THE ROLE OF TRADE FACILITATION IN INTERNATIONAL SUPPLY CHAIN MANAGEMENT Ian Impey Director Facilitation, Global Express Association (GEA) UNECE WORKSHOP ON TRADE FACILITATION, MOSCOW, 22 NOVEMBER 2004

Slide 2 AGENDA nGEA Background nIndustry Statistics nTrade facilitation – common definition & international standards nExpress Industry Trade Facilitation Objectives nWCO revised Kyoto Convention & WTO Doha Devt. Agenda nRevised Russian Customs Code nServices: Express Delivery Services and Overflight regimes

Slide 3 GLOBAL EXPRESS ASSOCIATION (GEA) nInternational Trade Association of 4 Main Global Integrators: DHL, FedEx, TNT and UPS nClose Links to Regional Express Associations: ACCA/IC, CAPEC, CLADEC, EEA nMain Mission: nTo liberalize Trade & Services worldwide

Slide 4 FACTS AND FIGURES n>230 countries n>800,000 employees n>1,700 aircraft n>US$ 90 billion annual revenues n>US$ 80 billion in duties and taxes n>30 million shipments daily n>25% average annual growth ’95 – ‘01

Slide 5 TRADE FACILITATION nCommon definition: UNECE; WTO Doha Development Agenda nInternationally-agreed TF Standards nHarmonised application of those TF Standards nTF Benefits

Slide 6 nSeparation of physical control (release and admissibility) from fiscal control (duty and tax payments) nAdoption of realistic de-minimis provisions nMinimal, standardised data for release/clearance purposes nApplication of automated systems to allow for: - electronic transmission and processing of pre-arrival shipment information, to enable immediate or expedited release/clearance - elimination of all paper documents - use of risk management techniques for control purposes - special procedures for authorised persons - electronic funds transfers for duty/tax payments EXPRESS INDUSTRY TRADE FACILITATION OBJECTIVES

Slide 7 EXPRESS INDUSTRY TF OBJECTIVES (cont’d) Govt. Service hours adapted to commercial needs (24/7) Transparency in publication of Customs rules and procedures and in their uniform application throughout the territory Transparency in consultation with trade on planned new legislation and regulations Right of Appeal in Customs matters “Single Window” Systems

Slide 8 WCO REVISED KYOTO CONVENTION Revised Kyoto Convention provides for all the above procedures and processes, EXCEPT “Single Window” GEA Promotion since Convention created in 1999 Convention’s early entry into force essential to Customs facilitation worldwide WTO support under Doha Development Agenda most critical and welcome

Slide 9 REVISED RUSSIAN CUSTOMS CODE Significant improvement on previous code and in operations Based on revised Kyoto Convention Specific areas of concern: Bonded transit operations Different Customs processes for different transport modes

Slide 10 SERVICES: EXPRESS DELIVERY SERVICES & OVERFLIGHT REGIMES Clear legal separation between EDS and postal services: EDS should therefore not be subject to postal licensing Overflight regimes should be cost-based and transparent, based upon the fundamental GATT principle of free trade and the right of free transit

Slide 11 THANK YOU FOR YOUR ATTENTION Further enquiries: or GEA Website: