EDI stands for Electronic Data Interchange, a common and useful definition for EDI is
"the transfer of structured data, by agreed message standards, from one computer
application to another by electronic means and with a minimum of human intervention".
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UN/EDIFACT or United Nations Electronic Data Interchange for Administration,Commerce and Transport comprises a set of internationally agreed standards,directories and guidelines for the electronic interchange of data. In other words, the communication language between computers.
It took shape within the United Nations Economic Commission for Europe (UN/ECE) in the working Party for the Facilitation of International Trade (WP.4) and was approved as ISO standard 9735 in 1988.
The Balance of Payments (BOP) is a statistical statement that systematically summerizes
the economic transactions of an economy with the rest of the world over a specific period.
It is used to provide an indicator for national and international policy formulation, such
as monetary and exchange rate policies.
Why using EDI for BOP if you're a BOP compiler ?
Many different reports are based on the same standard procedures, even if they are the
responsibility of different administrations (BOP reports, VAT reports, etc.)
Together with this simplification of reporting processes, there are the following reasons
:
Why using EDI for BOP if you're bank ?
Many different reports are based on the same standard procedures, even if they are the
responsibility of different administrations (BOP reports, VAT reports, etc.)
Together with this simplification of reporting processes, there are the following reasons
:
Why using EDI for BOP if you're company ?
Many different reports are based on the same standard procedures. Together with this simplification of reporting processes, there are the following reasons :
What is the appropriate message for my reporting obligations ?
If you're a bank, you can report to the BOP compiler via the messages BOPBNK and BOPCUS :
For other companies, we have to differentiate between 2 possible solutions :
The Central Banks, or in some countries the National Statistical Institutes, can rely
on BOPSTA to send aggregated BOP data to each other and to international organisations
such as Eurostat, EMI, IMF , etc.
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Why are the BOP messages in the Edifact format ?
Balance of Payments statistics are used worldwide for decision making. A certain level
of standardisation facilitates the compilation of these data. In this point of view,
Edifact offers an international, multisectoral standard for exchanging data. Since its
adoption by the United Nations
and the International Standards Organisation,
it has spread all over the world.
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Where can I find the content of BOP messages ?
First of all, the official Edifact directory is a valuable resource for finding
information on a specific BOP message. This directory is updated twice a year and is
referenced as e.g. directory 96B, directory 97A, etc.
More detailed information can be found in the Message Implementation Guides, commonly
known as MIG's.
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A MIG, Message Implementation Guide, is a document giving a detailed description of an Edifact message. Normally it contains all relevant information, necessary for the implementation of the message :
Each country should issue their national version, based on the local reporting system.
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What is the difference between an international and a national MIG ?
The design of the BOP messages is characterised by a certain flexibility. This means
that the general version of the messages, as described in the international MIG's, can be
adapted to the specific needs of the national reporting system. This adapted national
version is described in the national MIG. Most of these national MIG's are already
available, others are still under construction.
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Who should read the international MIG ?
Being a description of the general version of the message, the international MIG mainly
serves the need of those wanting to design an adapted national version. It can also help
others to understand the global structure of the message.
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Who should read the national MIG ?
Although a national MIG can be read by anyone who's interested, it aims mainly at those
in charge of implementing the message in the organisation. Due to its technical nature,
it's above all considered as a manual enabling the configuration of the Edifact
translator.
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What about the legal aspects of an electronic declaration ?
The juridical aspects have to be analysed. Most of the time a contract will be signed
by the EDI partners. The EDI exchanges will take place within this contract.
A draft interchange agreement has been prepared by the European Commission and is
available in all the EU languages.
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What about the security aspects of an electronic declaration ?
This matter has to be dealt with on a national level. You should contact your local
administration to find out the situation in your country.
Encryption is generally not needed.
In some countries, however, a digital signature is mandatory.
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How big is the investment for EDIBOP reporting
There are several elements to be taken into account before answering :
All these elements make it very difficult to evaluate the costs in a general manner. They can vary from company to company :
see also "How long does it take to adapt my system ?"
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Do I need a Value Added Network ?
In the past, the majority of EDI was carried out via Value Added Networks (VAN's).
VAN's specializing in EDI applications provide technical support, help desk and
troubleshooting for EDI and telecommunications problems. The use of EDI over internet,
either via SMTP (Simple Mail Transfer Protocol) or via FTP (File Transfer Protocol) , has
recently profiled itself as an interesting alternative to VAN's. VAN's have typically used
proprietary networks or networks gatewayed with a specific set of other proprietary
networks. In contrast, an Internet Service Provider (ISP) offers generic network access
(i.e. not specific to EDI) for all computers connected to the internet.
It is also possible that some countries will only work with X.400, in a private or public
environment.
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What if an error occurs during transmission ?
The procedures for these errors are nationally defined. You should contact your local
administration to find out how this subject is handled in your country.
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What happens if there are elements missing in the message ?
Nothing, if these elements are conditional and can be omitted.
On the other hand, if mandatory elements are missing in the message, the translator should
reject the message, and the latter will have to be resent after the sender has corrected
the error.
Note : most translators will create an error-logging, enabling to find the problem
rapidly.
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What translator should I use ?
It's hard to tell. We only want to point out that there exist numerous possibilities, depending on the specific needs of the organisation. For practically any given platform, you can buy all sorts of packages :
Note that you don't always have to buy a translator.
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Can I develop a translator myself ?
Yes, you can. When you're only dealing with a message that has a simple structure, you
don't have to buy a translator. You could develop for instance a macro, based on a
spreadsheet, that translates your tables into an Edifact message.
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How long does it take to adapt my system ?
This is hard to evaluate because of the internal and external factors that are specific
to every company (see: How big is the investment for EDIBOP reporting ?)
Nevertheless, based on our experience with EDIBOP, we'll try to give you an idea of the
average workload.
For a company, already involved in EDI with different partners, the implementation of an
EDIBOP message based on the national MIG is straightforward.
After a meeting, where procedures and technical details are discussed, you can start
configuring the Edifact translator. Normally, a maximum of two days will suffice.
Now, you'll be ready for the trial exchanges. After 2 or 3 transmissions, your system will
be completely tuned.
If you're new to EDI, it will take a little longer. Because EDI is something you
"grow into", you're likely to start with a simple solution.
On average, it will therefore take one week to configure your translator and to be able to
send your first EDIBOP messages.
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How many stages are there in a pilot ?
Generally speaking there are 6 stages in a pilot :
What are the benefits of being a pilot partner ?
First of all, being a pilot partner offers the opportunity to re-engineer and
rationalise existing reporting procedures. Active participation offers the possibility to
negotiate these reporting protocols with the local administrations.
Moreover, the dynamic environment in which business is conducted creates a need for the
business system to change.
The trials offer an ideal starting point for this re-evaluation of static processes. Also
the opportunity of gaining knowledge on EDI and Edifact is offered.
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Can I still participate in a pilot ?
If you're a bank or a direct reporter, and you want to participate in a pilot, you can
always contact your national BOP compiler.
More information can also be obtained from Mr. Peter Hofman, chairman of the BOP
Taskforce, who is responsible for the international coordination of the pilots :
Which documents are available ?
We have at your disposal next documents to help you realise your EDIBOP project :