US Small Business Speaks Up for Global Trade

tradematters_world_technologyInternational trade has gotten a bad rap in the U.S. electoral campaign and elsewhere around the world. Pushing back against the misconceptions around global trade is a key focus of the #TradeMatters campaign from the International Chamber of Commerce. A key feature of the campaign are testimonials from entrepreneurs and small business owners around the world explaining why trade matters to them, and how governments could make cross-border trade easier for small business.

World Technology Corporation, a New York-based exporter of environmentally friendly technologies, was recently featured in the campaign. Peter Tierney, the company’s managing director, said in his contribution to the campaign: “Exporting has helped our company stabilize its sales and provided a financial cushion during the last recession. People say what we do – exporting – is risky. We believe that not exporting in today’s global economy is a much riskier position to take.”

You can view World Technology’s posting on the ICC website here.

USCIB Statement on Impact of Brexit Vote on ATA Carnet

Last week’s UK vote to leave the European Union has spurred many questions regarding the country’s future trade and treaty commitments, including the ATA Carnet system for temporary imports. At this time, the UK remains a member of the EU, and the process for leaving the bloc has not yet begun. We have no indication of any changes affecting the use of ATA Carnets in the UK, or in the EU as a whole, for the foreseeable future.

The earliest Brexit could take effect is two years after a treaty mechanism has been triggered. The latter part of 2018 is considered the most likely date at the moment.

“In the meantime members of the chain can continue to issue ATA Carnets for the UK as part of the EU in exactly the same way as they do now.  The UK will continue issuing exactly as present as well.” said Peter Bishop, deputy chief executive of the London Chamber of Commerce and Industry.

As the U.S. National Guaranteeing Association for the global ATA Carnet system, USCIB is monitoring the situation closely, working with ICC and affected parties including our ATA Carnet Service Providers. We will provide updates as new information becomes available.

Brazil Ratifies Trade Facilitation Agreement

Brazil ratifies WTO Trade Facilitation Agreement (Credit WTO)
Brazil ratifies WTO Trade Facilitation Agreement (Credit WTO)

Ratification of the World Trade Organization’s (WTO) Trade Facilitation Agreement, which is estimated to create 21 million jobs and increase global GDP by $1 trillion over the next decade, is a top priority for USCIB. On March 29, Brazil became the 72nd WTO member to ratify the TFA, an agreement that was forged under the leadership of Brazilian WTO Director General Roberto Azevedo, whom USCIB honored with its 2014 International Leadership Award.

In order for the TFA to enter into force, 108 WTO members must ratify the agreement. Brazilian President Dilma Rousseff signed the Trade Facilitation Agreement during a high-level ceremony at the Palacio do Planalto in Brasilia with the attendance of Roberto Azevedo, who is visiting Brazil this week.

During his stay in the country, Roberto Azevedo will visit ICC Brazil – the ICC Brazilian Committee hosted by the Brazilian National Confederation of Industry (CNI) headquarters in Sao Paulo – and meet with CEOs from various sectors to analyze the potential benefits of the Agreement for Brazil.

Applauding this breakthrough development for trade facilitation, ICC Secretary General John Danilovich said: “Implementing the TFA gives Brazil, once one of the world’s fastest growing emerging market, an opportunity to reboot its economy by creating significant export diversification gains and reducing trade costs.”

Read the USCIB Customs Committee TFA one-pager.

USCIB, Deloitte Host Roundtable on Streamlining Transatlantic Customs

USCIB-Deloitte Event SpeakersWith the U.S. Customs Reauthorization bill having been recently signed into law, and the European Union (EU) preparing for the pending implementation of the changes to the Union Customs Code (UCC) this year, USCIB worked with Deloitte to put together a roundtable discussion about current issues facing transatlantic trade in the Customs space.

The event, titled “Strengthening Customs Efficiencies to Facilitate Trade and Investment: Current Dynamics Shaping Customs in the U.S. and the EU,” took place on the morning of February 17 at the Washington, D.C. offices of USCIB member General Electric. The off the record roundtable brought together business, government and other key stakeholder groups for an informal discussion on some of the key dynamics shaping customs policy in the U.S. and the EU and their impact on helping drive forward a strong and integrated transatlantic economy.

Speakers at the roundtable will included Jerry Cook (HanesBrands) Chair of the USCIB Customs Committee; Fernand Rutten (Deloitte) who briefed the committee on the UCC last month; Nasim Delami Fussell, Trade Counsel, House Ways and Means Subcommittee on Trade, and Christina Kopitopolous, Director, Customs and Trade Affairs, WTO and Multilateral Affairs Office, USTR. USCIB Director of Customs and Trade Facilitation Megan Giblin moderated the roundtable discussion.

“This was a very timely discussion that explored the opportunities and challenges in dealing with customs fit for the 21st century,” said Giblin. “The transatlantic voice has much to offer in helping shale a way forward.”

Participants talked about how the United States and the EU are working to streamline customs rules and regulations that are more appropriate for today’s global and digital marketplace. They addressed how such customs developments are aligning – or not – with the Trans-Atlantic Trade and Investment Partnership negotiations, the World Trade Organization Trade Facilitation Agreement and other trade liberalization initiatives to further integrate both economies.

Obama Signs Customs Bill, Now Focus Shifts to Implementation

Obama_Customs_BillPresident Obama signed the Trade Facilitation and Trade Enforcement Act, commonly referred to as Customs Reauthorization, into law on February 25, just two weeks after the Senate approved the bill. This bipartisan bill is the first true Customs modernization legislation in nearly two decades.

The legislation will strengthen trade enforcement at U.S. ports and borders, and update the organization and management of the U.S. Customs and Border Protection. The bill includes provisions that streamline and facilitate trade, reduce business costs and paperwork burdens, and provide an enforcement mechanism for trade agreements.

“It is timely then for us to be signing this bipartisan customs bill because it’s an important milestone in our trade agenda,” said President Obama at the signing ceremony. “This is an example of smart trade policy in the 21st century.”

USCIB has been a longtime supporter of Customs Reauthorization and has strongly advocated for policies that eliminate trade barriers, harmonize global customs and border procedures, as well as modernize outdate laws. The bill includes the following provisions: increased de minimis; updated returns processes; end of year 2016 ITDS deadline; specified CBP engagement with private sector; avoidance of US WTO compliance matter; improved IPR provisions (i.e., providing unredacted samples to rights holders); drawback simplification; and more!

“We welcome the signing of the Customs bill and thank the Administration and Congress for their hard work on this key bipartisan legislation that meets the needs of business,” said Megan Giblin, USCIB’s director for customs and trade facilitation. “Our focus on this bill’s provisions will now turn to implementation, and we look forward to working with the administration to ensure its success.”

USCIB Heads to Peru for APEC Policy Dialogues

APEC_PERUSupporting six million American jobs and hosting two thirds of the global middle class, the Asia-Pacific region is of great interest to the business community, as global companies are eager to tap the region’s growing markets. The Asia-Pacific Economic Cooperation (APEC) forum – the most influential economic dialogue in the region – continues to be a priority for USCIB members, as it is key to accelerating regional economic integration and promoting balanced, sustainable growth.

To aid private-sector engagement in the dialogue, USCIB works with the U.S. APEC business coalition to give members access to APEC officials and participate in APEC meetings throughout the year, culminating in the APEC CEO Summit, a meeting of CEOs and leaders from the APEC economies.

USCIB is in actively engaged in a number of the APEC working groups related to customs, product policy, and information and communication technologies. Each year, USCIB compiles an APEC priorities and recommendations paper to help direct and coordinate work with our members and APEC officials.

Three of USCIB’s policy team will be attending the upcoming first APEC Senior Officials Meeting (SOM 1) in Lima Peru, which began this past weekend.

Action on trade facilitation

Megan Giblin, USCIB’s director for customs and trade facilitation, will participate in the APEC Alliance for Supply Chain Connectivity (A2C2) and the Subcommittee on Customs Procedures meetings, and will identify linkages to the work underway within the USCIB Customs and Trade Facilitation Committee including, but not limited to, e-commerce, single-window efforts, and other aspects that tie directly to WTO TFA implementation.

Giblin was also confirmed last week as the industry Co-Chair to the APEC Subcommittee on Customs Procedures Virtual Working Group (VWG) along with the government of New Zealand. USCIB both helped create the working group and has facilitated its work, co-chairing the group, since its inception. The VWG is comprised of both customs officials and members of the private sector.

Smarter chemicals regulations

Helen Medina, USCIB’s vice president of product policy and Innovation will attend the APEC Chemical Dialogue (CD) meetings to support USCIB’s work and recommendations on a coordinated approach to implementation of the Globally Harmonized System of Classification and Labeling of Chemicals (GHS) and future GHS capacity building workshops. Medina will also support USCIB’s Customs priorities in the area of Chemical Import Procedures.

USCIB will continue to encourage work within the CD on metals risk assessment, specifically follow-up to the workshop on this topic in 2015 as well as the dissemination of pending OECD metals assessment scientific guidance as joint OECD-APEC guidance for APEC Economies.  Lastly, Medina will meet with the Lima Chamber of Commerce, Peru’s most representative organization promoting Peru’s global economic integration, to share USCIB priorities during the Peru host year and collaborate on areas of mutual interest.

Facilitating cross-border data flows

Barbara Wanner, USCIB’s vice president of ICT policy will participate in the SOM 1 meetings of the Electronic Commerce Steering Group (ECSG), with particular focus on the Data Privacy Subgroup. The meetings will focus on expanding APEC economies’ understanding of and participation in the Cross-Border Privacy Rules system (CBPR). The CBPR system requires firms in participating economies to develop their own internal business rules on cross-border data privacy procedures, complying with the system’s minimum requirements. The meetings will also explore a selection of next-generation privacy issues, such as data portability, open data and privacy, and big data.

Wanner  will also participate in a special workshop, “Building a Dependable Framework for Privacy, Innovation and Cross-Border Data Flows in the Asia-Pacific Region,” which will set the stage for subsequent discussions on APEC CBPR and other privacy issues during the informal and formal ECSG and DPS meetings.

If you would like any further information on the above meetings or issues, please feel free to reach out to our team.

Customs: Megan Giblin, mgiblin@uscib.org
Chemicals: Helen Medina, hmedina@uscib.org
ICT and Data Privacy: Barbara Wanner, bwanner@uscib.org
APEC priorities: Rachel Spence, rspence@uscib.org

6 Reasons Why ICC is Celebrating International Customs Day

customs declaration

To remain competitive in an increasingly integrated global economy, businesses need to be able to rely on efficient Customs regimes and smooth logistics when exporting and importing goods. That is why the International Chamber of Commerce (ICC) and USCIB are celebrating International Customs Day, dedicated this year to promoting the digitization of Customs process under the slogan “Digital Customs: Progressive Engagement.”

ICC has highlighted six ways in which the world business organization is helping to promote trade facilitation and customs modernization, and helping businesses counter some of the border challenges they face today. USCIB is proud to support these initiatives as U.S. affiliate of ICC.

Working with the World Customs Organization (WCO)

ICC and the World Customs Organization (WCO) share a commitment to harmonize customs procedures and practices. ICC’s longstanding partnership dates back to the 1950’s when the two organizations declared support for the modernization of Customs as a core means of enhancing supply chains and economic competitiveness.

In 2015, ICC contributed to the development of the World Customs Organization’s Customs-Business Partnership Guidance which offers step-by-step advice for developing sustainable engagement between customs authorities and the private sector.

Natural allies on Trade Facilitation

Through the ICC Commission on Customs and Trade Facilitation, ICC provides input to the WCO on a number of technical issues including Customs Classification (in the WCO Harmonized System Committee) and Customs Valuation (in the WCO Technical Committee on Customs Valuation). On a strategic level, ICC and the WCO work together to address the Customs challenges and opportunities identified by traders.

In 2015, ICC provided perspectives on the inappropriate use of Customs valuation databases to set minimum or reference pricing for imports. ICC has also been engaged from the start in the WCO Working Group on the implementation of the World Trade Organization’s landmark Trade Facilitation Agreement (TFA). Given that the agreement deals almost entirely with Customs-related topics, ICC works closely with the WCO to ensure the TFA’s successful implementation.

Practical guidance on international taxation

ICC proposals for more coherent tax and customs revenue collection were included in the WCO Guide to Customs Valuation and Transfer Pricing released in 2015 as part of a WCO Revenue Package. The guide provides concrete guidance on revenue collection to governments around the globe and aims to harmonize revenue collection between customs and tax authorities.

ICC also continues to support the efforts of the Organisation for Economic Co-operation and Development (OECD) and the United Nations towards further coherence of tax and customs administrations.

ATA Carnets – a passport for goods

Administered by ICC through its World Chambers Federation (WCF), the ATA Carnet is a tool for the temporary duty-free and tax-free admission of goods. The Carnet works like a passport for goods, removing the need for exporters to provide Customs authorities with the otherwise necessary guarantees required for goods to cross borders. Today, the ATA System is in force in 75 countries with over 178,000 ATA Carnets, covering hundreds of thousands of Customs transactions, issued worldwide every year for goods valued at $25 billion. USCIB is the U.S. national guaranteeing association for the ATA Carnet.

From computers and prototype cars to prehistoric relics and seismic equipment, Carnets are issued for all kinds of goods including commercial samples, professional equipment and goods for trade fairs and exhibitions.

Certificates of Origin – facilitating trusted trade

Every country in the world considers the origin of imported goods when determining the duty that will be applied to the goods or, in some cases, whether the goods may be legally imported at all. Certificates of Origin (CO) are important international trade documents attesting that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country. Millions are issued every year.

ICC through its World Chambers Federation provides an international accreditation chain system for chambers of commerce, the principal agent in the delivery of certificates and has established international standards, rules and procedures that reinforce the trust and integrity of the CO Chain, to the benefit of traders and Customs administrations alike.

Incoterms® Rules – the daily language of trade

ICC’s famous Incoterms® rules are accepted as the global standard for the interpretation of the most common terms used in contracts for the international sale of goods. Incorporated in contracts for the sale of goods worldwide, they provide guidance to importers and exporters helping trading partners to avoid costly misunderstandings by clarifying the tasks, costs and risks involved in the delivery of goods from sellers to buyers.

To learn more about ICC trade tools that facilitate cross-border transactions visit:

http://www.iccwbo.org/products-and-services/trade-facilitation

For more information about USCIB’s trade services visit:

https://uscib.org/trade-services-UD-4293/

 

USCIB Urges Senate to Schedule Customs Vote

4556_image001Once passed, the U.S. customs reauthorization bill would update customs laws and procedures to streamline importing and exporting, contributing to economic growth and reduced costs for American businesses. On January 15, USCIB joined 18 other business organizations urging Senate Majority Leader Mitch McConnel to quickly schedule a vote on customs reauthorization legislation.

“We have worked for over a decade to bring this long-overdue legislation to passage, and so we urge you to quickly schedule a vote on the conference report,” USCIB and the other business organizations stated in a letter to Senator McConnel. The letter’s signatories represent a broad cross-section of the American economy, whose members include manufacturers, importers, exporters, wholesalers, retailers and service providers.

The customs bill, contained in a conference report passed by the House in December, has been delayed due to an unrelated provision including an Internet access tax ban.

“It is critical that the Senate complete passage of this bi-partisan legislation and get it to the President’s desk as the efficiencies contained in the bill will contribute to the growth of the U.S. economy,” the letter concluded.

20+ Business Organizations Urge Congress to Pass Customs Bill

Shipping-Containers

USCIB was joined by 21 other businesses organizations representing every sector of the American economy in signing a letter to Congressional leadership on December 3 urging legislators to resolve outstanding issues and pass the Trade Facilitation and Trade Enforcement Act of 2015 before Congress adjourns for the year at the end of this week. 

“[W]e strongly encourage the passage of the Trade Facilitation and Trade Enforcement bill within the 2015 legislative calendar,” the letter stated. “Continued customs modernization is essential to providing U.S. Customs and Border Protection (U.S. CBP) the support it needs to safeguard America’s borders while enhancing economic prosperity, and ensuring stability for American importers and exporters.” 

The letter notes that it has been more than two decades since the United States passed true customs modernization legislation. Passage of the Customs bill will, among other items,  update outdated e-commerce and business practices, benefit small business and consumers by raising the de minimis amount to $800, and codify U.S. CBP operations and management. 

The U.S. House and Senate have each passed independent and differing versions of the Trade Facilitation and Trade Enforcement bill. Last week, the House joined the Senate in appointing Conferees. However, staffers have been working to resolve issues informally for months. The bill is now in Conference.  The business community hopes that Congress can reconcile and pass a bicameral, bipartisan bill before Congress adjourns at the end of the year. 

Read the full letter here.

OECD Report: TFA Could Significantly Reduce Costs of Global Trade

4556_image001Implementing the WTO Trade Facilitation Agreement (TFA) could reduce worldwide trade costs by anywhere from 12.5% to 17.5%, according to the updated 2015 OECD Trade Facilitation Indicators (TFIs). The OECD TFIs are designed to inform governments on potential measures to improve border procedures, reduce trade costs, boost trade flows and reap greater benefits from international trade. The Indicators identify areas for action and enable the potential impact of reforms to be assessed after implementation.

The TFA creates a significant opportunity to improve the speed and efficiency of border procedures, thereby reducing trade costs and enhancing participation in the global value chains that characterize international trade. The 2015 OECD TFIs find that countries which implement the TFA in full will reduce their trade costs by between 1.4 and 3.9 percentage points more than those that do only the minimum that the TFA requires. The opportunities for the biggest reductions in trade costs are greatest for low and lower middle income countries.

The 2015 OECD TFIs cover 152 countries across different geographical regions and levels of development. Using cost estimates from the updated ESCAP-World Bank Trade Costs Dataset, they provide the most current assessment of the potential impact of implementing the measures included in the TFA. They also allow countries to identify their strengths and weaknesses in trade facilitation, prioritize areas for action and mobilize technical assistance and capacity building in a more targeted way.

The OECD TFIs measure the actual extent to which countries have introduced and implemented trade facilitation measures in absolute terms, but also their performance relative to others, using a series of quantitative measures on key areas of the border process.

Read the OECD’s full policy assessment.