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Free Trade Agreements – a global perspective March 2015 www.pwc.com/ch
Free Trade Agreements – a global perspective
March 2015
www.pwc.com/ch
PwC
Agenda
Part 1 Introduction by Ambassador Thomas Kupfer
Part 2 European Overview
Part 3 Free Trade Agreement – an overview
Part 4 Practical and operational challenges in Free Trade Agreements
Part 5 Future Free Trade Agreements
Part 6 Q&A - Closing
2
PwC
Introduction by Ambassador Thomas Kupfer
3
3 March 2015 Free Trade Agreements
PwC
European Overview
4
3 March 2015 Free Trade Agreements
PwC
Estonia
France
Germany
Greece
Italy
Luxembourg
Portugal
Spain
Switzerland
US
-
20
40
60
80
100
120
140
160
180
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
% o
f G
DP
Austria Belgium Cyprus
Estonia Finland France
Germany Greece Ireland
Italy Luxembourg Malta
Netherlands Portugal Slovak Republic
Slovenia Spain Switzerland
US
Public debt as % of GDP
Source: IMF
Evolution of the Euro crisis
s
tim
ula
tio
n
Public debt as % of GDP Late 2009: Increasing government debt
Early 2010: Intensified concerns in certain European countries
May-2010: 1st Greece bail-out package (€ 100bn)
Creation of European Financial Stability Facility (EFSF)
Nov-2010: Ireland bail-out package (€67.5bn)
Jan- 2011: Created European Financial Stability Mechanism (EFSM)
May-2011: Portugal bail-out package (€70bn)
Oct-2011: 2nd Greece bail-out package (€130bn 50% write-off Greek debt €100bn)
Jun-2012: Spain bail-out package (€100bn)
Mid-2013: Replace EFSF & EFSM with European Stability Mechanism (EFM)
Free Trade Agreements 3 March 2015
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PwC
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2000 - 05 2006 - 09 2010 2011 2012 2013 2014 2015 2016 2017
% GDP Growth
EU
UK
US
EU Growth forecast
Sources: European Commission, IMF, World Bank, Oanda, Bloomberg, Reuters,Scotiabank, PwC Analysis
European Union % GDP Growth, 2000 - 17 2014 Slow recovery: Unfinished macroeconomic adjustment Slow implementation of reforms Failure in recovery of investments
2015 – 17 Brighter outlook: Sharp decline in oil prices Depreciation of the Euro ECB’s QE easing and EU Investment Plan
Stimulating Growth Restricting Growth Key Risks
• Decreasing costs for input factors
(e.g. oil, metals)
• Weakened Euro increasing
competitiveness of EU products and
services
• Increasing consumers purchasing power
stimulating private consumption
• ECB quantitative easing and EU
economic programs stimulating
investments and demand
• Lack of economic and social reforms of
EU member states weakens
competitiveness
• Uncertainty with outcome Ukraine /
Russia crisis (Sanctions)
• Countries debts and cost cutting
programs negatively impact domestic
growth
• Unemployment rate and high economic
uncertainty cause social unrests and
prevent long-term investments
• Greek’s EURO exit and bankruptcy
• UK’s EU exit and cancellation of
agreements
• Economic sanctions and energy supply
disruptions relating to the Ukraine /
Russia conflict
• Armed conflicts between EU/US and
Russia
• Increasing nationalisms in the member
states with negative impacts on workforce
mobility and availability
3 March 2015
6
PwC
Over the next 3 years the EUR is expected to meet the USD value
Sources: European Commission, IMF, World Bank, Oanda, Bloomberg, Reuters,Scotiabank, PwC Analysis
US$/Euro Exchange Rate, 2010 - 17
0.70 0.75 0.78 0.75 0.73 0.86
0.95 1.00
0.0
0.2
0.4
0.6
0.8
1.0
1.2
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Euro
2014 - 15 18% depreciation against US$ Deviation of US monetary policy from EU
2015 – 17 Brighter outlook: Improve price competitiveness of European companies Further hike inflation in 2016
3 March 2015
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PwC
The impact of a Grexit on the EU growth significantly decreased in the last two years
-10
-8
-6
-4
-2
0
2
4
6
20
00
-05
20
06
-09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
% GDP Growth
EU Greece
Sources: European Commission, IMF, World Bank, IEA, ING, Bloomberg, Reuters, Independent UK, PwC Analysis
Greece
148.3
171.3
156.9
174.9 176.3
170.2
159.2 152.0
0.020.040.060.080.0
100.0120.0140.0160.0180.0200.0
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
% of GDP
Govt Gross Debt Total Govt Revenue
2014 Rebound to growth: Rising private consumption Strong growth in exports, tourism & shipping
2015 - 17: Implementation of agreed structural reforms Exports growth due to euro depreciation
Assessment of Grexit:
• 20 – 25% chance of Grexit in 2015
• EU: Minimal impact - 2% share of EU 2014 GDP
• Greece:
• Restore wealth level by mid 2020s without Grexit
• Huge growth in inward investments with Grexit
3 March 2015
8
PwC
The UK is significantly contributing to the EU growth, however an exit would reduce the UK’s ability to influence and serve EU markets
Sources: European Commission, IMF, World Bank, IEA, ING, Bloomberg, Reuters, Independent UK, PwC Analysis
United Kingdom
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
20
00
-05
20
06
-09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
% GDP Growth
UK EU
2014 Solid growth: Strong domestic demand Formation of gross fixed capital
2015 - 17: Reduction in oil prices Buoyant private consumption Continued growth in investment
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
20
00
-05
20
06
-09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
% GDP Growth
UK leaves EU EUAssessment of Brexit:
• EU: Significant impact - 9% of EU 2014 GDP
• UK:
• Spike in inflation, 2.8% by 2018
• Cuts in economic growth
• Quicken formation of FTA agreements
Impact of Brexit
3 March 2015
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PwC
2014 - 15 2015 – 17 Outlook
Severely impacted by global decline in oil prices
80% depreciation of Rouble against US$
Retaliatory sanctions hike inflation
Dependent on geopolitical tensions & sanctions
If low oil prices continue:
• Huge pressure on the budget, limiting GDP growth • Large foreign currency reserve funds tides it through the short-term if sanctions are
removed
79.0
104.0 105.0 104.1
53.2 56.9 60.8 65.0 69.4 74.1
96.2
56.7 63.9 68.0
70.9 72.1 72.6
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
US$/barrel
Historical World Bank IMF
Russia sharp slowdown spills over to CIS
Sources: IMF, World Bank, OPEC, Oanda, Bloomberg, Reuters, Forbes, Scotiabank, PwC analysis
CIS, Ukraine & Russia % GDP Growth, 2000 - 17
-10.0
-5.0
0.0
5.0
10.0
2000 - 05 2006 - 09 2010 2011 2012 2013 2014 2015 2016 2017
% GDP Growth
Russia
Ukraine
CIS
2014 Sharp deceleration: Geopolitcal tensions – Russia & Ukraine Spillovers from weakness in Russia & Europe
2015 – 17 Moderate recovery: Russia & Ukraine: Oct 14 Ceasefire agreement Modest recovery in Euro area demand Ukraine: Uncertain outlook, 2016-17 recovery dependent on relief of geopolitical tensions
29.9 29.2 29.8 30.2 35.2
63.5 63.0
60.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Rouble
World Crude Oil Prices, 2010 - 20 US$/ Rouble Exchange Rate, 2010 - 17
Russia
3 March 2015
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PwC
Risks to consider when investing in EU
Key Countries
Trend / Topic
Consequences PwC Publications
GREXIT
• Recession in Greece and possibly Eurozone • Increased spread for other Mediterranean countries, leading
to more austerity measures and a decrease in governmental spending
• Interview with Andreas Riris, PwC Greece Partner
BREXIT • UK loses access to EU markets, making it more difficult for
UK firms to sell goods to continental Europe
• 2015 Predictions for UK economy
• UK Economic Outlook, Nov 2014
EUR/USD • Investments in Europe would become less valuable in home
currency, however, could pay off as companies
Ukraine crisis
• EU and US trade embargo against Russia renders investments in Russia less valuable and hits companies exporting to Russia hard
• Exports to and production in Ukraine difficult due to ‚civil war‘
• Meeting the challenges of crisis in Ukraine
Surge in popularity of nationalist parties
• Danger of reinstatement of border controls and limits to freedom of movement or residence can be the result of nationalist movements in EU countries
Free Trade Agreements 3 March 2015
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PwC
What does that all mean to your business?
Free Trade Agreements 3 March 2015
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PwC
CEOs are more optimistic about mature markets this year
Q: Which countries, excluding the one in which you are based, do you consider most important for your overall growth prospects over the next 12 months? Source: PwC 18th Annual Global CEO Survey
2015 2014 2015 2014
Free Trade Agreements 3 March 2015
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PwC
Country analysis should be reviewed regularly to avoid surprises
Average real wages % change p.a. Average wage per month (US = 100)
“Five years ago, if you asked me the best place to set up a factory, first would be China, second would be China, and third would be China”, he says. “Today it’s very different.”
Harry Lee, Chief Executive Officer, Tal Apparel, Hong Kong garment maker
Source: The Economist Source: PwC, ‘Global wage projections to 2030’ (September 2013
“The utopia for one-stop sourcing for quality and low price has been China … but utopias never last”
Matt Rubel, Chief Executive Officer, Collective Brands
Philippines India
Mexico
China
Poland
South Africa
Turkey Spain
UK US
0
20
40
60
80
100
2013 2030
-6
-4
-2
0
2
4
6
8
10
12
14
2008 2009 2010 2011 2012 2013
China India Indonesia Malaysia Philippines Thailand Vietnam
Free Trade Agreements 3 March 2015
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PwC
Europe is the largest and most accessible market
Private consumption at current market exchange rates
Source: Oxford Economics, PwC the 15th annual global CEO survey 2012
European is perceived to be the easiest market for export
0% 20% 40% 60% 80% 100%
Sub-Saharan Africa
China
Russia and other CIS
Middle East and North Africa
Japan
Australia and other Oceania
Latin America
Rest of Asia
US
EU
Very difficult Somewhat difficult Not difficult at all
Source: Oxford Economics
Free Trade Agreements 3 March 2015
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PwC
Europe’s attractiveness to Chinese companies …..
• Global and luxury brands and advanced technology
• Improve manufacturing competences and capabilities
• Deliver value for money - quality output offset start-up costs
Chinese FDI in EU-27 Chinese direct investments in EU-27 vs. US
Chinese direct investments in EU-27 by industry
Automotive12%
Chemicals17%
Communica-tions6%
Natural resources
8%Electronics
6%
Machinery5%
Other18%
Transportation6%
Metal mining & processing
6%
Utilities16%
Are European brands a steal?
• Set up operations in regions with large and strong domestic demand
• Stability and transparency of political, legal and regulatory environment
• Quality and diversity of the labour force
Free Trade Agreements 3 March 2015
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PwC
European brands are a steal!
Eurozone confidence heat map
Source: PwC Global Economy Watch
“The kind of assets that Chinese companies look for overseas has also begun to shift, from natural resources and energy, to an emerging appetite for consumer brands”
Squire Sanders
Opportunities in brand and innovation base acquisitions as well as market access
Free Trade Agreements 3 March 2015
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PwC
Europe – a truly diversified continent
Eurozone & EU countries
EU countries
Other European countries
2011 average annual salary in constant USD
Note: China average wage in 2010 Source: OCED, Romania National Institute of Statistics, State Statistics Services of Ukraine, Turkish Statistical Institute
Average wage of selected Asian countries
20,273
United Kingdom
Spain Portugal
France
Germany
Italy Hungary
Sweden
Poland
50,366
53,069
46,984
22,549
37,583
39,112
47,704
13,811
14,177
Czech Republic
16,922
54,459
81,475
Norway
Finland
Ireland
66,822
Estonia
14,955
Greece
28,434
7,912
3,838
23,671
8,775
Russia
Ukraine
Bulgaria
Romania
Turkey
China 5'747
Malaysia 5'824
Philippines 2'246
Vietnam 1'152
Indonesia 1'089
India 943
3 March 2015
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PwC
Germany 2'131
United Kingdom
1'756
France1'506
Italy1'151
Spain717
Netherlands 446
Switzerland 301
Belgium272
Poland 262
Austria 231
Denmark171 Finland
150
Greece143
Portugal 123
Ireland 123
Czech Republic
83
Hungary 57
15'000
20'000
25'000
30'000
35'000
40'000
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5%
20
11 G
DP
pe
r c
ap
ita
GDP CAGR% (2000 - 2011)
High potential markets
Eurozone average GDP CAGR 1.2%
Different characteristics of individual countries, driving different value propositions
Mercedes-Benz C-Class EUR 35,000
Dacia Sandero EUR 9,000
Source: Eurostat
Switzerland as a pilot market for Europe
• Diverse cultures
• Diverse languages
• High purchasing power
• Brand awareness
Free Trade Agreements 3 March 2015
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PwC
10
00
km
Switzerland’s relevance to your European strategy
London 1:40
Paris1:15
Berlin 1:25
Rome 1:30
Barcelona 1:40
Vienna 1:20
Warsaw 1:40
Prague 1:15
• Three languages and cultures in one country: a multi-cultural segmented consumer market for product research, providing pilot markets for the 3 largest EU neighbour markets (jointly account for 67% GDP of Eurozone and nearly 50% GDP of EU)
• EU‘s biggest trading partner
• Heart of Europe – allowing efficient business travels to visit your customers and business partners
From Zurich From Dublin
Paris 1:15 1:45
Berlin 1:25 2:15
Rome 1:30 3:00
London 1:40 1:25
Barcelona 1:40 3:25
Prague 1:15 2:40
Warsaw 1:40 3:00
Comparison of flight time
50
0k
m
Free Trade Agreements 3 March 2015
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PwC
Free Trade Agreements – An Overview
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3 March 2015 Free Trade Agreements
PwC
What does a Free Trade Agreement cover?
• Fostering Trade in Goods
- Primary focus in duty reductions
• Trade related aspects
- Reduction of non-tariff barriers to trade (e.g. procedures)
- Geographical origin and intellectual property rights
• Other topics
- Trade in services, environment protection, etc.
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3 March 2015 Free Trade Agreements
Different topics included to cover individual needs of
contracting parties
PwC
Free Trade Agreements: The Spaghetti Bowl Effect
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3 March 2015 Free Trade Agreements
Quelle: WTO Discussion Papers No. 12 “The Changing Landscape of Regional Trade Agreements: 2006 Update”, via www.wcoomd.org
PwC
Free Trade Agreement – an overview
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3 March 2015 Free Trade Agreements
Figures according to World Trade Organization as of 8 January 2015
446
259
Agreements notified
Agreements in force
Are they the same?
Bilateral and multilateral agreements
Asymmetric rules possible (e.g. different duty reduction on each side)
Different rules in each agreement possible
PwC
Implications of a FTA for a production company
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3 March 2015 Free Trade Agreements
Business model alignment to build up presence in new markets and to gain customer base and to benefit from the geographic location, competencies, regulatory environment and other aspects.
In addition to the customs benefits provided in the FTA, a tax-optimized business model can be implemented taking into account the entire value chain which allows you to build an operationally robust business set-up that simultaneously allows you to manage your tax burden properly and in a suitable manner
PwC
Value Chain Transformation
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3 March 2015 Free Trade Agreements
Chinese Manufacturer
EU Customer
Swiss Trader
No duties under the Free Trade Agreement
Standard duty rates
Textiles and textile articles: between 0,0% and 12,0%
Footwear and the like: between 3,0% and 17,0%
Chinese Manufacturer
EU Customer
Swiss Manufacturer
No duties under the China – Swiss Free Trade Agreement
No duties under the EU – Swiss Free Trade Agreement
Semi-finished goods
Finished goods
Transforming the Value Chain
PwC
Customs Tariff Classification Important aspect for the customs handling
Example: Coffee Machine
• For domestic use: 8516.7100
• Usually commercial deployment: 8419.8100
• Parts thereof?
- Water heater / immersion heaters: 8516.10..
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3 March 2015 Free Trade Agreements
Imports China under the FTA with Switzerland
PwC
Impacts of currency exchange fluctuations on qualification
Exchange rate 1.20 Exchange rate 1.00
Raw Material EU (in EUR) 4’500 4’500
Raw Material EU (in CHF) 5’400 4’500
Raw material CH & value add 2’600 2’600
Profit 2’000 2’000
Ex-works price 10’000 9’100
No Swiss Origin Swiss Origin
Freight costs 1’000 1’000
Customs duties China 32.0% / 3’520 19.2% / 1’939
Total costs procurement 14’520 12’039
Advantage 2’481 (17.1%)
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Free Trade Agreements 3 March 2015
Coffee machine / Rule of Origin Swiss China FTA: Non originating material <50%
PwC
How can a company prepare?
Building up know-how to be familiarised to apply the different rules
Creating awareness amongst different departments
Customs responsible or FTA champion
Including free trade topic in the development of new products or in the purchasing and sales department
Customs tariff classification
Automated issuing of origin confirmations
Origin calculation
Regular updates (e.g. new agreements, changed rules
People IT Processes
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3 March 2015 Free Trade Agreements
PwC
Practical and operational challenges in FTAs
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3 March 2015 Free Trade Agreements
PwC
It’s all about interpretation… part 1
• Company X gets a Certificate of Origin (Form D) under ATIGA stamped by Department of Foreign Trade in Province A in Thailand to certify preferential origin for goods shipped to Indonesia to its client Company Y.
• The port of loading of the goods is located in Province B in Thailand.
• Indonesia Customs Authority requests a retroactive verification to the Thailand Authorities.
Reason obtained: The Certificate of Origin has not been stamped by the Authority located in the same Province as the port of loading.
• Thailand Authorities never responded to the request.
As a consequence, Indonesia Authority rejects Certificate of Origin and the preferential treatment of the goods at importation.
Company Y had to pay duty.
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Free Trade Agreements 3 March 2015
PwC
Multiple party transactions - Back-to-Back (B2B)
32
• Invoicing flow is different than physical flow of goods • To suit current business model: Usually manufacturing entity in one location (cost-effectiveness as location consideration) and HQ in another (tax- optimisation as location consideration)
• Reason? Price-Masking: End-customers should not know the actual cost of manufacturing (HQ usually charge a mark-up)
• Rules of Origin: FTAs are based on archaic business model where the seller and manufacturer are the same, or at least located in the same country
• What are the practical issues?
Free Trade Agreements 3 March 2015
PwC
Third Party Customer
Third Party Manufacturer /
Supplier
Third Party Invoicing
33
Flow of goods
Flow of invoices
China
Singapore
Company B Regional HQ
USD $100
Certificate of Origin
Malaysia
USD $300
Trade Agreement:
ASEAN – China FTA
Free Trade Agreements 3 March 2015
PwC
ACFTA – FORM E
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Free Trade Agreements 3 March 2015
PwC
Third Party Customer
Third Party Manufacturer /
Supplier
Third Party Invoicing – Back-to-Back CoO (MC)
Flow of goods
Flow of invoices
China
Singapore
Company B Regional HQ USD $100
Certificate of Origin
Malaysia
USD $300
Trade Agreement:
ASEAN – China FTA
CoO Movement Certificate
35
(d) The product which is to be re-exported using MC shall be under control of the Customs Authority of the intermediate Party. The products shall not undergo any further processing in the intermediate Party, except for repacking and logistics activities consistent with Rule 8 of the Rules of Origin for the ACFTA
Extracted from Rule 12 of the Revised OCP for the
rules of origin of the ACFTA
Free Trade Agreements 3 March 2015
PwC
ACFTA – FORM E
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Free Trade Agreements 3 March 2015
PwC
Last but not least, it’s all about interpretation… part 2
• Third party invoicing
• Does it mean it is limited to 3 parties?
• Or does it refer to multiple invoicing parties as a technical term?
Some of the importing countries in ASEAN do understand under third party invoicing that only 3 parties can be involved in the value chain. If there is a fourth party involved, or more, questions might be raised by the importing Authority and as a consequence, an interruption of the supply chain.
In a worst case scenario, Certificate of Origin may be rejected.
37
Free Trade Agreements 3 March 2015
PwC
Future Free Trade Agreements
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3 March 2015 Free Trade Agreements
PwC
Global Trends
• From local to regional to worldwide
- “Distance” between trading partners becomes bigger, through FTAs it becomes closer
• Regional Blocks
- E.g. ASEAN, AEC, EU, NAFTA, MERCOSUR
• Race to establish template for future trade agreements
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3 March 2015 Free Trade Agreements
PwC
Trans-Pacific Partnership (TPP)
• Proposed regional regulatory and investment treaty
• Market access
• Recognising development of production and supply chains among TPP members
• Intellectual property provision
• Investor-state arbitration
• Postponed from March to April 2015
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3 March 2015 Free Trade Agreements
Members
2005: Brunei, Chile, New Zealand, Singapore
2008: United States, Australia, Peru, Vietnam
Malaysia (2010); Mexico, Canada (2012); Japan (2013)
Potential members: China, Korea (announced interest in 2013), Taiwan, Philippines, Laos, India, Colombia, Indonesia, Cambodia, Bangladesh
PwC
Transatlantic Trade and Investment Partnership (TTIP)
• Market access
• Including Trade in Service, Investment and E-Commerce
• Technical Barriers to Trade
• Specific sectoral agreements (e.g. textiles, chemicals, cars)
• Broader rules (e.g. public procurement, intellectual property, competition policy)
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3 March 2015 Free Trade Agreements
Members
European Union and United States
Potential members: Albania, Iceland, The former Yugoslav Republic of Macedonia, Montenegro, Serbia, Turkey (EU accession candidates)
TTIP indicated to be open for other members once in force
PwC
Regional Comprehensive Economic Partnership (RCEP)
• Broaden and deepen ASEAN+1 pacts
• Minimization of FTAs “spaghetti bowl” problems thanks to harmonization of Rules of Origin and faciliation
• RCEP may conflict with TPP
• 7 rounds of negotiation, outcome less optimistic
• Issues:
India, South Korea and China to open only 40% of their tariff lines for benefits
India suggested that concessions may vary depending the member country
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3 March 2015 Free Trade Agreements
Members
ASEAN +6 (Australia, China, India, Japan, Korea, New Zealand)
PwC
ASEAN Economic Community (AEC)
• 4 pillars: (1) Single Market & Production base, (2) Competitive Economic Region, (3) Equitable Economic development, (4) Integration into the global Economy
• Gradual harmonisation of certain policies and gradual removal of restrictive policies
• It is not an EU – no customs union, no common external tariff, not a political union, customs borders will remain
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3 March 2015 Free Trade Agreements
Members
ASEAN
“Implementation date” 31 December 2015
PwC
Looking ahead
• More Free Trade Agreements
• Spanning global network
• Utilising benefits in global supply chains
- Interplay between purchase, production and sales
• Holistic approach
- Duty benefits vs. administrative burden
- Extended costs and savings opportunities
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3 March 2015 Free Trade Agreements
PwC
Q&A - Closing
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3 March 2015 Free Trade Agreements
PwC
Q&A - Closing
March 2015 46
Felix Sutter
Partner Risk Assurance Services, Head Asia Desk PricewaterhouseCoopers AG, Zurich Phone: +41 58 792 28 20 [email protected]
Simeon L. Probst
Director Customs & VAT PricewaterhouseCoopers AG, Basel Phone: ++41 58 792 5351 [email protected]
Michel Anliker
Manager Customs PwC WMS Asia, Singapore Phone: ++65 6236 7307 [email protected]
PwC
Customs & International Trade Compliance in Asia Pacific - doing the groundwork
Why should you attend?
Any professional involved in the cross –border buying or selling of goods is touched by trade compliance considerations. Whether employed in supply chain operations, planning, procurement, or finance, the failure to understand and plan around import/export regulatory requirements can lead to unanticipated costs and a lot of wasted time. Product delays, stock-outs, emergency shipments, additional warehousing costs, and customs penalties are all common consequences of compliance failures. Many businesses operating in Asia Pacific choose to have their logistics service provider (“LSP”) handle customs formalities at overseas borders; relying on their operational knowledge and relationships with customs officials. However LSPs often lack technical training and the legal responsibility for customs compliance remains with the owner of the goods. Most customs authorities expect informed oversight over LSPs and customs brokers. To equip Singapore based business professionals with the ability to take a more informed and pro-active role in the management of customs and trade risk in Asia Pacific, we will cover the following topics during this two-day workshop:
• Recognising and monitoring customs and trade “hot spots” throughout the supply chain
• Introduction to customs valuation, classification, and FTA compliance
• Understanding the trade compliance roles and responsibilities of the various business functions, LSP, and customs authorities
• Essentials of customs rules and procedures in Asia Pacific
• Identifying opportunities for duty savings and cash-flow improvement across the region
Expand your horizons with customs and international trade know-how
Workshop details
Date: 25 & 26 March 2015 Time: 9.00am to 5.00pm Venue: 8 Cross Street, PWC Building, Level 17, Singapore 048424
Fees
PwC Clients, Alumni & Public: S$980 Fees includes 7% GST, refreshments and workshop kit.
Who should attend?
Sales, procurement, logistics, supply chain
planners, and legal and finance professionals
who wish to build their knowledge of cross-
border trade compliance to better manage
business risk and identify trade savings
opportunities
PwC’s Academy
