UPS Customs Brokerage explains the main provisions and implications of the WTO's TFA

1. WTO Trade Facilitation Agreement
February 14, 2017
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2. UPS®
Customs Brokerage Webinar 14 February 2017
WTO Trade Facilitation Agreement

3. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
WTO’s Trade Facilitation Agreement
• Host
• Greg Maddaleni, LCB
• Customs Brokerage Manager
Presenters
Changing the global trade landscape
• Panelist
• Norm Schenk, LCB
• Public Affairs Vice President
• Panelist
• Susan Zimmerman
• UPS Public Affairs
Global Borders Policy
• Panelist
• Ron Shepherd, LCB
• UPS Trade Management
Services Vice President

4. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
4
WTO Trade Facilitation Agreement
Agenda
Current trade environment
Why trade facilitation?
TFA agreement overview
Key provisions
Ratification and implementation
UPS Tradenomics
UPS Outreach

5. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
WTO’s Trade Facilitation Agreement - Discussion
Global developments
• According to the WTO, 2017 Trade growth revised
downwards: between 1.8% and 3.1%
• Previously forecast at 3.6%
• Trade openness is receding as trade regulation is on the rise
Source: World Bank national accounts data, and OECD
National Accounts data files
Source: Global Trade Alert, Adapted from IMF 2016b
30%
35%
40%
45%
50%
55%
60%
65%
1990 1995 2000 2005 2010 2015
Declining trade openness
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
1990 1995 2000 2005 2010 2015
Temporary trade barriers on the rise
Average of imports and exports of goods
and services(% of GDP) Share of total products

6. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and
other public sources and reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and
completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
$2.3B
antidumping/
countervailing
duties owed but
not collected
US Trade Developments
Renewed emphasis on compliance
• Penalties / payments up
• Customs and Border Protection (CBP) audit surveys
• Used where CBP sees a general trend
• CBP usage tripled in 2016 and expected to continue to grow
• Informed compliance letters packets
• Used where CBP sees a specific irregularity or anomaly
• Includes letter and DVD packet
Source: Clamp down on Reasonable Care, American Shipper, November 2016

7. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
US Trade Developments
The New Administration
• TPP withdrawal1
• T-TIP on hold2
• NAFTA renegotiation?3
• Preference towards bilateral trade agreements4
• New corporate tax proposal with trade related rules5
Source: 14 things to watch now that the U.S. has withdrawn from TPP trade deal, The Washington Post, January 27, 2017
2By scrapping TPP and TTIP, Trump has boosted American jobs in the short term – and destroyed them in the long term, The Independent, January 24, 2017
3Trump to Sign Executive Order on Plan to Renegotiate NAFTA With Mexico, Canada, CNBC, January 24, 2017
4TRUMP TO SEEK BILATERAL TRADE DEAL WITH JAPAN AFTER REJECTING MULTILATERAL TPP, Newsweek, January 26, 2017
5Adios NAFTA, Pisani & Roll, LLP

8. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
8
WTO – TFA Overview
A multinational agreement that improves the movement of goods globally
Transparency and
predictability
• Availability of
information,
including internet
publication and on
line query
Procedural
simplification and
streamlining
• Simplifies
documentary
requirements,
processing of
data, and
clearance
procedures
Coordination and
cooperation
• Policy and
documentary/
physical control
across various
border agencies
Source: tfafacility.org

9. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Key Benefits
• Reduction in trade costs (-14.5%)
• Economic expansion (+20 millions jobs)
• Reduced import processing and export processing time
• Up to 79%
• Greater standardization of trade processes globally
Source: Launch of the World Trade Report 2015, World Trade Organization, October 26, 2015; Moïsé, E. (2013), “The Costs and
Challenges of Implementing Trade Facilitation Measures”, OECD Trade Policy Papers, No. 157, OECD Publishing.

10. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Transparency and predictability
• Information availability
• Practical guides
• Fees and charges
• Publish new regulations in advance (with opportunity to comment)
• Notifications for commodity specific enhanced controls
• Advanced rulings
• Binding
• Appeals
• Rights to traders to obtain review and corrections
Source: tfafacility.org
Implications:
More predictable importing and exporting of goods for a trader

11. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Procedural simplification and streamlining
• Pre-arrival processing
• Temporary imports
• Release prior to entry submission
• Single window
Implications:
Streamlining is designed to shorten processing times
Source: tfafacility.org

12. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Procedural simplification and streamlining
• Authorized economic operator (AEO)
• Risk management
• De minimis
Implications:
Designations such as AEO can provide benefits for specific importers and
exporters
Source: tfafacility.org

13. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Coordination and cooperation
• Customs cooperation
• Sharing declaration information – member to member
• Border agency cooperation
• Facilitate cross agency and cross border trade
• Freedom of transit
• Regulations and formalities reduced or eliminated
Implications:
Increased cooperation is intended to reduce delays but also improve compliance
enforcement
Source: tfafacility.org

14. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Ratification and implementation
• 110 Countries required to ratify
• 108 countries have ratified so far
• Developed, developing and least developed country designations
• Categories A, B and C provisions (for developing and least developed countries)
• Category A: to be implemented by the time the agreement enters into force
• Category B: to be implemented after a transitional period following “entry into force”
• Category C: require the acquisition of assistance and support for capacity building
Source: tfafacility.org
Susie

15. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
• Impact of Advance Ruling and Appeal/Review articles
• Disciplines on Fees and Charges (Penalties)
• Border Agency Cooperation
• Movement of Import Goods under Customs Control (in-bond)
• Formalities connected with importation, exportation, and transit
• Customs Cooperation

16. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
• Release and Clearance of Goods
– Pre-arrival processing
– Electronic payment
– Separation of release from payment
– Publication of release times
– Authorized operators
– Expedited shipments & de minimis
– Perishable Goods

17. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and
reflects prevailing conditions and our opinions and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public
sources or which was otherwise reviewed by us. SCS accepts no liability for the content of this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Global Alliance for Trade Facilitation (GATF) and UPS
Overarching aim of accelerating ambitious trade facilitation
reforms
• GATF sponsored by the governments of Australia, Canada, Germany, the United
Kingdom and the United States
• Technical and financial assistance
• Benchmarking and evaluation based on established business metrics.
• Mobilizing public-private partnerships to drive change
• Engaging local businesses and associations
• UPS Public Affair’s longstanding role to promoting free trade globally
• How can UPS assist you in navigating particular countries or specific projects?
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18. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Questions and answers
UPS Trade Management Services – when you join forces with an expert
Consulting services Managed services
Compliance consulting Process management
Trade consulting Broker/forwarder management
Tariff engineering FTA (free trade agreement) management
Security initiatives consulting Post-entry management
FTA feasibility evaluations Data management
Classification management
Import/export license management
Denied-party screening management

19. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
WTO TFA
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• WTO Trade Facilitation Agreement to provide opportunity in an otherwise uncertain trade environment
• Please consult the TFA Agreement and Implementation Overview
• Ask today upon checking out
• Inquire about your own WTO TFA priorities
• Inquire upon checkout
• Upcoming webinar:
• The New Post Entry (March 29, 2017)
The material and information contained in this document is for general information purposes only. UPS does not act as a customs law adviser. You
should not rely upon this material or information as a basis for making any business, legal or any other decisions. UPS makes no representations or warranties
of any kind, express or implied about the completeness, accuracy, reliability, suitability or availability with respect to the material and information contained in
this document for any purpose. UPS will not be liable for any false, inaccurate, inappropriate or incomplete information presented in the document.

20. Thank you
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21. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS. The information provided here is based on information obtained from government, industry, and other public sources and reflects prevailing conditions and our opinions
and views as of this date, all of which are accordingly subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us. SCS accepts no liability for the content of
this presentation, or for the consequences of any actions taken on the basis of the information provided.
© 2016 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
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Ratification
ENTRYINTOFORCE(EIF)
2/3MembersoftheWTOaccepttheProtocolofAmendmentandsubmitittotheWTO.
Within 1 Year Within 2 Years Within 3 Years Within 4 Years Within 5 Years/6th Year
WTO
Receiving Protocols of Amendment
from Members
Launching the WTO’s Committee
on Trade Facilitation (CTF)
Collecting Members’ notifications of definitive dates of implementation for
Category B and C commitments;
Extending implementation deadlines for Members notifying of difficulties
(ongoing until full implementation)
Conducting reviews of operation and
implementation of the TFA
Developed
Countries
Depositing accepted Protocols of
Amendment to the WTO
Ensuring Implementation of all
provisions upon EIF
Providing Developing Countries with assistance for implementation of Category C
commitments;
Informing the Committee of progress
Providing LDCs with assistance for implementation of Category C
commitments;
Informing the Committee of progress
DevelopingCountries
Depositing accepted Protocols of
Amendment to the WTO
Notifying WTO of Category A
commitments, implemented by EIF;
Notifying WTO of indicative dates for
B & C commitments;
Informing WTO of assistance
requested for C commitments
Notifying the WTO of definitive
dates for implementing Category B
commitments;
Informing Committee on Trade
Facilitation of arrangements for
Category C assistance
Ongoing reporting to Committee on Trade Facilitation of progress on assistance;
Notifying the WTO of definitive dates for Category C implementation
Least-Developed
Countries(LDCs)
Depositing accepted Protocols of
Amendment to the WTO
Notifying the WTO of Category A
commitments (to be implemented
one year after EIF);
Notifying WTO of Category B
commitments and may submit
indicative dates for implementation;
notifying WTO of Category C
commitments
Informing the
Committee of
assistance required
for implementation of
Category C
commitments
Confirming Category B
commitments and
definitive implementation
dates (unless extension
requested of the
Committee)
Informing the
Committee of agreed
assistance for
implementation of
Category C
commitments and
submit indicative dates
for implementation
Reporting to the Committee of progress
on assistance and support;
Notifying of definitive dates for
implementing Category C commitments
(unless extension requested of the
Committee)