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UNCTAD Expert Meeting on Trade Facilitation as an Engine for Development

UNCTAD Expert Meeting on Trade Facilitation as an Engine for Development. 21 – 23 September 2005 Geneva. Non-tariff Trade Barriers as an Obstacle for International Trade; practical experience of a company.

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UNCTAD Expert Meeting on Trade Facilitation as an Engine for Development

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  1. UNCTADExpert Meeting on Trade Facilitation as an Engine for Development 21 – 23 September 2005 Geneva Non-tariff Trade Barriers as an Obstacle for International Trade; practical experience of a company

  2. Expert Meeting on Trade Facilitation as an Engine for Development21 – 23 September 2005, Geneva Some Information introducing the company CLAAS CLAAS KGaA mbH – Foreign Trade Department September 2005

  3. CLAAS - State-of-the-art farming equipment Founded by August Claas in 1913, the company is Europe's leading manufacturer of combine harvesters, self-propelled forage harvesters, balers and green harvest machinery. In 2003 CLAAS added tractors to its product range. State-of-the-art services for agricultural business and information technology complete CLAAS’ product range. In addition, CLAAS is engaged in the development and production of components and complete manufacturing systems for the automotive and aerospace industries. CLAAS KGaA mbH – Foreign Trade Department September 2005

  4. The CLAAS-Group 2004 Legal form Commercial partnership limited by shares -KGaA Supervisory Board Helmut Claas (Chairman) Management Board Rüdiger A. Günther (Finance, Executive President) Nikolaus Feil (Agricultural Machinery Division)Dr.-Ing. Hermann Garbers(Technology, Quality) Lothar Kriszun (Marketing, After Sales Division)) Guy Povie (Tractor Division) Thomas Klatt (Controlling) Net sales 2004 1.9 Bill. € Profit before income tax 37.4 Mio. € Export share of turnover 76.8 % Employees plus trainees 8,134 Trainees ratio 6.3 % (worldwide), 7.7 % (in German plants) CLAAS KGaA mbH – Foreign Trade Department September 2005 Figures based on the fiscal year 2004Balance sheet day 30.09.2004

  5. The CLAAS-Group 2004 CLAAS KGaA mbH – Foreign Trade Department September 2005

  6. CLAAS products and developments Self propelled forage harvesters Combine harvesters Balers Green harvest machinery Sugar cane harvesters Telescopic loaders AGROCOM Tractors CLAAS Financial Service CLAAS pre-owned Machines Production engineering Transmissions, axles and hydraulics CLAAS KGaA mbH – Foreign Trade Department September 2005

  7. Expert Meeting on Trade Facilitation as an Engine for Development21 – 23 September 2005, Geneva Non-tariff Trade Barriers Practical experience of CLAAS CLAAS KGaA mbH – Foreign Trade Department September 2005

  8. Non-tariff trade barriers; practical experience of CLAAS North America Security Initiative, Country of Origin - 10 % Central Europe Eastern Europe, Asia Minor Certificates of Conformity (technical), Certificates of Origin, Documentation - 5 % +/- 0 % - 10 % South America Documentation ChinaCertificates of Conformity, duration of customs clearance - 10 % Africa, Middle Eastern CountriesCertificates of Conformity (technical), Certificates of Origin, Documentation - 3 % CLAAS KGaA mbH – Foreign Trade Department September 2005

  9. Non-tariff trade barriers; practical experience of CLAAS Certificates Technical features China • CCC Mark - China Compulsory Certification mark, implemented on May 1, 2002. • CCC requires compliance with Chinese national standards. Difficulties • Includes a wide range of products, in 19 groups with 132 product categories. • Product tests have to be conducted in the exporting country by specially certified institutions. • The exporting company carries all costs related to the issuing of the CCC Mark. CLAAS KGaA mbH – Foreign Trade Department September 2005

  10. Non-tariff trade barriers; practical experience of CLAAS Certificates Technical features Russia • Requirement of certification that the imported products are CFC-free (chlorofluorocarbon). Certificates can be issued at the longest for half a year. Difficulties • Level of the CFCs in products is regulated by EU-wide legislation, which is based on international agreements. Regular product inspection by Technical Inspection Authority includes CFC level controls. This information is not shown separately in the test report. • Russia does not accept internationally recognized inspection results and requires its own unnecessary certification, that is costly and complex. CLAAS KGaA mbH – Foreign Trade Department September 2005

  11. Non-tariff trade barriers; practical experience of CLAAS Certificates Country of Origin Multiple Countries Certificate of Origin for products, issued by Chambers of Commerce (CC). Difficulties • No Common form recognized by all countries. • No conformity in information required by CC to obtain this certificate:For confirming an American origin a statement of the manufacturer is a sufficient origin proof for a German CC.For confirming a Russian origin the same CC requires a Certificate of Origin issued by a Russian CC.Many African and Middle Eastern customers require a mark “Federal Republic of Germany” on all Certificates of Origin issued in Germany, although the products may not have a German origin. CLAAS KGaA mbH – Foreign Trade Department September 2005

  12. Non-tariff trade barriers; practical experience of CLAAS International documentation No conformity in the legislation • Export declaration is to be presented in the country in order to calculate the customs value of a product. • Form and content of an export invoice differ from one country to another. • Additional documents may be required on no basis. CLAAS KGaA mbH – Foreign Trade Department September 2005

  13. Non-tariff trade barriers; practical experience of CLAAS Duration of the customs clearance Multiple countries Chinaup to a 7 day delay Russia up to a 3 day delay (duration varies under circumstances) No single source for information. Existing sources contradictory. Egypt Difficulties: • Very high import costs charged. Difficult to control the costs. CLAAS KGaA mbH – Foreign Trade Department September 2005

  14. Non-tariff trade barriers; practical experience of CLAAS Conclusion For trade facilitation it is necessary to establish: • Internationally recognized certificates with transparent rules and requirements for issuance. • Standardization of the basic export and import documents. Countries’ coordination in customs laws. • Uncomplicated and fast customs clearance regulations. • Predictability of additional documentation requirements. • Possibility to apply for customs clearance without a customs broker. CLAAS KGaA mbH – Foreign Trade Department September 2005

  15. Expert Meeting on Trade Facilitation as an Engine for Development21 – 23 September 2005, Geneva Thank you for your attention. CLAAS KGaA mbH – Foreign Trade Department September 2005

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