The World ECR Export Controls and Sanctions forum

Transcription

1 The World ECR Export Controls and Sanctions forum Ensuring Compliance in the Supply Chain Charles Barber Director Trade Compliance 16th October, 2014

2 Supply Chain Map Product Flows A, B and C A A1 Finished Products Define flows in which IPR and CC are required B2 VMI Warehouse B2 B Manufacturing sites IPR Suppliers B1 CC B3 Provision of for manufacturing A3 A2 Selected non-hq product lines go via Product HQ for QC One manufacturing site provides to another B4 Manufacturing site Product HQ s Location A, NL Ovens Location B, UK Galleys Location C, US - Lavatories IPR A1 Finished Products CC C2 Finished products C1 Parts Customers Customers are airlines or aircraft manufacturers Manufacturer gave 60% market share Airline A and Airline B are biggest customers KN warehouse C2 Finished products C KN Amsterdam consolidation to manufacturing site (C1) KN Toulouse delivery to customer FAL (C2)

3 International Trade Compliance Import/Export control requirements Apply in many jurisdictions, to tangible shipments and intangibles (including technology, drawings) US extra-territorial rules apply to US individuals and companies; to Non-US persons while physically present in US and to US origin items/technologies, including reexports Import/Export rules apply to all parties, including seller, agents, brokers, freight forwarders, carriers, suppliers, customers, distributors/resellers Classification of Items Required to determine admissibility, duty rate, preference program eligibility and licensing requirements Import items must be classified according to the Harmonized Tariff System (HTS or HS) Export classification applies in numerous jurisdictions to military and dual use items Valuation Required to determine customs duty and tax Value based on price paid or payable Determination of intra-company transfer price is required Each country chooses whether to include international freight and insurance, e.g., included by EU and China, excluded by US Country of Origin Required with exit and entry declaration Each duty preference /FTA regime has its own rules that must be strictly followed Some countries require origin marking Screening All transactions must be screened against Restricted/Denied Party(s) and matches/hits must be reviewed before the transaction can proceed. Outside Counsel advice may be needed Sanctioned countries Transactions involving: Cuba, Iran, N. Korea, N. Sudan, Syria, are generally subject to strong restrictions/not permitted. Anti-boycott rules Restrict participation in Arab boycott of Israel Most restrictions must be negotiated out Even if removed from contract/financing documents, request must be reported International supply chain security EU: Authorized Economic Operator (AEO) program imposes specific requirements for imports, exports and cargo security. US: the Customs-Trade Partnership Against Terrorism (C- TPAT) imposes specific cargo security requirements for imports. Many jurisdictions have, or are developing cargo security programs. Trade Compliance 3

4 Risk Score Actual 84% Potential 60% Ex Co., UK Duty Saved $? K $256k Duty Spend Transactions 65% Routed 38% Re Exported Exports Bi-lateral FTA GSP imports Imports Import from Export to Restricted Party Screening Completed / When / Who End Use / End User Verified / Contractual Protection Desk-Level Procedures Trade Program Policy, Assessment, Training Sales $55,440,772 Export 69% EU 15% Domestic 16% Purchases $23,888,169 Domestic 74% Qatar Kuwait Import 25% Hong Kong EU 1% 10% Time Spent No 1 <1% ERP IBS Related Role Additional resources Exp Cont d items HTS ECCN Origin 32 ERP items growth per week

5 Functional Roles and Trade Compliance Functional Roles and Trade Compliance 5

6 Questions... Thank you