With Brexit under a year away, what does a trader need to know, whether located in the UK, in Europe, the U.S. or elsewhere? This webinar will dig into the reality as it continues to emerge and inform what is most important to an importer or exporter in order to able to address it. UPS Customs Brokerage, Import, Export, Trade, Trade Regulations, Duties, Customs Clearance, UPS TMS, STTAS

1. 2018 UPS® Customs Brokerage Webinar Series
WHAT TO EXPECT WITH BREXIT ONE-YEAR
AWAY?

2. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future relationship
External border
Customs scenario
AGENDA
2
How we can help
NCBFAA: CCS/CES continuing education
credits available; inquire upon check out

3. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
UPS AND BREXIT
3
• UPS is a logistics company with 46 000 employees in Europe that moves shipments daily between the
EU27 Member States and the UK on behalf of business customers.
• Our customers operate in a time sensitive industry either by design, customer preference, or nature of the
industry (healthcare and automotive for example).
• Small and Medium-sized Enterprises (SMEs), which don’t have the capacity or expertise for logistics in-
house, make up a large part of our customer base in Europe.
• The withdrawal of the United Kingdom (UK) from the European Union (EU) will have an impact on UPS’s
current operations and how we deliver services to our customers.
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

4. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
BREXIT BUILDING BLOCKS
PIECES OF THE PUZZLE
4
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help
December Agreement
Draft
Withdrawal
Agreement
Future Relationship Ratification by the
Parliaments
ü Agreement on citizens,
ü Methodology for exit bill,
ü Principles-based
agreement on borders
ü Status quo until
31/12/2020
ü Working towards a
balanced, ambitious and
wide ranging free trade
agreement
Trade
Agreement
(Mixed DCFTA)
Trade Agreement
(Trade Only)
Withdrawal
Agreement
European Parliament
UK Parliaments
House of Commons
House of Lords
EU 27 National
Parliaments
EU27 Regional
Parliaments
Scottish
Parliament
N. Irish
Parliament
Welsh
Parliament
Draft
Withdrawal
Agreement
Future Relationship
Ratification by the
Parliaments

5. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
BREXIT BUILDING BLOCKS
TRANSITION DEAL
5
Solution on
Irish border
Agreement
on
everything
c
Ratified by
UK and EU
Parliamentsc
Yes
Yes
No
No
No
March 30th, 2019January 1st, 2021
Yes
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

6. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
FUTURE RELATIONSHIP
6
WHAT KIND OF RELATIONSHIP DOES THE UK WANT
UK leaves the EU
UK red lines:
-No European Court of
Justice jurisdiction
-No free movement
-No substantial
financial contribution
- Regulatory
autonomy
UK red lines:
-No free
movement
-No substantial
financial
contribution
- Regulatory
autonomy
UK red lines:
-No substantial
financial
contribution
- Regulatory
autonomy
UK red lines:
-Independent
trade policy
Future relationship No deal
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

7. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
EXTERNAL BORDER
7
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help
Access to Single Market
(Norway)
Access to Single Market
(Switzerland)
In a Customs Union with the EU
(Turkey)
Customs
Documents
Tariffs Rules of Origin
In a Free Trade Agreement
(Canada)
Barriers to
Trade
Safety & Security
No Deal – third country under
WTO (China)
In the Single Market in EU

8. OBLIGATIONS “NO DEAL” SCENARIO BRINGS
CUSTOMS PROCEDURES REQUIRE THE IMPORTER/EXPORTER TO HAVE…
Capacity
and
resources
Compliance
Longer
transit
time
CUSTOMS
Knowledge
Sufficient
profit
margins
11
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

9. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
OBLIGATIONS “NO DEAL” SCENARIO BRINGS
10
CUSTOMS AGENCY ON EACH SIDE MUST HAVE AT LEAST THE MEANS OF
• Enabling advance declarations of goods crossing
• A system to allow for advanced, intelligent risk management
• Registering details of each border crossing of declared goods
• Communicating with destination country - the freight forwarder, import, exporter
• Granting approval for movement for and production of necessary documentation
• Checking correct documentation is held as border is crossed and that it relates to
goods carried
• For goods in transit, checking that the seal is intact
• Checking the consignment matches the declaration
• Testing the goods meets required standards
• Involving relevant agencies in assessing fitness to exit/enter (e.g. veterinary)
• Holding cargo until duties/VAT are paid or seizing it
• Communicating and coordinating action with agencies on other side of border
Capital
Systems
Resources
Knowledge
Compliance
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

10. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
UK GOV POSITION: TWO SCENARIOS
11
• Continued waiver from the requirement to
submit entry and exit summary declarations
• Membership of the Common Transit Convention
• Negotiating mutual recognition of Authorized
Economic Operators (AEOs)
• Unilateral measures, primarily in respect of
imports, for example: simplifications for business,
such as self-assessment to allow traders to
calculate their own customs duties and aggregate
their customs declarations;
A highly streamlined customs
arrangement between the UK and the EU
A new customs partnership with the EU
• Aligning the approach to the customs border in a way that
removes the need for a UK-EU customs border.
• One potential approach would involve the UK mirroring
the EU’s requirements for imports from the rest of the world
where their final destination is the EU.
• “This is of course unprecedented as an approach and
could be challenging to implement and we will look to
explore the principles of this with business and the EU”.
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

11. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
OTHER CONSIDERATIONS
§ A contingency scenario will change the way on how tax is collected on goods sent as small parcels. It would not be appropriate to
extend the current rules for low value parcels from non-EU countries to include parcels sent from the EU.
§ Due to the EU’s geographical proximity to the UK, allowing parcels valued £15 or less to be sent from the EU without VAT being
payable would potentially undermine the UK high street in the same way as low value parcels sent from the Channel Islands did
before the rules were changed in 2012
§ Applying the current rules for parcels sent from non-EU countries to all parcels would also increase the volume of parcels on which
Royal Mail and fast parcel operators have to collect tax, and more UK consumers would have to pay tax when their goods are
delivered.
§ Instead, the UK is exploring alternative collection mechanisms, including technology-based solutions, to help collect the taxes due on
parcels valued below £135 from the business selling the goods to minimise consumer burdens when the parcel is delivered.
12
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

12. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
NOTICE TO STAKEHOLDERS
WITHDRAWAL OF THE UK AND EU RULES IN THE FIELD OF CUSTOMS AND INDIRECT TAXATION
§ Goods which are brought into the customs territory of the EU from the United Kingdom or are to be taken out of that territory for
transport to the United Kingdom, are subject to customs supervision and may be subject to customs controls. This implies inter alia
that customs formalities apply, declarations have to be lodged and customs authorities may require guarantees for potential or
existing customs debts.
§ Goods which are brought into the customs territory of the EU from the United Kingdom are subject to the tariff and statistical
nomenclature and on the Common Customs Tariff. This implies the application of the relevant customs duties.
§ Certain goods which enter the EU from the United Kingdom or are leaving the EU to the United Kingdom are subject to prohibitions or
restrictions on grounds of public policy or public security, the protection of health and life of humans, animals or plants, or the
protection of national treasures.
§ Authorisations granting the status of Authorised Economic Operator (AEO) and other authorisations for customs simplifications, issued
by the customs authorities of the United Kingdom will no longer be valid in the customs territory of the Union.
§ Goods originating in the United Kingdom that are incorporated in goods exported from the EU to third countries will no longer qualify
as "EU content" for the purpose of the EU's Common Commercial Policy. This affects the ability of EU exporters to cumulate with
goods originating in the United Kingdom and may affect the applicability of preferential tariffs agreed by the Union with third
countries.
13
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

13. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
GETTING READY FOR THE NEW CUSTOMS DECLARATION SYSTEM IN UK
14
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help
Completed
Planned
TT1
test limited to 5
specific software
houses
TT3
a wider scope of
functionality –
introduction of
duty calculations
TT2
test with all
software houses
TT6
Final testing
Staged
Roll-out
through until
January 2019
Complete
migration
all significant
CHIEF users
March 2019
• UK is replacing ageing computerized customs declaration system CHIEF with CDS (Customs Declaration Service)
• CDS was originally designed to manage around 100m each year but will have to cope with an estimated 250m once the UK leaves
• CHIEF will continue to run during this time to aid the transition.
When will I need to start using CDS?
July 2018 Aug 2018
Ongoing

14. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
WHAT DOES IT MEAN FOR A COMPANY WITHIN THE UK/EU 27?
EXTERNAL BORDER
• No more access to Single
Market and EU Customs Union
• Customs declarations
between the EU 27 & the UK
• Trade, veterinary,
phytosanitary and other
restrictions and controls
imposed by Other
Governmental Agencies
TRADE BARRIERS
LONGER LIFECYCLE OF
SHIPMENTS
OTHER REQUIREMENTS
• There will be two
different customs Tariffs
• Customs duties between
the EU 27 and the UK will be
introduced
• Preferential and economic
origin will become relevant
• Customs Warehouses
• Authorisations
• Bill of Discharge
• Guarantees
• Export formalities in UK
q Exit summary declaration
q Export Declaration
• Import formalities in EU27
q Entry summary declaration
q Presentation
q Temporary Storage
q Import declarations or NCTS
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

15. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
COST IMPACT OF BREXIT ON TRADE
16
COMPANIES WILL FACE SIGNIFICANT EXPENSES OCCURRING FROM TARIFF AND
NON-TARIFF BARRIERS
• High compliance measures to
ensure protection of the
health and safety of patient
• CE Marking
• Labelling Requirements
• Registration and notification
requirements
• Competent authorities
€42(between €40 - €45)
COST INCREASE OF
Medical device
Origin Finland
Tariff#9018191000
• Technical requirements
• Safety standards
• A type-approval procedure
for compliance
• Overall, more complex rules
of origin for automotive
sector
€17(between €9 - €34)
COST INCREASE OF
Front Passenger Airbag
Origin Germany
Tariff#8708959910
• The REACH (Appointment of
Competent Authorities)
• Dangerous Substances and
Preparations (Safety)
Regulations
• Chemicals (Hazard Information
and Packaging for Supply)
Regulations
€28(between €10 - €40)
COST INCREASE OF
Medicine Hydroxyquinoline
Origin Belgium
Tariff#2933499070
• Labelling requirements
• Product standards
• Safety regulations
• Language requirements on
item text
• Additional requirements from
Food Contact Materials Unit
€41(between €29 - €55)
COST INCREASE OF
Juicer, Kitchen Appliance
Origin Italy
Tariff#8509400000
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help
Cost impact scenarios of non-tariff barriers for different industries occurring from potential new customs requirements
! Not the additional cost of carrier but customs requirements

16. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help
17
UPS PROPOSAL FOR THE CUSTOMS CHAPTER
OUR ADVOCACY
Security Standards
• Mutual recognition of
Authorised Economic
Operator (AEO) status;
• Complete waiver of safety
and security information,
similar to current EU-
Switzerland and EU-
Norway relationship;
Mutual data recognition
• Identical data set requirements
for customs declarations in UK
and EU;
• Acceptance of the export
declaration in the EU as the
import declaration in the UK,
and vice-versa
• Acceptance EU customs
authorities of UK customs
declarations, releasing the
goods and informing UK
customs, and vice versa
• Advance electronic submission
and processing of import
documentation and other
information, including
manifests, before physical
arrival of goods;
• Expedited customs procedures
for express delivery shipments;
De minimis
• Shipments with an intrinsic
value below the de
minimis threshold should
be released based on a
limited data set
• Increase of 'de minimis' to
800 Euro
Others
• Self-assessment of goods
• Transparent and non-
discriminatory fees,
charges, and customs
procedures;
• Advance rulings relating to
binding tariff information, or
decisions relating to binding
origin information;
• Deferred tax and duties
payments, with payment at
quarterly intervals or longer;
• Simplified rules of origin
and cumulation;

17. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
ü DG Taxud
ü Art. 50 Task Force
ü Trade Contact Group
ü Permanent Representatives
ü European Parliament
ü Director Generals of Customs
ü Ministers of Finance
ü House of Commons
ü House of Lords
ü UK government
ü HMRC
UPS’ ROADMAP TO BREXIT
18
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

18. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
Network
Changes
Building
Changes
Resources Training IT
Upgrades
Customer
Communications
Customs
Readiness
UPS’ ROADMAP TO BREXIT
19
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

19. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
WHAT DOES IT MEAN FOR A COMPANY WITHIN THE UK/EU 27?
20
01
02
03
06
05
Adjust merchandise
management and inventory
control systems
Customs records and customs
audits
Guarantees for customs duties and
taxes
Buying IT software for
communicating and storing
customs data using customs
service providers
Registering as economic operator
(EORI) and possibly as authorized
economic operator (AEO) and
registered exporter (REX)
Training staff on customs and
external trade rules 04
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

20. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
UPS ACQUIRES SANDLER & TRAVIS TRADE ADVISORY SERVICES (STTAS)
STTAS’ 750 TRADE PROFESSIONALS PROVIDE SERVICES IN ASIA, EUROPE, THE MIDDLE EAST, NORTH AMERICA AND SOUTH AMERICA AND HELP
CLIENTS COMPLY WITH THE EVER-CHANGING AND COMPLEX RULES, REGULATIONS AND LAWS COVERING INTERNATIONAL
• WIDER PORTFOLIO OF SERVICES (SANDLER & TRAVIS TRADE ADVISORY SERVICES AND UPS TRADE MANAGEMENT SERVICES)
• EVEN MORE POWERFUL SET OF SOLUTIONS
• MAXIMIZE CUSTOMERS’ TRADE INVESTMENTS
• MINIMIZE COMPLEXITY, TIME AND COST THROUGHOUT THEIR INTERNATIONAL TRADE OPERATIONS.”
21
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

21. Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS. For informational purposes only; this document does not constitute legal advice.
© 2017 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.
HOW WE CAN HELP
22
• Global harmonized tariff schedule (HTS) classification
• Export Control Number classification
• Quality review
• Classification’s opinions
• Compliance Audits & Reviews
o Pre entry audit (BPO & BFM)
o Post entry audit / compliance review
o Broker invoice audit
o Special programs monitoring
• Migration support
• Free Trade Agreement (FTA) qualification
• Data solicitation and verification
• Country of origin determination
• Conflict minerals compliance
• Inward and outward licensing (IPR, OPR, OGA, EX)
• License management
• Restricted party screening
• Embargo and economic sanctions compliance (e.g. RCIS)
CLASSIFICATION
BROKER
MANAGEMENT
ORIGIN
LICENSING and
RESTRICTIONS
UPS & Brexit
Our advocacy
UPS’ roadmap to Brexit
What can Economic Operators do?
High risk, high impact
Building blocks
The Future
relationship
External border
Customs scenario
How we can help

22. Thank you
Consult UPS for its Brokerage and TMS Services
Laetitia Giroud-Piffoz
lgiroudpiffoz@ups.com