1. WCO PSCG Presentation to Policy Commission June 2014

2. Participants in PSCG Meeting, 22nd-23rd June 2014 • IBM • ICC • IFCBA • IKEA • IRU • L Brands • Microsoft Corporation • Renault Nissan • OPORA Russia • Procomex • SABMiller • Samsung Electronics Company • WSC • AAEI • BASC • Boeing Co. • De La Rue International • Deutsche Post DHL • FedEx • FIATA • Fonterra Cooperative Group Ltd • GEA • Hutchison Port Holdings • IATA • IAPH

3. Highlights of PSCG Meeting • Vision • Taking Stock - membership diversity footprint • Single Issue Meeting – future of PSCG • Influence, advice and support – what have we done? • Orientation Package Annex – prioritisation & alignment • Pillars of PSCG focus • Commentary on proposed new structure

4. Vision To inform, advise and support the Secretary General, WCO Policy Commission and WCO Member Administrations to enhance their effectiveness and efficiency from a private sector perspective. Inform: to impart information Advise: to recommend or suggest Support: to give assistance

5. Where has the PSCG been? And where has it influenced, advised and supported… • AEO Benefits • AEO Template • Co-Chair SWG • Co-Chair Data Quality Experts • WG • Annex to Orientation Package • Triangle of Influence • Makers, Movers and Shakers • ACAS – First participants and • recommended standards for • inclusion in SAFE by 2015 • Contributed in GNC • Support Capacity Building • initiatives • Supported WCO Committees, • Conferences and Events through • presentations, participation, • and sponsorship • AEO/MRA survey feedback • (plus translation/distribution) • Value Chain Mapping outlined

6. ...and still to do! • Cross-reference PSCG work to WCO instruments, tools, committees • Representation and ability to address regional diversity • WTO/ATF • Value Chain Mapping • PSCG Member commitment • We can do more...

7. PSCG Membership Footprint Industry Sectors Aviation Dairy/Food Consumer Electronics Retail Wholesale/Retail Technology Devices + Services Pharmaceutical Print + Paper Automotive Brewing Petrochemical

8. As to more diversity... PSCG Survey Question: What activity/membership does your organization have in WCO regions?

9. 4 Pillars of PSCG Transparency Predictability Engagement Efficiency The availability of transparent procedures including binding rulings The need for intellectual Property enforcement and respect for the role of rights Holders Voluntary disclosure w/out penalty Ensure that SMEs are engaged in Customs issues Harmonisation of procedures Consistency during negotiation and after implementation of Free Trade Agreements Post-entry adjustments Multi-agency Coordination including single windows Resolving Customs valuation conflicts with tax laws Implementation of Centres of Excellence Further introduction of AEO benefits Enhanced risk assessment strategy and filing mechanisms Paperless filings Account-based processing Consultative Committees which benefit both Customs and the private sector New business models, business processes and how value chains work – B2B, B2C :

10. 4 Pillars of PSCG in relation to TFA Transparency Predictability Efficiency Engagement • ARTICLE 2: OPPORTUNITY TO COMMENT, INFORMATION BEFORE ENTRY INTO FORCE AND CONSULTATION • ARTICLE 3: ADVANCE RULINGS • ARTICLE 10: FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION AND TRANSIT - ARTICLE 2: OPPORTUNITY TO COMMENT, INFORMATION BEFORE ENTRY INTO FORCE AND CONSULTATION -ARTICLE 13: INSTITUTIONAL ARRANGEMENTS • ARTICLE 1: PUBLICATION ANDAVAILABILITY OF INFORMATION • ARTICLE 5: OTHER MEASURES TO ENHANCE IMPARTIALITY, NON-DISCRIMINATION AND TRANSPARENCY • ARTICLE 10: FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION AND TRANSIT • ARTICLE 7: RELEASE AND CLEARANCE OF GOODS • ARTICLE 8: BORDER AGENCY COOPERATION • ARTICLE 9: MOVEMENT OF GOODS UNDER CUSTOMS CONTROL INTENDED FOR IMPORT • ARTICLE 10: FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION AND TRANSIT

12. PSCG Proposal for Change PSCG COMMENTARY ON DRAFT TERMS OF REFERENCE FOR THE PRIVATE SECTOR CONSULTATIVE GROUP Original PSCG Terms of Reference: Drafted - September 2005 Revised - May 2014 Confirmed by the Council - [date of confirmation] Private Sector Consultative Group Chairperson : Member of private sector Vice-Chairperson: Member of private sector Established : 2005 Secretariat : WCO Duration : Unspecified

13. PSCG Proposal for Change 1. Mandate The Private Sector Consultative Group (hereinafter referred to as the “PSCG”), is formed for the purpose of informing, advising and supporting the WCO Secretary General, the Policy Commission and any other standing bodies of the WCO as appropriate and WCO Members to enhance their effectiveness and efficiency from a private sector perspective and provide consultation as and when requested.

14. PSCG Proposal for Change • 2. Membership • The WCO Secretary General in close consultation with the Chair and the Regional • Vice-Chairs of the Council appoints all PSCG members. • The PSCG consists of no fewer than 20 members. • The PSCG consists of businesses and associations involved in the global value chain. • PSCG member terms will last three years, the term running from 1 July to 30 June. • PSCG members cannot serve more than two consecutive three-year terms. • The PSCG will employ a system of rotation where members leave the PSCG after their term • is completed. • Former PSCG members can be re-appointed to the PSCG after a one-year hiatus. • To promote continuity, the WCO Secretary General will appoint no more than six or seven • new PSCG members every year so that terms are staggered.

15. PSCG Proposal for Change 3. Scope The scope of the PSCG is to inform, advise and provide support on new and evolving business strategies, practices and models as well as specific matters relating to trade facilitation, enhanced border and cargo supply chain security, Customs modernization and automation, capacity building, compliance assessment including valuation and classification issues, commercial enforcement and uniformity, international efforts to harmonize Customs practices and procedures, and strategic planning. The PSCG is to play an important role in the presentation of views and perspectives as expressed by trade, and in this respect should be recognized as a primary resource for WCO Members.

16. PSCG Proposal for Change • 4. Key Deliverables • The PSCG’s key deliverables are: • to inform and advise the WCO Secretary General and WCO • Members on Customs and international trade matters from the • perspective of the private sector such as preparing position papers • on topical matters, • to contribute to the development of WCO standards, tools and • instruments, • to support the adoption and effective implementation of WCO and • other relevant international instruments, • to assist the WCO in meeting its needs in the regions.

17. PSCG Proposal for Change • 5. Means of Operation • The PSCG deliberations and decisions shall be made on the basis of group consensus and will recognise the • diversity of views expressed to illustrate to the WCO the complexity of the issues raised. • The PSCG elects its Chairperson and Vice-Chairperson from within the PSCG membership. The PSCG Chairperson • and Vice-Chairperson are subject to the same three-year term of office and rotation policy. • The Secretary General will make appropriate arrangements to ensure that during the first year under the new • governance terms the PSCG will have no fewer than 20 members. This may require a temporary adjustment to the • new term length rules for some appointments during the new PSCG’s first term. • The PSCG will have Observer status with the WCO and may be invited to attend official WCO meetings where the • Terms of Reference of such meetings permit such attendance. • The June Policy Commission agenda will include specific designated items pertaining to international trade, for • which PSCG members and relevant non-PSCG Observers will be invited to attend. • The PSCG will determine during its June plenary session the meetings in the WCO Calendar, which it plans to attend • for the coming year. The PSCG will consider virtual meeting facilities for intersessional work. • Representatives of appointed WCO members and the Secretariat shall actively participate in PSCG meetings.

18. PSCG Proposal for Change 6. Resources Required The PSCG may meet at WCO Headquarters.

19. Thank you www.wcopscg.org