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Global Trade Management How Can Companies Grow in an Increasingly Complex Global Trade Environment? Contents

Global Trade Management How Can Companies Grow in an Increasingly Complex Global Trade Environment? Contents

GR OWTH EN AB LE R S

Global How can companies grow in an increasingly complex global trade environment? Contents

Foreword 1 Summary and key findings 2 1. Strategies and enablers for growth 3 2. Global trade environment development 4 2.1 Challenges of and complexity 4 2.2 Opportunities for and liberalising interventions 7 3. GTM: Growth potential, best practices and benefits 9 Contacts and authors 12 Further reading 13

About the methodology

Between August and September 2017, Deloitte AG conducted a survey of 55 CFOs of Swiss consumer and industrial companies about the challenges and opportunities they are facing in the current global trade environment and how Global Trade Management (GTM) can enable growth for their . The CFOs are all familiar with global trade issues and regularly participate in the Deloitte CFO Survey in .

In addition, face-to-face interviews were conducted with global trade experts from Switzerland Global Enterprise, the German-Swiss Chamber of , GF Piping , ABB and other Swiss companies to validate the survey results. Statements made by representatives of Swiss companies that did not wish to be named or to have statements attributed to them have been anonymised. Global Trade Management | How can companies grow in an increasingly complex global trade environment?

Foreword

Welcome to Global Trade Management as a growth enabler, which examines the future growth prospects for Swiss consumer business and industrial companies in an increasing complex global trade environment. This paper builds on the results of our 2015 study, Growth opportunities – Strategies for Swiss companies, which identified a range of growth strategies.

In that initial study, we identified a range of growth strategies including engagement, going global, new services, , M&A and operational excellence. Growth enablers such as GTM for example, are key to their success, not only because they are linked directly to these strategies, but also enhance and accelerate them.

Companies that follow a ‘going global’ strategy for growth are faced with many opportunities – as well as risks – in the current global trade environment. While they can benefit from liberalising trade reforms and a large number of Free Trade Agreements, they can also be affected by new protectionist measures or discriminatory interventions by countries. Companies need to develop new skills and utilise to navigate this increasingly complex global trade environment and achieve future growth.

Based on a survey of Swiss CFOs with knowledge of global trade issues and face-to-face interviews with global trade experts from the Swiss government and private sector, we analysed key trade related issues for Swiss companies and also identified success factors such as the need for an adequate organisational structure, simplified processes, the right people and appropriate technology platforms.

We would like to thank everyone who agreed to be interviewed or who participated in our survey for their invaluable contributions. We hope this paper will stimulate discussion within your company and welcome your feedback.

Konstantin von Radowitz Markus Koch Managing Partner Head Strategic Development Consumer & Industrial Products Switzerland Consumer & Industrial Products Switzerland Deloitte AG Deloitte AG

1 Global Trade Management | How can companies grow in an increasingly complex global trade environment?

Summary and key findings

Negative impact of protectionism Protectionism seems to be on the increase, raising new challenges for Swiss companies. The number of the Swiss CFOs surveyed who see a 40% negative financial impact on their businesses has increased to 40% from 27% in 2016. However, there have always been periods of increased protectionism, think that protectionism and trade reforms of other so companies with global exposure need to learn to deal with these challenges countries have had a negative impact on the financial success of their company. and focus on growth opportunities in new markets.

Increased complexity of global trade With increased globalisation, the complexity of global trade has increased as well. Only 15% of the Swiss CFOs surveyed say the global trade environment 85% will remain the same and no one thought it will become less complex. Companies need to monitor regulatory changes, new liberalising measures or think the global trade environment will become increasingly trade barriers to succeed in a competitive global environment. complex in the next three years.

Utilise the benefits of FTAs Even though a large majority of the companies surveyed welcome the benefits of Free Trade Agreements (FTA), there is still potential to take better advantage 74% of these agreements. Higher administrative expenses, small cost and lack of know-how are seen as the main reasons why FTAs are not fully utilised, say that FTAs reduce complexity with their main especially among small and medium-sized companies. trading partners.

Greater scope for GTM or solution Of the 50% of Swiss companies that have a GTM system or partial solution in place, 27% utilise it very little, while only 19% utilise it somewhat and 4% to 50% a great extent. Large companies with greater global exposure tend to have more elaborate systems and solutions in place than small and medium-sized do not use a GTM system or solution for any aspect companies that often lack or financial . However, there is still of their and activities. the potential for many companies to use GTM as a key growth enabler.

More harmonised requirements to support growth Swiss companies have identified harmonised requirements between countries as a key external lever to support growth. Companies with strong 51% global exposure and footprints in many countries often face highly complex regulatory environments. More harmonisation with fewer trade barriers would think that harmonised requirements between countries in the simplify processes, optimise supply chain and save overall costs. context of GTM will best support the growth of their company.

More technology in support of growth Survey participants identified new technology as a key internal lever to support growth further. Companies can become far more efficient through automation 40% and digitalisation and many process steps in GTM can be automated and become faster. Companies will also become more transparent with improved think that more technology/automated systems in GTM will technology and will have to spend more time and resources for example on best support their company’s growth. short notice audits by authorities that focus on consistent monitoring and stricter implementation of existing regulations.

2 Global Trade Management | How can companies grow in an increasingly complex global trade environment?

1. Strategies and enablers for growth

Driving customer integration, going global, developing new services, innovating beyond products, growing inorganically and leveraging operational excellence have been identified in the Deloitte studyGrowth opportunities – Strategies for Swiss manufacturing companies as key strategies for growth for Swiss companies in the current economic climate and for the future (see Chart 1).

In addition to these six strategies that can help companies increase growth, there are additional key enablers for growth that are equally important. They complement and enhance these strategies and can be applied across the whole chain, from purchasing and , through to and distribution.

Chart 1. Strategies and enablers for growth

Six strategies for growth

1 2 3 Driving Going Developing customer global new integration services

4 5 6 Innovating Growing Leveraging beyond inorganically operational products excellence

Key enablers for growth

Global trade inancial Digital supply Cost & & management network profitability effectiveness GTM management management management management

Talent Cyber risk Data Sustainability Distribution & management management management management life cycle channel management management

Administrative Purchasing & production Sales & distribution

Focusing on Global Trade Management as a growth enabler is essential for companies that follow a ‘going global’ strategy and want to grow further in an increasingly complex global trade environment. However, modern GTM systems and solutions can also enable and enhance other strategies for growth, for example by supporting customer integration and feeding into operational excellence as the basis for growth.

3 Global Trade Management | How can companies grow in an increasingly complex global trade environment?

2. Global trade environment development

2.1 Challenges of protectionism and complexity Protectionism is once again in the spotlight in light of recent initiatives such as ‘America First‘, ‘Buy ‘ and ‘Make in India‘. The public perceives such measures as increasing protectionism thus raising new challenges. 40% of the Swiss CFOs surveyed think that protectionist measures of other countries negatively affected the financial success of their 40% company. Asked the same question at the end of 2016, only 27% indicated a negative effect. think that protectionism and trade reforms of other countries have had a negative impact on the financial success Independent observers of the commercial environment also note a high level of of their company. protectionism over the last few years. For example, since the Global Trade Alert initiative was launched in 2009, there has been an increase in discriminatory measures likely to impact Switzerland and fewer liberalising measures in most years (see Chart 2). “Protectionist tendencies

Chart 2. Trade measures of foreign countries affecting Switzerland are becoming more (2009-17, number of new liberalising and discriminatory interventions) acceptable, but the risk

300 that protectionism spirals out of remains 200 latent.” Ralf J. Bopp 100 CEO, German-Swiss Chamber of Commerce

0

-100 “The global trade environment has become -200 more complex from a

-300 Swiss perspective. While 2009 2010 2011 2012 2013 2014 2015 2016 2017 on the one hand, new Liberalising DiscriminatoryNet (Liberalising minus discriminatory) protectionist measures in Source: Global Trade Alert important target markets entail risks, on the other From a historical perspective however, there have always been periods of increased hand, the global increase protectionism, where countries have implemented initiatives aimed directly at strengthening local industries. in the number of markets with a growing middle Swiss companies with global exposure need to learn to deal with these challenges and focus on growth opportunities in new markets. In an increasingly globalised world, trade, class has created a variety too, has become increasingly complex. of opportunities.” Alberto Silini Head of Consultancy, Switzerland Global Enterprise

4 Global Trade Management | How can companies grow in an increasingly complex global trade environment?

It is therefore not surprising that 85% of the respondents think that the global trade “ is generally environment will become increasingly complex in the next three years, with only 15% saying it will stay the same and none of the respondents thinking it will become less seen as something complex. positive, as long as it is not

Looking at Switzerland’s top 30 export markets, Swiss companies have to understand impacting local industries and deal with on average 60 discriminatory measures that could pose risks and 28 negatively. In all countries liberalising measures that could provide export opportunities (see Chart 3). For the top two Swiss export markets, Germany and the US, since 2009 there have been 138 and 478 there are lobbyists who discriminatory measures respectively potentially affecting Swiss companies (liberalising try to create advantages measures: 38 for Germany and 109 for the US). for their sectors.” The increasing complexity of the global trade environment for Swiss companies is also Ralf J. Bopp illustrated by the fact that three out of four neighbouring countries that are key CEO, German-Swiss Chamber export markets as well as all the BRIC countries have above average liberalising and of Commerce discriminatory measures in place.

Chart 3. Interventions by top 30 Swiss export markets affecting Switzerland (2009-17, number of liberalising and discriminatory interventions, 2016 in CHF millions)

= 60 110 US

70 Brazil Russia

60 China

50 India

Austria 40 Liberalising Germany Spain UK Italy Czechia 30 Sweden Belgium Poland = 28 Hungary

20 S. Korea Australia Canada U.A.E 10 Turkey Singapore S.Arabia Hongkong Mexico Japan Thailand 0

Taiwan 0 20 40 60 80 100120 140160 480

Discriminatory

Neighbouring countries High income countries BRIC countries Upper middle income countries

Note: Only consumer and industrial product export figures. Source: Global Trade Alert; Federal Customs Administration 85%

Companies need to monitor the changing regulatory environment to detect not only think the global trade environment will become increasingly complex in potential risks, but also new opportunities at an early stage. the next three years.

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Looking in more detail at the top discriminatory interventions of foreign countries that “Besides the classic have affected Switzerland since 2009, the majority of instruments relate to requirements, measures or subsidies (see Chart 4). protectionist measures, like subsidies, customs The need for public procurement localisation (16% of all discriminatory interventions) is by far the number one measure that Swiss companies have to deal with when going tariff increases or global, followed by import tariffs (10%). localisation rules, Swiss

Tax or social relief (7%), trade , a financial grant, bail-out or businesses will have to loan (each 6%) complete the top seven and represent one-third of all discriminatory increasingly deal with measures affecting Switzerland. restrictions of their digital platforms in many key Chart 4. Discriminatory interventions affecting Switzerland (2009-17, intervention and instrument types, top 10, in %) markets in the future.” Alberto Silini Public procurement localisation 16% Head of Consultancy, Switzerland Global Enterprise Import tariff 10%

Tax or social insurance relief 7%

Trade finance 6%

Financial grant 6%

Bail-out ( injection 6% or equity participation)

State loan 6%

Tax-based export incentive 5%

Import-related non-tariff measure 4%

Loan guarantee 4%

0% 5% 10% 15%20% “Protectionism has not Procurement Tariff Subsidies Export Instrument necessarily increased, requirements measures (excl. export subsidies) subsidies unclear but the hot spots have Source: Global Trade Alert shifted – currently away from China and toward Both Swiss as well as foreign authorities provide information about countries new protectionist or liberalising measures. However, many companies do not avail themselves the US. If you do not have of such helpful information, as according to many trade and customs experts. The onus a niche product, you clearly rests on companies to keep themselves updated about regulatory changes and new developments. should participate in the global and learn to deal with protectionist measures to secure your market in the long term.” Steve Kunzelmann Head of Supply Chain Services, GF Piping Systems Ltd.

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2.2 Opportunities for free trade and liberalising interventions Besides the EFTA (European Free ) with Iceland, Liechtenstein and Norway, and the FTA with the EU, in the last five decades Switzerland has created a broad network of almost 30 FTAs with almost 40 partner countries outside the EU. In addition, 10 FTAs are currently being negotiated (see Chart 5). 74% Through these agreements, Swiss companies enjoy more stable, regulated and non- discriminatory market access to these countries compared to outside competitors. say that FTAs reduce complexity with their main trading partners. 74% of respondents say that FTAs reduce the complexity with their main trading partners, with only 8% viewing complexity as increasing (neutral: 18%).

Chart 5. Swiss Free Trade Agreements 2009 Canada (Since 1960, entry into force) Japan

2008 Egypt Botswana³ Lesotho³ Namibia³ South ³ Swaziland³ 2016 2007 Bulgaria² Georgia Lebanon Romania² 2015 Bosnia-Herzegovina 2006 Republic of Korea 2014 5 Tunisia Bahrain China Costa Rica4 2004 4 Chile Guatemala 4 Czech Republic² Honduras 5 Cyprus² Kuwait 5 Hungary² Oman 4 Estonia² Panama 5 Latvia² Qatar Saudi Arabia5 1999 Lithuania² Algeria Morocco Malta² 6 2013 Palestinian Authority Poland² Croatia² Brazil6 Slovakia² Ecuador 1973 Slovenia² Belgium² 1995 Austria² 2012 Hong Kong India Denmark² Faroe Islands Montenegro Indonesia France² Finland² 2003 Ukraine Malaysia Singapore 6 Germany² Sweden² Paraguay Ireland² 2011 Colombia Philippines 1986 Portugal² 2002 Jordan Italy² Peru Russia 1960 1993 Israel Iceland¹ Luxembourg² Spain² Macedonia Thailand Uruguay6 Liechtenstein¹ Netherlands² 2010 Albania 1981 1992 2001 Vietnam Norway¹ UK² Greece² Turkey Mexico Serbia

1960 – 1969 1970 – 1979 1980 – 1989 1990 – 1999 2000 – 2009 2010 – 2017 In negotiation

Note: ¹ EFTA (European Free Trade Association) convention; ² European Community (EC)/ (EU); ³ South African Custom Union (SACU); 4 Central American States; 5 Cooperation Council for the Arab States of the Gulf (GCC); 6 The MERCOSUR States.

Source: State Secretariat of Economic Affairs SECO

While overall the advantages of FTAs for many Swiss companies are clear, the benefits need to be put slightly into perspective, when taking company size and availability of resources into account: unlike large companies, small and medium-sized companies do not often have the resources and/or skills to utilise such agreements.

In addition, many trade and customs experts stress that what looks like reducing complexity at first, can become quite technical on the implementation side. Taking full advantage of FTAs can itself be a very complex process.

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Many Swiss companies often mention higher administrative expenses (e.g. provision “The main advantages of of documents, data adjustments for customs format, certificate of origin) or small cost savings (e.g. because of already low customs tariffs, small trade volumes) as the main Free Trade Agreements, reasons why FTAs are not useful for them. Otherwise, reduction of customs tariff and if used properly, are , more legal security, standards for clear trading rules and directives, protection of and implementation of uniform technical norms and manufacturing and certificates (e.g. ISO, IEC) are mentioned as main reasons why FTAs are useful. sourcing cost reduction,

Looking in more detail at the top liberalising interventions of foreign countries affecting maintaining quality Switzerland since 2009, the majority of instruments are either related to tariffs, quotas, standards and speeding migration, licensing or (see Chart 6). up the delivery chain. On the negative side, there Chart 6. Liberalising interventions affecting Switzerland (2009-17, intervention and instrument types, top 10, in %) are often complexities associated with Import tariff 31% determining the country Import tariff quota 14% of preferential origin.” Labour market access 10% Emilia Hautala Import licensing requirement 6% Senior Customs and Trade Specialist, ABB

Import-related non-tariff measure 6%

Export tax 6%

Export quota 4%

Internal taxation of 4%

Import quota 4%

Public procurement localisation 3%

0% 5% 10% 15%20% 25%30% 35%

Tariff Migration Licencing Instrument Procurement Quotas Taxes measures measures procedures unclear requirements

Source: Global Trade Alert “We actively leverage all Free Trade Agreements Import tariffs (31% of all liberalising interventions) are clearly the number one measure in Europe, Switzerland that Swiss companies can take advantage off when going global, followed byimport tariff quotas (14%). and the US. Utilising FTAs optimally is an Labour market access (10%), import licensing requirement (6%), import-related non-tariff measure (6%) and export tax (6%) complete the top six liberalising important competitive interventions affecting Switzerland. factor, without which the entering of a market with local providers would often not be possible.” Steve Kunzelmann Head of Supply Chain Services, GF Piping Systems Ltd.

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3. GTM: Growth potential, best practices and benefits Global Trade Management has the potential to enable growth. Through GTM, companies “Even though Switzerland can, for example, reduce risks, navigate barriers, improve screening, increase efficiencies, manage cost and guarantee supply chain security – and therefore enhance and accelerate sits in the midst of market growth. Europe, its relationship 51% of respondents identifiedharmonised requirements between countries and less with the EU is not complex/changing regulatory requirements as the two most important levers with regard to GTM that can best support their company’s growth (see Chart 7). The greater necessarily regulated for the global exposure of companies, the more complex the regulatory environment they the long term. This creates can face. More harmonisation with fewer trade barriers would increase planning security, simplify processes and save costs. ongoing uncertainty for

Chart 7. Survey result: GTM and growth businesses.” (Q3 2017) Ralf J. Bopp CEO, German-Swiss Chamber Harmonised requirements 51% of Commerce between countries

Less complex/changing 51%

External lever s regulatory requirements

Efficient internal systems/ 40% less manual processes

More technology/ automated systems 40%

Better visibility/ 50% 17% in trade transaction do not use a GTM system or solution Internal lever s for any aspect of their import and Clear, internal responsibilities 13% export activities.

Better skills/knowledge of employees 11%

0% 10% 20%30% 40%50% 60%

Question: Which levers with regard to Global Trade Management (GTM) can support best the growth of your company? (Please choose up to three). “The classification process Source: Deloitte CFO Survey can prove difficult in

In addition to the two external levers, 40% of the respondents think that internal Global Trade Management levers such as process efficiency and more technology and automated systems and is often political and are equally suited to support growth. Companies will become far more efficient and transparent through automation and digitalisation. Indeed, many process steps in GTM, outdated, when it should which are still being done manually today, can be simplified and sped up in the future. be more technical and Almost one-fifth of respondents (17%) think thattransparency in trade transactions recent. Smart devices is a growth enabler – and slightly more than one-tenth see a need for talent elements like clear responsibilities (13%) and better skills and knowledge (11%) as essential (with software) for to support growth through GTM. example are currently It is however surprising that half of all the Swiss companies surveyed do not have a GTM not properly reflected in system or solution in place for any aspect of their import and export activities. Of the remaining 50% that have a GTM system or solution in place to some extent, 27% utilise customs systems.” it very little, 19% utilise it somewhat and only 4% to a great extent. Generally, large Emilia Hautala companies with greater global exposure tend to have more elaborate GTM systems and Senior Customs and Trade Specialist, ABB solutions than small and medium-sized companies.

9 Global Trade Management | How can companies grow in an increasingly complex global trade environment?

Companies can face many challenges in global trade, ranging from an increased business “Global Trade Management dynamic and increased number of FTAs to changing trade sanctions, product related embargoes and a fragmented execution across 3PLs, customs and freight has always been very forwarders. In addition, companies must deal with various internal IT solutions for customs complex and this has processes as well as customs authorities’ improved IT capabilities and control measures. not increased per se. These challenges can cause problems with increasing regulatory requirements, short However, audits have notice customs audits and findings. They can also provide opportunities. For example companies can take advantage of FTAs, increase their flexibility with the help increased, due to of partners, extend the potential for sales into new markets and utilise enterprise data for improved technology at supply chain optimisation. customs authorities which To solve the problem before it gets too expensive and to cope especially with the allows for more consistent challenges of compliance, companies need to conduct ongoing analysis, simplification, harmonisation and rationalisation in their GTM processes (see Chart 8). monitoring and stricter implementation of existing Chart 8. GTM best practices regulations.” Steve Kunzelmann Head of Supply Chain Services, GF Piping Analysis Simplification Systems Ltd.

Find the root by analysing: Simplify processes, organisation and technology by: •• customs processes • agreeing on one single standard •• use of applications • or instance, e.g. utilising the best •• organisational set-up company standard •• people management •• removing duplications •• doing things one way S is im ys p l l a ifi n c A a t io n

R

a t i o n a n l o is i a t t a io is Rationalisation n on Harmonisation arm Make it the lowest cost H Find a common business operating by: language by: •• having the right people doing the •• agreeing on ways of working between most appropriate tasks functions and •• agreeing on who takes decisions and •• streamlining process execution “The requirements for the how •• filling gaps in processes, organisation •• using process oriented applications or technology position of a global trade vs. applications oriented processes •• having common IT platforms to enable the above manager have increased a lot in recent years and it is difficult to find the right

To achieve best practice in Global Trade Management companies need to undertake root people. Many companies cause analysis, simplify processes and technology, and focus on business language and have therefore to train cost consciousness. their own people.” Having the right people with the right skills in place is key. However, many respondents Emilia Hautala pointed out that it is often very difficult to find the right talent with expertise in customs Senior Customs and Trade Specialist, ABB matters, FTAs and export activity because specially tailored and training programmes rarely exist.

10 Global Trade Management | How can companies grow in an increasingly complex global trade environment?

The potential benefits of GTM includecost reduction, management oversight and “Swiss SMEs show great control, and and compliance (see Chart 9). in Free Trade Chart 9. Benefits of GTM Agreements, but do not always utilise them Management oversight and Cost reduction control fully. This is in part due •• Utilise cost regimes such as •• Manage at a global and strategic level to the fact that they bonded procedures, preferential •• Gain transparency of costs and cost rates and customs simplification saving opportunities underestimate the •• Control flow of funds •• Manage cross-border trade Managem concrete advantages of •• Optimise trade flow •• Manage market entry •• Reduce landed cost FTAs, equate them with •• Optimise network ent oversight high administrative efforts and lack know-how for practical implementation.” a nd control Alberto Silini Cost reduction Head of Consultancy, Switzerland Global Enterprise

Compliance and risk management

Compliance and risk management

•• Manage multiple complex requirements across a number of jurisdictions (trade compliance) •• Reduce the risk of fines and penalties (brand protection) •• Adapt to continually changing environments, e.g. country-specific legal “The European implications of new markets, new security programs and requirements Commission pushes electronic solutions that A 360-degree compliance control will help companies to manage increasing global trade complexity, comply with various import and export regulations, and prepare for should make life easier government audits. An optimised data organisation will increase a company’s ability on paper. However this to properly manage, , control and report international costs and customs duties. Improving existing business processes and the systems they are based on will further is not always the case. ensure cross-functional and cooperation. As a result, a company will be For example, the new more flexible to change supply chain processes and transaction structures. European Customs Code does not reflect business processes such as warranties or return-deliveries of European manufacturing which creates complications.” Emilia Hautala Senior Customs and Trade Specialist, ABB

11 Global Trade Management | How can companies grow in an increasingly complex global trade environment?

Contacts and authors

Contacts Authors

Konstantin von Radowitz Markus Koch Managing Partner Head Strategic Development Consumer & Industrial Products Consumer & Industrial Products Switzerland Switzerland +41 (0)58 279 64 57 +41 (0)58 279 61 33 [email protected] [email protected]

Ekaterina Kostova Dr Philipp Merkofer GTM Lead Consulting Consumer & Industrial Products +41 (0)58 279 63 50 Research [email protected] +41 (0)58 279 60 46 [email protected]

Hevin Demir Global Trade Advisory +41 (0)58 279 69 02 [email protected]

12 Global Trade Management | How can companies grow in an increasingly complex global trade environment?

Further reading

Consumer & Industrial Products Switzerland

Industry 4.0 Growth opportunities Challenges and solutions for the Strategies for Swiss digital transformation and use manufacturing companies of exponential A joint study by Deloitte and BAKBASEL White Paper on Swiss Audit. Tax. Consulting. . November 2015 Innovation reinvented Manufacturing Audit. Tax. Consulting. Financial Advisory. Challenges and prospects Challenges and solutions for in global competition Switzerland’s manufacturing industry

Audit. Tax. Consulting. Corporate Finance. Audit. Tax. Consulting. Corporate Finance.

White paper Innovation reinvented Industry 4.0 Growth opportunities Future digital manufacturing readiness

Why Deloitte? Global Trade ExcellenceGlobal trade and customs Managing Customs & Global Trade successfully means… Our eminence in the area of Global Trade and Customs

• 360 degree compliance control: implementation of internal control and compliance Global Trade Excellence Why Deloitte? Deloitte is at the Managing Customs & Global Trade successfully means… Our eminence in the area of Global Trade and Customs

• 360 degree compliance control: implementation of internal control and compliance EMEA Consulting 2020 processes toDeloitte is at thediminish unnecessary costs and penalties. forefront of developing processes to diminish unnecessary costs and penalties. forefront of developing Capability Build thoughtware and In addition, to keep • Global trade complexity management: support companies to comply with various import publications for customs our clients informed, and export regulations on an international level and to be prepared for government audits. and global trade. we hold periodic EMEA Centres of Excellence webcasts and publish thoughtware and • Optimised data organisation: enlarge a company’s ability to properly manage, plan, control The Deloitte The SAP GTS (Global Trade Services) CoE In addition, to keep articles on and report costs and customs duties. comprising experts with both technical skills developments and emerging trends and • Improvement of existing business processes and the systems they are based on: ensure and deep regulatory • Global tradeknowledge deliverscomplexity issues. management: support companies to comply with various import cross-functional communication and cooperation. As a result, a company is flexible to publications for customs excellent solutions to our clients informed, change supply chain processes and the according transaction structure. meet our clients’ needs. and export regulations on an international level and to be prepared for government audits. and global trade. we hold periodic Our Swiss Global Trade expert team

Benno Suter Markus Koch Partner Partner Indirect Tax Consulting webcasts and publish • Optimised data organisation: enlarge a company’s ability to properly manage, plan, control The Deloitte team Jonathan Baumeler Alexei Koifman articles on indirect tax Assistant Manager Building to share, Customs & Global Trade Consulting comprising experts with Our services for you and report international trade costs and customs duties. playing to win • Global trade and compliance strategy definition developments and Hevin Demir Ekaterina Kostova • Maturity assessments and compliance checks on global trade processes Senior Manager Senior Manager both technical skills Customs & Global Trade GTM Lead Consulting • Identification of major cost drivers and cost-saving opportunities by executing global [email protected] [email protected] trade analytics +41 58 279 6902 +41 58 279 6350 emerging trends and • Due diligence checks on customs declarations and deep regulatory • GTM software strategy, business case and tool selection • Improvement of existing business processes and the systems they are based on: ensure • Design and deployment of global trade systems including: issues. – Free Trade Agreements and Country of Origin calculation Untapped potential Deloitte refers to Deloitte Touche Tohmatsu Limited ( "DTTL"), a "UK private company limited by guarantee" (a limited liability company under UK ) knowledge delivers and its member companies, which are legally separate and independent. A detailed description of the legal structure of DTTL and its member companies – Sanctioned Party Lists screening can be found on our website at www.deloitte.com/ch/about. Deloitte’s Customs and Deloitte AG is a subsidiary of Deloitte LLP, the member companies in the of DTTL. Global Trade Management Global Trade Management – Automated filing of declarations cross-functionalDeloitte AG is one of the Federal Audit Oversight Authority (RAB) and the Swiss Financialcommunication Market Supervisory Authority FINMA authorized and supervised and cooperation. As a result, a company is flexible to auditing company. Benchmarking Survey Report excellent solutions to – Proprietary country specific GTS packages This publication is written in general terms and therefore can not in concrete cases be used as a reference basis. The application of the principles listed Audit. Tax. Consulting. Financial Advisory. here depends on the circumstances and we encourage you to seek professional advice before acting or refraining from acting on the content of this • GTM application maintenance and operations publication. Deloitte AG will advise you how to apply the principles in this publication to their specific circumstances. Deloitte AG accepts no responsibility and accepts no liability for losses which might arise if a person on the basis of the information in this publication shall take any action or refrain. change© Deloitte supply AG 2016. All rights reserved. chain processes and the according transaction structure. meet our clients’ needs. GTM services GTM benchmarking SAP GTS (Global Trade Implementing SAP GTS and Switzerland survey Services) EMEA CoE customs valuation country guide Our Swiss Global Trade expert team

Benno Suter Markus Koch Partner Partner Indirect Tax Consulting

Jonathan Baumeler Alexei Koifman Assistant Manager Director Customs & Global Trade Consulting Our services for you

• Global trade and compliance strategy definition Hevin Demir Ekaterina Kostova • Maturity assessments and compliance checks on global trade processes Senior Manager Senior Manager Customs & Global Trade GTM Lead Consulting • Identification of major cost drivers and cost-saving opportunities by executing global [email protected] [email protected] trade analytics +41 58 279 6902 +41 58 279 6350 • Due diligence checks on customs declarations • GTM software strategy, business case and tool selection • Design and deployment of global trade systems including: – Free Trade Agreements and Country of Origin calculation Deloitte refers to Deloitte Touche Tohmatsu Limited ( "DTTL"), a "UK private company limited by guarantee" (a limited liability company under UK law) and its member companies, which are legally separate and independent. A detailed description of the legal structure of DTTL and its member companies – Sanctioned Party Lists screening can be found on our website at www.deloitte.com/ch/about. 13 Deloitte AG is a subsidiary of Deloitte LLP, the member companies in the United Kingdom of DTTL. Global Trade Management – Automated filing of declarations Deloitte AG is one of the Federal Audit Oversight Authority (RAB) and the Swiss Supervisory Authority FINMA authorized and supervised auditing company.

– Proprietary country specific GTS packages This publication is written in general terms and therefore can not in concrete cases be used as a reference basis. The application of the principles listed Audit. Tax. Consulting. Financial Advisory. here depends on the circumstances and we encourage you to seek professional advice before acting or refraining from acting on the content of this • GTM application maintenance and operations publication. Deloitte AG will advise you how to apply the principles in this publication to their specific circumstances. Deloitte AG accepts no responsibility and accepts no liability for losses which might arise if a person on the basis of the information in this publication shall take any action or refrain.

© Deloitte AG 2016. All rights reserved. This publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte AG accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

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