> Concept of Operation for ISO Approved Work Item 24533: Data Dictionary
> and Message Set for Tracking of Freight and its Intermodal Transfer

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International Organization for Standardization

Technical Committee 204

Work Group 7.2

February 27, 2004

Draft v.5a

VERSION HISTORY

  ------------------------------------- --------------- ------------------
  **Description**                       **Date**        **Name**

  Strawman version with completed       August 19, 2003 Draft version 1
  outline, to facilitate Expert                         
  committee contribution                                

  Incorporates Expert group inputs,     September 12,   Draft version 2
  including rewrite of Sect 5;          2003            
  placeholder for Section 6 now                         
  replaced with content; Section 7                      
  (special freight) eliminated; Section                 
  8 reworked and mostly put into Annex                  

  Annex scaled back; Glossary of Terms  September 30,   Draft version 3
  added; other minor enhancements       2003            
  throughout                                            

  Edits as per WG7.2 meeting #4         October 31,     Draft version 4
  (Vienna), including referential       2003            
  pointers to driver identity                           
  verification, hazardous material                      
  movement and country-specific issues;                 
  also scope clarification on                           
  truck-only movement support                           

  Incorporates updates as per AWI 24533 February 27,    Draft version 5
  Clause 5 development, including       2004            
  articulation of Chain of Possession.                  
  ------------------------------------- --------------- ------------------

TABLE OF CONTENTS

[ISO AWI 24533: A Concept of Operation
4](#iso-awi-24533-a-concept-of-operation)

[1. Background 4](#background)

[2. Document Overview 5](#document-overview)

[3. Operational Scope 5](#operational-scope)

[4. Objectives 7](#objectives)

[5. Overview of Physical Freight Flow
8](#overview-of-physical-freight-flow)

[6. Information Exchange Transactions
10](#information-exchange-transactions)

[7. Operational Scenario 11](#operational-scenario)

[8. Initial Roles of Standards Setting Bodies and Customs Agencies in
ISO 24533
16](#initial-roles-of-standards-setting-bodies-and-customs-agencies-in-iso-24533)

[9. Glossary of Terms 17](#glossary-of-terms)

[9. List of Acronyms 18](#list-of-acronyms)

[10. References 19](#references)

[Annex: Discussion of Relevant Bodies Involved in Standards Setting
20](#annex-discussion-of-relevant-bodies-involved-in-standards-setting)

# ISO AWI 24533: A Concept of Operation

## 1. Background

As freight movement becomes more international and intermodal in nature,
as security concerns increase, and as the potential of eBusiness
transactions become apparent and feasible, standardized data formats are
needed among stakeholders to facilitate the efficient, productive and
secure movement of that freight. ISO Technical Committee 204,
Intelligent Transport Systems (ITS), is addressing one area in which a
standards gap exists -- freight movement involving truck and air modes.
ISO New Work Item 24533 became an Approved Work Item in February 2003,
and an effort is proceeding to create a working draft standard. A
description of the strategic objectives and implementation approach of
this emerging standard is given in the white paper, "Deploying Freight
Data Standards to Improve Electronic Supply Chain Transactions",
authored by the Technical Committee's working group in June 2003.

A variety of freight ITS operational tests within this business domain
have taken place among various government and industry segments. The
committee recognizes that the successful deployment of a standard is
enhanced by adopting best practices from past tests and working to
infuse elements of a draft standard in future tests. One successful
field test completed in 2002 that is viewed as a backbone for the
standard considered the use of an electronic supply chain manifest
between supply chain partners in the U.S. and in Canada for transporting
time-sensitive freight among truck and air modes.

The working group has created this concept of operations (CONOPS) to
provide a functional context and description of the business environment
in which the various freight supply chain stakeholders would apply the
standard. Material from this CONOPS will be adapted into the draft
standard. The combination of the CONOPS plus Use Case and Information
Exchange Concept documentation forms the basis for the functional
description to be included in the Standard.

This standard will include a unified standard Data Dictionary and
Message Set, all elements of which are intended to be harmonized with
the United Nations Trade Data Element Directory (UN/TDED) and United
Nations Trade Data Interchange Directory (UN/TDID). The standard will be
recognized, understood and used by international customs agencies and
international trade organizations. This adoption will enable the
streamlining of the movement of international inter-modal freight to
make it more efficient and cost-effective, as well as to increase the
abilities of all customs agencies to operate more efficiently and assure
the security of countries they represent. This Concept should be
replicated and embraced by the national standards institutes of
countries represented in the ISO, by the member countries of the World
Customs Organization (WCO), the Group of Seven Industrialized Countries,
and put into practice by the world's customs agents, trade and financial
industries, and international shippers and freight-forwarders.

## 2. Document Overview

It is an objective of the working group to create a technology-neutral
Standard that is applicable by organizations independent of technology
choices made in areas such as messaging platforms and driver
verification. Therefore, this CONOPS purposely written in a way that
prescribes no technology hardware or software solution.

A second objective of the working group is to develop this Standard in a
way that is compatible and complementary with the methodologies and work
outputs of the United Nations Centre for Trade Facilitation and
Electronic Business (UN/CEFACT) organization. This includes use of the
Unified Modeling Language (UML) for functional descriptions and adoption
of artifacts created by UN/CEFACT's business process analysis work
group. This CONOPS is consistent with, and extends this work.

## 

## 3. Operational Scope

Activities in the international freight supply chain are complex,
involve many stakeholders and types of information exchanges.
Interactions between any two or more stakeholders may be guided by
country, prior relationship, technology implementation, terms of
business, product type, etc. Given the breadth of activities and the
factors surrounding these activities, it is not surprising that there
are so many languages (electronic and human), operating standards and
operational practices involved.

The Standard described in this CONOPS addresses a thread of this chain:
the transport of goods from a seller (or "consignor") to a consignee,
using intermodal transport that includes motor carrier and air links. It
is appropriate for supporting operational freight movements that occur
worldwide, whether that freight travels from point of origin to
destination domestically or internationally. While the standard is not
focused on unimodal movements, and any unique requirements therein, it
is considered complementary to standards of unimodal freight movement.

Rail and ocean transport are vital components of intermodal freight
movements. The adoption of motor carrier/air modes is a starting point;
it is recognized that a robust intermodal standard must include these
other modes.

Freight that is transported by motor carrier and air links can be
generally categorized as delivery time-sensitive. Examples of freight
that might be so categorized include:

> • Inbound parts or assemblies for just-in-time (JIT) manufacturing
> operations
>
> • Perishable goods
>
> • Particularly high-value freight
>
> • Expedited postal packages and documents

Hazardous materials (considered, for the purpose of this discussion,
synonymous with the term "dangerous goods") may also be transported
within this chosen class of supply chain. This Standard does not address
the particular unique requirements of this special freight type, but
again, is intended to be fully compatible with appropriate guiding
Standards.

This CONOPS uses the terms "actor" and "stakeholder" synonymously to
represent the various roles that add value to this segment of the
international freight supply chain. Actors are grouped into actor
classes, which depict the most basic type of value being provided. We
consider these four actor classes (as are defined by the Basic
Resource-Event-Agent ontology used by UN/CEFACT's Unified Modeling
Methodology):

> • [Customer]{.underline} -- A party who acquires, by way of trade,
> goods or services.
>
> • [Supplier]{.underline} -- A party who provides, by way of trade,
> goods or services
>
> • [Authority]{.underline} -- A statutory body existing within a
> jurisdiction and a specific area of responsibility that administers
> legislation to regulate trade and/or monitors compliance with existing
> legislation.
>
> • [Intermediary]{.underline} -- A commercial party who provides
> services to customers, suppliers or authorities within the supply
> chain. This includes, but is not limited to, freight transport.

There are many specific actors within these classes that participate in
the supply chain. We identify those that have particular importance in
the specific domain of this standard. These actors, and their class
membership, are listed in Table 1.

Table 1. Possible Actors by Class Considered by This Standard.

+-----------------------+----------------------------------------------+
| **Actor Class**       | **Possible Actor**                           |
+=======================+==============================================+
| Customer              | Consignee                                    |
+-----------------------+----------------------------------------------+
| Supplier              | Consignor (might be the Manufacturer)        |
+-----------------------+----------------------------------------------+
| Authority             | Customs Agencies                             |
|                       |                                              |
|                       | Receiving Authorities (e.g., Port Authority) |
+-----------------------+----------------------------------------------+
| Intermediary          | Motor Carrier                                |
|                       |                                              |
|                       | Air Carrier                                  |
|                       |                                              |
|                       | Third Party Logistics Provider               |
|                       |                                              |
|                       | Freight Forwarder                            |
|                       |                                              |
|                       | Import Agent                                 |
|                       |                                              |
|                       | Export Agent                                 |
+-----------------------+----------------------------------------------+

Section 7 of this CONOPS describes how the primary actors would conduct
their relevant activities in an operational setting in which this
standard was published and in use. The changes in business process,
primarily within the information processing and exchange functions, are
described there.

It is noted that in many supply chains, common business practice may
mean that an identified consignee is an intermediate point towards the
transport of a consignment to the final, or "ultimate" consignee. For
example, a Supplier may give a consignment to a Third Party Logistics
provider, who then creates a transaction to deliver to the final
consignee. Unless otherwise noted, use of the term "consignee" refers to
the "ultimate consignee".

## 4. Objectives

There are a great many different exchanges of information that are
required in a supply chain, particularly one that is intermodal and
international in scope. The exchanges span multiple business functions.
This Standard is concerned with distribution, transportation and
security-related information. A concept of operation of how this data
standard would be used operationally is driven by the two primary types
of benefit that could be enabled through use of the standard:
operational efficiency and security.

######### Operational efficiency

Suppliers and consignees articulate speed and reliability as two
important requirements of supply chains, necessary to ensure efficiency,
high productivity and competitive positioning. Among the challenges to
speed and reliability are the information requirements that must be met
to trigger various activities along the physical supply chain. For
example, information transactions accompanying international
consignments must be filed with Customs authorities as a requirement to
gaining Customs clearances that permit further freight movements towards
the consignee. Paper-based information transactions frequently become a
process bottleneck. Electronic-based information transactions, in the
intermodal and international contexts, use standards that are not
globally recognized and adopted, thus introducing the same kind of
process delays that are symptomatic of the paper transactions. The use
of data messages that are widely adopted throughout the supply chain
will foster efficiency. Other operational efficiencies include
preventing data re-entry by various stakeholders along any given supply
chain, reducing errors and rework, and improved operational planning by
having advance shipping notices.

######### Security

Use of this Standard is expected to promote the use of globally
harmonized procedures to effect security, and this is an important
requirement of an efficient and secure supply chain system. The data
standard promotes certain aspects of a "chain of possession" concept of
the freight supply chain. The chain of possession refers to the
identification and appropriate storage of a history of the party
(organization generally, or perhaps at an individual level) with
possession of some unit of freight, such as a consignment, and relevant
supporting data attributes about that party, the freight, and assets
involved in enabling the transport or distribution of that freight. When
authorized and authenticated stakeholders are given timely visibility to
that information, it may enable preventive, deterrence, and
investigative functions of a cargo security implementation. This
visibility may take several forms, such as exception reporting,
automatic system procedures, manual querying, etc.

This data standard does not include the data elements and messages that
are directly tied to the physical movement of goods (for example, data
describing container seals and their status). However, the messages
within the standard do have a strong indirect relation to the physical
chain. The information exchanges encompassed by these messages affect
and are affected by progress of the physical freight through the
physical chain. Any chain is comprised of a variety of handoff points
from one "possessor" to another. Information transactions accompany
these handoffs. For example, an air carrier will not release a
consignment to a cartage company without verifying the identity of the
driver, and, in the U.S., verifying a TSA authorization document. The
information availability provides triggers for the physical release of
the consignment. If a physical security device such as an eSeal is being
used, there would also be a transaction at this point to effect the
change of possession to the motor carrier.

Another aspect of security is ensuring that the data collected,
transmitted and stored is accessible by only those stakeholders who are
recognized as having legitimate rights to view (or edit, or add, or
delete) this data. Ensuring this type of security is a requirement of
the technology and processes that users would adopt in implementing this
data standard. There is a "chain of possession" of the information
itself, separate from the chain of possession of the physical freight,
that is promoted by the standard, but that must be enforced through the
processes and technologies used to implement it.

## 5. Overview of Physical Freight Flow

Figure 1 gives a simplified depiction of the physical movement of
freight in the delivery time-sensitive area. We will use this simplified
representation to develop the information flows affected by the
standard. In practice, variations in the specific actors involved and
the nature of the value these actors add to the supply chain may result
in a more complex physical flow than Figure 1 depicts. The standard is
intended to be sufficiently robust to handle these variations, assuming
that the basic consignor  motor carrier  air carrier  motor carrier 
consignee flow exists.

The business process that leads to this physical flow begins with some
form of an order triggering the demand for a freight movement
transaction between a supplier (consignor) and a customer (consignee).
The transaction physically begins at the supplier location. This may be
a manufacturing facility or it may be a distribution facility. A motor
carrier picks up freight from a manufacturer (Link 1). (It is possible
the manufacturer may actually be a distributor.) The motor carrier may
bring freight to staging or flow-through facilities; this is not
separately shown from the trucking icon on the Figure. The motor carrier
delivers freight to the air cargo facility (Link 2). There may or may
not be a consolidation operation in which other freight of the same or
different manufacturers are merged and transported on a different truck
or trailer (2A versus 2B). After air transport, a motor carrier
transaction moves the freight to

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Figure 1. Simplified Depiction of Physical Freight Flow for
Time-Sensitive Freight.

destination. Whether the consignment is international determines whether
the freight bypasses a Customs agency (Link 3A), or must pass through
Customs (Link 3B). The eventual delivery to consignee may, as above,
involve a consolidation operation (Link 4B) or not (4A).

## 6. Information Exchange Transactions

Associated with the physical freight movement transactions described in
Section 5 are supporting information exchanges between two or more
actors. As the standard's scope focuses on distribution-specific
information, this Section describes this type of information needed to
support the business processes of the delivery time-sensitive freight
supply chain.

There is some commonality to the information items that comprise
distribution-specific documents that are transacted, regardless of which
actors or links in the supply chain are involved. These documents'
primary purposes are:

> • [Contract of carriage]{.underline} -- for the carrier to transport
> the goods, which have been duly marked, to the indicated consignee
> noted on the document;
>
> • [Title document]{.underline} -- which may be negotiable or
> non-negotiable, depending on the terms of sale;
>
> • [Verification of goods receipt]{.underline} -- documenting that the
> goods have been physically taken into possession by the receiving
> actor, and in good condition except as may be specifically noted on
> the document;
>
> • [Vehicle for meeting regulatory and enforcement agencies'
> requirements]{.underline} -- particularly in the air cargo area, where
> the documents serve this legal role.

Different names are used for these documents throughout the supply
chain, depending mostly on which actors are transacting the document,
and to a lesser extent, by the companies and industry sectors involved.
Table 2 lists the documents, and their specific name, according to
position in the supply chain.

The information items that comprise these documents are generally:

> • [Consignor]{.underline} -- name, address, other contact information,
>
> • [Consignee]{.underline} -- name, address, other contact information,
>
> • [Freight description]{.underline} -- cargo type, weight, quantity,
>
> • [Consignment description]{.underline} -- reference number, date of
> consignment, special instructions, signature of recipient

Other kinds of data may also appear. Bills of lading typically include
the terms by which a motor carrier assumes liability for the freight.

Ancillary information that is also exchanged electronically by two or
more supply chain actors, and that is consistent with the stated scope
of the standard, are also potentially affected by this standard. Each
country or region may have specialized, unique requirements, which this
standard should not be in conflict with.

Table 2. Distribution Document Type by Link in the Supply Chain.

  -------------- --------------- ----------------- ----------------------------------
  **Link**[^1]   **Source**      **Destination**   **Typical Distribution Document**

  1              Manufacturer    Motor Carrier     The carrier will issue a Bill of
                                                   Lading for the shipper. Often, the
                                                   destination actor providing the
                                                   motor carriage function is a
                                                   freight forwarder -- they too will
                                                   produce a Bill of Lading.

  2A             Motor Carrier   Air Carrier       The motor carrier will produce a
                                                   Waybill or Manifest

  2B             Consolidator    Air Carrier       Master Waybill or Master Manifest
                                                   created from individual waybills/
                                                   manifests

  3A             Air Carrier     Motor Carrier     Waybill or motor carrier's Bill of
                                                   Lading

  3B             Air Carrier     Motor Carrier     Customs' commercial invoice
                                 (via customs)     

  4A             Motor Carrier   Consignee         Bill of Lading

  4B             Consolidator    Consignee         Bill of Lading
  -------------- --------------- ----------------- ----------------------------------

## 

## 7. Operational Scenario

Figure 2 shows how information might flow between the roles of the
primary actors in a full supply chain movement from order to delivery.
It assumes that each depicted actor has implemented a system that uses
the standardized manifest information items. Physical flows are shown at
the bottom of the figure, a variation in format of the same flow
depicted in Figure 2. This flow is given to provide context for the
information exchanges above it. This Section describes the processes and
behaviors the actors would perform in such a system.

### 7.1 Consignor

In Figure 2, the consignor triggers a request for consignment with some
form of order. This transaction begins a process of transport and
distribution that is the focus of the Standard; however this ordering
process itself is not within the Standard's scope.

### 7.2 Supplier

The Standard's reach begins when a manufacturer (or other actor who
initiates the consignment process) places a request for a motor carrier
pickup with a carrier, forwarder, or third-party logistics provider.
This request uses a technology solution (for example, based on
biometrics) that authenticates and authorizes the user to perform the
transaction. This Standard does not include messaging for such a
solution, but is seen as consistent with other standards activities
that, taken together provide a more integrated security solution.

A system that implemented an electronic supply chain manifest would
likely have a manifest template from which the base information
describing the consignment would be constructed. The Supplier will know
most or all of the items in the template, and the user will fill out the
data items, groups of which include consignor and consignee names,
addresses, etc., and item level detail about the consignment contents.

If an integrator who will also be providing the air carriage services
the motor carrier role, then the Supplier needn't be concerned with air
as a separate transaction than the motor carriage. If an integrator is
not involved, then the system's architecture, using the intermodal data
standard, permits the air carrier to easily be notified of the
consignment without requiring a separate manual transaction to be
constructed.

Such a system would provide appropriate reports and hard copy records of
the manifest transactions, in addition to the electronic transaction
captured within the system. At this point the electronic manifest is
transmitted to a system host, where the information becomes available to
appropriate downstream supply chain providers.

![](media/image4.wmf)Figure 2. Candidate Information Flow With a System
Using ISO 24533 Standard (Physical Flow Shown for Perspective).

7.3 Motor carrier transport provider

Authorized and authenticated users will have access to the consignment
request. In many situations where this motor carrier does not have
regularly scheduled pickups with the manufacturer, this request will
trigger a pickup request. The user will be directed to the consignment
perhaps by an email. The user may review the manifest generated by the
manufacturer, but may not alter it.

The carrier's system for scheduling a pickup will be invoked. Depending
on the process used for this, use of this ISO Standard may or may not
provide an opportunity to automate a previously non-automated portion of
the process. This process step triggers notification to a driver to make
the pickup. If the Supplier's action did not trigger a notification to
the air carrier, then the motor carrier may do it.

When the motor carrier's driver arrives at the Supplier's facility to
make the pickup, the driver will complete a transaction that can verify
his/her identity. This might involve the use of a smart card and/or a
biometric technology solution. The standard does not address the
implementation (which should be governed by other applicable standards
as well as common business practices in each country for driver license
recognition), but will verify that there is legitimate identification
for the individual and by whom (the organization, such as the accredited
agent for the transport company). This transaction will be sufficiently
robust to effect a possession handoff from the Supplier to the transport
provider.

Upon verification, the Supplier then allows the freight to be loaded
onto the vehicle or trailer and the consignment is released to the
driver. After leaving the Supplier, then the driver may deliver the
freight to a facility for consolidation, or directly to an air cargo
facility. This concept does not influence that decision, and will
support either case. In the case where the consignment is brought into a
facility for consolidation, the attendant there will follow a similar
procedure as a Supplier---logging in to the system, filling out a master
manifest, and assigning it to a certain air carrier.

Upon arrival at the air cargo facility, the server, using the
biometric/smart card process, will verify the driver's identity. Once
verified, the consignment can be transferred to the air cargo attendant.
At this point, an e-mail might be generated letting all the original
participants in the distribution chain know that the consignment has
reached its air cargo terminal.

### 7.4 Air transport provider

Authorized and authenticated users will have access to the consignment
request, perhaps by an email. The user may review the manifest but may
not alter it.

When the truck driver arrives at the air cargo facility, the attendant
may log in to the system again and open the corresponding manifest. The
driver's identify may be verified using a smart card and/or biometric
technology solution. Upon verification, the consignment can be
transferred over to the air cargo facility. If the driver is not an
authorized user of the system, an alert can be generated and the driver
and cargo would be subject to additional screening procedures. Once the
driver is verified and the cargo accepted by the air cargo facility, an
electronic notification (e.g., email) can be generated to notify the
rest of the supply chain of the transfer.

Many air freight forwarders and airlines already communicate
transactions using various message sets defined within the Cargo
Interchange Message Procedure (IMP). It is expected that Cargo IMP users
would at their discretion, be able to enhance their current system to
use both this ISO standard and the Cargo IMP, as the ISO Standard is
expected to be harmonized with the related Cargo IMP air waybill message
(FWB).

If the freight's destination requires it to pass through Customs, the
air transport provider will be able to generate a Unique Consignment
Reference (UCR), and the system will be populated with this
identification number.

Electronic notifications will also be generated as the cargo is
transferred to downstream facilities and transporters. The transfer of
freight from final air cargo facilities to final (truck-based)
destinations will use the same procedures of verification and
notification as originating shippers to originating air cargo facilities
to destination air cargo facilities.

### 7.5 Customs authorities

The administrative representative or account manager of the relevant
consignment account will interface with the Customs Authority's system
for updating the account data and access information about the
consignment.

Upon arrival at a customs port of departure or entry (in this case, at
the airport intermodal facility) the Customs inspector accesses the
system and opens the corresponding manifest. The inspector may verify
the identity of the truck or air cargo carrier's representative using a
technology solution that may include smart cards and/or biometrics. A
consignment profile would then be developed using electronic tags and
scanners, and by visual methods. The truck or air cargo carrier
representative and the customs inspector may then compare the profile to
the manifest, and make changes where the manifest was inaccurate. After
all items are matched between the profile and the manifest, and all
necessary items are examined, the customs inspector and truck or air
cargo representative can sign an electronic document.

At point of origin, advance notification data elements, especially for
time-sensitive parcels in the consignment, can be verified and
confirmed. The system is then updated and an electronic notification
(e.g., e-mail) generated letting all participants in the distribution
chain know that the consignment has reached its customs point of
departure or entry, and is cleared for international or domestic
movement. The system automatically notifies the designated freight
forwarder, truck carrier or air carrier at the facility, via the
conforming message format/interface, that consignment has been cleared
and is ready to be loaded. The transportation provider's representative
may then load the consignment. This representative and the Customs
inspector may then sign an electronic document before the consignment
leaves Custom's control.

7.6 Consignee

The consignee, here defined to be the final recipient of the freight,
not an intermediate transportation service provider, has the opportunity
to have added visibility into the integrated supply chain, which could
serve purposes such as tracking, inventory management, and security
incident management.

## 8. Initial Roles of Standards Setting Bodies and Customs Agencies in ISO 24533

Several international standards-developing bodies and customs agencies
will be expected to play important roles in the development of a unified
standard data dictionary and message set for intermodal freight. The
ISO, IEC and ITU are primary standards-setting organizations; the WCO is
involved in standards development with customs authorities; and
UN/CEFACT also has a key role in implementing standards. International
customs agencies and governments are expected to be key users of this
Concept of Operations. Numerous industrial sectors and key trade
associations worldwide will be encouraged to eventually conform to the
resulting draft standard. Included in the trade associations are the
International Chamber of Shipping (ICS), the International Air Transport
Association (IATA), and the International Article Numbering Association
(EAN).

This CONOPS seeks to be inclusive of the test pilots and technical
initiatives begun by international committees and organizations. One
such important test was the Electronic Supply Chain Manifest (ESCM)
project conducted within the United States, and it has been broadened in
this concept to include a more complete international customs dimension
for air and truck cargo.

As the home of this standard development, the ISO Technical Committee
and Working Group will serve a coordination role between the relevant
other organizations. This includes executing the intermodal freight
portion of the eBusiness MOU between the IEC, ITU, EN/ECE and ISO, and
providing technical support for the growth of the global acceptance,
conversion and use of the data dictionary and message set that is
developed as part of this standard.

UN/CEFACT will be expected to continue its TBG3 liaison with relevant
ISO technical committees, including TC204, by coordinating the
harmonization of the ISO 24533 standard with UNTDED, UNTDID and UNEDED,
and providing inputs and guidance on all multi-lateral technical issues
regarding the standard's data dictionary and message set.

The WCO and the U.S. Bureau of Customs and Border Protection (BCBP)
should also be expected to play roles in the successful implementation
of the standard. As the WCO publishes updates to its CDM, it and the ISO
should work to ensure the CDM and this ISO standard are in alignment.
The BCBP should continue to harmonize its various system efforts with
the WCO initiatives. New requirements that it levies (for example, the
Advanced Notification Final Rule currently in a public comment period)
should be socialized with the Technical Committee to ensure the harmony
of the standard with emerging information requirements.

## 9. Glossary of Terms

> AIR WAYBILL -- A particular type of Bill of Lading, specifically a
> nonnegotiable consignment note used to cover the transport of goods by
> airfreight. It serves as a receipt for the shipper, indicating that
> the carrier has accepted the goods listed therein, and obligates
> itself to carry the consignment to the airport of destination
> according to specified conditions.
>
> BILL OF LADING -- Principal transportation document by which a carrier
> acknowledges receipt of freight, and sets forth a contract of carriage
> terms and conditions. Responsibilities and liabilities vary with
> manner and place of use. Bills of lading may be negotiable or
> nonnegotiable.
>
> CONSIGNOR -- Person or organization that sends merchandise to another
> party. In this CONOPS, we use the term "manufacturer" to represent the
> consignor, though recognizing that other kinds of organizations may
> actually be the consignor.
>
> CONSIGNEE -- Person or company to whom the freight is forwarded. In
> and end-to-end supply chain, there may be manifests in which an
> intermediate logistics provider is considered the consignee.
>
> CONSIGNMENT -- Lot of freight tendered to carrier by one consignee at
> one place at one time for delivery to one consignee at one place on
> one bill of lading; goods/freight in one or more containers, pieces or
> parcels for transportation from one shipper to single destination.
>
> MANIFEST -- A specification of all cargo on board the transportation
> vessel. This document contains details of contents, shipper,
> consignee, and other details that may be required by customs or
> consular authorities. Copies of manifests are provided for the country
> of export and country of import customs authorities.
>
> MASTER AIR WAYBILL -- An air waybill covering a consolidated
> consignment, showing the consolidator as shipper.
>
> WAYBILL -- A document made out by, or on behalf of, the shipper and
> evidences the contract between shipper and carrier for carriage of
> cargo. A "Through Air Waybill" covers the entire transportation from
> departure to destination of consignment. It is not a document of
> title.

## 9. List of Acronyms

> BPAWG -- Business Process Analysis Work Group
>
> CDM -- Customs Data Model
>
> CONOPS -- Concept of Operations
>
> EAN -- International Article Numbering Association
>
> ESCM -- Electronic Supply Chain Manifest
>
> HS -- Harmonized System
>
> IATA -- International Air Transport Association
>
> IEC -- International Electro-Technical Commission
>
> ISO -- International Organization for Standardization
>
> ITS -- Intelligent Transportation Systems
>
> ITU -- International Telecommunications Union
>
> JIT -- Just-in-Time
>
> MOU -- Memorandum of Understanding
>
> SSE -- Shipper's Security Endorsement
>
> TBG -- Trade and Business Process Group
>
> TBT -- Technical Barriers to Trade
>
> UCR -- Unique Consignment Reference
>
> UML -- Unified Modeling Language

UN/CEFACT -- United Nations Centre for Trade Facilitation and Electronic
Business

UNCITRAL -- United Nations Conference on International Trade Law

UNCTAD -- United Nations Conference on Trade and Development

UNSM -- United Nations Standard Messages

UN/TDED -- United Nations / Trade Data Element Directory

UN/TDID - United Nations / Trade Data Interchange Directory

WCO -- World Customs Organization

WTO -- World Trade Organization

## 10. References

"BPAWG Reference Model of the International Supply Chain", Working
Draft, UN/CEFACT TBG14, March 2003.

"Deploying Freight Data Standards to Improve Electronic Supply Chain
Transactions", White Paper, ISO TC204 Working Group 7.2, June 30, 2003.

"Developing and Testing an Electronic Supply Chain Manifest: Phase II
Final Report", prepared by the American Transportation Research
Institute for the U.S. Federal Aviation Administration and the Federal
Highway Administration, December, 2002.

"Intermodal Freight Transportation", by Gerhardt Muller, published
jointly by the Eno Transportation Foundation, Inc., and the Intermodal
Association of North America, 4^th^ edition, 1999. \[Note: some
definitions in the Glossary of Terms section are adapted from this
publication.\]

"Transport information and control systems -- Data dictionary and
message set for tracking of freight and its intermodal transfer -- Road
transport information exchanges", ISO AWI/ 24533, Draft, November 11,
2002.

\"Transport information and control systems - Requirements for an
ITS/TICS central data registry and ITS/TICS data dictionaries", ISO
International Standard 14817, first edition 2002-12-15.

"United Nations Trade Data Element Directory", UN/CEFACT.

"United Nations Trade Data Interchange Directory", D.03A, UN/CEFACT,
March, 2003.

## Annex: Discussion of Relevant Bodies Involved in Standards Setting

Section 8 described the roles that various standards-setting bodies
would play in this standard's development. This Annex provides
additional background and detail on these organizations, including their
constituent parts that will have specific roles.

This CONOPS seeks to be inclusive of the test pilots and technical
initiatives begun by international committees and organizations.
Specifically, the results of the Electronic Supply Chain Manifest (ESCM)
project currently being conducted within the United States is here given
an international customs dimension for air and truck cargo. The
all-encompassing "Single-Window" concept being forwarded by UN/CEFACT is
a driving force of this Concept.

### 

### **A1. International Organization for Standardization (ISO)**

ISO is a network of the national standards institutes of 147 countries,
on the basis of one member per country, with a Central Secretariat in
Geneva, Switzerland, that coordinates the system. ISO is a
non-governmental organization: its members are not, as is the case in
the United Nations system, delegations of national governments. ISO
occupies a special position between the public and private sectors
because many of its member institutes are part of the governmental
structure of their countries, and other members were set up in the
private sector by national partnerships of industry associations.
Therefore, ISO is able to act as a bridging organization in which a
consensus can be reached on solutions that meet both the requirements of
business and the broader needs of society, such as the needs of
stakeholder groups like consumers and users.

ISO, the International Electro-technical Commission (IEC), and the
International Telecommunication Union (ITU) are the three principal
organizations in international standardization. They have complementary
scopes, frameworks, expertise and experience to provide this technical
support for the growth of the global market. Like ISO, the IEC is a
non-governmental body, while the ITU is part of the United Nations
Organization and its members are governments.

These three organizations have a strong collaboration on standardization
in the fields of information technology and telecommunications, and have
also built a strategic partnership with the World Trade Organization
(WTO) with the common goal of promoting a free and fair global trading
system. The political agreements reached within the framework of the WTO
require underpinning by technical agreements. The WTO\'s Agreement on
Technical Barriers to Trade (TBT) includes the Code of Good Practice for
the preparation, adoption and application of standards. The TBT
Agreement recognizes the important contribution that International
Standards and conformity assessment systems can make to improving
efficiency of production and facilitating international trade.
Therefore, where International Standards exist or their completion is
imminent, the Code states that standardizing bodies should use them as a
basis for standards they develop. The Code requires that standardizing
bodies that have accepted its terms notify this fact to the ISO/IEC
Information Centre located at the ISO Central Secretariat. Standardizing
bodies having accepted the Code must publish their work programs and
also notify the existence of their work programs to the ISO/IEC
Information Centre. On behalf of the WTO, ISO periodically publishes a
directory of standardizing bodies that have accepted the WTO TBT
Standards Code.

*ISO Technical Committees and Working Groups*

ISO's technical committees and working groups have world-renowned
experts in all fields where international standardization is required.
ISO 24533 is being developed within TC204, which includes the
standardization of information, communication and control systems in the
field of commercial transport and its inter-modal and multi-modal
aspects. WG 7 of TC 204, General Fleet Management & Commercial/Freight
is a smaller division of the same, and Working Group 7.2, is the source
of most international coordination work for this Concept of Operations.
Also in TC 204, Working Group 9 (Integrated Transport Information,
Management and Control), Working Group 15 (Dedicated short range
communications for ITS applications), and Working Group 16 (Wide area
communications/protocols and interfaces) are strongly related to the
development of this Data Dictionary and Message Set, and will be
consulted as a resource and partner within this Concept.

Also relevant to ISO 24533 is ISO 14817 -- Transportation Information
and control systems---Requirements for an ITS/TICS Central Data Registry
and ITS/TICS Data Dictionaries. Within TC 204, WG1 (Architecture) and
WG4 (Automatic Vehicle and equipment identification) are heavily
involved with its development, and should therefore be consulted on the
relevant aspects of ISO 24533. The mission of WG1 is to provide ISO
TC204, its Working Groups, related bodies and those involved in the TICS
sector with a reference model of Conceptual Reference Architecture(s)
that show the structure and interrelationships of the sector and to
provide timely and appropriate definitions of Terminology by means of
Glossaries and Dictionaries, which explain in plain language and with
the minimum of jargon, the terms in use in TICS. WG1 is also developing
the requirements for a central ITS/TICS data registry and ITS/TICS data
dictionaries. WG4 addresses automated vehicle identification and
automated equipment identification.

TC 154 (Processes, Data Elements and Documents in Commerce, Industry and
Administration) and TC 211 (Geographic information/Geomatics) play a
role in the Concept for ISO 24533. Other ISO technical committees may
also play a role in this Concept as the standard matures and ISO's
organizational structure evolves. TC 154's scope is the international
standardization and registration of business and administration
processes and supporting data used for information interchange between
and within individual organizations, and support for standardization
activities in the filed of industrial data. This Technical Committee is
responsible for the development and maintenance of standards for process
and data identification, and the EDIFACT syntax. TC 211 is concerned
with standardization in the field of digital geographic information.
These standards specify, for geographic information, methods, tools and
services for data management (including definition and description),
acquiring, processing, analyzing, accessing, presenting and transferring
such data in digital / electronic form between different users, systems
and locations. Its work links to appropriate standards for information
technology and data where possible, and provides a framework for the
development of sector-specific applications using geographic data.

### **A2. World Customs Organization (WCO or Customs Co-operation Council)**

The WCO was established in 1952 as the Customs Co-operation Council, an
independent inter-governmental body whose mission is to enhance the
effectiveness and efficiency of Customs administrations. With 159 Member
Governments, it is the only widely recognized inter-governmental
international organization and authority in Customs matters. Its members
process more than 95% of all international trade. Approximately 80% of
the 159 Members of the WCO could be categorized as developing or in
transition to a market economy.

WCO's Harmonized System (HS) of tariff nomenclature is used as a basis
for the collection of Customs duties and international trade statistics
by almost all countries. Use of HS ensures that a Customs administration
produces statistics in accordance with international classification
standards. Currently 179 countries and Customs or Economic Unions
(including 104 Contracting Parties to the HS Convention), representing
about 98 % of world trade, use the Harmonized System. It is therefore
one of the most important instruments in world trade, and essential in
the development of Customs-to-Customs information exchanges.

######### The G7 Customs Initiative 3

The G7 Heads of States and Government, in meetings in Lyon (1996) and
Denver (1997), and the G7 Finance Ministers at the Birmingham (1998) and
Okinawa-Kyushu (2000) Summits, agreed to standardize and simplify
Customs data requirements of the G7 countries and to standardize the
format in which data are to be reported electronically in order to
facilitate international trade, reduce costs for businesses and
governments and promote economic growth. The G7 countries agreed on a
timetable to achieve implementation, by 2005 if possible, of the
standardized electronic formats. Some countries plan to establish
prototypes during 2002. In June 2001, the WCO Council accepted a request
from the G7 to take over the maintenance and management of the G7
Initiative from January 2002 to advance the work into a global Customs
standard in the form of the WCO Customs Data Model.

*Custom Data Model (CDM)*

Standardized and harmonized information requirements and procedures are
essential to establish the common understanding which allows for an
effective and efficient exchange of information between all parties
involved in international cross-border movements. The WCO Customs Data
Model (CDM) provides this common understanding on Customs information
requirements. CDM will also provide contracting parties to the revised
Kyoto Convention with a global Customs standard to implement provisions
dealing with reduced data requirements and electronic submission of
declarations and supporting documents. It is a major effort within WCO
to forge data element and syntax standards for customs data.

The CDM is based on the following basic principles and best practices:

-   Business process modeling - The work of the Customs Data Model
    includes the analysis and modeling of the procedures and processes
    contained in the revised Kyoto Convention.

-   Use of EDI and e-commerce technology - The Data Model for the
    various Customs procedures and processes is geared exclusively to
    the requirements of an automated environment using e-commerce
    technologies. The Data Model therefore forms the basis for the
    development of common electronic messages (Cargo and Goods
    declarations for import and export) on the basis of international
    standards such as UN/EDIFACT 1 or XML 2. This requires the
    development of common message structures for both the Cargo and the
    Goods declaration (import and export), which are compatible with
    relevant commercial information flows.

-   Uniform data requirements - Uniform data requirements are key to
    Customs control and are crucial to trade facilitation. For this
    reason the harmonization of the data requirements for import and
    export, creation of common definitions and standardization of the
    data content and its format are essential building blocks for the
    Customs Data Model.

-   Segregation of data requirements - The Customs Data Model also
    covers simplified procedures as described in the revised Kyoto
    Convention. This includes, in particular, the two-step procedure at
    import, where Customs administrations release the goods on minimum
    information required for control purposes and perform other
    administrative duties such as duty/tax collection and collection of
    trade statistics based on complementary information submitted after
    the release of the goods.

-   Seamless transaction - The Customs Data Model also follows the
    concept of a seamless data flow, where export and import data
    requirements are being aligned and the respective electronic
    declarations share the same structure. This should allow traders to
    exchange information more economically and enable the importer to
    utilize the export information as the basis for the import
    formalities.

######### Single Window Environment

The WCO Customs Data Model also aims to include other governmental
regulatory requirements in order to establish a single window
environment. This may allow traders to exchange information only once
with a single official body, preferably Customs, to fulfill all
regulatory requirements related to an import or an export. This work
will require the involvement of other regulatory authorities and
international bodies in the work of the WCO Customs Data Model.

### **A3. United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT)**

UN/CEFACT was established in 1996 in response to new technological
developments and the need to make better use of available resources, and
is open to participation from U.N. Member States, inter-governmental
organizations, and sectoral and industry associations recognized by the
Economic and Social Council of the United Nations. The Centre\'s
objective is to be \"inclusive\" and it actively encourages
organizations to contribute and help develop its recommendations and
standards. Its mission is to improve the ability of business, trade and
administrative organizations, from developed, developing and
transitional economies, to exchange products and relevant services
effectively - and so contribute to the growth of global commerce.

Of particular relevance to this Concept, the focus of UN/CEFACT is the
worldwide facilitation of international transactions, through the
simplification and harmonization of procedures and information flows.
Namely, UNTDED -- the Data elements in the United Nations Trade Data
Elements Directory (UNTDED) are used in segments of the present United
Nations Trade Data Interchange Directory (UNTDID) and are also, in a
condensed form for this purpose, included in a special directory
(UNEDED). As this structure pertains to the ISO 24533 concept, the data
dictionary will fall within the domain of UNTDED, and the message set
will be included within UNTDID.

To increase its effectiveness, UN/CEFACT actively coordinates with other
international organizations such as the World Trade Organization (WTO);
the World Customs Organization (WCO); the United Nations Conference on
International Trade Law (UNCITRAL); and the United Nations Conference on
Trade and Development (UNCTAD). Many of these organizations participate
directly in UN/CEFACT\'s work. Since its work has broad applications
beyond global trade, UN/CEFACT recognizes the need to secure coherence,
particularly in electronic commerce methods. To do this, it meets
regularly with other interested parties, such as the International
Organization for Standardization (ISO), with which the Centre also has a
Memorandum of Understanding.

The purpose of the UN/CEFACT's International Trade and Business
Processes Group (TBG) is to be responsible for business and governmental
business requirements and content. This is achieved by initiating
developments in the areas of process analysis, best practices, and
international trade procedures. Where appropriate the UN/CEFACT Modeling
Methodology is used to support the development of trade facilitation and
electronic business solutions.

######### TBG3

TBG3 has the primary mission to identify EDIFACT standard message
requirements for the transfer of transport data and to develop and
maintain United Nations Standard Messages (UNSM\'s) for transport and
logistics purposes, for example:

-   IFTM series -International Forwarding and Transport Messages

-   IFCSUM -International Forwarding Consolidation Summary

-   Coxxx series -Containers Movements Messages

In the context of Internet emerging technologies, TBG3 has now to
develop and maintain from the basis of EDIFACT directories business
models, semantics, and syntax neutral content to be used with XML ,
including business object libraries and XML DTDs/Schemas. The aim is to
provide users a migration path from EDIFACT models and messages to these
new technologies. For this purpose, the Group has participated actively
in the UN-CEFACT/OASIS ebXML initiative in developing the business
processes and core components for the transport domain.

TBG3 also liaises with relevant ISO, UN and CEN Committees, and
international transport organizations such as IATA (International Air
Transport Association), ICS (International Chamber of Shipping), IMO
(International Maritime Organisation), UIC (Union Internationale des
Chemins de Fer ), IRU (International Road Union ), and FIATA (Federation
Internationale des Auxiliaires de Transport et Assimiles). Other
relevant parties TBG3 deals with to ensure that all developments are
properly monitored and coordinated, and that working arrangements
regarding the division of work items are made where necessary, are SMDG
(User Group for Shipping Lines and Containers Terminals), ISA
(Information System Agreement), and X12I (Transport Group).

######### TBG4

The Customs Domain Group (TBG4) is responsible for the development and
maintenance of EDI messages exchanged between Trade and Customs.
Messages to be developed are based on the Revised Kyoto Convention (on
the simplification and harmonization of customs procedures) and will be
developed in the context of trade facilitation according to the
principles established by CEFACT as stated in R.650. Therefore, they
shall take into account principles of best business practice from within
the international customs administrations and advice from other relevant
groups in UN/CEFACT. This includes messages such as:

> • Customs Cargo Report Message (CUSCAR),
>
> • Customs Declaration Message (CUSDEC),
>
> • Customs Express Consignment Declaration Message (CUSEXP),
>
> • Periodic Customs Declaration Message (CUSPED),
>
> • Customs Conveyance Report Message (CUSREP),
>
> • Customs Response Message (CUSRES),
>
> • Passenger List Message (PAXLST),
>
> • International Movement of Goods Governmental Regulatory Message
> (SANCRT),
>
> • Value Added Tax Message (VATDEC).
>
> • The WCO Customs Data Model

######### EDIFACT

EDIFACT is the United Nations rules of Electronic Data Interchange for
administration, commerce and transport. They comprise a set of
internationally agreed standards, directories and guidelines for the
electronic interchange of structured data, and in particular that
related to trade in goods and services between independent, computerized
information systems.

**A4. International Air Transport Association (IATA)**

IATA is a trade association representing the air transport industry,
with membership including hundreds of the leading airlines worldwide.
IATA undertakes a variety of initiatives aimed at ensuring that both
people and freight move efficiently throughout the worldwide air
network. One such family of initiatives is the development and
socialization of data messaging standards that foster the efficient
operations of airlines that choose to adopt the standards, thus creating
a level of interoperability at the information exchange level.

The specific standards initiative that is relevant to this CONOPS is
IATA's Cargo Interchange Message Procedure (Cargo IMP). Its scope
includes:

> • Message specifications and encoding of codes and abbreviations,
>
> • Air waybill information,
>
> • Accounting data,

• Airline-customs systems data interchange

This ISO 24533 standard intends to be consistent with the Cargo IMP air
waybill message set at the data element level. Until initiatives to
harmonize the Cargo IMP messages with the WCO are completed, however,
there could be discrepancies. Air carriers and air freight forwarders
who use Cargo IMP's air waybill message would require a implementation
of a translation service, but otherwise successfully use both the
standard and with IMP message.

[^1]: Link numbers correspond to the depiction in Figure 1.