ASAPRA Private Sector Panel Friday September 6th 10h30 11h 30 Jean-Marie Salva ICC customs committee vice chair Fernando CARMO World customs broker organization President

 Presentation of ICC : business organization dedicated to free trade since its creation in 1929  Changes in the 2000’s : promotion of partnerships between business and administrations, namely customs  ICC & PSCG private sector consulting group INTRODUCTION

 I- WCO and ICC Cooperation Agreement –ICC-WCO Agreement History –Related activities  II- Technical Cooperation –TCCV –HS Committee  III- ICC : a major source of proposals –ICC Customs Guideline (2012) –ICC Guidelines for Cross-Border Trader in Goods (April 21th,2013)  IV- Policy statements  Eg Transfer pricing customs valuation TABLE OF CONTENTS

I- WCO AND ICC AGREEMENT COOPERATION

 A. ICC – WCO Agreement : History  Early 60’s: unformal parnership  June 1996: signature of the 1 st official cooperation agreement  June 27 th 2011: signature of a revised cooperation agreement that improved channels of communication in Customs-business Partnership  ICC WCO agreement is an example of international cooperation among businesses and Customs and of a successful private – public partnership I. WCO AND ICC AGREEMENT COOPERATION (1/2)

 B. ICC WCO agreement related activities  leading role in the fight against counterfeiting and piracy : –WCO’s participation in the future creation of the ICC Customs/Anti-Corruption Code of Conduct, –protect intellectual property in Free Trade Zones –Organization of the Global Congress on Combating Counterfeiting and Piracy  Strong collaboration on facilitating the international trade by the simplification and harmonization of customs procedure : –cooperation on several projects : developing and promoting guidelines for international trade facilitation; liberalizing the issuance of preferential Certificates of Origin. –creation in 1961 of the ATA Carnet system I. WCO AND ICC COOPERATION AGREEMENT (2/2)

II- TECHNICAL COOPERATION

 A. Technical Customs Committee Valuation (TCCV)  ICC has been granted a status of accredited observer to the TCCV sessions  Contribution to the discussions on various technical questions, e.g. transportation costs in the context of a CIF transaction  Formal presentations on various topics as the licensing of IPR, the use of distributorship agreements and transfer pricing …  Willingness to participate in TCCV inter-session discussions within working groups, for instance the Club de la Réforme II- TECHNICAL COOPERATION (1/2)

 B. HS Committee (HSC)  Having been granted a same status of accredited observer I.C.C participate to HS Committee‘s session due to : –resolve classification disputes and questions between members; –promote widespread application of the HS ; –interpret the “HS” for securing an uniform interpretation and application of the nomenclature ; –give information concerning developments in technology and changes in international trade for updating the HS. II- TECHNICAL COOPERATION (2/2)

III- ICC : A MAJOR SOURCE OF PROPOSALS

 A. Customs Guidelines (2012)  1 st version published in 1997 and revised in 2012  within the framework of ICC MOU with WCO  comprehensive set of practices that ICC considers should characterize all modern customs administrations  reinforced by a set of explanatory notes, identifying its advantages to government, business and customs  Aim for a better security and other border controls  Improve trade facilitation  revised periodically to reflect new trading, transport and administrative activities and requirements  Encourage mutual confidence and co-operation between customs and commerce III. ICC : A MAJOR SOURCE OF PROPOSALS (1/2)

 B. Guidelines for Cross-Border Trader in Goods / draft (April 21th, 2013)  a harmonized understanding of what criteria should be used to define a trusted trader in the context of the Authorized Economic (AEO) programmes  59 standards offering as best practices of safe and secure conduct for cross-border traders in goods  Used by traders in the design and management of AEO programmes  Taken into consideration by governments when assessing the risk represented by operators, particularly in trusted trader programmes  Their objective is to provide a common understanding of what border authorities should expect of a diligent trader III. ICC : A MAJOR SOURCE OF PROPOSALS (2/2)

IV- POLICY STATEMENTS

 List of the most recent ICC customs policy statements :  Policy Statement on trade tensions between China and the European Union (June the 27 th 2013) ;  Policy Statement on Limitations of deductions of interest payments (February 2012) ;  Policy Statement on Transfer pricing and customs value (February 2012);  Policy Statement on Application of anti-avoidance rules in the field of taxation (January 2012). IV. POLICY STATEMENTS (1/2)

 Eg : Policy statement on transfer pricing and customs value  The ICC policy statement on TP and CV was initially prepared by the ICC working group on TP and CV  The policy statement was drafted by members of the working group after lengthy discussions and various rounds of consultations during two years  these proposals are designed : –to help simplify regulations for companies and administration (determining the appropriate related party of goods) ; –to clarify rules, especially the OECD Guidelines, for both parties so as to reduce financial impact related to divergent customs valuation  The statement is set to be presented to government and relevant international organizations IV. POLICY STATEMENTS (2/2)

 Agreement on Preshipment Inspection – The PSI Agreement (1996)  In 1996, the Agreement on PSI creates a three-tier mechanism for considering complaints on arbitrary or wrong decisions  It establishes an independent review entity (IE) to which both exporters and PSI entities can submit grievances  The IE is constituted jointly by WTO (World Trade Organization), the International Federation of Inspection Agencies (IFIA for PSI companies) and ICC.  ICC, as an IE’s member, is expected to appoint, with the agreement of the parties to the complaint, either a single trade expert or a three-member panel. In that case, one member is nominated by ICC.  In 2006, the PSI Agreement has been reviewed by the TCCV Committee in which ICC is an accredited observer. CONCLUSION