DHL ENERGY CONFERENCE 2016 - etouches · PDF file• The international trade and trade compliance landscape is rapidly changing, ... Freight Dubai and Qatar’s Single Window ... Why

DHL ENERGY CONFERENCE 2016 Global Customs & Trade Compliance: Challenges & Opportunities

Sandra Fischer, DHL Global Head of Customs

Marcelo Godoy Rigobello, DHL Global Head of Customs Business Development

2 DHL CUSTOMS SERVICES: Taking the complexity out of customs

Synopsis

Global Customs and Trade Compliance: Challenges & Opportunities

• The international trade and trade compliance landscape is rapidly changing, and

global supply chains are facing major challenges related to Customs Brokerage.

• Trade regulations and compliance are becoming a core focus among internationally

trading companies and a key differentiator in optimizing the global supply

chains.

• After a quick recap of key changes in trade regulation, we will focus in the

workshop on a case study of a multinational company that decided to streamline

their customs processes under a limited number of customs brokers globally, the

key challenges faced and the major benefits achieved.

• We seek to collect our customers’ inputs on how DHL can support their customs

change and improvement agenda.


Customs Trends across the Globe

Customs Trade Management Solution

Agenda

4 DHL CUSTOMS SERVICES: Taking the complexity out of customs 4 Presentation title | Location | xx month 20xx

DHL CUSTOMS SERVICES




Customs Trends - High Level Overview

A GLOBAL TREND TO WARDS

A RISK-BASED APPROACH

Requiring traders to share details of their

shipments at any given time, such as

pre-load, pre-departure and pre-arrival.

GLOBALIZATION AND

BUSINESS EXPANSION

Forging partnerships with service

providers that have expertise across

various geographies.

INCREASED AWARENESS OF

REGULATION & COMPLIANCE

Now becoming a board level issue and a

core focus among international trade

companies.

INCREASED DEMAND FOR

ELECTRONIC DATA SHARING

Such as advanced shipment notification

and sharing of compliance data.

The international trade and compliance landscape is rapidly changing, and global

supply chains are facing major challenges


Customs Trends in AMERICAS

• Large Free Trade Regimes internal (such as

NAFTA, MERCOSUR,CAN) and external (such as

TTP and TTIP) gain more and more importance

• US and CA taking their Electronic Solutions to the

next level

• Single Window Concept increasingly adopted by

LATAM countries

• AEO programs continue to evolve from previous

public/private programs around anti-smuggling and

customs compliance

• Customs processes in South America remain

complex, labor intensive and therefore more

expensive

AMERICAS


Customs Trends in ASIA PACIFIC

• Modernization in Customs in process with large

variations in the countries

• Increased focus on Technology & Automation in

Customs

• Strategic Trade Control regimes (Export Control

legislation) put in place

• Major focus on Compliance & Anti-Corruption

Programs

• Security Programs rolled out over Asia

• AEO accreditation towards safe and secured

environment for all businesses

• Free Trade Agreements gain more and more

importance, e.g.ASEAN

ASIA PACIFIC


Customs Trends in EUROPE

• Modernized and unified Customs Regulations in

the EU with large deviations in VAT Regimes in

the majority of countries

• Union Customs Code (UCC) introduced in May 2016

with full implementation latest by 2020 facilitating

trade whilst emphasizing security initiatives

• IT filing systems available and mandatory to use

• Vast number of Free Trade Agreements and

potential for boost in Trade between the US and EU

with the introduction of TTIP

• Focus on Security Programs such as AEO & mutual

recognition

• EU expanded to 28 Countries with the accession of

Croatia

• EU wide Risk Management System launched

EUROPE


Customs Trends in MIDDLE EAST

• Stronger progress in automation with programs like e-

Freight Dubai and Qatar’s Single Window leading

• Increased use of Free Trade Zones helping

companies improve their cash flows & support the

creation of distribution hubs

• Free Trade Agreements become more and more

important (e.g. Greater Arab Free Trade Agreement,

USA – Bahrain/Oman, Singapore – UAE)

• Security Programs need to be further established

• CARNET ATA Procedure for temporary imports not

deployed yet

• Customs Integration Targets of the GCC* still on its

way

MIDDLE EAST

*Cooperation Council for the Arab States of the Gulf


Customs Trends in AFRICA

• Large variations in Customs Processes ranging

from partly automated to completely manual

• Installation of the Automated Systems for Customs

Data (ASYCUDA) in many African countries

• Good improvement in the Reliability of Customs

Clearance & Revenue Collection

• Slower progress in developing the Capacity to fight

Corruption

• Important International Standards still not

approved

• Slow Implementation of Regional Trade

Agreements

AFRICA


Round Table:

What are the Customs trends that most impact your business?

What is your strategic approach to deal with those?




Agenda

13 DHL CUSTOMS SERVICES: Taking the complexity out of customs 13 Presentation title | Location | xx month 20xx 13 DHL CUSTOMS SERVICES: Taking the complexity out of customs




One Broker

Many Brokers

Compliance Level LOW HIGH

Key Requirements:

Senior Management Support

Internal Organizational Alignment

Central Procurement Process

Strong Partnership & Trust

Vis

ibil

ity &

Co

ntr

ol

LO

W

HIG

H

The customs optimization journey requires some key elements to be in sync in order to succeed

Customs Trade Management Solution:

The Customs Optimization Journey


From… To…

Multiple Brokers & Multiple Contacts One Single Broker & Point of Contact

Low Visibility & Transparency Centralized KPIs & Reporting

Inconsistent Classification & Errors Faster & Consistent Clearance

Various Pricing Negotiations & RFQs One Single Rate Negotiation

Instead of dealing with various different customs brokers, using one single broker for all your

shipments can drive higher compliance, efficiency & cost savings


The Customs Optimization Journey (Continued)


Overview: Global Customs Control Tower

Centralized communication

Customs milestones tracking

Pre-alert / pre-clearance process

Invoice review prior to booking

Import license management

Duties & Taxes Advancement

Post-shipment audits

Centralized billing

End-to-end visibility of shipments from

pre-booking stage to delivery

IT solution to capture customs events and

import license retention

Proactive knowledge of regulatory

changes occurring in-country

DHL

Control Tower Customer


Flexible Service Scope

DHL’s Customs Trade Management Solutions are developed based on our customer requirements


DHL CUSTOMS SERVICES: Case Study

• Difficulty managing 25+ brokers

• 40% of shipments delayed due to

customs clearance errors

• Low knowledge of customs

processes in USA

• Lack of on-line performance visibility

• Lack of dedicated support from

various brokers

• Multiple billing terms & conditions

(due to usage of multiple brokers)

CUSTOMER CHALLENGE


• DHL established a Customs Control

Tower – a team of customs experts

that implement and monitor client's

customs activities

• DHL as a single customer broker,

providing clearances for all shipments

(24/7 processing entries)

• DHL implemented an on-line track

and trace system that includes

document imagining (CIMS -

Customs Import Management

System)

• Centralized Billing

SOLUTION

• Single Point of Contact, with 24/7

support

• <1% of shipments delayed due to

customs clearance errors

• Online real time visibility to all

entries as well as document

imagining and reporting

• Pro-active monitoring & auditing of

all customs entries, ensuring a high

level of compliance

• Consistent billing terms & conditions,

better management of cash flow

CUSTOMER BENEFITS

Background: A leading worldwide provider of equipment & components used in oil & gas

drilling and production operations was facing difficulties in managing multiple brokers. The

customer was looking to centralize all customs activities under one single broker.

Customs Control Tower Solution for an American Oil & Energy Corporation


DHL CUSTOMS SERVICES: Case Study (Continued)

WHY DHL CUSTOMS SERVICES

Before… After…

Number of Brokers 25+

Brokers

One

Broker

% of Delays

(due to customs

clearance errors)

40%

of shipments

<1%

of shipments

Dedicated Support Not available 24/7

dedicated support

On-line Visibility Limited visibility

to on-line data

Access to on-line

track and trace

system

Document Imaging Not available Available through

online system

Customs Control Tower Solution for an American Oil & Energy Corporation

< image >


Round Table: Could a customs centralization approach help to drive

compliance in your business?


Contact

Sandra Fischer Global Head of Customs

DHL Global Forwarding Johanniterstraße 1 53113 Bonn/Germany

Phone +49 228 18221864 Mobile +49 175 4300830 [email protected]

Marcelo Godoy Rigobello Global Head of Customs Business Development

DHL Global Forwarding Johanniterstraße 1 53113 Bonn/Germany

Phone +49 228 182-21867 Mobile +49 172 9607-840 [email protected]

THANK YOU

22 DHL CUSTOMS SERVICES: Taking the complexity out of customs 22 Presentation title | Location | xx month 20xx


Appendices



Why you should choose DHL CUSTOMS SERVICES

Thanks to our local teams of experts and global scale, we take the complexity out of customs by

offering a one-stop solution to all your needs

BEST IN CLASS

GLOBAL SCALE,

LOCAL PRESENCE

ONE PARTNER WITH THE BROADEST

RANGE OF SERVICES

The extensive regulatory knowledge of our

team of customs experts means that you

partner with a market leader:

We have a global customs network to

facilitate the movement of goods no matter

where you trade:

Our broad range of services ensures

consistent and compliant trade activities; a

truly one-stop solution to streamline your

supply chain:

• Dedicated team of more than 4,800 customs experts around the world

• Global Governance Structure that guarantees global standards with codes of behaviour across the network, delivering consistency and uniformity

• Participation in all government customs and security programs such as C-TPAT and AEO

• Relationships with government authorities on global, regional and local levels such as WCO

• Presence in over 200 countries with more than 7 million customs entries processed each year

• Country, Regional and Global Customs Teams to ensure uniform and consistent service

• Part of the Deutsche Post DHL group guarantees sound financial backing and stability

• Broad range of customs brokerage services utilizing the latest customs clearance technologies and EDI capabilities

• Customs consulting services to optimize customs activities, minimize duties and taxes, and maximize compliance

• Core training and education solutions including on-site training, seminars, periodic information bulletins and white papers to develop the customs knowledge base

EXPERTISE LOCAL PARTNER


DHL Global Forwarding

Our Geographic Footprint: Customs Brokerage

DHL Customs Services via DHL Global Forwarding

DHL Customs Services via 3rd Party Broker

No Service

DHL Customs Services via DHL Express

The DHL CUSTOMS SERVICES network is truly global, including a comprehensive distribution of DHL

Customs teams and reliable 3rd Party Brokers - we are everywhere you (& your customers) need



Our Customs Brokerage Portfolio

We offer a broad range of services to ensure uniform, consistent & compliant trade activities, supporting

your company in avoiding delays, fines & penalties

Import and Export Declaration Filing

Customs declarations to process the import/export of goods. This can include the filing of customs declarations prior to shipment

arrival at the destination country (where allowed).

Security Filing

Advance notification to authorities in importing countries, consisting of critical information for security screening. Examples are

the US Importer Security Filing (ISF) and the EU Import Control System (ICS).

In-Transit Movement

Management of the customs formalities for goods moving through one customs territory into another, or transportation of

uncleared shipments within one customs territory.

Duties & Taxes Advancement

Facilitation of the payment of customs duties and taxes on behalf of the customer.

Other Government Agency Services

Service to ensure the clearance of goods through other government agencies, e.g. Ministry of Health, Department of Agriculture.

Additional Services

Foreign Trade Zone (FTZ), Bonded Warehouse, Duty Drawback Processing, Fiscal Representation, Excise Duty Handling, and

many other services.

Permits and Licensing Application Services

Providing support to obtain special licenses and permits.


Our customs consultants can review your supply chain to help enhance customs activities, optimize

duties, identify potential risk areas and optimize internal controls and procedures to maximize compliance


Our Customs & Trade Consulting Portfolio

Customs Management

Global Customs Management Program to coordinate the customs activities in various countries or support specialized services

(e.g. Customs Competence Teams for Customers to monitor all customs transactions in Europe or globally).

Regulatory Interpretation & Consultation

Tariff Classification Services; Tariff Engineering & Duty Optimization, Binding Rulings; Prior Disclosures and Penalty Avoidance;

Administrative Appeal Support and Representation; Appeals, Petitions & Protests; Import/Export Licenses and Quotas.

Duty & Tax Programs

Management of duties and taxes programs, e.g. Duty Drawback; Trade Agreement and Preferential Treatment Qualifications;

Duty Optimization Planning, Audits and Refunds; Tariff Concession Order Applications and Representation; Foreign Trade Zone

Compliance Assessment & Audits

Customs Compliance Assessments and Audits; Development of Internal Compliance Manuals; Documentation and

Recordkeeping Requirements.

Customs Training & Education

Supporting the knowledge base development by various training programs and information services e.g. On Site Training;

Seminars; Periodic Information Bulletins and White Papers.

On-Site Resources (Secondment)

We provide highly experienced on-site staff to support in different areas of the customs clearance process, e.g. filing of customs

declarations, goods classification, and other customs activities.


• Various customs brokers used in

50+ countries, with lack of overall

customs status & costs visibility

• Major customs delays due to lack

of Import Licenses validity

monitoring & lack of Health Permits

• Poor coordination between clinical

trial transport providers & Clinical

Research Organizations (CRO’s)

• High storage costs and/or cost of

lost trials due to delayed customs

clearance

• Costs related to the destruction of

goods not delivered due to delays

• Impacting the success of clinical

trial studies

CUSTOMER CHALLENGE


• Global Control Tower Solution:

- Centralized communication

- Customs milestones tracking

- Pre-alert / pre-clearance process

- Invoice review prior to booking

- Import license management

- Duties & Taxes Advancement

- Post-shipment audits

- Centralized Billing / Invoicing

• End-to-end visibility of shipments

from pre-booking stage to delivery

• IT solution to capture customs

events and import license retention

• Proactive knowledge of regulatory

changes occurring in-country

SOLUTION

• Single Point of Contact

• On time delivery of shipments

• Increased Costs Control &

Transparency due to Central Billing

• Increased Customs Compliance

due to quality checks and pre-

shipment alerts via the control tower

• Cost Savings due to:

- Personnel cost (€4M/y)

- Reduced fines & penalties due

to import licenses expiration date

- Storage cost due to delays

- Destruction of goods that are

not delivered to final consignee

- Insurance Cost for claims not

properly documented

CUSTOMER BENEFITS

Background: A major pharmaceutical was undergoing a global re-structuring to outsource in-

country Customs activities and looking for a partner to support over 50 countries. The company

was facing a multitude of Customs Brokerage challenges which were causing shipment delays

and impacting the success of clinical trial studies.

Global Customs Control Tower for a Pharmaceutical Company

DHL CUSTOMS SERVICES: Case Study


Global Customs Control Tower for a Pharmaceutical Company

WHY DHL CUSTOMS SERVICES

Before… After…

Customs

Brokers

+50 brokers,

multiple contacts

One single broker,

with global SOPs

Customs

Delays

(due to wrong/

missing docs)

30% of shipment

delayed

Less than 1% of

shipments delayed

Import License

Management

Poorly managed,

often expired

Centrally managed,

avoid delays & fines

Tracking

& Reporting

Not available

centrally

End-to-end tracking

& 24/7 online report

Central Billing /

Invoicing

Multiple invoices,

done locally

One weekly global

invoice (in USD)

Cost Savings

(personnel cost savings by outsourcing

customs activities to DHL Control

Tower)

50%

(€4M per year on

personnel costs

outsourced to DHL)

DHL CUSTOMS SERVICES: Case Study (Continued)


Control Tower Solution:

Your Benefits

By choosing the DHL’s Customs Brokerage & Control Tower Solution we will help you to streamline your

customs business

Ensure fast & reliable customs clearance

Manage customs activities across various countries

Harmonize customs processes

Increase internal compliance & limit risk of fines and penalties

Streamline communication via one single point of contact

Identify savings opportunities for duties & VAT

Integrate data via one single interface

Decision-relevant info available via reporting & KPI management

Provide central electronic archive for customs-relevant documents

Ensure a reliable basis for customs audits

Increase transparency on your true cost basis for your products

Control Tower Solution: Your Benefits


Control Tower Solution:

Our Track Record

We have an extensive track record with several similar Customs Control Tower solutions in place across

the globe successfully in operations

Our Customs Control Towers are tailor-made for each customer based

on the unique needs & challenges faced, offering a dedicated

combination of services which can best support our customers’ business

objectives.

• Global Control Tower for a Pharmaceutical Company

• Global Control Tower for a British Vacuum Cleaner Manufacturer

• Global Control Tower for a Manufacturer of Wind Turbines

• Latin American Control Tower for an Technology Manufacturer

• USA Control Tower for an American Retailer

• USA Control Tower for an Manufacturer of Laser Printers

• Canadian Control Tower for a Manufacturer of Heaters & Air

Conditioners

• Australian Control Tower for a Major Retail Importer

• Indian Control Tower for an Automotive Manufacturer

• and many others – please see Appendix for the detailed Cases

Control Tower Solution: Our Track Record


Documents

DHL ENERGY CONFERENCE 2016 - etouches · PDF file• The international trade and trade compliance landscape is rapidly changing, ... Freight Dubai and Qatar’s Single Window ... Why