W Issue Four O : Spring 2019 R L D

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I n s t i t u t e Making the Case for International Trade o f

E x p Why Exporting Matters in 2019 o r t

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I n t e Andrew Staines – Why the WTO matters and the UK’s r n a role within it t i o n a Barry Gardiner MP – l

Assessing the UK’s future trade policy T r a d e Alexandre Fasel – Multilateralism versus protectionism

Stephen Phipson – The importance of trade to UK manufacturing

Chris Southworth – Why international trade matters for the UK

Tips on Doing Business in:

u Argentina u Egypt u Ukraine u Qatar I s s u e

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9 www.export.org.uk : @ioexport Open to Export is a free online information service from The Institute of Export & International Trade, dedicated to helping small UK businesses get ready to export and expand internationally

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A wealth of free information and A comprehensive webinar Quarterly competitions for the practical advice on our website programme covering all aspects chance to win £3,000 cash and using: of international trade further support

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Welcome

It has never been more important to ‘make the case for international trade’ – as our theme for this edition asks us to do. Beyond Brexit, there are continued threats and opportunities for traders to deal with around the world, ranging from protectionist rhetoric and trade wars to greater connectivity and the continuing technological developments that will transform our world.

Once again, we draw on a wide range of thought leaders and business innovators in World Trade Matters, all of whom make convincing and vital arguments for the important role that global trade will have in both today and tomorrow’s world. We are delighted to bring you Lesley Batchelor OBE, FIEx (Grad) articles from leading voices in the WTO, ICC, UNCTAD and EEF, as Director General well as guest contributions from Barry Gardiner MP, the Shadow Secretary of State for International Trade, and the Ambassador of Switzerland to the United Kingdom Alexandre Fasel. Welcome We also update you on what was an event-packed end to 2018, including reports from our London and Coventry World Trade to the fourth edition of Summits, our glamorous Queen's Awards Winners Gala Dinner, and World Trade Matters. the final of our ‘Open to Export International Business Awards’ project in Geneva, for which we were awarded the title ‘WTO-ICC Small 2019 could well be a pivotal year Business Champion’. Alongside regular features like our market in global trade and debates about guides, member profiles, international focus and student interviews, Brexit will continue for years to come. we also hear from several of our fantastic members about what As we put this journal to the printers they’re doing to help businesses enter international trade. we are are reminded that it will be Looking ahead, we're glad to share some of the key activities we are distributed during a period in which working on in 2019. Much of our focus will be on ensuring that anything really could happen with businesses are prepared for whatever might happen with Brexit. Our Brexit, and the only certainty we motto has long been that it’s ‘never too early to start preparing’ and can predict right now is continued businesses really cannot afford to stick their heads in the sand anymore. uncertainty. u One significant update we highlight is that we will be running a vastly expanded training programme to help businesses gain skills and information around customs procedures, culminating in a new ‘Customs Practitioner Pathway’. We’re delighted to be partnering with EEF in delivering this expanded programme and we also welcome the funding being provided by government towards many of the training courses we are delivering.

As well as these exciting new programmes we are delighted to Each quarter we will bring you new announce our new initiative with International Terms and Conditions. and interesting articles and we After hearing about the many terrible experiences smaller businesses would like to hear from you, our have encountered when exporting, we realised that an increasing members, as experts in your own number of them were acting with no contract and no payment fields. Contact [email protected] terms agreed. We decided that action was needed to provide the with your ideas or thoughts. basic premise for those trading internationally and we have produced a series of International Terms & Conditions as templates. Any Business Member can now trade with the confidence that they are covered in terms of disputes, bribery and anti-slavery. This is a vital new member benefit, and we are proud to say that John Mahon, Director General for Exports at DIT, is supporting us with it.

Whatever happens in 2019 and beyond, please do make use of our training courses, qualifications, helpline and membership packages to embrace the opportunities that global trade will always deliver. n

www.export.org.uk : @ioexport : 3 Doing Business in Argentina 30

IOE&IT Director General Art Direction & Design Lesley Batchelor OBE Paul King / Claire King www.twistedgifted.co.uk Editorial Directors [email protected] Sam Pileggi William Barns-Graham

® Production Co-ordinators Craig Smith Luvinson Fernandes

IOE&IT business members receive a discount for advertising. Call us on 01733 404400

The Professional Journal from the Institute of Export & International Trade is published four times a year. The contents may not be reprinted or reproduced without prior written permission. The publishers are not liable for statements made and opinions expressed. While every care is taken, prices and details are subject to change and the publisher can take no responsibility for omissions and errors.

Contact: The Institute of Export & International Trade, Export House, Minerva Business Park, Lynch Wood, Peterborough, PE2 6FT, United Kingdom

Email: [email protected] General enquiries switchboard: 01733404400

For more information about the Institute please visit our website: Export.org.uk

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Highlights

08 Lord Empey Kt, OBE Vice President, Institute of Export & International Trade u

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Andrew Staines UK Deputy Permanent Representative to the World Trade Organization u

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Barry Gardiner MP Shadow Secretary of State for International Trade u

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Ambassador Alexandre Fasel Multilateralism versus protectionism in global trade – the experience of Switzerland as an open economy u

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#MakeTradeWork Jan Hoffman from UNCTAD makes the case for facilitating trade and its transport u

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London World Trade Summit 'Exporting is easy,when you know how' u

56

International Focus – Rose Blatch, ITRISA, on the changing customs landscape in South Africa u

www.export.org.uk : @ioexport : 5 77 Doing Business in Qatar CONTENTS

08 Lord Empey Kt, OBE, Vice President, Institute of Export & International Trade

10 Andrew Staines – UK Deputy Permanent Representative to the World Trade Organization

13 Number of UK SMEs exporting on the rise New online tool to help tackle bribery and corruption

14 Ports in the frontline of projected climate change impacts

15 CPTPP is now in force, promoting free trade in the Pacific

Grants available for SMEs to attend international trade shows

17 Surge in UK AEO Applications – UK exporters preparing for life after Brexit

18 Barry Gardiner MP Shadow Secretary of State for International Trade

20 Multilateralism versus protectionism in global trade – the experience of Switzerland as an open economy

22 #MakeTradeWork: The case for facilitating trade and its transport

24 More than ever, international trade matters to the UK. The UK should take the lead in global trade policy, writes Chris Southworth, Secretary General, ICC United Kingdom

26 Becoming a truly independent trading nation

28 Government Grants and IOE&IT Training Courses

30 Market Profile: Doing Business in Argentina

36 Profile of Marcel Landau MIEx

37 London World Trade Summit - 'Exporting is easy, when you know how' 10

40 Why Export Matters: Interview with Dr John Llewellyn (Llewellyn Consulting)

42 Managing Risk: Interview with Martin Dubbey (Harod Associates)

44 How robust risk management can help you go global with confidence

46 The Institute of Export & International Trade are ‘WTO-ICC Small Business Champions’ 37 48 Dytech Limited (Zambia)

50 Market Profile: Doing Business in Egypt

56 The changing customs landscape in South Africa

58 The Dangerous Goods Regulations

60 Measuring services trade matters

62 Big Data and Demand Planning

64 Terms and Conditions: the Secret Ingredient to Success in International Trade

66 New international T&Cs launched to help UK 46 businesses export confidently and successfully

67 Market Profile: Doing Business in Ukraine

73 Student Interviews - Manjit Thethi

75 Student Interviews - Gift Chikola

76 Student Interviews - Jade Forshaw

77 Market Profile: Doing Business in Qatar

84 The Institute Celebrates with the Queen's Award Winners in International Trade

86 World Trade Summit - Report from the Coventry Summit 84 88 Our latest round-up of recommended shows and exhibitions, as well as our training courses

90 Export Action Plan – Lhamour (Mongolia)

92 Why should SMEs internationalise?

94 ‘Use it or lose it’ – access apprenticeship funding quickly in 2019

95 Why should SMEs internationalise?

97 Technical Help FAQs

www.export.org.uk : @ioexport : 7 World Trade Matters

Making the Case for International Trade

Lord Empey Kt, OBE, Vice President, Institute of Export & International Trade

Most individuals and companies who trade both nationally and internationally are currently focusing on what will happen after 29 March, the date on which the United Kingdom, by law, is due to leave the European Union. Brexit has sucked all the oxygen out of politics and business discussions during the last two and a half years.

8 : Membership : Training : Qualifications : Advice The Professional Journal from the IOE&IT

Making the Case for International Trade

Those who trade nationally, but for international trade in the future. graduates each year in a rapidly who may import goods/services I am in no doubt that the UK has improving university sector that is from the EU, are in little better been negligent in its approach to climbing up the international rating shape than those who trade international trade. The last time the rapidly. Even a small country, such internationally as well as locally. UK had a surplus in the goods we as Singapore, spends a lot of its Be it supply chains, the increasing traded with the rest of the world resources on further education and cost of imports due to currency was in 1983! skills development. fluctuations or the general uncer - tainty arising from our national Since then we have been depending By contrast, the UK has not had a inability to make and ratify a on services, international dividends good record on skills. Our schools successful negotiation with the EU, and asset sales to balance our are still producing large numbers of the problems are the same. Nobody books, which in recent decades we pupils who leave with minimal levels can tell business exactly what is have failed as a country to achieve, of literacy and we continue to have going to happen. Consequently, and we run a large trade deficit and low levels of productivity compared decisions on future investment are fund our public services with to our major competitors. in many cases on hold, as are sales borrowing as taxes are insufficient. and marketing campaigns abroad We need to up our game. We need as the clarity that is so urgently This can’t go on indefinitely. We to rethink our priorities as a nation needed alludes us. One thing I can need a national policy shift and a and look outwards for our future assure you of is that there will be no significant change in attitude as a wealth. We need taxes to fund our certainty about any of these matters country to how we earn a living in growing demand for social services until decisions can be taken in the new world. and welfare demands. This can only Parliament on the Prime Minister’s come about if we succeed in selling deal or some of the mooted There is no doubt that international more products and services to the alternatives to it, whether that be trade has taken millions of people rest of the world. Nobody owes extending Article 50 to allow for out of poverty, but equally, for the Britain a living. more talks with the EU, failing to developed nations like the United negotiate a deal, a Norway EEA Kingdom, there have been casualties A paradigm shift in attitude is option, another referendum, and as former industrial areas of the needed, especially in our education so the list goes on. country have seen traditional system, at all levels as well as in industries decline and close. Whitehall. But this also applies to At time of writing all the above the community as a whole. All too and more could still happen and We have failed as a nation to give often, I fear, a degree of snobbery a general election still lurks in the sufficient priority to earning a living is ingrained amongst some parents background as a possibility! by trading with other nations, when they are helping their child Remember, to prevent a no deal and we have failed miserably to choose careers. Business and trade Brexit on 29 March we need organise our education system so are not always seen as having the either a deal ratified by Parliament that it prepares our young people same status as the professions or or a change in the law to amend for the world of work. public service, yet it is largely from the EU Withdrawal Act or a new Act this sector that we must generate to provide for a second referendum. Britain does not give the same our wealth. Both would be nightmares to get ‘parity of esteem’ to those who through Parliament and a second decide to enter business and trade So, we’ve all got a job to do, and referendum, even assuming agree - compared to those who enter the the IOE&IT must be front and ment could be reached on the traditional professions, such as law, centre in promoting the merits of choices to be offered on a ballot accountancy and academia, for trade and the benefits that it can paper, could take until the Autumn example. This contrasts sharply bring. We must encourage more to organise. Can we really afford with our principle international companies and policy makers to another nine months of uncer - competitors. In Germany, the title take advantage of the Institute’s tainty? ‘Herr Engineer’ is highly regarded excellent qualifications. A more and a greatly valued profession and educated workforce will trade But leaving all this aside, it might be our Asian competitors are producing more profitably and will bring useful to look at the bigger picture hundreds of thousands of science benefits to all. n

www.export.org.uk : @ioexport : 9 World Trade Matters

WTO

Making the Case for International Trade The United Kingdom Mission in Geneva is working hard to establish the UK’s position in the World Trade Organization by March 2019 so that we are prepared for a range of possible outcomes to our withdrawal negotiations with the European Union. Why does the WTO matter to the UK and the global economy?

on life support, following the Two further agreements quickly acrimonious collapse of negotiations followed at the tenth WTO Ministerial in 2008. WTO members steadily Conference held in Nairobi, Kenya, began to commit their negotiating in 2015. I chaired the WTO’s resources to bilateral trade liberali- Information Technology Agreement sation, with over 500 FTAs agreed. (ITA) Committee throughout 2015, The system was also desperately when many of the participants to trying to contain protectionism in the ITA committed to the biggest the wake of the financial crisis. tariff liberalisation exercise since the Global growth was slow to bounce Uruguay Round, reducing bound Andrew Staines back after the financial crisis and tariffs to zero on £1 trillion of global UK Deputy Permanent policymakers started looking trade, including satellite navigation Representative to the World beyond monetary policy for devices, video game consoles and Trade Organization sources of economic growth and solid-state hard drives. I fought hard job creation, including in the WTO. for British export interests, with the final deal guaranteeing that no The first significant breakthrough tariffs are paid on over £6 billion of To put it simply, if we did not have was achieved in 2013, at the ninth British technology sales overseas. the WTO, we would need to build WTO Ministerial Conference in Bali, The last major set of tariff cuts it. Developing, agreeing and imple- Indonesia, when WTO members under this agreement took effect at menting a near-universal system concluded the Trade Facilitation the start of this year. WTO members of common rules and predictable Agreement. It was the first significant also took the historic decision to trading terms is one of the biggest multilateral deal agreed by the fully eliminate agricultural export multilateral achievements of the last WTO, designed to make trade subsidies. century and a central pillar of the across borders easier, reducing rules-based international order. As delays and costs, and improving Despite these successes, we have one of the founders of the modern transparency, predictability and seen new challenges emerge over world trading system, and one of its consistency. The agreement was the past decade since the global biggest beneficiaries, the UK will worth up to £1 billion to the UK financial crisis, including growing continue to be one of its strongest economy through cutting the red concerns over global trade imbal- defenders. tape in British export markets. The ances and fears from communities UK advocated strongly for the Trade who feel left behind by trade, However, it would be naïve not Facilitation Agreement (TFA), including globalisation, technology and the to acknowledge that, for all of its in our capacity as a vice-chair of the changing labour market. The fourth inherent qualities, the WTO has conference and particularly working industrial revolution has the been plagued by a number of false with the least developed and potential to transform our lives for starts and unrealised potential for developing members of the WTO, the better, but also comes with much of its 24-year existence. A for whom the TFA would deliver policy decisions and other chal- decade ago, the Doha Round was the greatest impact. lenges that we need to address. u

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WTO

The best way to address such issues and concerns is advances, becoming bogged down in procedural debate, through global cooperation, based on international rules. whilst online activity has grown unabated. WTO members Given its position at the apex of global trade governance, have agreed not to impose customs duties on electronic the WTO should be at the heart of this work – a point transmissions, for example, but can only agree to roll this underscored by G20 Leaders, who acknowledged the forward for two years at a time. We should now make this need for the WTO to react to these concerns when they permanent. Some WTO members demand that source met in Buenos Aires last November, demanding the code must be transferred as a condition of trade or block “necessary reform” of the multilateral trading system. the free flow of data. These issues need to be addressed.

It is a widely shared assessment that the WTO and its The organisation has struggled to find consensus body of rules have not kept pace with the changes in the amongst 164 heterogeneous members with conflicting world economy. Nowhere is this more obvious than the views. To use the metaphor of a previous WTO Director- digital economy. The new WTO opened its doors in General, WTO negotiations were akin to driving a car with January 1995. Less than six months earlier, the New York ‘one accelerator and 164 hand-brakes’. Given these diffi- Times had declared “The Internet is Open”, celebrating culties, the WTO membership is exploring whether more the first retail transaction on the internet. Less than 0.5% creative and flexible approaches can deliver progress, of the World’s population was online, compared with including through the joint-statement initiatives launched over 50% today. We sit on the cusp of a number of new at the eleventh Ministerial Conference in Buenos Aires, transformative technologies with the potential to reshape Argentina, in 2017. These discussions include important many aspects of our lives. But the global trade rules for work to examine how WTO negotiations on the trade- electronic commerce have not kept pace with these related aspects of digital commerce could contribute u

www.export.org.uk : @ioexport : 11 World Trade Matters

WTO

to harness the full opportunities from the internet and Geneva. The UK is a full and founding member of the how the WTO can support small and medium size WTO and we cannot be kicked out or denied membership traders. The initiatives are open to all WTO members as a result of Brexit. We are working hard to secure a who wish to see progress, be them large and small, smooth and orderly transition, taking the necessary developed or developing. steps to establish UK goods and services schedules in the WTO and to maintain continuity in the government The WTO should support a level playing field for importers procurement agreement. The UK’s strategy has been and domestic producers alike, but distorting subsidies to keep this process as simple as possible, given the and state intervention in some other WTO members unprecedented circumstances, by replicating as far as threatens fair competition. The WTO monitors possible our existing rights and obligations in the WTO, compliance with the existing rulebook but lack of as part of the EU. We have therefore simply copied the transparency from many members stymies such efforts. thousands of tariffs lines in our EU schedule into our Furthermore, the WTO’s dispute resolution mechanism new UK-only schedules and, late last year, opened is close to paralysis because of the blocking of formal negotiations on the agricultural tariff rate quotas. nominations of Appellate Body members. We need We have also circulated a draft UK services schedule, to look at concerns raised by members about this replicating our commitments as a member of the EU. process and examine what we might do to address them, but without jettisoning the core strengths of The UK stands ready to play a full role in responding to the current setup, such as the binding and independent the challenges and opportunities in the WTO, in line nature of the system. The EU has made some important with our commitment to free trade as a driver of future proposals to the WTO membership in this area. economic growth and jobs and to the international rules-based system. We look forward to working with We are taking these challenges seriously, including British businesses and exporters as we do so. n expanding the UK’s trade and diplomatic resources in

PROFILE - ANDREW STAINES

Andrew Staines is the United Kingdom’s Deputy acquisitions and disposals. He also spent six years Permanent Representative to the World Trade with Deloitte, managing corporate finance and Organization and United Nations in Geneva, reporting advisory projects in the UK and Australia, and has to Permanent Representative Julian Braithwaite. served as a Economics Specialist Adviser to the Ambassador Staines Ambassador Staines has spent Treasury Select Committee in the UK House of the past decade working on global trade and WTO Commons. issues, in London, Geneva and Washington DC. Ambassador Staines is a Chartered Accountant Ambassador Staines is currently Chair of: the by training, a Fellow of the Institute of Chartered Working Party for the accession of The Bahamas Accountants in England & Wales, a past winner to the WTO; ISAR, the United Nations committee of the Hewitt Prize, and a charter holder of the responsible for accounting standards and; the Chartered Financial Analyst Institute. He holds World Intellectual Property Organisation Program a degree in economics from Gonville & Caius & Budget Committee. He has previously chaired College Cambridge and completed the Harvard’s the WTO’s committees responsible for Anti- Kennedy School executive programme for Senior Dumping and the Committee overseeing the Managers in Government. Information Technology Agreement. Mr Staines is married to Tracy Staines and they have Before joining the public sector, Ambassador one son. They share their time between Geneva Staines was a senior executive at Anglo American and Chamonix, France. n plc, leading a number of major multi-million asset

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NEWS

Number of UK SMEs exporting on the rise

A recent report from the Office for National Statistics The new package provides several of the Institute’s show that the number of SMEs exporting to overseas existing membership benefits, including its helpline, markets has increased by 6.6% to 232,000 (9.8% of all discounts on training and access to a wealth of valuable SMEs), a vindication of the work being done by the information. It marries all this with guided support government and industry in raising the awareness of through the Export Action Plan tool on Open to Export opportunities in international trade. The same report and bespoke market research. has shown that the number of large businesses exporting has also increased by 6.1% to 3,500 (41/7% The Institute took on Open to Export in 2017 as part of all large business). of its efforts to encourage SMEs into export and we are delighted to have already played a role in the positive The growing number of businesses exporting has led trends that have since emerged. We are also proud to an increase of 4.4% in the total exports from the UK, supporters of the government’s Exporting is GREAT which reached £637bn in September. One of the key campaign. developments has been the increase in the number of new businesses looking at exporting at an earlier stage Upon the release of the figures, the Secretary of State of their development. The number of companies who for International Trade, Dr Liam Fox MP, said: “Today’s are less than 2 years old to have exported in the last news is further evidence that the high-quality goods year has increased by 19.9% to 47,000. and services produced by British businesses are selling all over the world. As an international economic While this increase in the number of SMEs exporting department, when my Ministerial team and I travel is undoubtedly good news for the UK economy, there abroad, we see first-hand the unprecedented demand is still much more to be done to encourage many of for British products, and the results of the Annual the remaining 90.2% of SMEs not yet exporting. It is Business Survey show that we are responding to the for this reason that the Institute has launched its new demand. ‘Buccaneer’s Guide to Export Success’ – a new membership package designed to give new exporters “Our Export Strategy sets out an offer to every business all the information and support they need to take their that has the ambition to start exporting or increase their first steps in international trade. existing operation, as we look to move exports as a percentage of GDP from 30% to 35%.” n

New online tool to help tackle bribery and corruption

Transparency International UK has international baseline in anti- approach to tackling bribery launched a new online tool, designed bribery compliance. New legislation against Transparency Interna - to provide businesses with practical such as Argentina’s new corporate tional’s recommendations and can and in-depth guidance on tackling liability statute (2017), Sapin II in be used by businesses at all stages bribery and corruption. France (2016) and Brazil’s Clean of the development or improvement Company Act (2014), are spreading of their anti-bribery programme. The new Global Anti-Bribery the net wider than even the US Guidance draws on the expertise FCPA and the UK Bribery Act. There As recent scandals have shown, of leading compliance and legal is accordingly a greater need for even highly respected companies experts over the course of eight multinational companies to adopt can be revealed to be relying on years. The free-to-use resource is global standards which are consis - bribery and corruption to conduct available for businesses seeking tent across all their operations in their business. It’s almost inevitable international best practice and order to allow them to operate that strengthening either the is now available at legally and ethically around the culture, governance or anti-bribery www.antibriberyguidance.org world. programme within these companies would have prevented such Powerful anti-bribery legislation The tool can be used to allow any incidents or at least provided an has helped to create a demanding company to benchmark their own early warning. tn

www.export.org.uk : @ioexport : 13 World Trade Matters

NEWS

Ports in the frontline of projected climate change impacts

Regina Asariotis, the Chief of Policy declining emissions. This coincides Industry must act quickly and Legislation at UNCTAD, told with continued concern that the UNCTAD nonetheless urged the 24th Conference of the Parties ambitions of the Paris Agreement industry to act quickly. Asariotis said: to the United Nations Framework on climate change will not be Convention on Climate Change realised due to the USA’s withdrawal "The hardest hit areas, coastlines, (COP24) in Katowice, Poland, that in 2017. will affect us all since the lion’s ports and coastal infrastructure are share of trade itself is managed at the front line of the projected IMO aims to halve greenhouse gas through international shipping and threats of climate change. emissions by 2050 ports. The shipping industry was not Rising tides and increasingly volatile included in the Paris Agreement, “The impacts may be severe, and weather trends leave ports suscep - though the International Maritime given what is at stake, we have no tible to damage, which has signifi - Organisation (IMO) is committed to time to lose. cant supply chain implications. The halving the industry’s greenhouse US National Climate Assessment in gas emissions by 2050. “Currently there is a disconnect November 2018 warned that ports between the evidence from the could see tides rise by one to four IMO has not indicated many clear scientific community and the pace feet by 2100. steps on how this will be achieved of policy change made by govern - and currently has no restrictions ments. Asariotis made the point that around carbon emissaries. It does, climate change is already having however, require all ocean carriers “Our research aims to help bridge an effect and that industry should to cut their sulphur emissions by this gap by providing evidence- not rely on regulation to force it to 2020. based information to help policy - prepare and adapt its practices. makers understand the most at risk A.P. Moller – Maersk recently areas and what kind of policy The summit came on the back of pledged to attempt carbon neutral - interventions are needed, now, to a recent report by the International ity by 2050 though it also stated manage the risk, adapt and reduce Energy Agency showing that that new vessel technology would the potential economic impacts.” n advanced economies have increased need to be developed before this their carbon emissions in 2018, could be realistically achieved. following five preceding years of

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NEWS

CPTPP is now in force, promoting free trade in the Pacific

The Comprehensive and Progressive Agreement for expand into new markets and capitalise on the growing Trans-Pacific Partnership – also known as CPTPP – demand for quality British goods and services. came into force at the end of 2018 in what could be a key moment for the promotion of free trade around “This agreement will also help to promote free trade the world. CPTPP is widely recognised as one of the against a backdrop of heightened tensions in the global most progressive free trade agreements due to its trade system. It is in all of our interests to ensure an provisions for trade in services, digital trade and open and rules-based trading system wins out and that e-commerce. The agreement will also eliminate 95% a trade war in the Pacific does not hit British house - of tariffs on goods trade between 11 countries around holds in the pocket.” the Pacific rim, including Australia, Canada, Japan, Malaysia and Vietnam. Could the UK join CPTPP? The Department for International Trade (DIT) is CPTPP members currently account for £95bn worth of analysing responses to its 14-week consultation on the the UK’s trade and 13% of global GDP. The UK has been possibility of the UK joining CPTPP. Feedback so far is mentioned as a future member of the agreement, as it believed to be positive, though many businesses are looks to forge its new trade policy after Brexit. unaware of what the opportunities on offer would be.

Secretary of State for International Trade, Dr Liam Fox, DIT has also engaged with the 11 CPTPP members and welcomed the agreement, saying: “Joining CPTPP it is believed that there is some support for future UK would cement our strong economic ties with old membership. In October Shinzo Abe, the Prime Minister friends, like Canada and Japan, as well as establishing of Japan, said the UK would be welcomed ‘with open new links with some of the world’s fastest growing arms’ while the Australian PM, Scott Morrison, said ‘the economies. British would be pushing at an open door’. n

“We know from our recent public consultation that UK businesses want to join CPTPP as it would help them to

Grants available for SMEs to attend international trade shows

Businesses can apply for grants stand costs and conference fees. shows helps businesses gain mar - of up to £2,500 to attend interna - 55 events comprise the list, ranging ket knowledge, forge relationships tional trade shows through the from the Aircraft Interiors Expo in and raise brand awareness among Department for International Hamburg, to Cannes Lions Festival, industry professionals. That is why Trade’s (DIT) Tradeshow Access to Summer Fancy Food in New I’m delighted to be announcing the Programme (TAP), which opened York, and Mobile World Congress next raft of TAP-supported events. for applications on 21st December Shanghai. 2018. "TAP grants accompany a wide Attending international confer - range of support businesses can TAP provides financial support for ences and events are an effective access through the Department for UK SMEs to participate in overseas way for those new to exporting, or International Trade. This includes exhibitions and conferences that exploring new territories, to meet dedicated teams of International cover a range of sectors, from potential customers face-to-face Trade Advisers, sector specialists, education to aerospace and cre - and start the exporting process. and a network of staff across the ative to maritime. Successful busi - world that are available to help nesses can use the grants to fund Minister for Investment Graham businesses embark on, or develop, direct exhibiting costs, including Stuart MP said: "Attending trade their exporting journey." n https://www.gov.uk/guidance/tradeshow-access-programme

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The Professional Journal from the IOE&IT

AEO

Surge in UK AEO Applications – UK exporters preparing for life after Brexit There has been a surge in AEO applications in the UK – a clear indication that the country’s exporting businesses are preparing for life after Brexit. A 26% rise in registrations up to January 2019 compared to February 2017 represents the highest percentage increase in registrations across Europe.

Country Registrations Registrations Variance How to Apply for AEO Feb 2017 Jan 2019 Businesses apply to HMRC for AEO UK 537 679 26% increase and will be subject to a thorough Germany 6031 6330 5% increase assessment of many aspects of Netherlands 1514 1556 3% increase their operations, including company France 1438 1664 16% increase finances, site security, shipping pro - cedures, compliance with customs AEO status effectively demonstrates “Attaining AEO status will be a useful requirements and fulfilment of the a company’s role within the inter - exercise for exporters, whatever our relevant legal and safety regulations. national supply chain as secure, future arrangement with the EU will indicating that its customs controls be. The application process allows The HMRC audit visit can be an and procedures are efficient and businesses to fully examine and en - arduous process, which is why the compliant. sure that its customs regime is up- Institute of Export & International to-scratch. Doing this will also put Trade have launched a new one- The UK has long lagged behind businesses in a strong position for day training course and 3-tiered counterpart European nations in other customs arrangements, in - consultancy service to support terms of its number of AEO cluding the Trusted Trader scheme.” businesses with the application applications. Up to January 2019, process and to prepare for the visit. 679 UK businesses have registered, Holly Tonge, Director of Special compared to 6330 in Germany, Projects at the Institute, also said: The one-day training course helps 1556 in the Netherlands, and 1664 “Many of the companies I’ve worked companies to understand the in France. with in recent times have applied requirements for attaining AEO and for AEO to safeguard their attrac - benefits this reaps. It guides them However, the 26% increase over tiveness in the supply chain post- through the application process the last two years signals a Brexit. I would suggest that more and highlights the pitfalls that gear-change, according to Director companies should look at AEO as a companies typically experience, General of the Institute of Export & way of ensuring they are operating explaining how to avoid delays and International Trade, Lesley Batchelor. as efficiently as possible, as post- mistakes. Brexit the need for customs com - “UK businesses are now realising petency will be greater than ever.” The consultancy package offers 3 that they will need to prove their tiers of support: a ‘Readiness Review’, competency in customs AEO – a solution for supply chain a ‘Preparation Project’ and support procedures when Brexit comes competitiveness post-Brexit? for the application and submission around – whatever form it may itself. take. This surge in applications is Registration is open to all businesses encouraging, but there’s much in the EU that are involved in the One of our experts will go into the more to be done before we catch international trade of goods with business and help take them up with our European counterparts, non-EU countries, including logistics through every stage of acquiring who will soon be our competitors. operators, carriers, freight forwarders, and maintaining AEO status. n customs agents, importers, exporters and manufacturers. To find out more call 01733 404 400

www.export.org.uk : @ioexport : 17 World Trade Matters

Making the Case for International Trade

Barry Gardiner MP Shadow Secretary of State for International Trade The global trading system and the political status quo are at breaking point. American protectionism, the rise of China, the inability of the WTO to appoint judges to the Appellate Court to resolve disputes, have all contributed to a rising tide of resentment against globalisation. In the UK this has manifested itself in our own unique contribution to the global malaise: Brexit.

The catechism has long been that move many times across borders currently do not allow foreign im - opening up markets and increasing during assembly before ending up ports produced at lower standards the volumes of global trade is the on store shelves. Our withdrawal to undercut our domestic producers. key to unlocking economic growth. from the EU is complicated by the It will enable greater connectivity need to continue to participate in We should be pleased that our and alleviate poverty through those supply chains without falling farmers do not want to lower their knowledge sharing and innovation. foul of the EU’s rules-of-origin standards. But it would not just be regime and the cumulation rules environmentally wrong - it would But, in fact, little political thought relevant to those third country trade fundamentally undermine one of has been given to how the benefits agreements the EU has in place. our existing key strengths. People of globalisation have been distributed A no deal would also see the impo - around the world in China or India, as greater competition has resulted sition of tariffs on our exports and do not buy British products be - in the relocation of jobs and the on imports, pushing up costs signif - cause they are the cheapest – they closure of businesses. Nor has icantly. buy British products because they adequate consideration been given trust them and know they are of to the wider impacts on the envi - This is why Labour have called for a high quality. Lowering our standards ronment. Resource scarcity is driving new Customs Union with the EU – will not boost business; and allowing regional conflicts and relentless one that allows us to continue to a flood of imports produced to extraction of minerals, whilst trade within the customs area with - lesser standards will only undercut increasing trade flows by air and out the imposition of tariffs and our own producers. sea contribute to global carbon would ease the complications emissions. presented by the UK’s withdrawal This has been particularly keenly felt from the various free trade agree - in our steel and ceramics sectors, As the United Kingdom assumes ments that we currently have with constantly competing with goods competence for trade policy for third countries through the EU. But dumped below cost-price on British the first time in over forty years, this new Customs Union must be markets with our government not we have the unique opportunity to one where the UK has a say in any only turning a blind eye but actively restore faith in the global trading future free trade agreement (FTA) seeking to erode our trade defence system by addressing these and cannot be forced to accept a measures (through the adoption of challenges and ensuring that the new FTA that is inimical to our interests. the lesser duty rule) at a time when benefits of trade are more equally every other developed country is shared whilst mitigating the dam - In January I attended the Oxford seeking to strengthen theirs. age inflicted on our environment. Farming Conference. That industry is desperately concerned that some Government wants to secure quick Our most immediate issue is the in government see Brexit as an early trade agreements with the negotiation of a new relationship opportunity to tear up “red tape” United States, Australia and New with our largest and closest trading and lower regulations which they Zealand, as well as new “roll over” partner, the European Union. see as barriers to trade. But the “red agreements with those third coun - Indeed, the EU accounted for 44% tape” government wants rid of is tries we currently have agreements of all goods exports last year. British the food standards, animal welfare with through the EU. Many of these businesses are embedded in com - regulations, workers’ rights and countries have already voiced plex global value chains and goods environmental protections that objections to the UK and EU’s u

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Making the Case for International Trade

efforts to lodge revised schedules 500 million pounds. By 2030, this trade as a competition to beat the at the WTO and it is likely that con - could increase fivefold. The UK’s other side down. We know that is cessions in the form of increased low carbon and renewable energy not just morally wrong. It makes preferential access to our markets exports alone were worth almost no economic sense. We don’t want will be sought in order to smooth 4 billion pounds in 2016. That’s the cheap raw materials and goods the path for the UK. equivalent of half the UK’s market from companies that have paid share of defence exports. starvation wages to workers. And Transitioning to a low-tax, low-reg - we don’t want our agricultural ulatory, low-wage economy is not The trade regimes of the past were by-products being dumped on what’s best for the United Kingdom. beholden to the idea that corporate other markets, forcing their own It will compound the difficulties that interests should trump those of farmers out of business. austerity has already imposed on public policy and public interest. the poorest workers in our society. Through provisions such as On the contrary, we want to see It is a race to the bottom at a time Investor-State Dispute Settlements, trade agreements being used to when what is required is a vision to trade policy has had the capacity to unlock economic growth and take the UK to the top. erode our sovereignty and inhibit prosperity, raising the wage levels of efforts to improve our environment. workers at home and in our partner We need to broaden our export Labour categorically rejects such countries so that they can afford to base and ensure that trade growth ISDS courts. buy more of our excellent goods benefits all of the constituent and services – to create a virtuous nations and regions of the United Some of the more egregious cycle of prosperity, innovation and Kingdom whilst continuing to at - aspects of trade policy have been development that will set the tract investment into those regions. allowed to go unchecked as foundation on which we can build negotiations are conducted entirely a truly sustainable future. n That is why Labour have called for a behind closed doors and disputes network of regional trade commis - arbitrated in secret courts. Few of sioners representing all parts of our the affected stakeholders are given country at trade shows overseas input into those negotiations. and feeding into trade negotiations Labour is absolutely committed to to ensure a whole-of-country engagement with business groups, approach. As part of our approach, trade unions and civil society as a Labour government would a further element in the proper develop UK Export Finance’s offer democratic scrutiny of international to attract a broader mix of industry treaties. We want to see ongoing sectors and projects. We have a consultation at all stages of the stubborn balance of trade deficit – development of a trade agreement despite rising exports our imports and we want to ensure proper are rising faster. Labour would transparency and parliamentary support and grow our export base. scrutiny of all future trade and We are leaders in biotech, arts and investment deals. low carbon technologies. Such sectors need our support. At present Labour’s approach is an internation - 99.4% of UKEF support for the alist one: not of empire but of energy sector underwrites fossil fuel solidarity. Recently, I launched a and extractive projects in developing new international initiative — Just countries. That is British taxpayer Trading — at the WTO Public Forum money being used in direct conflict in Geneva, alongside the Indian and to our own commitments to Spanish trade Ministers and the reduce carbon emissions and end Director of the International Labour subsidies for fossil fuels. Organisation.

Labour is committed to negotiating There we set out a future trade an international Environmental agenda that does not seek to Goods Agreement. Last year our rapaciously exploit the weaker offshore wind exports were worth partner country. We do not see

www.export.org.uk : @ioexport : 19 World Trade Matters

Making the Case for International Trade

Multilateralism versus protectionism in global trade – the experience of Switzerland as an open economy

Switzerland’s economic growth and wealth are based on international trade. Trade in goods and services represents more than 90% of our country’s GDP (the world average is around 55%). Exposed to international competition, Swiss companies are forced to be competitive and innovative, which in turn has a positive impact on wages. The economy builds on broad international market access, a strong, transparent and inclusive rules-based multilateral trading system and an economic framework that allows companies to adapt to a changing environment. However, these key ingredients of success are challenged by increased protectionism and growing doubt as to the benefits of liberalised global trade.

ments (FTA) with third countries. discrimination between domestic Access to the European Single and foreign producers. Without the Market is of utmost importance for WTO’s dispute settlement mecha - the Swiss economy. Trade in goods nism, the ‘law of the strongest’ between Switzerland and the EU would prevail and countries could amounts to over one billion euro quickly resort to protectionist per working day. Switzerland is the measures in times of crisis. EU’s third biggest trading partner, only surpassed by the US and The evolution of this set of rules, China. Switzerland furthermore however, has become increasingly Alexandre Fasel shares the fundamental values of complex. Furthermore, the new US Ambassador of Switzerland the EU and contributes to stability trade policy is putting the WTO to the United Kingdom and development in Europe and system under strain. It is not without in the European neighbourhood. irony that the very country that has The very close Swiss-EU trading been most instrumental in creating relationship is based on a network this system is now the one that of around 120 bilateral agreements. challenges its core features and Switzerland’s foreign economic principles. Switzerland for its part strategy The second pillar of Switzerland’s refuses to apply countermeasures, Switzerland’s foreign economic foreign economic policy is the as this would only damage its strategy rests on three pillars: multilateral trading system. WTO economy and consumers due to (i) bilateral agreements with the rules are the basis of all Swiss trade higher import prices. Furthermore, European Union (EU); (ii) the multi - relations and those of 163 other we believe that such measures can lateral trading system - in particular countries worldwide. They create easily contribute to an escalation the World Trade Organization a framework for predictable and into a damaging trade war. u (WTO); and (iii) free trade agree - secure market access and reduce

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Making the Case for International Trade

Bilateral, regional or supra-regional Joint efforts in confronting trade alleviate the negative effects of FTAs - the third pillar of our foreign scepticism and protectionism trade liberalisation. Businesses economic policy - are increasingly World trade growth has created also have an important role in seen as a way to complement the hundreds of millions of jobs world - communicating the importance multilateral trade liberalisation wide. Nevertheless, fears about the of international trade to their efforts, which are currently facing effects of globalisation and free employees. difficulties. For Switzerland, FTAs trade have become widespread provide its business operators with in recent years. The main driver of Conclusion improved market access at condi - this development is technological Switzerland is a successful global tions equivalent to those enjoyed progress and its effects on the economic player thanks to its by their most important competi - labour market: whilst creating openness to the world. But open tors in the EU, US and Japan. Swiss opportunities for the highly skilled, trade also needs to be comple - consumers and producers also lower skilled workers can find mented by domestic policy benefit thanks to higher economic themselves under pressure. measures which help to smooth growth and a greater variety of When the negative impacts are the adaptation costs of structural higher-quality goods and services concentrated in certain regions change. In the international arena, it at lower prices. and sectors, it creates a breeding is important to continue to stand up ground for populism, nationalism for the liberal trade order, to defend Over the past 25 years, Switzerland and protectionist tendencies. and preserve the WTO system as a developed a broad network of FTAs, bulwark against protectionism. currently comprising 30 FTAs in To mitigate such risks, Switzerland force with 40 partners outside the focuses on a labour-market The benefits of open trade and what EU or the European Free Trade oriented education system, giving we owe to it need to be actively Association (EFTA). In terms of everyone the chance to benefit communicated to the wider public. value, these FTAs accounted for from the fruits of open trade, whilst If we can achieve all this, Switzer - 23% of Switzerland's total exports providing an efficient social safety land - as well as other open in 2017. Including trade with the net. The Swiss government further - economies - will continue to EU and EFTA, nearly 80% of Swiss more engages with civil society to compete successfully and offer all exports and 90% of imports take inform on the benefits of trade and its residents a high level of place under FTAs. on the efforts it undertakes to prosperity. n

www.export.org.uk : @ioexport : 21 World Trade Matters

Making the Case for International Trade

#MakeTradeWork: The case for facilitating trade and its transport

generate income for the govern - and publishing applicable trade ment. These are just some of the procedures, a Trade Information 37 concrete measures grouped into Portal effectively helps countries the 12 Articles of the TFA. They are identify the potential for the further all useful and help to make trade simplification of procedures. Thanks more efficient. to these new insights, NTFCs can then develop programmes and re - However, many of these measures forms that subsequently ensure the involve an initial investment or further simplification of procedures. reforms that require human and Jan Hoffman financial resources to start with, Technological progress will never Chief, Trade Logistics which developing countries may be as slow as today Branch Division on not have. The good news is that the Technology and Logistics, TFA also includes a novel mecha - My favourite provision of the TFA UNCTAD nism – the so called “Special and is Article 10.1., as it provides for a Differential Treatment” – that helps dynamic dimension of the Agree - developing countries plan and ment. According to this article, Confronted with growing populism acquire the necessary capacity prior countries need to: minimise “the and a surge in protectionist measures to being fully committed to comply incidence and complexity of recorded by the WTO, policy makers with all 12 Articles. Concretely, the import, export, and transit formali - and enterprises are struggling to mechanism puts the developing ties”; continuously “review” require - avoid a backlash in international countries in the position – and ments; keep “reducing the time and trade. At UNCTAD’s Trade Logistics obligation – to analyse and notify cost of compliance for traders and Branch, we support these endeav - their own implementation capacity. operators”; and always choose “the ours by helping to make trade work At UNCTAD, we are working closely least trade restrictive measure”. As better. Through trade facilitation with the developing countries to such, even if a country is compliant reforms, the promotion of digitali - enable them to do so. Our main with all TFA provisions today, sation, and by ensuring the long- counterparts in this endeavour are countries will need to continue term sustainability of international the National Trade Facilitation monitoring if existing procedures transport, we aim to ensure that the Committees (NTFCs) that each are still appropriate in view of international movement of goods country must set up under the TFA. technological or regulatory is not confronted with unnecessary UNCTAD’s Empowerment Pro - developments. ­ obstacles and costs. gramme for NTFCs includes train - ing and knowledge development As trade becomes increasingly A multilateral agreement to for the members of the NTFC, digitalised, and new technologies facilitate international trade combined with advisory services which do not yet exist will be and the development of a Roadmap developed, it will be important that Under the Trade Facilitation of TFA implementation. governments continuously revise Agreement (TFA) of the World Trade and review the applicable rules and Organization (WTO), developing By the same token, UNCTAD also regulations. countries commit to implement a supports developing countries in number of very practical measures setting up Trade Information Digitalisation comes in stages. First, that make trade easier and more Portals. Under the TFA, members we optimize existing procedures, transparent. Countries are obliged of the WTO are obliged to make making use of cargo tracking, the to publish duties and procedures on relevant information on tariffs and Internet of Things, blockchain et al. the web, traders can transmit their trade procedures available on-line. Second, new businesses are declarations prior to the arrival of UNCTAD’s Trade Information developed which could not exist the goods, payments can be made Portals not only help countries without the new technologies; electronically, and fees and charges become compliant with this obliga - new platforms come into being and must not become hidden taxes to tion, but in the process of analysing we see more “uberisation”. u

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Making the Case for International Trade

Finally, there is transformation and Ports need to minimise social and to the ship-owner, who in turn science fiction; still in our lifetime environmental externalities. Many passes this on to the shipper, who Artificial Intelligence will overtake port cities are among the most will charge the consumer. This is a human capabilities to manage polluted places to live, as ships good established mechanism that international trade and its logistics. burn heavy oil, and delivering trucks could be expanded to also inter - produce noise and cause traffic nalise the external costs of CO2 But let us take one step at a time. congestions. In addition, ports emissions. At UNCTAD, we support developing need to be resilient in the face of countries through eTrade readiness disruptions and damages caused Being the most globalised of all assessments, the development and by natural disasters and climate businesses, maritime transport upgrade of technological solutions change impacts. should consider adopting a global in Customs automation and Single regime that helps further internalise Windows, and by providing a Forum International transport, including its environmental externalities – to for our members to analyse and shipping, needs to play a larger role ensure prosperity for all, including discuss the challenges that come in addressing global warming and future generations. with digitalisation. We encourage contribute to mitigating the carbon the development of global standards emissions that are causing climate It is all about efficiency that allow for interoperability among change. Shipping emits less carbon new systems. The challenge for dioxide (CO2) per ton-mile than Investing in trade facilitation policy makers is to encourage other modes of transport, but then reforms, making intelligent use private sector investments in new due to its sheer volume it also of the latest technologies, and technologies and solutions, while produces many ton-miles. Would it ensuring that externalities are ensuring that no new monopolies be possible that the industry could internalised are all several sides emerge that might exclude smaller be charged by its main regulatory of the same coin. Trade efficiency players. body not per ship tonnage (as is is necessary to promote an open currently the case), but per tonne international trading system. It And it has to be sustainable of CO2 emission? Currently, the requires a continuous effort by International Maritime Organization policy makers to continuously While we aim at ensuring continued is funded proportional to the review current procedures, apply growth in international trade, there tonnage registered under the the most appropriate technological is a catch. The transport of this trade members’ flags. Like this, Panama, solutions, and support an efficient encompasses increasing externalities, Marshall Islands and Liberia pay for allocation of scarce resources. n such as pollution, green-house-gas the largest share of the IMO budget emissions, and congestion. – and in the end, this is passed on

www.export.org.uk : @ioexport : 23 World Trade Matters

Making the Case for International Trade

More than ever, international trade matters to the UK The UK should take the lead in global trade policy, writes Chris Southworth, Secretary General, ICC United Kingdom.

ingly unilateral basis. Claiming to context. The iPhone maker serve their own national interests, announced anticipated revenue it’s an approach that undermines of approximately $84 billion for the rules-based international the three months to 29 December, trading system we have spent years following an earlier forecast of at fighting for and has underpinned least $89 billion – a prediction that the unprecedented levels of growth had already disappointed investors. in recent decades. The international trade community The central trade dispute remains needs a champion – someone to Chris Southworth that between the US and China, stand up as a representative for free Secretary General, ICC which is putting pressure on both trade in the digital age. The UK United Kingdom their own trading relationships and displays all the right attributes for those elsewhere. Sanctions the role, despite being currently- generated by these trade tensions handicapped by uncertainty are starting to translate into reality, surrounding its own future trading with financial institutions already system, having lost over $150 billion Despite the pick-up in global eco - taking measures such as tightening in investment since the referendum. nomic growth, the world is facing lending. Hyundai (South Korea) After a centuries-long history as a serious challenges in terms of trade announced a plummet in third- global trading nation, the UK will, in and investment, particularly the UK. quarter earnings due to weak sales March, withdraw from its most im - And first and foremost among these in China and the US, its two largest portant trading relationship with the concerns remains the escalating overseas markets. And Apple’s European Union, which accounted trade tensions that are resulting in China-related woes can also be for 55.5% and 45.5% of UK imports governments acting on an increas - viewed – at least in part – in this and exports respectively in 2017. u

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Making the Case for International Trade

The UK can make this an opportunity innovation, such as blockchain Organization (WTO). G20 countries if it focuses on the bigger picture, and artificial intelligence, hold the account for 85% of world trade, and beyond just Brexit, and rekindle its potential to enhance trade by its main policy objectives are to roots as the founder of a rules- improving security, transparency champion inclusive free trade and based trading system – one adapted and efficiency, while also facilitating the rule of law, as well as champion for the 21st century and the evolving more seamless, frictionless trade – sustainable economic growth and digital world. The west needs to set all of which will encourage lenders the delivery of paperless trade and out a vision for digital trade like to support trade and help to close the acceleration of the implemen - China has set out a vision for its the gap between demand and tation of the WTO’s Trade Facilita - Belt and Road initiative, and the UK supply for trade finance. For this tion Agreement – all policies that can be the champion. reason, it is vital that the interna - UK businesses can support. tional trade community works Despite the challenges, opportunities together to promote digital change, With respect to the Trade Facilitation across the emerging markets remain with the UK – in this case via the Agreement, the WTO’s objective is present for businesses globally, but unique role of the City of London – to deliver streamlined, simplified particularly for the UK right now – at the forefront. and standardised customs proce - not least in providing a stepping dures to cut global trading costs. stone to building stronger and To positively shape the international Full implementation of the Agree - more diverse relationships with trading system, the UK needs to ment is expected to reduce trade countries outside of the EU, some - play an active role, putting solutions costs by an average of 14.3% and, thing UK businesses can do with or forward on reform, challenging by 2030, could add 2.7% points per without Brexit. protectionism and promoting the year to world trade growth and benefits of good governance, more than 0.5% to world GDP Certainly, technological innovation competitive markets, open borders growth. This initiative alone can and collaboration will be funda - and multilateral rules. In order to transform global trade and send a mental in resolving the challenges impact both strategic and technical message about the power of trade faced by emerging markets with decisions, it’s important for the UK in supporting jobs and growth respect to trade finance. Recent to become a leader in organisations globally: something we can surely breakthroughs in trade finance such as the G20 and World Trade all get behind? n

www.export.org.uk : @ioexport : 25 World Trade Matters

Making the Case for International Trade

Becoming a truly independent trading nation

The case for international trade – particularly free and open trade – has long been made.

It creates and supports local jobs, broadens consumer choice and encourages innovation. By exposing local products to the global Stephen Phipson marketplace it elevates our business opportunities CEO, EEF from solely domestic to international, driving economic growth.

The UK’s manufacturing sector is Brexit has thrown a stark spotlight fines of the EU. To thrive we must a world leader – ranked 9th interna- on the UK’s ability to pursue our rapidly understand and adapt to the tionally by output; employing 2.8 aspiration of being a truly inde- mechanics of international trade. million people and contributing pendent trading nation. Regardless 10% of UK output. That strength of the Brexit outcome, to trade For many manufacturers who have has and continues to be firmly successfully with the rest of the only ever traded within the EU, underpinned by trading relation- world, UK manufacturers need the building blocks of international ships. Exporting is widespread in to build a stronger foundation in trade – such as tariffs, import and manufacturing whether directly or order to master the international export customs procedures and indirectly via sophisticated global trading environment. rules of origin – are relatively new supply chains. concepts. The rules of trading Brexit is a case in point. The im- inside other international trading So why is there a renewed need pending prospect of having to agreements and the broader for us to re-connect to the benefits operate outside the EU Single multilateral World Trade Organiza- of trade? Market and Customs Union has tion framework are equally foreign. been a wake-up call to the sector. Not only is a wave of global protec- Our manufacturers are having to Brexit has forced the UK to get tionism sweeping the world – quickly get to grips with how well its house in order with respect to as demonstrated by the recent they understand their supply chains, trade – this short term pain could imposition of tariffs by the US – product journeys and the interna- be what drives our future success. but closer to home the pathway to tional trading rules beyond the con- u

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Making the Case for International Trade

In developing a full understanding be achieved both outside and On the campaign side EEF has of their supply chains, many com- within the EU, as Germany has been involved at the highest levels panies have had unexpected supply consistently demonstrated. of Government on a weekly basis chain efficiencies emerge. putting forward a case to protect the EEF has been working closely with interests of the UK manufacturing At EEF, we have been supporting the manufacturing sector and with sector. At the heart of our campaign our members to get prepared – and Government to do exactly that. We has been a push to call for a solid to get prepared early. Whether for have mobilised our nine regional industry-government working Brexit or beyond, understanding the centres to run Brexit-specific trade mechanism to support future UK following trade issues is crucial for roadshows, establish industry-Gov- trade policy. For Government to UK manufacturers: ernment engagement opportunities create a trading framework that and engaged in an awareness- allows UK industry to thrive, it 1. Tariff exposure and cost raising and educational campaign needs to ensure industry interests 2. Customs administration for on these issues. Our website is are fully understood and accurately imports/ exports packed with relevant resources, represented on the global stage. 3. The complex rules for products including full analysis of each of the to be classified as having UK Government’s technical notices in Trade exists because of industry; it’s (or EU) origin the event of a no deal. driven by industry and benefits the 4. Logistics and transport delays entire economy. For the UK – and for time-sensitive products We have also created a bespoke the manufacturing sector especially 5. The benefits of being an Brexit toolkit to help businesses – international trade continues to Authorised Economic Operator, prepare for life after Brexit. The be the engine of growth. We are to fast-track the movement of toolkit is a self-audit tool to help now working hard to equip manu- goods businesses make an easy assess- facturers with a strong understand- 6. Training needs within the ment of their trade exposure on a ing of importing and exporting company on customs and number of fronts – including tariff, efficiently. trading fundamentals customs and migration issues. It is 7. Accessibility of Free Trade (and a practical tool which gives each With a strong grounding in the other) international Agreements company a bespoke report on their mechanics of trade – regardless of now and in the future priority actions. Alongside this the trading framework the UK finds practical, web-based tool we are itself in – we can thrive in any inter- Trading beyond the EU will most working closely with the Institute national trading environment. And certainly require a thorough under- of Export & International Trade love it or hate it, Brexit has given us standing of these issues and a delivering a range of trade and the opportunity to take a good, commitment to take quick action to customs training workshops direct hard look at our trading foundation address areas found to be wanting. It to importers and exporters within and propel us firmly into a new is also worth noting that improving UK manufacturing. world of international trading. nthe trade with the rest of the world can

www.export.org.uk : @ioexport : 27 World Trade Matters

Preparing for Brexit

Good news! Government grants available PREPARING FOR NO-DEAL BREXIT – GOVERNMENT FUNDS TRAINING COURSES IN CUSTOMS PROCEDURES

Businesses planning for Brexit can The funding from government is Stephen Phipson CBE, CEO of EEF, apply for government funding available until 5 April 2019, unless the manufacturers’ organisation said: towards training in customs the funding is used in its entirety “The importance to our economy procedures provided by the Insti - before that date. of free and open international trade tute of Export & International Trade cannot be stressed enough. It (IOE&IT) in partnership with EEF. Whatever happens with Brexit, creates local jobs, encourages the UK needs more Customs innovation and injects more choice In preparation for Brexit, the Practitioners into the consumer market. government has made available £2 million worth of new grant Even in a scenario whereby relatively “At this critical time for business funding towards training that frictionless trade between the UK when we still have no clarity of helps UK businesses to complete and the EU ensues in the long-term, what lies ahead in the post-Brexit customs declarations correctly. businesses looking to send goods environment, it is vital that businesses to markets outside the EU, including ensure they are in a position to This is a vital step in the prepara - the USA and China, need to be able make the most of whatever export tions for a potential ‘no-deal Brexit’. to complete customs declarations opportunities are available to them. The Institute for Government have in order to do so. Having the knowledge to better tap reported that there are 180,000 UK In an increasingly ‘Global Britain’ into international markets is the first businesses trading goods between the IOE&IT recognises the need for and most important step on that the UK and the EU 1, who will be a Customs Professional Pathway growth journey. The courses we are impacted as they would be required and has launched a series of new running with IOE&IT lay out what to complete full customs declara - training courses to support a steps businesses can be taking now tions – something they have never ‘Customs Practitioner Award’, which to make sure they are best able to had to do before. can be funded by the grant system. maximise new opportunities.”

To support these businesses the This produces a seamless progres - Terry Scuoler CBE, Chairman of the IOE&IT is providing a wide range of sion to the world-renowned Diploma Institute of Export & International training courses that will help them in World Customs Compliance and Trade, said: “I am delighted to hear with the procedures involved in Regulation – a ground-breaking of the launch of the Institute of international trade, enabling them Level 5 qualification giving individuals Export’s new range of Customs to export and import successfully and businesses a comprehensive training courses and of their eligibility and compliantly, whatever March understanding of the laws and for Government funding. u 29th brings. processes that facilitate global trade.

28 : Membership : Training : Qualifications : Advice With Brexit and cross border trade More information about the funding Upcoming Customs Procedures uncertainty increasing I encourage and Documentation Courses companies of all sizes to take The funding is only available for advantage of them.” companies who: 18/02/2019 Belfast 19/02/2019 Manchester 19/02/2019 Newcastle Training courses we provide • complete customs declarations 20/02/2019 Warrington for themselves or someone else 21/02/2019 Bridgend IOE&IT has for over 80 years been (or intend to in the future) 25/02/2019 Gateshead the professional membership body 25/02/2019 Aston representing and supporting the • are established or have a branch 25/02/2019 Edinburgh interests of everyone involved in in the UK 26/02/2019 Birmingham importing, exporting and interna - 26/02/2019 Warrington 26/02/2019 Glasgow tional trade in the UK. This includes customs brokers, 26/02/2019 Leamington Spa freight forwarders and fast parcel 27/02/2019 London Through qualifications and training operators. 28/02/2019 Bristol the IOE&IT has driven the export 28/02/2019 Reading skills agenda in the UK and is the For businesses with fewer than 50 March country’s leading authority for best employees and an annual turnover 04/03/2019 Edinburgh practice and competence in trade. under €10 million, the grant covers 05/03/2019 Aston up to 70% of the training costs for a 05/03/2019 Bristol 07/03/2019 Manchester Training courses that funding can business’ employees, up to a limit 07/03/2019 Glasgow be applied for include: of £1,050 per employee on a 07/03/2019 London course. 08/03/2019 Warrington • Customs Procedures and 11/03/2019 Gateshead Documentation* For businesses with fewer than 250 11/03/2019 Belfast employees and an annual turnover 12/03/2019 Bristol • Customs Classification and below €50 million this figure is 12/03/2019 Birmingham Tariff Codes* 60%; for other businesses the 12/03/2019 Warrington 13/03/2019 Aston funding is up to 50%. 13/03/2019 Leamington Spa • Understanding Rules of Origin, 14/03/2019 Gateshead Free Trade Agreement and The funding cannot be used towards 14/03/2019 Reading Export Preference* the existing costs of training already 15/03/2019 Bridgend being undertaken, or for unrelated 18/03/2019 Belfast • Introduction to Exporting training courses. The training does 19/03/2019 London not need to lead to a formal qualifi - 19/03/2019 Bristol • Introduction to Importing cation. 19/03/2019 Warrington 19/03/2019 Glasgow 19/03/2019 Aston • Advanced Exporting A grant towards implementing IT 20/03/2019 Gateshead improvements that aid a business’ 20/03/2019 Edinburgh • Advanced Importing customs processes is also available. 22/03/2019 Warrington 25/03/2019 Warrington • Post Brexit Planning Workshop To apply for this IT grant companies 26/03/2019 Leamington Spa must have 250 or fewer employees, 26/03/2019 Belfast • Post Brexit Documentation an annual turnover of £50 million 26/03/2019 London 27/03/2019 Aston and Compliance* or less, and be currently completing 27/03/2019 Warrington customs declarations for importers 28/03/2019 Reading *these courses count toward the Customs and exporters. 29/03/2019 Gateshead Practitioner Award from the Institute of Export & International Trade Applications will close on 5 April Sign up to any of the above dates at: 2019, or earlier once all the funding https://www.export.org.uk/page/ CustomsDocumentation 1 https://www.instituteforgovernment.org.uk is allocated. n /sites/default/files/publications/IfG_Brexit_ customs_WEB.pdf

www.export.org.uk : @ioexport : 29 Market Profile: Doing Business in Argentina

rgentina iness in A Doing Bus

Argentina overview

ires Buenos A Madero, ) at Puerto n's Bridge er (Wome de la Muj Puente Stretching 3,694 km (2,295 mi) from north to south – a

ide.co.uk usinessGu distance equivalent to that between London and Baghdad B p oing Mobile Ap tina. D d the free Argen d downloa www. ebsite an Visit the W – and 1,423 km (884 mi) from east to west in the southern

ED BY: SUPPORT part of the continent of South America, Argentina is the eighth largest country in the world, and the second largest in Latin America.

Download the Argentina is rich in natural resources, Buenos Aires, the country’s multi - free Mobile App and has seven diverse regions, cultural, financial, industrial and including the Pampas – a very large commercial hub and the federal and fertile alluvial plain in the centre capital city, is located on the Rio and east of the country – and de la Plata on the South American Patagonia in the south, consisting continent’s southeast coast. It is mostly of arid steppes and cold an “Alpha City” with a metropolitan grasslands, with some forests in the population of around 17 million, Andes foothills. a top tourist destination (the most- visited city in South America) and Argentina has a highly-literate constitutes the 13th largest economy population of over 40 million, an amongst the world’s cities. export-orientated agricultural sec - tor, and a diversified industrial base. It is highly urbanised, with 91% of the population living in urban areas (defined as those with 2,000 inhabitants or more).

30 : Membership : Training : Qualifications : Advice Quick facts

Location: Southern South America, bordering the South Atlantic Ocean, between Chile and Uruguay

Population: 44.1 million

Urban population: 91.97%

Capital city: Buenos Aires

GDP per capita (Oct 2018): US $14,462.9

Languages: Spanish (official), Italian, English, German, French, indigenous (Mapudungun, Quechua)

Religions: nominally Roman Catholic 92% (less than 20% practicing), Protestant 2%, Jewish 2%, other 4%

Government type: presidential republic

Legal system: civil law system based on West European legal systems; note – in mid-2015, Argentina adopted a new civil code, replacing the old one in force since 1871

Currency: Argentine Peso

Climate: mostly temperate; arid in southeast; subantarctic in southwest

Natural resources: fertile plains of the pampas, lead, zinc, tin, copper, iron ore, manganese, petroleum, uranium, arable land

Natural hazards: San Miguel de Tucuman and Mendoza areas in the Andes subject to earthquakes; pamperos are violent windstorms that can strike the pampas and northeast; heavy flooding in some areas; volcanism: volcanic activity in the Andes Mountains along the Chilean border; Copahue (2,997 m) last erupted in 2000; other historically active volcanoes include Llullaillaco, Maipo, Planchon-Peteroa, San Jose, Tromen, Tupungatito, and Viedma

Time difference: UTC-3

Internet country code: .ar

National holidays: Revolution Day (May Revolution Day), 25 May (1810)

National symbols: Sun of May (a sun-with-face symbol); national colours: sky blue, white

[Source: UK DIT, FCO Economics Unit, CIA World Factbook (January 2019)] Market Profile: Doing Business in Argentina

Mark Kent, British Ambassador to Argentina

Through renewed access to the international financial markets after an absence of over a decade, major new capital investment is taking place in transport infrastructure, utilities, public services, agribusiness, mining, energy and the upgrading of industrial and manufacturing capability. There is an increasing demand for innovative goods and services, including financial and professional services, consumer and retail products.

A strong UK-Argentina commercial relationship is very much at the heart of the renewal of our wider bilateral relationship with Argentina, as outlined in the UK- Argentina Joint Communiqué of September 2016. Co-operation is expanding across all areas, including on science and innovation, cultural exchanges, As the Argentine Government further consolidates its international policy and security and on South Atlantic economic reform programme and re-engages with issues. Change is taking place and new opportunities the international community, it is time for UK com - are arising. Now is the time for you to explore the panies to reclaim their position as one of Argentina’s Argentine market. We look forward to hearing from pre-eminent business partners. you. The UK has world-leading technologies, goods and Mark Kent services to help deliver and enhance Argentina’s new British Ambassador to Argentina capital investment programme and drive for improved https://www.gov.uk/world/organisations/british-embassy-buenos- efficiency and competitiveness. aires

The emerging opportunities for UK companies are significant. Argentina is the world’s 21st largest economy. It has the second largest manufacturing base in South America, a highly skilled workforce and vast natural resources. President Macri’s reform agenda has returned the economy to growth and lifted barriers to international trade and investment.

32 : Membership : Training : Qualifications : Advice Advice from our Technical Helpline

The Institute of Export & International Trade's 'Export Helpline' provides help for any international trade query, including documentation, export controls, customs & VAT procedures, payment terms, Incoterms, and much more. Members of the IOE&IT can access the helpline for free.

While exporting to Argentina the following general requirements apply

Cargo Manifest/Manifiesto de Carga The document is to be submitted in the For certain goods, such as specific de Importación original or electronically. The invoice textiles and textile articles, footwear, This document is to be submitted by must be signed as a sworn declaration furniture, toys, etc., the submission of a the customs transport agent electroni - by the importer and the customs agent, Certificate of Non-Preferential Origin is cally via the module for advance if submitted electronically. Further compulsory for statistical surveillance information on the Cargo Manifest of copies may be required for the pur - or due to trade defence measures. the computerised system Malvina (SIM). poses of other authorities and/or the importer, as applicable. Proof of Preferential Origin For sea freight: to be submitted five days The Proof of Preferential Origin is only prior to the arrival. If duration of transport If a Certificate of Non-Preferential Origin required if preferential treatment under is less than five days, the information has is required, the commercial invoice a free trade agreement or arrangement to be submitted prior to the departure of should contain the number of the is claimed. It is to be submitted by the the vessel. Certificate of Non-Preferential Origin. exporter.

For air freight: To be submitted four In trade practice, the Commercial In - A Proof of Preferential Origin may hours prior to the arrival. For durations voice often contains a declaration stating replace a Certificate of Non-Preferential of transportation less than four hours, that the information provided is true, Origin, subject to acceptance by the the information must be submitted which should be signed by the exporter. customs authorities in the country of upon the departure of aircraft. import. Pro Forma Invoice/Factura Proforma A fee of 90 ARS is charged for each The Pro Forma Invoice usually contains Air Waybill/Guía Aérea transport document mentioned in the the same information as the final Com - It is to be prepared by the carrier or his Cargo Manifest (in case of air freight). mercial Invoice, but may be more con - agent. Usually issued in English, how - cise. Additional details made known only ever a translation into Spanish is recom - Customs Import Declaration/ in the course of the shipment or after mended. The Air Waybill consists of a Declaración Única de Aduanas accomplishing certain application pro - set of forms, three of which are originals The declaration is to be submitted elec - cedures will be included in the Commer - and the rest are copies. tronically by the importer or customs cial Invoice. No specific form is required. broker in Spanish via Malvina (SIM) and Bill of Lading/Conocimiento de a print-out is to be submitted to the Packing List/Lista de Empaque Embarque customs authority. The Packing List is to be prepared by It is to be prepared by the carrier or his the exporter in Spanish, English, French, agent as a clean or unclean Bill of Lading. There is a processing fee of 30USD German or Italian according to standard Usually issued in English, however a for each customs procedure and/or business practice, including details of translation into Spanish is recommended. operation processed via Malvina. the content of the packages, description of the goods, marks and numbers. Three full sets of the Bill of Lading are Declaration of Customs Value/ However, if the document is not usually issued, each containing an Declaración del Valor en Aduana prepared in Spanish, a translation into original and several copies. The declaration is to be submitted this language may also be required. electronically by the importer or customs Note: Air Waybill/ Bill of Lading broker in Spanish via Malvina (SIM). To be submitted in the original. Multimodal or Combined Transport Document may replace these documents It is also to be submitted electronically Certificate of Non-Preferential if two or more modes of movement of through the AFIP-website, if requested Origin/Certificado de Origen goods are combined in one transport by the system. In addition, a paper The certificate is to be submitted in orig - operation. version is to be printed and handed in. inal by the exporter. It is to be issued in Spanish or English. A translation will be Declaration for Dangerous Goods Commercial Invoice/Factura Comercial required if issued in another language. Shipped via Sea Freight/ via Air Freight The invoice is to be prepared in Spanish, must be handed by the shipper to the Portuguese or English. A legalised The document must be legalised by the carrier or his agent prior to the shipment official translation may be required, if Argentine Consulate and is valid for six of the goods if dangerous goods are submitted in another language. months. being shipped.

The information is derived from the European Commission's Market Access Database with courtesy of the data provider and copyright holder Mendel Verlag GmbH & Co. KG. Any kind of further reproduction requires prior written consent of Mendel.

www.Argentina.DoingBusinessGuide.co.uk : 33 Economic overview

Geography Argentina’s western border with Chile runs along the Andes mountain range, and to the north the country is bordered by Bolivia and Paraguay, to the northeast by Brazil, and Uruguay and the South Atlantic Ocean to the east. [Source – Argentine Investment & Trade Promotion Agency (Jan 2018)] General overview biotechnology and design manufac - (seed, meal and oil) and sorghum; Argentina has a highly diversified turing. The service sector is the the seventh producer of barley and economy. The primary sector is largest contributor to total GDP, the twelfth producer of wheat. internationally renowned for its high accounting for over 50%. productivity levels and use of Argentina holds the fourth largest advanced technologies. The country's The country is a leading food shale oil and second largest shale well-developed industrial base in - producer. Argentina is the world's gas reserves in the world. cludes key sectors such as agribusi - third largest producer of soybean, ness, automotive, pharmaceuticals, soy meal, soybean oil and corn; the [Source – Argentine Investment & Trade chemicals and petrochemicals, fourth largest producer of sunflower Promotion Agency (Jan 2018)]

Benefits to UK businesses Norwegian Air UK two bilateral Chambers of Commerce • high level of professional skills, • Double Taxation Agreement including highest English with the UK (one of only 18 that [Source – DIT/gov.uk] Proficiency Index in the region Argentina has in operation) Sector-specific opportunities • sophisticated market with Euro- • good government-to-govern- pean tastes and business culture ment business relations under • Agri-tech sector – Argentina is the UK-Argentina Commercial one of the greatest food • UKEF export credit facility of Dialogue producing and food exporting £1 billion countries of the world. It has 36 • strong existing business repre- million hectares of arable and • direct daily flights with the UK, sentation: over 100 UK permanent cropland. operated by British Airways and companies present in Argentina;

MARKET EXPERTS

34 : Membership : Training : Qualifications : Advice • Commercial property/real • Information and communications • Urban security sector – With estate sector – Construction technology (ICT) sector – public security rising up, the is an essential sector for the Argentina is an early adopter of market is expected to grow country’s economy and is one ‘big data’ and other sophisticated stronger. of the main promoters of technologies. development. [Source – DIT/gov.uk/Argentine Government • Infrastructure sector – The – Investment and Promotion Agency (Agencia)] • Education sector – Argentina country has 53 airports (22 Business etiquette, language has the highest English language international). Argentina’s rail & culture proficiency in Latin America. network is the 8th largest in the world at 37,000 km. Spanish is the official language of • Experience sector – Argentina Argentina, with characteristic accents has more than 1,000 museums, • Mining sector – Opportunities across the country, which differentiates some are already world class. in the mining sector are increasing it from Spanish spoken in Spain. Smart, in Argentina due to changes in stylish business attire is expected and • Financial services sector – the legislation. is more formal in Argentina than in Argentine State is putting Europe. Timings can be flexible, so emphasis to restore normal • Oil and gas sector – Argentina it may be difficult to arrange more functioning of the institutions is one of the top three countries than one or two meetings in a day. that actively participate in the in the world for reserves of sector. shale oil and gas.

• Healthcare sector – Argentina • Power generation, renewable has one of the highest doctor- energies, and utilities sector – to-population ratios in Latin Argentina boasts abundant America. natural resources.

For more information go to the Doing Business in Argentina Guide website at: www.Argentina.doingbusinessguide.co.uk or to request a copy of the guide email: [email protected]

www.Argentina.DoingBusinessGuide.co.uk : 35 World Trade Matters

Member Focus

Profile of Marcel Landau MIEx countries. The big worry is that throughout that period. I’ve sold to there’s only 200,000 companies in most places in the world, and export the UK exporting compared to over mostly to Europe at the moment. I 400,000 companies starting up have a major distributor who works every year, so it’s a tiny percentage in most major markets in Europe of businesses who are exporting. and I have a worldwide distributor based in the UK who sells our If we’re going to make up the losses products as part of their portfolio of some of what we currently sell to around the world. Marcel Landau MIEx Europe, we’re going to have to drive Vice-Chairman up exports elsewhere. It’s vital that What three tips would you give to The Institute of Export & the IOE&IT helps people to under - companies who are new to export? International Trade stand the opportunities that are out 1. Go through one of our qualifications there and, through training, allow or training courses – that’s the companies to know what they’re main benefit of becoming a member. In each issue of World Trade Matters doing when it comes to export. 2. Use our helpline. we will be running a Member Focus 3. Read the new magazine, as it to talk to our members about their How can the Institute increase its gives very advice on individual history with the Institute and their profile again? We need to be able to markets and shows the IOE&IT in role in UK trade. In this issue we talk partner with a lot of different organi - a really good light. to Marcel Landau, who has long sations like DIT and HMRC. There been an exporter and a board mem - has to be partnership with all the On a personal level, what’s the ber of the Institute. He currently sits government departments so that main lesson you’ve learnt from your on the board as Vice-Chairman. they know what we’re trying to do career in international trade? As much for UK businesses. We also need to as possible, visit your customers in How long have you been a member get more trade associations and person and learn a few words of and why did you join initially? corporate members on board, get - their language, even if it’s just to say, I’ve been a member for 53 years. ting the people they employ to do “sorry I can’t speak your language”. I had just started working in the our training and take our qualifications. export department of an international In my opinion, exporting is largely company, so I started to take the How are you involved in the IOE&IT a question of trust – the only way Institute’s exams as a result and these days? I’ve been involved at you’re going to get a deal with eventually got my MIEx. some sort of executive level for 25 someone from a different culture years or so. This is my second stint and country, is through trust. They’ll What was the Institute like in those as vice-chairman, having also been only initially know you from your days? Very different to now. It was in the role during the mid-2000s. website, so you need to sell yourself much better known with a larger Prior to that I was chairman of one as a person as well as your product. profile because in the 1960s people of its branches and have been were more gung-ho about export - involved in the councils too. You should also know about the ing. It was something that a lot of market you’re selling into – what’s people were aware of and there I’ve always been grateful to the the culture? what’s the history? – so were plenty of opportunities around. IOE&IT. The qualifications I took in that you can at least hold a conver - This was before we had joined the the 60s helped me to get a better sation with them. You need to be EEC around the time that Charles de job and to go onto achieve what able to show the person you’re Gaulle said “non” to our applications I have. I always believe in putting talking to that you’re interested and to join. back into something you’ve benefitted that you care. from and I’m always happy to do what Are we returning to a Britain that is I can to help and promote the IOE&IT. You should also know about the more outward looking? We’re going company you’re dealing with, to have to. If we do leave the EEC, How are you involved in exporting including why they’re interested whatever way we do it, the only way generally at the moment? I started in what you do and why they’d the country will go on is if we go my own business in 1971 selling benefit from buying from you. n back to exporting to lots of other packaging products, exporting them

36 : Membership : Training : Qualifications : Advice The Professional Journal from the IOE&IT

London World Trade Summit

'Exporting is easy, when you know how' On 1 November 2018, the Institute of Export & International Trade (IOE&IT) hosted its annual World Trade Summit in partnership with Barclays and the Policy Institute at King’s College London. The summit, taking place at Bush House in London, gathered key business leaders and decision-makers from both government and industry, including Baroness Fairhead CBE (Minister of State for Trade and Export Promotion), Louis Taylor (Chief Executive of UK Export Finance) and Chris Southworth (Secretary General of the International Chamber of Commerce). It was the centrepiece event of our year-long programme of summits around the UK.

The paper, entitled ‘Removing barriers to export growth: Regional and sectoral perspectives’, was also the focus of presentations by Mark Kleinman (Director of Analysis & Professor of Public Policy, King’s College Policy Institute) and Baroness Fairhead CBE, who also gave an update on the work already being done by the Department for International Trade (DIT) and UK Export Finance (UKEF) towards implementing the government’s Export Strategy that was launched in the summer.

Russ, Mark and the Baroness revealed several key findings, including:

A highlight of the 2018 export supply chains, Lesley highlighted • Improving export performance calendar how the Institute is on hand to is intrinsically linked to overall The day started with an introduction support UK businesses to prepare economic performance from the IOE&IT’s Director General, for all the different potential out - Lesley Batchelor OBE. Lesley up - comes of Brexit, through its training • The UK needs more ‘Super dated the 200 plus delegates on courses, helpline, and qualifications. Exporters’ – companies that some of the highlights of 2018 for export 10 or more products to the IOE&IT, including our work with New export research paper from 10 or more markets u the World Trade Organization and Barclays and the Policy Institute International Chamber of Commerce at King’s College London on the ‘Open to Export International Lesley was then followed by Russ Business Awards’, and some key Grazier (Head of ECA Trade and findings from our summits across Capital – London, Barclays) who the regions in the UK throughout was the first to mention a new the year. research paper launched by Bar - clays and King’s College London’s Noting the potential impact of Brexit Policy Institute at the summit. on UK businesses’ international

www.export.org.uk : @ioexport : 37 World Trade Matters

London World Trade Summit

• The impact of creating more ‘Super Exporters’ is that more smaller businesses throughout the supply chain will then become more likely to export as well

• The export supply landscape is strengthening but remains complicated and difficult to export funding from UKEF suggests then gave practical advice about navigate for new exporters steps are being made towards the how AEO and standards can act actualisation of the export strategy’s as ways of safeguarding business’ • Despite continuing uncertainty, ambition to raise exports as a international supply chains, what - Brexit has placed international percentage of UK GDP from 30% to ever happens with Brexit. trade at the centre of political 35%. debate, which has in turn Mixing it up – Atom Brands show increased awareness about Roadmap to Export Success us how it’s really done export opportunities The second part of the day saw Dr The final session of the day was John Llewellyn (Partner, Llewellyn kicked off by an inspiring case study Speaking of the increasing support Consulting) and a panel consisting presentation from Nick Ravenhall for UK businesses, Baroness Fairhead of Richard Morley (Customs Man - (Global Head of Sales, Atom Brands). noted that when she began her role ager, Grant Thornton), Colin Kneller Nick spoke of his experiences with DIT, there were only 1,700 live MBE (Director of Investigation, exporting Atom Brands’ range of export opportunities on great.gov.uk, Harod Associates) and Toni Allen craft gins and whiskies around the but this has since increased to over (EMEA Marketing Director, British world. Indeed, some of this product 22,000. This along with increasing Standards Institute) give advice on range was showcased during the how businesses can plan their evening drinks’ reception at the end ‘roadmap to export success’ – a of the summit, to the delight of key theme throughout our 2018 most delegates. regional trade summit programme. His advice to look at export markets Dr Llewellyn began the session by as international interest communi - presenting a case for why interna - ties, focussing on the people who tional trade is a good thing for both care about what you do rather than economies and businesses, giving just looking at geographical regions, an overview of the economic climate in international trade, before assessing the potential economic shock that Brexit could have, and the processes and time involved in recalibrating the UK’s economic system after it. The panel

38 : Membership : Training : Qualifications : Advice The Professional Journal from the IOE&IT

London World Trade Summit

Chris noted that the UK will need to uncertainty, so uncertainty can’t be become much more adept at the used as a reason to delay going out nuanced politics of international there and trying to do business. trade – something it hasn’t had to be too involved in at an industry Exporting is easy when you know level while a member of the EU. how In describing some of the ongoing Closing what was another debates at WTO level, he also information-packed World Trade mentioned the tensions between Summit, Lord Green of Hurstpier - liberalised trade in developed point (President of the IOE&IT) markets and the desire to share the argued that increasing exports is benefits of trade among developing a fundamental requirement for nations. the future of the UK economy, especially as it looks to become On a more practical note, Nick more independent and less reliant made the point that businesses on being a consumer of other shouldn’t wait for trade disputes markets. He concluded that this between major nations to resolve can only be achieved if companies themselves, arguing that the best learn how to do international trade was an important point and some - way to do business is to just get on properly – something the IOE&IT is thing which often gets overlooked with it and to make the most of the on hand to support with, through its in many international trade strategies. opportunities that are out there. training courses and qualifications, Nick was followed up by Louis This important point was echoed and through events like the World Taylor from UKEF, who now provide by Jessica who noted that the only Trade Summit. n financing for businesses to export certainty in business right now is into over 100 countries in 62 different currencies.

Trade Wars and Free Trade The final panel discussion of the day tackled ‘Trade Wars and Free Trade’. Moderated by Will Hobbs (Head of Investment Strategy, Barclays), Chris Southworth and Jessica Gladstone (Clifford Chance, Partner) were joined by Nick again to give an update on the latest developments in international trade at an organisational and legal level. Chris and Jessica both noted how the ongoing blockages to the filling of positions on the WTO appellate body – a key body responsible for mediating international trade disputes – was a serious threat to the ability of the WTO to preside over a rules-based trading system and a potential precursor to a worsening of the burgeoning revival of international trade wars, particu - larly between the USA and China.

www.export.org.uk : @ioexport : 39 World Trade Matters

Interview

Why Export Matters: Interview with Dr John Llewellyn

By enabling producers to sell into a The first shock would be the reduc - market that is way bigger than their tion in export volume, relative to domestic one, they gain economies what would have happened of scale in production. That has otherwise. That results in reduced constructive consequences for demand for goods and services, labour productivity, and thereby and thereby in GDP, and then tax for real wages. If you think about receipts. Governments always say the large-scale, high productivity, that they are cash-constrained, high-wage auto industry, for example , but future UK governments most the virtuous link between access certainly will be. The UK has now Dr John Llewellyn to large (foreign) markets and high been through ten years of austerity, Partner (UK) wages is self-evident. Not and public expenditure now at Llewellyn Consulting surprisingly, the international accounts for its lowest proportion evidence is that exports and business of GDP for many decades. There is investment correlate closely. already-evident pressure for public spending to rise. With key institu - Another element is that when tions – including the NHS, the What are the main economic international firms establish armed forces, and the police – now arguments in favour of exporting? themselves in the UK, they not particularly constrained, any further only bring in investment, including period of slow tax receipts is likely For one, exports are a source of important new technologies, they to prove particularly serious. demand that augments demand in also provide increased market the home market. access abroad. The UK is an island and an export- import economy. To what extent Second, exports are a key source of There are further reasons too why will Brexit change the overall foreign-currency revenue that allows exporting is so important. While economic structures of the UK? the UK to import things that it firms individually do not always like cannot or does not make at home. competition, there can be little Any form of Brexit would inevitably doubt that consumers (as well as change structures to some extent; That’s only part of it though. Another all firms that buy inputs) benefit and, in some cases, not necessarily hugely important dimension is that enormously from vigorous for the worse. The UK will likely exporting provides businesses with competition in markets; and the have a proportionately smaller access to a bigger market, and this international trading system, with financial sector than it has at the applies to everyone, even those its current openness to exports and moment, which may or may not be with the largest domestic markets thereby imports, plays a large part in a good thing. There are serious – the Americans, Europeans, and ensuring that competition endures. economists who think the financial Chinese. Given that exporting is services sector in the UK is too big important even for them, think how We still don’t know what Brexit will in relation to its GDP. For example, important it is for countries like the look like, but how much of a shock as measured by bank assets, the UK, that have much smaller home will it be not being part of the size of the banking sector is about markets. European market? five times GDP, which is the biggest ratio anywhere bar Hong Kong u

40 : Membership : Training : Qualifications : Advice The Professional Journal from the IOE&IT

Interview

and Singapore. This makes the UK remained a part of the EU for the good support from the UK vulnerable to periodic banking fundamental reason that it‒ is the EU government, and ensure you have crises, and thereby poses a risk to market, not the UK market, that is a’ website that lays out all that is on the public finances. the big prize market for these offer – something the UK is not companies. great at doing compared with, say, Agricultural policy will inevitably the Australians. However, much of be different from how it has been Supply chains, which are a central what businesses need to do is just these past forty-odd years, though feature of the modern world, and hard graft. it is impossible to know how it will which do not seem to be fully change until the government spells understood in the policy world, On the political level, discussions out its agricultural policy in full may well be a particular challenge, need to be had about where there detail. This could be a difficult area. particularly in mass-production are opportunities, but this is not The notion that the UK is going to activities. Introducing any friction always easy. Each country has its sign trade deals with New Zealand is bound to imply costs. In other agenda. India, for example, wants and Australia is a difficult one to words, Aston Martin and Morgan its people let into the UK, but the fully fathom because what those will probably be hurt less than UK is not keen on this. Australia and countries want is more access Jaguar Land Rover, Toyota, and New Zealand want to export more to the UK market, which is not Nissan. agriculture, but the UK’s farmers do necessarily what UK farmers want. not fancy this. Meanwhile, the EU, What can the UK do to make itself and thereby the UK through the EU, Brexit will probably not be too an attractive proposition to markets already has a fairly comprehensive disruptive for anyone exporting around the world after Brexit? agreement with Canada, and it will knowledge-intensive products, not be easy for the UK to better such as researchers designing Most fundamentally, firms need that, at least for some time, once it microchips for instance. But firms good information on what the is on its own. And much the same that manufacture things will suffer world demands, and then must applies to trade with other countries, – some already are because produce these goods and services including Japan, where the EU has Europeans are startin‒g to source at high quality and a competitive just signed a rather far-reaching from alternative suppliers on the price. trade deal. Continent. Much will depend on the precise Brexit deals that are In part this is a cultural matter. In In short, if the UK goes ahead with ultimately struck. Germany for example, exports are Brexit, the going will not be easy. n widely considered to be a, quite In terms of manufacturing, I doubt possibly the , superior form of that the UK will end up in a situation demand. It is not obvious that where automobiles, for instance, that is the case in the UK. will not be produced in this country at all, because the government is Many things could be done to determined to preserve that industry. boost UK exports. From the However, the industry may well perspective of a business, it is not see the new investment that necessary to: go on trade missions would have come in had the UK to tell people what you do; receive

www.export.org.uk : @ioexport : 41 World Trade Matters

Interview

Managing Risk: Interview with Martin Dubbey (Harod Associates) dealing with overseas, the classics From my experience so far, it’s a bit of know your customer and know early for companies to think about your supplier. Are they credible or new markets. People are still waiting are you being drawn into a fraud or to see what’s going to happen. scam? Are they who they say they Despite the encouragement, it’s are? hard to see a move or a trend in companies looking far beyond the Our role is to protect our customers EU. My main concern is that there from supply chain risk, to protect are between 145,000 companies them from regulatory concerns who only trade with the EU and Martin Dubbey such as sanctions and breaches in who have only experienced CEO at Harod Associates customs procedures, whilst at the frictionless trade routes into export same time making sure that they before. If new regulations come in, are dealing with suppliers and which is likely, how will that affect customers who are who they say them? That’s where we will come in Harod Associates help companies they are. to help and advise on the new manage risk when selling overseas, procedures. including the threat of fraud and Would you say that the biggest crime. What are the main things aspect of managing risk is doing How do you help companies that exporters need to know your proper due diligence? prepare or respond to tariff about when it comes to risk changes caused by other factors and international trade? It is absolutely vital to know who like trade wars? you are dealing with as you move We’re a company of former into new markets. There are plenty This is a concern of ours, but our customs officers and investigators. of fraudsters out there, so doing role is more down to earth, helping We look at crime and trade risk due diligence becomes absolutely companies with customs processes issues in terms of threats to the vital both from the perspective of and procedures. We help companies supply chain. We also look at making sure you know who you’re who have not experienced the full border and customs procedure dealing with and making sure you extent of customs procedures before, changes that may come about don’t get ensnared in any regulatory whether under WTO rules or another because of Brexit and the encour - or crime issues. arrangement. agement to do more trade with the rest of the world. With Brexit on the way and lots of Companies who have already been companies being told to spread dealing with WTO rules won’t have From my perspective, an important beyond the EU, have you seen too much of a problem extending way to deal with supply chain risk is an uptake in interest? that to their European market, u to ensure you know who you’re

42 : Membership : Training : Qualifications : Advice The Professional Journal from the IOE&IT

Interview

but we just don’t know how bureau - AEO has been talked about as a to improve. Once you’ve decided cratic it might get. If it becomes a solution. Should companies be you’ve got everything you need log jam it will affect everyone no looking at AEO as a way of using the software, you’ll be able to matter how well-versed you are in mitigating risk? press a button to print off your AEO the procedures. As former customs application. officers we help and advise people The system of AEO has been heavily on the best way to prepare for Brexit pushed in the government’s white The software will be useful for in terms of both their own customs paper as part of its proposals to companies, particularly as there’s procedures and managing risk the EU. I don’t think it’s a complete been an increase in applications throughout the supply chain. solution, but it will definitely be a made to HMRC. Our understanding partial one if the EU agrees. is that HMRC are looking to recruit Do you think businesses in general 5,000 new customs officers to are well enough prepared? AEO is built on WTO guidelines and police the borders; of those 5,000, adapted around the world. Exporters 1500 will be allocated to policing It will be a real jolt for those com - who are looking to increase their AEO. It’s clearly on the government panies who’ve only traded with the trade around the world may benefit agenda. EU before – particularly those who from AEO. Because we know that have traded over just the last 10 to other countries are coming on What we don’t know is what the 15 years. One of our former customs board with this system – such as EU’s response will be, so we don’t officers worked in customs control Japan and India – it’s going to be know what benefits there will be to before our entry into the single mutually beneficial for companies a German company working with market in the 1970s so we’ve got in these adopting countries. a UK company that has AEO. We a depth of experience about what don’t know yet if it will contribute trade might look like after Brexit. We say it’s helpful because it involves yet towards frictionless trade, but it Overall, companies have to do a review of your physical security appears high on the government much more to prepare. This is and it involves a review of your agenda to do so. n absolutely business critical now. I compliance to ensure you are up- would advise that within companies to-date with customs procedures – a point of contact for customs trade both are things we recommend all procedures is set-up. companies to do.

The primary concern will be those We’ve developed a gap analysis companies who’ve only previously software called SafeguardAEO, that dealt with Europe; secondary will helps companies through the AEO be those looking for new markets process. You’ll be able to assess and how they will deal with WTO where you stand in relation to AEO rules coming in. requirements and where you need

www.export.org.uk : @ioexport : 43 World Trade Matters

Insurance

How robust risk management can help you go global with confidence

Expanding geographic horizons and embracing global trade undoubtedly brings companies countless opportunities, but also inevitably increases the range of risks and exposures they face. So how can a firm best mitigate those risks and go global with confidence?

Effective risk management through risk management really can make robust practices and procedures the difference between an afford - will ultimately enable a company able insurance premium and a to avoid risk altogether, reduce the cost-prohibitive one. chance of the risk arising or mitigate the effects should that risk occur. For example, consideration should It shouldn’t be forgotten that be given to the following areas: insurance itself is a form of risk management – you are essentially • Different regulatory and tax Cheryll Rawbone paying someone else to take the regimes – are you compliant? Chairman of the Coventry risk from your own balance sheet branch. Global insurance and transfer it to theirs. • Transit of goods – are there broker, risk management different options (road / air / sea) services & consulting firm The international insurance market and what are the risks involved? Gallagher is also complex, with regulations Will you transport yourself or and requirements differing from use third parties? country to country, and subject to frequent change. You can ask • Do you have sufficient testing for advice about the additional risks and quality control procedures you may face as a result of exporting in place? Is this evidenced and from either your insurance broker documented? or a specialist risk consultant, but effective risk management really • Do you know what your product can make the difference between will be used for after export? Will an affordable insurance premium it be incorporated into another and a cost-prohibitive one. To product? Can you control its Colin Cunningham achieve this, businesses need a use by contract or other means? Specialist in trade credit solid understanding of the land - and surety. Global insurance scape of their chosen overseas • Do you have recall procedures broker, risk management markets to provide assurance that in place? services & consulting firm any insurance protection they have Gallagher bought will respond and thus • Do you have a business protect their assets and liabilities. continuity plan (BCP) in case of crisis? That means knowing the right questions to ask, and the right areas • Is there access to crisis resilience to assess. Advice can be sought advice or assistance? from either your insurance broker or a specialist risk consultant about • Have you considered the impact the additional risks you may face as of hold harmless agreements/ a result of exporting, but effective joint or named insureds? u

44 : Membership : Training : Qualifications : Advice World Trade Matters

Insurance

• And what about courts’ Marine / Cargo / Transit Trade credit insurance provides jurisdiction & geographical If you are exporting a physical cover for businesses if customers exposure, sanctions, and product then it needs to move from who owe money for products or contract control? your factory or warehouse to your services do not pay their debts, or customer, and marine insurance pay them later than the payment How insurance can be part of the provides protection for this. There terms dictate (in domestic and solution are various ways of covering goods export markets). It gives businesses When you start to trade internation - in transit, and often this depends on the confidence to extend credit to ally you will realise that different who is made responsible for the customers, both new and existing, people often talk about insurance goods whilst they are on the move. and can help facilitate access to using slightly different terms. But Cover can be placed per the improved funding and reduced there are some core types of cover Incoterms applying. borrowing rate from your financier. to get to grips with: what they do and where they might impact on If you are the party deemed Typically risks covered are: your international business or your responsible for the risk of loss or ability to trade profitably. damage in transit to your customer, • Commercial risk: the risk that then cover will normally be your customers are unable to If you are planning to export either arranged by you. Alternatively, your pay outstanding invoices products or services, there are transport of the goods may be because of financial reasons — certain policies you are likely to carried out by a specialist third party for example, declared need, which we set out here. While haulier. In this case, the haulier may insolvency or protracted default. you may already have these in your provide cover – but you should existing programme, it is not check this carefully. The haulier • Political risk: non-payment as a sufficient to simply have a policy may charge a higher cost than if result of events outside your or with these names or descriptions you insured yourself, and cover the customer’s control — for on them — the underlying insurer may be limited. example, due to political events must be made aware of and (wars, revolutions); disasters, advised about your export activities In some cases, the customer will (earthquakes, hurricanes); or as the existing policy wording may prefer to arrange the transit them - economic difficulties, such as a not be suitable, meaning the policy selves. If this is the case then they currency shortage so they are might not respond in time of need. will usually insure. Again, it is unable to transfer money owed Notifying the insurer will also important to check what cover is in from one country to another. discharge your duty of disclosure. place. You can insure single transits, or put an annual policy in place to Cover can be whole turnover (UK Product Liability cover all transits. and/or export sales), multi buyers, This cover protects you in the event named customers or single risk that your product causes injury or Trade Credit cover. damage to a person or their With the continued uncertainty and property. You could be liable to pay volatility in the economic climate, In conclusion, with good advice compensation in these circum - businesses are also looking more and support you can embrace the stances even if you didn’t manufac - closely at ways to protect their opportunities for global trade whilst ture the product, and the costs can largest current asset – account effectively mitigating your risk be severe. receivables — by minimising and exposure. n mitigating the impact of a bad debt If you design, manufacture or through the protection of their supply a physical product, then you balance sheet against non-payment should have this form of insurance risks. protection, even if it is manufactured by someone else. Some countries Most customers today require will apply a strict liability to injuries credit terms in order to buy goods caused by faulty products, so you and services, and a reluctance to could be liable even if you haven’t offer credit can place suppliers at a been negligent and it isn’t your fault. distinct competitive disadvantage.

www.export.org.uk : @ioexport : 45 World Trade Matters

International Business Awards

The Institute of Export & International Trade are ‘WTO-ICC Small Business Champions’ Zambian Honeymakers, Dytech Limited, Win the ‘Open to Export International Business Awards’

The Institute of Export & International completing an ‘Export Action Plan’, Dytech Limited impressed the Trade (IOEIT) are now officially using Open to Export’s (OTE) online judging panel with their broad recognised as ‘Small Business planning tool. product range, 100% natural Champions’ by the World Trade production processes, and its social Organization (WTO) and the Inter - After a thrilling showcase final at the impact in training highly skilled national Chamber of Commerce WTO Public Forum in Geneva - in beekeepers in Zambia, 40% of (ICC). This follows the completion which the year’s best ‘Export Action whom are women. Two runners of the IOE&IT’s proposal to run Planners’ pitched to an expert panel up – Hot Mama’s Belize (pepper 'The Open to Export International of judges for the chance to win a sauce producers) and Lhamour Business Awards’ – a competition $5000 cash prize - Dytech Limited, (skincare products from Mongolia) - encouraging MSMEs from anywhere a Zambian honey producer, were also won free membership with in the world to take ownership of named as winners of the inaugural the International Chamber of their international strategies by international competition. Commerce. u

46 : Membership : Training : Qualifications : Advice The Professional Journal from the IOE&IT

International Business Awards

The IOE&IT had received export plans from all over the world, with the finalists coming from Peru, Vietnam, Algeria, Zambia, Belize, Mongolia, Macedonia, Trinidad, Armenia, St Kitts, Jordan and the UK. Overall, the IOE&IT reached SMEs in at least 74 countries during the awards initiative, showing that it is leading the way for a more outward-looking Global Britain.

The judging panel consisted of Yi Xiaozhun (Deputy Director General of the WTO), Chris Southworh (Secretary General of ICC UK), Arne Mielken (Young President of the IOE&IT), Nicholas Niggli (Director General for Economic Development , clocks, and food-inspired beauty Trade is playing an important role in Research and Innovation, Republic products from St Kitts. bringing the indisputable benefits of and State of Geneva), and Shaun open trade to a wider cross-section Lake (Senior Adviser: E-Learning at Throughout the Forum the OTE of companies and workers. the International Trade Centre). Awards stand was a busy hub of Congratulations.” The final was compered by Director inspiration and discussion, with each General of the IOE&IT, Lesley of the attending finalists meeting Lesley Batchelor, Director General Batchelor OBE. with international businesses, media, of the IOE&IT, said: governments, and trade support "Running this competition and Causing a Stir at the WTO Public organisations. working with inspiring MSMEs from Forum around the world has been both “Inspiring to be supporting SMEs humbling and truly inspirational. The final took place at the WTO from all over the planet” Thank you to the WTO and ICC for Public Forum - the WTO’s largest supporting it." annual outreach event, providing a WTO Deputy Director-General Yi platform for participants to discuss said: Arne Mielken, Young President of the latest developments in world "I would like to congratulate the the IOE&IT, said: trade and to propose ways of Institute of Export and International “We are deeply honoured by the enhancing the multilateral trading Trade on the completion of their confidence the WTO and ICC have system. Throughout the Forum, project. Developing the skills of placed in us, enabling us to make a the IOE&IT and OTE ran a stand SMEs and giving them the necessary practical and tangible contribution promoting the competition finalists, guidance is essential if we want towards more inclusive trade. We’ve including samples they had bought them to increase their participation been delighted to work with the from all over the world. in international trade. I also wish to WTO on the Open to Export Inter - congratulate all the finalists for the national Business Awards with the The stand showcased the businesses great ideas they have presented honour of hosting the final at this of each of the finalists, with samples today." year’s WTO Public Forum. We are on show including Vietnamese and proud of the achievements of our Mongolian natural soap products, Chris Southworth, Secretary General finalists, who are a shining light for Scottish marine biology inspired of ICC United Kingdom, said: MSMEs around the world. The fashionwear, Algerian chemical-free “Making world trade more inclusive future holds bright for all of our pesticides and rodenticides, and means enabling more SMEs to contestants today, who have shown Andean beauty salt products. From trade — like the 12 finalists of this the impact that technologies like further afield, finalists also pitched International Business Award — our 'Export Action Plan' tool can Armenian wines, Macedonian and expand into global markets. make towards increasing trade from caviars, Belizean pepper sauces, In helping SMEs design and imple - all places and from business of all Jordanian tote bags manufactured ment global growth plans, the sizes.” n by Syrian refugees, Trinidadian vinyl Institute of Export and International

www.export.org.uk : @ioexport : 47 World Trade Matters

Export Action Plan

Representative: Alan Chanda | www.facebook.com/dytech.zambia Dytech Limited (Zambia) How did you find the experience How did you find the using the growing niche market alongside of pitching to the judges during Export Action Plan tool and what Honeyman Sweets™ in 2019. This the final? impact did it have on your will shape the growth strategy in business? terms of building the capacity to I found the pitching experience increase the revenues streams from very rewarding and the follow up The Export Action Plan is a very various honey products. Then we questions by the judges extremely useful tool that I found to be will reinvest into building 100,000 helpful, enabling one’s business practical in guiding one’s business innovative low cost ZamHives ®, idea to be examined by experts through well targeted steps to build 40% of which will be given to which in turn improves the overall an efficient export strategy. It sets women to increase honey produc - projectile. milestones with lists of items to use tion to 3,000 tons per season in rural and affords one the opportunity to African communities by 2020. Now, How did you find the experience plan each step ahead of time. This a greater market has emerged from of being at the WTO Public Forum? is very important in helping formalise our highly productive ZamHives ® - all possible logistical requirements an innovative dynamic scalable It’s a great place and platform to for success in our interconnected low-cost beehive that that lifts interact with people from all walks world. yields from 15kg per season to of life from around the world, who 75kg, which we will seek to exploit. serve as crucial avenues for Looking ahead, what’s your next exchanging ideas. This is vital to step now as a business? Current market demand far out - shape businesses in the times strips our capacity to produce ahead. I found it amazing to learn Dytech plans to model its export beehives, which Dytech makes from so many experts for free. This strategy, picking up from the through outsourcing to a range of is a priceless experience that I could successful Export Action Plan tool, people including carpentry work - not imagine getting in one place. to develop a robust viable business shops offering vocational training approach. We plan to introduce to youths. We need investment in small SweetHarvest™ Pure machinery to build a high capacity Honey™ portions for restaurants carpentry workshop and employ hotels, lodges and commercial 100s of youths to meet the market airlines, to cater for a rapidly demand across Africa. u

48 : Membership : Training : Qualifications : Advice The Professional Journal from the IOE&IT

Export Action Plan

What three tips would you give to other MSMEs looking to enter international trade?

• Carry out research to under- stand export market requirements in the export region(s) of interest.

• Develop a plan to make sure the product(s) meets the export requirements.

• Develop a plan that takes all costs and logistical requirements into account. n

About Dytech Limited & lozenges), squeezer bottled honey (250g, 350g Dytech Limited is a highly innovative agribusiness & 500g) and 300kg metal drums bulk export company. Under the brand SweetHarvest™ Pure branded as SweetHarvest™ Pure Honey™. The Honey™, Dytech produces 320 tons of honey company controls the quality of the product in from wild flowering miombo forests of Zambia, every step of the production chain from the processing and packaging it, as well as offering beehive to the consumer. It uses ZamHives ® as an beeswax, royal jelly and propolis, and various other innovative dynamic scalable low-cost beehive that honey-based products. The products are sold in that lifts yields from 15kg per season to 75kg – an 150 selected shops and 3 major chain stores in increase of 250% that has been introduced in four Zambia, as well as to international buyers. provinces of Zambia and two towns from South - ern Democratic Republic of Congo. It has trained The company uses innovative extracting method - 2,500 beekeepers, 40% of whom are women, in ology and equipment, securing its continuous order to increase the production capacity to meet supply through two big farms populated with the huge export demand. 2,000 beehives and 2,500 rural honey out growers, with 5,000 SweetHarvest™ Pure Honey™. THE MARKET Local demand in Zambia is estimated at about 180 Dytech pays rural honey out-growers above 150% tons with estimated growth of 60%; export demand compared to the value of most crops they grow from the EU is at 400,000 tons; from China there per kilogram. We call this beehive ZamHive ® with are 365,000 tons; 280,000 tons from the USA; an average production uplift of 250% from 15kg to and from South Africa 500 tons at an equal 75kg. growth. Dytech currently has tremendous market interest from Norevo from Germany for 200 tons THE PRODUCT of honey every 4 months, a growing supply to Dytech Limited produces honey that is 100% South Africa with current exports at 60 tons of natural and sells various innovative value-added honey per year. Demand for bee wax and propolis products such as honey sweets (in various flavours from Europe is high as well and demand for including mango, pineapple, apple, lemon, straw - ZamHive ® is now estimated at around 100,000 berry, banana, orange) and gongs (candy, lollipops from as far afield as Mozambique and Nigeria.

www.export.org.uk : @ioexport : 49 Market Profile: Doing Business in Egypt

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Egypt overview de.co.uk sinessGui ngBu obile App t.Doi the free M .Egyp download www ebsite and Visit the W

D BY: UPPORTE The Arab Republic of Egypt has a strategic geographical S

ED BY: SUPPORT

ED BY: SUPPORT location in the heart of the Middle East and North Africa (MENA) region with sea ports scattered over the Mediter - ranean, Red Sea and Suez Canal, making it a hub for in ternational trade between Europe, the Middle East, Africa and the Far East. The Suez Canal links the Red Sea Download the to the Mediterranean – a connection vital not just to Egypt free Mobile App but to the world.

Egypt is a lower-middle income growth markets. Egypt’s free trade country with a population of almost agreement with the EU means that 100 million. Its fast-growing, young UK companies trading with Egypt population, diverse and expanding are exempt from tariffs on industrial economy, and its strategic location products. Many already benefit; the make it an ideal global business value of UK trade with Egypt is hub. At nearly 30 million, Egypt’s around £3 billion. In addition the labour pool is the largest in the numerous free zones around the region, consisting of a well-trained, country support Egypt-based highly-educated and competitive manufacturing hubs for SMEs and workforce in a variety of sectors. multinationals. There are abundant opportunities for UK businesses. As an added incentive, beneficial trade agreements, including the Greater Arab Free Trade Area (GAFTA) and Common Market for Eastern and Southern Africa (COMESA), provide the country with favoured access to regional

50 : Membership : Training : Qualifications : Advice Quick facts

Location: Northern Africa, bordering the Mediterranean Sea, between Libya and the Gaza Strip, and the Red Sea north of Sudan, and includes the Asian Sinai Peninsula

Area: 1,001,450 km 2

Population: 99.3 million (United Nations, 2018)

Urban population: 42.7%

Capital city: Cairo

GDP per capita: US $2,500.8 (FY 2017)

Languages: Arabic (official), English and French widely understood by educated classes

Religions: Muslim (predominantly Sunni) 90%, Christian (majority Coptic Orthodox, other Christians include Armenian Apostolic, Catholic, Maronite, Orthodox, and Anglican) 10% (2015 est.)

Government type: presidential republic

Legal system: mixed legal system based on Napoleonic civil and penal law, Islamic religious law, and vestiges of colonial-era laws; judicial review of the constitutionality of laws by the Supreme Constitutional Court

Currency: Egyptian Pound

Climate: desert; hot, dry summers with moderate winters

Natural resources: petroleum, natural gas, iron ore, phosphates, manganese, limestone, gypsum, talc, asbestos, lead, rare earth elements, zinc

Natural hazards: periodic droughts; frequent earthquakes; flash floods; landslides; hot, driving windstorms called khamsin occur in spring; dust storms; sandstorms

Time difference: UTC+2

Internet country code: .eg

National holidays: Revolution Day, 23 July (1952)

National symbols: golden eagle, white lotus; national colours: red, white, black

[Source: FCO Economics Unit, CIA World Factbook (January 2019)] Market Profile: Doing Business in Egypt

While exporting to Egypt the following general requirements apply

Prior Notice of Arrival/ Ish'ar qabl-al- wusul This document is to be prepared by the carrier or his agent in English or Arabic and submitted to the authorities at the customs office of entry in the original, no later than one day prior to arrival.

Manifest/ Qa'imat al-shahn (also re - ferred to as general and single trans - portation list of cargoes) The document is to be prepared by the carrier or his agent in Arabic or English and submitted electronically. Prior registration with the Egyptian Customs Sir Geoffrey Adams, British Ambassador Authority (ECA) is required to submit the manifest electronically. A separate to Egypt manifest is required for each unit of transportation. Egypt is an exciting destination for UK investors and exporters. For sea freight, the Manifest is to be The sheer size of this ever-growing market, and the natural advantages of handed in to the customs authorities at its energy reserves, geographical location and unique history, produced least 24 hours prior to ship arrival. For air opportunities and returns in a diverse range of sectors even when times freight, it may either be submitted after were tough in the global economy or regional politics. British companies the arrival of the airplane or prior to its departure in the country of export. In have done uniquely well seizing these opportunities, making the UK Egypt’s case of road transportation, it must be top economic partner with 40-50% of all investment flows into Egypt each handed in to the nearest customs office year. of entry upon the vehicle’s arrival at the border. Now, Egypt is on the threshold of a new era, with a series of unprecedented reforms since 2016. The opportunity now is for Egypt to move from this Single Administrative Document stabilisation phase to new and more diverse, inclusive growth. That requires The SAD is to be completely by the a more open private sector, and more transparent rules for companies to importer in Arabic. come and compete in a clear and predictable environment. It is to be submitted electronically via the Egyptian Customs website after The Egyptian Government is sending a clear signal about the importance registration with ECA. A paper declaration of winning new investment in this way to grow exports, industrial produc - form may no longer be submitted. tion and a huge new middle class in one of Africa’s giant economies. The In case no electronic procedure is UK Government and international institutions are actively supporting Egypt available at the border entry point, to implement this vision. the document must be submitted at the closest customs entry point.

British business is set to be Egypt’s perfect partner, with world class Declaration of Dutiable Value strengths well-aligned to Egypt’s priorities. Over 1,500 UK companies This document is required if the goods are already active in a range of sectors. As Egypt shifts its focus to unlock are not duty-free and is to be completed talent, enterprise and innovation, the UK is leading the way in knowledge- by the importer in English or Arabic. intensive sectors such as education, technology and finance. The customs authorities will issue a summary report after evaluation. Sir Geoffrey Adams British Embassy Cairo https://www.gov.uk/world/organisations/british-embassy-cairo

52 : Membership : Training : Qualifications : Advice Advice from our Technical Helpline

The Institute of Export & International Trade's 'Export Helpline' provides help for any international trade query, including documentation, export controls, customs & VAT procedures, payment terms, Incoterms, and much more. Members of the IOE&IT can access the helpline for free.

Electronic customs procedures are also further efforts and note that the legisla - Systems. The officials at the customs available and accessible after registration tion may be mandatory for designated office of entry will determine the with ECA. goods. relevant channel for the release of goods. The Manifest is one of the most Commercial Invoice Proof of Preferential Origin important documents for risk manifest. The invoice is to be prepared in English Only required if preferential treatment or Arabic and submitted to the customs under a free trade agreement or Goods to be released for foreign trade authorities in duplicate. It also needs to arrangement is claimed. The Proof of participants who meet all compliance be certified by a chamber of commerce Preferential Origin is to be submitted criteria for their admittance to AEO in the country of export. by the exporter. services are not subject to the Risk Management classification. Even though Ministerial Decree No. Air Waybill/ Boulisat shahn gawwiy 1859 of 2004 states that for EU This document is to be prepared by the Commercial Registration/ Qayd fi-l- originating goods a legalisation of the carrier or his agent. It is usually issued in sigill al-tigari Commercial Invoice by the Egyptian English. The Air Waybill consists of a set The document is a prerequisite for the Consulate is no longer required, in of forms, three of which are originals Importer Card, the Single Administrative trade practice authorities may not and the rest are copies. Document (SAD) and various other always differentiate between the origins. procedures. It is required for customs Hence, a legalised document accompa - Bill of Lading/ Boulisat shahn bahriy clearance and business establishment. nied with the goods may save further This document is to be prepared by the The period of validity is unlimited unless efforts. Any indication of the country carrier or his agent as a clean or unclean there are changes in the data provided must make use of the its full Bill of Lading. Usually issued in English. upon registration. denomination "Arab Republic of Egypt". Three full sets of the Bill of Lading are usually issued, each containing an Importer Card/ Talab al-qayd fi-sigill Designated goods require additional original and several copies. al-mustawridin details to feature in the Commercial This document proving entry into the Invoice. Company seal of the exported If goods are shipped by sea without a registry of importers at the General must be stamped along with the document of title to goods, a Sea Organization for Export and Import mandatory signature. Waybill is used instead. Control (GOEIC) is a compulsory condition for conducting any kind Pro Forma Invoice/ Fatura mabda'iyya Insurance Certificate of import activities and required for This document is a prerequisite for the This certificate is to be prepared by the customs clearance. Certificate of Conformity, but may also insurance company of the exporter or be required by the importer or compe - the importer. To be issued in English or Tax Registration Card/ Talab tasjil bitaqa tent authorities. It usually contains the Arabic. The certificate is to be submitted daribiyya same information as the final Commer - in the original. This document proving entry into the cial Invoice, but may be more concise. respective registries of the Egyptian Tax Delivery Order Authority (ETA) is required for customs Packing List/ Kashf 'abwa This document containing the formal clearance and business establishment. It is usually prepared by the exporter in obligation of its issuer to deliver the The registration is to be applied for by English or Arabic and serves as a basis denominated parts of the shipment to the importer at the Ministry of Finance for the customs treatment of goods. its bearer is required for the customs and completed in Arabic. The processing It is to be submitted in triplicate. clearance. It is to be issued by the bearer time is a maximum of seven days and of the Bill of Lading. The document is there is no processing fee. Certificate of Non-Preferential Origin/ usually issued in English and is to be Shahadat al-mansha' submitted in the original. If issued in a The period of validity is unlimited unless The certificates are usually issued by language other than Arabic, English or there are changes in the data provided the chambers of commerce. It is to be French, a translation may be required. upon registration. In the latter case, the submitted by the exporter in duplicate. ETA is to be notified within 21 days of Risk Management the modification. As with a commercial invoice, legislation Egypt provides a regularised system of the certificate is no longer required by for the risk management of goods to the Egyptian Consulate and in practice be imported. The relevant documents authorities may not always differentiate and procedures for each commodity the origins. Again, a legalised document are to be pre-defined by the General accompanied with the goods may save Directorate of Risk Management

The information is derived from the European Commission's Market Access Database with courtesy of the data provider and copyright holder Mendel Verlag GmbH & Co. KG. Any kind of further reproduction requires prior written consent of Mendel.

www.Egypt.DoingBusinessGuide.co.uk : 53 Economic overview

Geography The Arab Republic of Egypt is a large country, over a million km 2 situated in the northeast corner of the continent of Africa. It has a strategic geographical location in the heart of the Middle East and North Africa (MENA) region with sea ports scattered over the Mediterranean, Red Sea and Suez Canal, making it a hub for international trade between Europe, the Middle East, Africa and the Far East.

General overview Egypt is highly import-dependent In 2017 it had an annual Gross that offers significant business and is likely to remain so for the Domestic Product (GDP) per capita opportunities. Its economy is among foreseeable future. Over the last 15 of US $2,500, putting it in the top the most diversified in the MENA years it has been undergoing a trans - three economies in Africa. region and its geographic location is formation into a market-orientated hard to beat. economy. Egypt remains an attractive market [Source – DIT/gov.uk]

Major economic projects Sector-specific opportunities

• Suez Canal Economic Zone - • The Capital Cairo - The Capital • Defence sector – Egypt has The Suez Canal Economic Zone Cairo is Egypt’s new administra- over 1.3 million military personnel, (SCZone) is a world-class free tive city situated along the the largest military power in zone and trade hub along the corridor between Cairo and the Africa and one of the leading banks of the newly-expanded Red Sea, providing linkages to forces worldwide. Suez Canal. Strategically located significant shipping routes. The on the main trade route between master plan is to create a global • Education and training sector – Europe and Asia, more than 8% city with smart infrastructure for Education is a high priority for of global trade passes through Egypt’s future. the Egyptian Government, every year. which is spending 12% of its [Source – Egyptian-British Chamber of budget on the sector. Reform is Commerce] required at all levels.

MARKET EXPERTS

54 : Membership : Training : Qualifications : Advice • Infrastructure sector – • Power sector – Egypt possesses documents, forms, laws and Construction remains one of an abundance of land, sunny decrees are in Arabic. the most important contributors weather and high wind speeds, to the domestic economy. making it a prime location for Personal relationships are key Transport is one of the current renewable energy sources. to doing business in Egypt. UK priority areas for development exporters are encouraged to have for the Egyptian Government, • Retail sector – The government a face-to-face business dialogue which is looking to roll out an is looking to develop an efficient with their Egyptian counterparts. era of mega-projects. retail environment, supporting various sectors of the growing • Life sciences sector – The economy. healthcare and pharmaceuticals sector is a growing sector in [Source – DIT ] Egypt, and represents one of the key markets for medical devices Business etiquette, language in the MENA region. & culture

• Oil and gas sector – The oil and Egypt is a Muslim country. You gas sector represents a massive should respect and be aware of opportunity for UK PLC. Egypt is local traditions and sensitivities and implementing an ambitious always behave and dress modestly. modernisation programme to turn the sector around and Arabic is the most commonly- return to net export status by 2020. spoken language. Almost all official

For more information go to the Doing Business in Egypt Guide website at: www.Egypt.doingbusinessguide.co.uk or to request a copy of the guide email: [email protected]

www.Egypt.DoingBusinessGuide.co.uk : 55 World Trade Matters

International Focus

The changing customs landscape in South Africa

We talk to Rose Blatch, the Executive Director of the International Trade Institute of Southern Africa NPC (ITRISA).

that are to be implemented in We’re about to undergo significant stages - they have been ratified change in our customs procedures by parliament, but implementation with Brexit and there’s lots of talk has been delayed because of about delays at ports meaning objections from industry. For losses for businesses. What advice example, one of the changes would you give to UK businesses proposed in the drafting of the acts ahead of these potential changes? was to remove the existing customs clearance facilities at inland ports, The communications system e.g. City Deep (on the outskirts of between customs and industry is Rose Blatch Johannesburg). As these facilities key - people need to stay abreast Executive Director of the have done much to ease congestion of what customs authorities are International Trade Institute at our very busy port of Durban, thinking. In South Africa, customs of Southern Africa NPC arguments about whether or not it forms part of SARS (the South (ITRISA) is wise to return customs checks to African Revenue Service) and that ports of entry have been ongoing. whole system is currently under review because of underperforming How do businesses in South There have also been a lot of tax collection. The President has Africa generally go about dealing questions about the new reporting recently axed the SARS Commis - with customs compliance require - system for conveyances and goods sioner following a judicial enquiry ments? How different will this be (the RCG). This new system for into possible corruption. in comparison to their UK/EU goods declaration processing counterparts? affects all cargo carriers as they So, Customs at present are in a are now required to report back tricky position, with much lost For businesses the norm here is to to Customs digitally before the ground to recover. The emphasis use what we refer to as a clearing loading of goods in the country has been on the control rather than agent, which is similar to a customs of export. This is to ensure the facilitation of trade because a great broker. We have a very active for - availability of information in South deal of money has been lost in illicit warding and clearing sector, but Africa long before the goods trade and breaches of compliance. the legislation is undergoing a lot actually arrive here, enabling the The focus is very much on tax of change as we look to modernise identification of risk and a more collection to close the gap and harmonise to global standards. efficient clearance process at the between budgeted revenue and time of entry. However, it requires recent downward projections on The UK is further down the line than all the carriers to be compliant and what is likely to be collected in the we are in terms of modernising able to report information electron - current fiscal year. customs procedures, but in South ically, which currently is not the Africa, ‘customs modernisation’ is case. The UK should be in for a much beginning to accelerate. For exam - smoother ride because you’re a ple, an AEO system, which was Another problem has been the well-established trading nation, supposed to be introduced in 2022, delays in the clearance of incoming but I would like to reiterate that may now be coming into effect goods arising from disputes over communication is key. Any pro - next year. product classification. posed new regulatory requirements need to be passed through the We’ve got two significant new We’re very much in the process of people they’re going to affect customs acts, the Customs Duty change rather than operating before they are enacted, i.e. there Act and the Customs Control Act, smoothly. needs to be collaboration between

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International Focus customs and industry in finalising the new processes and procedures that will come out of Brexit. If this does not happen, you could end up in a situation like ours where there’s a lot of non-compliance and law enforcement is proving difficult.

When new regulations come in, is there always a phase of control before facilitation?

Part of the problem here is that not everyone is into automated tech - nology and the whole customs modernisation process is shaped by this. The changes coming in are all about processing information prior to the actual importation of goods.

This change in how information is processed allows for the pre- assessment of risk and ensures that no client experiences the same customs official twice in order to prevent untoward relationships from developing. The AEO facility really could make a difference because those businesses that are not involved in illicit trade will have a smoother ride, whereas currently everyone is under suspicion of non-compliance.

The UK will most likely not have this problem because you don’t have our history. Your companies, in particular your smaller businesses, are also in a better position to make a transition because they are already familiar with the technology involved.

Our carriers and forwarding and clearing companies are at the forefront of the modernisation process and they’ve been preparing their personnel, so hopefully they will able to weather the changes and adapt quickly. n

www.export.org.uk : @ioexport : 57 World Trade Matters

Dangerous Goods

The Dangerous Goods Regulations

ous Goods Code as an integral part and mixtures. Although SDSs are of their shipping operations. As lead not legally required for finished times come under pressure, it is articles such as batteries, many the IATA (International Air Transport manufacturers provide transport Association) dangerous goods information in a similar format. regulations which impact many Distributors of such items must small and medium shippers, as ensure all the documentation we will now discuss. required for transportation, such as SDSs and test reports, is sourced Training and Shipping Information from the manufacturer through Alan Walsh effective supply chain manage - Compliance Engineer All fully regulated shipments require ment. The rebranding of raw Renishaw plc a shipper’s declaration for dangerous materials requires the creation goods to be presented to the of a new SDS by the producer, courier alongside the commercial which will involve verifying the and export control documentation. tests conducted by the original However, the requirements for manufacturer. The increase in popularity of shipping smaller quantities often electronic devices powered by require more attention. The IATA Product design, packaging and lithium batteries has raised public dangerous goods regulations shipping awareness of the dangerous goods require those preparing dangerous regulations, whether it is a checklist goods for shipment by air to attend Shipping processes are not always at the post office, notifications an approved training course. Whilst associated with product design and during online flight check-in or the these training requirements only marketing strategy activities. How - notices displayed at airport security. apply to shippers, packers and ever, decisions made during this Lithium batteries, aerosols, adhesives, those handling dangerous goods, phase of the product lifecycle metal powders and flammable ensuring compliance involves more can impact the costs and ease liquids are among the most com - business functions than we may of distribution, particularly if the monly shipped dangerous goods. initially expect. product is powered by lithium cells or batteries. If proprietary cells are Each mode of transport has a For manufacturers of materials and purchased to integrate into a dedicated set of dangerous goods articles classified as dangerous custom designed battery pack, regulations – road, rail, inland goods, the process begins with the new battery pack will require waterway, sea and air. While 90% classifying the item. This can require independent testing before it of international freight is carried by a variety of tests to determine the can be transported. In addition, sea, shippers who transport danger - properties of the material. In addition, businesses need to ensure that ous goods in bulk are familiar with the manufacturer must produce a their battery packs and battery the International Maritime Danger - safety data sheet (SDS) for substances powered products comply with u

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Dangerous Goods

any territory-specific electrical regulations there are state (country) variations. These variations are safety certifications before they can and operator (airline) variations in used to communicate the specific be placed on the market in many addition to the core regulations. requirements of individual airlines in countries. Intelligent business systems can addition to the core regulations. In allow for state variations, so that some regions the requirements for The regulations also need to be destination specific requirements supporting documentation are considered during the design can be accommodated in the same more stringent than those in the change process. Changes to the way as for the Export Control IATA dangerous goods regulations batteries used in the product, the regulations. However, the system and the regulations for transporting adhesive used for installation or the data requires verification when the by road may be different, so good accessories supplied can all have an regulations are updated each communication with local distribu - impact on shipping operations. January, because new variations tion hubs is essential. Once the relevant products are may be introduced. identified as dangerous goods with Concluding remarks the appropriate UN code classifica - Working with the courier tion in IT systems, this indicator can As more companies strive to be used to drive regulatory approval The shipper will require an agree - access international markets of design changes to the product ment with the courier to transport through e-commerce, they may or its packaging. each class of dangerous goods that find that an understanding of the they wish to ship. The courier may dangerous goods regulations and Systematic shipping of dangerous choose to audit the shipper’s the integration of the requirements goods despatch facility to ensure they into their operations becomes are applying processes that demon - increasingly relevant. Annual While those making occasional strate due diligence. It is common changes to the IATA dangerous shipments can follow the packing practice for the shipper to integrate goods regulations may impact instruction within the regulations their despatch processes with the shipping operations based on for each shipment, a manual ap - business systems used by the content or destination, so ongoing proach isn’t a practical proposition courier to ensure the effective vigilance of the regulations in addi - for routine shipments. Using IT communication of dangerous tion to the packages being shipped systems to print dangerous goods goods information. For example, is of the utmost importance. n text against part numbers on some couriers require dangerous warehouse orders ensures shippers goods notes to be placed under check the package is prepared the barcode label on shipping correctly and that the correct text labels for easy reference. is communicated to the courier on the shipping documentation. Collaboration between couriers and shippers reduces any delays Within the IATA dangerous goods caused by operator (airline)

www.export.org.uk : @ioexport : 59 World Trade Matters

Services in Trade

Measuring services trade matters Amid heightened debate about the UK’s place in a rapidly rebalancing world, the UK remains one of the world’s leading international financial and related professional services centres. Our final economic research report of this year, the 2018 edition of our annual ‘International Key Facts’ report 1, found that the UK’s financial services trade surplus was more than £60bn. 2 This trade is quite geographically concentrated, with the EU and the US accounting for more than 60% of Anjalika Bardalai the industry’s trade surplus: Chief Economist, TheCityUK UK financial services net exports by major countries, % of world, 2017 TheCityUK’s calculations based on ONS data

Because the UK’s financial services ONS’s Pink Book are a useful tions’ along with other important imports are so small, looking at the snapshot, but more timely data services sectors like travel, transport exports alone would present a can provide a more detailed picture. and higher education, among others. similar picture. Just three countries Until very recently, however, the accounted for 50% of all UK financial quarterly data on the UK’s trade in But more recent quarterly data services imports: the US (which services didn’t allow us to look at represent a major improvement. exported £5bn worth of financial financial services because they For the first time, the statistics services to the UK), Japan (£2.1bn) were based on the International now cover the UK’s entire services and Germany (£1.6bn). Trade in Services survey – and this economy, covering 31 different survey excluded the category types of services. In October 2018, The annual data presented in the ‘banking and other financial institu - the new and improved data u

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Services in Trade release showed that the financial services trade surplus was £16.7bn in April-June 2018, up 8.4% from the same quarter the previous year. The latest data show that the surplus was £15bn in July-September 2018, an increase of 5.2% from July-September 2017. Financial services exports contributed 27.5% of total services exports in Q3 2018.

The new data have been published as part of the ONS’s broader trade development plan, which has evolved because “the demand for improved and more detailed UK trade statistics has increased significantly since the EU referendum.” 3 Further developments are in the pipeline, including further analysis on trade asymmetries and additional detail on modes of supply of services.

This latter area is of particular interest given the extent to which it is likely to affect how services trade is recorded. “Modes” refers to the World Trade Organisation’s (WTO’s) Modes of Supply, which describe four different types of trade in services. These are summarised here:

Categories of services sector trade (BOP) framework – but other But such activity isn’t unrecorded – activity would be classified as it just shows up elsewhere in the This simple summary most likely income, which is another BOP. goes quite a long way towards component of the BOP. explaining why services features How much does this matter? to such a limited extent in the For example, imagine a UK bank Services trade is still a fraction of collective consciousness of trade – established a local presence in goods trade – in the UK, for exam - because services trade is much less Country X to serve customers in ple, services exports and imports easy to picture than the idea of that country. If the local operation totalled £443bn in 2017, compared selling UK food products into remained a UK entity (e.g. a branch with total merchandise trade of overseas markets, for example, or or representative office of a UK £815bn (though even this may be buying a luxury garment imported group), its revenue in Country X misleading, for instance by not from another country. would be considered a UK financial identifying services embedded in service export. If, however, it goods). A more detailed under - The table also helps explain why became resident of Country X as, standing of how the aggregates services trade is so difficult to say, a locally incorporated subsidiary, break down – in terms of types of measure. The WTO is clear that its then its revenue there would be transactions, types of business (e.g. Modes of Supply for services are considered investment income. wholesale or retail), and sub-sectors “significantly broader than the This means that what is captured in within broader categories like balance of payments concept of a country’s trade statistics (the UK’s “financial services”, would enhance services trade.” 4 In other words, £78bn of financial services exports, economists’ and policymakers’ some activity within the four modes for example) almost certainly understanding of this complex but would certainly be classified as excludes some activity that would increasingly important part of the trade in the balance-of-payments be captured under GATS Mode 3. global economy. n

1 https://www.thecityuk.com/assets/2018/Reports-PDF/94053cfc7b/Key-facts-about-the-UK-as-an-international-financial-centre-2018.pdf 2 The trade surplus data in our recent report were sourced from UNCTAD, to facilitate international comparisons; the trade surplus figure is slightly different from that reported by the Office for National Statistics (ONS). But this article makes use of ONS data. The trade surplus comprises £78bn worth of industry exports and £17bn of imports, according to ONS data. 3 Office for National Statistics, ‘UK trade statistics transformation: achievements and forward look, October 2018’ 4 https://www.wto.org/english/tratop_e/serv_e/cbt_course_e/c1s3p1_e.htm

www.export.org.uk : @ioexport : 61 World Trade Matters

Interview

Big Data and Demand Planning

identifying the likelihood of a future identify inefficiencies in supply outcome, having comparative chain and logistics like information using analytics, and bottlenecks and external and making data-driven business internal disruptions to both supply decisions. For Executive Leadership and demand. In short, it provides it’s about long-term planning; for visibility into specific areas of a Finance and Accounting it’s about business, and when we have budgets and cost control; for visibility, we can take specific Marketing it’s about understanding actions to improve it. consumer behavior and life cycle Eric Wilson management; and for Logistics it is What are the main challenges in Thought Leader about resource planning and cost implementing effective demand at the Institute of Business optimisation. planning? Forecasting As with anything, it generally comes Given how valuable demand down to people, process, and tech - planning is, why do so many nology. Technology is becoming companies operate without it? increasingly affordable and more What is demand planning and why I would say that companies do user friendly. With training and is it important to exporters? not operate without it. Often, the education from organisations like Demand planning is the process problem is not that they do not the Institute of Business Forecasting of using forecasts to highlight have demand planning, rather every (IBF), you can learn and adapt best opportunities and threats to your function is doing their own version practices and processes. Despite business. It tells us what the likely of it and operating off their own the advancements in technology sales of a product are and which version of what the future may look with AI and machine learning now markets or channels of distribution like. Formalising and developing being adopted by Demand Plan - are likely to expand or contract. a structured demand planning ners, the biggest challenge is the Understanding what sales we will function or capability allows every - people element. There’s a growing make in the future, what volume one to operate according to the demand for talent and a shrinking and where it may occur not only same version of the truth. That workforce, and a challenge in getting helps exporters plan their resources provides an enormous competitive companies on board with the new more efficiently, but also adds advantage. data-driven, analytics powered visibility to potential risks and approach to demand planning. opportunities. We now live in the age of Big Data. What does that mean for exporters? Volatility and uncertainty are now How does demand planning Instead of just streams of data, the norm for exporters, what is benefit a company? we now have an ocean of data the reason behind this? Many people think of demand available to us. This presents a Volatility and uncertainty are not planning as ‘how many of some - significant upside for exporters who only the norm for exporters but thing we will sell next week. That is rely on many moving parts moving for business in general. Life cycles part of it, but the real benefits lie in together. We can use Big Data to and the lifespan of products are u

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Interview

getting shorter and shorter. racy comes from an independent tions about what will or might Customisation and the number of function. If you are just getting occur. You can collect data on different items is increasing. Lead started, I recommend that wherever almost anything now and make times to the consumers are going the greatest advocate for demand inferences about your particular from days to hours, and focus on planning inside the organisation product. With these insights you the final mile is even greater, adding resides is the best place to start. can empower advanced yet more uncertainty. The ever-in - decision-making. creasing globalisation of the economy There's a lot of talk about predictive only means more complexity. analytics and how it can identify How does predictive analytics risks and opportunities. Is the hype go beyond statistical forecasting? What steps can a company take real? Traditional forecasting uses only to create reliable forecasts? Predictive analytics is far from hype history to try to predict the future – There are many things that go into and is becoming a necessity for predictive analytics may use that a reliable forecast and lots of ways business planning. If supply chains along with Big Data and other to answer this question. This is want to become more agile and variables to predict what, and where organisations such as the survive in the fast-paced omnichannel crucially, why something will occur. Institute of Business Forecasting world, predictive analytics is a must. Predictive analytics generally does (IBF) help with establishing princi - When done right, it means we can a better job at forecasting. ples and best practices that go into react fast enough to keep up with effective forecasting, from data consumer demand by identifying What kind of skills should we look gathering and modeling to com - threats and opportunities before for when hiring demand planners municating the forecast to key they happen. and forecasters? stakeholders and tracking forecast Ideally, you want somebody with performance. What insights does predictive complex analytics skills, under - analytics provide? stands business and processes, and For companies looking to implement Predictive analytics is currently is able to communicate effectively forecasting and planning, which being utilised to help identify to all stakeholders. But these department should take the lead? potential maintenance to avoid people are extremely rare. Instead There is no one answer to this downtime or failures, and to of looking for the person that can question, and we have seen good maximise inbound and outbound do it all, I look for people with some forecasting functions within Opera - logistics by identifying current and of those skills along with the most tions, Supply Chain, Finance and even future bottlenecks. The main important ingredient - learning even Sales. Research from the IBF thing predictive analytics does, agility. n shows that the best forecast accu - however, is to help answer ques -

This interview was conducted by Andrew Scuoler, Managing Editor at the Institute of Business Forecasting

www.export.org.uk : @ioexport : 63 World Trade Matters

Legal Focus

Terms and Conditions: the Secret Ingredient to Success in International Trade Embarking on international trade offers abundant opportunities and challenges for businesses. This is especially so for the current environment, where developments such as Brexit will present a unique set of pitfalls for trade.

Elizabeth Ward Gemma Wilson Dr. Martin Douglas Hendry Founder and principal Trainee solicitor Digital marketing manager of Virtuoso Legal Virtuoso Legal Virtuoso Legal

Depending on your knowledge of be undertaken between you. part-paid for upfront by the buyer. them, new markets can be rife with This reduces risk for a producer unknown quantities such as what A finely considered set of T&Cs will who is manufacturing specific the local legislation requires and allow you to determine from the goods for sales overseas as the what hoops need to be cleared to outset of any agreement exactly manufacturing costs are at least have goods and services accepted how business between the parties covered by the upfront payment. into a new market. Whether it is is going to be conducted. building new relationships, dealing Your terms should cover all aspects with local customs agents or local If you view T&Cs as merely a formality, of payment such as whether irrevo - traders, the legal aspects of interna - or a standard template and of no cable letters of credit are required, tional trade cannot be overstated. particular value, then you may find what percentage deposit is As always, preparation is central to yourself having to comply with less required, and what triggers the success and a comprehensive set than favourable terms. release of any balance of payment. of terms upon which you trade can Other important terms would be the key to successfully traversing Ensuring you get paid include things such as who checks such unknowns. The biggest fear for traders interna - the goods on arrival and what sign tionally is that of not being paid, or off procedures there are. The Secret to Success only being part-paid, or goods and services being rejected and then Limiting Liability Do Business Your Way not receiving payment. Terms and conditions function as A steady ship is always the prefer - an important declaration of whom ence. A good set of terms and A good set of terms will set out is responsible for what; and, conditions of business allow you precisely how payment is to arise. crucially, who is liable legally (and to establish with any and all con - For example, as above, it can deter - financially) should negative out - tracted parties how business will mine that goods and services are comes arise. u

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Legal Focus

By way of example, if goods arrive at a destination and part of them are spoilt, the terms should cover things such as who checks the state of the goods, and how missing or spoilt items are accounted for. If half the shipment is missing, who will claim on the insurance or alternatively if goods have to go into storage at the port, who will pay for such storage.

Well drafted terms and conditions should also allow you to establish often referred to as a “battle of the can be a major investment in the legal jurisdiction in which any forms”. reducing the risk of financial and legal proceedings (by either party) legal exposure and loss. should be commenced or ensure Whilst it seems terse to seek it, an that the same is resolved through advantage can be achieved over a As a general consideration, if you alternative dispute resolution (ADR). business partner by ensuring that are exporting goods over the value In each case, clauses such as these your T&Cs are more comprehen - of £20,000 at any one time or to can allow you to avoid the cost and sive than those of the other side, any one customer, you should be confusion of defending in foreign and do not include onerous clauses investing in a fully compliant and courts. or overly complicated legal jargon. tailored set of terms. If drafted by an expert with this in These, of course, can be used Terms and conditions as we refer mind, you may ensure that arrange - multiple times and in more than to them here can be and frequently ments are entered into under your one country for export, making are incorporated into contracts terms and conditions. This not only the investment of a few thousand such as distribution agreements or establishes transparency, fairness pounds to create them moot manufacturing agreements. The and uniformity but confirms to your compared to the risk they will way we normally work with clients new business partner that you are a protect you from. is to walk them through a set of trading force to be taken seriously. heads of terms to create a wish list This creates a proactive stance for Prevention is better than cure any of important issues. These can then your business within any new day of the week – and the losses be used to negotiate an agreement commercial relationship – allowing aren’t just financial. An international or alternatively used to draft a you to operate your business and trade dispute will cost you and bespoke set of terms to use. engage with your partner in your management team countless accordance with familiar terms. sleepless nights, travel and lost Winning the “Battle of the Forms” time growing in overseas market. Every business worth dealing with Conclusion has a set of terms and conditions. Ultimately, a well drafted set of Remember: think carefully through This can lead to conflict as a buyer terms and conditions is a business- the issues first and then consult an tries to impose their set of T&Cs critical document. Terms that are expert in international trade agree - over and above the sellers. This is bespoke and reflect how you trade ments. n

Elizabeth Ward - Elizabeth Ward is the founder and principal of Virtuoso Legal the UK's leading intellectual property specialist law firm. Liz founded the firm in 2007 and has overseen its growth into a world-wide force in IP commercialisation and litigation. Gemma Wilson - Gemma is a trainee solicitor who works alongside vice-principal Kirsten Toft in the firm's commercialisation department - tailoring and drafting agreements for Virtuoso Legal's clients base. Dr. Martin Douglas Hendry - Martin is Virtuoso Legal's digital marketing manager. He has a background in design, and closely reviews and researches the latest issues in IP to identify the important themes for the firm's clients.

www.export.org.uk : @ioexport : 65 World Trade Matters

Ts & Cs

New international T&Cs launched to help UK businesses export confidently and successfully Too many businesses are entering international trade without proper contracts and are therefore taking unnecessary and potentially costly risks. Slow payments, legal issues, dashed “I urge all UK companies that are Covering four types of export expectations and disenchantment currently selling overseas without with the exporting process are a proper contracts in place to take The international T&C templates result of businesses foregoing the a look at these templates and will be available to business need to establish terms and condi - implement the right one for them. members of the Institute of Export tions specific to their international Through our Export Strategy, DIT & International Trade. They will situation. has set out an offer for all cover four uses: businesses to ensure they are Many businesses pursue alternative able to make the most of the Distance (non-online) routes to dispute resolution to avoid global opportunities this presents.” • consumer goods services and needless litigation, but given English digital content terms and law has a tendency to fuel disputes Lesley Batchelor, Director General conditions by omitting the options of mediation of the Institute of Export & and arbitration, these approaches International Trade, said: “We can't Online business and consumer are damaging UK businesses’ long- change the culture of business • goods services term relationships with international overnight, but I believe that by customers and partners. offering template International Terms and conditions for the T&Cs for SMEs, relevant to the • supply of goods The Institute of Export & International different styles of business they Trade – following consultation with operate in, we can begin to protect Terms and conditions for the its members, government, banks them from some of this risks of • supply of services and financial institutions – is international trade, enabling them delighted to launch four new inter - to export successfully and sensibly.” Each of the templates also include national T&C templates to allow Anti-Slavery and Bribery Act clauses, businesses to export confidently, Elizabeth Ward, Principal of Virtuoso allowing businesses to trade with safe in the knowledge that they Legal, who worked on the templates peace of mind. n have a legal framework specific with the Institute, said: “A finely to their international needs. considered set of T&Cs allows a business to determine from the John Mahon, Director General outset of any agreement exactly for Exports in the Department for how business between the parties International Trade said: is going to be conducted. They provide clarity on: the agreed “A crucial part of exporting is having processes for getting paid, where the legal frameworks in place that liability lies, and what happens allow businesses to trade confi - when disagreements arise. dently. I’m delighted that the Insti - tute of Export & International Trade “These templates are a great start has launched these templates as for businesses, helping to give them part of a package of solutions on a basis upon which they can export offer to help businesses export. confidently.”

66 : Membership : Training : Qualifications : Advice Market Profile: Doing Business in Ukraine

kraine iness in U Doing Bus

Ukraine overview

t iv Skyline d, and Ky lsky Islan iver, Ryba Dnieper R The UK is the fourth largest investor in Ukraine, after Cyprus,

ide.co.uk usinessGu Netherlands and Russia (as of 2017). There are over 150 well- ingB obile App ine.Do the free M .Ukra download www ebsite and Visit the W ED BY: SUPPORT established UK companies in Ukraine, with many more

ED BY: SUPPORT brands present. Major UK companies in the market include BP, Shell, GSK, AstraZeneca, BAT, Imperial Tobacco, Mott MacDonald, Crown Agents, Next, and Marks & Spencer.

Ukraine has significant economic Ukraine is a large country, and different Download the potential as a result of its strategic regions will have different industry free Mobile App location connecting Europe, Russia clusters. Good local research is and Asian markets, a well-educated needed and you should consider labour force, its large domestic regional plans and market-entry market, and access to a variety requirements using both desk of resources, including some of research and market visits. Talking Europe’s best agricultural land, to other people in your industry and significant coal and some oil and regularly visiting Ukraine will give you gas reserves. access to the most-current advice and such experience can often lead Despite the current difficult political to new insights and form the basis and economic climate, Ukraine for further research. continues to offer opportunities in a broad range of sectors. Many of these involve co-operation with Ukrainian companies and authorities, and require Western financial investment.

www.export.org.uk : @ioexport : 67 Market Profile: Doing Business in Ukraine

Judith Gough CMG, Her Majesty's Ambassador to Ukraine

The IOE&IT is working with the British Government to help companies find new business opportunities globally and we look forward to helping you navigate the Ukrain - ian market successfully.

Ukraine has been designated one of the priority markets for the UK Government after we leave the European Union, reflecting its strategic importance in UK foreign policy and position as the largest emerging market in Europe. Despite the impact of Russia's illegal annexation of Crimea and the conflict in the east of the country, the Ukrainian economy shows encouraging signs of recovery. The country has a strong base of natural resources including oil and gas, coal and potential for renewable energy. There is a broad, if ageing, industrial base which includes much of the former USSR's space and rocket industry and a well-developed defence and security industry. The deterioration in relations with Russia means that Ukraine is now looking to replace Russian systems and components with Western technology, opening up commercial opportunities for the UK. The nuclear sector is another area of importance, offering a valuable and long-term market. Meanwhile, Ukraine ranks among the leading agricultural producers worldwide and there are ambitious plans to develop this sector. The full potential will only be realised through modernisation and innovation in machinery, storage and processing facilities, again providing excellent prospects for UK technology and expertise. Ukraine also offers a highly educated and capable workforce, particularly in the IT sector, which continues to grow.

Please get in touch and ask how we can help.

Judith Gough CMG Her Majesty's Ambassador to Ukraine [email protected]

68 : Membership : Training : Qualifications : Advice Advice from our Technical Helpline

The Institute of Export & International Trade's 'Export Helpline' provides help for any international trade query, including documentation, export controls, customs & VAT procedures, payment terms, Incoterms, and much more. Members of the IOE&IT can access the helpline for free.

While exporting to Ukraine the following general requirements apply

Customs Import Declaration/Mytna is not submitted, the Commercial Invoice Bill of Lading/ Konosament Deklaratsiya is to bear the seal of the foreign manufac - It is to be prepared by the carrier or his This is the official form for the customs turer or the exporter agent as a clean or unclean Bill of Lading. clearance of the goods and is required Usually issued in English. for customs clearance if the value of the Pro Forma Invoice/Rahunok-proforma goods is above 150 EUR. The Pro Forma Invoice usually contains Three full sets of the Bill of Lading are the same information as the final Com - usually issued, each containing an original The Customs Import Declaration is to be mercial Invoice, but may be more concise. and several copies. completed by the importer or his autho - Additional details made known only in rised representative in Ukrainian. Usually the course of the shipment or after Rail Waybill Conforming to Both COTIF and to be submitted to the customs office accomplishing certain application proce - SMGS Agreements/ Nakladna CIM/SMGS of entry in the original along with three dures will be included in the Commercial This document is required for customs copies and an electronic version within Invoice. No specific form is required. clearance and is to be prepared by the 10 days after the arrival of the goods. carrier or his agent. It is to be submitted in The declaration may also be submitted Packing List/Pakuvalniy List six copies. electronically via the Unified Automated The Packing List is to be prepared by the Information System. exporter in English, however, translation The descriptions of the boxes on the into Ukrainian or Russian may also be consignment note will be in Russian or in Declaration of Dutiable Value/ Deklaratsiya required. English, French or German. The language mytnoyi vartosti (DMV) used for information entered in to the The declaration is required for customs To be submitted in triplicate. note itself depends on the purpose of the clearance if the value of the goods is information and who is to use it. above 5,000 EUR. To be completed by Certificate of Non-Preferential Origin/ the importer or authorised customs Sertyfikat pohodženni Ukraine is a member of the SMGS con - broker in Ukrainian. The certificate is to be submitted in vention. Thus, depending on the place of duplicate by the exporter. dispatch, the SMGS Rail Waybill will be The declaration is to be submitted in the used instead of the common consignment original. An electronic version must also It is required for various types of goods note if the transport route does not pass be provided. A second copy, bearing the such as raw cane sugar, ethyl alcohol, member states of the CIM convention. official mark of the customs office of alcoholic beverages and tobacco entry, may be submitted which will be products or if the Commercial Invoice Waybill/ Avtomobil'na nakladna returned to the importer. has not been sealed by the manufacturer This document is required for customs or exporter. It may also be required if clearance and is to be prepared by the There are two types of declarations that specifically requested by the importer or carrier or his agent. It is to be submitted in are to be applied depending on the the authorities. quadruplicate and signed by the con - method to establish the customs value of signor and the carrier. goods, which DMV-1 and DMV-2 Proof of Preferential Origin The Proof of Preferential Origin is only Usually issued in bilingual or multilingual Commercial Invoice/ Rahunok-faktura required if preferential treatment under a form. It is advisable to use a version con - This invoice may be required for customs free trade agreement or arrangement is taining all relevant information in English, clearance as a document confirming claimed. It is to be submitted by the or to enclose a translation into English. the value of the imported goods. To be exporter. Usually, one Waybill covers the goods submitted in duplicate. loaded in each vehicle. A Proof of Preferential Origin may replace It may be prepared in any language, but a Certificate of Non-Preferential Origin, Commercial Registration it is recommendable to prepare the subject to acceptance by the customs This is a document confirming that a document in English. A translation into authorities in the country of import. company intending to conduct business Ukrainian may be required. The importer activities in Ukraine is registered with the may present other documents which Air Waybill/ Aviacijna vantažna nakladna Unified State Register of Legal Entities, confirm the declared value of the goods It is to be prepared by the carrier or his Individual Entrepreneurs and Public to be imported instead of, or in addition agent. Usually issued in English. The Air Organisations. It is required for company to, the Commercial Invoice. Waybill consists of a set of forms, three establishment and market access. of which are originals and the rest are The application is to be completed in If a Certificate of Non-Preferential Origin copies. Ukrainian. To be submitted in duplicate.

The information is derived from the European Commission's Market Access Database with courtesy of the data provider and copyright holder Mendel Verlag GmbH & Co. KG. Any kind of further reproduction requires prior written consent of Mendel.

www.Ukraine.DoingBusinessGuide.co.uk : 69 Economic overview

Geography With an area of 603,628 km² and a coastline of almost 2,800 km on the Black Sea to the south, the eastern European country of Ukraine is the largest country wholly in Europe. It shares a border with Belarus, Hungary, Moldova, Poland, Romania, Russia and Slovakia.

General overview well-developed defence and security producing cast iron, steel and steel Ukraine has a broad (if ageing) sector. pipe, and its chemical industry industrial base which is strong in produces coke, mineral fertilisers, ferrous metals and chemicals. This The EU accounts for about 40% of and sulphuric acid. includes much of the former Union Ukraine’s trade, while CIS countries of Soviet Socialist Republic’s (USSR) account for about 20%. Ukraine has [Source – EU accounts 2017, Ukrainian space and rocket industry and a a major ferrous metal industry, Embassy London]

Benefits of Ukraine market for UK businesses

Benefits for UK businesses exporting to Ukraine include: • starting to harmonise with European Union (EU) regulations • large developed consumer market • free trade agreement signed with the EU • £500 million+ market for UK exports • strategic location at the crossroads of European, • six cities with a population of at least 1 million Russian and Asian markets [Source – DIT/gov.uk]

Sector-specific opportunities this market and it offers a wide of modern information and range of opportunities. communications technology • Agriculture sector – Agriculture is (ICT) for education. There is also the lead export sector in Ukraine. • Education sector – Ukrainian an increased focus on the quality There are a number of UK Government reforms include of English language training. companies already operating in pilot projects on enhanced use

MARKET EXPERTS

70 : Membership : Training : Qualifications : Advice • Energy sector – Ukraine has a • Security and defence sector – Personal contacts are extremely broad base of natural resources There are opportunities for UK important and if after initial including oil and gas, coal and companies to supply a range of correspondence, you feel that renewables potential. non-lethal defence products. your partner is interested, we highly There is also potential business in recommend a visit to the market. • Infrastructure sector – Opportu- supplying cyber security. Any important issues should be nities in the infrastructure sector discussed face-to-face. are linked to donor financing. [Source – DIT/gov.uk] The EBRD has channelled funds Ukrainians are hospitable and into the infrastructure sector with Business etiquette, language business meetings/negotiations can investment in road rehabilitation & culture be quite extended. There is also a projects, municipal utilities as chance that natural hospitality well as port improvements. Ukrainian is the national language in overshadows the overall business the whole of the country, although purpose. • Retail/luxury goods/e-commerce Russian is widespread. Knowledge of sector - Many British retail brands English varies and generally depends are already present in Ukraine on the generation and industry. and there is potential for more. Ukraine’s well-developed delivery For initial correspondence we networks and the EUR 150 duty- recommend writing in Ukrainian free import allowance for individual or in Russian to ensure a higher customers opens up new oppor- response rate. Sending thank you tunities for e-commerce exports. letters or acknowledging nil interest is not common, therefore please do not be discouraged but pursue your enquiry.

For more information go to the Doing Business in Ukraine Guide website at: www.Ukraine.doingbusinessguide.co.uk or to request a copy of the guide email: [email protected]

www.Ukraine.DoingBusinessGuide.co.uk : 71 Quick facts

Location: Eastern Europe, bordering the Black Sea, between Poland, Romania, and Moldova in the west and Russia in the east

Area: 603,628 km 2

Population: 44.8 million (World Bank 2017)

Urban population: 69.9%

Capital city: Kyiv

GDP per capita: US $2,639 (World Bank 2017)

Languages: Ukrainian (official) 67.5%, Russian (regional language) 29.6%, other (includes small Crimean Tatar, Moldovan/Romanian, and Hungarian-speaking minorities) 2.9% (2001 est.)

Religions: Orthodox (includes Ukrainian Autocephalous Orthodox (UAOC), Ukrainian Orthodox - Kyiv Patriarchate (UOC-KP), Ukrainian Orthodox - Moscow Patriarchate (UOC-MP), Ukrainian Greek Catholic, Roman Catholic, Protestant, Muslim, Jewish (2013 est.)

Government type: semi-presidential republic

Legal system: civil law system; judicial review of legislative acts

Currency: Ukrainian Hryvnia

Climate: temperate continental; Mediterranean only on the southern Crimean coast; precipitation dispro- portionately distributed, highest in west and north, lesser in east and southeast; winters vary from cool along the Black Sea to cold farther inland; warm summers across the greater part of the country, hot in the south

Natural resources: iron ore, coal, manganese, natural gas, oil, salt, sulphur, graphite, titanium, magnesium, kaolin, nickel, mercury, timber, arable land

Natural hazards: occasional floods; occasional droughts

Time difference: UTC+2

Internet country code: .ua

National holidays: Independence Day, 24 August (1991)

National symbols: tryzub (trident); national colours: blue, yellow

[Source: FCO Economics Unit, CIA World Factbook (August 2018)] The Professional Journal from the IOE&IT

Student Interviews

Manjit Thethi International Licensing Analyst Sr, Trade Compliance Lockheed Martin UK Ampthill Ltd

What are you studying and why did I have enjoyed carrying out the business to continue to improve you choose to take the course? research and piecing it all together compliance in these areas. between lots of the agreements I am studying a Level 5 Diploma and legislation, but more importantly What’s next and how is the course in World Customs Regulations and expressing my opinion on certain contributing towards your career? Compliance. The course was case studies presented and analysing recommended by my management whether they would work for the After completion of the course it’s a as part of my personal develop - business or not. case of taking a well-earned break ment and I took up the opportunity but I would like to take up another immediately. I’ve worked within the I have a young family and admit it is qualification in a related area import/export arena for almost 19 challenging to find the time to study. because it would further benefit years, mostly in export controls, but I mostly find myself fitting my my career development. There are I needed to broaden my knowledge studies in either very early in the other areas that are impacted by and skills specifically in customs morning or very late in the evening. international trade and it’s important formalities – especially with the My family are very supportive, to understand their functions too. challenges the UK faces with Brexit, which has allowed me to find the meaning an impact on UK industry time to study a subject I am most What tips would you give other exports and imports, as opposed to passionate about. Each of the people studying with the IOE&IT? the reliance on EU standards and modules covers all the important harmonisation. aspects of international trade that There is a lot of help and advice are relevant to my role and, from the IOE&IT and from the As an employee of Lockheed Martin although I have yet to complete tutors. Students are able to request UK Ampthill (part of the wider the course, it has already made an support through the new Canvas Lockheed Martin Corporation), I impact on how I undertake my role. system. I would say make every reinforce the business proven effort to dial in into the tutorials and competence to export and import Has the course enabled you to lessons because this gives the and encourage wider industry to contribute more to the company opportunity to ask questions and recognise the benefits that are to you work for? receive answers to any queries. be had from international trade. The interim assignments should not Lockheed Martin’s value of ‘Do Most definitely. It has also increased be ignored so make every effort to What’s Right’ has enabled me to my confidence in answering submit at least one because the further that notion and I am proud questions and briefing the teams. tutor is able to provide constructive to promote Lockheed Martin’s Although I am someone who has feedback. Receiving feedback is acumen and professionalism been described as being technical, invaluable and using it would put through this opportunity with the I can always refer to a piece of the students in a good position to sub - IOE&IT. legislation that gives comfort to my mit an excellent Final Assessment. colleagues of my experience and Finally, finding the time to study How are you finding the course? knowledge as a result from study - should not be underestimated. ing. Analysing specific areas and There is a lot of material to read I am really enjoying studying the making recommendations and so have a plan and stick to it. n Diploma. It’s been an incredibly improvements with the purpose of rewarding experience and one that achieving better compliance for the I would highly recommend to business is what I continue to strive those working in international trade for. Once I complete the course, and who are looking to grow and I have plans to support the wider take the next step in their career. team, to carry out training to the

www.export.org.uk : @ioexport : 73 & INTERNATIONAL TRADE

www.export.org.uk @ioexport

Choosing a great export training partner can really help your company take off in international trade! We can help develop new ideas and find ways to drive down costs and produce sustainable improvements in your export business. Our team of experts can help with questions on documentation, export controls, Bribery Act, Customs & VAT procedures, regulatory and compliance issues, insurance issues, payment terms, transport and logistics...

Join us today

Membership : Training : Qualifications : Advice

Call: +44 (0) 1733 404 400 : email: [email protected] The Professional Journal from the IOE&IT

Student Interviews

Gi Chikola

be, was lacking, so I chose to path that I am passionate about and pursue a programme with IOE&IT, I feel immensely positive about my as the only reputable institution I career progression and employabil - am aware of within the international ity prospects. The IOE&IT’s interna - trade arena. tional trade course has shaped and refined the exact direction of my How are you finding the course? future jobs or possibly even further studies. The course so far has provided some interesting challenges and is What tips would you give to other definitely stretching my professional people studying with the IOE&IT? knowledge. I have been fortunate enough to be taught and tutored Arguably, the key thing which has by extremely qualified individuals worked for me is to try to submit all who are widely experienced in their the ungraded module assignments capacities within the international to my tutors for more personal trade industry and consequently the feedback. I suggest that this will programme has been more exciting help you as a student not only for than I expected. the purpose of your final assess - ment, but also to improve your Has the course enabled you to writing style into a more professional What are you studying and why contribute more to the company one. did you choose to take the course? you work for? Make sure you plan your spare time I am due to submit my final assess - The course has, without a doubt, well in advance to attend tutorial ment – for the Professional diploma helped me to acquire, understand lecturers and calls on the Canvas, it level 5 in International Trade – by and fully develop practical and is very important. This will help you mid-January next year (2019). critical key elements of international to fully understand your module in trade operations. At the end of my detail, giving you the opportunity to After successfully completing my studies, I feel confident that I will ask questions directly to your tutor graduate studies in Management be fully prepared to work within and know what is expected of you. Practice – International Trade with and significantly contribute to any Plymouth University, and being businesses or organisations that Getting involved in IOE&IT webinars awarded with a certificate for the are involved in international trade, from different platforms also helps best student within the programme, logistics, procurement or other you to be well informed and I was still confronted by the inner general business dealings. I am updated. This will put you in a live desire to broaden and translate my not in work in this industry at position where you will know the theoretical academic knowledge present, so look forward to the new most current activities and practices of international trade practices, opportunities the qualification will in international trade. regulations and functionalities in bring for me in my desired field. a realistic and more practical way. Finally, be serious, focused, deter - What's next and how is the course mined and in control of your time. I knew that I had acquired an in- contributing towards your career? n depth knowledge and understand - ing of international trade, but my My ideal next step would be a job appreciation of how complex, within the IOE&IT! The course has practical real industrial work can undoubtedly set me on a career

www.export.org.uk : @ioexport : 75 World Trade Matters

Student Interviews

Jade Forshaw

in, they were both active members What's next and how is the course of the IOE&IT and they made me contributing towards your career? aware that the IOE&IT offered courses that may help me gain I believe the course has helped me entry to such roles. when applying for roles as it shows that I am interested in the subject How are you finding the course? matter and have a passion to gain further knowledge and experience. I think the courses are incredibly It also proves to the employer that well structured, I can imagine even you are not afraid of further Forshaw Compliance more so if you have never worked education and improvement, which Solutions Ltd in a logistics-based industry before. is essential when working in inter - The reading material is clear and national trade. International Trade concise and there are regular Compliance Consultancy calls with tutors and even peers I am constantly looking to further if required. The assessments are educate myself so once this course Currently working for clearly outlined with appropriate is completed, I will be back speak - AS Watson Health and Beauty UK ltd, who own marking guidelines to aid you in ing to the IOE&IT about what other both Superdrug Plc and deciding which parts of the assess - courses I may be able to do, having Savers Ltd. ment require the most focus when a masters in a subject I am so pas - it comes to the detail and number sionate about would be a great of words. The online portal makes achievement. everything easier and you can al - ways get in touch with someone What tips would you give to other What are you studying and why did directly at the Institute if you have people studying with the IOE&IT? you choose to take the course? any questions. I would suggest utilising all the I began with the Advanced Certifi - Has the course enabled you to available tools, from the portal and cate in International Trade (ACIT) contribute more to the company reading material, the referencing and am now completing my last you work for? guidance, and more importantly the module for the Diploma in Interna - tutor calls and peer to peer forums. tional Trade (DIT). As I already work in the industry, These courses give you the oppor - I was pleased to realise that most tunity to speak to other students After working in logistics for several of the coursework was in line with and more importantly other people years I realised, unlike most people, what we were already looking at. working within some aspect of I enjoyed the more complicated I would say that it has really im - international trade. It enables you side of import and export and proved the way in which I have to gain invaluable knowledge and licensing. After putting myself communicated the projects and points of view that you would not through some courses held by ongoing work to the business and otherwise have access too. n the local chamber of commerce helped me structure those conver - for basic import and export skills, sations in a way that the general I began to understand that interna - business understands, which can tional trade is a niche job industry. be a challenge as international During the training I was introduced trade is a complex subject and to two trainers who work in exactly even more so to those who are the industry I had become interested not familiar with it.

76 : Membership : Training : Qualifications : Advice Market Profile: Doing Business in Qatar

atar iness in Q Doing Bus

re City Cent and Doha West Bay Skyline of

de.co.uk sinessGui ngBu obile App r.Doi the free M .Qata download www ebsite and Visit the W Qatar overview

ED BY: SUPPORT

ED BY: SUPPORT Qatar is a small independent sovereign state in the Mid - dle East and is one of the six members of the Gulf Co - operation Council (GCC). It is a relatively small country, but one of the richest in the world with a very high gross domestic product (GDP) per head. This affluent Download the market with its growing population offers opportunities free Mobile App for UK businesses across a wide range of sectors.

It has significant oil and gas reserves, of around £140 billion to deliver and energy production per head its 2030 Qatar National Vision dwarfs the other Gulf countries. As (focused on economic, social, oil prices can and do fluctuate, the human and environmental government is using the revenue development) and the 2022 FIFA generated to diversify its economy. World Cup.

Qatar has transformed itself over The government is implementing the past two decades from a reforms to tackle public spending relatively unknown Gulf State to and diversify the economy away a prominent player on the world from oil and gas, including through stage. Exploiting its significant oil promoting the role of the private and gas reserves, it has embarked sector and SMEs. on one of the largest and most ambitious infrastructure programmes in the world with projected spend

www.Qatar.DoingBusinessGuide.co.uk : 77 Market Profile: Doing Business in Qatar

The British Ambassador to Qatar, Ajay Sharma CMG

Around 25,000 British nationals live in Qatar, and approximately 130,000 visit annually. English is widely spoken and there are strong UK-Qatar cultural and historical ties as many Qataris have studied in the UK, have UK homes and visit regularly. This affluent market with its growing population and dynamic economy offers significant opportunities for UK businesses across a wide range of sectors. My team from the Department for International Trade, would be pleased to support you in doing business here, and invite those who have not considered Qatar yet, to take a closer look.

I very much look forward to seeing more British companies being successful here in Qatar. Qatar is a relatively small country, but one of the richest in the world with a very high gross domestic Ajay Sharma CMG product (GDP) per head. It has transformed itself over British Ambassador to Qatar the past two decades to a prominent player on the https://www.gov.uk/world/organisations/british-embassy-doha world stage. Exploiting its significant oil and gas reserves, it has embarked on one of the largest and most ambitious infrastructure programmes in the world to deliver its 2030 Qatar National Vision and the 2022 FIFA World Cup.

78 : Membership : Training : Qualifications : Advice Advice from our Technical Helpline

The Institute of Export & International Trade's 'Export Helpline' provides help for any international trade query, including documentation, export controls, customs & VAT procedures, payment terms, Incoterms, and much more. Members of the IOE&IT can access the helpline for free.

While exporting to Qatar the following general requirements apply Ship Pre-Arrival Notification Report Pro Forma Invoice If goods are shipped by sea without a The notification report is to be handed This document is a prerequisite for the document of title to goods, a Sea in by the carrier or his agent to the entitled Permit to Import Narcotic Drugs Waybill is used instead. authorities of the port of arrival at least and Intoxicating Products for Medical 48 hours prior to the estimated time Purposes, but may also be required by Insurance Certificate of arrival. The report may also be the importer or competent authorities. This certificate is to be prepared by the submitted by fax or electronically. It It usually contains the same information insurance company of the exporter or is to be completed in English and as the final Commercial Invoice, but the importer. To be issued in English or submitted in the original. may be more concise. Arabic. The certificate is to be submitted in the original. Master's Report Packing List The report is to be handed in by the It is usually prepared by the exporter in Delivery Order master of the ship or his agent to the re - English or Arabic. It is advisable to enclose This document containing the formal sponsible pilot at the port upon arrival of the Commercial Invoice number in the obligation of its issuer to deliver the the ship. To be completed in English Packing List. The customs authorities in denominated parts of the shipment to and submitted in the original. Qatar may waive the requirement of a its bearer is required for the customs Packing List if they deem the documen - clearance. It is to be issued by the bearer Manifest tation to be sufficient for customs clearance. of the corresponding freight. The The document is to be prepared by the document is usually issued in English carrier or his agent in Arabic or English Certificate of Non-Preferential Origin and is to be submitted in the original. and submitted in the original upon the This certificate is required for the customs arrival of the aircraft at the customs of - clearance of all kinds of goods and is to Customs Code fice of entry. In case of sea transport, the be submitted by the exporter in the original. This document certifies that its bearer document is to be submitted within 63 is entitled to conduct activities with the hours from the time the ship enters the The certificates are usually issued by the customs authorities in Qatar. The code port. chambers of commerce. If applicable, is to be applied for by the importer at the declaration on the reverse side is to the Ministry of Finance. Alternatively, web-based electronic be certified by the chamber of com - manifest processing is enabled through merce or any other appropriate author - To be completed in Arabic and submit - the Qatar Clearance Single Window ity. Subsequently, the document is to be ted in the original. The period of validity known as Al Nadeeb electronic system. legalised by the Qatari Embassy in the of the code is not limited as long as all country of export. details provided remain unchanged. Customs Import Declaration This document is to be completed by Proof of Preferential Origin Importer's Licence the importer in either Arabic or English Only required if preferential treatment This document proving that its bearer and is submitted in the original along under a free trade agreement or is entered into the register of importers with three carbon copies. arrangement is claimed. The Proof of and is authorised to carry out import Preferential Origin is to be submitted by procedures is required for customs Also, the web-based electronic customs the exporter. clearance and market access. declaration is enabled through Al Nadeeb. Air Waybill The licence is to be applied for by the This document is to be prepared by the importer or his representative at the Commercial Invoice carrier or his agent. It is usually issued in Ministry of Economy and Commerce. The invoice is to be prepared on an English. The Air Waybill consists of a set official company letterhead in Arabic or of forms, three of which are originals Commercial Registration English and submitted to the customs and the rest are copies. The document is required for customs authorities in the original. It also needs clearance and company establishment. to be certified by a chamber of com - Bill of Lading The period of validity is one year, after merce in the country of export. If there This document is to be prepared by the which it must be renewed. is no Qatari Embassy in said country, the carrier or his agent as a clean or unclean legalisation may alternatively be done Bill of Lading. Usually issued in English. The registration is to be applied for by by the Qatari Ministry of Foreign Affairs Three full sets of the Bill of Lading are the company representative or the indi - in Doha. usually issued, each containing an origi - vidual at the Ministry of Economy and nal and several copies. Commerce.

The information is derived from the European Commission's Market Access Database with courtesy of the data provider and copyright holder Mendel Verlag GmbH & Co. KG. Any kind of further reproduction requires prior written consent of Mendel.

www.Qatar.DoingBusinessGuide.co.uk : 79 Economic overview Geography Qatar is a small independent sovereign state in the Middle East and is one of the six members of the Gulf Cooper - ation Council (GCC), together with Saudi Arabia, Kuwait, the United Arab Emirates (UAE), Bahrain and Oman.

General overview and diversify the economy away efficiency of public spending. Qatar’s economy has been built on from oil and gas, including through exploiting its significant oil and gas promoting the role of the private Qatar is a market which requires reserves. It remains strong but has sector and SMEs. patience to develop the necessary been impacted by the falling oil contacts to successfully win business. price and the ongoing blockade by A main focus is on delivering infra - A long-term strategy is essential. some of its regional neighbours. structure projects for the 2022 FIFA The Government is implementing World Cup and 2030 National [Source – DIT/FCO Overseas Business reforms to tackle public spending Vision, as well as increasing the Risk/gov.uk]

Benefits for UK businesses • Hamad Port - Hamad Port is • English is widely spoken • it is expected to have the one of the world's largest highest real growth in the Gulf greenfield port developments. • there are strong UK-Qatar Cooperation Council Strategically located south of cultural and historical ties as Doha, the QAR 27 billion (US many Qataris have studied in [Source – DIT/gov.uk] $7.4 billion) megaproject, which the UK, have UK homes and visit includes a new port, a new base regularly Benefits for UK businesses for the Qatar Emiri Naval Forces and the Qatar Economic Zone • there is considerable capital • 2022 FIFA World Cup - Qatar’s 3, will span a 26.5 km2 area. spending by the Qatari successful bid for the FIFA Government on education, World Cup is the Middle East’s • Doha Metro – The new Doha healthcare, infrastructure and first major global sporting Metro system will be built in two transportation tournament. phases – the first will see the

MARKET EXPERTS

80 : Membership : Training : Qualifications : Advice construction of three of the four Business etiquette, language & You will need introductions to lines (Red, Gold and Green) and culture develop your business in this 37 stations. These lines are market. You must take time to get expected to be open to the The key to success in the Qatari to know your contacts through public by 2020. The future market hinges on the relationships face-to-face meetings. phases involve the introduction and trust UK companies can build of an additional line. with contacts in the marketplace. It is an old fashioned business culture • Lusail Rail – Lusail City, designed where personal relationships matter to be an environmental and far more than other pure commercial self-sustaining community, the considerations. city will have residential and commercial developments English is widely spoken but it is including schools, medical mandatory for businesses in Qatar facilities, shopping centres and to use Arabic as the main language more. The Lusail Tram network for issuing invoices, service lists, will serve the residents of the product labels and customer city by providing an environ- services. mentally-friendly mode of transportation. When in Qatar you should dress modestly in public. [Source – DIT/gov.uk/Hamad Port Project/Qatar Rail]

For more information go to the Doing Business in Qatar Guide website at: www.Qatar .doingbusinessguide.co.uk or to request a copy of the guide email: [email protected]

www.Qatar .DoingBusinessGuide.co.uk : 81 www.export.org.uk @ioexport

Choosing a great export training partner can really help your company take off in the export trade! We can help develop new ideas and find ways to drive down costs and produce sustainable improvements in your export business. Join us today

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Call: +44 (0) 1733 404 400 : email: [email protected] Quick facts

Location: Middle East, peninsula bordering the Persian Gulf and Saudi Arabia

Area: 11,580 km 2

Population: 2.7 million

Urban population: 99.1%

Capital city: Doha

GDP per capita (Oct 2018): US $61,024.8

Languages: Arabic (official), English commonly used as a second language

Religions: Muslim 67.7%, Christian 13.8%, Hindu 13.8%, Buddhist 3.1%, folk religion <1%, Jewish <1%, other 0.7%, unaffiliated 0.9% (2010 est.)

Government type: absolute monarchy

Legal system: mixed legal system of civil law and Islamic law (in family and personal matters)

Currency: Qatari Riyal (QAR)

Climate: arid; mild, pleasant winters; very hot, humid summers

Natural resources: petroleum, natural gas, fish

Natural hazards: haze, dust storms, sandstorms common

Time difference: UTC+3

Internet country code: .qa

National holidays: National Day, 18 December (1878), anniversary of Al Thani family accession to the throne; Independence Day, 3 September (1971)

National symbols: a maroon field surmounted by a white serrated band with nine white points; national colours: maroon, white

[Source: FCO Economics Unit, CIA World Factbook (January 2019)] World Trade Matters

Queen’s Awards

The Institute Celebrates with the Queen's Award Winners in International Trade

The Institute of Export & International Trade held its annual dinner celebrating the winners in the International Trade category of the Queen’s Award for Enterprise. Hosted at The Inner Temple in London, the sold-out event had a genuine celebratory feel, with the attending companies and friends of the Institute keen to enjoy themselves, toasting to their successes.

The Queen’s Awards are one of the An Appropriately Glamorous mentioning some of the challenges most prestigious accolades that UK Showpiece Event ahead for UK businesses, especially businesses can earn. Winners for around Brexit. the International Trade category The three-course dinner, sponsored are required to demonstrate a by Bibby Financial Services, was Th e after-dinner spee ch came from substantial and sustained increase hosted at The Inner Temple in the Humphrey Hawksley, a BBC foreign in export earnings over three heart of London. The impressive corresp ondent and author. Drawing consecutive 12-month periods, to setting – located between the on his long career in broadcasting, a level which is outstanding for the Strand, Fleet Street and Embankment he reg aled many anecdotes about products and services concerned, – was appropriately glamorous for the various curious and spurious and for the size of the organisation. this showpiece event. people he has encountered around Each of the attending businesses – the world, highlighting the great who also earn a year’s free Director Gen eral o f the I nstit ute, v ariety of people you can expect membership with The Institute of Lesley Batc h elor O BE, welc om ed to co m e a cross whe n trading in

Export & International Trade – is the winne rs, toasti ng th e ir ac hi ev e - o verse a s m ark e ts. n an inspiration to other businesses ments and w el com ing th em in to looking to start exporting. Their the exporter community that With special thanks to our event commitment to international centres on man y of the Ins titute’s sponsor: growth and their innovation in activities. The Institute’s Chairman, doing so are an example for future Terry Scuoler CBE, also made a exporters to follow. few remarks before the dinner,

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Queen’s Awards

www.export.org.uk : @ioexport : 85 World Trade Matters

World Trade Summit

Report from the Coventry Summit

On November 21 the Institute of Export & International Trade hosted its final World Trade Summit in 2018 at the University of Warwick’s International Manufacturing Centre. Following the 2018 programme theme of ‘Roadmap to Export Success’ many of the presentations focused on giving practical advice to companies looking to expand their export horizons in 2019.

With the summit taking place amid the height of uncertainty around the direction of Brexit, there were plenty of caveats being issued as well, with a major learning being that the only certainty for the near future is further uncertainty. Speakers outlined potential ramifications of the different outcomes for Brexit at the time – including a ‘no deal’ Brexit – and also advised delegates to look beyond Europe to markets like the USA as a way of mitigating risk. u

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World Trade Summit

An opportunity for our members in international trade need to be is a key update to the technology to talk to each other aware of – taxation and insurance that is used to check goods moving being two of the most significant. over the UK border. As with all of our regional summits Ian McKinney (Gallagher) gave an in 2018, the speaker line-up mostly overview of some of the types of Finally, the Institute also updated consisted of the Institute’s members insurance that exporting businesses delegates on a new range of as our intention has been to create need to consider, including product training courses it will be delivering a platform for our members to talk liability, professional indemnity, and in 2019. about what they do and how they cargo. Laura Vanstone (SimplyVAT) help fellow exporters. The summits then gave an overview of the More to come in 2019 are also an opportunity for members cross-border VAT obligations that to engage directly with the Institute ecommerce sellers need to stay In 2019 the Institute will be on and our new Director of Special on top of. the road once more with summits Projects, Jen Latelese, was on hand scheduled to be taking place in to make the opening remarks. Incoterms were also a key topic for Southampton, Manchester, the Coventry Summit. Roger Kagan Scotland, Belfast, the South West, Jen outlined some of the key (Dangerous Goods Safety Advisers Oxford, London and the Midlands. activities undertaken by the Institute Ltd) warned delegates about the The theme for next year’s summits in 2018 – including its being dangers of assuming Ex Works will will be ‘Making the Case for recognised as a ‘Small Business operate smoothly for every move - International Trade’. n Champion’ by the World Trade ment of goods across borders. Organisation and International He also spoke of the need for Chamber of Commerce – while businesses to get advice when also outlining some of the potential moving goods that are potentially impacts of Brexit of our exporters. liable for controls and licenses.

Practical advice and tips for Support on hand for exporters entering the US market in the Midlands

Frank Levene (Avitus Group) and As ever there is plenty of support Gary Baylis (Export Access) spoke available for businesses looking to of some of the opportunities and start exporting from the midlands. challenges for businesses looking Jane Cooper outlined the support to sell into the USA. Frank gave an being provided by the government’s overview of the cultural differences export credit agency UK Export between the US and the UK and Finance, for instance, while Jim outlined the sheer scale of the David presented on the invoice US market; Gary looked at the financing solutions provided by regulatory requirements and Bibby Financial Services. hurdles involved. Both had also previously spoken at our Bristol Shakil Ahmed also updated summit in July. delegates on the key transition from CHIEF (Customs Handling The summits always cover a broad of Import & Export Freight) to CDS range of the various practical (Customs Declaration Service) elements that businesses involved being conducted by HMRC. This

www.export.org.uk : @ioexport : 87 World Trade Matters

Forward Look

Our latest round-up of recommended shows and exhibitions , as well as our training courses

February March Letters of Credit Introduction to Importing

20 February 2019 | Birmingham 05 March 2019 | Manchester ------Understanding Rules of Origin, Free Trade Advanced Importing

Agreements & Export Preference 05 February 2019 | Manchester, London 20 February | Manchester ------Open to Export Action Plan Competition Final Post Brexit Documentation and Compliance 06 March 2019 | London 22 February | London ------Post Brexit Planning Workshop Introduction to Importing Licensing Controls 06 March 2019 | Birmingham 26 February | Manchester ------Post Brexit Planning Workshop

South Coast World Trade Summit 12 March 2019 | London 27 February 2019 | Southampton Manchester World Trade Summit

An Introduction to Exporting 12 March 2019 | Manchester 27 February 2019 | Manchester ------Introduction to Importing Customs Classifications and Tariff Codes 13 March 2019 | London 27 February 2019 | London ------Advanced Importing Advanced Exporting 14 March 2019 | London 28 February | Manchester ------Retail without Borders VAT in International Trade 14 March 2019 | London 28 February | Birmingham Post Brexit Planning Workshop

14 March 2019 | Birmingham ------Open to Export Post Brexit Planning Workshop Partner Events 19 March 2019 | Manchester IOE&IT Events

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Forward Look

Webinar: Preparing for Brexit: Currency Understanding Rules of Origin, Free Trade

20 March 2019 | Online Agreements & Export Preference 27 March 2019 | Birmingham Introduction to Exporting ------20 March 2019 | Birmingham Turning Risk in Opportunity in Export Markets ------beyond the EU Excise Duties & Procedures 28 March 2019 | London 20 March 2019 | London ------Advanced Exporting Effective Incoterms – Half Day 28 March 2019 | London 21 March 2019 | London ------Introduction to Export Licensing Controls AEO Training 28 March 2019 | London 21 March 2019 | London ------Post Brexit Documentation and Compliance Advanced Exporting 28 March 2019 | London 21 March 2019 | Birmingham ------April Dangerous Goods Food and Drink Export Workshop

26 March 2019 | Birmingham 03 April 2019 | London ------Russia Without Tears – a workshop for British Webinar: Understanding Rules of Origin and exporters Free Trade Agreements

27 March 2019 | London 11 April 2019 | Online ------

To view our calendar of training courses, visit https://www.export.org.uk/page/TrainingCourses For more information about our summits, webinars and partner events visit export.org.uk/events Or you can call us at 01733 404400

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Export Action Plan

Lhamour (Mongolia) How did you find the experience of pitching to the judges during the final? It was an incredible experience. I was very nervous but once I saw the other pitches, I was very in - spired and it felt great to be part of this amazing group of finalists. I felt very good about my presentation because it gave us a good opportu - nity to showcase our work to the world.

How did you find the experience of being at the WTO Public Forum? structure. I had not structured my the environment to as many people It was great. My goal is to be a export strategy like this before. as possible around the world. speaker one day, so it was good practice. Looking ahead, what’s your next What three tips would you give step now as a business? to other MSMEs looking to enter How did you find using the Export Our main goal is to expand international trade? Action Plan tool and what impact Lhamour globally and distribute to Have a clear vision, focus on building did it have on your business? more countries in the world. We a good foundation and then believe It was great. It gave me the want to expand our product line in your products and services and opportunity to make a clear plan and share our philosophy of loving have no fear. n with clear goals and processes and yourself, loving others and loving

About Lhamour (Natural Essentials LLC) Lhamour is committed to making a positive social change in Mongolia and around the world, every step of the way, starting from the raw materials we use and where we source them, to employment of the marginalised and giving back to the communities and the environment. The world is changing fast. They say: be the change that you want to see. We could sit there and wait for others to come and fix our problems. But we live on the same earth and have the same 24 hours, so why not start ourselves? We, as the young people, want to create a world we want to live in and our future generations. By doing it ourselves, we want to empower others so that they can do it too. Love yourself, love others and love the environment. Lhamour was established in 2014 at home from the kitchen with the dream to create a Mongolian brand that provides healthy, high quality, natural skincare products. What started out as one person’s dream turned quickly into something much greater, something that would inspire the youth and fix people’s skin problems as well. Something that was scalable, and that people started to share all around the world – as you can see with our distributors who have become entrepreneurs themselves, from Hong Kong, Taiwan all the way to India, Thailand and Canada, all sharing our philosophy. Lhamour’s vision is to be a change-maker – to create a more sustainable future for our next generation. We give value to people by providing natural skincare products through zero-waste production that are freshly handmade, like warm bread in the morning, with unique Mongolian ingredients for the health-conscious person who wants to create social impact through a purchase. Love yourself, love others and love the environment.

90 : Membership : Training : Qualifications : Advice Enter the Open to Export Action Plan Competition for the chance to win £3,000 cash and further support towards your plans for international growth . Complete your plan using our online planning tool.

Who are Open to Export?

We are the free online information A comprehensive webinar Quarterly competitions for the service from The Institute of Export programme covering all aspects chance to win £3,000 cash and & International Trade dedicated of international trade further support to helping SMEs through our: The online Export Action Plan Step-by-step guides covering tool helping businesses create a Plan to win - start your Export the whole export journey from roadmap to successful new markets Action Plan today ‘Selecting a market’ to ‘Delivery and documentation’

Powered By Register for free on www.opentoexport.com to start your plan and enter the competition World Trade Matters

Making the Case for International Trade

Why we need to do more to champion small businesses

At the start of October, The Institute of Export & International Trade was honoured to be awarded the title ‘WTO-ICC Small Business Champion’ by the World Trade Organisation (WTO) and the International Chamber of Commerce (ICC). This Lesley Batchelor OBE followed the final of an international competition Director General at the we ran for MSMEs all over the world, inviting them Institute of Export & International Trade to submit their export plans using an online planning tool on our Open to Export platform.

The competition was our way of Limited from Zambia, who make small businesses is paramount to contributing to a more inclusive honey-based products, are just one bringing more people out of trading world and we were hum - such example of the vital role that poverty and spreading prosperity bled to meet the 12 finalists who trade plays in developing commu - through the world. pitched for the cash prize of $5000, nities. As they grow, Dytech employ 8 of whom travelled to Geneva to and train individuals from poorer Despite all the anxieties we have join us for a competition showcase communities, 40% of whom are going into 2019, it remains the case at the WTO Public Forum. women. By giving Dytech $5000 to that much progress has been made implement their export strategy, we in recent times. Much of this has Our stand throughout the Forum are helping Zambian men and been down to a globalisation and was abuzz with inspiring entrepre - women to escape poverty and gain liberalised trading system, with the neurs. Our finalists supported each skilful employment, creating skills World Bank reporting that the 1990 other with their pitches and and work that could have lifelong poverty rate was halved by 2010, exchanged ideas and advice about impacts. 5 years ahead of target 1. how to do exporting successfully. What was truly inspiring though, Global trade should create Protectionist politics and fears was the significant impact that opportunities for all about automation linger of course. each of these companies is already In respect to the latter, trepidation having in their respective homes. We were honoured to be named a may be exaggerated. In his opening ‘WTO-ICC Small Business Champion’ plenary speech to the WTO Public The winning company, Dytech because the need to champion Forum, WTO Director General

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Roberto Azevêdo noted that spread opportunity in trade so that to learn so much about the world technological advances could lead it includes people from developing and other ways of doing business – to additional global trade growth of as well as developed countries, something we certainly found around 30%, and though technology spreading it to people of all races, spending time with our finalists in could replace 75 million jobs over genders, sexualities and back - Geneva. the next 4 years, in the same time grounds. it could also create 133 million new Exporting can only do all these ones. It was truly inspiring, for instance, things when you know how it’s that 7 of our 12 finalists were done properly. That’s why we The role of MSMEs in spreading women hailing from Vietnam, were delighted to open up the opportunity Mongolia, Belize, Saint Kitts, Jordan, Open to Export project to MSMEs Trinidad, and Scotland. around the world – using our own The WTO’s mission is to ensure technologies to help them trade that global trade growth works for Exporting is inclusive because successfully. everyone, and the phrase ‘inclusive it is great trade’ is a key one – especially By giving MSMEs the tools and when protectionist policies are Global trade should be inclusive information they need to export returning to the table. In this sense, and the case for the benefits of properly, we’re doing our bit to new and growing companies can exporting has to be made to facilitate, encourage, and to often be the most inspiring and MSMEs. Wherever you are, what - champion the world’s MSMEs. In innovative causes for hope, not ever the size of your business, so doing, we’re making trade more least because the great ideas and exporting helps to spread risk, in - inclusive, doing our bit to reduce employers of tomorrow can’t all crease sales and boost efficiency. poverty and increase opportunity come from big business. everywhere and for everyone. n Indeed, we learnt recently that in By backing small businesses the UK alone companies that export irrespective of where they come become 34% more productive than from – something technology those that don’t. By dealing with indeed facilitates – we can truly people in different cultures you get

1 https://www.worldbank.org/en/topic/poverty/overview

www.export.org.uk : @ioexport : 93 World Trade Matters

Use it or lose it - Apprenticeships

‘Use it or lose it’ – access apprenticeship funding quickly in 2019

The Institute of Export and International Trade provide export growth and international trade facilitation and professional qualifications which allow businesses to compliance, never has it been more important to have access apprenticeship funding. professionally trained staff.

This can apply for any business who export or import We have a high number of companies and employees or are involved in the international trade supply chain - studying with us, so please join us. such as Logistics and Shipping companies, Banks and Trade consultants. We have a number of companies and learners starting with us in January who are taking the opportunity to Our qualifications focus on the practical aspects of commence learning now before businesses start to international trade, supply chain and logistics and lose access to some of their apprenticeship funding prepare employees for a career in international trade. from April 2019, under the principle of 'use your With current uncertainties around Brexit, initiatives on apprenticeship funding now or lose it!'

To hear more about what we have to offer please visit https://www.export.org.uk/page/Apprenticeships

Or email us on [email protected] You can also telephone 01733 404400 for further information

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SMEs

Why should SMEs internationalise?

Involvement in international operations allows businesses to have access to a greater pool of customers and untapped opportunities. Firms frequently pursue internationalisation in an attempt to increase their survivability and growth opportunities.

decide what entry mode to pursue • How do I get paid? in specific foreign markets, managers must carefully weigh all available Managers should be knowledgeable options in terms of their advantages about the aforementioned to and disadvantages in that particular decide if their SME is prepared to context. export. Consequently, managers should decide whether direct Exporting allows firms to build exporting or using an export economies of scale in the home intermediary is best suitable for Dr Cristina Stoian country. Frequently the risk involved their business. Senior Lecturer in is considered moderate, since no International Business operation facilities are built in host However, while exporting may be Brunel Business School countries. Yet, it entails several a common mode of approaching Brunel University challenges such as exposure to foreign markets, other modes may London trade barriers, transportation costs be more appropriate depending on and may lead to dependence on the specific situation. For example, International trade makes firms export intermediaries. joint ventures provide firms with more productive as compared to complementary resources, shared domestic firms. Besides the obvious How do I know when to start investment risks and may be a benefits related to increase in sales exporting? requirement for foreign market volumes and profits, other benefits entry. Yet, suitable international such as improvement in product Before embarking in exporting, partners may be difficult to find, /service development and quality SME managers should ensure their and relationship management is and in production process can re - firm is ready to export. They can not always easy. On the other hand, sult from competing internationally. do so by carefully considering the wholly owned subsidiaries allow following issues: full control of foreign operations. While small and medium-sized But they also entail considerable enterprises (SMEs) have been • Do I know enough about the commitment and investment. traditionally perceived to be able tariff and non-tariff trade barriers to take part in international trade in the market selected for Many SMEs, despite their resource solely by engaging in import/export exporting? limitations, internationalise not only activities, the last two decades have through exporting, but also via shown that many of these smaller • Do I need an export license? higher commitment foreign market entrepreneurial players are able to modes such as international joint design and manage sophisticated • Do I understand what is ventures or establishment of foreign internationalisation strategies, required to appropriately subsidiaries. Such SMEs are referred comparable to those of large multi - package and document to as micromultinational enterprises. nationals. In other words, SMEs can shipments? engage in several entry modes Micromultinationals are nimble such as exporting, international • How do I transport my goods? players who frequently serve multi - joint ventures and setting up foreign ple foreign markets using distinct owned subsidiaries. However, to • What incoterms will I use? foreign market entry modes. u

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SMEs

These firms can identify in which players to craft winning internation - Do micromultinationals only exist foreign markets it is profitable to alisation strategies ahead of their in some business sectors? establish a physical presence competitors. such as sales or manufacturing While in some sectors the likeli - subsidiaries. By doing so, micro - Can my SME become a hood to become a micromultina - multinationls can co-create and micromultinational? tional may be higher (e.g. software co-produce with their customers firms, manufacture of electronic and local communities and hence Yes, it could. You would need to products etc.) research shows that increase their sales as well as the have innovative products and an this phenomenon may occur in a satisfaction and loyalty of their excellent understanding of your broad range of sectors. Yet, micro - customers. Drawing on their business sector around the world to multinationls are more likely to distinctive industry and foreign decide what are the most profitable emerge in highly specialised niche market knowledge, micromultina - opportunities and how best to sectors. tionals can spot opportunities for address them. It may often be more initiating R&D collaboration with profitable to serve some markets by To conclude, SME managers should foreign organisations, which drive establishing local subsidiaries while embrace internationalisation, but product and process innovation, exporting to others. should do so mindfully, carefully thus securing a leading place in weighing and choosing the most their sector internationally. Why would I want my firm to appropriate foreign markets and be a micromultinational? entry modes for their business. n Furthermore, they are particularly skilful at identifying international Having a presence in foreign joint venture (or strategic alliance) markets ensures an intimate opportunities which can help their understanding of customers’ business generate increased profits needs and future preferences. and grow faster. In a nutshell, in-depth It also allows your firm to gain knowledge of their business sector better acceptance by the local worldwide, coupled with foreign community, thus is likely to market experiential knowledge, boost sales and the sustainability allows these small entrepreneurial of your international operations.

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Technical Help FAQs

Technical Help FAQs

Our Exporters Helpline service comes as part of your membership package. Giving you access to our team of experts who can provide help with questions on all aspects of international trade. To submit a question simply log in to your Member Account at www.export.org.uk and click on ‘Helpline Enquiry’ under the ‘Quick Links’ heading.

I have been asked to provide an Association (IATA). The exporter When Dangerous Goods are ISPM 15 Certificate for my shipment is responsible for the accuracy shipped the carriers will ask for a and I’m not sure what this is? of the form and ensuring that Material Safety Data Sheet, which is requirements related to packaging, known as a MSDS. This data sheet This is certification used to ship marking and other required must contain full information products between countries for information by IATA have been met. regarding the product being wood materials of a thickness greate r shipped. than 6mm. Its main purpose is to For a shipment of dangerous prevent the international transport goods, it is critical to identify the MSDS is very important for the and spread of disease and insects goods, and ensure they comply carriers to consider acceptance of that could negatively affect plants with packaging and labelling the product. It provides the instruc - or ecosystems. requirements, which vary tions and the full requirements for depending upon type of product. handling the dangerous cargo and ISPM 15 affects all wood packaging is created by the manufacturer material such as pallets and crates, Classification of dangerous goods of the product detailing the full requiring that they be debarked and is broken down into nine classes information of the item or items. then heat-treated or fumigated and according to the type of danger stamped. You have to ensure that materials or items present: Can I use a EUR1 for preferential the certification and testing is trade with South Korea? provided by a company authorised • Explosives to do the procedure. • Gases The EU has a trade agreement with • Flammable Liquids South Korea enabling preferential Certified packing materials will have • Flammable Solids trade. Within the normal preferential a stamp similar to the one shown • Oxidizing Substances trade agreements for shipments below: • Toxic & Infectious Substances over 6000 Euros, a EUR1 would be • Radioactive Material issued to certify the goods meet • Corrosives the rules of origin. • Miscellaneous Dangerous Goods However South Korea does not Dangerous goods are also assigned accept the EUR1 form. For into 3 packing groups known as UN preferential trade with South Packing Group: Korea, Approved Exporter Status is required to enable preferential • Packing Group I: high danger import duty. What is a Dangerous Goods • Packing Group II: medium danger Certificate for shipments by Air? • Packing Group III: low danger To apply for this, you need to complete a C1454 form and once Export of goods classified as The reason for having different UN approved you would use your Dangerous which are submitted Groups is because the each one Approved Exporter Number on your for shipment by air need to be determines the degree of protective documentation, for your customer accompanied by a Dangerous packaging required. to benefit from preferential. Import Goods Note required by the duties. u International Air Transport

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Technical Help FAQs

Do I have to be authorised to use The current version is 2010 and Inward Processing? the International Chamber of Commerce will be launching a Under the new Union Customs new version in 2020. The Institute Code (UCC) you do have to be of Export & International Trade will authorised to use Inward be the only Organisation running Processing. This is either Authorisa - training courses to introduce the tion by Declaration, if you only use new version through 2019, so the procedure up to 3 times a year, companies will be prepared when or Full Authorisation for use of the new terms come into force. more than 3 times a year. Please contact the Institute or look For Full Authorisation the company at the website for information on will be required to complete an these new training events. n application form SP3 which can be done online via the company’s Government Gateway account. Note: These answers are intended to provide guidance in relation to commonly occurring The UCC came into force on 1 issues faced by members. Many international May 2016, so authorisations for regulations can be complex and variable, Inward Processing Relief that were depending on specific products, circumstances, or details of transactions. Members should granted prior to that date can still seek specific advice if their particular be used until the authorisation circumstances differ from the above, or if needs renewing. they are unsure about the detail of individual answers. When using this procedure you will also have to take into account that under the Union Customs Code, a Customs Guarantee will be required to cover the actual or potential debt gained by using Inward Processing.

What are incoterms and how are they used?

INCOTERMS (International Com - mercial Terms) are an internation - ally recognised set of trade terms developed by the International Chamber of Commerce (ICC). The terms define the responsibilities and liabilities between a buyer and a seller. They cover things like who is responsible for paying freight costs, insuring goods and covering any import/export duties.

98 : Membership : Training : Qualifications : Advice OUR CORPORATE PARTNERSHIP provides access to a unique range of best practice advice, support, and resources to help you keep up-to-date with the ever-changing world of international trade.

Becoming a Corporate Partner n Discounts boost business opportunities and shows that you support and Institute members get exclusive forge valuable relationships. promote our aims, objectives and discounts to some of our partner values and will make you a true organisation events. n Job Board partner of the Institute. Place your vacancies in front of n Communications Package our members and thousands of Corporate Partnership is open to To keep you up-to-date with Daily monthly visitors to our website. businesses of ALL sizes and offers FX bulletins and our Monthly great value for money with a range e-Newsletter, not to mention n Member Journal of benefits designed to help support content written across all aspects Receive 'World Trade Matters' - the and promote your business: of trading on our website blog. Professional Journal for members Corporate partners can contribute of the IOE&IT - every quarter. n Technical Helpline articles for our blog and also on Corporate partners can contribute Unlimited access for any our sister website Open To Export, articles for inclusion and receive a international trade issue, helping which will also be promoted across 20% discount on advertising in the you to keep your business running our social media accounts. Journal. smoothly. n Preferential Member Rates n Media Opportunities n One-to-One Advisory Session On all our world-renowned Working with TV, national press, A free session with one of our training courses , including bespoke specialist export forums and experts. training courses designed with our Department for International Trade help and expertise. publications and websites. n President's Lunches Come along to the House of Lords n Networking Opportunities n Your Business Logo for lunch with our President, to Events where your business will Featured on our website with network with fellow Corporate be able to meet with other export a short profile and direct link to Partners and raise concerns for professionals to build relationships your company website. the Institute to feedback to and discuss the latest developments government. These events are in international trade. n Sponsorship Opportunities exclusively for Corporate Partners . The chance to sponsor an Institute n A Voice For Your Concerns event or academic award, putting n Featured Webinar Feedback to government on your brand in front of an audience Our webinar programme covers issues that impact you, plus of international trade professionals. a wide range of topics. Corporate participate in Institute responses Partners can get involved by to central government with regard n Business Logo featuring as a panelist on a webinar, to proposed legislative changes. IOE&IT Corporate Partner Logo to promoted directly to both the Contribute to our Annual Survey use on your company letterheads, Institute and Open to Export audi - and roundtables. emails, internet and intranet, ences. Giving you the opportunity showing your customers that to present details of your business n Affiliate Memberships your business is dedicated to offering and build contacts. Six free Affiliate Memberships, professionalism in international allowing your staff to engage in trade. networking opportunities, help

Sign up to become a Corporate Partner today! To speak to a membership advisor: call +44 (0)1733 404400. email: [email protected] For more information about all our membership options, go to: export.org.uk/membership REACH THOUSANDS OF POTENTIAL CUSTOMERS

WORLD TRADE MATTERS Reach our readership of thousands of exporters and decision-makers with a one-page ad in World Trade Matters.

Readership : Senior decision-makers in UK government and international trade agencies. Our membership of thousands of exporters. The broader UK export community at summits and exhibitions.

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World Trade Matters brings together thought leadership and updates from across the world of international trade. This high quality journal sits on the coffee tables and desks of key decision makers in exporting businesses and governments around the world.