ASAPRA Private Sector Panel Friday September 6th 10h30 11h 30 Jean-Marie Salva ICC customs committee vice chair Fernando CARMO World customs broker organization President INTRODUCTION Presentation of ICC : business organization dedicated to free trade since its creation in 1929 Changes in the 2000’s : promotion of partnerships between business and administrations, namely customs ICC & PSCG private sector consulting group TABLE OF CONTENTS I- WCO and ICC Cooperation Agreement – ICC-WCO Agreement History – Related activities II- Technical Cooperation – TCCV – HS Committee III- ICC : a major source of proposals – ICC Customs Guideline (2012) – ICC Guidelines for Cross-Border Trader in Goods (April 21th,2013) IV- Policy statements Eg Transfer pricing customs valuation I- WCO AND ICC AGREEMENT COOPERATION I. WCO AND ICC AGREEMENT COOPERATION (1/2) A. ICC – WCO Agreement : History Early 60’s: unformal parnership June 1996: signature of the 1st official cooperation agreement June 27th 2011: signature of a revised cooperation agreement that improved channels of communication in Customs-business Partnership ICC WCO agreement is an example of international cooperation among businesses and Customs and of a successful private – public partnership I. WCO AND ICC COOPERATION AGREEMENT (2/2) B. ICC WCO agreement related activities leading role in the fight against counterfeiting and piracy : – WCO’s participation in the future creation of the ICC Customs/Anti-Corruption Code of Conduct, – protect intellectual property in Free Trade Zones – Organization of the Global Congress on Combating Counterfeiting and Piracy Strong collaboration on facilitating the international trade by the simplification and harmonization of customs procedure : – cooperation on several projects : developing and promoting guidelines for international trade facilitation; liberalizing the issuance of preferential Certificates of Origin. – creation in 1961 of the ATA Carnet system II- TECHNICAL COOPERATION II- TECHNICAL COOPERATION (1/2) A. Technical Customs Committee Valuation (TCCV) ICC has been granted a status of accredited observer to the TCCV sessions Contribution to the discussions on various technical questions, e.g. transportation costs in the context of a CIF transaction Formal presentations on various topics as the licensing of IPR, the use of distributorship agreements and transfer pricing … Willingness to participate in TCCV inter-session discussions within working groups, for instance the Club de la Réforme II- TECHNICAL COOPERATION (2/2) B. HS Committee (HSC) Having been granted a same status of accredited observer I.C.C participate to HS Committee‘s session due to : – resolve classification disputes and questions between members; – promote widespread application of the HS ; – interpret the “HS” for securing an uniform interpretation and application of the nomenclature ; – give information concerning developments in technology and changes in international trade for updating the HS. III- ICC : A MAJOR SOURCE OF PROPOSALS III. ICC : A MAJOR SOURCE OF PROPOSALS (1/2) A. Customs Guidelines (2012) 1st version published in 1997 and revised in 2012 within the framework of ICC MOU with WCO comprehensive set of practices that ICC considers should characterize all modern customs administrations reinforced by a set of explanatory notes, identifying its advantages to government, business and customs Aim for a better security and other border controls Improve trade facilitation revised periodically to reflect new trading, transport and administrative activities and requirements Encourage mutual confidence and co-operation between customs and commerce III. ICC : A MAJOR SOURCE OF PROPOSALS (2/2) B. Guidelines for Cross-Border Trader in Goods / draft (April 21th, 2013) a harmonized understanding of what criteria should be used to define a trusted trader in the context of the Authorized Economic (AEO) programmes 59 standards offering as best practices of safe and secure conduct for cross-border traders in goods Used by traders in the design and management of AEO programmes Taken into consideration by governments when assessing the risk represented by operators, particularly in trusted trader programmes Their objective is to provide a common understanding of what border authorities should expect of a diligent trader IV- POLICY STATEMENTS IV. POLICY STATEMENTS (1/2) List of the most recent ICC customs policy statements : Policy Statement on trade tensions between China and the European Union (June the 27th 2013) ; Policy Statement on Limitations of deductions of interest payments (February 2012) ; Policy Statement on Transfer pricing and customs value (February 2012); Policy Statement on Application of anti-avoidance rules in the field of taxation (January 2012). IV. POLICY STATEMENTS (2/2) Eg : Policy statement on transfer pricing and customs value The ICC policy statement on TP and CV was initially prepared by the ICC working group on TP and CV The policy statement was drafted by members of the working group after lengthy discussions and various rounds of consultations during two years these proposals are designed : – to help simplify regulations for companies and administration (determining the appropriate related party of goods) ; – to clarify rules, especially the OECD Guidelines, for both parties so as to reduce financial impact related to divergent customs valuation The statement is set to be presented to government and relevant international organizations CONCLUSION Agreement on Preshipment Inspection – The PSI Agreement (1996) In 1996, the Agreement on PSI creates a three-tier mechanism for considering complaints on arbitrary or wrong decisions It establishes an independent review entity (IE) to which both exporters and PSI entities can submit grievances The IE is constituted jointly by WTO (World Trade Organization), the International Federation of Inspection Agencies (IFIA for PSI companies) and ICC. ICC, as an IE’s member, is expected to appoint, with the agreement of the parties to the complaint, either a single trade expert or a three-member panel. In that case, one member is nominated by ICC. In 2006, the PSI Agreement has been reviewed by the TCCV Committee in which ICC is an accredited observer.