ICC and USCIB CUSTOMS & TRADE FACILITATION SYMPOSIUM

February 22-24, 2015 The Four Seasons Hotel | Miami, Florida, USA

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SUPPORTING PARTNERS:

MEDIA PARTNER: February 22-24, 2015 The Four Seasons Hotel | Miami, Florida, USA

Welcome Remarks

Harold McGraw III, Chairman, McGraw Hill Financial; Chairman, ICC; Chairman, USCIB Robert Mulligan, Senior Vice President, Policy and Government Affairs, USCIB John Danilovich, Secretary General, ICC February 22-24, 2015 The Four Seasons Hotel | Miami, Florida, USA

Keynote Address

Yi Xiaozhun, Deputy Director General, World Trade Organization (WTO) Kunio Mikuriya, Secretary General, World Customs Organization (WCO) February 22-24, 2015 The Four Seasons Hotel | Miami, Florida, USA

Driving Implementation of the WTO Trade Facilitation Agreement: The Way Forward

Moderator: James Bacchus, Chair, Global Practice Group, Greenberg Traurig; Chair, ICC Commission on Trade and Investment; former Chairman of the WTO Appellate Body; former U.S. Congressman (FL-11) Brenda Brockman Smith, Assistant Commissioner, Office of International Trade, U.S. Customs and Border Protection Virginia Brown, Director, Office of Trade and Regulatory Reform, USAID Evdokia Moïsé, Senior Trade Policy Analyst, Development Division, OECD Sarah Thorn, Senior Director, International Trade, Wal-Mart Stores, Inc. The Office of Trade and Regulatory Reform Virginia L. Brown Director WTO Trade Facilitation Agreement

• Section I - Technical Provisions

• Section II - Special and Differential Treatment Provisions

• Section III - Institutional Arrangements

A Sequenced Approach to Technical Assistance

1. Political will and implementation of fundamental principles 2. Procedural simplification 3. Compliance management 4. Border agency cooperation

7 Lessons Learned • Political Commitment

• Mutual Accountability between Donors and Host Countries

• All Agency Inclusion

8 Lessons Learned • Quality Control and Assurance

• Integration and Assimilation of Modernization Components

9 Lessons Learned

• Technology Solutions

• Management Capacity Building

• Public/Private Sector Cooperation and Transparency

Measuring the implementation of the WTO TFA: the OECD Trade Facilitation Indicators

ICC/USCIB Customs and Trade Facilitation Symposium Miami, 23-24 February 2015 OECD Trade Facilitation Indicators

 A tool to measure the impact of TF Measures on Trade Flows and Trade Costs  and provide an overview of country performance  A basis for prioritising trade facilitation actions by governments  A support for mobilising technical assistance by donors in a targeted way  Following the structure of the WTO Trade Facilitation Agreement

OECD Trade and Agriculture Directorate 12 Potential Trade Cost Reductions from TFA Implementation by Income Group

OECD Trade and Agriculture Directorate 13 Potential Trade Costs Reductions for the “Top Three” Sets of Measures

OECD Trade and Agriculture Directorate 14 TFIs: state of implementation around the world

OECD Trade and Agriculture Directorate 15 TFIs : performance evolution in OECD countries

OECD Trade and Agriculture Directorate 16

Thank you for your attention

[email protected]

OECD Trade Facilitation Indicators

http://www.oecd.org/tad/facilitation/indicators.htm

OECD Trade and Agriculture Directorate 17

February 23, 2015

Wal-Mart Stores, Inc. ICC/USCIB Customs and Trade Facilitation Symposium Company Overview

• 2.2 Million Associates Worldwide

• Serves customers and members more than 200 million times per week

• FY16 Sales of $286 Billion

19 Federal Government Relations Walmart’s Global Presence – 27 Countries Outside the U.S. – e-commerce websites in 11 countries

Canada United Kingdom

China

U.S. Japan Mexico

Central America India

Brazil Sub-Saharan Africa Chile Argentina

Over 11,000 Units Globally

20 Walmart International Over 60 banners….

21 Federal Government Relations Trade Facilitation and Small Suppliers

22 Federal Government Relations February 22-24, 2015 The Four Seasons Hotel | Miami, Florida, USA

Keynote Dialogue Moderator: Maritza Castro, Vice President, Head of Customs Luncheon generously and Regulatory Affairs, Americas Region, DHL Express USA sponsored by Harold McGraw III, Chairman, McGraw Hill Financial; Chairman, ICC; Chairman USCIB Mark Linscott, Assistant U.S. Trade Representative for WTO and Multilateral Affairs February 22-24, 2015 The Four Seasons Hotel | Miami, Florida, USA

Trade Logistics and Customs Regimes: Boosting Regional and Global Supply Chains?

Moderator: Oliver Peltzer, Partner, Dabelstein & Passehl; Vice Chair, ICC Commission on Customs and Trade Facilitation Umberto de Pretto, Secretary General, International Road Transport Union Ruth Snowden, Executive Director, Canadian International Freight Forwarders Association; International Federation of Freight Forwarders Associations Simon Schofield, Vice President – European Tax and Corporate Audit, Samsung Electronics Michael Heldebrand, Principal, EY Global Trade, Ernst & Young LLP Darcy Price, Director, Value Chain Applications, Oracle Corporation ICC AND USCIB CUSTOMS & TRADE FACILITATION SYMPOSIUM

Trade logistics and customs regimes: Boosting regional and global supply chains Miami, 23 February 2015

Umberto de Pretto Secretary General Evolution of IRU Membership

1948: 8 Founding Member Countries 2015: present in over 100 countries

26 IRU New Eurasian Land Transport Initiative (NELTI)

From September 2008 Monitoring over 200,000 border crossings

57% of transport time lost at border crossings 38% of transport costs due to unofficial levies

27 Implement key UN facilitation instruments to allow transport to drive trade!

28 Securing and facilitating trade and international road transport

Transports Internationaux Routiers

Managed by the IRU since 1949

29 What is the TIR System?

• A tried and tested, affordable facilitation instrument for international transport and trade • Global • Intermodal • Secure

• Based on TIR Convention of 1975, signed by 68 contracting parties

30 Geographical scope of the TIR Convention

31 TIR: Connecting Business and Customs

through an internationally tried and tested system

T r TIR meets: a Cargo Data TIR AEO d Cargo Acknowledgment e - C-TPAT/PIP/AEO requirements eManifest r TIR-EPD

C - ACE and eManifest electronic requirements a Real-Time SafeTIR r - AllConveyance financial data guarantee requirements r Conveyance Acknowledgment TIR i - Customs clearance requirementsGuarantee at destination e r

32 Oxford Economics and Organisation of American States (OAS) Report on TIR

TIR as a best practice for intermodal transport facilitation in Latin American Countries

Argentina, Brazil, Mexico: exports boost by up to USD 9 billion total

Border waiting times cut by 50% between Latin American countries

33 IRU involvement in B20 to target TIR20!

ICC/ USCIB Symposium on Trade Facilitation Miami, Florida February 22-24, 2015

Moving the World’s Goods

By: Ruth Snowden

Anything, Anywhere Capacity & Competency

Performance Indicators Benchmarking

Funding & Resources Global Standards Rules

• Simple language • Predictable • Clearly communicated • Timely • Universally applied People, Systems, Networks

Photo University of Manitoba Thank you

Value Chain Collaboration

Collaboration across the Entire Value Chain Seize value creating opportunities with customers through joint improvement activities such as collaborative planning and forecasting

Samsung Customers

Purchasing Product Order Forecast, Sales Order Retail & Channel Information

Supplier Manufacturing Sales Customer Store End-user

On-time Delivery and More Sales

Internal SCM External SCM Customized Solutions

Customized methodology based on specific customer pain point Tailored projects along the 7Ps of Marketing Framework

▶Store Space Optimization

▶Price Sensitivity Analysis Physical Environment Tailored ▶CPFR & Inventory Solutions Price Process ▶Category Management to Address Management Customer Product Pain Points

▶Omni -Channel ▶Sales Force Place People Management Allocation

▶Promotion Promotion Optimization Shared Benefits

Key Collaboration Benefits: Achieve Mutual Management Goals (Revenue/Profit)

Sales Maximization Working Capital Improve Improvement Improve Sales & Market Share Delivery Performance

Reduce Optimize Reduce Store/DC Stock-out Channel Inventory Logistics Costs Customs Issues Affecting the Consumer Electronics Sector

Origin Classification Can Samsung keep its customer commitments in a non domestic scenario? Non Valuation Harmonised Procedures

Business Objectives from Customs

Transparency Predictability Efficiency (Active) Engagement Customs Issues Affecting the Consumer Electronics Sector

• Certifying origin for components and subassembly (in particular for value added criteria) Origin

• Convergence based products • Function v End Use (Entertainment, medical, ICT device) Classification • Software giving rise to additional functionality

• Products with short lifecycle (and use of reference databases) • Free of charge supplies (gifts/samples) Valuation

Trade logistics and customs regimes: Boosting regional and global supply chains

24 February 2015 Overview: Data Analytics in Global Trade

Visualization layer

Decision & Support Analytics Management Reporting

Trade Compliance Cost & Opportunity Profile Monitoring Performance Exploration Maintenance & Remedy Monitoring

Data consolidation warehouse

E.g. simple file uploads for rapid, repeatable data feeds, no intensive onboarding

Customs Customs ERP Other Authorities Brokers Data Sources

• Flat files from • Broker data • ERP data • TARIC, USITC, etc. country flat files • Local tools • Transparency International authorities • Spend data

How it comes together: Deliver analytics that are ‘actionable’

Management Reporting Dashboard

Trade Profile Maintenance Sourcing & Trade Route Analysis

Current use of FTAs / Duty Reliefs

Preferential trade sourcing opportunities Global Trade Trade Profiles Master Data

Broker Spend Analysis

Invoice Currency Exports

Rejection, Correction, Refiling Rates Broker Rankings Classification Anomalies Analysis Clearance Time Performance

Trade Logistics and Customs Regimes: Boosting Regional and Global Supply Chains? Case Studies in Visibility and Control

Darcy Price Director, Value Chain Applications Oracle

February 23, 2015

Copyright © 2014 Oracle and/or its affiliates. All rightsOracle reserved. Confidential | – Internal/Restricted/Highly Restricted Challenges “Global Trade Compliance is a complex list of rules and regulations which must be effectively complied with to enable movement of goods into and out of countries around the world…

Every country has their own set of rules and regulations by each of their government agencies to regulate import and export of commodities, technologies and services, and to impose trade embargos and economic sanctions on certain countries, entities and individuals .

The effect of these regulations and controls is that a single transaction can subject [us] to the rules of multiple agencies in multiple countries.”

Copyright © 2014 Oracle and/or its affiliates. All rightsOracle reserved. Confidential | – Internal/Restricted/Highly Restricted55 Challenges Visibility Global Growth • What is controlled or regulated? • Much of customs work done through logistics is now outside the U.S. • When global logistics are managed in spreadsheets or via third parties – its not • Diverse business processes increase easy to know complexity and risk • Data not centralized /transparent • Multiple systems and databases with no integration Compliance • Needed to prevent assets from being Protectionism

held up in port or in customs • Significant risk for higher duties & taxes • Screening trading partners, transactions (ADD, CVD) and locations • Non-tariff Risks • Increased Customs inquiries and audits • Difficulties clearing goods (Red Tape): Brazil, Analysis Russia, Saudi Arabia • Ability to understand and address the root cause of delays and issues

Solution Objectives Visibility Global Growth • Manual systems replaced with • Global process with functional expertise / automated, standardized processes. Regional execution with local business knowledge • Centralized trade information / Regionally managed • Logistics planning, freight consolidation and improved invoice accuracy • Daily automatic trade content updates into GTM • System-generated shipping/customs documents – regionally printed and shared Compliance with broker • Manage transportation and trade • Reduce complexity caused by multiple compliance in one system systems, processes

• Trade compliance through integrated logistics processes… data capture and Protectionism track thru supply chain • Meet regulations & standards – compliance • Screening workflows for data set up / to design, sale and usage of products across order release / shipment different regions Analysis

• Supplier/ Carrier/Forwarder Copyright © 2014 Oracle and/or its affiliates. All rightsOracle reserved. Confidential | – Internal/Restricted/Highly Restricted57 Collaboration – Scorecards, Planning, February 22-24, 2015 The Four Seasons Hotel | Miami, Florida, USA

ICC Trade Tools: Why do they work so well?

Cindy Duncan, Senior Vice President Carnet and Trade Services, USCIB Frank Reynolds, President, International Projects, Inc.

ICC Trade Tools: Why They Work So Well

ATA Carnet

ICC and USCIB Customs & Trade Facilitation Symposium Miami, February 2015

• International customs document. Duty-free and tax-free, temporary admission of most commercial goods.

• Common documentation and harmonized clearance practice

• 74 member countries

• Created 50+ years ago. Managed by: World Customs Organization ICC World Chambers Federation National customs National Guaranteeing Organizations

www.PassportForGoods.com ATA Carnet Video

www.PassportForGoods.com Goods Covered • Goods covered--from the ordinary to the extraordinary Samples: machinery, apparel, medical devices, jewelry & watches

Goods for fairs and trade shows: equipment, antiques, paintings, display booths/stands

Professional equipment: Film/press/broadcast equipment, musical instruments, electrical equipment, medical devices

• What’s not covered? Perishable/consumable items; items for processing or repair

• 700,000-1 million customs transactions and 20+ billion US$ in value per year From the Ordinary to the Extraordinary

Olympic bobsleds

Benefits for Business

• Market expansion tool; eases customs procedures

• Valid for one year and for many trips

• Eliminates the posting of large cash deposits

• Arrangements are made in advance and in local language and currency

• Wide geographical coverage; most commercial products

• Alternative to national procedures

www.PassportForGoods.com Benefits for Customs

• Safe and simple

• Revenue protection

• Improve productivity, facilitated movement of goods

• No time-consuming calculation of duties and taxes

• One single point of contact, i.e., local NGO

• 5 decades of success. Proven, tried and trusted system for Customs

www.PassportForGoods.com Why It Works so Well?

• Mutually beneficial system for both customs and exporters

• Documented movement of goods across borders

• Longstanding, respected and expanding world network

• Acceptance of a wide variety of goods in most major trading economies

• Win, win, win

www.PassportForGoods.com In the United States

Visit www. MerchandisePassport.org

www.PassportForGoods.com February 22-24, 2015 The Four Seasons Hotel | Miami, Florida, USA

Stopping Counterfeit Goods at the Border: What More Can be Done by Business and Customs Administrations? Moderator: Donia Hammami, Policy Manager, Customs, Trade Facilitation and Taxation Commissions, ICC Lev Kubiak, Assistant Director International Operationss, Immigration and Customs Enforcement, U.S. Department of Homeland Security Jerry Cook, Vice President, Trade and Government Relations, Hanesbrands; Chair, USCIB Customs and Trade Facilitation Committee William Bullard OBE, Corporate Relations Director, DIAGEO WestLAC Denise Coutinho, Senior Manager, Global Trade Strategy, Global Tax and Customs, Cisco Systems, Inc.

ICC AND USCIB CUSTOMS & TRADE FACILITATION SYMPOSIUM 22-24 FEBRUARY 2015 Counterfeit affects us all Industry and Government need to get on top of this issue

Criminal activity Consumer deception Loss of revenue for brand Dangerous’ industrial owners and governments Linked to serious organised crime spirits are often Economic Impact substituted for quality A preferred method of Loss of consumer trust / alcohol funding for some terrorist reputation in affected groups Health Hazard, can result brands in serious injury, even death Future Investment Risk

Consumer Commercial Criminal Examples

AFRICA SINGAPORE International Trade in Dry NIGERIA Goods Outbound consignment of 20,000 counterfeit Johnnie 7 containers of fake spirit Walker Red Label closures bottles (vodka) possibly airfreighted from China for Ireland (in plain boxes) – 7 containers Approx. 20k bottle closures seized

Sharing best Minimum Requirements for effective border practices can enforcement help increase chances of • Working Smarter – eliminating vulnerabilities in the supply chain success • Raw Materials and component suppliers

• Transport operators

• Implementation/expansion of KYS and KYC programs by intermediaries

• Sharing Intelligence

Regional comparison of illegal alcohol markets in volume terms

Brazil and Peru show percentages above the regional average of 26%, while T&T is significantly below average

*Costa Rica, Mexico, Nicaragua, Panama = 2012; Brazil, Venezuela and Dominican Republic = 2011 Brazil values do not include tax leakage volumes since that category was not included in the scope of that project

Source: Euromonitor THANK YOU Homeland Security Investigations International Operations Who We Are:

• HSI investigates a wide range of domestic and international activities arising from the illegal movement of people and goods into, within, and out of the United States. . Smuggling of narcotics, weapons and other types of contraband . Immigration crime . Financial crimes . Cybercrime . Export violations . Critical infrastructure threats . Human smuggling . Human rights violations

77 210

U.S. Offices 78 65 Attaché Offices + 8 DOD Liaisons in 48 Countries

LEGEND

Attaché Office DOD Liaison

Frankfurt Brussels

Moscow

Vancouver Ottawa The Hague London Vienna EUCOM / AFRICOM Toronto Montreal Paris Madrid Rome NORTHCOM Beijing Seoul SOCOM/CENTCOM Athens Tokyo Tijuana Jerusalem Tel Aviv Caribbean Casablanca Kabul JIATF-W/ Matamoros Islamabad PACOM CD Juarez SOUTHCOM & JIATF-S Monterrey Merida Amman Dhahran Cairo Hermosillo Nassau Dubai New Delhi Guangzhou Santo Domingo Mexico City Jeddah Abu Dhabi Hong Kong Guatemala City Kingston Cartagena Dakar Bangkok San Salvador Manila Tegucigalpa Riyadh Phnom Penh Ho Chi Bogota Minh Panama City Kuala Lumpur City Guayaquil Singapore Nairobi Jakarta Brasilia

Buenos Aires Pretoria Canberra

79 International Operations

• Protects the United States and its interests from illicit goods, people, and money by conducting multi-faceted, international law enforcement operations and removals;

• The mission of HSI International Operations is three fold: . Support domestic operations . Disrupt transnational criminal organizations . Build on international partnerships

80 • The National Intellectual Property Rights Center (IPR Center) protects the public’s health and safety while combatting predatory and unfair trade practices that threaten the global economy Together 23 federal and international agencies (EUROPOL, INTERPOL, Mexico, and Canada) leverage the resources, skills and authorities of all its members. The IPR Center, led by a Director from HSI and Deputy Directors from the FBI and CBP, focus on three critical areas:  Intellectual Property Crime  Trade Fraud Crime  Global Outreach and Training

 Program Example – Operation Chain Reaction

81 Questions?

82 February 22-24, 2015 The Four Seasons Hotel | Miami, Florida, USA