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Chamber of Commerce Rotterdam - Eurochambres Academy

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How to enjoy Simplification,<br />

and benefit our Specialism<br />

Meeting: EUROCHAMBRES trade forum 2005<br />

Location: Menthon Saint Bernard<br />

Date: April 22 nd 2005<br />

Presentation by: Th. van de Velde


WELCOME<br />

Theo van de Velde<br />

<strong>Chamber</strong> <strong>of</strong> <strong>Commerce</strong> <strong>Rotterdam</strong><br />

tvelde@rotterdam.kvk.nl<br />

Tel.: 06 136 538 96


About this presentation…<br />

1. Structure <strong>of</strong> <strong>Chamber</strong>s <strong>of</strong> <strong>Commerce</strong> in The Netherlands<br />

2. Core competents <strong>of</strong> the <strong>Rotterdam</strong> Ch <strong>of</strong> C.<br />

3. Quality and training programs concerning<br />

Exportdocuments<br />

4. Costs <strong>of</strong> Documents<br />

5. Procedures<br />

6. Practice <strong>of</strong> simplicity<br />

7. Examples <strong>of</strong> conflicting simplification rules<br />

8. Future<br />

9. Helpdesk <strong>Eurochambres</strong><br />

10. Help me ! !


The Netherlands - Facts & Figures<br />

‣ 42.000 km 2<br />

‣ Population: 15,5 million<br />

‣ Labour force: 6,6 million<br />

‣ Approx. 500,000 businesses<br />

‣ GNP: € 314 billion


Dutch <strong>Chamber</strong>s <strong>of</strong> <strong>Commerce</strong><br />

facts and figures<br />

Site www.kvk.nl => 1 mio visitors per month<br />

Pageviews => 6 mio per month<br />

Electronic newsletters => 40,000 subscribers<br />

Digital brochures => 70,000 per year<br />

Visitors at our <strong>of</strong>fices => 375,000 per year<br />

Seminars => 35,000 participants per year<br />

Magazine => 700,000 per month<br />

(largest B2B-medium in Holland)<br />

Certificates <strong>of</strong> origin =><br />

500,000 per year


Mission Statement<br />

We <strong>of</strong>fer companies, especially SME’s, "boundless"<br />

assistance with regard to their international<br />

ambitions by means <strong>of</strong>:<br />

• pr<strong>of</strong>essional support<br />

• state-<strong>of</strong>-the-art products and services<br />

• (inter)national networks<br />

taking into consideration<br />

• regional as well as global economic developments<br />

• business environment


Strong market position<br />

Dutch <strong>Chamber</strong>s <strong>of</strong> <strong>Commerce</strong><br />

• Total awareness: 92%<br />

• 54% have used the <strong>Chamber</strong> in<br />

connection with International Trade<br />

• 80% are (very) satisfied with the products<br />

and services <strong>of</strong>fered


Portals to business<br />

1. B-to-B: the Traderegister<br />

2. Portal to businessinformation<br />

3. Setting up shop<br />

4. Gateway to international business<br />

5. Lobby to public authorities and vice versa


Portal to business 4<br />

‘Gateway to international business’:<br />

• use relations <strong>of</strong> ethnic entrepreneurs with countries <strong>of</strong><br />

origin (Turkey, Morocco, Surinam, Cape Verde and Dutch<br />

Antilles) in a positive manner;<br />

• give information on threats and opportunities <strong>of</strong><br />

outsourcing in a pro-active way;<br />

• orientation on the new neighbours <strong>of</strong> the EU (Ukraine,<br />

Russia, Romania, Turkey, etc.)<br />

• <strong>Rotterdam</strong> Trade Dinner & Dutch Trade Board


Global<br />

Network<br />

• Embassies / Consulates<br />

• Local governments<br />

• Branch organisations<br />

• Enterprises<br />

• Financial institutions<br />

• Consultants


EXPORTDOCUMENTS & TRADE POLICY<br />

• Advice on trade & customs-regulations:<br />

• Import/export/transit prescriptions<br />

• Import duties (EU and other countries)<br />

• Customs law<br />

• Tariff-contingency<br />

• Trade Agreements<br />

• Issuing authority:<br />

• Certificates <strong>of</strong> Origin<br />

• Declarations and legalisation<br />

• Carnets ATA<br />

• Involved issue Eur-1 certificates cates


Issuing tasks<br />

• Certificates <strong>of</strong> origin<br />

• Movement certificates<br />

• Legalisation<br />

• Declarations<br />

• Carnets ATA


Quality and training programs<br />

• courses<br />

• instructions<br />

• information letters<br />

• audits<br />

• helpdesk (national)


Costs for issuing documents<br />

<strong>Chamber</strong> <strong>of</strong> <strong>Commerce</strong> <strong>Rotterdam</strong><br />

Certificate <strong>of</strong><br />

Origin<br />

€ 15,-- On line raises the<br />

cost<br />

EUR-1 € 15,-- Only in<br />

The Netherlands<br />

Legalisation € 10,-- * Against cost price<br />

ATA<br />

€175,--*Increased with<br />

CWF, insurance,<br />

papercosts<br />

Shall we compare costs and services


BUDGET RECEIPT<br />

13%<br />

budget: > € 23 million<br />

26%<br />

61%<br />

Contribution registers Products/Services Other income


Rules <strong>of</strong> origin<br />

Instrument for trade policy<br />

Essential for the customs


Rules <strong>of</strong> origin are tools<br />

to limit or encourage<br />

international trade.


Rules <strong>of</strong> origin<br />

Used by governments to regulate trade<br />

flows:<br />

• I do not want your products<br />

• I just allow a few<br />

• You can not get mine<br />

• You pay a premium price<br />

• You get a reduction


World trade is changing rapidly<br />

One would change from<br />

production country<br />

when a slight change<br />

in circumstances occurs.


How to symplify the origin rules<br />

Non preferential<br />

Preferential<br />

• Uruguay round<br />

• Harmonisation<br />

proposals<br />

• Green paper<br />

• GSP<br />

• New agreements<br />

• Mediterranean<br />

agreements


Current and future origin rules<br />

are mainly understood by experts<br />

working in this minefield on a daily basis


Non preferential rules<br />

as stated in the Community Customs Code,<br />

EG regulation 2913/92 art. 24<br />

…underwent the last, substantial, economically<br />

justified processing or working<br />

in an undertaking equipped for that purpose<br />

and resulting in the manufacture <strong>of</strong> a new<br />

product or representing an important stage <strong>of</strong><br />

manufacture.<br />

gives a broad interpretation! !


Change <strong>of</strong> tariff-heading<br />

01.05<br />

02.07<br />

15.01<br />

16.02<br />

21.04<br />

Live poultry<br />

Meat <strong>of</strong> poultry<br />

Poultry fat<br />

Other prepared<br />

meat <strong>of</strong> poultry<br />

Soup and broths


Preferential rules<br />

are based on the HS code and are<br />

established in the several protocols<br />

– Dissimilarities in protocols<br />

– Cumulation rules<br />

– Tolerances<br />

– Footnotes (textiles)<br />

What is the involvement <strong>of</strong> your <strong>Chamber</strong> <strong>of</strong><br />

<strong>Commerce</strong>


MASHREK<br />

Syrië<br />

Egypte<br />

Jordanië<br />

Libanon<br />

MAGHREB<br />

Marokko<br />

Tunesië<br />

Algerije<br />

Albanië<br />

Macedonië<br />

Kroatië<br />

Bosnië<br />

Herzegovina<br />

Servië en Montenegro<br />

ACS<br />

LGO<br />

Faeröer<br />

Israël<br />

Ceuta<br />

Melilla<br />

Westelijke Jordaanoever<br />

en Gazastrook<br />

EER<br />

Zwitserland<br />

Roemenië<br />

Bulgarije<br />

Turkije<br />

Zuid Afrika<br />

Mexico<br />

Chili<br />

APS<br />

Donor Country Content


CUMULATION


Examples<br />

<strong>of</strong><br />

Products with origin rules that are not easy to simplify<br />

Heading Product Non-pref Preferential<br />

2203<br />

2204<br />

Beer<br />

wine<br />

Art.24<br />

List 11<br />

Change heading<br />

Origin <strong>of</strong> the grapes<br />

0402.21 Milkpowder National<br />

Blending<br />

rules<br />

All products <strong>of</strong><br />

chapter 04<br />

Wholly obtained<br />

2309 Animal feed Art.24 Grain, meat, milk,<br />

melasse, (fish) <strong>of</strong><br />

origin


SHOES<br />

6401 - 4 Reconditioned<br />

engines<br />

How about these<br />

products<br />

Textiles<br />

Ch 50 - 63<br />

Industrial products<br />

involved with cumulation<br />

Or<br />

Allocation rules<br />

Vegetable oils<br />

1507-1515


Time for a break ……………


FUTURE:<br />

Three tendencies<br />

• Development international trade policy<br />

• Globalisation<br />

• Digitalisation


GSP: “Everything but arms”<br />

• Few agricultural exceptions<br />

• Major break in policy<br />

• Minor impact<br />

- Trade volume<br />

- Recent history


Globalisation<br />

• The era <strong>of</strong> multinational products<br />

- determination <strong>of</strong> origin: not easy anymore<br />

• Multi-country sourcing<br />

- stability <strong>of</strong> the value added criterium<br />

for example:<br />

Assembly<br />

<strong>of</strong> Anchors!<br />

• Trade is rather complicated<br />

- responsability <strong>of</strong> policy makers<br />

- responsability <strong>of</strong> traders


Free World Trade<br />

- Abolishing tariffs<br />

- Non-tariff barriers


Where are we<br />

For non-preferential origin, CCI´s are the<br />

• competent<br />

• acknowledged<br />

• and accepted authorities<br />

But we are still living in a paper-based world!


The new situation<br />

• From the paper-based world<br />

to electronic commerce<br />

• Think European!<br />

Electronic certificates<br />

are a logistic solution !<br />

It does not simplify<br />

procedures itself.<br />

• Change <strong>of</strong> the rules <strong>of</strong> origin


The technical aspects<br />

• Security standards are different in the<br />

European countries<br />

• CCI´s have to act or react<br />

according to their national law


Think European!<br />

Imagine the addressee <strong>of</strong> a C/O:<br />

He expects a European, not a national<br />

document


New rules <strong>of</strong> origin<br />

New rules do not mean new<br />

authorities to decide on<br />

New harmonized rules mean<br />

broader acknowledgement


European standards<br />

• ... set up by the European <strong>Chamber</strong>s<br />

(= EUROCHAMBRES)<br />

• ... acknowledged and recognized by<br />

European authorities<br />

(= European Commission)<br />

• ... and used by each and every<br />

<strong>Chamber</strong> in the EU.


Import duties<br />

• Uruguay Round: lowering duties<br />

• Erosion <strong>of</strong> preferences<br />

• Cost-benefit <strong>of</strong> a bureaucratic system<br />

• Defensive or <strong>of</strong>fensive rules <strong>of</strong> origin <br />

• Equal treatment<br />

• Decreasing import duties: other trade bariers


Responsebility Exporter<br />

• Expected knowledge Exporter<br />

• Administration<br />

• Reciprocal Assistance<br />

- Pref / Non Pref


Helpdesk <strong>Eurochambres</strong>


Thank you for your attention

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