Workshop to Identify Factors affecting Import and Export Clearance Processes

made by Micro, Small and Medium Enterprises (MSMEs)

Lima, Peru23 - 25 October 2017

APEC Sub-Committee on Customs ProceduresOctober 2017

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APEC Project: CTI 24 2016 (SCCP) – Workshop to identify factors affecting Import and Export Clearance Processes made by MSMEs

Produced by:

The National Superintendency of Customs and Tax Administration of the Republic of Peru

Authors:Patricia Su, Cintia Gómez and Branco Pacheco, Division of International Customs Agreements, National Intendency of Customs Development and Innovation

Rita Caballero, Project Overseer

This Paper has been produced for:Asia-Pacific Economic Cooperation Secretariat35 Heng Mui Keng TerraceSingapore 119616Tel: (65) 68919 600Fax: (65) 68919 690Email: info@apec.org Website: www.apec.org

© 2018 APEC SecretariatAPEC#

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CONTENTS

1. Executive Summary 04

2. Introduction 04

3. Workshop 05

3.1 Session 1: Outcomes of the Questionnaire completed by APEC economies

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3.2 Session 2: Factors that promote the internationalization of the MSMEs

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3.3 Session 3: Perspectives on the factors affecting the Internationalization of MSMEs

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3.4 Session 4: Tools that contribute to the internationalization of MSMEs

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3.5 Conclusions of Workgroups 20

4. Conclusions 23

APPENDIX 1: Welcome and Opening Remarks 27

APPENDIX 2: Outcomes of MSMEs Questionnaire 29

APPENDIX 3: Workshop Programme 50

APPENDIX 4: List of Participants 56

APPENDIX 5: Workshop Photos 60

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1. EXECUTIVE SUMMARY

The APEC Workshop entitled “Workshop to identify factors affecting Import and Export Clearance Processes made by MSMEs” was held on 23-25 October 2017 in Lima, Peru. This workshop was the principal activity of the APEC project “CTI 24 2016 (SCCP) – Workshop to identify factors affecting Import and Export Clearance Processes made by MSMEs”. Attendance included speakers, experts, officials, representatives from APEC Member Economies, namely: Chile, China, Japan, Korea, Malaysia, Mexico, The Philippines, Thailand and Viet Nam; international organizations and initiatives such as the World Bank, ICC-WTO and representatives from the Peruvian public and private sectors as well as representatives from the domestic MSMEs.

The workshop gave participants the opportunity to have information related to the factors that promote the internationalization of MSMEs, the perspectives on the factors that affect such internationalization, as well as some tools that contribute to it. It was also an opportunity to share experiences, exchange opinions and improve understanding of the problems faced by micro, small and medium enterprises for their growth and insertion in international trade.

The three-day workshop was attended by 10 speakers, 18 delegates of APEC economies, 1 representative of the World Bank, 1 representative of the Inter-American Development Bank, 2 representatives of private international organizations and 50 national participants (representatives of MSMEs, public and private national organizations and Peruvian customs). The content of the workshop (agenda, presentations and other related information) is available on the following website: http://www.apec.org

2. INTRODUCTION

Micro, small and medium enterprises (MSMEs) are a very important group in almost all APEC Economies, representing about 97% of all companies. In the APEC region they provide employment to more than half of the economically active population and contribute significantly to economic growth, to the extent that their participation ranges from 20 to 50% of GDP. Its development is undoubtedly a priority for APEC and is present in the various initiatives of this Forum, such as the Boracay Agenda, to globalize MSMEs and the Strategic Action Plan 2017 - 2020, approved by SME Ministers, which contains a roadmap whose objective is to address the critical factors that affect the growth of micro, small and medium enterprises in the APEC region.

Despite its substantial participation in the economy of the countries, according to the World Trade Report of the WTO, the participation of SMEs in trade is usually low due to their lower productivity in relation to large companies, caused by lack of specialized knowledge, difficulties in accessing financing, informality or their inability to take advantage of economies of scale. According to this report, the internationalization of SMEs helps them to acquire knowledge, to develop themselves, to exploit economies of scale; that is, to increase their productivity and their probability of survival by diversifying their markets.

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The APEC Project "Workshop to identify factors affecting Import and Export Clearance Processes made by MSMEs" had as its main objective to focus on the import and export processes carried out by the MSMEs in order to identify the factors that generate higher costs and time, as well as identifying specific customs legislations for MSMEs in the APEC economies. To this end, a QUESTIONNAIRE was circulated in the SCCP, which was the first deliverable of the project and would be the main source for preparing the workshop's agenda items while aiming at the identification of factors within the supply chain that will affect their insertion in international trade.

Thus the structure of the agenda for the WORKSHOP (second project deliverable) was divided into four sessions: the first, to inform the results of the questionnaire circulated in the SCCP; the second to refer the factors that promote the internationalization of MSMEs; the third, regarding the perspectives on the factors that affect said internationalization; and the last, on the tools that contribute to its growth and insertion in international trade.

As indicated in the APEC Project Proposal, one of the achievements that the project hoped to accomplish was to increase the participants' knowledge about legal treatments for MSMEs in the Asia-Pacific Region; and based on the knowledge acquired, motivate the interest of the participants to promote improvements in the processes of their economies, for the benefit of MSMEs.

This report consolidates the information obtained in the QUESTIONNAIRE, as well as the main topics developed in the WORKSHOP and will show, as CONCLUSIONS, the factors identified that affect the internationalization of MSMEs based on the topics discussed, the panel discussions and the evaluation made on the last day of the event by the working groups. It would also be advisable to further evaluate the possibility to engage in studying one of the factors that facilitate the growth of MSMEs in order to prepare an implementation plan.

3. WORKSHOP3.1. Session 1: Outcomes of the Questionnaire completed by the SCCP

In order to have an overview of the legal treatment for MSMEs in the import and export processes in the APEC economies, a QUESTIONNAIRE consisting of 21 questions was prepared, which was previously circulated in the SCCP for evaluation and suggestions. This questionnaire was answered by 15 of the 21 economies of the SCCP and the report with the answers to the 21 questions can be found attached, under the name "Questionnaire MSMEs WS SCCP 2017- Outcomes". A summary of the main outcomes obtained from the answers given is also attached, called "Questionnaire MSMEs WS SCCP 2017- Summary of main Outcomes"

In the presentation on the outcomes of the questionnaire circulated in the SCCP, the answers to the questions that were more related to the objectives of the workshop or that contributed in some way to reach those objectives were shown.

Below are the conclusions derived from the answers given by the 15 APEC economies that answered the questionnaire and that were presented in this session:

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1. APEC economies have different criteria to qualify a company as MSMEs. The main criteria used are the number of workers, the volume of sales or volume of income, the amount of fixed assets and the initial capital. The responses showed that most of them use the criterion of the number of workers and the volume of sales to qualify a company as MSMEs.

2. Regarding the existence of a specific customs legislation for MSMEs and the type of special legal treatment granted, only one of the 15 economies indicated having differentiated legislation for these companies1. This is the case of Korea, whose benefits granted to MSMEs consist of the divided payment of taxes, extension of terms for their payment and other benefits granted depending on compliance with certain conditions, such as if the MSME is an AEO, or if It has a certain antiquity.

3. On the other hand, 10 out of the 15 economies that responded to the questionnaire indicated having differentiated legislation for MSMEs, referring to issues of a non-customs nature2. The answers given on the type of regulations were very diverse; however, in general terms, it is observed that these regulations refer to financing programs, tax benefits and support programs for MSMEs, among others.

4. Regarding the granting of tax benefits, 3 economies reported that they grant this type of benefit, in one case, for the export of originating goods (Chile), depending on the type of imported merchandise (Vietnam) and a system of grace for Payment of customs duties (Korea)3.

5. The questionnaire also identified good practices in relation to imports and exports of MSMEs, which consist of4:

- No requirement for a customs broker for imports under USD 1,000 and exports less than USD 2,000, in the case of Chile;

- Consultancies and orientation programs on the use of FTA and, support to obtain the AEO certification, in the case of Korea;

- Promotion mechanism specially designed to promote exports of MSMEs for shipments with FOB value up to USD 5,000.

6. Regarding the facilities or benefits granted to MSMEs, such as facilitating lines of communication or providing computer systems, 8 economies indicated that they provide these benefits, of which 6 provide these facilities to any company and not only to MSMEs, and only 2 of the 8 economies have platforms dedicated to MSMEs. One is Malaysia, which has many platforms for these companies, to the extent that the Malaysian government promotes the adoption of information technologies to improve efficiency, productivity and access to markets; and the second economy is Peru, which has an Integrated Information System for Foreign Trade - SIICEX developed by the Ministry of Commerce and Tourism, which provides information on financing, exports and logistics for MSMEs5.

7. Finally it is important to mention that in question 21, the last question of the questionnaire, additional comments were requested regarding aspects that had not

1 Refer to Q3.2 Refer to Q4.3 Refer to Q6.4 Refer to Q8.5 Refer to Q16.

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been consulted, which was answered by Australia, Japan, Korea and Mexico, which argued on the need to have a differentiated legal treatment for MSMEs. The answers given highlight the two existing positions on this topic. On one hand, Australia, Japan and Mexico agree that differentiated treatment is not required for MSMEs, as they can benefit from the existing promotion and facilitation mechanisms applicable to all companies. On the other hand, Korea considers that the competitiveness of MSMEs is weaker than large companies, which is why the State must adopt a policy of support for this sector.

3.2 Session 2: Factors promoting MSMEs internationalization

Tax Regimes and Measures for MSMEsMs. Claudia Suárez Gutiérrez- National Deputy Superintendency of Taxation-Peru

Businesses by law are divided into (4) categories taking into account annual sales: micro, small, medium and large enterprises. We have established a special regime for micro and small enterprises called MSMEs Tax Regime (RMT) related only with internal taxes.

All economic activities can adhere to RMT, any kind of payment proof may be issued and less books and accounting registries are obligatory. It applies a reduction of income tax (IR) rate with an accumulated progressive scale. In 2017 no sanctions were applied related to accounting books and lack of presentation of Sworn Declaration for those businesses initiating activities in 2017 or coming from NRUS6.

The main facilitation and simplification measures are Declaration Zero which means elimination of the requirement of submitting Sworn Declaration when there are no sells to report; modification of data by telephone or in any office of SUNAT; proceedings at national level; electronic payments from APP and the Payment Wallet in mobile phone. Approaching taxpayers

We have different attention channels like social networks with 400,000 followers; more than 100 hundred information centers with 10 million users; 5 million users by phone; virtual chat with 48,000 users. Furthermore, we have implemented account handlers for 5,000 small and medium enterprises and we are using different kind of media such as tax conferences, website and micro site, distribution of material, press, publicity, fairs and events.

The Digital Transformation Program has 5 components: E-Notice, E-Record, the Single Account (All the taxpayer information is going to be in one place), E-Books and E-Payment Receipt. We encourage the massive application of factoring and electronic commerce. Simultaneously, we are reducing administration and archiving costs and lowering the number of books and accounting records. Although large enterprises are the only one which must use E-payment receipt, small and medium enterprises voluntarily use it in order to reduce costs.

Trade Facilitation tools contributing to internationalization - Peruvian experience

6 NRUS means “New Single Simplified Regime”.

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Trade policy instruments for insertion of MSMEs into global value chainsMr. Luis Mesías Changa – Ministry of Foreign Trade and Tourism

Exporting National Strategic Plan (PENX 2025)

The PENX 2025 has 4 Pillars: the first one, called, “Internationalization and market diversification”, the second one, called “Exportable Offer: diversified, competitive and sustainable”, the third one, called “Trade Facilitation and efficiency of supply chain” and the fourth one, called, “Capacity building to internationalization”.

1st PILLAR: Internationalization and market diversification

Actions were taken to consolidate our products in the international market and strengthen market intelligence. Currently, we have in force, 20 Free Trade Agreements Network (FTAs), signed 3 FTAs with Brazil, Guatemala and TPP, on negotiation 3 FTAs with Australia, India, Turkey and El Salvador and a feasible one with Indonesia.

The Market Development Plan main goals are to expand, diversify and consolidate the presence of businesses, goods and services and promote internationalization under the framework of the PENX 2025.

2nd PILLAR Exportable Offer: diversified, competitive and sustainable

MINCETUR in 2016 with the technical support from the World Bank implemented a methodology named Regional Exporting Plan (PERX) with the purpose of identifying the export competitiveness gaps of the region “La Libertad” and proposing specific actions to close these gaps.

At this moment, (7) PERX has been released, (2) are ongoing and will be concluded in October and November of 2017 and (6) other are in process. In the same way, by 2018, (10) new PERX will be implemented.

The export promotion mechanisms to support MSMEs are quality improvement7, differentiation of products through the creation and consolidation of new brands8, promotion of MSMEs exporting consortia and trade information given to exporter through digital channels: SIICEX, Peru Trade Now, Virtual room, Financial and logistic simulators. In order to reduce the regional competitiveness gaps we are developing the articulation between regional and central government, the academy and the private sector.

3rd PILLAR: Trade Facilitation and efficiency of supply chain

In order to increase the competitiveness of foreign trade we are working to enhance the availability of customs agents at national level, developing the Foreign Trade Observatory Agents, studying incentives for advance ruling and new ways to speed up VAT devolution and drawback, contributing to the reduction of logistics operators informality, improving the security of the logistic chain, implementing the WTO Trade

7 In 2016 we supported MSME producers of sesame, coffee, cocoa, maca and banana and in 2017; we are giving support to MSME producers of cacao, avocado, banana, passion fruit, ginger, curcuma and quinoa.8 Collective brands, such as, “ZIKUYO” for white cocoa from Piura, “KALL KAKAO” for chuncho cocoa from Cusco, TIBANA” for golden pineapple and “AYNOK’A” for quinoa; new sector brands named Alpaca Peru, Peru Textiles and Super Foods Peru.

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Facilitation Agreement and supporting the creation of a single group for multisector coordination.

Improving access to foreign trade financing

In 2016 it was launched the Support Program for Internationalization of Peruvian MSMEs abroad to co-finance activities oriented to strengthen, promote and facilitate their internationalization.

We also have the Export Credit Insurance for MSMEs Program which has been modified to include post shipment coverage and the Business Guarantee Fund – FOGEM that ensures loans that the entities of the National Financial System grant to MSMEs engaged in the production of non-traditional products.

We are conducting studies for the design of financial products that could be offered by rural cooperative to MSMEs such as pre-shipment credit, international factoring, among others. It is expected to be completed by the end of 2017.

4th PILLAR: Capacity building to internationalization

The Regional Trade Offices support MSMEs through foreign trade information, acting as a linkage between capacity building and technical assistance, identifying and promoting regional investment opportunities and regional trade. The objective is to create a national network for the development of foreign trade.

Tools for Customs FacilitationMr. Iván Luyo Carbajal - National Deputy Superintendency of Customs Peru

1. Segmentation of operators participating in foreign trade

85% of the importers are MSMEs, 46% of them are micro businesses; they import final products through e-commerce. 72% of the exporters are MSMES. Of the total amount exported only 4% corresponds to MSMEs; their main exportation products are handicraft, garments, textiles and agro-industrial.

2. Best global customs practices

WCO Customs indicators of excellence being implemented in Peru are the Electronic Declarations, Risk Management9 and research to simplify customs processes and review the current customs penalties policies, AEO10, Coordinated Border Management, Single Window, WCO Time Release Survey11, the TFA and the Revised Kyoto Convention.

3. Action lines to improve MSMEs competitiveness

Since 2014 the clearance time in import has shorten from 113.87 hours to 100.36 hours. In 2017, the FAST Program (Customs Facilitation, Security and Transparency) was launched with the aim of creating low-cost e-processes for importers based on advance and bonded clearance with release at arrival. It will

9 86% and 92% of the Declarations have automatic clearance in importation and exportation, respectively.10 It has been implemented in 2013; in 2017, 65 businesses are going to be added. Currently, we are working MRA with Korea, USA and the Andean Community.11 It will be implemented in 2017.

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reduce clearance time in import from 100 to 48 Hours and introduce a 100% electronic environment.

We want to create low-cost, fast and safe processes for exporters based on export e-invoice. The Export Declaration is going to be generated from the Electronic Invoice and will reduce clearance time in final export from, 23.7 hours to 12 hours.

The entry to temporary warehouse is going to be optional for exporter12 thus avoiding cargo contamination with drugs and improving the traceability of the cargo. It is necessary to define clearly the responsibilities of the actors involved in the cargo safeguard. The deliverables are electronic mandate, E-invoice, Advance manifest, control in port, conclusion, dated, rectification, electronic cancellation and integration with other processes.

The network services provided by customs consist of the following: Easy Export, Easy Import, VUCE Interoperability with government agencies, mobile solutions for cargo tracking in import/export, electronic payment gateway, prior bond and the AEO Certification Program.

Exporting Route Mr. Luis Torres Paz – PROMPERU

The Exporting Route program provides 28 services including trainings on how to develop the business idea to allow MSMEs to establish commercial contacts. Its main objective is to strengthen MSMEs capacity to manage international trade operations as well as successful businesses. The program was launched 6 years ago and since 2016 it has implemented Specialized Exporting Routes oriented to the creation of Consortia of MSMEs in order to develop attractive and diversified portfolios of products for international markets.

The most relevant services offered by Exporting Route Program are the following: Help Desk13, INFOCENTER14, Exporter Test, Competitiveness maps, e-commerce, quality programs and market access requirements, logistics and financing access programs, foundations on sustainable trade15, digital services16, Repository for MSMEs related to the existing offer of logistic and port services and best practices for negotiations of their products.

It is important to mention that digital portals have been developed such as PeruTradeNow for international buyers and SIICEX in which information related to business intelligence statistics and data base from SUNAT can be found. This information is relevant to the development of Trade Intelligence reports and market studies taking into account the current demand of markets and market niches.

12 Currently, in order to begin the export process, all the cargo must enter into a temporary warehouse.13 Foreign trade user platform.14 Documentation repository of Peru and the international market.15 Organic certifications, fair trade, carbon footprint, women entrepreneurs program.16 Platform of logistic services, information on shipping routes, calculation of times and freight costs.

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To support internationalization process, several promotional activities have been developed, taking for example PERU country brand and other sector brands17 with the purpose of boosting the efficient development of MSMEs towards internationalization.

Promoting MSMEs internationalization through a special Customs legislation- Korean Experience Mr. Seoung Hoon EOM - Korea Customs Service

Due to the lack of experience and information MSMEs have, Korean government provides support on exports by training on how to utilize FTAs. This support includes FTA origin management system, FTA consulting program and education programs given by Korean Institute and Customs Association as well as consultant programs on AEOs and oversea clearance support. Other measures established by Korea Customs include the extension of due date and divided payment for tax in compliance with a list of criteria18, tax refund support as well as the development of a plan for tax payment for delinquent MSMEs.

Finally it is important to remark that AEO certification for MSMEs counts on government financial support for consultancy costs according to the fulfillment of certain requirements.

Tax benefits on the exportation of MSMEs - Chilean experience Mr. Lucio Romero Baeza - Pro Chile

Pro Chile manages 3 supporting programs. The first one is called “MSMEs Export” which has created advisory and training centers for exporters in order to detect international business opportunities. The second program is called “Digital Export” and gives support with the development of e-commerce platforms which is useful for the promotion of products and negotiations. The third program is called “Women Export” which promotes women entrepreneurship. Pro Chile also provides information to MSMEs related to tax benefits on exportation, making emphasis on the deferred payment of taxes for a period of 60 days.

Tax benefits on the exportation of MSMEs - Chilean experience Ms. Lina Meneses Espinoza - Servicio Nacional de Aduanas

The programs on export promotion that Chile has are based on administrative facilities for the payment and reimbursement of customs duties and VAT. When it comes to Customs issues, Chile doesn’t have special treatments for MSMEs. Nevertheless, the general reimbursement of customs duties19, the simplified scheme of reimbursement for non-traditional minor exports20 and the deferred payment of customs levies and tax credits for capital goods do provide benefits to exporters21.

In 2017, Law N° 20.997 was established to allow MSMEs to have feasibility of releasing goods from the customs warehouse without paying duties and taxes for a period of 60 days.

17 Alpaca Peru, Peru textiles and Superfoods Peru.18 Import record for 2 years and no record of delinquency or violation of customs laws.19 Law No. 18.708, published in 1988, allows the reimbursement of customs duties paid on the importation of raw materials, semi-processed products and parts or components incorporated or consumed in the production of exported goods.20 Law N° 18.480 from 1985.21 Law N° 18.634 from 1987 and its Regulations.

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Presentation by a Peruvian MSMEMr. Ernesto Cisneros- Artesanías Inka Maki S.A.C

Artesanías Inka Maki S.A.C has 5 years of creation, but has more than 30 years of experience in the sector as producers and exporters of Peruvian handicrafts, specializes in the technique of glass painted in the reverse, where quality and innovation are the pillars for the development of their products. They have participated in many events, being their more important recognition: 1st place in the UNESCO Prize for Handicrafts for Latin America / Caribbean (painted glass-1995).

They received support from PROMPERÚ and they are part of the Exporting Route and with their help created a strategic plan, developed a webpage and the 5S. Currently, they are working to implement the quality control system. Additionally, they received training courses given by the Ad Hoc specialized programs of PROMPERÚ and support from CITEMADERA (Technological Innovation Center of Wood).

They learnt about Easy Export in 2013. Since January 2013, they entered into e-commerce (B2C and B2B). That year they only exported 5 or 6 products. At present, they send small shipments every week through this modality to United States, United Kingdom, Germany, Australia France, United Arab Emirates, Qatar and Canada through virtual platforms like ETSY (specialized in handicrafts) and EBAY.

COMMENTS PANEL, QUESTIONS & ANSWERS

Ms. Wan Saadah Mohamed Muhibbudin - Royal Malaysian Customs Department

It is important for economies, especially developing economies, to call for transparency in regulations and laws in order to share this information with MSMEs and consider measures that could reduce costs by reducing exports clearance time. The role of MSMEs is essential to the economic development of Malaysia since they contribute to nearly 36% of GDP and 65% of the economy employment and the 97% of enterprises are considered in this category.

Malaysia considers that e-commerce could improve the participation of MSMES in global trade. For that reason in 2017, Malaysian Customs launched the platform named the “Digital Free Trade Zone”22 in order to increase MSMES´s contribution to the GDP. Another measures taken included simplified procedures, de minimis value for declaration, export simplified declaration and digitalization processes through integrated systems.

Mrs. Nguyen Pham Nhu Ha - General Department of Viet Nam Customs

She considers that the crucial point is how to promote MSMEs to join the import and export activities as well as increase their participation in global value chains. Not only Customs, but also government agencies must give them support by setting up financial, technological, human resources, and market research policies.

We should take into account the advantage of e-commerce for MSMEs. They really need the support from the government to join international trade by simplifying cross border procedures.22 The first digital global trade platform apart from China.

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AEO Programmes, how could MSMEs benefit?Mr. Shoji Oguri - Japan Customs

In Japan there are about 641 AEO among exporters, importers, warehouse operators, customs brokers and logistic operators. The requirements mainly focus on compliance and security. The major benefits for importers and exporters are the release of the shipments by reducing the Customs examinations and inspections and the simplification of customs procedures. The same requirements are applied to all operators desiring to be an AEO regardless the scale of the companies.

Customs designs tailor made approaches to the characteristics of each operator and provides advice according to it. Besides, all the information is provided though websites, seminars, workshops and trainings since programs must be transparent and everyone involved should understand them. Japan also allocates a Customs Account Manager who serves as a consultant, help desk or trainer to each operator from the early stage of prior consultation (1-3 years).

In 2016 Japan Customs eased requirements to allow operators to outsource some areas of the AEO requirements (e.g. education, internal audit), aiming that more MSMEs can easily access to the Program.

Challenges and Benefits for MSMEs

Some of the challenges that have an impact on MSMES costs are the security investments (e.g. cameras, sensors), the achievement and maintenance of AEO standards. Nevertheless, they may be considerably less burdensome than the implementation costs made by large companies (e.g. training, internal audit).

Negative influence of the centralized organization structure could be a problem if MSMEs don’t have effective leadership through management, flexible decision-making and quick improvement.

AEO Program for MSMEs, Korean ExperienceMr. Seoung Hoon EOM - Korea Customs Service

Since 2011, Customs has supported MSMEs to achieve AEO certification and provided consulting costs as a maximum of $14,000. Because preparing relevant facilities to obtain certification requires a costly investment23 KCS has concluded a MOU with commercial banks to provide low interest loans to a given list of MSMEs.

KCS has also established mitigated criteria for MSMEs. Thanks to the reduction of the criteria´s number from 762 to 616, the AEO certification process time has also diminished. It also provides an advance workshop program and education for managers of AEO certified MSMEs.

The implementation of the self-test tool in 2014 gives MSMES administrative support allowing them to proceed with the preliminary procedures for AEO certification, reducing costs and time.24

23 $13,000 approximately.

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Trade Facilitation Measures for MSMEs DevelopmentMrs. Nguyen Pham Nhu Ha - General Department of Viet Nam Customs

The solutions established by the government in order to support MSMEs in a long- term period are the establishment of measures that include financial assistance, supporting technology, promotion of the market expansion and the development of human resources.

Viet Nam has amended its Customs Law, Decrees and Circulars on customs procedures adopting e-customs topics as well as the standardization and simplification of customs procedures (TFA, Revised Kyoto Convention, and TPP), eliminating 19 unnecessary customs procedures and simplifying 46 of them. Another crucial measure was the introduction of the customs automation system which offers the free end-use software for MSMEs so that enterprises will have quick responses. They have also implemented e-payment by connecting with Treasury and Banks.

The number of supporting documents in customs dossier has decreased and operators are only required to submit them electronically. Customs clearance time has been reduced and the National Single Window and ASEAN Single Window have been introduced. The development of the E-Port in which the data can be exchanged between customs and port operators with no necessity of printed documents and the electronic submission of manifest are another measures to be considered.

Viet Nam Trade Information Portal

It was launched in 2017 and implemented with the support of the World Bank according to the WTO Trade Facilitation Agreement. It is a one stop point, providing accessible, logical and helpful information to traders giving them access to regulatory and procedural information. Its implementation is important since it allows predictability and transparency of trading laws and processes.

The portal goal is to provide easy access to legislation, standardized procedures and tariff related information. As a consequence, it will reduce the risk of misunderstanding and confusion related to import and export transactions that may increase logistics delays at borders contributing to economic growth and employment.

COMMENTS PANEL, QUESTIONS & ANSWERS

Mr. Ma Biao - General Administration of Customs of the People’s Republic of China

In accordance with National Unified Arrangement, China Customs has taken a variety of measures related to the improvement of MSMEs in the field of imports and exports, considering tax reductions and exemptions.

In 2014, China has updated the AEO program and signed MRA with 33 economies. By providing MSMEs an efficient customs service, China has speeded up the construction of a Single Window to further promote trade facilitation.

24 They have to apply for a membership of the Korea AEO Association. After the approval of the application, MSMEs can do the self-test and by the time they check the results, they are going to be able to request for consulting which has to be given by the Korea AEO Association for at least 3 times and finally get a preliminary report.

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3.3 Session 3: Perspectives on the factors affecting the Internationalization of MSMEs

Challenges and opportunities for MSMEsMr. Juan Carlos Mathews Salazar - Universidad San Ignacio de Loyola

MSMEs have to face many challenges to access international markets. For that reason, it’s important to identify megatrends, new technologies and demographic segmentation in the global environment since they have a big influence on consumption patterns.

Another relevant factor to analyze is competitiveness. Enterprises must be prepared to compete in open markets. Information provided by government agencies in terms of technology, finance and logistics is crucial for MSMEs internationalization. MSMES ignore about export incentives mechanisms and have insufficiently developed their brands. To overcome these problems it can be suggested to give MSMES human resources training and also help them to develop market segmentation.

World Bank's perspective on the factors affecting clearance in import and export processes made by MSMEsMr. Enrique Fanta Ivanovic - World Bank

The World Bank is a major provider of trade related assistance, analysis and diagnostics as well as technical assistance and has developed a group of indicators such as the Logistic Performance Index and Doing Business. Currently, it provides support for the implementation of the Trade Facilitation Agreement.

The simplified map of a typical trade transaction shows that there are around 20-30 different parties with different objectives, 40 separate documents, numerous licenses, certificates and approvals, unfortunately many of them are repeated since they are requirements for different processes but not linked.

The World Bank has a list of impacts for MSMEs that includes higher costs related to logistics than large enterprises. A container may be too much for MSMEs so cargo consolidation is a must, but consolidation is a complex issue since it is considered as a high risk profile action so it always has to go through physical inspection even increasing the cost to 10 times a green channel container. Besides, brokerage, customs brokers and freight forwarders are too expensive for MSMEs.

The Free Trade Agreement includes some ideas of the customs side such as the following:

Transparency and access to information, which is considered a key issue by providing information and facilitation to MSMEs. First, there should be a Trade Portal, summing up relevant information on Customs website. Then, a National Single Window should be implemented with specific module for MSMEs/sector and electronic processing.

Consolidation/Deconsolidation Time release studies including customs time, information of port operators and

tracking information are excellent ways to discover bottlenecks. AEO for specific sectors, considering that it’s not a matter of size, but of rules

that are the same for everyone. To improve access to foreign markets more

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MRAs for AEO businesses should be signed. It’s recommended that AEOs programs should be implemented not only for Customs but also to support agencies like Colombia does using the same risk analysis from Customs, Health authorities and Police, etc.

Opportunities from e-commerce to MSMEsMr. Omar Guerra Zavaleta - PYME Peruanas al Mundo COMEXPERU

In spite of the fact that internet has modified consumption patterns and created new market opportunities, enterprises scarcely participate in e-commerce which is critical since it generates more opportunities to grow and expand MSMEs activities into other economies. MSMEs haven’t adapted to this system and for that reason it is necessary to give them support so they can turn into startups and offer differentiated products through electronic channels (B2B, B2C, etc.)

COMMENTS PANEL, QUESTIONS & ANSWERS

Ms. Lina Meneses Espinoza - National Customs Service - Chile

Technological revolution has a big influence in international trade. Ms. Meneses recommended that private associations and government agencies should work together in order to have a balance between trade facilitation and customs control through the establishment of meetings and Committees dedicated to analyze MSMEs challenges and suggest solutions for them.

Mr. Rafael Del Campo Quintana - Exporters’ Association – ADEX

In order to have a balanced trade, it is important to be aware of exports and imports. Trade facilitation is a key word that involves everyone. For that reason it’s important to solve problems related to supply chain and port infrastructure. An “evangelization” is part of a future plan based on creating an export culture. Likewise, it considers important the formation of associations due to the lack of an individual exportable offer.

Mr. Carlos Abuid Heresi - Peruvian Association of Express Service Companies - APESE

MSMEs have problems dealing with financing, access to markets and the lack of TI among others. Public entities and private associations should support MSMEs at a high level of interaction similar to an evangelization work which consists in explaining the benefits of formalization; therefore there is a reduction of costs and gain of competitiveness. Government should take into consideration all associations for next projects of transformation and modernization of customs legislation as well as the focus on developing human resources.

Presentation by a Peruvian MSMEMs. Nancy Montoya Soriano –Alpaca Montoya S.A.C.

Alpaca Montoya S.A.C. was created as a family business that wanted to take advantage of the demand of alpaca garments, offering a variety of products. They wanted to export directly without previous experience in the local market and its vision is to become the most reliable alternative among exporters of alpaca products and little by little has had the chance to grow and reach international markets.

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Electronic commerce has been a useful tool for this company, platforms like Alibaba which allow them to increase their sales and Easy Export, a facilitation mechanism for promoted export, implemented by SUNAT and other government organizations in Peru for MSMEs, has given them the opportunity to send their products. Their participation in international trade fairs has been relevant to its internationalization as well as to obtain new suppliers. They have also received the support from PROMPERU on ongoing training through the Exporting Route program which allows them to improve their business practices and negotiations.

3.4 Session 4: Tools that contribute to internationalization of MSMES

SW Interoperability as a trade facilitation mechanism, Pacific Alliance ExperienceMr. Domingo Frez- Consultant on the Pacific Alliance Project-Inter-American Development Bank

Based on the guidelines and agreements of the IV SW Network Meeting held in Santiago de Chile in December 2013, it was defined the implementation of a system that facilitates the integration between SWs of each economy in the Pacific Alliance. The Interoperability of Single Window Project (IOP) wants to encourage the use of the Electronic Commerce Windows of each of the economies of the PA and their interoperability, as an instrument to facilitate cross-border trade, through electronic data interchange, including those contained in sanitary, phytosanitary, origin and others required in the context of international commercial transactions.

The objectives are to promote the use of the Unique Trade Windows of each of the economies involved, support the public and private sector to facilitate cross-border trade, exchange relevant certificates and information online, be a reference to generate a step-by-step guide for the rest of the economies that wish to integrate and generate the necessary knowledge for the exchange of data and documents involved in international trade. The project has shown some progress: interoperability of the Phytosanitary Certificate operating in the 4 economies, interoperability of the Certificate of Origin in 3 of the 4 economies, improvement plan and analysis of business cases and procedures, initial definition of Customs Declaration Information and an alternative to continue with the interoperation of the Zoosanitary Certificate.

The critical success factor of the project requires that economies involved must have a mandate at the highest level to ensure priority, allocation of resources and alignment of the various agencies involved in the foreign trade process. They also should assign multidisciplinary teams, with decision-making capacity, leadership and technically trained in the different areas of the project and ensure budget to support the project, both in its implementation and in its permanent operation. It is essential for each economy to have a regulatory framework that allows interoperation with regulatory on Digital Signature and with a SW integrated at least to the sanitary agencies and Customs of its economy.

Mr. Gustavo Davis – CrimsonLogic

Citizens and businesses are considered the generators (e-commerce) of everything and the government and agencies (e-government) are called the regulators. In this scenario, a variety of relationships could happen among these parts and that’s why interoperability exists as a way to allow them to cooperate and work with one another.

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When it comes to Interoperability, everything relies on data harmonization, international standards, and streamlined processes, among others.

CrimsonLogic has done the IO Pack for the members of the Pacific Alliance. It has also worked for Panama, Trinidad y Tobago, Chile, Bolivia, Peru and Bahamas. The IOP is a very innovative product for the region. In this case the customers are the Pacific Alliance and the Inter-American Development Bank and the solution proposed is the peer to peer platform including phytosanitary certificates, certificates and determination of origin and furthermore they will try to implement customs declaration.

The next steps for interoperability demand the inclusion of more economies, the integration of electronic commercial bill and the gathering of data. After this IOP is put in place, something called node to node has to be created in order to interconnect this IOP with another IOP system from other region (e.g. IOP of the Pacific Alliance with IOP of ASEAN). These nodes could also connect the current system with other platforms like port to port or airport to airport platforms. That will create complex scenarios in which information will flow from one platform to other different through the nodes as well as the connection between IOPs.

The term Peru Logistic involves interaction between the current E-government and private sector, their coordinated work will be beneficial for the final users (importers and exporters) only if they manage to work together and once this work is done, there will be an opportunity to reflect this economy experience (National Single Window) with another economy or region. This is what interoperability does: to connect nodes of geographical groups of economies (Global Interoperability). The challenge is to have a broader picture of how to electronically help the cargo or goods to move from one place to another.

The key factor for MSMEs occurs when e-government and e-commerce come together by the IOP. Capacity building in human resources and technology, access to other markets and the cost of capital and regulations are the pillars of success for trade that CrimsonLogic considers important to achieve.

Presentation made by Peruvian MSMEsMs. Tiffany Yañez – URIN HUANCA

Urin Huanca was created in Lima in 1985 as a family business dedicated to design, elaborate and commercialize jewelry and silver and gold collection pieces in ethnic, colonial and modern style, serving the national and international market. All this while preserving the techniques and art of Peruvian jewelry and precious metal work with quality finishes. Their vision is to become a leading brand nationally and internationally in the design and elaboration of jewelry and collectibles in silver and gold, to make known to the world the art of Peruvian jewelry and precious metal work.

They have received the support from PROMPERÚ and through an ongoing training in the advancement process of Exporting Route, they have implemented improvements in their business and received training programs such as the Peruvian Technical Standard in Jewelry NTP 399.504.201325. They have also trained their artisans in techniques used in their jewelry to create greater competitiveness in their quality and finish.

25 The Standard encompasses a set of applicable rules for the improvement and discipline in the elaboration of their products in an artisan way.

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They have participated in several fairs, including JCK Las Vegas, Hong Kong Jewelry Show, Peru Fashion, IJL, among others and exported their jewelry to different economies. Through government funds, they had the opportunity to participate in Technological Missions seeking continuous improvements. They sell high quality silver and gold handmade jewelry to United States, Germany, Switzerland, Hong Kong, United Kingdom, Argentina, Puerto Rico, Chile and Ecuador through Easy Export. Thanks to the Alliance of Promperu with DHL, they have integrated to their logistics another way to send our products through this courier.

ICC - WTO Small Business ChampionsMs. Claudia Cornejo – CONFIEP

The strategic objectives of CONFIEP concerning MSMEs have to do with their work on the incidence of public policy in coordination with MSMEs associations to strengthen the agenda of this sector in different topics (public purchases, taxation, labor market, international market, access to financing, industrial parks and looks for the strengthening of the capacity building of MSMEs associations by providing workshops and trainings for them.

ICC in cooperation with WTO has launched an initiative called “Small Business Champions”. The objective of this initiative is to facilitate the participation of small companies in international trade through a platform to share experiences and innovative ideas.

Those companies with successful proposals will be recognized as ICC-WTO small business champions. The proposals include 4 topics: barriers faced in doing business, success experiences of MSMEs, access to relevant information in international trade and raise skills to enable them to diversify export markets.

With this initiative, ICC and WTO look forward to seeing innovative proposals aimed at raising awareness among MSMEs of the opportunities that trade can provide, and how they can seize those opportunities.

3.5. Conclusions of workgroups

Five questions were assigned to the workgroups. After the discussion the groups analyzed suggest the following conclusions:

Q.1 Do you consider that it is necessary to establish a Single Information Portal for MSMEs, which would help them to achieve internationalization? What information would it be necessary to include in this portal?

We believe that it is important to establish an International Trade Portal focused on the internationalization of companies, which should not be confused with a SW.

It must be considered as a primary characteristic of this Portal that it be accessible, written in simple language, have general information and have an icon addressed to MSMEs. Regarding the information to be included, it should contain domestic and destination information, considering the commercial agreements signed by the member economy and its main trading partners.

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Key issues for the functioning of the portal are the following: administration, budget, information updating and dissemination. The administration could be in charge of a Committee composed of the main participating organizations, which could meet periodically to update it.

Q.2 Do you consider that the advance rulings on valuation, classification and origin are a facilitation mechanism?

The informal sectors do not access customs procedures and benefits due to a lack of knowledge of the regulations. Customs should not provide information from their offices, but establish Information Centers, in the places where the largest number of MSMEs are concentrated, granting tax advantages until they can grow.

We acknowledge that Advance rulings are tools that facilitate foreign trade, but on the other hand, the procedures to obtain them are not faster and thus discourage importers and exporters to use this mechanism. We consider that it will be necessary to develop more expedite and simplified procedures for its issuance considering the amount and kind of goods.

Q.3 Which procedures could be improved in the import and export processes in the framework of the TFA to contribute to the internationalization of MSMEs, including the entire supply chain?

Proposals from the Philippines, Peru, Malaysia and Vietnam:

1. To create a Unique Window Portal at the national level

Respective member economies have developed a national information trade portal that provides access and transparency of information for exporters and other stakeholders.

An e-customs environment is continually evolving to provide a more responsive environment for all exporters.

It must be taken into account that the first level of barriers is internal. MSMEs have to deal with different agencies to obtain the permits. Government must be transparent and give facilities to MSMEs.

2. A dedicated Trade Facilitation team

In the Philippines, the Export Marketing Bureau has a dedicated frontline team of export counselors and advisors that handles trade facilitation concerns.

3. Cooperation and integration of government agencies

A reduction of red tape has been a continuous effort of all economies concerning legislation, education, financial support and logistical chain awareness &support for all exporters.

4. Deferred payment scheme of customs levies & periodic declaration for MSMEs and tax credits for capital goods.

In Viet Nam, a scheme that allows MSMEs to avail of deferred payment in tax duties for import of raw materials to be used in the production of exported goods is in place.

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5. AEOs for MSMEs

Mutual recognition of SME Authorized Economic Operator (AEO): to empower SMES, government should facilitate documentation process.

6. Electronic Invoicing and Electronic Declaration

There has been a move for member economies to introduce electronic invoicing for export goods that are subject to a certificate of clearance and export declaration. This is to facilitate easier documentation and record-keeping.

In Viet Nam, under a periodic declaration scheme, only 1 declaration is needed for many consignments. If a certain amount of duty is mall, MSMEs can enjoy a deferred payment scheme (quarterly or yearly).

One proposal of the group is to integrate the export declaration and the invoice in one document.

7. Tariff Classification assistance

In the ASEAN, there is an ASEAN Harmonized Tariff Code, a tariff nomenclature common among the 10 ASEAN Member States.

Customs classification is really a challenge for MSMEs so it is important to bring technical assistance in this subject.

8. Special legislation for MSMEs

MSMES need more incentives coming from the government. For instance, In the Philippines, the Barangay Micro Business Enterprise is a law that allows businesses with assets worth less than 3 million pesos to be exempted from paying income tax, the minimum wage law, and also provides them easier access to capital through special credit facilities. Its Ministry of Trade also provides various technical and technological supports to MSMEs for them to develop and participate in the global value chain.

9. Logistics chain awareness

MSMES employ customs brokers but they should be educated to know the entire process so they can communicate easily with buyers.

The Evangelization stresses the importance of disseminate the information; information is a form of capital; educating MSMES is a way to invest in their future; that is the role of the government.

Conclusions:

Government efforts to facilitate the participation of MSMEs in the international trade should entail a whole-of-government approach. It is necessary that various government agencies work together and unify their procedures to create an environment that will boost the competitiveness of MSMEs (holistic-enabling environment, they are in need, our duty is to make easier trade).

The government, through its programs and policies must create an enabling environment that will support MSMEs grow their export business. It is therefore imperative that issues on bureaucratic red tape be addressed.

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Q.4 What should be the orientation to MSMES in the processes of import and export goods?

This group considers that no different import and export taxes and duties treatment regarding the type of the company must be applied to MSMES.

Predictability and transparency concepts are important. In order to reduce unnecessary costs, customs must streamline, simplify and standardize foreign trade procedures. The government needs to elaborate a national strategy to communicate extensively all the process, costs and methodology of foreign trade issues through websites, workshops, call center, trade bureau (counseling) and campaigns to avoid extra costs.

What kind of guidance should customs and other entities give?

1) Re-Drafted communication plan to properly convey the requirements of foreign trade; MSMES should be agglutinated not only through associations but with up-to-day trends: social media, new divulgation aspects; government and MSMES must be constantly updated on the current initiatives by all the foreign trade entities. MSMES: stay synchronized and hold together in the same concept, they must be informed, and aware of what the other company is doing.

2) To extent the end to end concept of the foreign trade process. The government must get the process closer to the real user. It should extent through policies their reach closer to the end point in order to facilitate the flow through the chain. This can be implemented by exchanging the roles and processes that are currently done by the exporter to be somehow done or covered by the entities within their area of responsibilities.

If we categorize a foreign trade process (FTP) chain in 3 segments: government processes, logistics processes and import/export processes, the suggestions is for the government to push for policies to integrate the logistics processes in the new expanded government coverage, in 2 of 3 areas, of the stages in the FTP chain26.

3) To include topics throughout all the educational levels, so to improve the awareness of the students on entrepreneurship and microeconomics concepts to better prepare the new generation on the globalization and competitiveness environment.

4) AEO Program: there should be an implementation of different AEO levels.

Do you consider that the private sector has a role in these tasks? What should it be?

Yes, proactive role of private sector: leading role in policies and initiatives, gather and present them to the government considering all the members.

Q.5 Do you consider necessary to establish a differentiated customs treatment for e-commerce and how should this be regulated?

E- Commerce is an important tool for MSMEs and should have a differentiated treatment since they represent on average 95% of companies in almost every economy

26 For instance, the Ministry of Transport could issue a policy that covers somehow the logistic cost of moving the goods through the end of the chain.

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around the world and face significant obstacles to participate in international trade due to the lack of human, financial and technological resources.

Customs also have to deal with new challenges such as difficulties in risk management, their capacity to handle increased volume of trade and the implementation of post clearance audit.

E-Commerce must be supported by governments through a special legislation, simplified procedures and financial aid to develop commercial and IT infrastructure taking into account the best practices from other economies.

In order to accomplish these objectives, government should listen to the private sector, a committee of cooperation including government and industry of MSMEs should be established as well as the development of global standards by international organizations considering the conclusions and recommendations of these working groups.

4. CONCLUSIONS

As a result of the evaluation of the surveys, the development of the Workshop and the group work, the following factors affecting the import and export processes carried out by the MIPYMES have been identified:

a) Customs aspects

1. Information The information is not accessible and is scattered. Customs procedures are not easily understandable, they are written in a

very technical language causing misunderstanding and confusion about import and export transactions.

Limitations of the Customs Information System to provide in a friendly way the information needed by MSMEs.

Deficiency in the guidance provided for the completion of procedures.

2. Customs processes Cost overrun generated by import/export operations. Excess of procedures and requirements for import and export that

discourage their use by companies. Ignorance of tools that the Administration has in order to determine the

classification, valuation and origin of goods for import and export. Regarding advance rulings, procedure is not expeditious, which discourages

its use. Lack of facilities for the payment of taxes in some economies The use of Customs Agents generates an extra cost. Insufficient dissemination of the advantages of the AEO Program among

MSMEs. Likewise, no differentiation has been established between the different levels of the AEO that allow them to access said Program.

Numerous documents, licenses, certificates and approvals from different government entities that are required to import and export, are largely repeated for different processes, a situation that shows a lack of cooperation and integration among them, constituting internal barriers that limit internationalization and increase the costs of the processes

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b) Fiscal policy aspects1. Unawareness of government promotion and support programs, for example, tax

benefits and mechanisms for reducing and suspending taxes.2. High taxes on imports.3. Lack of specialized legislation and global standards in Electronic Commerce.4. Lack of facilities by the government for MSMEs to be recognized as AEO.

c) Organizational aspects1. Limited human resources;2. Lack of training in technical issues as well as management, marketing and

commercial intelligence and the operation of the logistics chain.3. Reinforce the differentiation of products to convert MSMEs into Startups, in

such a way that they can use different formats, such as B2B (Business to Business) and B2C (Business to consumer).

4. Absence of a technological infrastructure that serves as support for electronic commerce and lack of computerization.

5. Little brand development.

d) Logistics aspects1. High logistics costs; the cost of transportation in a container is very high for

MSMEs.2. Lack of transparency in the determination of logistic costs to determine their real

costs.

e) Foreign trade-related aspects1. Lack of training in foreign trade issues; they do not know the Agreements or

Free Trade Agreements or the TFA.2. International and national trade regulations are not easily accessible or

comprehensible.3. Absence of coordination among state agencies that participate in the

development of norms and procedures that promotes their insertion in foreign trade.

4. Lack of knowledge or scarce use of E-commerce tools to carry out international trade operations.

5. Market access problems, inadequate information or lack of information about the target export market; lack of preparation to compete in international markets and knowledge of the global environment, mega trends and new technologies to access international markets

f) Financial aspects1. Credit availability;2. High interest rates;3. Problems in obtaining financing that allows them to carry out import and export

operations, grant guarantees, and make investments to achieve and maintain the AEO certification and develop commercial and technological platforms.

4. Lack of knowledge about the sources of financing provided by cooperation agencies or government institutions.

According to what was discussed in the working groups, the following factors that promote the internationalization of MSMEs were identified:

1. Differentiated legislation for MSMEs24

There are two positions on this aspect, on one hand there are those who consider that the treatment should be the same for all companies and therefore, there should not be any differentiated legislation. On the other hand, there are those who believe that MSMEs are at a disadvantage compared to large companies, which affects their competitiveness and is a limitation for their internationalization, which requires a policy of support from the State, which allow them access to advice or guidance to understand the regulations and apply them correctly, to access financing, to improve their competitiveness, among others

2. Single Trade Portal

It is very important because it forces an inventory of requirements and documentation, which allows identifying unnecessary demands and duplications. We must shorten the knowledge gaps and reduce costs for a small business owner, which can be done with the implementation of a Single Trade Portal, different from the Single Window that contains relevant general information of all the processes, written in a language simple, accessible to MSMEs that includes all the actors of the logistics chain.

3. Use of electronic commerce as a tool for internationalization

Considering that the use of E- Commerce reduces transaction costs of international trade for MSMEs and eases the communication between the exporter and the final buyer, it is necessary to develop special legislation according to the studies and current development by international organizations.

For this purpose, it will be helpful the coordinated participation and efforts between private and public sector to facilitate electronic transactions that would lead to an optimal and efficient regulation and use of E-commerce, taking into account the development of commercial and IT infrastructure adapted to the particular conditions of MSMEs.

On the other hand, E-Commerce requires Customs control and supervision in order to avoid inadequate use. Customs should have an active participation by developing facilitation mechanisms as well as risk analysis to identify high risk transactions that infringe the law.

4. AEO Programs

Government authorities must develop institutional support in order to foster MSMEs participation in AEO Programs considering specific sectors. The facilities could include consulting cost, mitigated criteria and self-test tool among others. It will be helpful to sign MRAs with other Customs Administration and integrate Customs and the different governmental agencies involved in Customs clearance.

It is required to widely disseminate the AEO Program, giving MSMEs more information through seminars, workshops and special training. At the same time, Customs can design tailor made approaches to their characteristics and provides personalized advice.

5. Evangelization

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MSMEs require the support of the State to access financing, receive advice on technical aspects, but institutions should not wait for companies to look for them, but try to provide guidance and support to improve their competitiveness and facilitate their growth. Government should evangelize MSMEs, giving them focused support to overcome the asymmetries explaining them how to export and import and the benefits of being a formal enterprise,

The government should implement the end to end concept of foreign trade process chain by elaborating a national strategy to get closer to MSMEs facilitating the flow through the chain. It is necessary to work at the educational level and prepare businesses to respond to upcoming challenges of international trade and globalization.

6. Cooperation of government agencies

It is required to conduct studies to examine the procedures, requisites and documents requested by the different governmental agencies involved in foreign trade issues for the purpose of determining unnecessary duplications that generates extra costs and time to importers and exporters.

The integration of processes and cooperation among government agencies would contribute to reduce red tape and improve clearance time. In addition, these agencies must coordinate efforts to issue new laws and procedures taking into account the particular characteristics of MSMEs.

7. Customs measures

Customs can take diverse measures to support MSMEs, such as, facilities for paying import taxes, adopting a deferred payment scheme, customs periodic declarations and tax refund support; more accessible and simple information to avoid confusion and making Customs Information System more user-friendly. Moreover simplified import and export procedures, elimination of unnecessary requirements and orientation mechanisms adapted to their necessities are needed.

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APPENDIX 1 Welcome and Opening Remarks

Welcome Remarks by Mr. Rafael García Melgar- National Deputy Superintendent of Customs

We are called to work on an agenda for MSMEs who, with their contribution, generate a significant portion of dynamism in all of our economies. Therefore, one of the priorities of APEC is to promote the sustained development of MSMEs considering their impact on the development of economies, their contribution to growth and innovation in the region.

Some figures show this: MSMEs represent 97% of the total number of companies that generate employment for more than half of the labor force of the APEC economies. They contribute jointly to the GDP ranging between 20 and 50% in the majorities of APEC economies. They are responsible for less than 35% of total direct exports of the APEC region and it is in this aspect where we will pay attention these days.

According to Peru’s business structure in 2015, 99% of the total of the companies are MSMEs, units that employ more than 7.7 million people and contribute to the generation of 40% of GDP, but are only responsible for less of 5% of the total exported. There are aspects that do not allow its growth and insertion in the international market.

We will focus on those that involve customs administrations as trade facilitators. In this event, the objective will be to identify the problems faced by MSMEs and propose alternative solutions and improvements, collecting the best practices as well as the contribution of the initiatives that will be developed in the workshops.

Welcome Remarks by Mr. Juan Varillas Velásquez - President of the Exporters’ Association - ADEX

Better to use the term high impact companies, instead of MSMEs. There is a huge duality between small and large companies. MSMEs have a very important impact on the interior of the economy; the welfare of the economy is linked to employment and the income they generate.

There is a growing concern for MSMEs to access the benefits of the international market. In the Pacific Alliance, it is necessary to think in favor of MSMEs, but nothing significant will have been done in favor of citizens, although the impact on exports is only 5%. The IDB and the World Economic Forum have identified the 3 main obstacles for the MYPMES: information, financing and obstacles in the import and export processes.

From the PA we are working to integrate a PA bank that bets on this sector of companies; large companies do not have major problems to carry out international trade operations and overcome obstacles. The impact is greater in MSMEs, because they do not have technical teams or high training and therefore, the cost of the processes are higher; it is there where we have to support, and SUNAT has an important role in giving procedures so that they are not so affected by the cost overruns.

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We hope that this forum supports the development of capacity management and process simplification and allows finding actions that lead to better access for this business sector with a high impact on the economy and welfare of the economy.

Opening Remarks by Mr. Victor Shiguiyama Kobashigawa - National Superintendent of Customs and Tax Administration - SUNAT

This event is really important because it will allow us to put at the center a vital sector of the economy, small and micro businesses; the international category is small and medium enterprises but in our economy, the microenterprise is added; a very small segment.

If we look at the size of average companies, 84% of companies sell less than 30 thousand dollars a year, and just 1% exceeds 2 million dollars of sales per year, there is a very large fragmentation and atomization. However, they are economies that make life easier for millions of Peruvians and that requires special care because, being economically insignificant in the economy's macroeconomic figures, they represent the livelihood of many Peruvians.

What is the challenge? How do we get these companies to grow, develop, strengthen, and insert themselves into an increasingly demanding and highly competitive global economy? How do we make these small companies highly productive and efficient? One of the challenges is how do we get these companies to successfully export to the world?

The logistics chain is key and in fact there is much to be done, but not only that is the challenge; to achieve export we need these companies to have a high added value, and to achieve this one of the aspects that has been discussed is how we can get it out of that informality that costs the economy so much, but often is not understood.

We face a growing international trade in this modern world; there is an accelerated digital transformation; and the new economies emerge with great force. Today technology is within reach and allows transforming traditional businesses that were for a long time untouchable, today they are being affected every day and this new technology allows models to develop that until long ago were unthinkable.

How do we get these small businesses to face this world? We can certainly think that the new technology is a threat, but the new one can also be seen as a great opportunity for these companies to grow and develop.

From the Tax Administration, we consider that our role is to facilitate business, foreign trade, simplification and transparency, so that they have information at their fingertips. Small businesses need information to decide better, and achieve greater productivity, a better economy, a real strength. And not necessarily, doing everything via tax benefits that is what is always discussed, from the point of view of public policies.

We have to simplify and get these small companies have real economic advantages, to be more productive, for their products are appreciated not because they have a tax benefit, but because they are really competitive products internationally, and that is part of the discussion we expect to put in black and white, the comparisons are valuable and that will allow us to understand what the challenges we have in Peru.

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APPENDIX 2OUTCOMES OF MSMEs QUESTIONNAIRE

“Identification of Factors Affecting Import and Export Clearance Processes made by Micro, Small and Medium Enterprises (MSMEs)”

15 out of the 21 surveyed Economy Members responded the questionnaire (71.43%). Their answers are listed below

1. Factors qualifying a company as MSMEs in your economy

Member economies identified the following critical factors to consider an enterprise as MSME

- Quantity of workers 27: 80% - 13 economies;- Sales and/or income volume28: 60% - 10 economies; - Initial capital29: 26.67% - 4 economies;- Quantity of fixed assets owned30: (0) economies,

TABLE N° 1Factors for considering an Enterprise as MSME

ECONOMIESQ1

Q1. What are the factors qualifying a company as MSMEs in your economy?

Quantity of workers

Initial capital

Sales and/or income volume

Quantity of fixed assets owned

1. CHILE X --- X ---2. USA X --- X ---3. MALAYSIA X --- X ---4. VIETNAM X X --- ---5. JAPAN X X --- ---6. CHINESE TAIPEI X X X ---7. KOREA X X X ---8. HONG KONG X --- --- ---9. AUSTRALIA --- --- --- ---10.NEW ZEALAND X --- --- ---11.SINGAPORE X --- X ---12.MEXICO X --- X ---13. RUSSIA X --- X ---14.PERU --- --- X ---15. CHINA X --- X ---

TOTAL 13 4 10 0% 80.00% 26.67% 60.00% 0.00%

It is important to stress that 2 economies only use Factor 1; 1 economy uses exclusively Factor 3; 2 economies use Factor 1 and 2; 7 economies only use Factor 1 and 3; 2 economies use 3 Factors and 1 economy didn’t answer.27 From now on, Factor 1.28 From now on, Factor 2.29 From now on, Factor 330 From now on, Factor 4.

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2. Differentiated Customs legislation for MSMEs

None of the member economies has a special or differentiated Customs legislation for MSMEs, except Korea:

TABLE N° 2Customs Legislation for MSMEs

Korea, noted that this special or differentiated treatment consists in the following:- Grants benefits depending on certain established conditions (AEO, age, etc.)- Divided payment for MSMEs on tax.- Extension the time for payment of tax.

The rest of the economies, as described in the next chart, don’t have a Customs legislation that grants special or differentiated treatment for MSMEs

- Rules ad hoc customs processes for MSMEs- Degree of women’s participation- Sector where it belongs (agro-industrial, textile, technology, etc.)- MSMEs characteristics (social capital, number of workers, geographical

location, etc.)- Certain established conditions (AEO, age, etc.)

TABLE N° 3Special or differentiated treatment in Customs legislation

ECONOMIESQ3

Q3. If Yes to Q2, please specify which factors determine a differentiated special treatment in your economy as appropriate. Mark "X" in the corresponding boxes. You may mark more than one.Rules ad hoc

Grants special

Grants benefits

Grants benefits

Grants benefits

Others (please

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ECONOMIESQ2

Q2. Is there special or differentiated customs legislation for MSMEs in your economy?

YES NO1. CHILE --- X2. USA --- X3. MALAYSIA --- X4. VIETNAM --- X5. JAPAN --- X6. CHINESE TAIPEI --- X7. KOREA X ---8. HONG KONG --- X9. AUSTRALIA --- X10.NEW ZEALAND --- X11.SINGAPORE --- X12. MEXICO --- X13. RUSSIA --- X14. PERU --- X15. CHINA --- X

TOTAL 1 14% 6.67% 93.33%

customs processes for MSMEs

benefits according to the degree of women's participation

depending on the sector where it belongs (agro-industrial, textile, technology, etc.)

depending on the MSMEs characteristics (social capital, number of workers, geographical location, etc.)

depending on certain established conditions (AEO, age, etc.)

specify)

1.CHILE --- --- --- --- --- ---2.USA --- --- --- --- --- ---3.MALAYSIA --- --- --- --- --- ---

4.VIETNAM --- --- --- --- --- ---

5.JAPAN --- --- --- --- --- ---6.CHINESE TAIPEI --- --- --- --- --- ---

7.KOREA --- --- --- --- X

-Divided payment for MSMEs on tax.-Extension the time for payment of tax.

8.HONG KONG --- --- --- --- --- ---

9.AUSTRALIA --- --- --- --- --- ---

10.NEW ZAELAND --- --- --- --- --- ---

11.SINGAPORE --- --- --- --- --- ---

12.MEXICO --- --- --- --- --- ---

13.RUSSIA --- --- --- --- --- ---

14.PERU --- --- --- --- --- ---15.CHINA --- --- --- --- --- ---

TOTAL 0 0 0 0 1 1% 0.00% 0.00% 0.00% 0.00% 6.67% 6.67%

3. Any other differentiated regulation (not necessarily customs) for MSMEs that represents an advantage or benefit for this kind of companies.

TABLE N° 4

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Differentiated regulation (not necessarily customs) for MSMEs

ECONOMIESQ4

Q4. In your economy, is there any other differentiated regulation (not necessarily customs) for MSMEs that

represents an advantage or benefit for this kind of companies?

YES NO UNANSWERED1. CHILE X ---2. USA X ---3. MALAYSIA X ---4. VIETNAM --- --- X5. JAPAN X ---6. CHINESE TAIPEI X ---7. KOREA X ---8. HONG KONG --- X9. AUSTRALIA --- --- X10.NEW ZEALAND --- X11.SINGAPORE --- X12. MEXICO X ---13. RUSSIA X ---14. PERU X15. CHNA X ---

TOTAL 10 3 2% 66.67% 20.00% 13.33%

These economies, according to their kind of legislation and scope, pointed out the following:Chile: In general, the incentive programs to promote exports, including those of MSMEs, are as follows: Law No. 18.480 established a simplified scheme of reimbursement for minor

exports of non-traditional goods. Law No. 19.589 amended Law No. 18.480 by gradually lowering the percentage of

the reimbursement and amending the requirements for eligibility. Financing and guarantee programs to assist exporters in obtaining credit. For the

most part, these are intended for MSMEs. CORFO, which is a State agency, provides Chilean companies with support and

runs two export credit programs: "Financing for Chilean exporters" and "Financing for foreign buyers".

FOGAPE (Small Business Credit Guarantee Fund) gives credit guarantees to micro and small entrepreneurs and exporters that do not have sufficient guarantees to submit financing applications to banks.

The types of financing offered by FOGAPE include credit, leasing transactions and other financing mechanisms granted by financial institutions.

United States: Provides preferential treatment for federal contracts: Women Owned Small Business Economically Disadvantaged Women Owned Small Business Service Disabled Veteran (Military) Owned Business Historically Underutilized Business Zones (urban and rural small businesses) Business Development Program (disadvantaged small businesses).Malaysia

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A new SME Act would be tabled in the parliament this year. It will encompass six key areas, namely, general guidelines, institutional framework, market access, special incentives, SME funding and responsibilities of those parties involved in the proposed Act.

An SME Masterplan 2012-2020 was launched in 2012 aiming at raising the contribution of SMEs to the economy from 32% of GDP to 41% by 2020.

More than 100 SME development programs that are categorized under the focus areas of Access to Financing, Market Access, Human Capital Development, Innovation and Technology Adoption, Infrastructure as well as Legal and Regulatory Environment.

Japan: Cooperation Tax Act, Companies Act, Cooperation, Small and Medium-sized Enterprise Basic Act.Chinese Taipei: Act for Development of Small and Medium Enterprises, regulations governing the reduction of expenditures for Small and Medium Enterprises research and development as investment scope for MSMEs, regulations for the tax preferences provided to small and medium-sized enterprises on additional wage payment.Korea: The minor enterprises Act, Act on Facilitation of purchase of small and medium enterprise-manufactured products and support for development of their market. Act on the promotion of technology innovation of small and medium enterprises.Mexico: The “Regimen de Incorporación Fiscal” (RIF) gives new companies a discount of 100% of the corresponding taxes during the first year and this percentage decreases 10% each year.Russia: The Ministry of Economic Development of Russia implements the SME`s State Support Program, which is aimed at regional development of local SMEs through the following actions: special infrastructure (business incubators, guarantee funds, micro financing organizations, technology and industrial parks, business development centers, centers of export support) capital expenses, youth entrepreneurship and Public services provided in “one step window”.

4. Tax benefits for MSMEs importing or exporting goods.Only four economies (26.67%) confirmed that provide tax benefits for MSMEs importing or exporting goods:Chile: In export, because they are goods originated in the economyVietnam: Depending on the type of imported merchandise (raw materials, intermediate goods, final goods and only for its commercialization).Korea: Grace system for the payment of customs duty, divided payment for duty for MSMEs. The basic criteria are the volume of sales.Mexico: Didn’t specify what kind benefits provide to MSMEs

TABLE N° 5Tax benefits for MSMEs importing or exporting goods

Q6. In your economy, do MSMEs importing or exporting goods have any tax benefits? Mark "X" in the corresponding boxes. You may mark more than one.

ECONOMIESQ6

According to the type of business, if it is an extractive, industrial, trading,

By the time being in the market (example the first two

In import, by the type of imported merchandise (raw material, intermediate products, finished

In export, because they are goods originating in the economy

In import or export, by means of transport (sea, air, postal, etc.)

Others (please specify)

33

etc. MSME. Please specify

years)

products and only for its commercialization)

1.CHILE --- --- --- X --- ---2.USA --- --- --- --- --- ---3. MALAYSIA --- --- --- --- --- ---

4.VIETNAM --- --- X --- --- ---5.JAPAN --- --- --- --- --- ---6.CHINESE TAIPEI --- --- --- --- --- ---

7. KOREA --- --- --- --- --- ---8.HONG KONG --- --- --- --- --- X

9. AUSTRALIA --- --- --- --- --- ---

10.NEW ZEALAND --- --- --- --- --- ---

11.SINGAPORE --- --- --- --- --- ---

12.MEXICO --- --- --- --- --- X13. RUSSIA --- --- --- --- --- ---14. PERU --- --- --- --- --- ---15.CHINA --- --- --- --- --- ---

TOTAL 0 0 1 1 0 2% 0.00% 0.00% 6.67% 6.67% 0.00% 13.33%

Only 4 economies provide tax benefits exclusively for MSMEs that import or export goods. On the other side, 11 economies do not provide this kind of benefits.

5. Differentiated treatment granted by logistic operators to MSMEs in import and export processes

China is the only economy in which logistic operators provide differentiated treatment to MSMEs in import and export processes. In the case of Korea, shipping companies, internal transporters and express service companies provide this treatment.

TABLE N° 6Differentiated treatment granted by logistic operators to MSME

ECONOMIESQ7

Q7. If applied in your economy, what kind of logistic operator grants a differentiated treatment to MSMEs in import and export processes?

Shipping companies

Customs warehouse

Freight agents

Customs agents

Internal transporters

Express service companies (courier and postal mail)

1. CHILE --- --- --- --- --- ---2. USA --- --- --- --- --- ---3. MALAYSIA --- --- --- --- --- ---4. VIETNAM --- --- --- --- --- ---

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5. JAPAN --- --- --- --- --- ---6. CHINESE TAIPEI --- --- --- --- --- ---

7. KOREA X --- --- --- X X8. HONG KONG --- --- --- --- --- ---

9. AUSTRALIA --- --- --- --- --- ---10.NEW ZEALAND --- --- --- --- --- ---

11.SINGAPORE --- --- --- --- --- ---

12.MEXICO --- --- --- --- --- ---13. RUSSIA --- --- --- --- --- ---14.PERU --- --- --- --- --- ---15. CHINA X X X X X X

TOTAL 2 0 0 0 2 2% 13.33% 0.00% 0.00% 0.00% 13.33% 13.33%

6. Best practices for imports and exports made by MSMEs.Only 4 economies (26.67%) shared their best practices in import and export made by MSMEs, however, it can be appreciated that those best practices are not exclusive for MSMEs.

TABLE N° 7Best practices for imports and exports made by MSMEs

ECONOMIES

Q8

Q8.  Indicate the best practices in your economy for imports and exports made by MSMEs. If none, please indicate "N/A" (not applicable)

1. CHILE

Customs brokersMSMEs don´t need the intervention of a customs broker for all importations valued at less US$1000 and exports US$ 2000. It is important to note that in Chile, it is mandatory customs broker for all imports exceeding US$1000 and exports US$ 2000. No customs service charges are applied.

A simplified scheme of reimbursement for minor exportsLaw No. 18.480 of 19 December 1985 established a simplified scheme of reimbursement for minor exports of non-traditional goods.

Release of goods without prior payment of duties and taxes. Posting of securities.Law No. 20.997 of 13 March 2017, Modernization of Customs Law. The amendment allows the release and disposal of the goods, notwithstanding that the duties and taxes that affect their importation have not been paid, which must be made within 60 calendar days from de date of the legalization of the import declaration.

7. KOREA

To increase the use of FTA, The Korea Customs provide various kind of supporting policy such as:1. Consulting on FTA for MSMEs2. Education program on FTA3. Supporting policy for MSMEs to get AEO authorization.

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11.SINGAPORE

Singapore has best practices for imports and exports but they are not specific for MSMEs

14. PERU EASY EXPORT/IMPORT is a mechanism to promote exports/imports that can be used by MSMES and other enterprises that are not MSMEs.

7. Criteria applied in risk management to focus control actions on imported or exported goods for MSMEs

As depicted below, Korea (6.67%) is the only economy that applies criteria of risk management exclusively for MSMEs.

TABLE N° 8Risk management criteria applied to MSMEs that import or export

ECONOMIESQ9

Q9. In your economy, which criteria are applied in risk management to focus control actions on imported or exported goods for MSMEs?

Are they different from those applied to other kinds of enterprises?

YES NO UNANSWERED

1. CHILE

We don't have specific criteria are applied in risk management to focus control actions on imported or exported goods for MSMEs.

--- X ---

2. USARisk management is not different when applied to MSMEs versus other kinds of enterprises.

--- X

3. MALAYSIA N/A --- --- x

4. VIETNAM

Criteria:- Operating scope- Capital- Trade turnover- Quantity of customs declaration- Quantity of staff.These criteria are applied for all import and export businesses.

--- X

5. JAPAN

Selectivity criteria are universally applicable, free from the size of enterprise. If the MSMEs import same items regularly without any incident during certain period of time. It will be given the status of green control channel. There are not specific treatments for MSMEs on Customs control.

--- X

6.CHINESE TAIPEI

Chinese Taipei Customs’ selectivity criteria in risk management for imported or exported goods focus on high-risk factors, such as specific commodity code, country of origin, economy whence consigned, licensing indicator, trader, level of compliance, type of means of transport, etc. The selectivity criteria are the same for different sizes of enterprises.

--- X

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7. KOREA

To support export/import of MSMEs, it can be applied relatively moderated criteria to get AEO authorization and if the MSMEs are AEO, It can be upgraded to higher grade of AEO Criteria and can be less selected by Risk management system to be inspected.

X ---

8. HONG KONG

With the highly facilitating Customs procedures in HKC, Hong Kong Customs generally applies the principles of immediate release to all cargo and maintains the control to minimal for facilitating cargo flow.

--- X

9. AUSTRALIA

N/A – same process for enterprises of all sizes --- X

10.NEW ZEALAND

The NZ Customs Service undertakes a layered approach to risk assessment. This approach is generic across our clients and is not differentiated between the sizes of the importer/exporter.

--- X

11.SINGAPORE

We are unable to share this information. --- --- x

12.MEXICO

Mexican Customs regulations and systems, as well as codes of Customs declarations do not identify specific criteria for MSMEs, thus, the treatment received by these companies is the same as any taxpayer.

--- X

13. RUSSIA NO --- X

14. PERU The customs control system applies data mining for all the enterprises. --- X

15. CHINA

We pay attention to MSMEs’ composition of declared goods, rationality of the imported economy, and stability of business and goods movement. In addition, it is important to consider whether the illegal records of the enterprises imply significant and subjective malice. For the seriously illegal record, we care about whether the shareholders and managers have other related companies, and then conduct analysis. Once similar behavior is found, immediate measures will be taken.

--- --- x

TOTAL 1 11 3

% 6.67% 73.33% 20.00%

8. Any other regulation (not necessarily customs) restricting or prohibiting goods exported or imported by MSMEs

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None of the economies has exclusive regulation that restricts or prohibits the import or export of goods by MSMEs, which have the same treatment and opportunities than other group of enterprises.

TABLE N° 9Restrictions or prohibitions applied to imported or exported goods by MSMEs

ECONOMIESQ10

Q10. In your economy, is there any other regulation (not necessarily customs) restricting or prohibiting goods exported or imported by

MSMEs? Please explainYES NO UNANSWERED

1. CHILE --- X2. USA --- X3. MALAYSIA --- X4. VIETNAM --- --- X5. JAPAN --- X6. CHINESE TAIPEI --- X7. KOREA --- X8. HONG KONG --- X9. AUSTRALIA --- --- X10.NEW ZEALAND --- X11.SINGAPORE --- X12.MEXICO --- X13.RUSSIA --- X14. PERU --- X15.CHINA --- X

TOTAL 0 13 2% 0.00% 86.67% 13.33%

Regarding the topic, each economy explains their particular cases: United States: MSMEs follow the same importing/exporting opportunities

as large businesses. Singapore: Regulations are applied uniformly. Mexico: for the importation, it is necessary to comply with the National

Importers Registry and the admission of goods by authorized Customs. Russia: Russian legislation does not provide specified restrictions on

export and import of ordinary goods, except goods, rip out of circulation (weapon, waste materials and etc.)

Peru: Peruvian trade regulations apply to all enterprises that import or export goods.

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9. Differentiated treatment in assistance and guidance in customs matters

TABLE N° 10Differentiated treatment in assistance and guidance in customs matters

ECONOMIESQ11

Q11. Is there a differentiated treatment in assistance and guidance in customs matters to exporters and importers that the Customs Administration grants to MSMEs?

YES NO1. CHILE --- X2. USA X ---3. MALAYSIA --- X4. VIETNAM --- X5. JAPAN --- X6. CHINESE TAIPEI --- X7. KOREA X ---8. HONG KONG --- X9. AUSTRALIA --- X10.NEW ZEALAND --- X11.SINGAPORE --- X12. MEXICO --- X13. RUSSIA --- X14. PERU --- X15.CHINA --- X

TOTAL 2 13% 13.33% 86.67%

Only two economies (13.33%) indicated that they give a differentiated treatment on assistance and orientation in Customs matters to importing or exporting MSMEs, detailed in the next chart:

TABLE N° 11Kind of assistance and its scope given to MSMEs

ECONOMIES

Q12

Q12. If Yes in Q11, explain what kind of assistance is given to MSMEs and its scope. (Q11.Is there a differentiated treatment in assistance and guidance in customs matters to exporters and importers that the Customs Administration grants to MSMEs?)

39

2. USA

Small Business Regulatory Enforcement Fairness Act (SBREFA) was designed to create a more cooperative regulatory environment between agencies and small businesses, and to make Federal regulators more accountable for their enforcement actions by providing small business with an avenue to comment on the enforcement and compliance activities of the Federal agencies that regulate them. This act provides for comments on the penalties assessed and allows a small business to request relief from penalties under the SBREFA provisions.

Trade Facilitation and Enforcement Act (TFTEA) defines eligible small business, the term ‘‘eligible small business’’ means any business concern that, in the judgment of the Commissioner, due to its small size, has neither adequate internal resources nor financial ability to obtain qualified outside assistance in preparing and submitting for consideration allegations of evasion.

TFTEA also provides for the Director of the Trade Remedy Law Enforcement Division to serve as the primary liaison between U.S. Customs and Border Protection and the public regarding activities concerning evasion, including activities relating to investigations conducted under section 517 of the Tariff Act of 1930, which includes—upon request, providing technical assistance and advice to eligible small businesses to enable such businesses to prepare and submit such an allegation of evasion, except that the Director may deny technical assistance if the Director concludes that the allegation, if submitted, would not lead to the initiation of an administrative inquiry or any other action to address the allegation.CBP regulations authorizes CBP to provide technical assistance and guidance to small businesses (and to other parties as resources permit) Any technical assistance and guidance that are provided, however, will not become part of the record, and the fact that assistance or guidance was provided does not guarantee that CBP will proceed to initiate an investigation. Moreover, such technical assistance and guidance provided by CBP does not include providing research assistance to support an allegation of evasion or to identify potential parties that might be involved in the evasion of AD or CVD orders.

7. KOREA

1.Improvement of export procedure to support MSMEs e-commerce2.Defferential support for AEO and Non AEO MEMEs to support AEO MSMEs3.Relaxed regulation on AEO MSMEs4.Duty related Support for MSMEs (Such as Divided payment for MSMEs on tax, Extension the time for payment of tax)

10. Differentiated treatment that should be given to MSMEs to boost their development and greater participation in foreign trade

TABLE N° 12Differentiated treatment that should be given to MSMEs

ECONOMIESQ13

Q13. What special or differentiated treatment do you think should be given to MSMEs to boost their development and greater participation in foreign trade? Explain.

1. CHILE - We should grant a differentiated treatment regulation to AEO – MSMEs in relation with the multinational company.

40

- We should provide facilities or benefits to MSMEs such as facilitating lines of communication, for example help phone, to get information about customs procedures (Technical assistance).

2. USA N/A

3. MALAYSIA

1. FTA Helpdesk & Online Support - To provide guidance in helping SMEs understand the mechanics of various FTAs as well their utilization when exporting to/importing from FTA partner economies. 2. Market Intelligence - SMEs need to gain practical insight and understanding on their target export market.

4. VIETNAM ---

5. JAPAN

- Laws, regulations and procedures should be easily understandable, transparent and accessible too.- Should celebrate seminars on Customs procedures for economic operators including MSMEs

6. CHINESE TAIPEI

1. Marketing Expansion: setting up the marketing alliance, strengthening the functions of on-line business services, and enhancing the effectiveness of cross-border e-commerce.2. Capacity Building: Gathering, researching, disseminating and providing information about international markets, cultivating international marketing talent, as well as using big data analytics, in order to accurately grasp market opportunities and strengthen the competitiveness of manufacturers’ exports.3. Developing Own Brand: focusing on key markets and outstanding industries, dynamically cultivating the image, developing the brand, and promoting the brands of MSMEs.

7. KOREA Provide various kind of support for MSMEs, such as use of FTA, AEO and duty related support by government(Customs)

8. HONG KONG

With the tariff-free nature of the HKC, the Customs procedures in HKC are simple and facilitating to all enterprises.

9. AUSTRALIA ---

10.NEW ZEALAND

Other agencies provide services to smaller developing industries within NZ. NZ Customs assists in providing the environment for trade to occur (via FTA, MRA, Regulations etc) and assists all of our clients in terms of outreach and education via industry bodies and through our general approach to service delivery. One area where we assist that provides benefits to MSMEs is in educating industry (this is everyone not just MSMEs) on how to use international agreements.

11.SINGAPORE

Governments and Trade Associations can help bring about greater awareness of rules and regulations. This can be done by making it easier to access to rules and regulations online. In this regard, the recently launches APEC Trade Repository is a good start.

12.MEXICO

Mexico is working towards the creation of a website (SNICE) that will integrate information, among others, with regard to importation and exportation procedures and forms and documents required to this purpose as a guide for non-expert users. Furthermore, the website will offer tools that are useful to obtain an approximation of the tariff classification of a product, as well as information to guide the MSMES about origin assessment as to whether a product could be considered as originating and

41

information with regard to data and trade statistics.

13. RUSSIA - Credit availability, - Higher level of competitiveness.

14. PERU

• Improve the paperless system.• Fewer requirements to export or import.• Tax benefits.• Capacity building.• Exporters can do the clearance procedures alone without using the services of a Customs Agent when the amount of the exported goods through the simplified clearance and the simplified web clearance do not exceed US$ 5,000.

15.CHINA• Tax reduction and relief treatment• Training or briefing meeting on customs laws and regulations, import and export process, customs business credit management.

11. Main problems has identified for MSMEs to import and export

TABLE N° 13Main problems has identified for MSMEs to import and export

ECONOMIESQ14

Q14. Indicate the main problems your Economy has identified for MSMEs to import and export. Indicate in each case identified the issues that have been discussed in your economy.

1. CHILE Lack of knowledge of customs procedures by the MSMEs in import and export.

2. USA N/A

3. MALAYSIA

1. Insufficient knowledge on procedure to import2. Inadequate information on target market3. Inadequate trade facilitation support (i.e.: FTA Helpdesk & Online Support, Tariff Finder Application and international and domestic trade regulatory facilitation)4. Limitation of Customs Information System (CIS) which does not allow data sharing between ports

4. VIETNAM ---

5. JAPAN

Although Customs should make import/export procedures user-friendly, Japan Customs does not agree with granting special treatment to MSMEs according to the size of enterprise. It might become difficult problem to make a group for SMSEs in economic operators. Bad motivation to remain in MSMEs group will occur.

6.CHINESE TAIPEI

N/A

7. KOREA

The MSMEs is exposed to the rapid change of global trade environment such as development of e-commerce, the expansion of FTA.So, it is important to provide relevant information on the export/import and taxation support.

8. HONG KONG

None so far.

9. AUSTRALIA ---10.NEW ZEALAND

New Zealand is a small trading nation and is far away from overseas markets.

11.SINGAPORE

SMEs awareness of import and export regulations.

42

12.MEXICO

Through the National Survey on Productivity and Competitiveness of MSMEs conducted in 2015, the identification of some data became relevant in terms of international trade, as highlighted below where: • Only 2 out of every 100 small companies participate in the Global Chains of Value (6 out of 100 medium-sized companies does it) • 74% of small companies do not participate in the Global Chains of Value due to the lack of information regarding international trade.• 24% of MSMEs do not grow due to excessive paperwork and high taxes • 85% of MSMEs are not aware of government promotion and support programs and only 4% of them received support from these programs.These statistics have helped us to identify areas of opportunity to guide the logic of the public service in terms of an operation that is easier and more accessible to the user, establishing mechanisms of evaluation, dialogue and solution to the problems that the MSMEs has to deal with in order to participate on international trade.

13. RUSSIA- Credit availability, - High interest rates, - Raw oriented economy.

14. PERU

• Lack of knowledge on Customs procedures and logistic services for export.• Lack of transparency on tariffs to determine their real costs.• Misinformation about the requirements to enter the target market.• Increase of the logistics costs of the exporters due to the required participation of a Customs Agent when the amount of the exported goods exceeds US$ 5,000.

15. CHINA

MSMEs have limited human resources, which makes them difficult to cope with complex import and export processes. They are also faced with financing problems, which brings heavy guarantee burden to MSMEs in importation and exportation.

12. Percentage of participation of MSMEs in import and export in relation to the commercial movement each economy.

TABLE N° 14Participation of MSMEs in import and export

ECONOMIESQ15

Q15. Indicate the percentage of participation of MSMEs in import and export in relation to the commercial movement of your Economy. Also indicate the number of MSMEs that import and/or export, and the number of MSMEs subject to a benefit in the period 2012-2016.

1. CHILE

2. USA The U.S. Census noted that of the 304,223 U.S. business exporters in 2013, 97.7% or 297,343 were small businesses.

3. MALAYSIA Malaysian SMEs contributed 17.6 % to export (2015)4. VIETNAM ---5. JAPAN Japan Customs releases the trade statistics but not calculate percentage of

participation of MSMEs in import/export in relation to the commercial movement

43

of Japan.6. CHINESE TAIPEI

---

7. KOREA

1.The proportion of MSMEs : 98%2.The number of MSMEs : 122,000 (Approximately)3.Benefited MSMEs (2016) - Use of FTA : 30,657 - Authorization of AEO : 147

8. HONG KONG

Statistics are not available.

9. AUSTRALIA DIBP does not collect this information10.NEW ZEALAND

Unsure. In a global context, our large exporters could be considered MSMEs in much larger economies.

11.SINGAPORE

We do not have this figure. In Singapore 99% of enterprises are SMEs and they account for half of Singapore’s GDP.

12.MEXICO In 2014, 5,274 SME´s (not micro) exported $165´472.95 MXP, this represents the 16.06% of the total exportation (ENAPROCE, 2015).

13. RUSSIA There are 16.000 export oriented SMEs, operating in Russia (0.18 % from overall quantity of Russian SMEs).

14. PERUThe participation of MSMEs in the Economy foreign trade is 4.4%.The number of MSMEs involved in foreign trade represents the 72% of all the enterprises in the same category.

15. CHINA At present, China Customs does not compile statistics according to the size of enterprises.

13. Facilities or benefits provided to MSMEs such as facilitating lines of communication or providing computer systems.

The majority of the responding economies (53.33%) provide facilities at IT level to MSMEs

TABLE N° 15Facilities or benefits provided to MSMEs at IT level

ECONOMIESQ16

Q16. At IT level, do your Economies provide facilities or benefits to MSMEs such as facilitating lines of communication or providing computer systems?

YES NO UNANSWERED1. CHILE --- X2. USA X ---3. MALAYSIA X ---4. VIETNAM --- --- X5. JAPAN X6. CHINESE TAIPEI --- --- X7. KOREA X ---8. HONG KONG X ---9. AUSTRALIA --- X10.NEW ZEALAND --- X11.SINGAPORE X ---12. MEXICO X ---13. RUSSIA --- --- X14. PERU X ---

44

15. CHINA --- XTOTAL 8 4 3

% 53.33% 26.67% 20.00%

However, as described in the chart below, these facilities are not exclusive for MSMEs in some economies:

TABLE N° 15-AFacilities or benefits at IT level provided to MSMEs

ECONOMIES

Q16

Q16. At IT level, do your Economies provide facilities or benefits to MSMEs such as facilitating lines of communication or providing computer systems?

USA The E-Commerce and Small Business Branch was established by CBP in 2016. Part of the goal is to assist MSMEs in finding the resources they need to engage in importing and exporting.

MALAYSIA

• Business Accelerator Programme (BAP) 2.0 that provides matching grant for online application, mobile e-commerce, e-Payment & ICT Application implemented by SME Corp. Malaysia;• #MYCyberSALE 2016 to encourage SMEs to be part of Commerce eco-system implemented by Malaysia Digital Economy Corporation (MDEC);• eTrade, a programme implemented by MATRADE to promote the adoption of e-commerce among Malaysian SMEs to accelerate exports through participation in leading international e-Marketplaces; and• eUsahawan, an initiative implemented by MDEC to apply the knowledge and digital entrepreneurship among youth and micro entrepreneurs who will have the opportunity to explore the art of online business and help them to develop a business using digital platforms. The Malaysian Government has established a National Ecommerce Strategic Roadmap to spearhead the national eCommerce agenda in the era of borderless trading of goods and services. The National eCommerce Council (NeCC) which comprised various Ministries and Agencies and chaired by the Minister of International Trade and Industry (MITI), was established to drive the implementation of the roadmap towards doubling Malaysia’s eCommerce growth rate and reach a GDP contribution of RM 211 billion by 2020.

JAPAN Not particular to MSMEs. On line import and export declaration, Japan Customs has made PC terminals available to the declarations in the Customs office.

KOREA There are computers for MSMEs in local Customs house to support MSMEs.

HONG KONG

Yes, The Government Electronic Trading Service (GETS) of HKC provides front-end electronic service for trading community to submit trade-related business-to-government documents to fulfill import/export regulatory requirements; The GETS is open to the whole trading community including MSMEs.

SINGAPORE

SPRING Singapore administers the Capability Development Grant which is a financial assistance programme designed to help SMEs build capabilities across 10 key business areas. This includes technological innovation where SMEs can strengthen their technological capabilities to develop critical technology, products and services.

MEXICO

• The Model of Foreign Trade Tax Administration (MATCE, by its Spanish Acronym) that incorporates a comprehensive computer-based system platform that supports goods Customs Clearance, considering a single information repository, unified operational criteria, information security and integrity, among others. • The Customs Technological Integration Project (PITA, by its Spanish

45

Acronym) is an initiative that proposes automate, facilitate and streamline the entry and exit processes of goods at Mexican Customs through the modernization of the customs clearance of goods, passengers and vehicles control at border ports of entry and video surveillance.• The Mexican Foreign Trade Single Window (VUCEM, by its Spanish acronym), allows foreign trade users to send electronic information once via webpage to perform more than 250 procedures with 10 governmental agencies and 2 regulatory agencies, facilitating compliance with the non-tariff regulations and restrictions prior the Customs Clearance, ensuring transparency, simplifying and enhancing foreign trade operations, as well its logistics. • The implementation of new risk models allows debugging, processing, analyzing and generating intelligence from foreign trade operations and its stakeholders, achieving great advances in the automation of a priori analysis processes, which support time reduction and increases effectiveness of our inspection objectives.• Mexico is working toward the creation of a website National Foreign Trade Information Service (SNICE by its acronym in Spanish) that offers will seek to provide information regarding among others: import and export procedures in clear and structured manner and also will aim to provide different tools that will facilitate the participation of the SMEs in foreign trade.All these benefits are granted to all foreign trade users.

PERÚThe Ministry of Foreign Trade and Tourism has a web site called “Foreign Trade Data Integrated System” – SIICEX. The webpage offers a platform for MSMEs where they can find electronic platforms related to financing, export and logistic issues related to trade.

14. Advance Valuation Rulings for MSMEs that import goods

TABLE N° 16Advance Valuation Rulings for MSMEs

ECONOMIESQ17

Q17. In your economy, can MSMEs that import goods request the issuance of Advance Valuation Rulings?

YES NO1. CHILE X ---2. USA X ---3. MALAYSIA X ---4. VIETNAM X ---5. JAPAN X ---6. CHINESE TAIPEI X ---7. KOREA X ---8. HONG KONG --- X9. AUSTRALIA X ---10.NEW ZEALAND X ---11.SINGAPORE X ---12. MEXICO X ---13. RUSSIA --- X14. PERU X ---15.CHINA --- X

TOTAL 12 3

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% 80.00% 20.00%

In 80% of the economies, MSMEs can request the issuance of Advance Valuation Rulings, of which 80% are definitive:

TABLE N° 17Decisive or referential Advance Valuation Rulings

15.

Valuation of imported goods by MSMEs in concurrent or posterior control.In 7 economies (46.67%) imported goods are valued in concurrent control and in other 7 (46.67%) the valuation occurs in posterior control. It is important to mention that Mexico and Peru apply both types of control for imported goods.

TABLE N° 18Valuation of imported goods by MSMEs

ECONOMÍAQ19

Q19. In your Economy, goods imported by MSMEs are valued in concurrent or posterior control?

CONCURRENT POSTERIOR UNANSWERED1. CHILE X ---2. USA --- --- x3. MALAYSIA X ---4. VIETNAM --- --- X5. JAPAN X ---

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ECONOMÍAQ18

Q18. If Yes to Q17, are these Advance Rulings decisive or referential?

DECISIVE REFERENCIAL UNANSWERED

1. CHILE X ---2. USA X ---3. MALAYSIA X ---4. VIETNAM X ---

5. JAPAN X (Written)

X(Oral)

6.CHINESE TAIPEI X ---

7. KOREA X ---8. HONG KONG --- --- ---

9. AUSTRALIA X ---10.NEW ZEALAND X ---

11.SINGAPORE --- --- X

12.MEXICO X X13. RUSSIA --- --- ---14. PERU X ---15.CHINA X ---

TOTAL 12 2 1% 80.00% 13.33% 6.67%

6.CHINESE TAIPEI X ---

7. KOREA --- X8. HONG KONG --- X

9. AUSTRALIA X ---10.NEW ZEALAND --- X

11.SINGAPORE --- --- X

12. MEXICO X X13. RUSSIA --- X14. PERU x X15.CHINA --- X

TOTAL 7 7 3% 46.67% 46.67% 20.00%

16. Application of simplified valuation procedures for imported goods by MSMEs as postal or courier shipments.

In spite of the fact that 46.67% of economies apply simplified valuation procedures for imported goods by MSMEs as postal or Courier shipments, there is a significant percentage (33.33%) that doesn’t count on these procedures. Based on the information provided by member economies, it is possible to conclude that this difference is due to simplified procedures provided independently if companies are considered MSME or not.

TABLE N° 19Simplified valuation procedures for imported goods as postal or courier

shipments by MSMEs

ECONOMIESQ20

Q20. In your Economy, goods imported by MSMEs entered as postal and/or courier shipments are subject

to a simplified valuation procedure?YES NO UNANSWERED

1. CHILE --- X2. USA X ---3. MALAYSIA --- X4. VIETNAM --- --- X5. JAPAN --- X6. CHINESE TAIPEI X ---7. KOREA X ---8. HONG KONG --- --- X9. AUSTRALIA --- X10.NEW ZEALAND X ---11.SINGAPORE --- --- X12. MEXICO X ---13. RUSSIA --- X14. PERU X ---15.CHINA X ---

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TOTAL 7 5 3% 46.67% 33.33% 20.00%

USA: Simplified procedures are based on the value of the shipment not the size of the enterpriseHong Kong: Not applicable to HKC. Except those goods mentioned in Q19, valuation procedure is generally not required for imported goods.Singapore: Valuation methods used are governed by the WTO Valuation Agreement.

17. Final commentsOnly five economies provided final comments which range from their agreement on giving special treatments to MSMEs to its disagreement as well as proposals of measures of trade facilitation through customs for MSMEs.

TABLE N° 20Final Comments

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ECONOMÍAQ21

Is there any other comment related to MSMEs that you would like to make and was not considered in the previous questions. Please explain.

JAPAN

Japan does not agree with the idea that we should grant special treatment to MSMEs. Faithful implementation of WTO Trade Facilitation Agreement must help MSMEs. At that negotiation, I think we have negotiated the TFA from this perspective; for the sake of MSMEs.

KOREAThe competitiveness of MSMEs is relatively weaker than large company; in this regard the government (Customs) needs to provide various kind of supporting policy to help MSMEs.

AUSTRALIANot specific to MSMEs: • No export declaration unless an item is valued over $2,000.• No duty or tax payable for goods valued at or below $1,000.

MEXICO

The Customs Legislation does not differentiate treatment for micro, small and medium enterprises (MSMEs); it is an equal treatment for all kind of companies and users of foreign trade operations. Only, companies that participate in a special program or certification receive benefits or facilities, which derived from their compliance on customs and security requirements.

APPENDIX 3Programme

Workshop to Identify Factors Affecting Import and Export Clearance Processes made by Micro, Small and Medium Enterprises (MSMEs)

23 - 25 October 2017Hotel Hilton Lima Miraflores, Lima - Peru

DAY 1: Monday, 23 October 2017

08:30 – 09:00 Participants’ registration

OPENING REMARKS

09:00 – 09:05 Welcome Remarks by Mr. Rafael García MelgarNational Deputy Superintendent of Customs

09:05 – 09:10 Welcome Remarks from Business Sector by Mr. Juan Varilias VelásquezPresident of the Exporters’ Association - ADEX

09:10 – 09:20 Opening Remarks by Mr. Víctor Shiguiyama KobashigawaNational Superintendent of Customs and Tax Administration - SUNAT

OFFICIAL PHOTO

09:20 – 09:25 Group photo for all participants

09:25 – 09:40 COFFEE BREAK

SESSION 1: OUTCOMES OF QUESTIONNAIRE COMPLETED BY APEC ECONOMIES

09:40 – 09:55

Outcomes presentation

Ms. Rita Caballero VargasAPEC SCCP Project Overseer

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SESSION 2: FACTORS PROMOTING MSMEs INTERNATIONALIZATION

10:00 – 10:10

Introduction by Moderator

Mr. Jyns Ordoñez TorresNational Deputy Superintendency of Customs – Peru

10:10 – 10:25

Tax Regimes and Measures for MSMEs

Ms. Claudia Suárez GutiérrezNational Deputy Superintendency of Taxation - Peru

10:25 – 11:10

TRADE FACILITATION TOOLS CONTRIBUTING TO MSMES INTERNATIONALIZATION – PERUVIAN EXPERIENCE

Trade policy instruments for the insertion of MSMEs into global value chainsMr. Luis Mesías ChangaMinistry of Commerce and Tourism - Peru

Tools for Customs FacilitationMr. Iván Luyo CarbajalNational Deputy Superintendency of Customs - Peru

Exporting RouteMr. Luis Paz TorresPROMPERU

11:10 – 11:25

Promoting MSMEs internationalization through a special Customs legislation – Korean Experience

Mr. Seoung Hoon EOMKorea Customs Service

11:25 – 11:55

Tax Benefits on the Exportation of MSMEs, Chilean Experience

Speaker 1: Ms. Lina Meneses Espinoza National Customs Service - Chile

Speaker 2: Mr. Lucio Romero Baeza Pro Chile

11:55 – 12:10

Presentation by a Peruvian MSMEs

Mr. Ernesto CisnerosINKA MAKI

12:10 – 13:50 LUNCH

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13:50– 14:30

Comments Panel, Questions & Answers

Ms. Wan Saadah Mohamed MuhibbuddinRoyal Malaysian Customs Department

Mr. Carlos Scarneo SotomayorPeruvian Association of Foreign Trade Facilitation

Mrs. Nguyen Pham Nhu HaGeneral Department of Viet Nam Customs

14:30 – 14:45

AEO Programmes, how could MSMEs benefit?

Mr. Shoji OguriJapan Customs

14:45 – 15:00

AEO Programme for MSMEs, Korean Experience

Mr. Seoung Hoon EOMKorea Customs Service

15:00 – 15:15 COFFEE BREAK

15:15 – 15:30

Trade Facilitation Measures for MSMEs Development

Mrs. Nguyen Pham Nhu HaGeneral Department of Viet Nam Customs

15:30 – 16:10

Comments Panel, Questions & Answers

Mr. Ma BiaoGeneral Administration of Customs of the People’s Republic of China

Mr. Mohd Syukri AhmadRoyal Malaysian Customs Department

Mr. Gustavo Romero MurgaNational Deputy Superintendency of Customs - Peru

18:30 – 21:30 WELCOME CEREMONY

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DAY 2: Tuesday, 24 October 2017

08:30 – 09:00 Registration

SESSION 3: OTHER MEASURES PROMOTING THE INTERNATIONALIZATION OF MSMEs

09:00 – 09:10

Introduction by Moderator

Mr. Carlos Posada UgazLima Chamber of Commerce

09:10 – 09:25

Challenges and opportunities for MSMEs

Mr. Juan Carlos Mathews SalazarUniversidad San Ignacio de Loyola

09:25 – 09:40

World Bank's perspective on the factors affecting clearance in import and export processes made by MSMEs

Mr. Enrique Fanta IvanovicWorld Bank

09:40 – 09:55

Opportunities from e-commerce to MSMEs

Mr. Omar Guerra ZavaletaPYME Peruanas al MundoCOMEXPERU

09:55 – 10:15 COFFEE BREAK

10:15 – 11:00

Comments Panel, Questions & Answers

Ms. Lina Meneses EspinozaNational Customs Service - Chile

Mr. Rafael Del Campo QuintanaExporters’ Association – ADEX

Mr. Carlos Abuid HeresiPeruvian Association of Express Service Companies - APESE

11:00 – 11:15Presentation by a Peruvian MSMEs

Ms. Nancy Montoya SorianoALPACA MONTOYA

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SESSION 4: BEST PRACTICES THAT CONTRIBUTE TO INTERNATIONALIZATION OF MSMEs

11:15 – 11:30

Introduction by Moderator

Mr. Eduardo García-GodosInstituto de Facilitación del Comercio

11:30 – 12:00

SW Interoperability as a trade facilitation mechanism, Pacific Alliance Experience

Speaker 1: Mr. Domingo Frez Consultant on the Pacific Alliance Project Inter-American Development Bank

Speaker 2: Mr. Gustavo Davis CrimsonLogic

12:00 – 12:15

Presentation by a Peruvian MSMEs

Ms. Tiffany YañezURIN HUANCA

12:20 – 12:35

ICC-WTO Small Business Champions

Ms. Claudia Cornejo MohmeICC Peru

12:35 – 14:00 LUNCH

14:00 – 14:40

Comments Panel, Questions & Answers

Mr. Hsiang-Chih FanChinese Taipei Customs

Mr. Enrique Fanta IvanovicWorld Bank

Mr. Emmanuel Ortega AguilarGeneral Directorate of Foreign Trade – Mexico

14:40 – 15:00 COFFEE BREAK

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DAY 3: Wednesday, 25 October 2017

08:30 – 09:00 Registration

GROUP WORK

09:00 – 10:00 Work Table DistributionGroup Comments of the assigned topics

10:00 – 10:15 COFFEE BREAK

10:15 – 11:45 Preparation of each group presentations

11:45 – 13:00 Presentation of conclusions reached by each group

CLOSING REMARKS

13:05 – 13:15 Closing Remarks by Mr. Rafael García MelgarNational Deputy Superintendent of Customs – Peru

13:30 – 15:00 LUNCH

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APPENDIX 4List of Participants

Name Surname Economy Organization E-mailNinel CALISTO Chile DIRECON ncalisto@direcon.gob.clLina MENESES ESPINOZA Chile National Customs Service lmeneses@aduana.clBiao MA China (P.R.) General Customs Administration 948016999@qq.comTian Xiang LIU China (P.R.) Xiamen Customs District ltxxm@163.comHsiang-Chih FAN Chinese Taipei Chinese Taipei Customs joseph.fan@gmail.comYoshiro BABA Japan Ministry of Finance yuta.takamiya@mof.go.jpNorikazu KURAMOTO Japan Customs and Tariff Bureau yuta.takamiya@mof.go.jpShohji OGURI Japan Japan Customs yuta.takamiya@mof.go.jpSeoungHoon EOM Korea Korea Customs Service hoon07@customs.go.krMohd Syukri AHMAD Malaysia Royal Malaysian Customs Department syukri.ahmad@customs.gov.my

Wan Saadah MOHAMED MUHIBBUDDIN Malaysia Royal Malaysian Customs Department w_saadah.muhibbuddin@customs.gov.myRomina Patricia G. BLACER Philippines Trade-Industry Development Specialist RominaPatriciaBlacer@dti.gov.phJemina M. SY-FLORES Philippines Bureau of Customs jemina_syflores@yahoo.comKamonchat KONG-LEM Thailand Thai Customs Department kamonchatk@gmail.comJhanidarphar TARYAMAHA Thailand Thai Customs Department jhanidarphar@gmail.comPham Nhu Ha NGUYEN Viet Nam GD of Viet Nam Customs hanpn@customs.gov.vnThi Vinh Hoai NGUYEN Viet Nam GD of Viet Nam Customs hoaintv@customs.gov.vnEmmanuel ORTEGA AGUILAR Mexico Ministry of Economy emmanuel_abraham@hotmail.comDomingo FREZ Others IDB dfrezd@gmail.comGustavo DAVIS Others CrimsonLogic gustavodavis@crimsonlogic.comLucio ROMERO BAEZA Chile PROCHILE lromero@prochile.gob.clEnrique FANTA IVANOVIC Chile World Bank efanta@worldbank.orgJose Luis CASTRO Chile World BankJuan VARILIAS VELASQUEZ Peru ADEXCarlos POSADA UGAZ Peru Camara de Comercio de Lima cposada@camaralima.org.peEduardo GARCIA GODOS Peru Instituto de Facilitación del Comercio egarciag@ipfcom.orgLuis MESIAS CHANGA Peru MINCETUR

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Rafael DEL CAMPO QUINTANA Peru ADEX mbernaza@adexperu.org.peGustavo ROMERO MURGA Peru SUNATCarlos SCARNEO SOTOMAYOR Peru APEFEXClaudia CORNEJO MOHME Peru ICC PeruOmar GUERRA ZAVALETA Peru COMEXPERU oguerra@pymealmundo.com.peJuan Carlos MATHEWS SALAZAR Peru UNIVERSIDAD SAN IGNACION DE LOYOLALuis TORRES PAZ Peru PROMPERU ltorres@promperu.gob.peGeraldine BAHAMONDE LLANOS Peru PROMPERU gbahamonde@promperu.gob.peCarol FLORES BERNAL Peru PROMPERU cflores@promperu.gob.peRosa CARRASCO AGUADO Peru SUNATClaudia SUAREZ GUTIERREZ Peru SUNAT csuarezg@sunat.gob.peJose CALLE SANCHEZ Peru SUNAT jcallesa@sunat.gob.pePatricia CESPEDES Peru SUNAT scespedes@sunat.gob.peLuis FIGUEROA SANTA CRUZ Peru SUNAT lfigueroas@sunat.gob.peArnaldo ALVARADO BURGA Peru SUNAT aalvarado@sunat.gob.peCarolina SANCHEZ SANDOVAL Peru SUNAT csanchezs@sunat.gob.peLourdes MADRID ALVARADO Peru SUNAT lmadrida@sunat.gob.peJulia CASANA LOPEZ Peru SUNAT jcasana@sunat.gob.peRilla VILLAVICENCIO ACUÑA Peru SUNAT rvillavicencio@sunat.gob.peIrene LANYI OYAKAWA Peru SUNAT ilanyi@sunat.gob.peMaría AGAMA CIER Peru SUNAT magamac@sunat.gob.peArmando GARCIA Peru SUNAT agarciaa@sunat.gob.peMiguel ASCENCIO Peru SUNAT mparedesa@sunat.gob.peNidya ZEVALLOS PINTO Peru SUNAT mquenta@sunat.gob.peAna MATSUNO Peru SUNATJose BARANDIARAN Peru SUNATGudrun HURTADO Peru SUNATCristina GASTULO Peru SUNATRafael MALLEA Peru SUNATMaría EGOAVIL Peru SUNATJyns ORDOÑEZ TORRES Peru jordonez@sunat.gob.pe

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Ivan LUYO CARBAJAL Peru SUNAT aluyo@sunat.gob.peSonia CABRERA Peru SUNAT mgomezc@sunat.gob.peBenjamin VERGARA LEON Peru SUNAT bvergara@sunat.gob.peMagnet Carmen MARQUEZ RAMIREZ Peru SUNAT mmarquezr@sunat.gob.pe

Rafael GARCIA MELGAR Peru SUNAT rgarciam@sunat.gob.peCarlos GALLARDO Peru SUNATVictor Paul SHIGUIYAMA

KOBASHIGAWAPeru SUNAT vshiguiyama@sunat.gob.pe

Julio PARDAVE MARTINEZ Peru Asociación PYME Perú mype.peru@gmail.comEnrique BLANCO PIMENTEL Peru APEX PerúMartin QUISPE MOLLENDO Peru ASPAN administracion@aspanperu.com;Jorge TOMA TAKEKAMI Peru ASPAN administracion@aspanperu.com;Pío PANTOJA SOTO Peru ASPAN presidencia@aspanperu.com;Juan ACUÑA VARGAS Peru Universidad de Lima jacuna@estudiorodrigo.comCecilia SICCHA Peru Universidad del Pacifico lc.sicchar@up.edu.peKarin FASSBENDER Peru Universidad del Pacifico KUFassbenderF@up.edu.peOscar AZAÑEDO Peru AMCHAM PERU oazanedo@amcham.org.peManuel QUINDIMIL Peru AMCHAM PERUCarlos ABUID HERESI Peru APESEXavier MONTES ESSENWANGER Peru COMEXPERU xmontes@comexperu.org.peJose NORIEGA COOPER Peru COMEXPERUPatricia SARAVIA GUEVARA Peru ADEX psaravia@adexperu.org.peAna QUISPE SORIANO Peru ADEX aquispe@adexperu.org.peMarivel RAMIREZ DAVILA Peru SERPOST mramirez@serpost.com.peEnrique CABALLERO

ELCORROBARRUTIAPeru SERPOST

Carolina URBINA Peru PRODUCE carolina.urbina06@gmail.comJenny PEREZ Peru PRODUCE dgde_temp02@produce.gob.peInes PANDO Peru PRODUCE ipando@produce.gob.peMarco VELARDE BRAVO Peru PRODUCERenato POIRE Peru PRODUCE

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Walter IBARRA Peru MINCETUR wibarra@mincetur.gob.peAndrea OLIVARES Peru MINCETUR aolivares@mincetur.gob.peGloria RAMIREZ Peru MINCETUR gramirez@mincetur.gob.peIngrid HUAPAYA Peru MINCETUR ihuapaya@mincetur.gob.peCindy CORDOVA Peru MINCETUR ccordova@mincetur.gob.peEdgar VASQUEZ VELA Peru MINCETURFranklin THOMPSON LOYOLA Peru MEF fthompson@mef.gob.peRaul SALAZAR COSÍO Peru RR.EE.Roxana MIGUEL ESPINOZA Peru PERUCAMARASJorge OCHOA GARMENDIA Peru PERUCAMARASLuis VILA GONZALES Peru CONFIEP lvila@camaraica.comFrancesca GARAY Peru SIN fgaray@sni.org.peLeonardo LOPEZ ESPINOZA Peru Pontificia Universidad Católica del Perú PUCP es llopez@ehernandez.com.pe Carlos VILLA SOLIS Peru Universidad San Ignacio del Loyola cvilla@usil.edu.peWilson FARFAN ROZAS Peru SNI copei@sni.org.pe; wfarfan@fibrotecnia.comJulio SURCO HACHIRI Peru EFAG js@industriassurco.com.pe

Edwin MAGUIÑA AMES Peru CAFATEC PERU proyectos@innomec.com.peSamuel LAURA MEDINA Peru APC PIVES copinsac@gmail.comYolanda TORRIANI DEL CASTILLO Peru PERUCAMARAS ytorriani@perucam.com

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APPENDIX 5Workshop Photos

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