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Key Issues in Trade Logistics

Key Issues in Trade Logistics. June 7, 2010. Customs Holds are the Key Challenge. 20% of Destination Countries Hold Over 50% of All Imported Shipments 50% of Destination Countries Hold Over 25% of All imported Shipments

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Key Issues in Trade Logistics

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  1. Key Issues in Trade Logistics June 7, 2010

  2. Customs Holds are the Key Challenge • 20% of Destination Countries Hold Over 50% of All Imported Shipments • 50% of Destination Countries Hold Over 25% of All imported Shipments • On an average month, Over 1.5 million Express Carrier Shipments Are Held by Customs Administrations and Lose Service to Customers

  3. Global Customs Priorities to Improve Flow of Products • Balance Between Security, Trade Facilitation, (and in Some Cases Revenue Collection) • Simplification of Border Regulations and Procedures • Leverage Use of Automation and Technology Capabilities • Reduction in Use of Paperwork • Increase Exemptions for Low Value Shipments and Entry Limits • Global Consistency

  4. Barriers to Eliminating Use of Paper • General Acceptance of Electronic Formats • Definition of Pro Forma Invoice • Acceptance of Imaged Documents • What Constitutes Original Signature • Limited Number of Countries Accept Paperless Documents • Export/Import Requirements Not in Sync

  5. II Tier Issues And Opportunities Impacting Global Trade Logistics • Other Government Agency Clearances (As Applicable) • Intellectual Property Rights Enforcement (IPR) • Consumer Product Safety • Account Based Management Program • Trusted Importer Programs

  6. Challenges to Improve and Comply With New Security Standards • Data Elements Required for the Advance Transmission of Shipment Data • Time Requirements for the Advanced Transmission of Data • Mutual recognition of security programs (AEO, PIP, C-TPAT) • Expansion of Security Programs to Other Modes of Transportation • Considerations for Service Providers/Companies Who do More Than Required

  7. Sustainability – Going Green Global Strategy Social Responsibility Grow Business Profitably Support Communities Help Improve the Human Condition Develop People Build the Brand Promote Wellness and Safety Economic Prosperity Provide Value-Added Solutions Provide Competitive Compensation Operate Efficiently Focus on Customers Help Strengthen the Enterprise Embrace Diversity and Human Rights Act Responsibly Support Global Trade Deliver “Green” Services Lead by Example Conserve Energy Protect Natural Resources Environmental Stewardship Reduce, Reuse, Recycle Help Protect the Environment

  8. Intermodal Strategy Benefits 8 X less energy 4 X less energy 2 X less energy AIR 0.570* TRACTOR TRAILER 0.072* RAIL 0.020* SHIP 0.010* kg of CO2 per Metric Tonne-Kilometer* * Metric Tonne-Kilometer is equal to one (1) metric tonne of freight moving the distance of one (1) kilometer (Source: World Resource Institute GHG Protocol)

  9. Act Responsibly: Reduce, Reuse, Recycle • Reducing our environmental impact and increasing our efficiency • Solid waste recycling — metals, plastics, paper, cardboard and pallets • Electronics and battery recycling • Strategic use of remanufactured parts and products containing recycled materials • Extensive use of retreaded tires • Paperless DIAD used in 49 countries • Use of Hybrid, Natural gas, and Electric Vehicles

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