cvc-elt.1: Cannot find the declaration of element 'MyElement'

After making the change suggested above by Martin, I was still getting the same error. I had to make an additional change to my parsing code. I was parsing the XML file via a DocumentBuilder as shown in the oracle docs: https://docs.oracle.com/javase/7/docs/api/javax/xml/validation/package-summary.html

// parse an XML document into a DOM tree
DocumentBuilder parser = DocumentBuilderFactory.newInstance().newDocumentBuilder();
Document document = parser.parse(new File("example.xml"));

The problem was that DocumentBuilder is not namespace aware by default. The following additional change resolved the issue:

// parse an XML document into a DOM tree
DocumentBuilderFactory dmfactory = DocumentBuilderFactory.newInstance();
dmfactory.setNamespaceAware(true);

DocumentBuilder parser = dmfactory.newDocumentBuilder();
Document document = parser.parse(new File("example.xml"));

Your schema is for its target namespace http://www.example.org/Test so it defines an element with name MyElement in that target namespace http://www.example.org/Test. Your instance document however has an element with name MyElement in no namespace. That is why the validating parser tells you it can't find a declaration for that element, you haven't provided a schema for elements in no namespace.

You either need to change the schema to not use a target namespace at all or you need to change the instance to use e.g. <MyElement xmlns="http://www.example.org/Test">A</MyElement>.