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6th APEC E-Commerce Business Alliance Forum Carsten Hess, Vice President & Head of Corporate Public Policy AP & EEMEA JinJiang, China, 29 June 2016 THE.

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Presentation on theme: "6th APEC E-Commerce Business Alliance Forum Carsten Hess, Vice President & Head of Corporate Public Policy AP & EEMEA JinJiang, China, 29 June 2016 THE."— Presentation transcript:

1 6th APEC E-Commerce Business Alliance Forum Carsten Hess, Vice President & Head of Corporate Public Policy AP & EEMEA JinJiang, China, 29 June 2016 THE FUTURE OF SMEs ENGAGEMENT IN GLOBAL TRADE IN THE ERA OF CROSS- BORDER ECOMMERCE

2 2 No. 1 in contract logistics Leader in the forwarding business Europe’s largest postal service Partner for e-Commerce and a pioneer in secure digital communications No. 1 in international express delivery Who we are – a global company with a unique portfolio The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016

3 3 The Rise of e-Commerce The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016

4 4 Domestic vs. Cross-border B2C e-commerce sales in Europe from 2013 to 2018 CAGR The CAGR of domestic B2C eCommerce from 2013 to 2018 will be 7% The CAGR of cross border B2C eCommerce will jump up to 17% in 2016 Compared to domestic eCommerce, cross border eCommerce is growing more rapidly in mature market The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016 Source: Statista

5 5The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016

6 6 SMEs in APEC The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016 > 97% of all enterprises > 50% of workforce 20%-50% GDP 35% of direct exports > 90% of eBay commercial sellers export < 25% of traditional SMEs export

7 7 Pain Points Merchants A Pain Points Consumer B Cross border Logistics Service Provide C Long lead time and unstable performance Supporting logistics undeveloped Pain Points High Cost Lack of timely & accurate track and trace mechanism Last mile delivery Customs clearance Limited options for delivery Damages to product Logistics Solution A newly set up logistics network – between traditional express and postal service, can be a good balance of logistics costs and timelines More flexible ways of last mile delivery A variety of international trade terms apply to (incoterm), to resolve import Customs clearance more flexible Data integration with marketplace, to provide a visibility of order management, end to end logistics Global return solution Cross border logistics – customer experience The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016

8 8 Prioritize cross-sectoral e-Commerce policy coordination… …that touches the entire value chain of cross- border e-Commerce, including its supporting sectors Enhance the regulatory environment for businesses and consumers… Ease business regulations to create a level playing field for SMEs Encourage an open, safe, secure, and interoperable payments ecosystem Liberalize logistics: express delivery services, distribution services Facilitate the movement of goods across borders Simplify and improve border (customs) clearance procedures, e.g. single window, eCustoms, de-minimis Improve physical infrastructure and connectivity to facilitate last mile delivery Build a secure, trusted, and facilitating online environment Facilitate cross-border data flows Support growth-focused data protection Enable strong cyber-security defenses Recommendations: to the policy makers & regulators The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016

9 9 APEC Governments Enabling eCommerce – Recommended Actions Assess risks and opportunities together with shippers, carriers and border agencies Design smart and effective policies to secure and facilitate growth Raise awareness and facilitate compliance with revenue, safety and security obligations by coordination with export and import countries, online platforms and intermediaries Avoid new barriers, e.g. increased inspection rates and additional documentation Assess and learn from new duty / tax collection models (vendor collection model) Maintain commercially meaningful de minimis threshold for all customs and taxes Develop paper-less e-Customs, e-Taxation solutions to connect with all relevant stakeholders Allow fair competition among public and private delivery service providers Allow consumers where to shop Multilateral or plurilateral trade rules to promote and facilitate e-Commerce The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016

10 THANK YOU

11 11 BACKUP The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016

12 12 Bridging the Gap through Trade Facilitation Initiatives The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016

13 13 WTO Trade Facilitation Benefits Boost international trade and development Implementing one single trade facilitation measure (e.g. having the border agencies operate 24/7) could raise international trade for any country by 4.4% over time (Frontier Economics Study for GEA). Donor agencies can assist with the implementation of the agreement with both money and expertise. But the Agreement needs to be ‘in force’ - 2/3 of the WTO’s 161 members to ratify = 108 countries. National ratification process. The Government and Parliament/Congress of each country need to put it on the agenda as a priority. Some Priority TFA articles for the delivery industry 1.1Publication of Information 1.2Internet publication 1.3Enquiry points 2.1Comment before new measures 3Advance rulings 4Right of Appeal 6Disciplines on Fees and Charges 7 Release and Clearance of Goods (most especially section 7.8 on Expedited Shipments) 10.2Acceptance of copies 10.6Publication of Average Release Times 10.7Common Border Procedures / Uniform Document Req. The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016 Lower cost of international trade - Up to 17% according to the OECD

14 14 Common international Standards Harmonize different legal frameworks Capacity gaps among parties Close involvement of private sector Regional coordination mechanisms The Way Forward On Paperless Trade The Future of SMEs Engagement in Global Trade in the Era of Cross-border Ecommerce | Jinjiang | 29 June 2016 eliminate hard copies avoid additional signs/stamps on printed copies Permit electronic filing of supporting documents (scanned) recognize digital signatures/unique IDs limit additional archive and maintenance of hard copies of documents …but implementation has to seriously WTO FTA Quick ratification by 108 nations Swift implementation and enforcement Art 10.4 SW APEC PTS Pathfinder projects ASEAN SW ADB WCO standards UNNExt, UNESCAP, UN Bridging the gaps requires political will of all stakeholders and close involvement of the private sector…


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