ICC Raises Concerns Over WTO Customs Database Misuse

Published on October 28, 2014

The World Trade Organization (WTO) held an informal workshop in Geneva on October 27 about valuation databases and reference pricing serving. The forum provided an occasion to share experiences and perspectives on the use of customs valuation databases. The International Chamber of Commerce (ICC) was welcomed as the only non-governmental actor and as the representative of the trade community.

The long-anticipated event was the result of several ICC appeals to the WTO and World Customs Organization (WCO), over the past two years, to address the misapplication of valuation databases to set reference and minimum prices. The closed workshop was attended by approximately 100 participants comprising WTO delegates, representatives of the WCO and Customs agencies.

During the workshop ICC provided business views which offered valuable insights on the use of customs valuation databases. Mark Neville (International Trade Counsellors), a member of the ICC Commission on Customs and Trade Facilitation, raised ICC’s concerns on the proliferating misuse of valuation databases. While acknowledging that these databases can provide a useful tool for risk assessment, Neville recounted traders’ experience and provided a number of country examples in which WTO members were using valuation databases to set reference and minimum prices – a practice prohibited by Article 7 of the WTO Customs Valuation Agreement.

“These practices are in violation of the positive basis of the price actually paid or payable which is the core principle of transaction value under the WTO Customs Valuation Agreement,” said Neville.

The workshop was the first time the WTO discussed the misuse of valuation databases. Following the event ICC will continue to actively engage with the WTO and the World Customs Organization as the issue evolves.

More info at ICC’s website.

Staff contact: Kristin Isabelli

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Customs Agencies and Business Community Join Forces on Trade Facilitation

Published on October 23, 2014

In the spirit of the strategic partnership between the International Chamber of Commerce (ICC) and the World Customs Organization (WCO), WCO Secretary General Kunio Mikuriya welcomed the ICC Commission on Customs and Trade Facilitation to WCO headquarters in Brussels for its fall 2014 meeting.

The meeting took place on October 16 and 17, and it gathered 50 participants from 20 countries to discuss ICC’s work on trade facilitation. Participants included large multinational companies such as Fedex, Diageo and Samsung, as well as chambers of commerce and business associations representing a large number of small- and medium-sized enterprises (SMEs).

Opening the meeting, Norman Schenk, vice president of global customs policy and public affairs at UPS and chair of the ICC Commission on Customs and Trade Facilitation, emphasized the importance of Customs-Business partnerships. Illustrating the transparent and constructive continuous dialogue between ICC and the WCO, several representatives and experts of the WCO secretariat, including WCO Deputy Director Compliance and Facilitation Heike Barczyk, participated in the commission’s deliberations on reducing barriers to cross-border trade.

Guest speaker Mikuriya recognized ICC as the longest standing partner of the WCO in the context of customs-business cooperation. He encouraged ICC to share its insight in emerging new business models and to provide advice on how border procedures should be improved to support a true business environment.

“Borders divide but customs connect,” he said. Pointing out the increasing significance of global value chains and e-commerce, ICC commission members emphasized the importance of taking into account the experiences of SMEs’ while addressing bottlenecks hampering cross-border trade. Improved border and customs measures could trigger a 60 to 80 percent increase in cross-border SME sales in some economies, according to research. Bringing SMEs into trusted trader programs and allowing them to have a voice will be key to moving forward

Addressing the impasse on ratification of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA), Mikurya said: “Regardless of what happens with the TFA, in the short term we will push for trade facilitation.”

It is noted that while the TFA is a WTO agreement, 85 percent of the articles will have to be implemented by border agencies and the WCO Mercator Program offers a practical framework to ensure consistent implementation. While WTO negotiators are trying to address the political bottlenecks in Geneva, Customs agencies and the business community remain natural allies in enhancing trade facilitation.

“We want to stress the importance of moving forward on trade facilitation regardless of what happens at the World Trade Organization with the TFA,” said Kristin Isabelli, USCIB’s director for customs and trade facilitation. “The WCO will be moving the ball forward on trade facilitation, and we’ll be ready to support them any way we can.”

ICC launched an intense advocacy campaign to mobilize its global business network to push for ratification of the TFA signed in Bali in December 2013. Highlighting the diversity of the members of the commission – both geographically and in ideas and views – the commission chair reconfirmed ICC’s support to work together with customs around the globe to drive economic growth. “ICC can help connect the dots in bringing the different groups together: customs, trade and other government agencies,” said Schenk.

Staff contact: Kristin Isabelli

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ICC Appoints New Vice Chair of Commission on Customs and Trade

Published on October 2, 2014

The International Chamber of Commerce (ICC) announced the appointment of Luis Fernando Barbosa Sahagun as the new vice chair of the Commission on Customs and Trade Facilitation.

Barbosa is a partner at Global Business-Customs Solution Consulting Group (Mexico), a member of the International Customs Law Academy in Spain, and a businessman in international trade and customs holding board positions in several Mexican oil and gas companies.

As current chairman of the ICC Mexico Commission on Customs and Trade Facilitation, he liaises with the national authorities on behalf of the Mexican business community to improve the country’s customs and logistical operations and enhance trade facilitation.

“The ICC Commission on Customs and Trade Facilitation stands to benefit greatly from Barbosa’s broad expertise in areas relating to international trade, customs and logistics, as well as from his close relationships with chambers of commerce and industry representatives in Latin America,” said ICC Secretary General John Danilovich.

Trade Facilitation in Asia

Published on August 18, 2014

Kristin Isabelli (far right) moderated a workshop on chokepoint 8 titled “Lack of Regional Cross-Border Customs-Transit Arrangements.”

Government and private-sector representatives convened in Beijing for the Asia Pacific Economic Cooperation (APEC) Senior Officials’ Meetings throughout August to discuss how to support sustainable economic growth and prosperity in the Asia-Pacific region.

USCIB participated in a number of meetings regarding customs matters. Kristin Isabelli, director of Customs and Trade Facilitation, moderated a workshop on chokepoint 8 and the private sector’s vision on the benefits of implementing proposed guidelines that would streamline cross-border trade among APEC economies. USCIB also participated in meetings that allowed business to weigh in on APEC chemicals regulation.

Chokepoint 8 addresses the lack of the lack of regional, cross-border customs transit arrangements between third party non-APEC countries. When goods transit through third party countries as they travel from one APEC country to another, there is currently no way to track the goods. Each country requires different documentation for the goods in transit, which makes moving goods more time-consuming and expensive for business. The goal of the proposed chokepoint 8 guidelines is to streamline and harmonize the required documentation, promote harmonized border transit agreements among economies and eliminate the need to undergo customs for cross border customs transit.

Isabelli’s panel addressed the lack of transit arrangements and customs harmonization in the APEC region and allowed the private sector to discuss some of the infrastructural, logistic, technological and capacity-building issues that hamper the smooth flow of goods and services between APEC economies. Businesses support the establishment of regional cross-border transit arrangements that would slash red tape at customs, enhancing efficiency throughout the supply chain and facilitating trade and economic growth. Securing such agreements requires the collaboration of all APEC economies.

This year’s third APEC Senior Officials Meetings also marked the first meeting of the customs public private sector virtual working group, of which Isabelli is the private sector co-chair. The meeting convened members of the business community, including Ralph Carter (FedEx), and customs officials to discuss a list of priorities that would complement the work of the APEC Subcommittee on Customs Procedures (SCCP), including e-commerce, single window – a system whereby traders can submit regulatory documents to a single location –and trusted trader programs. The subcommittee’s objectives are to simplify and harmonize regional customs procedures to ensure that goods and services move efficiently and safely through the region.

Staff contact: Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee

More on USCIB’s APEC Working Group

Worrying Rise in Coastal Sea Hijackings

Published on July 25, 2014

Globally, 116 incidents of piracy and armed robbery against ships were reported to the Piracy Reporting Center of the International Chamber of Commerce International Maritime Bureau (IMB). The center raised concerns over a worrying trend of small tanker hijacks during the first half of 2014.

In Southeast Asia, reports indicate at least six coastal tankers were hijacked for their cargoes of diesel or gas oil, sparking fears of a new trend in pirate attacks. Before these hijackings, the majority of attacks in the region had been aboard mainly anchored vessels boarded for petty theft.

“The recent increase in the number of successful hijackings is a cause for concern,” stated IMB Director Pottengal Mukundan. “These serious attacks have so far targeted small coastal tankers. We advise these vessels to maintain strict anti-piracy measures in these waters, and to report all attacks and suspicious approaches by small craft.”

In 2014, 10 vessels have been hijacked, seven fired upon and 78 boarded. Two hundred crewmembers were taken hostage, five were kidnapped and two were killed, according to the IMB report.

Trade Facilitation Off to Good Start Says WCO Director

Published on June 20, 2014

Speaking to over 40 members of the International Chamber of Commerce (ICC) Commission on Customs and Trade Facilitation last week, World Customs Organization (WCO) Director of Compliance and Facilitation, Gaozhang Zhu said he was optimistic about the implementation of the World Trade Organization (WTO) Agreement on Trade Facilitation adopted at the WTO’s Ninth Ministerial Conference in Bali at the end of 2013.

USCIB’s Kristin Isabelli attended last week’s meetings and reported on the Global Trade Facilitation Agreement Coalition – a partnership between USCIB, the U.S. Chamber of Commerce, the National Foreign Trade Council and the Express Association of America – in helping to move the agreement forward.

On behalf of its global network reaching 6.5 million companies worldwide, ICC was steadfast in its campaign to push for improvements in trade facilitation which, according to an ICC report, could boost the world economy by $1 trillion annually and result in job gains of 21 million.

“Because most articles of the WTO’s Agreement on Trade Facilitation will be implemented by Customs agencies, the WCO is well-positioned to drive the trade facilitation agenda,” Zhu said. “The aim is to secure a resilient supply chain. We are off to a good start but the hard work is just beginning.”

Business Coalition Action on WTO Trade Facilitation Agreement

Published on June 13, 2014

The proposed World Trade Organization (WTO) Agreement on Trade Facilitation holds the potential to significantly bring down transaction costs borne by business and consumers.

WTO members recently reached a consensus on the agreement at the Bali Ministerial Conference in December 2013. If the agreement finally passes after almost a decade of negotiations, it could increase global GDP by over $1 trillion.

Kristin Isabelli,USCIB’s director of customs policy, attended an ICC Trade Facilitation and Customs Commission meeting in Paris from June 12 to 13, where she showcased the work of the Global Trade Facilitation Agreement Coalition – a partnership between USCIB, the U.S. Chamber of Commerce, the National Foreign Trade Council and the Express Association of America – in helping to move the agreement forward. Isabelli also serves as ICC’s representative to the World Customs Organization’s Harmonized System Committee.

The international business community, represented by the Global Trade Facilitation Agreement Coalition, has much to gain from the WTO trade agreement. The agreement is estimated to cut the cost of trade by 10 percent in developed countries and by 15 percent in developing countries. It will also create new jobs and slash red tape at the border. The coalition came together to organize private sector interests and to develop a strategic action plan to optimize the agreement’s implementation.

Isabelli noted that the coalition seeks to work closely with the International Chamber Commerce (ICC), the WTO and the World Customs Organization and stressed the importance of working with different countries’ local business communities.

“The agreement is going to be a heavy lift,” said Isabelli. “We want our coalition to be a global initiative.”

The coalition aims to be inclusive within the business community and plans to coordinate among the private sector and among the WTO member governments. Given that the agreement’s implementation will take a long time, Isabelli described the process as a “marathon versus a sprint,” and that business needs to be prepared to put its energies into the agreement for the long term.

“We are working very closely with our own government, and they are thrilled that we are setting up this coalition,” Isabelli said of the U.S. government. “They want to work closely with us.”

Staff contact: Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee

ICC Survey to Assess SupplyChain Bottlenecks

Published on November 27, 2013

The International Chamber of Commerce (ICC), through its Commission on Customs and Trade Facilitation, has launched an effort to identify the real-world issues business experiences in import and export that add cost, time and uncertainty to global supply chains. In order to assess these barriers, ICC has created a 10-question survey and is inviting companies of all sizes to complete it.

Please note that the survey will close on December 31. A full report will be written thereafter and shared with policy makers, provided the response is sufficiently broad.

Staff contacts: Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee

IMB Piracy Report Highlights Violence in West Africa

Published on July 15, 2013

Somali piracy has fallen to its lowest levels since 2006, focusing attention on violent piracy and armed robbery off the coast of West Africa, the International Chamber of Commerce International Maritime Bureau (IMB)’s global piracy report revealed today.

Worldwide, the IMB Piracy Reporting Centre (PRC) recorded 138 piracy incidents in the first six months of 2013, compared with 177 incidents for the corresponding period in 2012. Seven hijackings have been recorded this year compared with 20 in the first half of 2012. The number of sailors taken hostage also fell dramatically; down to 127 this year from 334 in the first six months of 2012.

In the Gulf of Guinea, in addition to a rise in piracy and armed robbery – 31 incidents so far this year, including four hijackings – IMB reports a surge in kidnappings at sea and a wider range of ship types being targeted. This is a new cause for concern in a region already known for attacks against vessels in the oil industry and theft of gas oil from tankers.

“There has been a worrying trend in the kidnapping of crew from vessels well outside the territorial limits of coastal states in the Gulf of Guinea,” said Pottengal Mukundan, director of IMB, which has monitored world piracy since 1991. “There continues to be significant under-reporting of attacks – a phenomenon highlighted by the IMB year on year. This prevents meaningful response by the authorities and endangers other vessels sailing into the area unaware of the precise nature of the threat.”

Mr. Mukundan applauded the signing of the Code of Conduct Concerning the Repression of Piracy, Armed Robbery Against Ships, and Illicit Maritime Activity in West and Central Africa in June 2013 by the heads of the West and Central African countries.

Latest attacks may be viewed on the IMB Live Piracy Map.

Click here to read more in ICC’s website.

Staff contact: Nasim Deylami

More on USCIB’s Transportation Committee

ICC Activates Integrated Approach to Trade Facilitation

Published on April 16, 2013

Anthony Barone of Pfizer chairs ICC’s Commission on Customs and Trade Facilitation.

At the Paris headquarters of the International Chamber of Commerce (ICC) this week, a new ICC Commission on Customs and Trade Facilitation held its first meeting, establishing an agenda to expand the world business organization’s work on trade facilitation to include international multi-modal transport and logistics issues.

Providing a global, cross-industry business forum, the consolidated commission seeks to take an integrated approach to trade facilitation, encouraging issue consolidation and coherence in ICC policy-making that is in line with ICC’s ultimate objective of facilitating global trade.

The commission is chaired by Anthony Barone, director of global logistics policy with Pfizer Inc. “The objective of the new commission is to identify strategic issues that will have a material impact on trade,” noted Barone. “Ideally we would like to achieve significant modernization rather than incremental steps.”

USCIB members will play an active role in the commission’s work, both directly and via USCIB’s very active Customs and Trade Facilitation Committee, which is chaired by Jerry Cook (HanesBrands).

“Determining procedures to facilitate trade by combining the expertise of specialists in customs and transport is a tremendous contribution to world trade and therefore to job creation,” said ICC Secretary General Jean-Guy Carrier. “ICC is enthusiastic about the potential of this new approach to attract new member companies to our work, as they see for themselves the advantage of working together.”

Commission projects for 2013 include producing guidelines for traders and providing input on customs valuation and classification to the World Customs Organization.