LOOKING AT BROKERAGE IN NORTH AMERICA: WHAT’S AHEAD FOR CANADA’S CUSTOMS BROKERS? 41st NCBFAA Annual Conference Carol West, President Canadian Society of Customs Brokers

THE FUTURE OF CUSTOMS BROKERS IN CANADA: SOME THOUGHTS  Areas of impact: international trading developments; changes in information technology; consolidation and vertical integration in the industry; changes in the regulatory environment  Re-engineer relationships to achieve shared objectives with Customs which contribute to Canadian competitiveness and prosperity  Commitment to international cooperation and engagement - benefits through business and government networks  We are best equipped to ensure legislative compliance and revenue collection  The need for well trained and highly qualified personnel has never been greater

THE FUTURE OF CUSTOMS BROKERS IN CANADA: SOME THOUGHTS  Areas of impact: international trading developments; changes in information technology; consolidation and vertical integration in the industry; changes in the regulatory environment  Re-engineer relationships to achieve shared objectives which contribute to Canadian competitiveness and prosperity  Commitment to international cooperation and engagement - benefits through business and government networks  We are best equipped to ensure legislative compliance and revenue collection  The need for well trained and highly qualified personnel has never been greater 1992

A GLOBAL PERSPECTIVE ON THE FUTURE OF CUSTOMS : GOOD OR BAD FOR CUSTOMS BROKERS ?  Increased globalization and many new Free Trade Agreements  Standardization of procedures and requirements  Increased trade volumes that need to be handled with the same or even reduced resources of Customs administrations  New working and production methods of the private sector such as exchanging software across borders to produce goods nationally

A GLOBAL PERSPECTIVE ON THE FUTURE OF CUSTOMS : GOOD OR BAD FOR CUSTOMS BROKERS ?  Importance of more proactive engagement with the private sector  Implementation of the WTO Trade Facilitation Agreement (TFA)  Greater regional integration  Tremendous rise of cross-border e-commerce  The need for Customs to enhance the capacities and skills of its people  Single window, coordinated border management, integrated border management

THE FUTURE OF CUSTOMS BROKERS IN CANADA: SOME THINGS TO WORRY ABOUT  Greater control of accounts and client relationships outside Canada –  Greater business risk which directly translates to potential financial impacts  Economic growth has stalled: “stagnation”  Goodbye bricks and mortar and hello B2C  Need to ensure that revenue margins reflect proper compensation for the work performed

THE FUTURE OF CUSTOMS BROKERS IN CANADA: FOCUS ON OPPORTUNITY  Mantra for success: “I will be in the business my client wants me to be in”  Customs is becoming more relevant to government and compliance is becoming more important to Customs even though we still have inconsistent messaging and disconnects between legal and policy positions (and we worry about that)  Client-item classification databases are tangible assets and should be treated as such in service and pricing arrangements with clients

THE FUTURE OF CUSTOMS BROKERS IN CANADA: FOCUS ON OPPORTUNITY  We have a stable framework for customs broker regulation  We are leaders in the Customs-business relationship: vision, character and action  CSCB is a strong, stable and effective industry asset which knows the importance of staying relevant and is all about our members’ business interests  Customs needs customs brokers

THANK YOU CSCB.CA