KGH CUSTOMS2013

NEWS

Use customs knowledge to empower business The market news making the headlines

A clearer roadmap for Volvo Group - Logistics Services

KGH Customs Academy - a knowledge provider

LKAB overcomes the customs minefield

Introducing A&V - our Accounting and VAT team

KGH CUSTOMS NEWS - EDITORIAL KGH CUSTOMS NEWS - MARKET NEWS

WELCOME TO KGH CUSTOMS NEWSWith 2013 underway, a new year always presents many opportunities and challenges. Over the last few years, we have learnt that knowledge in the world of customs is a key towards developing healthy and effective organisations. Our motto is to teach our customers to get it right from the beginning. In this edition of KGH News, we highlight this philosophy with articles about Volvo Group - Logistics Services and LKAB.

On page 4, read more about how KGH provides Volvo with vital knowledge and an objective point of view that complements the company’s in-house expertise. The collaboration has led to an ongoing and successful partner-ship. Getting the right routines in place saves costs - a lesson learned by leading Swedish mining company LKAB who turned to KGH for first-class knowledge when they needed to dug deep into their customs procedure. Read their story on page 8.

In addition, we take the opportunity to showcase KGH’s value-added educational offer, the Customs Academy, on page 7. The academy was set up to strengthen the way companies work with customs. It’s about working more proactively with customs in areas with a strategic focus and spreading the message across organisations. Find out more on page 7 how KGH’s Academy is growing in size and stature.

And finally, we are delighted to introduce our expert team on pages 10-11 that supports foreign companies through every step of the accounting and VAT process. Our customers value the fact that we can act as a guide through the whole process in-house - a rare entity in Sweden - and our widespread knowledge of the customs arena is highly regarded.

We do hope you enjoy this magazine and visit our website where you are welcome to post feedback and ideas. Go to www.kghcustoms.com and feel free to comment or suggest other topics you would like us to cover. You can also send an email to newsmagazine@kghcustoms.com.

Wishing you a pleasant read!

KGH Customs Services

YOURINDEPENDENT PARTNER

FORCUSTOMS COMPLIANCE

CHINAWARE FACING EU ANTI-DUMPING DUTY DECISIONIn November 2012, the European Commission imposed provisional anti-dumping duties on imports of porcelain and pottery from China. The measures have been introduced to safeguard EU industry against unfair competition from Chinese producers.

The anti-dumping duty has been set at 58.8 percent, with a few exceptions for lower tariff rates ranging from 26.6 to 31.2 percent.

The duties have been pushed through on a provisional basis from November 2012 to spring 2013. The Commission will use the period to assess whether the duties will be imposed, and if so, they will remain valid for the next five years.

A decision to adopt or withdraw the measures must be finalised by May 2013.

BRAZIL, A BOOMING MARKETIt’s a country that is fast becoming a more attractive market in terms of its size, development and influ-ence on economic growth worldwide.

Since Brazil’s role in the global economy has grown, especially when it comes to trading, KGH and our partner Vinge Law firm arranged a seminar on Trading with Brazil on December 4, 2012 in Gothenburg, Sweden.

Our seminar was lead by two customs specialists from Brazil; Alexandre Lirade Oliveira from Lira Associados and Omar Rached, Managing Partner at AIV Customs Auditing Ltd.

Topics addressed during the seminar included: • Understanding the Brazilian market• Recommendations and best practises with respect to duties, indirect taxes and customs procedures • Licensing and trade restrictions/ special regimes

Alexandre Lira de Oliveira, Lira Associados,Omar Rached, Managing Partner at AIV Customs Auditing Ltd at our seminair on Trading with Brazil.

The seminar coincided with the first winter snowfall and freezing temperatures in Gothenburg. Delegates had to overcome a number of weather obstacles but once they arrived, they were able to enjoy the warm atmosphere in ‘Norges Hus’ and spend the day focusing on a much warmer customs climate in Brazil.

KGH SIGNS CONTRACT WITH THE AZERBAIjAN GOVERNMENTIn an official ceremony in the capital Baku in November, KGH and the Azerbaijan government signed a contract for a multi-year project. The project involves the development of processes and systems for Azerbaijan’s customs operations.

”We are very glad to have the opportunity to develop the customs operations in Azerbaijan,” says Lars Karlsson, President of KGH Border Services. “We see this project as an opener to other countries in the region.”

The project will commence at the start of 2013 and KGH will deliver the first three phases during the year. ”We see this as an important milestone for us,” adds Karlsson.

“There are also several other new contracts in the pipeline so we are motivated and looking forward to what 2013 has in store for us”, Lars Karlsson concludes.

KGH CUSTOMS NEWS - VOLVO GROUP LOGISTICS SERVICES

VOLVO latest FH16-750 on the road

KGH CUSTOMS NEWS - VOLVO GROUP LOGISTICS SERVICES

Complexities with classification and the introduction of stringent customs legislation led Volvo Group - Logistics Services to extend their existing partnership with KGH.

The field of customs is often considered a small but important part of international business. This is reflected in the team of in-house specialists based at Volvo Group - Logistics Services headquarters in Gothenburg, where Mikael Wennergren, Manager Customs, heads a team of 22 people. “We have had a base of high-level competence since the beginning of the 1990s but since 2006 there have been many changes in customs law,” he says.

A long-term collaboration had existed between the two companies in border crossing services. However, with 5,000 employees in over 60 locations worldwide, Volvo Group - Logistics Services were keen to keep theirglobal operations running smoothly amid changes within Europe and beyond. In 2010, they turned to KGH Consulting to reinforce their expertise and continue to gain a broad insight into classification processes.

“KGH provides us with an objective point of view,” adds Mikael. “My team appreciate their knowledge to back up our reasoning of why we should do this and that, whether we are thinking in the right way and if we should do things differently.”

Volvo Group - Logistics Services deliver supply chain solutions to ensure reliable deliveries to their customers in the automotive industry. “It’s not only about building trucks and engines, we offer a total package of support services,” says Mikael. “In terms of customs, it becomes intricate since these services can be used in various ways; for private use, commercial, military or offshore business, for example.”

In a similar way, spare parts supply involves different customs duties depending on how even the smallest piece of machinery is to be used. “It’s the same legislation but different classification and therefore it’s a huge benefit to discuss such matters with KGH,” he adds.

Furthermore, education and training provided by KGH means Volvo Group - Logistics Services stays up to speed with customs guidelines and can use them to benefit the business.

“I have people in my team with 30 years experience and others with two years experience so it’s about trying to minimise the gap,” says Mikael. “But more so we are connected to the automotive industry, which is limited to a couple of classification chapters while KGH has experience with all the chapters and therefore enables us to think outside the box.”

Changes in Volvo Group - Logistics Services customs procedures has been gradual yet noticeable, in so much as the accuracy of master data has increased and time-consuming errors erased. ”That KGH complements our expertise in many other areas is the biggest advantage to us,” adds Mikael. “We have had a long and successful relationship and are discussing other ways in which we can benefit from their competence.”

“The biggest advantage is that KGH complements our expertise in many other areas and provide us with an objective point of view”

A CLEARER CUSTOMS ROADMAP FOR VOLVO GROUP - LOGISTICS SERVICES

Passionate about customsAt KGH, we build bridges between your company and existing regulations in international trade. We are passionate about customs and look forward to helping you improve your customs process through our:

Unique product portfolio

Customs competence

Geographical coverage

KGH CUSTOMS NEWS - KGH ACADEMY

“WE WANT TO BE KNOWN AS A PROVIDER OF EDUCATION” Catharina Olofsson, Director Consulting & Academy, KGH Customs Services

Explain the background to the Customs AcademyWe had a need to improve internal competences and at the same time we saw a need from our consultancy work for similar knowledge externally. We believed that we could actually address both sides and began with tailored company education. We offered our first course in 2009 and from this autumn we have added a number of open courses for the Swedish and Norwegian markets. Our Dutch business acquired in 2011 has offered open courses for many years but has now also started offering tailored courses.

What is the difference between tailored education and open courses?Tailored education is specifically aligned towards a company so they have a good context to work from. It helps facilitate interaction between departments or functional areas and, in practical terms, we hope to be able to give delegates something useful to apply to their business. Open courses are targeted towards companies that perhaps don’t have so many employees or are looking for an alternative to other suppliers of similar education.

Why should companies invest in customs training?The business opportunity short term is to increase the probability that you do things correctly from the beginning and reduce the risk of errors. Errors can mean double the work, but it can also involve fines for example. In addition, if you increase knowledge and awareness and have the ability to spread this across your organisation you can work more proactively with customs in areas with a strategic focus.

What kind of courses do you offer?Our range of introductory courses has proven very popular, for example an introduction to import and export. We also work with universities and Business Schools where we host lectures and run various certified programmes in Sweden, Norway and the Netherlands.

Why choose KGH as an education partner?We believe it strengthens our offer and complements the quality of our other products. We want to be known as a provider of customs education and raise that awareness in terms of existing and potential customers. It’s not only a valuable business for us, it has a context within everything else that we do.

KGH CUSTOMS NEWS - LKAB

“KGH knew exactly what to do and were able to explain everything in simple terms and help us within in a very short timeframe”

After Swedish Customs made contact with the task of reviewing company practises, confusion erupted as to who at LKAB was responsible. It was left to Mats Niemi, senior manager, supply and materials, to take action.

“I was really trying to prioritise this issue because I thought it was a risk that LKAB could lose its certificate for electronic declarations,” he says. “We really didn’t have any great knowledge of the correct routines.”

Swedish mining heavyweight LKAB turned to KGH when they were forced to dig deep into their customs procedures.

Every day, fifteen sometimes sixteen trains depart with nearly 7,000 tonnes of iron ore from Kiruna and Malmberget in northern Sweden. There lie the two biggest underground iron mines in the world, run by LKAB.

Founded in 1890, the company boasts leading expertise in excavation and has a long history as an important cog in the Swedish export industry.

However, their grasp on custom processes had reached rock bottom. At the same time, amendments to EU legislation in 2009 resulted in tougher demands on businesses that held simplified declaration certificates.

In October 2011, Niemi realised the company needed assistance to meet an impending deadline. “I knew KGH worked with Norway and I wanted to find a company that would be really focused on our business – not just a big supplier,” he adds. “KGH knew exactly what to do and were able to explain everything in simple terms and help us within in a very short timeframe.”

The partnership is ongoing and KGH was invited to train staff in the perks and pitfalls of customs procedures. “We have also started to purchase more materials from China so working better with customs globally presents us with an opportunity to be more profitable,” Niemi says.

Ultimately, LKAB saw the need to employ someone to work with customs issues full-time and with that position filled, KGH continues to offer their experience and support.

The company does have something of a mountain to climb in the next few years, financing the re-development of Kiruna three kilometres east due to mining-related subsidence. The story of shifting a whole town has indeed captured worldwide media attention.

Still, with iron prices on the rise and the mining level at the Kiruna site blasted to an all time low this year, LKAB is looking towards expansion, with a vision to increase exports from 27 million tonnes to 37 million tonnes over the next three years.

OVERCOMING THE CUSTOMS MINEFIELD

Kiruna from above

KGH CUSTOMS NEWS - LKAB

Ship loader at LKAB Logistics at LKAB locomotive

KGH CUSTOMS NEWS - A&V SERVICES

Managing VAT obliga-tions to reward busi-ness with trade benefits

På 90-talet identifierade KGHs speditörer att vissa kunder hade ett registreringbehov i Sverige. För att kunna tillgodose detta behov startades KGH Redovisning. Idag består bolaget av 25 st anställda och är en av Sveriges största fristående byråer.

Vi är en SRF-ansluten ekonomi- och redovisningsbyrå som ingår i KGH Group ( www.kghcustoms.se ). Koncernen grundades 1963 och har mer än 600 anställda på ett 30 kontor i Sverige och Eu-ropa.

Ska du etablera dig på den svenska marknaden?Funderar du på vilka företags-registreringar och tillstånd som behövs?

Låt oss vara din etablerings lots. Vi erbjuder konsultationer inom företagsregistrering, moms, skatt, personal samt tull och tillstånd.

När ditt företag är etablerat kan vi hjälpa dig/bistå med allt löpande arbete såsom bokföring, bokslut, deklarationer samt löneadminis-tration.

Företagsetablering Moms och momsombud Konsultationer i samband med varu- och tjänsteflöden mellan länder Löpande redovisning Bokslut och årsredovisningDeklarationer Lön- och personaladministra-tion Tull / tillstånd (länkas till CC)

MANAGING COMPANIES ACCOUNTING AND VAT OBLIGATIONS KGH offer first-class expertise in supporting foreign compa-nies through every step of the accounting and VAT process. Starting with a thorough consultation with guidance on which forms of registration are required, it also covers licenses and other necessary authorisations including customs handling, human resources, tax consultations etc.

We know that accounting and VAT compliance is often a complex affair, especially when doing business in countries with varying rules and regulations. Our experienced team manages these processes, allowing companies to focus on their core business.

Consultations through customs are provided via our colleagues at KGH Customs Services. Once a company is established, we can perform a full circle of daily services for the company, such as bookkeeping, payroll, annual closing etc.

Our customers value this knowledge since we are perhaps the only supplier in Sweden who can act as a guide through the whole process in-house. We can also assist with all on-going administrative tasks such as accounting, financial statements, tax returns and payroll.

We offer the following services:• Corporate establishment• VAT representation• Consulting in connection with goods and services flow between countries• Accounting/Bookkeeping• Financial statements and annual reports• Tax declarations• Payroll and HR

KGH CUSTOMS NEWS - INTRODUCING KGH’S A&V TEAM

Introducing KGH Accounting and VAT: Anita Dahl (pictured left) and Marie Svahn (right)

BACKGROUND Anita lives with her family in the city of Halden, Norway. Marie lives on the island of Resö, close to Strömstad in Sweden with her family.

INTERESTS Anita: Travel, literature, walking, skiing and photography. Marie: Since much of her working day is spent in front of a computer she enjoys the outdoor life as much as possible in her spare time. Hobbies include sailing and rowing with her small boat, swimming, walking, sports and reading.

SCHOOL/UNIVERSITY Anita: Higher education studies in Norway, specialising in Economics and Administration. Marie: Authorised accountancy consultant with higher education studies in Gothenburg and The Association of Swedish Accounting Consultants (SRF).

WORK EXPERIENCE Anita: Managing Director KGH Økonomi AS since 2012. Authorised Accountant at Praktikertjenesten AS, Accountant KGH Økonomi AS and the former KGH Spedition AS now KGH Customs Services AS.Marie: Managing Director, KGH Redovisning since 2004. Became boardmember for Sparbanken Tanum in 2012. Previous experience: Office Manager, Föreningsbanken, Fjällbacka 1991-1998, Office Manager, KGH Redovisning 1999-2004.

COMPANY FACTS1991: KGH Redovisning AB was established. The company name at that time was Abovo Ekonomi AB and premises were shared with KGH Customs Services. The company was established after identifying the need among customers at the border to register their company in Sweden. Only VAT-representation services were initially provided but a market for additional services was soon discovered. The company extended into bookkeeping, annual closings, payroll and all services undertaken by accountancy firms.

1997: Abovo Økonomi AS was established, (today called KGH Økonomi). 2004: The shared premises with KGH Customs become too small and the company relocates to an office of their own in Strömstad with eight employees. KGH Økonomi moves to Ørje, Norway.

2011: Expansion means another move with five employees at the new Grebbestad office and new premises in Strömstad with 17 people. KGH Økonomi opens up a new office in Halden, Norway. 2013: With a combined total amount of 31 employees, KGH Redovisning and KGH Økonomi change name to A&V (Accounting and VAT) and transform into one business unit within KGH’s total offering.

A&V SERVICESACCOUNTING AND VAT

KGH Redovisning and KGH Økonomi change name to A&V (Accounting and VAT) and transform into one business unit.

AUSTRIA BELGIUM DENMARK GERMANY NETHERLANDS NORWAY SWEDEN www.kghcustoms.com

YOUR INDEPENDENT PARTNER FOR CUSTOMS COMPLIANCE