Customs and Trade Facilitation Archives

New CBP Chief Creates New Opportunities

Published on June 10, 2014

By Jerry Cook, HanesBrands, Chair of USCIB’s Customs & Trade Facilitation Committee

American Shipper

“As we dash through spring, I remain positive about the exciting developments in our trade realm, in particular the Customs community. The U.S. Senate confirmation of Customs and Border Protection Commissioner Gil Kerlikowske ushers in new opportunities to strengthen the public-private sector relationship and enhances the focus on executing trade more efficiently.”

Read the full column: https://uscib.org/docs/2014_06_09_Jerry_Cook_Column_American_Shipper.pdf

Norman Schenk of UPS to Chair Global Customs Body

Published on April 2, 2014
Norman Schenk (left) of UPS will chair the ICC Customs and Trade Facilitation Commission; Oliver Pelzer (right) of the German law firm Dabelstein & Passehl was named vice chair.
Norman Schenk (left) of UPS will chair the ICC Customs and Trade Facilitation Commission; Oliver Pelzer (right) of the German law firm Dabelstein & Passehl was named vice chair.

Paris and New York. April 2, 2014 – The International Chamber of Commerce (ICC), the Paris-based world business organization, has announced the appointment of Norman Schenk of UPS as the new chair of the ICC Commission on Customs and Trade Facilitation, according to the United States Council for International Business (USCIB), which serves as ICC’s American national committee.

Schenk is joined by Oliver Peltzer, a partner with the German law firm Dabelstein & Passehl, who has been named the commission’s vice chair.

“Norm Schenk is a terrific choice for this important role,” said USCIB President and CEO Peter M. Robinson. “ICC was instrumental in pushing for last December’s landmark WTO trade facilitation deal, and its influence on the global stage is an important point of leverage for American business as we seek to expand trade, modernize customs practices worldwide and cut red tape in cross-border commerce.”

As UPS’s vice president of global customs policy and public affairs, Schenk brings over 35 years of experience in customs and trade facilitation work to the post. He is responsible for shaping UPS’s global customs policy and border strategies to facilitate the smooth flow of shipments across international borders. He works directly with government leaders on reducing trade barriers, simplifying processes and supply chain security issues and, together with USCIB, has actively contributed to national discussions on customs reauthorization and de minimis provisions.

Schenk will take the reins as chair from Anthony Barone, who retired in February as director of global logistics policy with Pfizer. In his role as a member, vice chair and chair of the ICC commission over the past eight years, Barone greatly impacted its activities. Under his leadership, the commission produced several key products, including the recently published survey What border barriers impede business ability?, the revised ICC Customs Guidelines and new ICC Guidelines for Cross-Border Traders. He was also instrumental in maintaining ICC’s excellent relations with the World Customs Organization and in reorganizing the commission’s work around the theme of trade facilitation. ICC extended its deep appreciation to Barone for his leadership of the commission.

“Norm Schenk is a very experienced internationalist and I am certain he will bring deep insight to the commission and its stakeholders,” said Barone. “The commission has a challenging and important role to play amid the various multilateral agreements being discussed today. Governments need the practical insights the commission can provide.”

Schenk said: “The ICC Customs and Trade Facilitation Commission plays an important role in helping to develop the solutions and tools needed to implement the recent WTO Agreement on Trade Facilitation, ultimately driving economic growth. Customs officials and those engaged in the supply chain will benefit from an open dialogue designed to improve the efficiency and effectiveness of border processes around the world.”

The ICC Commission on Customs and Trade Facilitation has over 120 members from 25 countries. Commission members comprise customs, transport and logistics specialists from ICC member companies and business representative organizations. The central objective of the commission is to overcome trade barriers, to ensure that the liberalization of global trade and investment has a positive impact at the level of the individual international trade transaction.

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. More at www.uscib.org.

Contact:

Jonathan Huneke, USCIB

+1 212.703.5043 (office), +1 917.420.0039 (mobile), jhuneke@uscib.org

 

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Trade facilitation: Victory in Bali

Published on January 18, 2014

By Jerry Cook, HanesBrands, Chair of USCIB’s Customs & Trade Facilitation Committee

American Shipper

“In my recent columns, I have discussed how existing trade facilitation tools can help companies, especially small and midsized enterprises (SMEs), engage in growing global markets. I also urged the United States and other members of the World Trade Organization to finalize and implement a WTO trade facilitation agreement before the end of 2013.”

Read the full column:
http://www.americanshipper.com/Main/News/Trade_facilitation_Victory_in_Bali_56232.aspx 

Capturing trade facilitation’s low-hanging fruit

Published on October 6, 2013

By Jerry Cook, HanesBrands, Chair of USCIB’s Customs & Trade Facilitation Committee

American Shipper

“In my first column of 2013, I wrote about the emergence of large, highly efficient integrated global supply networks that incorporate companies of all sizes and at all stages of production in the value chain. International components and inputs are key links in the supply chain for U.S. manufacturers, and effective trade facilitation will increase a U.S. operation’s manufacturing activities, as well as its ability to export, import and invest.”

Read the full column: https://uscib.org/docs/2013_10_cook_as_column.pdf

New Trade Finance Rules for Forfaiting: Reducing risks in cross-border trade

Published on February 19, 2013

4443_image002New York, N.Y., February 19, 2013 – Every year, some $300 billion of world trade takes place under forfaiting, a type of trade finance where the purchaser takes on all risk associated with receivables. The International Chamber of Commerce (ICC) has published a new set of uniform rules for the practice, according to ICC’s American chapter, the United States Council for International Business (USCIB).

ICC Uniform Rules for Forfaiting (URF 800), now available from the USCIB International Bookstore, are the first-ever global rules governing a practice generally referred to in the U.S. as “structured trade finance.” The new publication provides clear definitions and practical model agreements for all aspects of forfaiting. Developed jointly by the ICC and the International Forfaiting Association, the rules went into effect on January 1.

“These rules will help avoid misunderstandings, thereby reducing risk, harmonize best practices worldwide and facilitate dispute settlement,” said Donald Smith, president of Global Trade Advisory Ltd. and chair of the ICC drafting group that developed the rules. ”Created by experts for experts, ICC Uniform Rules for Forfaiting is a must-have publication for anyone involved in international trade finance transactions.”

Forfaiting facilitates the provision of finance to the international trade community and gives liquidity to instruments that would otherwise be limited to evidencing payment claims. By making payment claims easier to transfer, forfaiting enables them to be used as more than just a means of obtaining payment for goods or services delivered: they can be used to provide finance.

The USCIB International Bookstore publishes a range of informational products derived from the acclaimed work of the commissions, institutions, and international experts of the International Chamber of Commerce. Titles cover topics such as banking, commercial trade terms, law and arbitration, counterfeiting and fraud, model commercial contracts, advertising and environmental matters.

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 three valuable trade services to facilitate the international movement of goods. ATA Carnet, commonly known as the Merchandise Passport, allows goods to enter over 85 customs territories tax and duty free for up to one year. eCertificates of Origin, fully electronic processing of Certificates of Origin, returned to you by e-mail, fast and complaint with ICC Guidelines for Certificates of Origin. Finally learn international business with USCIB International Bookstore. More at www.uscib.org.

USCIB International Bookstore

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Business Strongly Supports Bill to Raise Customs Duty Threshold

Published on September 24, 2012

stop sign military customsNew York, N.Y., September 24, 2012 – The United States Council for International Business (USCIB) has joined 27 companies and business associations in applauding a new bill in the U.S. Senate that would raise the minimum value at which customs duties are imposed on imported goods, calling it a major step forward that would facilitate trade, and a boon to both large and small companies.

The bill, S. 3597, was introduced on September 20 by Senators John Thune (R. – S.D.) and Ron Wyden (D. – Or.).  It would raise the “de minimis” value, which is the monetary value below which shipments entering the United States are free from tariffs, taxes or formal customs procedures, to $800 from the current level of $200.

“Raising de miminis levels helps foster trade, and the jobs that come with it,” stated USCIB President and CEO Peter M. Robinson. “This bill clearly deserves strong support on its own merits, but we are especially pleased at the timing. It will reinforce efforts to raise de minimis levels overseas, something we are actively pursuing through the APEC forum and other channels.” He noted that de minimis levels abroad were sometimes even lower than the current U.S. level.

In their statement, the business groups noted that, in addition to promoting faster border clearance for low-value shipments, a higher de minimis level would allow customs officers-ud-736-UD-736 to focus enforcement efforts on urgent priorities like ensuring product safety and protecting intellectual property. It would also benefit small businesses by reducing the burden associated with importing low-value goods as well as international retail returns. Furthermore, the legislation would have no impact on security, since all shipments entering the United States undergo a security review regardless of value.

The U.S. de minimis level has been held at $200 for nearly 20 years, while the Consumer Price Index has risen some 60 percent over that same period. A companion bill in the House of Representatives, introduced by Rep. Aaron Schock (R. – Ill.), has garnered the support of 142 other legislators from both sides of the aisle.

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, 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, VP communications, USCIB
(212) 703-5043 or jhuneke@uscib.org

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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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USCIB Contributes Expertise as Trans-Pacific Trade Talks Move Forward

Published on September 17, 2012

tankerUSCIB staff were active on the margins of the 14th Negotiating Round of the Trans-Pacific Partnership (TPP), held September 6 to 15 in Leesburg, Virginia.  Parties to the TPP – which currently encompasses the United States, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam – are seeking to negotiate a multilateral pact to liberalize trade and investment across the Pacific region.  At the recent APEC Summit in Vladivostok, leaders from the TPP nations issued a statement expressing confidence that their goal was within reach.

During a “stakeholders day” on September 9, Shaun Donnelly, USCIB’s vice president for investment and financial services made a presentation on “TPP’s Investment Chapter: A Strong Tool for Economic Integration, Growth, and Jobs.”  Donnelly, who co-chair of the TPP Business Coalition’s investment task force, also held informal consultations with negotiators from the United States and other parties, underscoring the importance of a strong TPP investment chapter with binding investor-state dispute settlement provisions.  Both in his formal presentation and in follow-up meetings, Donnelly further stressed industry’s strong support for disciplines to assure a level playing field when private companies compete with state-owned or state-supported enterprises.

Nasim Deylami, USCIB’s manager of customs and trade facilitation, joined executives from USCIB member companies FedEx and Levi Strauss at a meeting with the nine chief negotiators on potential public-private partnerships on capacity building for the TPP economies. Deylami made a presentation on existing trade facilitation capacity building initiatives in APEC. The meeting, led by the Center for Strategic and International Studies, also drew participation from the U.S. Chamber of Commerce, Grocery Manufacturers of America, and National Foreign Trade Council.

“Initial indications are that, with a lot of hard work by U.S. and other government negotiators, good progress was made in several key TPP chapters,” commented Donnelly.  “But a comprehensive TPP agreement still remains a ways off, and is not a sure thing.  USCIB and the U.S. business community continue to press our government and others for a ‘gold standard’ agreement to address the trade and investment challenges of the 21st century – one that is ambitious, comprehensive and enforceable.”

With Canada and Mexico officially joining the negotiating process in October, the TPP now grows to 11 participating countries.  The next formal negotiating round is slated for December 3-12 in Auckland, New Zealand.

Staff contacts: Rob Mulligan, Shaun Donnelly and 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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