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TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

Learn about the trade facilitation requirements and benefits from the perspective of transporters. Find out how automation and a single window system can greatly improve efficiency and reduce costs in international trade.

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TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

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  1. TRADE FACILITATION from a TRANSPORTERS POINT of VIEW Robbie Howard – Global Customs DirectorDHL EXPRESS Global Network Management & Operations

  2. DHL EXPRESS STATISTICS TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

  3. TRADE FACILITATION REQUIREMENTS DHL fully supported the Trade Facilitation agenda of the WTO Doha agenda and is content with the latest draft TF agreementWhat we expect from Trade Facilitation is already covered in WCO instruments such as the WCO - RKC and the IRG.Specifically we are looking for: TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

  4. TRADE FACILITATION REQUIREMENTS ADMINISTRATIVE.- Transparency of legislation that may affect supply chains(legislation published on Internet).- Consultation on any changes to that legislation(all changes published on Internet).- Predictability of clearance/release times.- An appeal process to an authority other than customs for disputes- Mutual recognition of, and common standards for, security programs. TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

  5. TRADE FACILITATION REQUIREMENTS CUSTOMS PROCESSES.- All customs processes should be automated.- Automated risk based assessment.- Separation of release from clearance.- Release from provision of advance shipment data, without restriction on value, size or weight.- Access to customs and customs systems 24/7- Realistic de minimis levels.- Single Window operations to a common standard. TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

  6. EXAMPLES OF BENEFITS OFTRADE FACILITATION • SPAIN.- DHL Economic indicator • Spain archaic customs procedures before implementing EU customs code. Transport over-night, clearance 2-5 days • Spain Ranked 12th largest in Europe in terms of revenue. • Upon implementation of Customs Code, clearance time reduced to 0.5 day • Within 4 years Spain was ranked 5th largest in terms of revenue. • Europe as a whole growing 20-25% PA. TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

  7. EXAMPLES OF BENEFITS OFTRADE FACILITATION ESTONIA.Won contract for new GSM repair industry. Based on facilitating clearance, so that DHL could import defective phones in the AM and after repair re export those same phones later that day. TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

  8. EXAMPLES OF BENEFITS OFTRADE FACILITATION • WORLD BANK STUDY DEC 2001. • Study showed that over 20 year period, 24 countries that eased trade restrictions enjoyed a growth rate of 250% that of developed • countries. • - Among those 24 countries were China, India, Hungary and Mexico: each of which has continued to integrate into the world economy with high profile results. • - But, the World Bank study showed more than economic data.Social impacts – better schooling, longer life expectancy. TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

  9. IMPACT OF NOT HAVING A SINGLE WINDOW • - In almost all major countries we receive shipment information from customers in data form for more than 80% of shipments. • All information is transmitted to destination. For goods requiring • accompanying origin certificates we must move paper certificates. • Assuming that it is the data contained on the certificate that is important, then through an agreed common system standard we could • stop moving paper around the world. (particularly for those certs of a fiscal • nature) TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

  10. DHL OGA SHIPMENT STATISTICS. - Figures based on 100% of shipments to countries that handle 75% of volume.- Statistics in some cases depended on manual collection so probably understated- Some countries procedure for OGA’s so costly and cumbersome that we no longer ship certain goods (this includes EU MS). - Issue within EU complicated by having to produce goods to customs at first point of entry into EU. TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

  11. COMMON ISSUE for all the EXPRESS INDUSTRY, SIMILAR SHIPMENT PROFILES and CUSTOMER BASE. • Shipments on hold each day. 10,000 x 5 days x 2.5 = 125k days • Average delay time. EU 2 days • US 2 days • APAC 5 days • EEMEA 8 days- Value of shipments on hold. 60 m x 5 days x 2.5 = • 750m Euros each dayAdditional cost of clearing shipments. Approx 14 Euros per shipt. • = 42 m x 2.5 = 105m TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

  12. THROUGH A SINGLE WINDOW SYSTEM WE WANT TO • Avoid moving paperwork across international borders.- Eliminate the requirement to submit the same data to more than one regulatory agency, and to receive responses from a single source.- Reduce delays through having automated release where data is correct.- Eliminate the costs of manual processing. WHILE I HAVE TRIED TO PRESENT THE IMPORTANCE OF THIS TO THE EXPRESS INDUSTRY, THE REAL COST OF NOT HAVING A SINGLE WINDOW OPERATION IS TO WORLD TRADE. TRADE FACILITATION from a TRANSPORTERS POINT of VIEW

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