UPS WTO Trade Facilitation Agreement Webinar Powerpoint

WTO Trade Facilitation AgreementFebruary 14, 2017

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UPS® Customs Brokerage Webinar 14 February 2017

WTO Trade Facilitation Agreement

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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions

and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of

this presentation, or for the consequences of any actions taken on the basis of the information provided.

© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

WTO’s Trade Facilitation Agreement

• Host

• Greg Maddaleni, LCB

• Customs Brokerage Manager

Presenters

Changing the global trade landscape

• Panelist

• Norm Schenk, LCB

• Public Affairs Vice President

• Panelist

• Susan Zimmerman

• UPS Public Affairs

Global Borders Policy

• Panelist

• Ron Shepherd, LCB

• UPS Trade Management

Services Vice President





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WTO Trade Facilitation Agreement

Agenda

Current trade environment

Why trade facilitation?

TFA agreement overview

Key provisions

Ratification and implementation

UPS Tradenomics

UPS Outreach





WTO’s Trade Facilitation Agreement - Discussion

Global developments

• According to the WTO, 2017 Trade growth revised

downwards: between 1.8% and 3.1%

• Previously forecast at 3.6%

• Trade openness is receding as trade regulation is on the rise

Source: World Bank national accounts data, and OECD

National Accounts data files

Source: Global Trade Alert, Adapted from IMF 2016b

30%

35%

40%

45%

50%

55%

60%

65%

1990 1995 2000 2005 2010 2015

Declining trade openness

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

1990 1995 2000 2005 2010 2015

Temporary trade barriers on the rise

Average of imports and exports of goods

and services(% of GDP) Share of total products

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and

other public sources and reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and

completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.


$2.3B

antidumping/

countervailing

duties owed but

not collected

US Trade Developments

Renewed emphasis on compliance

• Penalties / payments up

• Customs and Border Protection (CBP) audit surveys

• Used where CBP sees a general trend

• CBP usage tripled in 2016 and expected to continue to grow

• Informed compliance letters packets

• Used where CBP sees a specific irregularity or anomaly

• Includes letter and DVD packet

Source: Clamp down on Reasonable Care, American Shipper, November 2016

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and

reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public

sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.


US Trade Developments

The New Administration

• TPP withdrawal1

• T-TIP on hold2

• NAFTA renegotiation?3

• Preference towards bilateral trade agreements4

• New corporate tax proposal with trade related rules5

Source: 14 things to watch now that the U.S. has withdrawn from TPP trade deal, The Washington Post, January 27, 20172By scrapping TPP and TTIP, Trump has boosted American jobs in the short term – and destroyed them in the long term, The Independent, January 24, 20173Trump to Sign Executive Order on Plan to Renegotiate NAFTA With Mexico, Canada, CNBC, January 24, 2017 4TRUMP TO SEEK BILATERAL TRADE DEAL WITH JAPAN AFTER REJECTING MULTILATERAL TPP, Newsweek, January 26, 20175Adios NAFTA, Pisani & Roll, LLP





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WTO – TFA Overview

A multinational agreement that improves the movement of goods globally

Transparency and predictability

• Availability of information, including internet publication and on line query

Procedural simplification and

streamlining

• Simplifies documentary requirements, processing of data, and clearance procedures

Coordination and cooperation

• Policy and documentary/ physical control across various border agencies

Source: tfafacility.org





Key Benefits

• Reduction in trade costs (-14.5%)

• Economic expansion (+20 millions jobs)

• Reduced import processing and export processing time

• Up to 79%

• Greater standardization of trade processes globally

Source: Launch of the World Trade Report 2015, World Trade Organization, October 26, 2015; Moïsé, E. (2013), “The Costs and

Challenges of Implementing Trade Facilitation Measures”, OECD Trade Policy Papers, No. 157, OECD Publishing.





Transparency and predictability

• Information availability

• Practical guides

• Fees and charges

• Publish new regulations in advance (with opportunity to comment)

• Notifications for commodity specific enhanced controls

• Advanced rulings

• Binding

• Appeals

• Rights to traders to obtain review and corrections


Implications:

More predictable importing and exporting of goods for a trader





Procedural simplification and streamlining

• Pre-arrival processing

• Temporary imports

• Release prior to entry submission

• Single window

Implications:

Streamlining is designed to shorten processing times






Procedural simplification and streamlining

• Authorized economic operator (AEO)

• Risk management

• De minimis

Implications:

Designations such as AEO can provide benefits for specific importers and

exporters






Coordination and cooperation

• Customs cooperation

• Sharing declaration information – member to member

• Border agency cooperation

• Facilitate cross agency and cross border trade

• Freedom of transit

• Regulations and formalities reduced or eliminated

Implications:

Increased cooperation is intended to reduce delays but also improve compliance

enforcement






Ratification and implementation

• 110 Countries required to ratify

• 108 countries have ratified so far

• Developed, developing and least developed country designations

• Categories A, B and C provisions (for developing and least developed countries)

• Category A: to be implemented by the time the agreement enters into force

• Category B: to be implemented after a transitional period following “entry into force”

• Category C: require the acquisition of assistance and support for capacity building


Susie





• Impact of Advance Ruling and Appeal/Review articles

• Disciplines on Fees and Charges (Penalties)

• Border Agency Cooperation

• Movement of Import Goods under Customs Control (in-bond)

• Formalities connected with importation, exportation, and transit

• Customs Cooperation





• Release and Clearance of Goods

– Pre-arrival processing

– Electronic payment

– Separation of release from payment

– Publication of release times

– Authorized operators

– Expedited shipments & de minimis

– Perishable Goods





Global Alliance for Trade Facilitation (GATF) and UPS

Overarching aim of accelerating ambitious trade facilitation reforms

• GATF sponsored by the governments of Australia, Canada, Germany, the United

Kingdom and the United States

• Technical and financial assistance

• Benchmarking and evaluation based on established business metrics.

• Mobilizing public-private partnerships to drive change

• Engaging local businesses and associations

• UPS Public Affair’s longstanding role to promoting free trade globally

• How can UPS assist you in navigating particular countries or specific projects?

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Questions and answers

UPS Trade Management Services – when you join forces with an expert

Consulting services Managed services

Compliance consulting Process management

Trade consulting Broker/forwarder management

Tariff engineering FTA (free trade agreement) management

Security initiatives consulting Post-entry management

FTA feasibility evaluations Data management

Classification management

Import/export license management

Denied-party screening management





WTO TFA

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• WTO Trade Facilitation Agreement to provide opportunity in an otherwise uncertain trade environment

• Please consult the TFA Agreement and Implementation Overview

• Ask today upon checking out

• Inquire about your own WTO TFA priorities

• Inquire upon checkout

• Upcoming webinar:

• The New Post Entry (March 29, 2017)

The material and information contained in this document is for general information purposes only. UPS does not act as a customs law adviser. You

should not rely upon this material or information as a basis for making any business, legal or any other decisions. UPS makes no representations or warranties

of any kind, express or implied about the completeness, accuracy, reliability, suitability or availability with respect to the material and information contained in

this document for any purpose. UPS will not be liable for any false, inaccurate, inappropriate or incomplete information presented in the document.

Thank you

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Ratification

EN

TR

Y IN

TO

FO

RC

E (

EIF

)

2/3

Me

mb

ers

of

the

WT

O a

cc

ep

t th

e P

roto

co

l o

f A

me

nd

me

nt

an

d s

ub

mit

it

to t

he

WT

O. Within 1 Year Within 2 Years Within 3 Years Within 4 Years Within 5 Years/6th Year

WT

O Receiving Protocols of Amendment

from Members

Launching the WTO’s Committee

on Trade Facilitation (CTF)

Collecting Members’ notifications of definitive dates of implementation for

Category B and C commitments;

Extending implementation deadlines for Members notifying of difficulties

(ongoing until full implementation)

Conducting reviews of operation and

implementation of the TFA

Deve

lop

ed

Co

un

trie

s Depositing accepted Protocols of

Amendment to the WTO

Ensuring Implementation of all

provisions upon EIF

Providing Developing Countries with assistance for implementation of Category C

commitments;

Informing the Committee of progress

Providing LDCs with assistance for implementation of Category C

commitments;

Informing the Committee of progress

Deve

lop

ing

Co

un

trie

s Depositing accepted Protocols of


Notifying WTO of Category A

commitments, implemented by EIF;

Notifying WTO of indicative dates for

B & C commitments;

Informing WTO of assistance

requested for C commitments

Notifying the WTO of definitive

dates for implementing Category B

commitments;

Informing Committee on Trade

Facilitation of arrangements for

Category C assistance

Ongoing reporting to Committee on Trade Facilitation of progress on assistance;

Notifying the WTO of definitive dates for Category C implementation

Le

as

t-D

eve

lop

ed

Co

un

trie

s (

LD

Cs)

Depositing accepted Protocols of


Notifying the WTO of Category A

commitments (to be implemented

one year after EIF);

Notifying WTO of Category B

commitments and may submit

indicative dates for implementation;

notifying WTO of Category C

commitments

Informing the

Committee of

assistance required

for implementation of

Category C

commitments

Confirming Category B

commitments and

definitive implementation

dates (unless extension

requested of the

Committee)

Informing the

Committee of agreed

assistance for

implementation of

Category C

commitments and

submit indicative dates

for implementation

Reporting to the Committee of progress

on assistance and support;

Notifying of definitive dates for

implementing Category C commitments

(unless extension requested of the

Committee)

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