Challenges and Opportunities Cross Border

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Eustace Waters
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1 Challenges and Opportunities Cross Border Elmar Toime Postea Group Philip J. Warker U.S. Department of Homeland Security Tom Forbes MetaPack Giselle Valera U.S. Postal Service (USPS) Shoshana Grove International Bridge

2 De minimis level raised from $200 to $800 H.R Trade Facilitation and Trade Enforcement Act of 2015 (1) Modernizing international customs is critical for United States businesses of all sizes, consumers in the United States, and the economic growth of the United States. (2) Higher thresholds for the value of articles that may be entered informally and free of duty provide significant economic benefits to businesses and consumers in the United States and the economy of the United States through costs savings and reductions in trade transaction costs. 17

3 De minimis (b) SENSE OF CONGRESS. It is the sense of Congress that the United States Trade Representative should encourage other countries, through bilateral, regional, and multilateral fora, to establish commercially meaningful de minimis values for express and postal shipments that are exempt from customs duties and taxes and from certain entry documentation requirements, as appropriate. (c) DE MINIMIS VALUE. Section 321(a)(2)(C) of the Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) is amended by striking $200 and inserting $800. ( (d) EFFECTIVE DATE. The amendment made by subsection (c) shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act.

4 Implementation Implementation on March 10 as specified in the law ACE system update needed, but low impact and automated systems ready Interim Final Rule (IFR) to be issued as soon as possible CBP expects the number of de minimis value exemption from entry filings to increase As of March 10, 2016, shipments valued at $800 or less eligible for release under the same processes and with the same restrictions as currently apply

5 E-commerce Strategy DHS developing a holistic strategy to address the security and facilitation of electronic commerce - digital marketplace holds extraordinary potential for higher volumes but with that potential there is also risk. Opportunity to partner further with the private and postal sectors, and embrace how collaboration can build a security apparatus that facilitates legitimate shipments. ACAS was a new model for how we develop programs and regulations in partnership. E-commerce will be done the same way but now the process is more mature, based on the lessons we both learned during the air cargo effort. 20

6 E-commerce Strategy: Focus areas At present, we intend to focus on five broad areas for improvement: removing barriers to help electronic commerce grow in a safe, secure, and efficient fashion; leveling the playing field to ensure no carriers or operators have an advantage over others simply by the nature of their operations or pre-digital era regulatory regimes; harmonizing data requirements to the extent possible, in order to reduce advance data impacts; expanding trusted trader concepts to embrace micro-, small-, and medium- enterprises; and ensuring our enforcement in the e-commerce realm is riskbased and focused.

7 Tom Forbes VP, International 22

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9 MetaPack connections 25,000 status updates 3,500 carrier services 300 carriers 1 API 24

10 CHALLENGES IN TRANSBORDER E-COMMERCE Top Six Challenges and Opportunities 1) Downward Pressure on Pricing: High Shipping Costs Simply Will Not Work in Today s Environment 2) Buyers Demand Robust Tracking Most Will Not Order Without It Via What Carrier (and When!) Will My Package be Delivered? 3) Long and/or inconsistent transit times Two Weeks or More no Longer Cuts It) 25 Copyright 2015, International Bridge, Inc. myib.com

Credit Card, and in Their Currency and/or Payment Platform 6) Localized Customer Service & Returns Are a

11 CHALLENGES IN TRANSBORDER E-COMMERCE Top Six Challenges and Opportunities 4) Duties/tax/customs issues & delays Surprise-Not All Buyers Want Duty Prepaid 5) International Customers Want to Order with Their Local Credit Card, and in Their Currency and/or Payment Platform 6) Localized Customer Service & Returns Are a Must High Cost of Localization Can be a Barrier to Entry 26 Copyright 2015, International Bridge, Inc. myib.com

WTO Business FOcus GrOup 1 MsMes and e-commerce Final report September 2016

WTO Business Focus Group 1 MSMEs and E-Commerce Final report September 2016 Background Recent years have witnessed remarkable developments in the digital economy, creating unprecedented opportunities for