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Global Express Association

Trade Facilitation: Challenges for Express Delivery Companies ICC Symposium on Trade Facilitation Mexico, 13-14 June 2012. Global Express Association. Express Delivery Services. 30 million shipments daily 220 countries and territories 1,700 airplanes 200,000 ground vehicles

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Global Express Association

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  1. Trade Facilitation:Challenges for Express Delivery CompaniesICC Symposium on Trade Facilitation Mexico, 13-14 June 2012

  2. Global Express Association

  3. Express Delivery Services • 30 million shipments daily • 220 countries and territories • 1,700 airplanes • 200,000 ground vehicles • Time guaranteed delivery: from same day to 72 hours

  4. High value-added, time-guaranteed

  5. Benefits of trade facilitation Up to 10% reduction in cost of trade

  6. Transparency and Predictability • Publication of laws and regulations • Business consulted before rules are amended • Binding advance rulings

  7. Efficient Borders • Use of international standards and guidelines • Standard documentation • Automation • Separation of release and clearance

  8. De minimis Realistic de minimis thresholds • Exempt low value shipments from taxes and duties and full customs formalities • Fiscal efficiency CAPEC study --- 200 USD de minimis 31 bnUSD benefits

  9. Efficient Borders • About 30 WCO members apply immediate release procedures • 45 WCO members apply a de minimis regime Source : GEA customs capability reports 2009

  10. Risk Management / Assessment • Determine which shipments get inspected • On a risk basis • Neither random nor ‘inspector discretion’

  11. Expedited Shipments • Official recognition would be beneficial (where it does not exist yet) • Any shipment for which expedited release is requested (as per WCO IRS) and meets the stipulated conditions should be able to secure such release.

  12. Why it matters: Example • Country A recently removed de minimis thresholds for consignees with commercial address • No official communication issued • Suddenly all low-value commercial shipments subject to customs duties • 50% of all shipments affected • Consignees refused shipments • Increase in administrative burden (staff) • Slowing down of express supply chain

  13. Why it matters: Example • Country B recently removed de minimis thresholds for twice-a-year private imports • Announced overnight on eve of major sales day in USA • Target was internet sales • Confusion leads to backlog at customs • Just-in-time manufacturing affected

  14. Why it matters: Clinical Trials Kits, Protocols and Logistic Instructions Test Medication Cultures Test Results Central Laboratory Investigator /Assessment Sites Manufacturing Site Fulfillment Centre Ambient and frozen substances must be delivered with strict delivery deadlines of hrs. Time-critical – life saving

  15. Why it matters: Customs holds • Up to 1.5 million shipments held every month • 50% of countries surveyed hold 1 in 4 incoming shipments • 20% of countries hold 1 in 2 ! • Service lost to customers

  16. Ways forward • Adoption of the WTO Trade Facilitation agreement • Increased adoption of the Immediate Release Guidelines • More ratifications to Kyoto Revised Protocol

  17. Thank you

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