Step 1. Learn about document and data requirements and why they constitute a barrier to trade.
Rationalise Documents and Data Requirements
Cross-border movement of goods involves a substantial information exchange between the participating parties. The information is through trade documents in paper and electronic format. These trade documents contain multiple data elements that provide information on issues such as name and address of the import/exporter, means and mode of transportation, address, and description of goods etc.
Many of the trade documents and the data elements they contain are defined and prescribed by national and international regulatory requirements in fields such as health, consumer protection, safety, tax and revenue, trade policy, environment and security.
Document requirements as trade barriers
As a consequence of multiple information requests by various agencies, traders and other intermediaries spent time and money to manage their data, obtain and file the documents, and exchange between each other. Public bodies likewise spend resources to collect, process and verify the information provided and issue new documents as a result of their procedures.
The reduction and simplification of data and documentary requirements is therefore a key aspect of trade facilitation reforms. The WTO Agreement on Trade Facilitation calls for Members to review and formalities and document requirement (Article 10.1). The World Bank Doing Business Study, for example, uses the number of documents requested as an indicator of the barriers to trade in a given country. A US journal quotes a practitioner as saying that a typical cross-border transaction involves filling in 35 documents and contacting 25 parties (UNCTAD figures from 2003). Errors in data and documents also lead to delays in clearance and processing.
Opportunities for simplifying the document and data flow
Different options are available to reduce data and document requirements and simplify the flow of documents and information. These include data harmonization and data standardization to capture and analyze information requirements, remove duplications and standardize data and map it to international standards.
Document alignment is another activity that helps reducing errors in filling out the documents and reduces the number and variety of documents requested.
And finally, use of information technology leads to a more efficient processing and exchange of data and documents between private parties and government authorities. Customs Automation and Single Window for Trade both offer the benefits of simplified data requirements and submission process. In fact the implementation of computer-supported processing systematically requires data standardization and harmonization as well as document alignment.
In order to identify these opportunities, it is important to first understand the whole information process, from the origin of the requirements to all manifestations at the traders’ end, and to identify who and which procedures and businesses are involved. Business Process Analysis is a useful tool in efforts to reduce documentary and data requirements.
