ups global trade compliance webinar
TRANSCRIPT
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Global Trade Compliance
Changing the global trade landscape
• Presenters
• Host
• Greg Maddaleni, LCB
• Customs Brokerage Manager
• Panelist
• Bill Ansley
• Vice President, UPS Trade
Management Services
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Global Trade Compliance
Agenda
Global trade regulatory trends
Impacts to a company’s trade compliance
Available company trade compliance options
UPS® Tradenomics viewpoint
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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2016 – a big year in trade
Numerous acts and initiatives to facilitate trade
Item Facilitates
trade
Reduces
tariffs
US Customs Trade Facilitation Act – 2016 a
Union Customs Code (EU) – 2016 a
WTO Trade Facilitation Agreement – pending ratification a
US ACE implementation – 2016 a
Trans-Pacific Partnership – pending ratification a a
T-TIP (EU – US) – pending a a
Numerous (existing) FTA’s a
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
5
2016 – a big year in trade
The global trade environment is a mixed picture
• Trade detractors
• Brexit
• US election year
• Trade restrictions outpacing trade remedies (2016 WTO report)
• Longer term trends
• Trade openness
• Population growth, rise in middle classes worldwide
• Cross border company mergers & acquisitions
Sources: New York Times (Jun-Jul 2016), WTO (Jul 2016), OECD Observer (May 2013), UNCTAD (Oct 2015))
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Trade Openness (World)(Trade as a percent (%) of GDP)
% of
GDP
Source: World Bank (May 2016)
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Impact of Trends to Trade Compliance –
Assessing your challenges and responsibilities
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Do any of these scenarios sound familiar to you?1. Company export sales constantly increasing
2. We’ve acquired a new overseas company (or they have acquired us)
3. New branch facilities in other countries
4. We have evolved to multiple operating divisions, across multiple countries
Challenges
Rise in company
export sales
Growing global supply chain
Multiple operating divisions
Varying trade
regulations worldwide
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and
other public sources and reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and
completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Compliance basics – “Must know, must have”
Must know:
Must Have - Management Strategy to:
“In the middle of
difficulty lies
opportunity”
- Albert Einstein• Corporate policies and standards
• Contractual agreements
• 3 P/L Partners – brokers and forwarders
• Declaration process and governing agencies in each country
• Local country requirements and resources
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and
other public sources and reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and
completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Compliance Basics – “Must Know, Must Have”
Must have (or must be able to):
• Avoid potential corruption
• Properly declare valuation
• Determine and share product classification
• Verify country of origin and qualify FTA/Duty deferral claims
• Reconcile quantity received vs. declared
• Maintain records and data
“In the middle of
difficulty lies
opportunity”
- Albert Einstein
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Trade Compliance Blind Spots
Lack of Controls:
• Designated Compliance Manager
• 3 P/L Selection and Management
• Established Procedures
• Audit and Verification Programs
• Corporate Oversight
Training and Awareness:
• Corporate Policies and Standards
• Basic Compliance and Declaration Process
• Documentation and SOPs
• Established Training Programs and
Certifications
• Recurrent Training and Documentation
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Trade Compliance Management –
Available alternatives
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Global Brokerage Models –”The Good, The Bad and The Ugly"
Carry clear vs. standalone brokerage
• Brokerage provided as part of transportation function
• Broker responsible for clearance regardless of transportation arrangements
Consolidated brokers vs. multiple brokers• Brokerage consolidated by country/region/globally across all businesses
• Broker selected by business, mode of transportation, or other special needs
Managed services• Brokers managed by 4 P/L or other outside resource
• Managed services control tower to manage and monitor brokers BPO Control Tower
Broker
Forwarder
Carry Clear Standalone
Importer
Broker
Broker
Broker
Broker
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
The case for managed services
Knowledge and control of import and export activities globally
• “Trusted partner” providing knowledgeable resources to augment importer’s internal resources
• Simplified communication through single managed services provider (MSP)
• Regional centers providing local expertise and coverage
• Broker and entry management with auditing
– Reduce the potential of supply chain delays and costly penalties
• Ability to:
• Implement and monitor global standards
• Monitor shipment activity and track key import data across multiple brokers
• Develop and track relevant KPI’s to positive change
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Global technology considerations
• How can ERP* systems assist with global compliance management?
• Often companies use multiple ERP’s
• Can a GTM** system provide a complete solution?
• What else may be required such as:
– Additional ongoing content?
– Skilled decision making?
* Enterprise resource planning
** Global trade management
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
The benefits of a good compliance program
Enhances your supply chain with increased velocity and fewer disruptions or delays
• Reduces risks
• Provides lower operating costs
• Reduces order cycle times for fulfillment
• Increase sales
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Polling questions results
Trade compliance blind spots
What blind spot concerns you the most in the "lack of controls" area?
Corporate
Policies and
Standards
Basic
Compliance and
Declaration
Process
Documentation
and SOPs
Established
Training
Programs and
Certifications
Recurrent
Training and
Documentation
14% 8% 21% 19% 20%
Designated
Compliance
Manager
3 P/L Selection
and Management
Established
Procedures
Audit and
Verification
Programs
Corporate
Oversight
10% 10% 22% 41% 16%
What blind spot concerns you the most in the "training and awareness" area?
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Global trade compliance
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• Even with periodic detractions, global trade continues to increase
• Inquire about your own Tradenomics discussion
• Available at checkout
The material and information contained in this document is for general information purposes only. UPS does not act as a customs law adviser. You
should not rely upon this material or information as a basis for making any business, legal or any other decisions. UPS makes no representations or warranties
of any kind, express or implied about the completeness, accuracy, reliability, suitability or availability with respect to the material and information contained in
this document for any purpose. UPS will not be liable for any false, inaccurate, inappropriate or incomplete information presented in the document.
Global Trade ComplianceAugust 4, 2016
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