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Magazine of the International Federation of Freight Forwarders Associations No. 131 | March 2020 LITHUANIA At the Crossroads of Europe COUNTRY REPORT Discover the potential of the Baltic states UNFORESEEN Be careful of consign- ing a Bill of Lading CLOSE TO THE WCO Common interests with customs bodies
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Page 1: Magazine of the International Federation of Freight ... · the releaseofthe cargo at the destina-tion; especially when theOcean Bill of Lading issuedbythe ocean carrier is negotiable.

Magazine of the International Federation of Freight Forwarders Associations

No. 131 | March 2020

LITHUANIAAt the Crossroadsof Europe

COUNTRY REPORTDiscover the potentialof the Baltic states

UNFORESEENBe careful of consign-ing a Bill of Lading

CLOSE TO THE WCOCommon interestswith customs bodies

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Wherever your pharma goes.We keep cool.

When it comes to delicate cargo, both logistics experts and global pharmaceutical manufacturers value our dependability. As a CEIV-certified airline, we strive to play our part in the cool-chain and meet our customer’s temperature requirements. Even in the toughest conditions.

We care for your cargo.swissworldcargo.com

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No. 131 | March 2020 FIATA REVIEW 3

CONTENTS

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► Forwarder’s Liability Insurance► Errors & Omissions Insurance► Surety Bonds► Cargo Insurance► Business Insurance► Claim Handling & Subrogation Services

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Headquarters’ Session, March 20204 A detailed programme

and a lot of interest

Editorial5 From the President’s Desk

An Australian Case6 A lesson learnt from the

consignment of a Bill of Lading

Country Report8 Lithuania –

where Westand East meet

Customs Affairs Institute (CAI)10 Our close cooperation with

the WCO and the forthcoming5th WCO Global AEO Conference

Personally12 Meet Galo Molina Aguilar,

Vice President of FIATA,and get a taste of theLatin American point of view

13 New faces in FIATA’s Secretariat

Here & There / Agenda14 Happy Birthday!15 Forthcoming Events15 Masthead

FIATA SecretariatSchaffhauserstrasse 104CH-8152 Glattbrugg/SwitzerlandPhone +41 (0)43 211 65 00, Fax +41 (0)43 211 65 [email protected], www.fiata.com

CoverKlaipeda (Lithuania) atdusk, with the old townand the river Dane.

Photo: iStock/proslgn

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Thursday, 26th March 2020Time Meeting / Session Room Contact person

07:15 – 17:00 Registration Foyer Barbara Wieser

08:00 – 10:15 Region Africa and Middle East Zürich Bassil Eid

08:30 – 10:15 Region Americas Saas Fee / Zermatt Verena Schaer

08:30 – 10:15 Region Asia Pacific Arosa / Davos Daniel Bloch

08:30 – 10:15 Region Europe Basel Joana Nunes

10:15 – 10:45 Coffee break Foyer

10:45 – 12:00 Advisory Body Legal Matters Zürich / Basel Stephen Morris

12:00 – 13:00 Lunchtime Free disposal

13:00 – 14:15 Advisory Body Safety and Security Zürich / Basel Bassil Eid

14:15 – 15:45 Multimodal Transport Institute Zürich / Basel Joana Nunes

15:45 – 16:15 Coffee break Foyer

16:15 – 17:45 Know your FIATA Zürich / Basel Robert Voltmann / Stéphane Graber

Friday, 27th March 2020Time Meeting / Session Room Contact person

08:15 – 17:00 Registration Foyer Barbara Wieser

08:30 – 10:00 Airfreight Institute Zürich / Basel Daniel Bloch

10:00 – 10:30 Coffee break Foyer

10:30 – 11:45 Custom Affairs Institute Zürich / Basel Daniel Bloch

11:45 – 12:45 Lunch hosted by FIATA Lakeside

12:45 – 14:15 Transitioning FIATA Logistics Institute FLI(Advisory Body Vocational Training / FIATA Logistics Academy)

Zürich / Basel Verena Schaer

14:15 – 14:45 Coffee break Foyer

14:45 – 16:00 Advisory Body International Affairs Zürich / Basel Bassil Eid

16:00 – 17:15 Advisory Body Information Technology Zürich / Basel Bassil Eid

Saturday, 28th March 2019Time Meeting Room Contact person

09:00 – 12:00 Meeting of the Extended Board Bern Stéphane Graber

PLEASE NOTE:If you are not a FIATA member you may not be admitted to the Headquarters' Session. If you wish to become a member, please log on tohttp://fiata.com/membership/becoming-a-member.html

FIATA HEADQUARTERS’ SESSION 2020 PROGRAMMEZurich, 26th–28th March 2020Swissotel Zurich (Oerlikon), Schulstrasse 44, 8050 Zürich

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No. 131 | March 2020 FIATA REVIEW 5

FROM THE PRESIDENT’S DESK

options that it will take forward to theExtended Board for further discussionand development. Strategic planning anddeliverables are now a Standing AgendaItem for Presidency meetings.

In order to ensure that Members’ Asso-ciations are kept informed as to whatis happening in FIATA, a session titled“Know your FIATA” will be deliveredby the Secretary General Bob Voltmannand the Director General at the FIATAHeadquarters’ Session. This gives effect tomy commitment made in the December2019 FIATA Review. “In my period ofoffice I will work to ensure that FIATAis inclusive for all its Members and thatinput is respected at all levels.” I have pre-viously commented that the strength ofFIATA rests with its members, and whilethe architecture of FIATA and its Secre-tariat are now either in place, or will beover the next three months, this is all forone purpose... to serve you, the members.However, for that service to be relevantyou the members must contribute withyour skill sets, for we are better as a wholethan as individuals. I look forward tomeeting up with you in the near future.

Yours,Basil L.S. Pietersen

FIATA President

My first words would have been towish you a happy new year and a

prosperous 2020 – however as the yearhas unfolded to date those words arenow muted by the Coronavirus. Manyof our friends and industry colleaguesin China are severely impacted by thiscalamity and to those in particular, andthe country in general, our thoughts arewith them for a speedy end to the healthcrisis and for their safety, and that oftheir families. This ever-expandinghealth crisis has now impacted upon anever-widening list of countries. Whatthe crisis has brought sharply into fo-cus is the economic dependence of alleconomies on a facilitated internationalsupply chain in which FIATA membersplay a pivotal role. The prosperity of allin 2020 will be impacted by the restrict-ed movement of people for an undeter-mined period of time.

The international freight forwarding in-dustry is now clearly in the impact zoneas aids to manufacture, key componentsand consumables slow down in produc-tion, and how speedy delivery can beachieved on production resumption,with airfreight being acutely affected,with the cancellation of scheduled airservices, and sea freight struggling withport restrictions and storage capacities.Your Association has been working to en-sure the voice of the international freightforwarder is heard, as others clamour forcost alleviation, changes to supply chainsand business needs. FIATA continues tomonitor the supply chain disruption andprovide information to members.

What struck me when I sat down to penthis article was that five months of myPresidency have already passed. In thistime, however, key issue have been ableto be delivered that impact on FIATAand its future. Of particular impor-tance was that our new Director GeneralStéphane Graber, who will guide FIATAfor the future, commenced work on1st January 2020. In the period since hestarted work Stéphane has energetically

Dear Members, friends and colleagues

set about building FIATA and its capa-bilities to enable a better structure of theSecretariat to support member’s needs,realign functions and rekindle the FIATAinterface with international and regionalgovernmental and non-governmentalinstitutions.

In this regards I am happy to adviseyou that new international trade law, pro-fessional development and training andinformation technology staff have been re-cruited for the Secretariat. Work continuesas to specialist recruitment on communica-tions, events and projects and cross borderoperations, and we anticipate that thesepositions will be filled in the next month.This has driven the need for premises inGeneva and these have now been secured.The Director General and his staff will takeup residence on 1st April 2020. Duality ofoperations in Geneva and Zurich will con-tinue; however, it is perceived that opera-tions of the Secretariat will be centralised inGeneva by the last quarter of 2020. FIATAhas now embarked on the journey of re-newal and on the basis of the support beingreceived from external parties, the goodwillbeing exhibited and the resources now be-ing recruited I am very confident with whatthe future will bring for FIATA and itsmembers. I would also like to acknowledgethe work that the acting Director GeneralStephen Morris did in 2019 in stabilisingFIATA, working on the key element of thefuture, the recruitment of the new DirectorGeneral, and maintaining the operationsof the Secretariat. Our thanks to him forbeing able to assist FIATA in this transitionto a vibrant future.

In moving issues forward, the Presidencymet in mid-January and over two days ofintensive work and a very full agenda ad-dressed many key issues. The Presidencyis conscious of the financial health ofFIATA, membership deliverables, tran-sitional work on professional develop-ment and training, external relationswith identified parties and the impacts ofdeveloping supply chain data protection.On these aspects the Presidency spentconsiderable time in developing strategic

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6 FIATA REVIEW No. 131 | March 2020

A BILL OF LADING REMAINS A DOCUMENT OF TITLE FOR THE GOODS

Staying in control of therelease of cargo by carriers

Recent case law from the NSWCourt of Appeal in Australia acts as

a reminder to freight forwarders to con-sider carefully the question of whetherto issue a house bill of lading’ for a con-signment. When doing so, there areclear steps to take to protect the rightsof all stakeholders and avoid unforeseenexposure.

THE FACTSA freight forwarder contracted with ashipper for the business of exporting ani-mal skins and hides. Separately, the ship-

per entered into a loan agreement withAustralia Capital Financial ManagementPty Ltd (ACFM), whereby the ship-per would provide ACFM with originalbills of lading as collateral security in ex-change for drawdowns on the loan. It wasintended that ACFM would return theoriginal bills of lading after the shipperhad repaid the drawdowns.

In the course of applying for a draw-down, the shipper provided ACFM witheleven house bills of lading, issued by theforwarder. When the shipper failed tomake the repayments, ACFM attempted

A recent case in Australia

showed that a freight for-

warder can easily be held

responsible for the full re-

covery of the drawdowns of

a cargo – also in case of

misleading and deceptive

conduct by a shipper.

AN AUSTRALIAN CASE

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No. 131 | March 2020 FIATA REVIEW 7

to take possession of the cargo, only todiscover that it had already been releasedto a third party by the ocean carrier.

ACFM was successful in its actionagainst the freight forwarder for thefull recovery of the drawdowns, on thegrounds of misleading and deceptiveconduct.

This recent NSW Court of Appealdecision upheld the previous judgment inan action[1] brought by ACFM againstthe predecessor company of the freightforwarder, which was found to have actedwith misleading and deceptive conductwhen issuing house bills of lading, whilstsimultaneously releasing ocean bills oflading, both of which purported to beoriginal negotiable documents.

WHAT WENT WRONG?In this case, the ocean carrier issued a setof ocean bills of lading that were “origi-nal” and “negotiable” and named theconsignee as “to Order” (Ocean Bills).

• the House Bills did not in fact give thelawful holder a right to delivery of thegoods.

Consequently, the freight forward-er was held to be liable for the loss suf-fered by ACFM.

THE LESSON TO BE LEARNTWhilst the issuing of House Bills

of Lading as a business practice shouldnot be discarded, freight forwardersshould never issue a House Bill of Lad-ing when they do not have control overthe release of the cargo at the destina-tion; especially when the Ocean Bill ofLading issued by the ocean carrier isnegotiable.

A defining feature of a Bill of Lad-ing is that it constitutes a document oftitle for the related goods. Thus it mustbe capable of obtaining delivery of thecargo it relates to when it is presentedto the issuer or its authorised agent.

Furthermore, freight forwardersmust not sign House Bills of Lading“as agents of the ocean carrier” unlessthe ocean carrier has expressly grantedauthority to do so. Such representa-tion implies the lawful holder of theHouse Bill of Lading has accrued rem-edies against the ocean carrier. If theocean carrier has not granted author-ity to the freight forwarder, the oceancarrier will have no liability, and thefreight forwarder will be liable for anylosses associated with reliance on therepresentation.

For shipments where a freight for-warder issues a House Bill of Lading, itis important to ensure the Ocean Billof Lading is non-negotiable and re-mains in possession of the freight for-warder (or their receiving agent), thusensuring the freight forwarder has con-trol over the release of the cargo by theocean carrier.

CRO Travel Pty Ltd v AustraliaCapital Financial Management Pty Ltd

[2018] NSWCA 153

[1] Australia Capital Financial Management Pty Ltd v Freight

Solutions (Vic) Pty Limited [2017] NSWDC 279

The forwarder issued a set of house billsof lading that were a close replica of theOcean Bills, also being “original” and“negotiable” and named the consignee as“to Order” (House Bills). The House Billswere signed by the forwarder “as agent forthe ocean carrier.”

Furthermore, the forwarder releasedboth the House Bills and the Ocean Billsto the shipper, but the latter providedACFM only with the House Bills. TheOcean Bills were apparently used by athird party to take delivery of the cargofrom the ocean carrier.

The court held the House Bills them-selves to be misleading and deceptive forthe following reasons:• the forwarder did not have the autho­

rity or consent from the ocean carrier tosign off as its agent;

• the forwarder allowed the issuance of twosets of bills of ladings (House Bills andOcean Bills), both purporting to be origi-nal documents with title to the goods;

Forwarders should ensure that they retain control over the release of the cargo.

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AN AUSTRALIAN CASE

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8 FIATA REVIEW No. 131 | March 2020

COUNTRY REPORT

LITHUANIA’S GEOGRAPHICAL POSITION IS KEY FOR OUR INDUSTRY

A hidden champion

Transport and logistics is the third-largest industry in Lithuania, em-

ploying around 106,000 workers, orabout 11.4% of the total workforce(2016). More than 7,500 companies op-erate in the sector, generating a turno-ver of approximately EUR 7.5 billion,with a main focus on export. 60% ofall turnover is generated by road trans-port, while the country operates almost50,000 trucks internationally. Expedi-tors in Lithuania are represented by theLithuanian National Association of For-warders and Logistics (Lineka).

To support smooth transit optionsLithuania has established 37 border cross-ing points at the European Union’s exter-nal borders of. 19 border-crossing pointsare with the republic of Belarus (four ofthem on international roads, eleven onlocal roads, three on the railways and oneon a river), whilst ten border-crossingpoints link the country to the RussianFederation (five on international roads,two on the railways and three on interna-tional rivers). The country also has fourinternational sea port and four interna-tional airport border-crossing points.

AT A GLOBAL CROSSROADSIt is fair to say that Lithuania’s geographicalposition is amongst the key reasons that haveled to our industry’s success – Lithuania iscentrally located between three sizeable mar-kets, namely Western Europe, the Nordiccountries and the Eastern markets of Rus-sia and the Commonwealth of IndependentStates (CIS). Being in the very midst of tradetransit, the country is recognised by the Eu-

ropean Commission as a priority transportlink between Europe and Asia. This is whytransport infrastructure development is ofnational strategic importance and is con-tinuously supported by multi-million in-vestments by the state and EU funds. Thoseworth mentioning include Lithuania’s com-mitment to invest EUR 145 million in theVia Baltica international highway system,and EUR 100 million in four public logisticscentres.

BY ROAD AND SEAThis public policy perfectly matchesprivate-sector initiatives focused on mak-ing Lithuania a key European distribu-tion centre and on developing advancedservice infrastructure. For this purpose,seven free economic zones, with a healthyraft of financial incentives, and four pub-lic logistic centres in major cities havebeen established.

At the end of 2015, there was469,100 m2 of new warehousing spacein Lithuania. Total warehousing space inthe country stands at more than 1 mil-lion m2. Though rather small, Lithuaniahas a 21,000 km road system, which isknown to be the best in the region. Thatis quite an achievement, keeping in mindthat Lithuania was still shown as theland with no E roads on the E networkroad map of Europe in 1988, followinga European Agreement on Main Interna-tional Traffic Arteries (AGR) in Geneva.

Today, six main European motor-ways cross the country, namely the E67(Via Baltica), E28, E77, E85, E262 andE272, connecting Eurasia from Helsinki

to Prague, from Berlin to Minsk, fromPskov to Budapest, from Klaipėda toAlexandroupoli, from Kaunas to Ostrovand – locally – from Klaipėda to Vilnius.About 75 million t of freight are trans-ported annually on these roads. Devel-oped road networks and road qualitymake the country a good place for inter-national carriers to start delivering cargoto almost every city in Europe in a merethree days.

Another advantage of Lithuania’s trans-port infrastructure is Klaipėda’s state seaport, which is the northernmost ice-freeport on the Eastern coast of the Baltic Seaand a bridge joining the CIS, Asia, EU andother markets. The multipurpose, universal,deepwater port is capable of handling morethan 65 million t of cargo annually and hasample storage facilities in place. Moreover,very short distances connect the gatewaywith the most important industrial regionsof the Eastern hinterlands, and main ship-ping lines link to European ports. The hubcan welcome calls from 400 m vessels up to59 m wide and with a maximum draughtof 13.8 m. 14 large stevedoring companiescurrently operate there.

JUST TEN DAYS TO CHINALithuania is well-connected through anetwork of highways and railways, in-

Most find it surprising that Lithuania – the 24th European coun-

try by area and only the 35th by population – has recently man-

aged to become an undisputable transport and logistics industry

leader in the EU. The transport and logistics sector there holds

the largest share of GDP in the EU, with 12.3%. Its importance to

the country’s economic development is significant.

Multifaceted logistics facilities.

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No. 131 | March 2020 FIATA REVIEW 9

COUNTRY REPORT

cluding a North–South highway, its rail-ways connecting Scandinavia with Cen-tral Europe, as well as an East–West routelinking eastern markets with the rest ofEurope. According to the EU Commis-sion, these are among the ten most im-portant routes in Europe.

The Lithuanian railways transportapproximately 48 million t of cargoevery year, using modern infrastructureand a fully-modernised locomotivefleet. The country is a convenient hub,linking Europe with Russia, China andother Asian countries. There are twomajor types of railway track in its terri-tory –European standard narrow-gaugelines and the broad gauge of the Rus-sian standard, allowing the country tooffer transport intermediation services.Lithuania also offers services of the Vi-king shuttle train, which connects theBlack Sea and the Baltic Sea in just55 hours.

The container train ‘Sun Train’ con-nects Europe and China. It is unique inthat cargo that typically takes 40 days toreach Europe by sea from China arrives injust ten days. This was recently achievedas a result of various cross-border agree-ments that enable the train to passthrough Russia and Belarus, then onwardto Scandinavian and other Europeancountries via Klaipėda’s state sea port.

BETTER INFRASTRUCTURELithuania is continuously working toimprove its transport infrastructure.Amongst the priority projects there are theRail Baltica – Trans-European Transport

Meanwhile, electric trucks are stilla vision of the future. Even though theinfrastructure of electric charging sta-tions is well advanced in Lithuania andcontinues to be developed at high speed,at present there are no electric vansand trucks that have been registered inLithuania.

REGULATORY ENVIRONMENTAND TECHNOLOGIES READYInnovative and complex logistics solu-tions, paired with high-quality standards,as well as business experience in WesternEurope and especially in countries in theCIS, are all important for Lithuania’s re-gional leadership in transport and logis-tics infrastructure.

For instance, the country has ad-vanced regulation in place for the use ofautonomous cars, which makes Lithu-ania an attractive location for the testingof future transport technologies in pub-lic traffic. The forward-thinking Lithu-anian government encourages the testingof these innovative vehicles on the roadsof Lithuania by approaching leadingmanufacturers.

The technological environment isextremely favourable for this purpose aswell. Lithuania enjoys one of the fastestinternet upload speeds in the world, hav-ing the greatest fibre-optic broadbandcapacity in Europe.

Furthermore, experimental 5G cross-border corridors through the country’sterritory are under development, whichwill definitely accelerate the process ofself-driving vehicle testing.

Network project, designed to link Finland,the Baltic states and Poland, and simulta-neously improve connections betweenCentral and Northern Europe; the outerport undertaking in Klaipėda, which willbring new potential for the transport in-dustry, as Baltmax ships will be able toenter the port once it is completed. Thenewly-planned outer port will cover ap-proximately 130 ha, with its dredged areaoffering a depth of 17 m.

Rail Baltica construction work willbe started as early as next year and theproject will be fully completed by 2030.These projects will ensure additional ca-pacities to carry goods and will increasethe attractiveness of the Lithuanian trans-port sector in the Asia–Europe corridorfor goods transport.

ENVIRONMENT-FRIENDLY FUELSUPPLY STATIONSNew ecology and efficiency-focused trucktransport technologies require the deve-lopment of related infrastructure for en-vironment-friendly fuel supply stations.Lithuania has moved a significant stepforward by developing infrastructure ofcompressed (CNG) and liquefied (LNG)natural gas – the first CNG station therewas built as long ago as 2007. Today thereare nine such stations, with four of themoffering public filling access, namely inKlaipėda, Siauliai, Panevezys and Vil-nius. The others are under construction.A LNG terminal opened at the end of2014 guarantees sustainability of the fuelsupply system and competitive prices fortransport companies.

LITHUANIA – FACTS&FIGURES

Official name Republic of Lithuania

Capital Vilnius

Form of government Independent democratic parliamentary republic

Area 65,300 sqkm (with a 262 km coastline)

Population 2.9 million

Official language Lithuanian

Currency Euro

Major export markets Germany, Russia, France, Denmark, Belarus, Netherlands

Major trading partners Russia, Latvia, Poland, Germany

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10 FIATA REVIEW No. 131 | March 2020

CUSTOMS AFFAIRS INSTITUTE

CUSTOMS AFFAIRS INSTITUTE (CAI)

FIATA’s share in the activitiesand initiatives of the WCO

As an advocate of trade facilitation,FIATA has been actively involved

in the work of the World Customs Or-ganization (WCO) for over thirty years.Collaboration with intergovernmentalbodies such as the WCO is vital forFIATA in representing the interest ofits members as to the interoperabilityof Customs standards with the inter-national trade and transport commu-nity and in seeking synergies betweentrade and government.

Official observer status at the WCOallows FIATA to contribute to discussionson matters and to participate in a widevariety of WCO working bodies. In2010, FIATA and the WCO signed a re-

newed Memorandum of Understanding(MoU) to strengthen their mutual coop-eration. FIATA, through its Customs Af-fairs Institute (CAI), has also continuedits membership of the WCO Private Sec-tor Consultative Group (PSCG), a high-level advisory group to the WCO thatprovides positive input to the WCO onCustoms and international trade mattersfrom a business perspective. Participa-tion at the PSCG has enabled FIATA toactively participate in the facilitation ofinternational trade.

This article provides an overview ofseveral key WCO initiatives, relevant forservice providers in international tradelogistics and supply chain management.

COMPREHENSIVE REVIEWOF THE REVISEDKYOTO CONVENTIONThe WCO Revised Kyoto Convention(RKC) is the main international Cus-toms instrument for trade facilitation.The RKC aims to facilitate the cross-border trade of goods by harmonisingand simplifying Customs proceduresand processes. The RKC establishes thefoundations for uniformity, consistency,predictability and transparency in trans-actions with Customs administrationsacross the globe.

In June 2018 the WCO’s membersagreed to establish a dedicated workingbody to carry out a comprehensive reviewof the RKC; FIATA participated in thatreview work.

FIATA highlighted the need for Cus-toms and freight forwarders to recogniseeach other’s roles in joint cooperation aswell as other crucial aspects, such as digi-talisation and single windows.

FIATA will continue to participate inthe review of the RKC and contribute toits trade facilitatory objectives.

FRAMEWORK OF STANDARDSON CROSS-BORDERE-COMMERCEE-commerce now forms a significant partof international trade and has created sig-nificant challenges to Customs admini-stration as to fiscal leakage, communityprotection, safety and security, importprohibitions and restrictions, as wellas the facilitation for all forms of cargo(imports and exports), not only that ofe-commerce.

The WCO is working extensivelyon finalising its E-Commerce Package,which contains the Framework of Stand-

Customs clearance remains a vital part of the freight forwarder’s

environment. The CAI is the spearhead of FIATA’s engagement

with the WCO. Besides the revision of the Kyoto Convention and

modelling the framework of the standards on the cross-border

e-commerce, the AEO programme is in the focus of interest.

CAI delegates, pictured at the CAI meeting in Cape Town, already looking forward toparticipating in the 5th WCO Global AEO Conference.

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No. 131 | March 2020 FIATA REVIEW 11

CUSTOMS AFFAIRS INSTITUTE

ards on Cross-Border E-Commerce,which includes 15 global standards.The package aims to contribute to thestandardisation and harmonisation ofborder regulatory processes for the moreefficient management of cross-bordere-commerce. It includes elements suchas technical specifications, data require-ments, implementation strategy and anaction plan.

FIATA has participated in the exten-sive discussions of cross-border e-com-merce and has contributed to definingthe roles and responsibilities of freightforwarders in the e-commerce supplychain. FIATA will continue to providethe views of the industry in future processchange as well as to the development of amaintenance mechanism.

WCO PRIVATE SECTORCONSULTATIVE GROUPThe PSCG was created as an advisorybody in the first instance, to explorethe evolution of the Authorised Eco-nomic Operator programme (AEO),possible roles for the WCO and the chal-lenges ahead for the implementation ofthe SAFE Framework of Standards, towhich AEO is instrumental. It also dealtwith a variety of international trade andCustoms matters, and FIATA has takenpart in all its deliberations since 2008,through CAI. The PSCG objective is tocreate a framework to understand the fu-

5TH WCO GLOBALAEO CONFERENCEFIATA will participate in the 5th WCOGlobal AEO Conference in Dubai inMarch 2020. Under the theme ‘AEO 2.0:Advancing towards New Horizons forSustainable and Secure Trade’, the con-ference will provide a forum for variousCustoms administrations and stakehold-ers to meet and discuss their overall com-mitment to reshaping the future of theAEO programme.

Mr. Steve Parker, CAI Chairman,will take the opportunity to put forwardFIATA and the views of the freight for-warding industry. He will report on theoutcomes of the event at the forthcom-ing FIATA Headquarters’ Session. FIATAhas consistently participated in a vari-ety of WCO meetings of several identi-fied WCO bodies. It reports regularly toFIATA Members at CAI Meetings andvia the FIATA Document Delivery Sys-tem (FDDS) on various developmentsand on issues relating to security, safetyrisks, cross-border trade and e-commerce.Members benefit from this informa-tion for advocacy toward their NationalRegulators.

FIATA Members and CAI Delegatesare encouraged to share their experienceson Customs-related issues such as AEO,the SAFE Framework of Standards,e-commerce and the implementation ofthe Revised Kyoto Convention.

ture of international trade processes andborder-clearance processes for the future,which will help in forming the policy de-cisions of the WCO.

The PSCG is linked to the ongoing2021 review cycle of the SAFE Frame-work and, in particular, the very impor-tant work being conducted within theWCO to strengthen and enhance AEOprogrammes, in order to ensure largelyharmonised implementation and less di-vergent practices.

FIATA has been involved in the work of the World Customs Organization for more than 30 years now.

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The World Customs Organization (WCO),

established in 1952, is an independent inter-

governmental body representing the global

Customs community. Its mission is to im-

prove the effectiveness and efficiency of the

Customs administrations of its 183 mem-

bers. The WCO develops international stand-

ards and promotes cooperation in the field of

the safety and security of the cross-border

flow of goods, trade facilitation, revenue col-

lection and protecting society.

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12 FIATA REVIEW No. 131 | March 2020

PERSONALLY

VICE PRESIDENT GALO MOLINA AGUILAR

“Supporting FIATA with aLatin American point of view”

If you had not joined the trans-portation business, which profes-sion would you most like to havechosen (and why)?As an economist, I was always interested ininternational commerce, especially the de-velopment of countries based on free trade.If I could have chosen another profession,I would have wanted it to be in banking,since you have a perspective there on theprogress of different businesses.

So what fascinates you about thefreight forwarding industry?Each day is different, the essential capa-city to adapt to constant change enablesyou to learn about countries, products,cultures and how the logistics businessconnects the world.

And what was your motivation toaccept your post with FIATA?After becoming the President of ASEACI,and later of ALACAT, the FIATA Con-

gress in India captured all of my atten-tion, widening my knowledge of FIATAas well as the idea of supporting thisnoble institution with a Latin Americanpoint of view.

How do you view the state of theindustry today?Everything changes and this industry isno exception. The best way to be success-ful is to adapt to these changes, and tomake good decisions – many of which aremade by emotion or instinct.

What are some of the changesthat you’d like to see?I’d like to have a committee where allfreight forwarders and shipping compa-nies have a space to talk about importantissues, since shipping companies are be-coming our most aggressive competitors.

Looking at the future, what ad-vice would you give a young per-son joining the industry today?To have integrity, courage, ethics and per-severance to achieve your goals. Specially,to understand that the combination ofthese is beneficial.

Generally speaking, what, in youropinion, has been mankind’s bestinvention (and why)?Aircraft, technology, such as computers,the internet or cell phones, because whenI started working for airlines, traders, andaircraft industries, such as Mitsui&Co.,all we used was telex and faxes, and thatmade everything slower. Right now, busi-ness is immediate. What used to takeweeks, today is done in a single day.

Which famous person would youlike to have met (and why)?I would like to have met my grandfather, arecognised Ecuadorian war hero. Unfortu-nately, he died fighting in a war my coun-

I was born in Quito, Ecuador, on 6th October 1966, and studied economics at Universidad Laica

Vicente Rocafuerte de Guayaquil, in Ecuador. I graduated with a master’s degree in Senior Manage-

ment in IDE. I am married and father of four children. Being active as an employee for many years,

I became an entrepreneur and now own a group of companies dedicated to global logistics, inclu-

ding freight forwarding, trucking, warehouse storage, customs clearance services and trade. I have

also been a member and part of the administration of important associations in logistics, such as

ASEACI, IATA, FIATA and ALACAT.

On board – Galo Nicolas Molina Aguilar.

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“Freight forwardingis the capacity toadapt to constantchange.”

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No. 131 | March 2020 FIATA REVIEW 13

PERSONALLY

try fought with Peru in 1941. Also, myfather was an air force pilot who diedin a crash that left only twelve survi-vors. This legacy is what has influencedmy character right until today.

Do you have any unfulfilledwishes (be they professionalor personal)?One of my great unfulfilled wishesis to create a foundation to helpschools and high schools that honourmy grandfather through his name –Major Galo Molina.

What plans do you have for thefuture or for your retirement?I’ve never thought of retiring. FromJapanese people in Mitsui I learnedthat “in Japan, companies take careof you; in Europe, governments takecare of you; but in America, you haveto take care of yourself.”

A BRIEF OVERVIEW OFGALO MOLINA AGUILAR’SPROFESSIONAL CAREER

Vice President

FIATA – International Federation ofFreight Forwarders AssociationsOctober 2019 – to this day

Vice President /Past President 2015–2019

ALACATMay 2015 – to this day

Director / Past President 2004–2007

ASEACI2018 – to this day

President

Planet Cargo Group1998 – to this day

Vice President

FIATA SECRETARIAT’S NEW RECRUITS

New faces on boardThe new Secretariat has recruited international trade law, pro-

fessional development and training and information technology

staff. Also Ms Simantirakis and Ms Villa form part of the remod-

elled team that is currently preparing the Headquarters’ Session,

scheduled for late March this year in Zurich.

Welcome Ms Villa

Welcome Ms Simantirakis

Vanessa Villa, who grew up in Switz-erland and lives in Zurich, started

working for FIATA in November 2019.Despite her young age she has alreadygathered a good mix of experiencesfrom various jobs – in the social and jus-tice sectors as well as in the constructionindustry. In her new position she will beable to use her fine command of English,which she acquired in a language ex-change in Cape Town, South Africa.Vanessa is fluent in English and Ger-man and understands French. Her pas-sions are books and travelling, so whenshe heard that she missed 2019’s WorldCongress in Cape Town she was a bit sad.

Emmanuela Simantirakis first joinedFIATA in mid-January this year.

She grew up in Switzerland but has aGreek background. Emmanuela hashad the chance to gather experience inthe human resources sector, as well asin the fitness industry. She also spentthree years in Australia, where she stud-ied fitness and sports management.

Emmanuela is fluent in English,German and Greek and has a basicunderstanding of French. She enjoystravelling and learning about other cul-tures, and is also passionate about fit-ness as well as music. She thoroughlyenjoys being able to work in the inter-

She’s now looking forward to meetingFIATA’s members at the Headquarters’Session in Zurich in March 2020.

national environment that FIATA offersand is looking forward to meeting youat the Headquarters’ Session in Zurich,Switzerland, in March 2020.

Meet Ms Villa at the HQ in Zurich.

Meet Ms Simantirakis at HQ in Zurich.

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RUBRIK

14 FIATA REVIEW No. 131 | March 2020

Happy Birthday!FIATA congratulates six well-known delegates on their birthdays.We wish them many more years of good health and happiness.

Mr. Han Van Os (Nether-lands) celebrated his 75thbirthday on 3rd January2020. He has been a FIATADelegate since 1986, was aVice President from 1999–2005, andhasbeenanHono-rary Member of FIATAsince 2007.

Mr. Tullio Albarelli (Italy)celebrated his 90th birth-day on 19th January 2020.He has been a FIATA Dele-gate since 1981, was the Sec-retary General from 1989–1993, andhasbeenanHono-rary Board Member ofFIATA since 1993.

Mr. Richard D. Gluck (USA)is set to celebrate his 70thbirthday on 13th March 2020.He has been a FIATA Delegatesince 1999, was Chairman ofthe Advisory Body Legal Mat-ters from 2009–2019 and be-came a Vice President in 2019.

Mr. Sarosh J. Nagarvala (In-dia) celebrated his 80th birth-day on 13th January 2020.He has been a FIATA Delegatesince 1987, was a Vice Presi-dent from 1989 –1990 andagain in 1994, and Treasurerfrom 1994 –2005. He wasSenior Vice President from2009–2011, and has been anHonorary Board Member ofFIATA since 2007.

Mr. Heiner Rogge (Ger-many) is set to celebrate his70th birthday on 25th March2020. He has been a FIATADelegate since 2000 and wasChairman KG UIC/FIATAand of the Working GroupRail from 2004–2007. He wasVice President from 2007–2009, and was Secretary Gene-ral from 2009–2015, and hasbeen a Honorary Board Mem-ber of FIATA since 2015.

Mr. Ahmed Moustafa Ha-med Khaleel (Egypt) is setto celebrate his 55th birth-day on 25th March 2020.He has been a FIATA Dele-gate since 2012, and becamea Vice President in 2017.

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HERE & THERE / AGENDA

26th – 28th March 2020Zurich, Switzerland

FIATA Headquarters’ Session

19th – 24th October 2020Busan / Republic of Korea

FIATA World Congress

Forthcoming EventsBi-monthly magazine of FIATA, the InternationalFederation of Freight Forwarders Associations

Circulation 7,000 copies

Published by FIATA, the International Federationof Freight Forwarders Associations

Articles written by outside contributors do notnecessarily reflect the views or policies of FIATA.Intellectual property rights for contributedmaterial must be met by the contributors.

EditorFIATA, the International Federationof Freight Forwarders AssociationsSchaffhauserstrasse 104CH–8152 Glattbrugg / SwitzerlandTelephone +41 43 211 65 [email protected]

Advertising salesFIATA Secretariat, telephone +41 43 211 65 [email protected]

ProductionDesign and printingSwiss Professional Media AG, Basel

CopyrightNo article may be reproduced by any means in wholeor in part without the written permission of FIATA.

NEXT EDITION

MAY 2020

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