1. Copyright © Supply Chain Compliance Ltd 2015 Current Proliferation and Illicit Strategic Trade Challenges for Supply Chains Real-World Implications for Taiwan Traders and Trade Facilitators Martin Palmer Supply Chain Compliance Ltd

2. Copyright © Supply Chain Compliance Ltd 2015 Global Supply Chain The Great Idea Material Sourcing Manufacture Distribution Wholesale Overseas Retail / End Use Disposal Recycling Banking Insurance Currencies Invoicing Electronic Transfer 3D Printing Video Conference E-mails

3. Copyright © Supply Chain Compliance Ltd 2015 Global Supply Chain - Transport Supply Chain Map : Dr Andrew Grainger

4. Copyright © Supply Chain Compliance Ltd 2015 Export Violations Examples in Transportation 2009 - DHL Express (USA) agreed to pay $9.44mln for violating US Export regulations (Syria, Sudan and Iran) 2012 - Netherlands Freight Forwarding Co – Ulrich Davis jailed for 6 months 2012 - Fedex had six violations of the Export Administration Regulations (EAR) relating to FedEx’s provision of freight forwarding services to exporters. Fine $370k 2013 - Brooklands International Freight Services – Christopher Tappin jailed for 33 months for one count of aiding and abetting the illegal export of defence articles

5. Copyright © Supply Chain Compliance Ltd 2015 Export Violations Examples in Transportation 2014 - ARAMEX Single violation for a unlicensed shipment to Syria. Fine $ 125K 2014 - Kintetsu World Express (U.S.A.), Inc. KWE, facilitated the export of three spiral duct production machines and related accessories, and valued at $250,000, from the United States to China National Precision Machinery Import/Export Corporation. Fine $ 30000 2015 - General Logistics International– On four occasions GLI facilitated the unauthorized export of scrap metal to The Peoples Steel Mill, Pakistan. Fine $ 90000

6. Copyright © Supply Chain Compliance Ltd 2015 Transport Companies o Asian Aviation Logistics Co., Ltd., Bangkok 10250 Thailand o NBC Navegan Bar International Transport Co. Ltd, Tehran, Iran o Tex-Co Logistics Ltd, Kowloon, Hong Kong o ACTeam Logistics Ltd, Hong Kong o Sky Wings Airlines SA, Athens, Greece o Russ Cargo Service GMBH, Kelsterbach, Germany o Albrecht Import-Export, a.k.a., o Elena Albrecht Import-Export, Heubach, Germany o Russian Cargo Oy, Lappeenranta, Finland o Eliron Logistics Oy, Vantaa, Finland

7. Copyright © Supply Chain Compliance Ltd 2015 Service Industry Considerations Not the manufacturer Often thousands even millions of customers Tens of millions of commodities Rely on information supplied by the shipper Shipper is often NOT the manufacturer NOT an expert with regard to the technical nature of the commodity Working with multiple jurisdictions and regulatory bodies

8. Copyright © Supply Chain Compliance Ltd 2015 Service Industry Considerations Restricted Parties Transit / Transshipment Extraterritorial Licencing End Use Dual Use Shareholders End User Nationalities

9. Copyright © Supply Chain Compliance Ltd 2015 Discussion Topics Is trade security a burden or does it lead to more efficient and profitable supply chains? What part do Secured Supply Chain Programmes play? (AEO,C-TPAT) Can trade compliance create a competitive advantage?

10. Copyright © Supply Chain Compliance Ltd 2015 Thank you for your attention Martin Palmer Supply Chain Compliance Ltd Email: martin.palmer@supplychaincompliance.netmartin.palmer@supplychaincompliance.net Web: www.supplychaincompliance.net