Hannah Nguyen, ICC Digital Standards Initiative & Tejo Kusuma, World Customs Organization
“The mandate of the Key Trade Documents and Data Elements (KTDDE) Working Group is to accelerate trade documents digitalization”
In an unprecedented effort to streamline global trade, the ICC Digital Standards Initiative (DSI) recently launched a complete framework for supply chain digitalisation, based on its end-to-end analysis covering 36 key trade documents.
Bridging Data Across Documents
“The mandate of the Key Trade Documents and Data Elements (KTDDE) Working Group is to accelerate trade documents digitalization. This led to the thorough analysis of 36 documents spanning commercial, transport, financial and cross-border regulatory processes. We are now positioned to systematically align all business-to-business (B2B) and business-to-government (B2G) trade processes within a single integrated framework,” highlighted Hannah Nguyen.
This effort tackles the ‘digital islands’ challenge, where disparate data standards block smooth information flow across the supply chain. According to Brendan O’Hearn, Deputy Director of the WCO and member of the DSI Governance Board, “We are proud to have contributed to the KTDDE work. It sheds light on the opportunity to achieve greater harmonization in global trade.”
A Convergence of Expertise
Chaired by Robert Beideman of GS1 and managed by Henri Barthel, the KTDDE project represents a monumental 18-month effort by nearly 100 experts. Tejo Kusuma, a WCO Technical Officer and active contributor, notes, “The KTDDE Working Group served as an inclusive platform, bringing together business, governments, digital trade experts and standard development organizations. Our collaboration has centered on accelerating the implementation of international standards, including the WCO Data Model (WCO DM)[1] to enable the reuse of business data in cross-border procedures to boost efficiency, cut compliance costs, and enhance visibility.”
A critical output of this effort is the comprehensive Key Trade Data Glossary, now accessible as an interactive web tool. Drawing on existing resources across private and public sectors, the Glossary highlights critical data elements essential for cross-document and cross-industry interoperability, as well as the potential for significant efficiency gains when adopted at scale. For instance, significant convergence already exists in current supply chains, with a core set of 189 key data elements being utilized across 30+trade documents and 21 are used in more than 10 documents.
Enhancing Digital Trade Practices with open collaboration
The WCO’s role in the KTDDE initiative, especially through the analysis of essential regulatory documents like the Customs Declaration, Certificate of Origin and Advance Ruling Application, underscores the commitment to optimizing cross-border procedures. The ongoing efforts by the WCO’s Data Model Projects Team (DMPT) to develop standards for traditionally fragmented B2G documents such as Customs Bonds, in collaboration with new partners like the International Credit Insurance & Surety Association (ICISA), has potential to further broaden the scope and impact of digitalization.
Richard Wulff, Executive Director of the International Credit Insurance & Surety Association (ICISA) and an active member of the DSI Industry Advisory Board reflected: “Being part of the KTDDE Working Group not only allows us to contribute industry insights into the analysis of current landscape but also paves the way for further development and collaboration to better serve global trade by removing frictional cost and increasing transparency.”
Next Steps for Industry and Governments
Aligning key data and digital documents across the supply chain is fundamentally about rethinking how trade data and documents interact across borders, making global trade simpler and cost-efficient for small and medium-sized enterprises (SMEs), which make up nearly 90% of businesses globally. When all key trade processes along the supply chain adhere to global data standards, a “single source of truth” from data that is verified, shared, and secured across every supply chain can support not only operational needs but also other critical purposes such as financial documentation and ESG compliance.
As digital trade practices evolve, ongoing engagement from all stakeholders will be crucial in realizing the vision of a fully digital, efficient, and secure global trade environment. DSI offers several recommendations to capitalize on current advancements, drive economic growth and inclusive progress for all:
For the public sector:
- Enhance policy support for trade digitalization: Align legal systems with the UNCITRAL Model Law on Electronic Records (MLETR) to support the swift and secure digitalization of transferable records, improving speed and reducing bottlenecks for traders.
- Standardize border processes: Standardize procedures at national borders with implementation of global standards, such as the WCO DM, to reduce administrative burden on traders and support a greater volume and velocity of trade.
- Recognize global digital identities: Adopt global digital identity standards such as the Legal Entity Identifier (LEI), Global Location Number (GLN), or Global Trade Item Number (GTIN) to streamline verification and enhance the ease of doing business. Where national digital identity standards already exist, mutual recognition or guarantees of interoperability with global digital identity standards is essential.
For the private sector:
- Invest in digital infrastructure: Build robust digital infrastructure within companies to enhance operational efficiency and respond more quickly to market changes and customer demands.
- Utilize global standards for data exchange: Adopt global data standards and a “digital first” strategy when building new business initiatives.
- Digitalize trade finance processes: Tap into existing supply chain data to make trade finance more efficient and accessible to underserved markets.
Footnote
[1] https://datamodel.wcoomd.org/#/
[1] https://datamodel.wcoomd.org/#/