1. Facilitating SME participation in international trade
APEC Customs Business Dialogue
Ho Chi Minh, Vietnam. 22 August 2017

2. Contents About Us Trade in Global Value Chains Recommendations
Industry Consultations
Conclusion

3. Conference of Asia Pacific Express Carriers
Representing the Express Delivery Services industry in Asia Pacific since 1996
Works closely with governments/authorities to:
Create a conducive business and regulatory environment for express delivery services; and
Facilitate trade expansion and economic growth in the region

4. The Express Delivery Services Industry
Essential for international trade
30 million shipments daily
220 countries and territories
1,700 aircrafts
200,000 trucks and delivery vehicles

5. Our Business: High-Value, Time-Guaranteed Cargo
Source: Oxford Economics estimates

6. Express Delivery Services Supply Chain
Pick-up
Local Station
Gateway Export
Hub
Gateway Import
Delivery
Packages pass through a secure supply chain, and can be delivered the next day

7. SMEs and international trade
International trade is increasingly structured around global value chains (GVCs) - thanks to technology, lower transport costs, trade policy reforms…
GVCs open new opportunities for SMEs to internationalise – both in trade and services
Efficient logistics services and supportive business climate key for SME internationalisation
Global e-Commerce market may reach USD 1.4 trillion by 2015
Particular benefits for SMEs and has enhanced SME participation in international trade (reaching more markets)

8. Trade facilitation Facilitating trade has largest benefits for SMEs
Import openness determines export competitiveness
Inventory and administrative costs
Time to reach market critical for competitiveness
More to lose than to gain in restricting imports
E-Commerce shipments typically ship small consignments frequently
Consumers require fast and certain delivery times as well as easy return procedures
Efficient border procedures critical for e-Commerce
One extra day in transit equals price increase by 0.9%
SMEs more vulnerable to trade costs
Border procedures and administrative requirements, e.g. licensing, add to costs
Trade costs impact SME competitiveness
Lack of automation, including for paying import duties and taxes
Poor coordination between border agencies
High inspection rates, even on low-value shipments
Examples of burdensome border procedures

9. Recommendations: Facilitative Customs procedures
Simplification:
Importer and exporter registration
De minimis and low-value shipments
Risk management
Transparency and certainty
Harmonisation:
Reduces trade costs
Revised Kyoto Convention and WCO Immediate Release Guidelines
Automation:
Promotes good governance and efficiency
Allows for better risk profiling – important with growing trade

10. WTO Trade Facilitation Agreement: A Wish List
Publication of Information (Article 1.1)
Prior Publication and Consultation (Article 2)
Discipline on Fees and Charges (Article 6)
Pre-arrival Processing (Article 7.1)
Electronic Payment (Article 7.2)
Separation of Release from Duties (Article 7.3)
Risk Management (Article 7.4)
Post-clearance Audit (Article 7.5)
Expedited Shipments (Article 7.8)
Formalities and Documents (Article 10.1)
Acceptance of Copies (Article 10.2)
Common procedures and uniformity (Article 1.7)

11. Collaboration
Simplification and harmonisation of customs requirements key for SME trade
Coordination between government agencies key for efficient implementation
Prior consultation for new or amended rules and regulations is critical
Prior consultation ensures rules and regulations promote trade and support industry growth, not restrict
CAPEC works with Customs authorities and governments throughout Asia

12. Conclusion
Global Value Chains and e-Commerce present large opportunities for SME growth
An open FDI regime for services supports efficient logistics and SME participation in international trade
Risk management procedures and higher de minimis have benefits, particularly for SMEs
Open communication and industry consultation are critical to minimizing adverse impact on legitimate trade
CAPEC is committed to continued partnership with Customs administrations

13. Thank You Working Together = Everybody Wins Logistics Industry Customs
Simplified Procedures
Automated Systems
Businesses
More Competitive
Lower Costs
Customs
Control
Collection
Security
Working Together = Everybody Wins

14. CONTACT
Conference of Asia Pacific Express Carriers 24a Ann Siang Road Singapore Telephone : (65) 14 14