE/242 25 commission on UNECE affairs. Unfortunately, the UN/EDIFACT Interdepartmental Coordination Council was closed down after the reorganization of the Ministry of foreign economic relations in 1996. Therefore, after 1996 international systems for classifying, coding and electronic data interchange are used mainly by non-government organizations: commercial companies and noncommercial partnerships and associations. 3. ANALYSIS OF THE APPLICATION OF SYSTEMS FOR THE CLASSIFICATION, CODING AND ELECTRONIC DATA INTERCHANGE IN THE IMPLEMENTATION OF FOREIGN TRADE PROCEDURES BY GOVERNMENT AGENCIES 3.1. Status of the unified system for classifying and coding The development of systems for classifying and coding is an important condition to achieve standardization. The federal law “On technical regulation” No 184-FZ of 27 December 2002 names as one of the purposes of standardization the “creation of a unified system of classification and codification of technical, economic and social information, of the systems of catalogues of products (works, services), systems for maintenance of the quality of production (services), systems for the search and transfer of data, assistance on unification” (article 11). Rosstandard is the federal executive body responsible for maintaining the systems for classifying and coding. According to the Governmental Decree of the Russian Federation No294 of 17 June 2004 “On the Federal agency responsible for technical regulation and metrology”, the duties of the Federal agency on technical regulation and metrology (Rosstandard)30 “are to: 5.4.2. publish officially all-Russian codes on technical, economic and social information and to distribute them; 5.4.8. implement all-Russian codes on technical, economic and social information”. The federal agency on technical regulation and metrology (www.gost.ru) is a subsidiary body to the Ministry of Industry and Trade of the Russian Federation. There is no unified system for classifying and coding in Russia. The concept of a unified system for classifying and coding existed in the former USSR in the form of “The Unified 30 The term “Rosstandard” is sanctioned by Government Decree No 408 of the Russian Federation of 9 June 2010 26 System of Classification and Codification of Technical and Economic and Social Information” and was adopted in State standard GOST 6.01.1-87, but was not applied since 2003. The earlier unified system for classification and coding was replaced by the “All-Russian codes of technical, economic and social information in the social and economic area”. Government Decree No677 of the Russian Federation from 10 November 2003 stipulates: “to consider as stale the Governmental Decree No1212 NGR: R9905149 of the Russian Federation from 1 November 1999 “On the development of a Unified System of Classification and Coding of Technical and Economic and Social Information”. The main documents regulating the order of development, maintenance and application of all-Russian codes are: 1. Government Decree No677 of the Russian Federation of 10 November, 2003 “On allRussian codes of technical, economic and social information in the social and economic area”. 2. Rules of standardization PR 50.1.024-2005: “Fundamental rules and order of development, maintenance and implementation of all-Russian codes”. 3.2. All-Russian codes The all-Russian codes for technical, economic and social information are “normative documents which allocate the technical, economic and social information according to its classification (classes, groups, types, etc.) and their use is mandatory in the process of creation of State information technology systems and resources, and in interdepartmental information exchange. The procedure of development, acceptance, introduction, maintenance and application of all-Russian codes in the social and economic area (including in the fields of forecasting, statistical account, banking, taxation, interdepartmental information exchange, creation of information systems and resources) is defined by the Government of the Russian Federation.”31 The list of all-Russian codes of technical and economic information is approved by Government Decree of the Russian Federation No677 of 10 November, 2003. In the Annex to that Decree, 32 all-Russian codes (as amended in 2005, 2006 and 2008) federal executive authorities, responsible for their maintenance were specified: Table 2 - List of all-Russian codes of technical and economic information No 31 Title of the All-Russian code Federal executive body Article No 15 of the Federal Law No 184-FZ from 27 December 2002 “On technical regulation” 27 developing, maintaining and implementing the allRussian code 1 All-Russian code for standards (OKS) Rosstandard 2 All-Russian code for public services (OKUN) Rosstandard 3 All-Russian code for information on social protection Rosstandard (OKISZN) 4 All-Russian code for production (OKP) Rosstandard 5 All-Russian code for administrative documentation Rosstandard (OKUD) 6 All-Russian code for production and design documents Rosstandard (ESKD) 7 All-Russian code for fixed capital (OKOF) Rosstandard 8 All-Russian code for currencies (OKV) Rosstandard 9 All-Russian code for units of measurements (OKEI) Rosstandard 10 All-Russian code for information on population (OKIN) Rosstandard 11 All-Russian code for details produced by welding, soldering, Rosstandard pasting and thermal cutting (OKD) 12 All-Russian technological code for mechanical engineering Rosstandard components and instrument engineering (OTKD) 13 All-Russian technological code for assembly units of Rosstandard mechanical and instrument engineering (OTKSE) 14 All-Russian code for countries all over the world (OKSM) Rosstandard 15 All-Russian code for information on all-Russian codes Rosstandard (OKOK) 16 17 All-Russian code for government and administrative bodies Rosstat (the Federal State (OKOGU) Statistics Service) All-Russian code for administrative-territorial entities Rosstat (OKATO) 18 All-Russian code for enterprises and organizations (OKPO) Rosstat 19 All-Russian code for patterns of ownership (OKFS) Rosstat 20 All-Russian code for types of business entities (OKOPF) Rosstat 21 All-Russian code for types of economic activities, Minec (The Ministry of production and services (OKDP) Economic Development 28 and Trade) 22 All-Russian code for economic regions (OKER) Minec 23 All-Russian code for types of economic activities (OKVED) Minec 24 All-Russian code for major disciplines (OKSO) The Ministry of Education and Science of Russia 25 All-Russian code for disciplines of supreme academic qualifications (OKSVNK) 26 All-Russian code for basic vocational education (OKNPO) 27 All-Russian code for occupations (OKZ) The Ministry of Education and Science of Russia The Ministry of Education and Science of Russia The Ministry of Public Health and Social Development 28 All-Russian code for workers occupations, official The Ministry of Public employees posts and wage categories (OKPDTR) Health and Social Development 29 All-Russian code for minerals and underground waters The Ministry for (OKPIiPV) Protection of the Environment and Natural Resources 30 All-Russian code for types of cargoes, packages and packing Russian Railways materials (OKBGUM) 31 All-Russian code for water-power resources (OKGR) The Ministry of Energy 32 All-Russian code for territories of municipal entities Rosstat (OKTMO) The application of all-Russian codes is of vital importance in the design of the State information systems and resources, for interdepartmental information interchange, and in other cases specified in the legislation of the Russian Federation32. 3.3. Application of international systems for electronic data exchange, classification and coding by government agencies The Russian federal government, government bodies and enterprises should apply all32 Item 6 of Government Decree No 677 of the Russian Federation from 10 November 2003 29 Russian codes. According to the “Rules of standardization PR50.1.024-2005”, section 6: “allRussian codes should be applied in the social and economic area, including forecasting, statistical accounting and reporting, book keeping, banking, taxation, standardization, certification, official registration and registration of legal persons and individual entrepreneurs, education, public health services, and culture, by means of their use in legal acts in force in the social and economic area. The use of all-Russian codes is mandatory in the creation of State information systems and resources, in interdepartmental information exchange and in other cases specified by the legislation of the Russian Federation. All-Russian codes are used in legislative acts in the social and economic area for unambiguous identification of legal relationships“. International codes and classifications used for the above-mentioned purposes have no obligatory status in the Russian Federation. According to rules of standardization, in order for international codes and qualifiers to enter into force, they should be sanctioned only after they have been harmonized with allRussian codes: either by introducing them into the corresponding all-Russian code, or by developing a new all-Russian code on the basis of the existing international primary source (prototype). The Rules of standardization PR 50.1.024-2005 envisage the “harmonization of allRussian codes with the international (regional) classifications, interstate codes or international (regional) standards for classification33”. The lead federal agency on the implementation of all-Russian codes is the Federal agency on technical regulation and metrology (Rosstat)34. The lead organization on the development of all-Russian codes, their maintenance, official publication and distribution … is the federal State unitary enterprise “Standardinform”35. As far as each all-Russian code should be maintained by a federal agency responsible for its development and support, the development of every new all-Russian code (or the harmonization of an existing one) is initiated upon request from the interested federal agency. So, a necessary condition for any international code to obtain official status in the Russian Federation is the request of a federal agency, substantiated by a well-argumented report on the necessity of this code and a commitment on its translation, harmonization, maintenance and support: “The federal agency providing development, maintenance and application of an allRussian code directs offers on all-Russian code development to the Ministry of Industry and 33 Rules of standardization PR 50.1.024-2005, section 8 ibidem, item No 3.6 35 ibidem, item No 3.7 34 30 Energy of Russia, the Ministry of Economic Development, Rosstat and the Federal Agency on Technical Regulation and Metrology of Russia 36 . Rosstat and the Ministry of Economic Development of Russia should send their conclusions, within one month, to the Federal Agency on Technical Regulation and Metrology which directs the summary resolution to the Ministry of Industry and Energy of Russia. The Ministry of Industry and Energy of Russia, considering the received resolutions, makes a decision on the practical necessity to develop this all-Russian code, and informs the author of the proposal on this decision, sending, sending a copy to the Federal Agency on Technical Regu