The Digital Standards Initiative (DSI) of the International Chamber of Commerce (ICC) has taken a significant step forward in revolutionising global trade by launching a comprehensive framework for end-to-end supply chain digitalisation. This new framework is the culmination of an 18-month in-depth analysis that examined all 36 key trade documents, aiming to streamline and standardise processes across the supply chain. By addressing the complexities of traditional, paper-based systems, the ICC's initiative paves the way for more efficient, transparent, and secure trade operations on a global scale.
Read the blog to learn more about how this framework is set to transform the future of supply chain management.
Breakthrough in Digital Trade and Data Alignment
The report unifies all the important trade documents into a single, integrated format, which, coupled with its interactive Key Trade Data Glossary, represents a significant development in digital trade. Data alignment is ensured by this integration, offering a direct route to interoperability and safe data sharing throughout the supply chain.
Under the direction of Robert Beideman, Chief Product Officer of GS1, the important Trade Papers and Data Elements (KTDDE) project provides a thorough examination of the 36 important trade papers included in the WTO-UNCITRAL-ESCAP Cross-border Paperless Trade Toolkit. This project is relevant to various sectors and provides a useful framework for digitalising operations in any global supply chain, including business-to-business (B2B) and business-to-government (B2G) scenarios.
Digital Standards Initiative (DSI) by ICC
The International Chamber of Commerce's Digital Standards Initiative (DSI) is dedicated to creating a unified and fully digital global trade environment. The DSI's mission is to establish a comprehensive and inclusive digital trade ecosystem by aligning international standards, fostering collaboration among public and private sectors, and driving global adoption of digital trade practices. By leveraging existing digital standards, the DSI aims to overcome the complexities and inefficiencies of traditional paper-based systems, facilitating seamless data flow, enhancing interoperability, and promoting secure and transparent transactions across supply chains.
The DSI's approach focuses on engaging stakeholders from diverse industries, governments, and technology providers to build a standardised framework that supports digital trade transformation. Through strategic projects, such as the Key Trade Documents and Data Elements (KTDDE) project, the DSI is working to address the challenges of fragmented digital standards and to provide clear guidance on adopting and implementing digital processes. The initiative's ongoing efforts are pivotal in paving the way for a streamlined, digital-first approach to global trade, unlocking new opportunities for businesses of all sizes and enhancing overall trade efficiency and sustainability.
Key Findings and Strategic Recommendations for Global Trade Digitalisation
The report underscores the ICC Digital Standards Initiative's (ICC DSI) commitment to developing a unified, interoperable digital trade ecosystem by leveraging existing standards, promoting collaboration, and enhancing transparency. By integrating key trade documents across global supply chains, the initiative aims to streamline data flow and simplify digital processes for businesses of all sizes, fostering efficiency and cross-border trust in trade digitalisation.
The ICC DSI Industry Advisory Board (IAB), which began its efforts in August 2021, conducted an analysis of trade documents and data standards. The findings reveal that although some processes remain paper-based due to legal requirements, significant digitalisation opportunities exist without the need for new data standards—businesses simply need to adapt existing ones. Core standards crucial for cross-border payments are already recognised by the Bank of International Settlements.
Trade digitalisation, while offering substantial benefits in efficiency and sustainability, has seen slow adoption across global supply chains. This report by the ICC DSI identifies that fewer than 200 data elements are critical and that current standards are sufficient. Accompanied by an interactive web tool, the report aims to raise awareness, support digitalisation efforts, and monitor global progress. It serves as a vital resource for businesses, governments, and regulatory bodies involved in global trade.
The digitalisation of global trade is prioritised for its potential to enhance efficiency, reduce fraud, and create new opportunities, especially for small and medium-sized enterprises. Despite numerous initiatives, a widely adopted model for digitalising supply chains is yet to emerge. The ICC DSI, through its KTDDE Working Group, has developed a framework to digitalise trade processes using existing data standards, promoting a unified and secure data flow across supply chains.
Recommendations for Accelerating Trade Digitalisation:
For the Public Sector:
- Collaborate internationally on regulations and align legal systems with the UNCITRAL Model Law on Electronic Transferable Records (MLETR).
- Support digital trade documentation and global digital identity standards.
For the Private Sector:
- Integrate digital infrastructure, adopt global data standards, and prioritise digital-first strategies.
- Financial institutions should digitalise trade finance processes to boost efficiency and accessibility.
The KTDDE Working Group, formed by the ICC DSI IAB, has systematically analysed key trade documents and data elements, releasing findings in phases. The group’s work aims to achieve globally aligned, interoperable trade ecosystems, with comprehensive coverage of international supply chains facilitated by diverse experts and organisations.
This report analyses 36 key trade documents, detailing their roles in supply chains, stakeholders involved, core data elements, and applicable digital standards. It includes a summary of each document’s digitalisation status and challenges, along with recommendations for improving interoperability and data practices.
Additionally, the report introduces an online Key Trade Data Glossary as part of the Cross-Border Paperless Trade (CBPT) Database, which aids in understanding trade data elements and references various standards to facilitate digitalisation without significant barriers.
Current State of Digitalisation in Global Trade:
- Only 1-2% of global trade is currently digitalised.
- Significant standardisation exists for electronic versions of key trade documents.
- Some industries are adopting digital documentary processes.
Analysis of Trade Documents:
- Out of 36 analysed documents:
- 21 have standardised electronic versions with high interoperability.
- 6 have multiple standards with limited interoperability.
- 9 are in the early stages of standards development.
Factors Needed for Digitalisation:
- Standardisation of electronic documentation to ensure consistency and compatibility.
- Legislative and regulatory support to provide a legal framework and compliance assurance.
- Industry convergence and engagement to foster collaboration and adoption among stakeholders.
- Widespread adoption across borders.
Challenges and Opportunities:
- Existing standards face interoperability challenges.
- Certain documents require further efforts for early-stage standardisation.
- Successful digitalisation requires collaboration between industries, regulators, and standards organisations.
Cross-Cutting Recommendations:
- Holistic Approach: A comprehensive, cross-sectoral strategy that addresses the needs of all stakeholders.
- Standardisation: Addressing gaps and ambiguities in existing standards to prevent confusion.
- Interoperability: Enhancing document compatibility to achieve universal acceptance and integration.
- Digital Adoption: Promoting consistent awareness and adoption across different regions.
- Strategic Improvements: Developing compatible digital platforms, best practices for data exchange, globally unique identifiers, and forward-thinking regulations.
The report concludes by offering detailed insights into the standardisation, digitalisation, and adoption levels of each document, categorised under the UN/CEFACT Buy-Ship-Pay Model, and provides specific recommendations for advancing the digitalisation of global trade.
Conclusion
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