10th April 2015

1. EU- Ukraine Agreement: 2. AEO in Indonesia: 3. AEO in Brazil: 4. WCO Magazine: 5. China new logistic system 2020: 6. PV/Ex processes added to SPIRE: 7. Australian Defence Trade Controls

 

1. EU- Ukraine Agreement: DCFTA EU Ukraine is on course to be implemented from 1st January 2016. The Deep and Comprehensive Free Trade Area was originally signed on 27th June 2014.  In April 2014 in response to the security, political and economic challenges faced by Ukraine the EU unilaterally granted Ukraine preferential access to the EU market until 31st December 2015.

2. AEO in Indonesia: At the invitation of the Director General of Indonesian Customs, Mr. Agung Kuswandono, WCO Secretary General Kunio Mikuriya spoke at the launch of the Authorized Economic Operator (AEO) certification in Jakarta, Indonesia on 17 March 2015.  Following a speech by Indonesia’s Minister of Finance, Mr. Bambang Brodjonegoro, Secretary General Mikuriya presented the global situation with respect to AEO and the way forward with mutual recognition of AEO programmes and coordination with other government agencies on different standards relating to business partnerships, as specified in the upcoming revision of the WCO SAFE Framework of Standards. He also commended the establishment of the Indonesian Customs Contact Center on the same day, bringing together several business enquiry points within a unified service and thereby increasing the transparency of Customs procedures. Linking to the ongoing WCO Regional Seminar on the Trade Facilitation Agreement (TFA) in Jakarta, he stressed the importance of Customs’ contribution to connectivity at borders, with better service for business.

3. AEO in Brazil: Brazil has (finally!) achieved the implementation of a legislation concerning AEO provisions following the WCO SAFE Framework of Standards. For more information, visit the following sites:

http://www.iadb.org/en/topics/trade/aeo-program-lands-in-brazil,18684.html

In December 2014 Brazil published in its Official Gazette Normative Instruction RFB 1521/2014 concerning the authorized economic operator (OEA) program. This program is based on the World Customs Organization’s Framework of Standards to Secure and Facilitate Global Trade, which sets guidelines for implementing supply chain security programs while facilitating international trade. It also largely resembles the European Union’s Authorized Economic Operator program, which requires participants to meet certain criteria to be certified as a “reliable partner” in international trade.   Brazil’s OEA program incorporates three certifications: OEA-Security (OEA-S), OEA-Compliance (OEA-C), and Full OEA (OEA-P). The primary differences between these three certifications are the requirements that the economic operators must comply with and the benefits that will be provided. To date only five companies (those that participated in the pilot program) have been certified in OEA: Embraer, CNH, 3M Brazil, DHL and Airports of Brazil.   Brazil Customs expects more companies to become OEA-S certified in 2015 for several reasons. There is growing demand by customers of Brazilian exporters for assurances of safety in the international supply chain. In addition, Customs feels that all three OEA certifications can serve as a quality label for economic operators in Brazil. Benefits will also likely be further expanded as Brazil concludes arrangements on mutual recognition between OEA and the supply chain security programs of its trading partners. The WCO reports that 16 other authorized economic operator-type programs have been implemented worldwide, including by the United States and the European Union.

Brazil is now the eleventh country in Latin America and Caribbean with an AEO program. The other 10 countries in LAC with AEO programs are: Argentina, Colombia, Costa Rica, Guatemala, Jamaica, México, Panamá, Perú, República Dominicana y Uruguay. More than 50 countries have an AEO program, including the member states of the European Union, the United States, Canada, Japan, China and Korea. Moreover, countries with AEO programs have the option of recognizing the secure and reliable status of a company that is conferred by another AEO country program, through a mutual recognition process. As a result, certified companies obtain additional benefits in other countries.

4. WCO Magazine: The WCO has released its 76th edition of WCO News, the Organization’s flagship magazine aimed at the global Customs community, which features a special dossier on Coordinated Border Management (CBM) – the WCO’s theme for 2015 – highlighting some of the interesting Customs initiatives and tools to support CBM, including a dedicated article on the WCO Data Model.

http://www.wcoomd.org/en/media/wco-news-magazine/~/media/7C878D64C5664C7CAFDFFEFD804216B9.pdf

Other Highlights of this edition include articles on fighting motion picture and television piracy in the US, the introduction of ‘plain packaging’ of cigarettes in Australia and its implications, the roll-out of the AEO programme in Uganda, the strengthening of partnerships with stakeholders in Cape Verde, the heightening of controls on light aviation in West Africa, and much more.

5. China new logistic system 2020: China’s government plans to have a new logistics system in place by 2020, by which time it forecasts industry growth in the sector will be 8% and account for 7.5% of the country’s GDP. At the same time, the government said logistics costs will be reduced by 16% against that GDP figure. This compares with data quoted by the government from the China Federation of Logistics and Purchasing (CFLP), which shows that following an average annual increase of more than 20% over the past decade, logistics growth has slowed along with the rest of the economy. Combined goods value grew 8.6% year-on-year in the first quarter. The plan is now to focus on slower and more sustainable growth. More...

6. PV/Ex processes added to SPIRE: Private Venture (PV) security grading and PV Exhibition Clearance (Ex) applications can be made and submitted to the Ministry of Defence (MOD) using the SPIRE online export licensing system. Any exporters needing to obtain a formal MOD security grading determination or exhibition clearance letter for PV/Ex defence related goods should use SPIRE for all such applications from now on. More...

7. Australian Defence Trade Controls: The Australian Government's Defence Export Control Office has posted on its website a notice that the The Defence Trade Controls Amendment Bill 2015 (DTC Amendment Bill) which amends the Defence Trade Controls Act 2012 (DTC Act) was passed by Parliament on Wednesday 18 March 2015. The DTC Act regulates the supply and publication of Defence and Strategic Goods List (DSGL) technology and the brokering of DSGL goods and technology. The offence provisions of the Defence Trade Controls Act 2012 – for supplying and publishing DSGL technology and for brokering DSGL goods and technology – will not come into force until the end of a 12-month implementation period that will run from the date the DTC Amendment Bill receives Royal Assent (Royal Assent is likely to occur in the next couple of weeks). Individuals and organisations do not need to seek permits for any activities that will occur during this implementation period.  To be prepared for the introduction of the offence provisions, individuals and organisations will be able to apply for permits from 16 May 2015. Defence will work closely with stakeholders as they establish internal compliance arrangements by providing significant implementation support through outreach and engagement sessions. Detailed guidance, tools and training will be available on DECO’s website shortly. A summary of the key changes to the DTC Act that will be introduced by the DTC Amendment Bill are available here.

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