DAJV Fachgruppentag UPS on TTIP

1. DAJV Fachgruppentag UPS on TTIP Dawn Kimmich, UPS International Compliance Coordinator March 21, 2014, Frankfurt

2. UPS Global • Headquarters: Atlanta, GA • Revenues 2013: $55.4 Bill. • Delivery Volume 2013: 4.3 Bill. • Workforce: 395,000 • Areas served: over 220 countries & territories • Operating Facilities: 1,990 • Ground Fleet: 96,361 vehicles • Air Fleet: 237 own, 388 chartered aircraft • Airports served: 728 worldwide • Online Tracking: 47.5 Mill. Daily requests • Customers: 9.4 Million daily UPS WORLDPORT – LOUISVILLE, KY

3. UPS in Europe • Region Headquarters in Brussels, Belgium • 55 countries & territories served in Europe • 44,000 employees in the Region • Approx. 11,500 points of access UPS Centers, MBE Stores, UPS drop-off locations, Kiala Points and UPS Access Point™ locations • 8,800 vehicles • 65 airports served • 52 intra-Europe • 13 intercontinental • 379 daily flight segments 270 intra-Europe 109 intercontinental UPS HUB - COLOGNE

4. UPS in Germany Germany HQ: Neuss 2,200+ points of access 88 operating facilities (including ~54,000 m2 warehouse space) European Air Hub at Cologne Bonn Airport 17,000 employees 3,600+ delivery fleet (package cars, vans, tractors) Airports served: Berlin, Cologne, Munich

5. Why UPS supports TTIP?Trade Facilitation Modernized & Efficient Customs processes  Exemption from duties for low value shipments, immediate release, single window to submit data Individual customers benefit  More choice, lower cost and simplified trade terms SMEs (small & medium sized enterprises) benefit  Less “red tape” @ borders & regulatory coherence makes international trade more accessible Economic & Employment boost  More goods move to more places. Transporters need more people to move them

6. Why mention Small & Medium sized enterprises? SMEs account for 60-70% of employment in most OECD countries SMEs account for (Private sector) 85% of jobs in EU. 64% in USA BUT 60% of US exporting SMEs export to only 1 country 75% of EU exporting SMEs export to only other EU countries

7. Why? International trading landscape is not accommodating to smaller or less-resourced SMEs ▼ Lack of understanding of different regulatory standards and licensing procedures ▼ Lengthy & costly procedures for moving goods between the EU & US Direct to Consumer Ocean Freight Customs Clearance Manufacturing Plant Bill of Lading LTL Shipping Retail Outlet Retail Shoppers Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.

8. Examples Direct to Consumer • Higher De minimis thresholds • Advanced data customs pre-clearance • Single window for customs clearance Customs Clearance Manufacturing Plant Bill of Lading LTL Shipping Retail Outlet Retail Shoppers

9. Higher De Minimis thresholds Goods below $800 value Are exempt from customs duties and taxes ▼ Have a simpler customs clearance process ▼ Easier import process Shorter time in transit ▼ Fewer headaches for SME. SME can sell goods in more countries SME’s buyer has more buying choice SME’s buyer gets package faster Cheaper for consumer Direct to Consumer Ocean Freight Customs Clearance Manufacturing Plant Bill of Lading LTL Shipping Retail Outlet Retail Shoppers Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.

10. Advanced Data Customs Pre-clearance“Immediate Release” Meanwhile UPS carries goods from a seller, over roads, past UPS facilities, between cities …. ▼ UPS can electronically communicate pre-agreed data to Customs Authorities ▼ When the package physically gets to Customs, it potentially already cleared Customs ▼ Packages don’t sit with Customs. Packages arrive sooner. Customers are happier. Direct to Consumer Ocean Freight Customs Clearance Manufacturing Plant Bill of Lading LTL Shipping Retail Outlet Retail Shoppers Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.

11. Single window for customs clearance Common template for import/export data elements for customs & security ▼ Single window for electronic submission of data in EU and US ▼ Easier export process for SME Packages don’t sit at customs. Packages arrives sooner. Customers happier. Direct to Consumer Ocean Freight Customs Clearance Manufacturing Plant Bill of Lading LTL Shipping Retail Outlet Retail Shoppers

12. An International trading landscape which is easier for SMEs ▼ More SMEs can go Trans-Atlantic with more goods ▼ Customers have more choice Customers get goods faster Direct to Consumer Ocean Freight Customs Clearance Manufacturing Plant Bill of Lading LTL Shipping Retail Outlet Retail Shoppers Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of Customer, unless expressly authorized by UPS.

13. TTIP is also about People UPS employs 395,000 people globally 22 packages per day (which cross a border) support 1 more job at UPS

14. TTIP is also about People A comprehensive TTIP could annually boost UPS volume by 13 million packages and support UPS 2400 jobs

15. Today, UPS moves 2% of Global GDP around 220+ countries & territories With TTIP  EU/US Trade becomes easier ▼ More goods for sale. More choice for consumers ▼ More goods move WEF estimates that reducing supply chain barriers to trade could increase global GDP by nearly 5% and trade by nearly 15%

16. Thank you for the opportunity to be here