Megan Giblin Archives

ICC Seminar to Shed Light on Transfer Pricing and Customs Valuation

Published on September 20, 2012

green map digitalFollowing the release of an International Chamber of Commerce (ICC) policy statement on the issue in May this year, the ramifications of Transfer Pricing and Customs Valuation on global business will be the focus of an ICC seminar to take place on October 25.

Hosted by Fasken Martineau DuMoulin in Montreal, the seminar seeks to garner views on the subject by outlining the current situation and explaining ICC’s position and recommendations while deepening the debate with lawyers, compliance officers, and representatives from other international organizations.

Six panels of experts will tackle regional and international problems of transfer pricing and discuss the conflicts between taxes and customs duties. The day-long, dynamic event offers a unique opportunity to voice views and hear the perspectives of panelists and participants alike.

Click here to view the agenda or register now.

Staff Contact: Kristin Isabelli

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ICC Tackles Transfer Pricing and Customs Valuation

Published on May 14, 2012
"Transfer Pricing and Customs Valuation" will help simplify regulations and also to clarify rules
“Transfer Pricing and Customs Valuation” will help simplify regulations and also to clarify rules

ICC recently issued a policy statement on “Transfer Pricing and Customs Valuation” aimed at supporting companies that face the challenge of determining the appropriate related party valuation of goods.

These parties are subject to customs and fiscal examinations and thus are bound by differing laws, rules and contradictory interests. ICC believes that these examinations should yield the same value, and that a resolution to the problem is in the interests of all concerned.

The ICC Commission on Taxation has produced many proposals aiming to secure harmonized tax and customs valuation of transactions between related parties in an international context.

These proposals are designed to help simplify regulations for companies and administrations and also to clarify rules for both parties so as to reduce financial impact linked to divergent valuation.

Compliance costs to companies would be reduced if tax and customs administrations were to accept and implement these proposals. The policies could also minimize the risk of penalties resulting from opposing views between customs and tax authorities.

The statement is set to be presented to governments and relevant international organizations shortly.

Staff Contact: Kristin Isabelli

View the statement

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Anthony Barone Appointed Chair of ICC Customs and Trade Regulations Committee

Published on April 10, 2012
Anthony Barone, chair of the ICC Committee on Customs and Trade Regulations, is set to advance the committee’s work program
Anthony Barone, chair of the ICC Committee on Customs and Trade Regulations, is set to advance the committee’s work program

The International Chamber of Commerce (ICC) has appointed the Director of Global Logistics Policy at Pfizer, Anthony Barone, as chair of its Committee on Customs and Trade Regulations. Having served as vice-chair of the Committee for one year, Mr. Barone will be able to further facilitate the committee’s advancement with his newly appointed title.

In his new role, Mr. Barone is set to advance the committee’s work program and expedite the advancement of new policies. The committee’s work focuses on customs reform, with the aim of simplifying and harmonizing customs policies and procedures so as to overcome barriers to trade.

Mr. Barone draws on extensive experience in the field of customs and trade. He was a consultant in international logistics and trade finance before joining Pfizer, the world’s largest research based bio-pharmaceutical firm, in 2001. He also held senior positions in third party logistics industry and with supply chain IT providers. Mr. Barone is currently a member of the New Jersey Export District Council of the US Department of Commerce. He graduated from Columbia University with an MBA in Management.

With Mr. Barone’s leadership, ICC is hosting a Symposium on Trade Facilitation June 13-14 in Mexico City, Mexico.  The symposium aims to bring together representatives of the private sector and customs administrations to discuss the most significant and practical issues related to trade facilitation, such as challenges of global supply chains, globally networked customs, balancing security and trade facilitation, trusted trader programs, resolving the conflict between tax and customs valuations, counterfeiting and piracy in customs, integrated border management, and emerging market issues, to name a few.  Several members of the USCIB Customs and Trade Facilitation Committee, including Mr. Barone, will be speakers at the symposium including John Bescec (Microsoft), Eugene Laney (DHL), William Methenitis (Ernst & Young), and Todd R. Smith (KPMG).

In addition to the work of the ICC Customs and Trade Regulations Committee, the USCIB Customs and Trade Facilitation Committee has been tracking recent developments in Argentina, particularly the implementation of measures taken by the Government of Argentina to limit the entry of U.S. and other foreign-sourced products and services into that market. USCIB, along with several other organizations, sent a letter to USTR Ron Kirk and Deputy Assistant to President Obama Michael Froman, expressing concerns over the gravity of these measures, and pledging support to the U.S. government and partners in their effort to address the issues that are being faced in Argentina. ICC also recently sent a letter to the Government of Argentina requesting reconsideration of General Resolution 3252/2012, the Advance Import Affidavit that went into effect on February 1, 2012. USCIB has also continued engaging with the U.S. and Canadian governments on the U.S.-Canada Beyond the Border Action Plan, released by President Obama and Prime Minister Harper on December 7, 2011.  USCIB has shared its priorities on the trade facilitation aspects of the Action Plan with U.S. Customs and Border Protection, Canadian Border Services Agency, Canadian Trade Minister Ed Fast, and Special Assistant to President Obama, Patty Cogswell.

Staff Contact: Kristin Isabelli

U.S. Association Letter to Ron Kirk and Michael Froman

ICC Letter to the Government of Argentina

U.S.-Canada Beyond the Border Action Plan

USCIB Trade Facilitation Priorities

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USCIB Shares its Trade Facilitation Priorities on US/Canada Beyond the Border Action Plan

Published on March 23, 2012

The USCIB Customs and Trade Facilitation Committee recently laid out its priorities on the trade facilitation aspects of the United States – Canada Beyond the Border Action Plan, released by President Obama and Prime Minister Stephen Harper on December 7, 2011. Click here for USCIB’s statement.

Work had been underway on the Action Plan since the February 4, 2011 announcement by President Obama and Prime Minister Harper on the United States-Canada joint declaration, Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness. The Action Plan lays out a shared approach to border security and economic competitiveness in which the United States and Canada work together to address the safety and security of our shared border, while expediting lawful trade and travel. The trade facilitation provisions establish steps, which upon implementation, will reduce costs and regulatory burdens, significantly enhance the flow of goods across the border, and facilitate trade and travel.

USCIB has shared its trade facilitation priorities with leaders of both the U.S. and Canadian teams leading the implementation efforts, and USCIB President and CEO Peter Robinson, met with Canadian Minister of International Trade, Ed Fast to convey USCIB’s support for the Action Plan and to emphasize interest, in particular, in Canada raising its de minimis level. USCIB applauds the effort to establish a long-term partnership between the United States and Canada, built upon a perimeter approach to security and economic competitiveness, and will continue to meet with officials on both sides of the border to engage in the implementation of the Action Plan.

U.S.-Canada Beyond the Border Action Plan

USCIB Trade Facilitation Priorities

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USCIB Customs Update

Published on September 22, 2011

USCIB’s Customs and Trade Facilitation Committee had a busy month of August, undertaking a number of actions in support of our goals of reducing trade barriers and transaction costs arising from customs and border control practices, and promoting global convergence and modernization of customs practices.  Here are some of the highlights.

USCIB President and CEO Peter Robinson sent a letter to Dan Restrepo, senior director for Western Hemisphere affairs on the National Security Council, expressing USCIB’s support for the February 4, 2011, declaration made by President Obama and Canadian Prime Minister Stephen Harper on perimeter security and economic competitiveness between the United States and Canada.  USCIB expressed support for the broader agenda of the Beyond the Border Working Group, but emphasized our support for the harmonization of the U.S. and Canadian trusted trader programs, the Customs Trade Partnership Against Terrorism (C-TPAT) and Partners in Protection, through the creation of a mutual recognition agreement.

Also in August, Mr. Robinson wrote to CBP Acting Assistant Commissioner Charlie Stallworth voicing USCIB’s concerns regarding the ongoing work at the World Customs Organization (WCO) related to establishing pre-departure cutoff times in the SAFE Framework of Standards for advance information on air cargo.  The WCO’s work came in response to a European Commission proposal to establish a four-hour prior to departure deadline for reporting advance information to customs authorities for air cargo shipments.  Mr. Robinson urged that imposing such a requirement would undercut the express industry’s economic model, which is driven by just-in-time deliveries of critical and high-value shipments, and expressed concern over conflicting approaches to air cargo security being taken by different customs authorities.

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USCIB Urges Closer Cooperation on Air Cargo Security

Published on July 8, 2011

In June, USCIB urged the heads of U.S. Customs and Border Protection and the Transportation Security Administration to work more closely to improve air cargo security, including taking other countries’ rules and regulations into account when implementing new air cargo security rules.

In a letter to Customs chief Alan Bersin and TSA Administrator John Pistole, USCIB President and CEO Peter M. Robinson commended the two agencies for working with the private sector to implement protocols and rules of engagement for the air cargo security program, and expressed hope that heightened interagency cooperation would continue to ensure a streamlined program.

On the international aspect of new security rules, Mr. Robinson wrote: “Although CBP recently suggested increasing the number of countries in the pilot program from 28 to 42 countries, … we urge that any increase be done with significant private sector consultation to ensure the proper consideration of issues such as timing and availability of information, volume of shipments for each country, as well as data privacy rules and regulatory hurdles in each country. USCIB urges CBP and TSA to assess the regulatory environment in other countries before increasing the scope of this pilot program.”

 

USCIB letter on air cargo security

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Global Business Seeks Coordinated Action to Curb Maritime Piracy

Published on July 8, 2011

Map_CompassAgainst the backdrop of ever-more aggressive forays by Somali pirates against shipping in the Indian Ocean, USCIB President and CEO Peter M. Robinson recently wrote to Secretary of State Hillary Clinton and other top administration officials involved in national security to draw attention to a global Call for Action on Piracy, issued by our affiliate the International Chamber of Commerce at the May 25-27 International Transport Forum in Leipzig, Germany.

ICC calls on governments to take immediate action to improve the rules of engagement given to the navies present in the Indian Ocean, to refocus the efforts of the United Nations and other international bodies to ensure that required institutions in south-central Somalia are established to maintain economic and social standards, and to hold pirates accountable for their conduct.

In the past year, there has been an escalation in both violence and the number of attacks on ships and crew in the area off the coast of Somalia. According to ICC’s International Maritime Bureau, there were 219 attacks off Somalia in 2010, in which 49 vessels were hijacked and 1,016 crew members taken hostage.

Despite measures taken by the UN Security Council and the presence of naval units in the area, pirates continue to strike with increasing violence. In addition to placing individuals and crews in danger, piracy is disrupting international trade and shipping. In 2010, the One Earth Foundation estimated the economic cost of piracy on the supply chain to be in the range of $7-12 billion.

In the call to action, ICC “urges governments to recognize that piracy, in addition to its effect on the safety of seafarers, has an important financial impact on global trade and shipping, and furthermore poses increased threat on the stability and security of energy supply lines not only for major industrial nations.”

The ICC Call for Action on Piracy has been endorsed by over 20 CEOs from key shipping and trading companies around the world.

 

ICC Call to Action on Piracy

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ICC and World Customs Organization Strengthen Partnership

Published on July 6, 2011

USCIB’s affiliate the International Chamber of Commerce and the World Customs Organization (WCO) have signed a revised memorandum of understanding that sets out working activities between the two parties.

The signing took place as part of a two-day conference, entitled Open Day for Trade, hosted by WCO at its headquarters in Brussels. The aim of the event was to encourage the sharing of information, knowledge and experience between leaders and experts from both the customs and business communities.

The previous memorandum of understanding, signed in 1996 by WCO and ICC, launched cooperative efforts for promoting and supporting efficiency in customs control and facilitation.

Read more on ICC’s website

 

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USCIB Makes Recommendations to Improve Customs “Trusted Trader” Program

Published on May 24, 2011

At a March 15 meeting with U.S. Customs and Border Protection (CBP) Commissioner Alan Bersin, USCIB presented a provisional list of 18 benefits envisioned for participants in CBP’s trusted trader program, the Customs-Trade Partnership Against Terrorism (C-TPAT).  In April, Commissioner Bersin shared his goal of quadrupling C-TPAT membership over the next five to seven years with the trade community at the 2011 CBP Trade Symposium.  The following day, at a joint meeting with the ICC Committee on Customs and Trade Regulations, the USCIB Customs Committee concluded that USCIB could help Commissioner Bersin meet this goal by finalizing its provisional list of C-TPAT benefits.

With the support of the American Association of Exporters and Importers (AAEI), USCIB has provided a final list of eighteen C-TPAT benefits to Commissioner Bersin.  In a May 17 joint letter, USCIB and AAEI encouraged CBP to strengthen C-TPAT, to focus its core benefits on the pre-trade and post-trade events of the supply chain, and to develop substantial commercial benefits for Tier 2 and Tier 3 C-TPAT participants.

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USCIB Members Engage With Customs Commissioner

Published on March 30, 2011
Customs and Border Protection officials meet with USCIB. From right: CBP Commissioner Alan Bersin, Assisant Commissioner for Trade Al Gina and Director of Trade Relations Maria Luisa O’Connell. (Photo: CBP)
Customs and Border Protection officials meet with USCIB. From right: CBP Commissioner Alan Bersin, Assisant Commissioner for Trade Al Gina and Director of Trade Relations Maria Luisa O’Connell. (Photo: CBP)

On March 15, USCIB members and staff met with U.S. Customs and Border Protection (CBP) Commissioner Alan Bersin and his senior staff as part of Commissioner Bersin’s Trade Day Agenda, to share USCIB’s priority recommendations for CBP.  USCIB was represented by Rob Mulligan, senior vice president for Washington, Cindy Duncan, senior vice president for Carnet operations, and Nasim Deylami, manager of customs and trade facilitation, plus member executives from Hanesbrands, Cisco, DHL Express, FedEx, Pfizer, the law firm of Sandler, Travis & Rosenberg, and the U.S. Chamber of Commerce.

The group applauded Commissioner Bersin for his outreach to the business community, and took the opportunity to highlight areas in which CBP could further strengthen its relationship with U.S. business.  Among its key priorities, USCIB encouraged CBP to strengthen its trusted trade program, the Customs-Trade Partnership Against Terrorism (C-TPAT), to focus its core benefits on the pre-trade and post-trade events of the supply chain, and to develop substantial commercial benefits for Tier 2 and Tier 3 C-TPAT participants.

USCIB provided Commissioner Bersin a provisional list of eighteen benefits envisioned for C-TPAT participants, which Commissioner Bersin welcomed, thanking USCIB for providing concrete goals for CBP to achieve. (This draft list will be finalized shortly.  USCIB members may click here to download the draft.)  During the discussion on benefits, USCIB also urged CBP to ensure that benefits of mutual recognition programs are realized by business as well as customs authorities.   Another key priority for USCIB is the implementation of a commercially acceptable air cargo security program, in which CBP and the Transportation Security Administration work together to support the creation of a security regime that simultaneously accounts for operational realities faced by importers and air carriers while protecting national security.

Commissioner Bersin pledged to study the air cargo security pilot programs currently underway to determine how they are impacting importers, and assured USCIB that CBP would work with TSA and business to implement a practical program.

The USCIB group also had the opportunity to thank CBP for positive steps the agency has taken toward increasing the current values for de minimis and informal entry shipments, and for the strong relationship CBP has maintained with ATA Carnet.  Ms. Duncan thanked CBP for its appreciation of ATA Carnet training conducted by USCIB.  She requested that CBP encourage the U.S. to accede to the WCO Istanbul Convention on Temporary Admission and take a leadership position on efforts to craft an eCarnet in the World Customs Organization or other forums.

Other issues discussed at the meeting included funding for the Automated Commercial Environment (ACE) program, interdiction of counterfeit medicines and general enforcement of intellectual property rights.

Commissioner Bersin also took the opportunity to share his goal of achieving the enrollment of 2.5 million people in the Global Entry trusted traveler program in three years.  He encouraged USCIB to share this goal with its membership and promised to expedite the enrollment process for interested members.  USCIB has already taken action by inviting CBP to make a presentation on Global Entry at the USCIB/ICC Customs Committee Meeting on April 15 in Washington.

Staff contact: Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee