Trade forms the backbone of the world’s economies, spurring investment, job creation, economic growth, and raising standards of living.
Global trade is being increasingly disrupted as tariff tensions, political unpredictability, protectionist policies and regulatory uncertainty challenge established business models and trade relationships.
The resulting inefficiencies were challenging when the trade environment was stable. But in our increasingly volatile times with COVID-19, Brexit as well as trade and political tensions at both local and global levels, the stakes are far higher.
Now should be a breakthrough era for international trade, as technological advances are making new forms of business possible, built on a foundation of data and insight. EY professionals can help you build an integrated approach by:
- Shaping responses to changing global tariffs and trading relationships
- Reducing cost, risk and delays from your trade network
- Driving better insights through data
- Reimagining your supply chain operating model
- Leveraging technologies
EY Global Trade Updates
TradeWatch Global Insights
The Global Insights section of our latest TradeWatch publication covers a wide range of trade topics and developments from around the world. On the agenda of this Issue 3:
- Technical Committee on Customs Valuation approves new advisory opinions on ancillary charges
- The India-Australia Economic Cooperation and Trade Agreement — a long-awaited pathbreaker
- Blockchain and its potential role in the future of global trade
- Going with the data flow: things every business should know
TradeWatch Americas Insights
Under our Americas chapter, focus is on:
- Canada: Assessment and Revenue Management — Release 2 expected in October 2023
- Colombia: Constitutional Court invalidates the customs sanctioning and confiscation regime contained in the Customs Code
- Costa Rica: Business landscape, trade facilitation and amendments to General Customs Law
- US: Uyghur Forced Labor Prevention Act goes into force
- US: Implements new technology export controls on China
TradeWatch Asia-Pacific Insights
The Asia-Pacific chapter focuses on key issues, with the following articles:
- China: Customs updates for September 2022
- Japan: Updates on sanction measures
- Thailand: Five-year extension of Thai Customs’ One-Stop Service voluntary disclosure process
- Thailand: Incentives to promote the development of the battery electric vehicle sector
- Vietnam: Authorized Economic Operator regime
TradeWatch EMEIA Insights
Under the EMEIA chapter, authors discuss the impact on business of some key court rulings, including:
- Eastern Europe: Definition of exporter – VAT consequences
- Hamamatsu — a long journey about to end?
- Poland: Transfer pricing adjustments and their impact on VAT, excise and customs duties
- UK: Freeports — moving toward delivery
Companies import and export a wide range of materials and finished goods on a daily basis. Beyond the logistical and supply chain considerations for such movements, companies may incur additional costs for customs duties and fees at time of import. The use of US Foreign Trade Zones (FTZs) can help to mitigate those costs.
With an FTZ, goods may be admitted for storage, manipulation or manufacturing without triggering the payment of customs duty when the goods arrive in the US. Only when the goods are subsequently removed from the FTZ to enter US Commerce may the goods be subject to duties. Goods ultimately removed from the FTZ for re-export avoid duty payment altogether.
Based on the recent Annual Report of the Foreign-Trade Zones Board to the US Congress, there was $767b in inventory admitted into FTZs, and $111b in merchandise exported to foreign countries. In addition, the number of people employed in FTZs is sizable. The report noted that over 460,000 people are employed at 3,300 companies utilizing the FTZ program.
As demonstrated by these figures and the anticipated increased growth of international trade, the FTZs program is a strategic tool used by US manufacturers and distributors to reduce customs and supply chain costs, promote US competitiveness and generate additional US jobs.
We have a team of Foreign Trade Zone consultants with a deep understanding of the rules governing FTZs. We can help your business:
- Evaluate the potential benefit of an FTZ based on your unique supply chain structure
- Apply for and establish an FTZ by working with local jurisdictions, the FTZ Board and US Customs
- Conduct trade operations in a compliant and efficient manner by providing centralized, managed services that help you redeploy key resources, shifting their focus from repetitive, transactional activities to what matters most — creating value for the organization
- Leverage our EY Trade Connect modular trade technology platform including the FTZ inventory system module
- Navigate the regulatory and compliance requirements associated with operating an FTZ