Conférence regards croisés douanes-entreprises

Copyright © 2013 Momentive Performance Materials Inc. All rights reserved. CONFIDENTIAL

Conférence regards croisés douanes-entreprises Ambassade de France – La Haye - 27 Novembre 2014 Delphine Neveux - Regional Senior Manager – Global Trade Compliance EMEA

Copyright © 2012 Momentive Specialty Chemicals Inc. All rights reserved. CONFIDENTIAL

Leader mondial en produits chimiques et matériaux de spécialité

Chiffre d’affaires de 7,5 milliards

de dollars

10.000 collaborateurs

117 sites de production

20.000 clients

Technologies de pointe

Présence globale sur 3 continents


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Momentive Specialty

Chemicals 2010

Borden Chemicals

Phenolics & Forest products

business 2002

(PFPD) RSM /Eastman

Forest Products & Forma Business

2004 (ECRD/ PFPD)

Bakelite Epoxy &

Phenolics Business

2005 (ECRD/PFPD)

Rhodia Dispersion Business

2006 (ECRD)

Akzo Inks & Adhesives

Business 2006 (PPD)

Arkema

2008 (PFPD)

GE Momentive

Performance Materials

(Silicon & Quartz)

RPP/ Shell Epoxy business

2000 (ECRD)

Pourquoi un partenariat avec les Douanes?


Relationship with Dutch Customs

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Based on

– The legacy of Shell/ RPP & Customs Co-operation

– Momentive Global Policy to: • Comply with both the letter and spirit of all applicable trade laws, regulations and requirements; • Establish and implement procedures & practices to ensure compliance; • Cooperate with government agencies globally (including corporate social responsibilities) • Partner with trade authorities to achieve preferred trader status where appropriate. MOM – one of the first 19 companies being AEO certified in the Netherlands in 2008

– Transparency and Trust

– Mutual knowledge sharing – win/win opportunity


Momentive - Confidential

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GESTION DONEES DOUANIERES • HS code • ECCN Classification • Origin and preferential status • Net weight

GESTION DEDOUANEMENT • Control entries/ KPI(s) • Maximize duty savings •Records retention •Periodic reviews/audits

La construction de notre partenariat avec les Douanes NL

PROCEDURES & PROGRAMES AUDIT • Write streamlined procedures • Standardized internal controls • Develop & roll out cross functional trainings • Establish clear accountabilities

DEMATERIALISATION DU DEDOUANEMENT • Customs documents • E-Filing (import/export) • Preference calculation • Screening •Software & automation

PROCEDURES DOUANIERES

CENTRALISEES • Optimized NL/DE/FR

trade operations

2009

PROGRAMMES DE CONFORMITE • Supply chain security (AEO) •Export controls & licensing •Simplified customs operations

2011

2012

2013

2008


Une vision globale – une strategie regionale pour GTC EU

Global Approach and Vision – Ensures consistency and direction focus – GTC’s Vision, Mission, Values and Objectives (VMVOs) – Momentive’s current Trusted Trader Programs

GTC Regional Strategy

– Stay abreast of business changes & risks priorities – Adapt the strategy to new regulatory landscape requirements – Relate controls to the business risks (simple but effective)

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GTC Vision, Mission, Values and Objectives (VMVO)

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Trusted Trader Programs

Program Requirements Benefits What’s Needed

C-TPAT - Business partner selection criteria

- Documented security procedures - Physical access controls - Container, personnel and I/T

security

- Reduced Customs inspections - Front of line for inspections - FAST lane - Front of line after border disruption - Increased standing w/ CBP

- Currently Tier 2 - Evaluate cost and

benefits of progressing to Tier 3

AEO - Documented trade compliance processes

- Full supply chain security capability (like C-TPAT)

- Financial and I/T capabilities

- Recognition throughout EU - Front of line treatment - Expedited border processing and

cargo release - Bond waivers - Eligible for simplified procedures

- Regional strategy - Alignment to MASP

ISA - Must be in C-TPAT - Documented internal controls - Self-testing based on risk

assessment - Annual reporting to CBP

- Exempted from Focused Assessment audits

- Further reduction in cargo exams - Enhanced legal benefits if disclosure

must be made - National Account Manager assigned

to Momentive

- Currently only MPM - MSC should join ISA

PIP, CSA, FAST

Canadian programs similar to C-TPAT, AEO and ISA

Similar to C-TPAT, AEO and ISA

Feasibility study

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GTC EU Regional Development Plan

–Adapt the strategy to e-Customs 2020 –Use AEO as enabler to unlock the value of e-Customs 2020 –Act a Strategic Business Partner –Where possible and cost efficient: insource instead of outsource brokerage –Business Leadership Approval for AEO roll out in FR and DE

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AEO Aligns Companies with e-Customs 2020 Do we interpret correctly the on-going regulatory developments?

The only companies that will be eligible to receive the benefits of e-Customs 2020 are those that are AEO certified AEO members will be allowed to take advantage of technological developments in EU Customs administration

– Creates competitive advantage – Enable trade-related savings opportunities

Non-AEO companies will be forced to use old processes and tools - cannot leverage the new technologies to gain commercial advantage

– Slower clearance, more inspections and compliance audits, increased costs

Eventually when transition is complete, non-AEO companies will: – Be forced to outsource most import-export activity to expensive third parties who are

AEO certified. – Lose most trade optimization benefits


OEA – un levier pour gagner a l’international

– Policy objectives:

– Implement a common customs administration system for all EU member states:

• Multi-Annual Strategic Plan (MASP)

– Implement a common Customs Law for all EU member states (Union Customs Code or UCC)

– Improve EU’s border and cargo security

– Strengthen EU’s competitive position: • New tools and technologies • Simplified clearance procedures • Targeted risk assessments

Goal: create a pan-EU electronic trade customs environment

- Single Authorization Simplified Procedures (SASP) for all certified sites

• Preserve and expand trade programs • Faster clearances / reduced demurrage • Reduced or waived bank guarantees • Consolidated declarations

- “Single Window Program”: Centralized self-clearance for all of Momentive’s international shipments at AEO member sites in EU

• Centralized Import/Export clearance • Paperless environment • Savings on fees: broker / forwarder / carrier

/ documentation • Added availability of trade optimization

programs for more savings opportunities

- Enhanced Internal Controls • Superior risk mitigation from best practices

compliance processes

e-Customs 2020 is EU’s plan to modernize and standardize

Customs administration

Benefits for companies that Align with e-customs 2020

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Companies that align with e-Customs 2020 will realize: - Enhanced supply chain efficiency - Preserve and expand trade programs (productivity and cost avoidance) - Top quartile mitigation of trade risk


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GTC EU – current strategic developments

Examples of on-going GTC EU strategic developments to align with the Multi Annual Strategic Plan

1. Cross Border license as Authorized Exporter

SBE NL and all EU affiliates

2. Cross Border IPR (Duty Suspension License) • SBE NL and DE • Automation of IPR Reporting tool

3. SASP Netherlands/ Germany / France/ (Spain) • Cross Border Authorization as Authorized Consignor • Roll out of Duty Management System

4. Global Roll out RPS across legacies

• Streamline export controls screening process


2013 Global Duty Savings

NA: $49.5mm $8.7mm (Internal) $40.8mm (Customer)

EU: $72.2mm $66.6mm (Internal) $5.6mm (Customer)

APAC: TBD E&Y estimates: $7.9mm (Internal) $8.8mm (Customer) Untapped savings Requires validation

LATAM: TBD 2013 Savings Summary (LE):

$73.5mm cost avoidance- Momentive $1.8mm productivity- Momentive $46.4mm cost avoidance- Customers

GTC 2013 Optimization Savings LE = $121.7 Million All amounts USD

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AEO Regional Development Plan

Momentive Head Start on AEO

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• MSC NL site already fully AEO certified (C and S certs). NL and EU authorities have recognized our NL program

• MSC Phenolics sites in Germany are AEO-C certified as of Nov. 13: Letmathe / Duisburg / Frielendorf

• Our internal assessment template

can be used for our other sites • Our documented AEO processes can

be adapted for use at other sites

• Our knowledge can be shared across sites and businesses

Three Year Plan for AEO Extension 2013: •Consolidate AEO capabilities for Letmathe, Duisburg and Frielendorf •Pass revalidation of NL AEO program •Centralize export clearance for Stuttgart/DE and Ribecourt/FR at MOM NL 2014: •Apply for and obtain AEO status for Stuttgart DE and Ribecourt FR

– High volume import/export sites – Opportunity to exploit SASP

•Evaluate remaining EPCD EU sites for application •Evaluate SQD DE and NL sites for application

2015: •Consolidate AEO capabilities for Stuttgart and Ribecourt (pass DE and FR audits) •Obtain AEO status for candidate sites chosen in 2014 -or- Consolidate their AEO capabilities


Momentive - Confidential

15 Company Confidential

La contre-partie des facilitations: Momentive Risk Management

The common denominator for successful trade & customs compliance is: – a system of effective internal controls

Government expectations for internal control systems are set forth in:

– Federal Sentencing Guidelines for Organizations (General legal compliance) – COSO Framework SAS #78 (Imports) – BIS EMCP Framework (Exports) – Risks Management Framework (AEO)

Program elements common to each of these guidelines are:

– Management commitment and adequate resources – Policies and procedures – Risk assessment and program oversight – Training, communication and auditing – Corrective action COSO

Framework


What do we expect from

Dutch Customs?

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Qu’attendons nous des Douanes Neerlandaises?

Fluidite de notre chaine d’approvisionement Acces aux donnees douanieres pour une

meilleure maitrise des risques Dematerialisation > gains de productivite!

Accompagnement des entreprises a

l’international. Diversifier les outils d’acces et d’aide a l’ínformation.

– Relai avec les organizations prof – Interlocuteur Douanier Unique – Internet/fiches pratiques

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Qu’attendons nous des Douanes Neerlandaises?

Ne pas chercher la petite bete mais se

concentrer sur les risques reels plutot que les erreures formelles Adapter les controles douaniers/ OEA la

ou nos flux et risques le necessitent. Nous aider a integrer et maitriser nos

risques douaniers dans notre activite commerciale et nos procedures. Nous aider a evoluer notre metier dans la

gestion du risque douanier.


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Questions?

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