Customs and Trade Facilitation Archives

Giblin Represents Business at World Customs Organization Meetings in Brussels

Published on April 3, 2017

Brussels

USCIB’s expert on customs Megan Giblin joined CompTIA’s Ken Montgomery as an authorized delegate of the International Chamber of Commerce (ICC) to the World Customs Organization’s (WCO) 59th Harmonized System Committee (HSC) in Brussels, Belgium from March 15 to 24. Montgomery served as ICC head of delegation at this meeting.

Per the WCO, some key HSC deliverables included settling classification questions and disputes, revising Explanatory Notes and classification opinions, securing speedy and uniform implementation of classification decisions and drafting recommendations.

The Committee took up a number of topics including the implementation of the HS2017, re-examined the classification of several products, took global classification decisions on many other products and held preliminary discussions on yet others. Classification decisions taken at this meeting are subject to a two-month reservation period under which any administration can request that the decision essentially be placed on hold and re-examined at a future HSC session. Decisions where no reservations have been filed, become final at the conclusion of the stipulated timeframe.

A key topic of discussion for both governments and industry relates to the current version of the HS Nomenclature. The WCO owns the HS Nomenclature, the language of international trade. Today, nearly 210 countries, territories or customs unions use the HS as the basis of their domestic customs tariff.

“The HS is important. It is not only used for customs classification, but it is used as the basis of market access negotiations for free trade agreements, flagging other government agency requirements, and more. Companies of all sizes depend on timely completion of domestic processes and full implementation of the current version of the HS to ensure necessary predictability for their products,” said Giblin.

While the HS2017 entered force January 1, 2017, there are still several countries that have yet to complete domestic legislative approvals or processes necessary for implementation.

Giblin will serve as ICC head of delegation at the fall HSC meeting.

 

Mulligan Attends London ICC Meeting on Brexit, WTO

Published on April 3, 2017

London USCIB’s Senior Vice President for Policy and Government Affairs, Rob Mulligan, represented USCIB at International Chamber of Commerce (ICC) meetings with the World Trade Organization (WTO) and the British government on March 23 in London. The meeting was organized by ICC’s Trade and Investment Commission and focused on a wide range of global trade issues.  Ian Ascough, deputy director, multilateral trade, Department for International Trade, United Kingdom briefed ICC members on how the Brexit process will impact UK trade work.  He stressed their desire for a free trade agreement with the EU, no border in Ireland, and to be champions of free trade globally.  Ascough also noted that they will seek to secure a UK schedule in the WTO and build up their capability in the WTO. In discussing the implications of Brexit, Mulligan also raised business concerns related to trade, noting that “companies need sufficient transition times coming out of Brexit to address any changes related to customs, value chains, and regulatory requirements.”

Bernard Kuiten, head of external relations, WTO briefed the Commission on planning for the WTO Ministerial which will be held in Argentina this December.  Some areas that could be addressed in the Ministerial if member countries agree would include fisheries subsidies, e-commerce, services facilitation, agriculture, and investment.  The Commission also agreed to a suggestion by Mulligan to prepare a short paper on key ICC trade policy principles.

Kazakhstan to Begin Accepting “Merchandise Passports”

Published on March 20, 2017

Baiterek TowerNew York, N.Y., March 21, 2017 – Kazakhstan is set to become the 77th member country to accept ATA Carnets for the temporary, duty-free importation of various types of goods, beginning April 1, according to the United States Council for International Business (USCIB), which administers the ATA system in the United States.

Known as “merchandise passports,” ATA Carnets are international customs documents that allow for the temporary importation of various types of goods, duty-free and tax-free, for up to one year. In most ATA member countries and territories, including Kazakhstan after April 1, Carnets cover import of professional equipment, commercial samples and items for display at exhibitions and fairs. The worldwide ATA Carnet system is overseen by the World Customs Organization and the International Chamber of Commerce (ICC), for which USCIB serves as the American national committee.

“The implementation of the ATA system demonstrates Kazakhstan’s commitment to promoting economic growth and trade facilitation,” stated USCIB President and CEO Peter M. Robinson. “Use of Carnets will make it easier for American and other foreign companies to do business with the country, while enabling Kazakhstan businesses easier access to the U.S. and global markets.”

The Republic of Kazakhstan is the ninth largest country in the world by area and is the world´s largest landlocked nation. ATA membership by the country – long regarded as a priority for other countries in the system – will significantly facilitate trade relations between Kazakhstan businesses and their foreign partners. The Chamber of International Commerce of Kazakhstan has been designated as the official guaranteeing organization for ATA Carnets in the country.

Prior to Kazakhstan, Brazil and Indonesia were the two most recent countries to join the global ATA Carnet system. More than 180,000 Carnets are issued every year worldwide, for goods with a total value of over US$21 billion. The United States is the third-largest user of ATA Carnets, following Germany and Switzerland. The Republic of Georgia is expected to join the ATA system in the near future.

Find out more about the services offered by USCIB to facilitate cross-border trade and investment at www.uscib.org.

Contact:
Jonathan Huneke, VP communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

USCIB Experts Quoted in Journal of Commerce Articles on Trade

Published on March 20, 2017

container_shipUSCIB experts on trade and customs Rob Mulligan, senior vice president of policy and government affairs, and Megan Giblin, customs and trade facilitation director, were recently quoted in a Journal of Commerce article, “Trump administration unlikely to repudiate new WTO pact.” The article explores the state of bilateral and multinational trade agreements, such as the recent entry into force of the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA) and the future of the North American Free Trade Agreement.

JOC Special Correspondent Alan M Field wrote that despite the current administration’s aversion to multilateral agreements, it isn’t likely to repudiate the TFA. Field also quoted Mulligan’s views on this matter, “I don’t think that the administration has said much directly related to this agreement, but in some ways, I would expect that the provisions of this agreement are consistent with some of the things they have been saying about trying to open up borders and improve opportunities for U.S. business.”

Giblin agreed, stating that “it is important to recognize some of [the TFA’s] core messages. The TFA is critical to doing business, critical for companies. You’re going to get more transparency and predictability. The time-consuming processes at the border are going to be streamlined. You’re going to see goods moving more rapidly across the border. It’s expected to increase exports significantly.”

The full JOC story is available here, log-in required.

Giblin was also quoted extensively in a separate JOC story, “New WTO accord to speed customs clearance, cut costs” that takes a deeper dive into the TFA’s entry into force. Giblin was quoted on several aspects of the TFA, including the TFA’s value in allowing companies to understand quickly what the rules are and be able to export with assurance, “If everybody is providing the same level of transparency and ability [needed] to appeal decisions, then everyone will know how to operate,” she said. “That will lead to increased exports of products. And that will likely give a boost to the US economy and result in more jobs.”

The JOC story on TFA also quotes International Chamber of Commerce Chairman Sunil Bharti Mittal.

 

USCIB Welcomes Entry Into Force of WTO Trade Facilitation Agreement

Published on February 22, 2017

Harbor_tradeLandmark pact will reduce customs barriers and costs for U.S. exporters

New York, N.Y., February 22, 2017 – The United States Council for International Business (USCIB) applauded the entry into force today of the landmark World Trade Organization (WTO) Trade Facilitation Agreement (TFA), which will reduce the costs of trading across borders and lead to increased U.S. and foreign exports and jobs. The TFA, approved at the WTO’s 2014 ministerial in Bali, Indonesia, provides enforceable government commitments, which will reduce red tape at the borders, speed movement of goods internationally, reduce costs, increase exports and create jobs.

The WTO has 164 member countries, and its rules require two-thirds of its members to ratify and pass laws making necessary changes in their customs procedures in order for the TFA to go into effect. Today, Chad, Jordan, Oman and Rwanda  submitted their ratification notices to the WTO, achieving the two-thirds threshold.

USCIB Chairman Terry McGraw, chairman emeritus of S&P Global, stated: “It is so important to the American and global economy that these 100-plus countries have committed to streamlining their customs procedures to speed the movement of products and reduce their costs.  We commend WTO Director General Roberto Azevedo for his tireless efforts to make his happen.”

McGraw, who also serves as honorary chairman of the International Chamber of Commerce (ICC), the world business organization, and chaired the President’s Advisory Committee on Trade Negotiations, has been a staunch advocate for the TFA and for multilateral trade liberalization in general.

“The TFA will provide a shot in the arm to U.S. exports and to the multilateral trading system,” said USCIB President and CEO Peter M. Robinson. “Studies estimate that, when implemented, the TFA will cut the average cost of exporting by some 14 percent, delivering a net gain of $1 trillion in global annual GDP and spurring the creation of more than 20 million new jobs for the global economy. What’s more, the TFA demonstrates the continued importance of the WTO and of multilateral efforts to liberalize cross-border trade and investment.”

In addition to promoting the benefits of the TFA, USCIB has worked to secure overseas ratification of the agreement through bilateral meetings with numerous governments. It has also done so via its role as U.S. affiliate of ICC, which mounted a global campaign to secure ratification of the TFA.

ICC Chairman Sunil Bharti Mittal said: “The entry into force of the TFA is a watershed moment for global trade. The reality today is that many small businesses find themselves unable to trade internationally due to complex customs requirements. By cutting unnecessary red tape at borders, the TFA will have a transformational effect on the ability of entrepreneurs in developing countries to access global markets.”

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

NAFTA Renegotiation an Opportunity to Modernize 20 Year-Old Agreement

Published on February 13, 2017

North American Union, NAU concept on a gears, 3D renderingPresident Trump’s promise to rewrite the North American Free Trade Agreement is already rattling some companies and rippling across the Mexican economy. Growth in the country’s GDP is projected to slow to a crawl in 2017, according to the Wall Street Journal. Exports account for a third of the country’s economic activity, and some 80 percent of these go to the U.S.

Depending on how it is handled, renegotiating NAFTA could provide an opportunity to update the agreement, according to USCIB Senior Vice President Rob Mulligan. “There are aspects of NAFTA that could be improved, and provisions that could be added to address important economic changes over the last 20 years,” he observed. “But it would be critical to keep those provisions that have enabled U.S. companies to grow during that time as well.”

Mulligan said USCIB was canvassing several of its committees to see where NAFTA could be improved upon – and what “red lines” exist for companies in terms of rolling back or overturning certain key provisions in the landmark agreement.

NAFTA was the first U.S. trade agreement to include binding rules on labor and environmental protections – although these were included in a side agreement, and they have been incorporated into all U.S. trade agreements negotiated since. In addition, NAFTA included strong investor-state dispute settlement (ISDS) provisions – a key factor in gaining American business support for the agreement in light of a legacy of expropriations in Mexico and elsewhere.

A $127 annual boost to the U.S. economy

Eva Hampl, USCIB’s director of trade, investment and financial services, reports that a well-attended program last week hosted by the Washington International Trade Association included presentations on priorities for NAFTA renegotiation from USCIB member companies and others in the business community. Ralph Carter (FedEx), emphasized that Mexico and Canada are the United States’ second- and third-largest trading partners, and he cited a Peterson Institute study indicating that NAFTA brings the US $127 billion per year in additional income.

Carter said that FedEx wants to help modernize cross-border trade. Consider, he said, that it takes an average of 17 hours and three different drivers for a single truck to cross the U.S.-Mexico border. Or that the “de minimis” threshold for expedited, duty-free entry of goods stands at $800 for the United States, but  only $50 for Mexico and $15 for Canada — creating barriers for “just-in-time” delivery of many components. A more seamless border, Carter emphasized, does not mean a less secure border – both can be achieved through smart reform efforts.

Looking northward, President Trump and Canadian Prime Minister Justin Trudeau today agreed on the broad importance of U.S.-Canada commercial relations. “We recognize our profound shared economic interests, and will work tirelessly to provide growth and jobs for both countries,” the leaders said in a joint statement. “Canada is the most important foreign market for 35 U.S. states, and more than $2 billion in two-way trade flows across our shared border every day. Millions of American and Canadian middle-class jobs, including in the manufacturing sector, depend on our partnership. We affirm the importance of building on this existing strong foundation for trade and investment and further deepening our relationship, with the common goal of strengthening the middle class.”

USCIB Customs Chair Jerry Cook Featured in American Shipper

Published on February 13, 2017

USCIB’s Customs and Trade Facilitation Committee Chair and Vice President of Government and Trade Relations with Hanesbrands Jerry Cook has recently been featured in American Shipper, publishing a commentary on trade in 2017. Cook writes, “despite predictions that trade will have a diminished future, the reality will likely be much more intense for those managing international supply chains and are responsible for their customs and export compliance.” Cook cites the expectation of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) entering into force as well as potential actions to reopen the North American Free Trade Agreement as forces that will promote growth in 2017.

Cook concludes with an optimistic tone writing that “it is an exciting time for the trade community. The standard is changing, and we can seize the opportunity to manage for success. We need to regain control of our future and work to build that future by upgrading the tools we use, as well as the norms by which we operate.”

Click here to read the rest of his commentary on the American Shipper website.

USCIB Urges Administration to Maintain Leadership on Trade

Published on January 23, 2017

Harbor_tradeNew York, N.Y., January 23, 2017 – Peter M. Robinson, president and CEO of the United States Council for International Business (USCIB), issued the following statement regarding President Trump’s executive order withdrawing the United States from the Trans-Pacific Partnership:

“While we are disappointed that the United States will not take part in this ambitious and market-opening agreement, we hope this move sets the stage for future trade agreements that build upon the best in the TPP.

“As we noted in USCIB’s American Competitiveness Agenda 2017, which was released earlier today, the Asia-Pacific region is a very important market for U.S. business and the jobs they support. By 2030, two-thirds of all middle-class consumers in the world will be in Asia, so the area continues to be key to the future growth of many U.S. companies and their SME suppliers. We will work with Congress and the Administration to determine the best ways to further open markets in the Asia-Pacific region to U.S. goods and services, including by carrying forward key provisions from TPP.

“Maintaining U.S. leadership in the region should be a strategic priority. Trade relationships provide economic security but also important national security benefits. Letting other nations – including some with very different economic systems and priorities – write the rules in this fast-growing region would be a mistake. Moreover, some of our most important trading partners in the Asia-Pacific region have already ratified TPP or are continuing to undertake reforms consistent with the agreement.

“We encourage the Trump Administration to move quickly in pursuing its plan for the region, both to help American companies and workers compete, and to ensure that regional trade rules are not driven by others. We look forward to working with the Administration in support of these objectives.”

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence.  Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. As the American affiliate of the International Chamber of Commerce, International Organization of Employers, and Business at OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
jhuneke@uscib.org, +1 212.703.5043

Only Three More to Go for WTO’s TFA Entry Into Force

Published on January 17, 2017

The World Trade Organization’s Trade Facilitation Agreement (TFA) is likely to enter into force within the next week. Only three more ratifications are now required to reach the 110-country threshold for the agreement to take effect.

The TFA is critical to business, creating more jobs, transparency and predictability while reducing costs and cutting red tape at borders.

Research has shown that implementation of the WTO TFA could reduce global trading costs, on average, by nearly 14.5 percent and cut trading costs for low income countries by at least an estimated 13 percent; nearly 14 percent for lower – middle income countries and nearly 13 percent for upper -middle income countries. Implementation of the TFA can also create up to 20 million jobs and add over $1 trillion to global trade flows.

On January 20, Nigeria became the 106th country to ratify the WTO TFA. Prior to Nigeria, Mozambique deposited its instrument of ratification at the WTO. Mozambique, was joined by St. Vincent and the Grenadines, which deposited its instrument of ratification at the WTO on January 9, 2017.

USCIB Senior Director for Customs Megan Giblin who has been working on the TFA since 2015 noted that “USCIB’s focus has been primarily on the ratification of U.S. FTA partners as well as APEC economies. Outreach efforts and advocacy will continue.”

Countries who have accepted the Agreement:

Hong Kong China, Singapore, the United States, Mauritius, Malaysia, Japan, Australia, Botswana, Trinidad and Tobago, the Republic of Korea, Nicaragua, Niger, Belize, Switzerland, Chinese Taipei, China, Liechtenstein, Lao PDR, New Zealand, Togo, Thailand, the European Union (on behalf of its 28 member states), the former Yugoslav Republic of Macedonia, Pakistan, Panama, Guyana, Côte d’Ivoire, Grenada, Saint Lucia, Kenya, Myanmar, Norway, Viet Nam, Brunei, Ukraine, Zambia, Lesotho, Georgia, Seychelles, Jamaica, Mali, Cambodia, Paraguay, Turkey, Brazil, Macao China, the United Arab Emirates, Samoa, India, the Russian Federation, Montenegro, Albania, Kazakhstan, Sri Lanka, St. Kitts and Nevis, Madagascar, the Republic of Moldova, El Salvador, Honduras, Mexico, Peru, Saudi Arabia, Bahrain, Bangladesh, the Philippines, Iceland, Chile, Swaziland, Dominica, Mongolia, Gabon, the Kyrgyz Republic, Canada, Ghana, Mozambique, and St. Vincent and the Grenadines.