How to enjoy Simplification, and benefit our Specialism

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How to enjoy Simplification,and benefit our
Specialism
Meeting EUROCHAMBRES trade forum 2005 Location
Menthon Saint Bernard Date April 22nd
2005 Presentation by Th. van de Velde
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WELCOME
Theo van de Velde Chamber of Commerce
Rotterdam tvelde_at_rotterdam.kvk.nl Tel. 06 136
538 96
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About this presentation

1. Structure of Chambers of Commerce in The
   Netherlands
2. Core competents of the Rotterdam Ch of C.
3. Quality and training programs concerning
   Exportdocuments
4. Costs of Documents
5. Procedures
6. Practice of simplicity
7. Examples of conflicting simplification rules
8. Future
9. Helpdesk Eurochambres
10. Help me ! !

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The Netherlands - Facts Figures

• 42.000 km2
• Population 15,5 million
• Labour force 6,6 million
• Approx. 500,000 businesses
• GNP 314 billion

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Dutch Chambers of Commercefacts and figures

• Site www.kvk.nl gt 1 mio visitors per month
• Pageviews gt 6 mio per month
• Electronic newsletters gt 40,000 subscribers
• Digital brochures gt 70,000 per year
• Visitors at our offices gt 375,000 per year
• Seminars gt 35,000 participants per year
• Magazine gt 700,000 per month
  (largest B2B-medium in Holland)
• Certificates of origin gt 500,000 per year

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Mission Statement

• We offer companies, especially SMEs, "boundless"
  assistance with regard to their international
  ambitions by means of
• professional support
• state-of-the-art products and services
• (inter)national networks
• taking into consideration
• regional as well as global economic
  developments
• business environment

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Strong market position Dutch Chambers of Commerce

• Total awareness 92
• 54 have used the Chamber in connection with
  International Trade
• 80 are (very) satisfied with the products and
  services offered

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Portals to business

1. B-to-B the Traderegister
2. Portal to businessinformation
3. Setting up shop
4. Gateway to international business
5. Lobby to public authorities and vice versa

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Portal to business 4

• Gateway to international business
• use relations of ethnic entrepreneurs with
  countries of origin (Turkey, Morocco, Surinam,
  Cape Verde and Dutch Antilles) in a positive
  manner
• give information on threats and opportunities of
  outsourcing in a pro-active way
• orientation on the new neighbours of the EU
  (Ukraine, Russia, Romania, Turkey, etc.)
• Rotterdam Trade Dinner Dutch Trade Board

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Global Network

• Embassies / Consulates
• Local governments
• Branch organisations
• Enterprises
• Financial institutions
• Consultants

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EXPORTDOCUMENTS TRADE POLICY

• Advice on trade customs-regulations
• Import/export/transit prescriptions
• Import duties (EU and other countries)
• Customs law
• Tariff-contingency
• Trade Agreements
• Issuing authority
• Certificates of Origin
• Declarations and legalisation
• Carnets ATA
• Involved issue Eur-1 certificates

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Issuing tasks

• Certificates of origin
• Movement certificates
• Legalisation
• Declarations
• Carnets ATA

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Quality and training programs

• courses
• instructions
• information letters
• audits
• helpdesk (national)

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Costs for issuing documents Chamber of Commerce
Rotterdam
Certificate of Origin 15,-- On line raises the cost
EUR-1 15,-- Only in The Netherlands
Legalisation 10,-- Against cost price
ATA 175,-- Increased with CWF, insurance, papercosts
Shall we compare costs and services?
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BUDGET RECEIPT
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Rules of origin
Instrument for trade policy Essential for the
customs
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Rules of origin are tools to limit or encourage
international trade.
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Rules of origin
Used by governments to regulate trade flows

• I do not want your products
• I just allow a few
• You can not get mine
• You pay a premium price
• You get a reduction

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World trade is changing rapidly
One would change from production countrywhen a
slight change in circumstances occurs.
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How to symplify the origin rules

• Non preferential
• Uruguay round
• Harmonisation proposals

• Preferential
• Green paper
• GSP
• New agreements?
• Mediterranean agreements?

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Current and future origin rules are mainly
understood by experts working in this minefield
on a daily basis
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Non preferential rules

• as stated in the Community Customs Code,
• EG regulation 2913/92 art. 24
• underwent the last, substantial, economically
  justified processing or workingin an undertaking
  equipped for that purpose and resulting in the
  manufacture of a new product or representing an
  important stage of manufacture.
• gives a broad interpretation! !

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Change of tariff-heading
Live poultry Meat of poultry Poultry fat Other
prepared meat of poultry Soup and broths
01.05
02.07
15.01
16.02
21.04
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Preferential rules

• are based on the HS code and are established in
  the several protocols
• Dissimilarities in protocols
• Cumulation rules
• Tolerances
• Footnotes (textiles)
• What is the involvement of your Chamber of
  Commerce?

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(No Transcript)
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CUMULATION
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Examplesof
Products with origin rules that are not easy to
simplify
Heading Product Non-pref Preferential
2203 2204 Beer wine Art.24 List 11? Change heading Origin of the grapes
0402.21 Milkpowder National Blending rules All products of chapter 04 Wholly obtained
2309 Animal feed Art.24 Grain, meat, milk, melasse, (fish) of origin
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SHOES 6401 - 4
Reconditioned engines
How about these products?
Textiles Ch 50 - 63
Industrial products involved with
cumulation Or Allocation rules?
Vegetable oils 1507-1515
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Time for a break
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FUTURE

• Three tendencies
• Development international trade policy
• Globalisation
• Digitalisation

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GSP Everything but arms

• Few agricultural exceptions
• Major break in policy
• Minor impact
• Trade volume
• Recent history

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Globalisation

• The era of multinational products
• - determination of origin not easy anymore
• Multi-country sourcing
• - stability of the value added criterium
• Trade is rather complicated
• - responsability of policy makers
• - responsability of traders

for example Assembly of Anchors!
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Free World Trade

• Abolishing tariffs
• Non-tariff barriers

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Where are we?

• For non-preferential origin, CCIs are the
• competent
• acknowledged
• and accepted authorities

But we are still living in a paper-based world!
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The new situation

• From the paper-based world to electronic
  commerce
• Think European!
• Change of the rules of origin

Electronic certificates are a logistic solution
! It does not simplify procedures itself.
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The technical aspects

• Security standards are different in the European
  countries
• CCIs have to act or reactaccording to their
  national law

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Think European!
Imagine the addressee of a C/O
He expects a European, not a national document
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New rules of origin
New rules do not mean new authorities to
decide on New harmonized rules mean broader
acknowledgement
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European standards

• ... set up by the European Chambers (
  EUROCHAMBRES)
• ... acknowledged and recognized by
  European authorities ( European
  Commission)
• ... and used by each and every Chamber in
  the EU.

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Import duties

• Uruguay Round lowering duties
• Erosion of preferences
• Cost-benefit of a bureaucratic system
• Defensive or offensive rules of origin ?
• Equal treatment
• Decreasing import duties other trade bariers

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Responsebility Exporter

• Expected knowledge Exporter
• Administration
• Reciprocal Assistance - Pref / Non Pref

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Helpdesk Eurochambres
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Thank you for your attention