february 22-24, 2015 the four seasons hotel miami, florida ... · guayaquil buenaventura sidney...

February 22-24, 2015 The Four Seasons Hotel | Miami, Florida, USA

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Keynote AddressJerry Cook, Vice President, Trade and Government Affairs, Hanesbrands; Chair, USCIB Customs and Trade Facilitation Committee Norm Schenk, Vice President, Customs Policy & Public Affairs, UPS; Chair, ICC Commission on Customs and Trade Facilitation R. Gil Kerlikowske, Commissioner, U.S. Customs and Border Protection

Breakfast generously sponsored by


Video from UPS: The Power of Customs Modernization


Panama Canal Expansion: A Game-Changer for Global and Regional Trade Moderator: John Danilovich, Secretary General, ICC Judy Lao, Head of Trade Facilitation Programs, Office of Western Hemisphere, Pathways to Prosperity Program, U.S. Department of Commerce; International Trade Administration Market Access and Compliance Rafael Farromeque, Senior Specialist, Head of the Logistics Practice for Latin America, Vice Presidency of Infrastructure, Development Bank of Latin America Gilbert Lee Sandler, Founding Member, Sandler, Travis & Rosenberg P.A. Leroy Sheffer, Partner, International Trade Advisory Services

ICC and USCIB Customs & Trade Facilitation SymposiumMiami, Florida, 24 february 2015

Speaker: Rafael A. Farromeque

Corporate SectorPublic PoliciesEnvironmentSocial DevelopmentInfrastructure

Panama canal expansionChallenges for Latin America

DEVELOPMENT BANK OF LATIN AMERICA

Strategic movements impacting Latin AmericanTrends and new perspectives

6

New flows of investment in manufacturing plants towards the US,Canada and Mexico, with related logistics services

Reshoring toNAFTA

Reconfiguration of maritime transport network. New logisticschallenges. Role of Panama as regional hub to be harmonizedwith main regional gateway ports

PanamaCanal

Expansion

Mexico, Colombia, Peru and Chile. The alliance aims at fulleconomic integration, and signifcant increment of trade andinvestment within Asia Pacific

Alliances in the PacificCoast

Mercosur consolidates as food exporter and consumption market.Brazilian ports will concentrate cargo flows. Montevideo mightbecome a transhipment and services center. Buenos Aires andRosario with new opportunities.

Brasil and Mercosur

ICC / USCIB SymposiumMIAMI 2015

Source: IDeAL 2013 (CAF, 2013)

Panama Canal Expansion WorksProgress up to january 2015 (Atlantic Site)

7ICC / USCIB SymposiumMIAMI 2015

Source: own pictures taken January 2015

Impacts of Panama Canal ExpansionChallenges to ports and routes reconfiguration


RotterdamAntwerp

Tánger Dubai

Génova

Barcelona

Valparaiso

Callao

Guayaquil

Buenaventura

Sidney

Melbourne

Singapur

Hong Kong

Shanghai

Busan Yokohama

Vancouver

ManzanilloCartagena

New York

Savannah

Miami

Santos

Norte Europa

Sureste Asiático

Australia / N. Zelanda

N. Am.Costa Oeste

N. Am.Costa Este

Mediterráneo y O. Medio

Sur Am.Costa Este

Sur Am.Costa Oeste

Centroam. y Caribe

Los Ángeles

Latam Ports must get ready to serve bigger ships. 8000 TEU fleet gradually transfered fromE‐W routes to ECSA and WCSA. Ports will need 16m depth.

Main users of Panama Canal: USA (65% of cargo), China, Chile, Japan, EU, S.Korea, Ecuador, Peru. Route EC of US and Gulf – East Asia (39% of cargo).

Transhipment will increase in Panama and TheCaribbean. Panama will double container portstraffic by 2020 (14 MTEU). Traffic grow: LNG fromTT to Chile &Asia. Coal from Colombia, Iron Ore from Brazil, Crude Oil from Venezuela to Asia.

Latam ports adapting to receive post‐panamax vessels: Chile, Colombia, Peru, Ecuador, Costa Rica, Mexico.

Context

The Way Forward: Strategic AgendaLatin America Transport Sector Priorities

9

Urban ExpansionGrowing Demand

Challenges

Priorities

Management capacity

Climate changeissuesPorts capacityUrban transport

financing

• Management capacity building in public/private sector

• Needs in logisticsand urban transport

• Mapping futuredemand

• Action plan to closethe gap

• Rio +20 Agenda toadvance in mitigation

• 8 Multilaterals havecommitted tofinance about USD 175 Bn in sustainabletransportationprojects

• Invest in capacityexpansion

• Increaseproductivity

• Intermodal connectivity

• Access to cities• Facilitation• Port Community

Systems

• Financeconstruction

• Systems required: MRT, URs, BRT.

• Subsidies foroperation

• PPP Schemes• Define role of

central and local governments

Source: CAF IDeAL 2013ICC / USCIB SymposiumMIAMI 2015

12 of 20 Top terminal operators present in LatamImprovements in capacity, quality and productivity


ManzanilloVeracruz

Kingston

Puerto Cabello

ParanaguaValparaíso

San Antonio

Iquique

Buenos Aires

Caucedo

San Vicente

Ensenada

La Habana

Freeport

BalboaColón

Suape

Cristóbal

Lázaro Cárdenas

Santos

Callao

Guayaquil

Buenaventura

Puerto Cortés

Itajai

Quality of ports (2013-2014)

Ecuador4,23-

Paraguay

EU5,05-

Perú3,71-

USA5,60-

ASEAN4,16-

Uruguay4,70-

3,72- África

2,46- Bolivia

LATAM4,06-

Panama6,38-

México4,36-

EastAsia&Pacific4,03-

Colombia3,47-3,41-

Source: Own elaboration based un public data (2014)

Investment in Ports Capacity ExpansionNew Projects / tender process expected (2015~2025)


Source: Own elaboration based un public data (2014)

BrasilPorts:• Santos ( USD 2.650 M)• Sepetiba (USD 900 M)Airports:• Regional Airports (USD 8.000 M)Peru

Ports:• Callao – 3rd Terminal ( USD 900 M)

UruguayPorts:• Rocha – deep water ( USD 1.000 M)

EcuadorPorts:• Posorja – deep water ( USD 1.125 M)Airports:• Guayaquil – new airport (USD 900 M)

MexicoPorts:• Manzanillo ( USD 900 M)• Lazaro Cárdenas (USD 740 M)Airports:• Mexico DF (USD 6.000 M)

ColombiaAirports:• Bogota new Airport (USD 1.400 M)

PanamaPorts:• Balboa - Corozal ( USD 1.700 M)• Colon – puerto verde (USD 7.900 M)

ChilePorts:• Valparaiso – big scale terminal ( USD 1.600 M)Airports:• Santiago – new terminal (USD 700 M)

HondurasAirports:• Palmerola (USD 400 M)

Costa RicaAirports:• San Jose – new airport (USD 400 M)

Investment needs for Latin America 2040Infrastructure: all Sectors 2011-2040

12Source: CAF LATIN AMERICA 2040 (2013)

0.00.51.01.52.02.53.03.54.04.55.0

2011

2014

2017

2020

2023

2026

2029

2032

2035

2038

Infrastructure investment (% GDP)

Total New Capacity Maintenance

0.00.51.01.52.02.53.03.54.04.55.0

2011

2014

2017

2020

2023

2026

2029

2032

2035

2038

Investment by sector (% GDP)

Ports Airports Rails Roads

Telecom Water Power


Average 2008-2012 = 3% of GDP


13Source: Latin America 2040 (CAF, 2013)

7326 900 1088 243 59 97 52

2192

490162

196 16 248 148

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Power Roads Ports Rail Airports Telecom Water

USD

Billion (con

stan

t 2010)

Investment needs by sector (2011‐2040)

MaintenanceNew Capacity

2.9%

0.42% 0.38% 0.13% 0.02% 0.11% 0.06%

Investment needs for Latin America 2040Infrastructure investment by sector 2011-2040

USD 13.217 Bn in totalUSD 9.765 Bn new capacity

USD 3.154 Bn in transport sector, USD 10 Bn investments in new Logistic Parks to support the transport network

% GDP by year

ArgentinaBarbadosBoliviaBrasilChileColombiaCosta RicaRepública DominicanaEcuadorJamaicaMéxicoPanamáParaguayPerúPortugalEspañaTrinidad y TobagoUruguay

Venezuela

CAF Partners

14



Speaker: Rafael A. [email protected]

ICC and USCIB Customs & Trade Facilitation SymposiumMiami, Florida, 24 february 2015

OFICINA PRINCIPAL

Edificio Tila, Piso 2 Ave. Samuel Lewis y Calle 56 Obarrio,

Ciudad de Panamá República de Panamá.

Teléfono:(507) 223‐1020 Fax:(507) 223‐8019

[email protected]

PANAMA CANAL EXPANSION: A GAME‐CHANGER FOR GLOBAL AND REGIONAL TRADE

Business Development Opportunities

ARANCEL CHINO TAIPE

Needs for additional capacity

• Additional containerterminal port capacity

• Railroad Improvements• RoRo capacity• Multi‐purpose capacity

Opportunities• Energy• Logistic Parks ‐ value

added

• Economies of scale to carriers

• reduced cost per unit of cargo

• More transshipment

• New routes/commodities

Panama Canal Expansion

CaribbeanSea

Pacific Ocean

Potential areas to be analyzed

Corozal Container Terminal

Power Generation

RoRo Terminal

Logístic Parks

Bunkering

Top‐Off Operations

LNG Terminal

Pipelines

Vessel repairs

New Container Terminal in Corozal (120 has)

Turning basin

Railway

Third Set of Locks

550m

550m

PPC‐BalboaTerminal

PSA Terminal

Operaciones de ACP

PHASE IIPHASE I

Rodman Terminal

Corozal is the only available shoreline area on the East bank of the Pacific entrancewith Road and Rail Connectivity

THANKSLEROY SHEFFER

[email protected]

Panama Canal Expansion Opportunities & Challenges

Judy LaoU.S. Department of Commerce

Why Expand Canal?

Panama Canal Authority Wants to Maximize Profits

Almost 2/3 of container capacity can’t fit through today’s Canal.

44% of ocean cargo to U.S. goes through Long Beach/LA.

Then 60% of that goes east of the Rockies.

That multimodal method is fast. But it is:Expensive.Fuel inefficient.Too dependent on the Long Beach/LA bottleneck.

An expanded Canal could also serve super tanker trade.

But the Impact on U.S. ports is less clear…

Lots of Complicating FactorsOn U.S. Port Impact

Panama Canal will want to raise tariffs to capture fuel savings.

An increase in tankers leaves less room for container vessel growth.

Port of Long Beach/LA motivated to address challenges.

West Coast railroads may adjust tariffs to remain competitive.

Most East Coast/Gulf Ports can’t handle largest new Panamax.

Significant bets being made on transshipment in Caribbean.

Wage gap between China and Mexico closing – near shoring trend?

Attractiveness of all-water route highly sensitive to fuel costs and how lean the supply chain is.

Where are the Biggest Opportunities for U.S. Exporters?

Panama Canal and Expansion.Ports. Port Transshipment, rail activity.Colon FTZ:, 3PL Logistics, Consumer Retail.Regional Hub: Air activity, support for multinationals.Infrastructure: $13 billion in announced projects – mass transit, airports, hospitals, water treatment, roads.Energy: generation, efficiency upgrades, regional market.Mining: $7 billion investment in copper mining.Consumer Retail: not only for Panama, but for Latin America through the Colon Free Trade Zone.

Bottom Line: not just a market of 3.5 million…

How will the U.S. – Panama Trade Promotion Authority Help

U.S. Exporters?

Tariffs: drop from 10-15% to 0%.Makes your goods and services more competitive.Gives you better margins.Bypass burdensome exemption processes to secure subcontracting business with Canal, Metro projects.

Greater Transparency in Public Procurement. Statutes give U.S. Government greater leverage to encourage an open and transparent process.Political Statement. Re-affirmation of U.S. – Panama historic relationship, which fosters even more trade.Strengthens Panama’s goal of becoming another Singapore. More selling opportunities for you.

What Should You Do Next?

Read Our Doing Business in Panama Guide onexport.gov/panama.

Contact a Local U.S. Export Assistance Center: export.gov/usoffices.

Contact our Foreign Commercial Service Team at the U.S. Embassy:[email protected]

© 2015 Sandler, Travis & Rosenberg, P.A. All rights reserved. 28

SAIL WEST TO GO EAST


SAIL WEST TO GO EAST


Channel with 50-Foot Depth AND

Rise in volume, Fall in Ship CallsMore and Larger Ship to Shore Cranes

Expanded Container StorageExpanded Gate-Processing Capability

Operational Changes at Rail Intermodal Terminals

Federal, State and Local Regulations

Labor Contracts


Nicaragua Canal


Video from Leroy Sheffer

February 22-24, 2015

The Four Seasons Hotel | Miami, Florida, USA

Balancing Security and Trade Facilitation:

What’s the Magic Formula?

Moderator: Norm Schenk, Vice President, Global Customs Policy and Public

Affairs; Chair, ICC Customs and Trade Facilitation Commission

Kunio Mikuriya, Secretary General, World Customs Organization

R. Gil Kerlikowske, Commissioner, U.S. Customs and Border Protection

Luis Eduardo Lara, General Administrator for Foreign Trade Audit, Mexican

Tax Administration

Antoni Estevadeordal, Manager Integration and Trade Sector, Vice-

Presidency of Sector and Knowledge, Inter-American Development Bank

Eugene Laney, Head of International Trade Affairs, DHL Express USA

Customs Trade Facilitation Symposium

General Administration for Foreign Trade Audit

Balancing security and trade facilitation: What's the

magic formula?

Mexico's Authorized Economic Operator

February 2015

Contents

Mexico's Authorized Economic Operator Program

Outcomes and results

International Collaboration

Next Steps

Mexico's Authorized Economic Operator

The program began in January of 2012

It is based on the WCO safety

standards

It applies

to companies engaged

in foreign trade

It seeks to

encourage foreign trade

The AEO program seeks to enhance supply chain security and hence on trade across our

borders, recognizing the Companies that demonstrate a verifiable willingness to comply with

the safety standards.

The partnership with the private sector allows for better risk assessment and targeting and

facilitate legitimate trade. In an initiative to consolidate the

facilitation programs such as: AEO and the

Certification Program for Importers,

starting January 2015, the program will be

managed by the General Administration for

Foreign Trade Audit.

The objective is to encourage tax compliance

and promote trade facilitation for certified

companies.

* STPS: Special Tax on Production and Services (Impuesto Especial sobre

Producción y Servicios)

The Mexican AEO program begun in January

2012 with just major importers and exporters

as members, as of 2013, the partnership has

grown including long‐haul carriers and in

2014 Customs brokers.

Today, more than 451 certified partners have

been accepted into the program:

• 415 importers and exporters

• 36 long-haul carriers (31 more in

process)

14 Customs brokers have applied, their

evaluations is still ongoing.

In 2015 railway carries will be included.

Outcomes and results of AEO's

Overview of AEO companies in Mexico:

- 73% of the AEO companies are located in the

border states with the United States.

- They account for over 40 percent (by value)

of the country’s trade balance in 2014,

- For a total of $992 million USD.

87

233

101

2012

2013

2014

year

* Excluding imports and exports of oil

Requirements and Benefits for AEO companies:

The partnership establishes clear supply chain security criteria for members to meet and in return provides incentives and benefits like:

- Expedited processing

- Reduced inspection time (In average 27% less per operation)

- And various others to simplify customs procedures 421 companies certified (415

maintain the certification)

Additional Facilitation Programs

* STPS: Special Tax on Production and Services (Impuesto Especial sobre Producción y

Servicios)

** IMMEX: Manufacturing, Maquila and Export Service Industry

The goal of aligning the facilitation programs is to offer a range

of benefits to companies from different sectors, that demonstrate a

certain level of fiscal and customs compliance, AEO is a crucial

part of this initiative.

Currently we have two certification programs; AEO and a VAT credit

program for importers that manufacture in Mexico and export their

production to other countries. The following are some figures on

the main outcomes and results of this second program:

- 3,034 companies have been certified

- 246 certified applications are currently pending a resolution

- These certified account for 75% of the national foreign

trade operations in 2014.

Strategies – International Collaboration

The goal of Mutual Recognition Arrangements is to link the international programs so that together they create a network that can assist in securing and facilitating global cargo trade.

By aligning programs and creating these networks, AEO companies participating in an international trade transactions can benefit not only in their country but all the way to the country of destination.

Mexico has signed 2 Agreements on Mutual Recognition and is currently negotiating 4 more.

U.S.A., October 17 th Arrangement Regarding Mutual Recognition of their Respective

Customs Supply Chain Security

South Korea, March 14 th Agreement between the General Customs Administration of

Mexico and Korean Customs Service Regarding Customs Mutual

Recognition of their respective AEO programs

Canada Partners in Protection, proposed month for signature,

December 2015

Japan Japan Authorized Economic Operator Programme

Hong Kong Hong Kong Authorized Economic Operator Programme

Costa Rica Customs Facilitation Programme for Reliable Trade

Agreements

under current

negotiation

Agreements

signed in 2014

Strategies – International Collaboration

(Stages for the signature of an MRA with Mexico )

Signature of an AEO agreement

Development of operational procedures

Conducting joint visits in each

country in order to verify validation

procedures and requirements for

certification

Making a comparison between the

requirements of each certification

program

Verify that the programs are in place

and operating

International collaboration promotes foreign trade and the risk of

trade fraud can decrease.

Next Steps

One of the main objectives is to achieve balance between customs

facilitation and compliance of obligations.

Mexico’s strategy aims at:

- Expanding facilitation

programs

- Linking AEO with other

facilitation programs in

order to reach more actors

and encourage higher tax

and customs compliance.

- Promoting a voluntary

compliance of obligations.

Compliance of obligations

Customs facilitation

Thank you

for your kind

attention

Luis Eduardo Lara Gutierrez General Administrator for Foreign Trade Audit

TRADE FACILITATION INITIATIVES IN

LAC

AND IDB SUPPORT

Antoni Estevadeordal

Manager - Integration & Trade Sector

Vice Presidency of Sectors & Knowledge

Inter-American Development Bank

ICC and USCIB Customs & Trade Facilitation Symposium

February 24, 2015

Miami, Florida

Increasing importance of global trade

– TRADE/GDP Today 25% (1990s 15%)

Increasing participation of EDC trade

– EDC/World Today 40% (1990s 18%)

Increasing relevance of South-South Trade

– SST/World Today 18% (1990s 4%)

Increasing significance of RVCs/GVCs

– FVA Exports 40% EU / 33% Asia / 21% LAC

Increasing complexity of FTA architecture

– FTAs/RTAs +300 Agreements

- 2 -

BALANCING SECURITY AND TRADE FACILITATION

WHY NOW ?

BALANCING SECURITY AND TRADE FACILITATION A COORDINATED BORDER MANAGEMENT DEVELOPMENT APPROACH

(IDB)

CBMCBM

Interoperability

systems & data

Risk management

Trusted operators

Optimization of

control processes

Cross-Border

Infrastructure

Border development

- 3 -

- 4 -

Loans

Technical

CooperationPolicy Dialogue

Capacity Building

• Design & implementation

• Engaging private sector

• Promoting SS exchanges

• Facilitating MRAs

• Regional AEO network• Pacific Alliance

• Mesoamerica

• AEO Strategy for the Americas

(2013-2017)

• WCO/SAFE

• WTO/TFA (Bali)

• virtual AEO courses

• + 200 persons certified

• AEO community of practice

• Regional workshops (WCO/US-

CTPAT)

BALANCING SECURITY AND TRADE FACILITATIONIDB SUPPORT IN LAC

Example #1: AEO

- 5 -

Loans

Technical

CooperationPolicy Dialogue

Capacity Building • Design & implementation

• Reengineering processes

• New technologies

• Intra-agency Coordination

• Private sector

• Sharing S-S experiences

• Promote interoperability

• Pacific Alliance

• Mesoamerican

• Red-VUCE

• WCO

• WTO/TFA (Bali)

• virtual SW courses (regional

and national)

• + 300 persons certified

• SW Community of practice


Example #2: SW

High priority in IDB’s agenda: BC weak links of the supply chain (poor infrastructure and

inefficient control procedures).

Focus on hard -infrastructure- & soft -regulatory frameworks- solutions.

Key regional initiatives: Mesoamerica (MEX/GUA/PAN/CR/NI) / Andean countries

(EC/CO;PE) / South America (IIRSA)

Challenges: Complex interventions (political / technical/ financial) and complex coordination

(multinational / regional / national / local) required.

- 6 -


Example #3: BORDER CROSSINGS

27%

20%

LAC

EXPORT EFFECTS OF SOFTWARE POLICY REFORMS AND HARDWARE INVESTMENT(INTRA-LAC EXPORT GAINS, AS % OF 2008 BASELINE)

BALANCING SECURITY AND TRADE FACILITATION

High returns on a comprehensive trade integration agenda in LAC

Source: IDB (2012) Investing in Integration

ICC AND USCIB CUSTOMS & TRADE FACILITATION SYMPOSIUM “CHANGING FACE OF THE TRADER AND ROLE OF CUSTOMS”

International Trade Affairs and Compliance

UNCLASSIFIED

Eugene Laney, Head of International Trade AffairsFebruary 2015

UNCLASSIFIED

10Customs & Trade Facilitation Symposium| February 2015

Customs and Trade Facilitation

Agenda:1. Where we have come from?2. Where we are going?3. Prescriptions for New Custom’s Paradigm

UNCLASSIFIED

11

The Trade Information and Supply Chain Matrix

Where? How?

What? Who?

Pick Up (Export) Delivery(Import)

Offline (Paper)Past Importance

• Physical Exams• Taxes paid at Border

InformationDelivered

Online (Electronic)Future Importance

• Risk-based Exams• Separation of Taxes

and Physical Clearance

Customs & Trade Facilitation Symposium| February 2015

UNCLASSIFIED

12

New Customs Paradigm: Customs to Citizen-Trader

World Customs Organization (WCO) Three Pillars• Customs to Customs• Customs to Business• Customs to Other Agencies

Propose a Fourth Pillar: Customs to Citizen-Trader• Recognition of the New Citizen-Trader• Recognition of the SME• Recognition of the Impact of M-Commerce• Recognition of the Uber Effect


UNCLASSIFIED

13

New Customs Paradigm

Prescriptions For Moving Forward:• Analyze the Cost and Performance of Custom’s Operations• Establish SME and E-Commerce Advisory Groups• Pursue ways to simplify low-value and low-risk entries• Develop Certified Importers



Closing RemarksJohn Danilovich, Secretary General, ICC Robert Mulligan, Senior Vice President, Policy and Government Affairs, USCIB


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february 22-24, 2015 the four seasons hotel miami, florida ... · guayaquil buenaventura sidney...

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