One Coastal Tanker Hijacked Every Two Weeks in Southeast Asia

piracy_lo-resA small coastal tanker is hijacked by pirates in South East Asia every two weeks on average, a report from the International Chamber of Commerce (ICC) International Maritime Bureau (IMB) has revealed.

South East Asia accounts for 55 percent of the world’s 54 piracy and armed robbery incidents since the start of 2015.

After a steady drop in global piracy over the last few years, attacks rose 10 percent in the first quarter of 2015 on the same period of 2014.

Worldwide, pirates took 140 hostages in the first three months of 2015, three times as many as during the same period in 2014. A total of 13 seafarers were assaulted and three injured.

In West Africa, a hotspot for violent piracy, one man was killed in the hijacking of a fishing vessel off Ghana. Five crew members were kidnapped by Nigerian pirates in two separate incidents in addition to a small product tanker being reported hijacked.

IMB has recorded 23 ship hijackings in South East Asia since April 2014, with six taking place in the last three months. Most are carried out by armed gangs targeting small coastal tankers to steal their cargoes of fuel. Five tankers and an offshore tug have been hijacked in the first quarter.

“The frequency of these hijackings in South East Asia is an increasing cause for concern. There’s a risk that the attacks and violence could increase if left unabated,” said Pottengal Mukundan, director of IMB, which has been monitoring world piracy since 1991.

Malaysian authorities have detained one gang of hijackers now awaiting trial. IMB has commended this action and calls for a stronger, coordinated regional response to clamp down on piracy in South East Asian waters.

The country with the highest number of attacks is Indonesia, accounting for almost 40 percent of 2015 attacks, with two vessels hijacked and 19 vessels boarded. IMB reports that the overwhelming majority of incidents are low-level, opportunistic thefts, although the attackers here are usually armed with knives, machetes or guns.

With eight reports in the past three months alone, Vietnam has seen an increase in armed robbery incidents. More and more thieves are breaking into ships at anchor in and around Hai Phong and Vung Tau.

The IMB Piracy Report shows zero incidents for Somalia in the first quarter of 2015. However, it advises shipmasters to follow the industry’s Best Management Practices, as the threat of Somali piracy has not been totally eliminated.

USCIB Congratulates USTR Froman for Leadership on TFA

USTR Michael Froman
USTR Michael Froman

USCIB submitted a letter to U.S. Trade Representative Michael Froman on March 23 congratulating him for his leadership in implementing the World Trade Organization’s Trade Facilitation Agreement (TFA). The United States was one of the first countries to accept the TFA, a trade deal that will streamline cross-border trade and create an estimated 21 million jobs and add $1 trillion to the global economy over the course of a decade.

Two-thirds of WTO members must ratify the TFA before the agreement goes into force, and the United States serves as an example to other countries in ensuring the agreement’s ratification and implementation. Swift adoption of the TFA is critical for the business community, as it will spur economic growth and enhance competitiveness at a time when supply chains routinely cross multiple borders in the production of goods and services.

“The United States is playing a critical leadership role in implementation of the TFA and can count on the full support of the business community,” wrote USCIB President and CEO Peter Robinson in the letter.

USCIB has advocated strongly for the TFA, organizing two policy conferences on the multilateral trade agenda: “Exploring New Approaches to Trade, Investment and Jobs” in D.C. in October, for which Froman was the keynote speaker, and the “Customs and Trade Facilitation Symposium” in February in Miami.

Read the letter.

Charting a Course Toward Smoother Cross-Border Trade

L-R: Rob Mulligan (USCIB), Mark Linscott (USTR), Maritza Castro (DHL), and Terry McGraw (McGraw Hill)
L-R: Rob Mulligan (USCIB), Mark Linscott (USTR), Maritza Castro (DHL), and Terry McGraw (McGraw Hill)

Bottlenecks along trade routes are some of the most stubborn obstacles to economic growth and development. Perishable goods go to waste at the border waiting to clear customs. Trucks carrying cargo in western Africa spend over two thirds of their time just sitting idle, sapping resources and contributing to environmental degradation. Facilitating trade and modernizing customs procedures are essential for increasing prosperity for all.

USCIB partnered with the International Chamber of Commerce (ICC) to hold the ICC and USCIB Customs & Trade Facilitation Symposium: Finding Solutions to Cross-Border Challenges a two-day policy conference that took place in Miami, Florida on February 23 and 24.

TFA: need for speed

With Trade Promotion Authority and Customs reauthorization set to drop soon in the United States Congress, and with the implementation of the World Trade Organization’s landmark Trade Facilitation Agreement (TFA) set to begin in WTO member countries, the time is right for thoughtful discussion on how to facilitate trade and eliminate red tape at the border.

“We’re sitting on the most robust trade agreement we’ve ever had,” said Terry McGraw, chairman of ICC and USCIB, referring to the WTO’s TFA. Throughout the conference, participants agreed that government and business leaders need to work together to get the TFA ratified and approved by two-thirds of WTO member states as soon as possible. Ratification of the agreement is not yet a done deal – only Hong Kong, Singapore and the United States have ratified it thus far.

Private-sector support is crucial for TFA to succeed, and the global benefits of improving trade facilitation will be substantial. The ICC estimates that implementation of the TFA will add $1 trillion to the global economy and create 21 million jobs worldwide, most in the developing world.

“It’s heartwarming for me to see private sector interest in this agreement,” said Linscott during a Q&A session with McGraw.

Finding solutions to cross-border trade

Over 100 representatives from government, business and national customs authorities attended this two-day symposium. Discussions on the first day included introductory remarks by Kunio Mikyuriya, secretary general of the World Customs Organization, Yi Xiazhun, deputy director general of the World Trade Organization and ICC leaders, as well as a keynote address by Mark Linscott, assistant United States Trade Representative for WTO and Multilateral Affairs; a stock-taking session on the WTO’s trade facilitation agreement; an overview of trade logistics and customs regimes and a review of ICC’s trade tools.

The second day featured a keynote breakfast by Customs and Border Protection (CBP) Commissioner Gil Kerlikowske and discussion sessions on the Panama Canal expansion and how best to balance border security with trade facilitation.

“The conference offered an exciting and timely opportunity for government officials and business leaders to discuss policies that improve trade between countries and along supply chains,” said Jerry Cook, vice president of HanesBrands and chair of USCIB’s Customs and Trade Facilitation Committee. “HanesBrands has done a lot of work in this area, and we are committed to finding solutions that make it easier for all companies to do business.”

Support from business is essential

Commissioner Kerlikowske stressed the importance of close collaboration between business and Customs authorities to ensure border security in a cost-efficient manner. He noted that if countries can agree on the same security standards, they can collectively improve trade as well.

Secretary General Mikuriya noted the close collaboration between Customs and ICC, and expressed thanks for business’s efforts on trade facilitation, helping to eliminate illicit trade and improving the efficiency of supply chains.

“I applaud the ICC for its unwavering support for the TFA,” said Mikuriya.

The conference ended with agreement that improving trade facilitation will benefit all businesses and create jobs. But there is still a more work to be done: the TFA must first be ratified, and the private sector’s efforts in convincing governments and the public at large about the benefits of the agreement will be crucial for the agreement’s ratification and ultimate implementation.

Speakers also highlighted the challenges on the ground as business, government and customs officials work on trade facilitation implementation. These include problems with infrastructure, lack of intellectual property rights enforcement, corruption and entrenched red tape at the border. Substantial political will must be marshaled by WTO member countries to change organizational cultures, and participation from business will be required.

“It’s encouraging to hear that a lot of members have worked on these efforts already,” said Rob Mulligan, USCIB’s senior vice president for policy and government affairs. “The private sector must continue to move forward on getting TFA done.”

View conference photos on Flickr.

Speaker Announcement: Gil Kerlikowske, CBP

icc/uscib customs and trade facilitation symposium: finding solutions to cross-border challenges

Keynote Speaker Confirmed:

R. Gil Kerlikowske

4945_image004

We are pleased to announce that Gil Kerlikowske, Commissioner of U.S. Customs and Border Protection, will be a keynote speaker at the ICC and USCIB Customs and Trade Facilitation Symposium from February 22 to 24 in Miami, Florida. As commissioner, Kerlikowske oversees the dual U.S. Customs and Border Protection mission of protecting national security objectives while promoting economic prosperity and security. His insights into international customs operations will be invaluable at the event.

R. Gil Kerlikowske was nominated by President Obama and sworn in on March 7, 2014 as Commissioner of U.S. Customs and Border Protection taking the helm of the 60,000-employee agency with a budget of $12.4 billion. As Commissioner, he runs the largest federal law enforcement agency and second largest revenue collecting source in the federal government. Most recently, he served as Director of the White House Office of National Drug Control Policy.

Mr. Kerlikowske brings four decades of law enforcement and drug policy experience to the position, including as Chief of Police for Seattle, Washington; as Deputy Director for the U.S. Department of Justice, Office of Community Oriented Policing Services; Police Commissioner of Buffalo, New York; and in the police department in St. Petersburg, Florida.

Register Now!

ICC and USCIB Customs & Trade Facilitation Symposium:

Finding Solutions to Cross-Border Challenges

February 22-24, 2015

The Four Seasons Hotel | Miami, Florida, USA

Limiting cross-border friction is increasingly vital to smooth the flow of trade and boost competitiveness for all business, especially for small and medium sized companies and emerging industry sectors. This conference brings business, government, international organizations and operational customs and trade experts together from the world over for an important dialogue on the most effective means to ease the movement of goods and services between countries along supply chains.

Topics Will Include:

  • Best regional practices and global cooperation on single window initiatives
  • de minimis
  • Intellectual property rights, and supply chain solutions
  • Balancing security and trade facilitation
  • WTO Trade Facilitation Agreement: implementation and challenges

If you wish to register via fax or email, please click here for the registration form.

For questions please contact Diana Jack at djack@uscib.org or (202) 617-3156.

For information on how you can become a sponsor contact Abby Shapiro at ashapiro@uscib.org or (617) 515-8492.

ICC and WCO Secretaries General Meet to Talk Business and Customs

L-R: John Danilovich (ICC), Kunio Mikuriya (WCO) and Norman Shenk (UPS).
L-R: John Danilovich (ICC), Kunio Mikuriya (WCO) and Norman Shenk (UPS).

International Chamber of Commerce (ICC) Secretary General John Danilovich met with World Customs Organization (WCO) Secretary General Kunio Mikuriya at WCO Headquarters in Brussels earlier this week to discuss ways to strengthen the relationship between the world business community and the WCO to facilitate cross-border trade.

Joined by Norman Shenk, chair of the ICC Commission on Customs and Trade Facilitation and UPS vice president of global customs policy and public affairs, Danilovich highlighted the role of the ICC World Chambers Federation in co-administering the ATA Carnet System and cooperating with the WCO in the area of Certificates of Origin.

ICC also supports the WCO with the Business Action to Stop Counterfeiting and Piracy (BASCAP) initiative to stop counterfeited goods at borders and prevent free trade zones from becoming hotspots for illicit trade and organized crime groups.

Discussions included specific challenges that small- and medium-sized enterprises (SMEs) encounter when trading across borders, customs valuation ceilings for goods known as de minimis, rules of origin and the increasing importance of e-commerce and global value chains.

Thanking Mikuriya for making the customs-business cooperation a priority, Danilovich also reaffirmed ICC’s ongoing support for the WCO’s work on trade facilitation and in particular for the implementation of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) that aims to enhance trade flows.

“Given that the agreement deals almost entirely with Customs-related topics, trade ministries, Customs and business must all be involved at country-level to ensure the TFA’s successful implementation,” Danilovich said.

Mikuriya has emphasized on many occasions that Customs and business are natural allies in trade facilitation. Both he and Danilovich will speak at the upcoming Customs and Trade Facilitation Symposium, hosted by ICC and USCIB in Miami from February 22 to 24.

USCIB’s Goldberg Contributes to New Report on Enhancing Security in Cross-Border Trade

4781_image001The global economy has empowered criminals and terrorists on an international scale, and the challenge of preventing illicit activities has proven too much for traditional top-down government controls.

To better address this threat, the Stimson Center’s senior-level Partners in Prevention Task Force, which includes USCIB’s Senior Counsel Ronnie Goldberg, has endorsed seven proposals to advance both security and industry competitiveness by leveraging public-private partnerships that harness the power of decentralized, market-based incentives.

Targeted at U.S. industry and government stakeholders, the proposals follow an 18-month Stimson Center collaboration with hundreds of high-tech manufacturers and service providers, transport and logistics firms, and insurance providers. Several USCIB members participated in the project.

The report highlights several ways industry and government can collaborate to create a set of next-generation “trusted trader” regimes that facilitate legitimate trade and focus enforcement resources on higher-risk transactions. Task force members argue that “this is an especially opportune moment to act” on these ideas given the recently concluded WTO Trade Facilitation Agreement and the growing network of Mutual Recognition Arrangements among countries with Authorized Economic Operator programs. The report also addresses the U.S. government’s Export Control Reform Initiative, information sharing, the Terrorism Risk Insurance Program, and implementation of the International Trade Data System.

Goldberg commented: “There is increasing recognition of the importance of public-private partnerships.  Governments have a vital interest in bringing the experience, resources, and expertise of business to bear on the complex national security challenges posed by a globalized economy.”

“Ronnie brought deep subject matter expertise and an important ‘multi-stakeholder’ perspective to this effort,” said Brian Finlay, Stimson’s managing director. “She offered compelling insights on the economic, social, and security dynamics of an interdependent, global economy. She drew on many years of work with the OECD, International Chamber of Commerce, and ILO to convey the views of a diverse set of players at the national and international levels. But above all, she was a genuine pleasure to work with.”

Finlay continued: “We also benefited significantly from the expertise of some of Ronnie’s USCIB colleagues. In particular, we would like to thank Kristin Isabelli for her time and valuable substantive contributions. I hope Stimson has the good fortune to cross paths again soon with the USCIB team.”

Goldberg worked alongside task force chairman and former Under Secretary of Homeland Security for Science and Technology Jay Cohen (RADM, USN, Ret), as well as other industry leaders and national security experts, in shaping the recommendations.

An initiative of the nonprofit, nonpartisan Stimson Center, the group’s report was unveiled on May 29 in Washington, D.C. at an event featuring keynote remarks by senior White House advisor Rand Beers.

Staff contacts: Ronnie Goldberg and Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee

Trade Facilitation Off to Good Start Says WCO Director

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.”

Read more on the ICC website.

Staff contact: Kristin Isabelli

More on USCIB’s Customs and Trade Facilitation Committee

 

ICC Seminar to Shed Light on Transfer Pricing and Customs Valuation

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

More on USCIB’s Customs and Trade Facilitation Committee

More on USCIB’s Taxation Committee

USCIB Customs Update

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.

More on USCIB’s Customs and Trade Facilitation Committee

Pfizers Barone is New Vice Chair of ICC Customs Committee

Anthony Barone
Anthony Barone

USCIB affiliate the International Chamber of Commerce (ICC) has appointed Anthony Barone, director of global logistics policy at Pfizer, as vice chair of its Committee on Customs and Trade Regulations.

In his role as vice chair, Mr. Barone is set to advance the committee’s work program, as well as to provide support to the committee’s chair, Selig Meber, vice president of GE International, in developing consensus within the committee on policy positions and statements.

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.  “The committee is honored to have Mr. Barone as the new vice chair and is looking forward to benefitting from his contributions,” ICC said in a statement.

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 the third-party logistics industry and with supply-chain IT providers.

Between 2005 and 2009, Mr. Barone served on the U.S. Customs Operations Advisory Committee, and in 2008, he joined the Private Sector Advisory Committee of the World Customs Organization in Brussels.

Mr. Barone is currently a member of the New Jersey Export District Council of the U.S. Department of Commerce.  He graduated from Columbia University with an MBA in management.  Outside of Pfizer, he writes screenplays and is a member of several writer groups.

The committee elected Mr. Barone, whose appointment was announced during their last meeting on January 27 in Brussels.  He will help the chair represent consensus viewpoints of the committee, including those of governmental decision-makers and the media as needed.  He will also be called upon to lead meetings of the committee when the chair is unable to do so.

More on USCIB’s Customs and Trade Facilitation Committee