Network of Trusted Networks Global data exchange between ports Richard Morton, Secretary General, IPCSA Ports 4.0, Tallinn, Estonia, 17 th May 2018

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1 Network of Trusted Networks Global data exchange between ports Richard Morton, Secretary General, IPCSA Ports 4.0, Tallinn, Estonia, 17 th May 2018 Vision: A neutral and trusted network Globally Connecting Logistics Use of existing IT Infrastructures not new ones APIs to connect Community Systems One stop shop for global view of track and trace Use of international standards Simplified User Authorization

2 WTO Trade Facilitation Agreement In December 2013, WTO members concluded negotiations on a Trade Facilitation Agreement The TFA entered into force once two-thirds of members have completed their domestic ratification process. 22 nd February 2017 The TFA contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appropriate authorities on trade facilitation &customs compliance issues.

3 WTO Trade Facilitation Agreement 3 articles consisting of 23 sections At least 8 relate to IT connectivity Source: Copyright Bureau Veritas 27 th September 2016

4 Reference:

5 Rate of implementation commitments by all WTO Members 59.7% Rate of implementation commitments today 6.9% rate of implementation commitments from June 2018 to February 2038 without capacity building support 10.4% rate of implementation commitments from June 2018 to February 2032 upon receipt of capacity building support 23.1% Rate of implementation commitments yet to be designated Reference:

6 TFA Links to Single Window Article 10.4 Single Window 4.1 Members shall endeavour to establish or maintain a single window 4.2 single submission of information 4.4.use information technology to support the single window. Section III - contains provisions that establish a permanent committee on trade facilitation at the WTO, require members to have a national committee to facilitate domestic coordination and implementation of the provisions of the Agreement 6

7 Single Window UNECE Recommendation 33 (under revision) Recommends Governments to establish Single Window for Cross Border Trade Defines features: one time submission..of standardized information and documents sharing of information amongst government agencies; coordinated controls and inspections of the various governmental authorities; Allow payment of duties and other charges; Be a source of trade related government information. Recommendations 34, 35 and 36 (draft) Projects Core Principles of Single Window Operations Source: UNECE, Tom Butterly, IPCSA Conference, 1 st June 2015

8 Reporting Formalities Directive 2010/65 and the current revision of the Directive Electronic Reporting of Ships in ports Electronic Reporting of additional regulatory requirements e.g waste Proposal for revision will be published any moment EU Single Window environment for customs Focused on customs formalities and involves stakeholders dealing with cross-border movement of goods To enable economic operators to electronically lodge, and only once, all the information required by customs and non-customs legislation for EU cross-border movements of goods. INCEPTION IMPACT ASSESSMENT - currently open for consultation until 1 st June Other Aspects European Perspective eidas, OLAF (2016) - authorities will be able to access new IT systems that record the physical movements of containers transported on maritime vessels and gather information on the goods entering, transiting and leaving the EU Source: UNECE, Tom Butterly, IPCSA Conference, 1 st June 2015

9 Port to Port exchange Given the context of WTO TFA, Single Window and European Perspectives thus: Ports will need to share and exchange data for : Electronic Reporting for regulatory requirements Efficient cargo movement within the whole supply chain IPCSA has developed its Network of Trusted Networks to exchange information globally Source: UNECE, Tom Butterly, IPCSA Conference, 1 st June 2015

10 The Issue: Visibility and lack of it Visibility is a critical competitive asset in the supply chain. The information must flow among the actors. However, the quality of the information is a challenge. The information is disseminated and fragmented in several points of the chain. Finding the most suitable and precise source of information is not an easy task in a global supply chain. The Ports (sea and air) play an important role in the supply chain acting in the first place as a transportation hub, but also as an information hub. PCS are informed about the physical and documentary events that happen in their area. However, the shippers and the logistics operator need to be aware of the events in other ports to obtain visibility of traffic flows end-to-end. The PCS interconnectivity can be an instrument to address these challenges in an effective way.

11 So Why IPCSA for NoTN? 37 members operating in over 40 Countries. 500,000 + users Estimated 20 bn + electronic messages a year Members currently handle the exchange of information for over 100 air and sea ports, this equates to over 400m TEU and 8bn tonnes of cargo IPCSA membership is open to: Air and Sea Port Community System Operators Air and Sea Port Authorities Single Window Operators International and Regional Organisations / Associations

12 IPCSA - data Sharing in a Global Environment

13 So what is a Port Community System? A Community System is not an IT project, but a change management project. In simple terms Provides for the electronic exchange of information in the supply chain for B2B, B2G and G2B. Trusted Third party Use international data model standards (UN/EDIFACT, WCO, ISO) and message formats (EDIFACT, CARGOXML, WCOXML etc.) First Community Systems in late 1970 s

14 The Port Community System a typical example SafeSeaNet Feeder State statistical Office Pilots Agent Ship Owner Customs Forwarder Consignee Railway Terminal PCS Consignor Riverboat/Barge Port Authority Cargo Ship n. Copyright dbh 2016 Authorities Container Terminal Veterinary Office Trucker Truck Company Rail Transport Company Hinterland Terminal

15 Current Situation Hub & Spoke Port Centric Monolithic Central Database Message System

16 NoTN - What and How to Exchange Public versus Private Data Survey or participants Vessel Status Container Status APIs (Application Program Interface) No current standards for API, IPCSA has developed its own for exchanging information Relatively easy to implement Standards Use of international standards

17 VISION: Network of Trusted Networks PCS as Service or Cloud Services Global Services Federation Microservices Distributed Database API

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19 Action Plan Maritime and Air Maritime Network Launch Mode neutral development STATUS: completed STATUS: ongoing Launch Air Network Technical Definition One to One MoU in Pilot Stage Technical Definition API API IT Development PC/CCSS Multilatera Agreement IT Development Pilots Evaluation / Amendments Roll Out Pilots Evaluation / Amendments Roll Out

20 Working Together to create practical International Standards for data sharing TC154 JWG8 中国国家交通运输物流公共信息平台 20

21 Global Data Sharing ISO TC154/JW8 LISS Logistics information Service Systems

22 International Standards A Must!! Multiple International Standards and Reference data Models: UN/EDIFACT Multimodal and Supply Chain Data Model UN/LOCODE WCO ISO GS1 What do they have in Common: CORE COMPONENT LIBRARY OF UN/CEFACT Links to UNTDED (ISO 7372) providing mappings to standardised UN Layout Forms

23 The Reality: Network of Trusted Networks IPCSA and NEAL-NET Cooperation IPCSA: China: Japan: Korea: PORTIC, Spain Ningbo Port Tokyo-Yokohama Port Busan Port Antwerp Port, Belgium Qingdao Port Kawasaki Port Kwangyang Port Trieste Port Italy Odessa Port, Ukraine Dalian Port Zhoushan Port Osaka Port Kobe Port Incheon Port Ulsan Port Portbase, Netherlands Wenzhou Port Yokkaichi Port Pyeongtaek Port Maqta Gateway, Abu Dhabi Jiaxing Port Niigata Port 1-STOP, Australia Qinzhou Port DBH, Germany DAKOSY, Germany Fangcheng Port Beihai Port ValenciaportPCS, Spain Zhuhai Port Bilbao Port, Spain PORTEL, Spain MCP, UK Israel Ports Soon to Come SEAL-NET

24 Richard Morton, IPCSA, Secretary General E: Associate Members