DAJV Fachgruppentag UPS on TTIP Dawn Kimmich UPS

DAJV Fachgruppentag UPS on TTIP Dawn Kimmich, UPS International Compliance Coordinator March 21, 2014, Frankfurt

UPS Global ØHeadquarters: Atlanta, GA ØRevenues 2013: $55. 4 Bill. ØDelivery Volume 2013: 4. 3 Bill. ØWorkforce: 395, 000 ØAreas served: over 220 countries & territories ØOperating Facilities: 1, 990 UPS WORLDPORT – LOUISVILLE, KY ØGround Fleet: 96, 361 vehicles ØAir Fleet: 237 own, 388 chartered aircraft ØAirports served: 728 worldwide ØOnline Tracking: 47. 5 Mill. Daily requests ØCustomers: 9. 4 Million daily

UPS in Europe Ø Region Headquarters in Brussels, Belgium Ø 55 countries & territories served in Europe Ø 44, 000 employees in the Region Ø Approx. 11, 500 points of access UPS Centers, MBE Stores, UPS drop-off locations, Kiala Points and UPS Access Point™ locations UPS HUB - COLOGNE Ø 8, 800 vehicles Ø 65 airports served Ø 52 intra-Europe Ø 13 intercontinental Ø 379 daily flight segments 270 intra-Europe 109 intercontinental

UPS in Germany Ø Ø Ø Ø Germany HQ: Neuss 2, 200+ points of access 88 operating facilities (including ~54, 000 m 2 warehouse space) European Air Hub at Cologne Bonn Airport 17, 000 employees 3, 600+ delivery fleet (package cars, vans, tractors) Airports served: Berlin, Cologne, Munich

Why UPS supports TTIP? Trade Facilitation ü Modernized & Efficient Customs processes Exemption from duties for low value shipments, immediate release, single window to submit data ü Individual customers benefit More choice, lower cost and simplified trade terms ü SMEs (small & medium sized enterprises) benefit Less “red tape” @ borders & regulatory coherence makes international trade more accessible ü Economic & Employment boost More goods move to more places. Transporters need more people to move them

Why mention Small & Medium sized enterprises? Ø SMEs account for 60 -70% of employment in most OECD countries Ø SMEs account for (Private sector) 85% of jobs in EU. 64% in USA BUT Ø 60% of US exporting SMEs export to only 1 country Ø 75% of EU exporting SMEs export to only other EU countries

Why? International trading landscape is not accommodating to smaller or less-resourced SMEs ▼ Lack of understanding of different regulatory standards and licensing procedures ▼ Lengthy & costly procedures for moving goods between the EU & US Direct to Consumer Ocean Freight Bill of Lading 7 Customs Clearance Manufacturing Plant LTL Shipping PROPRIETARY AND CONFIDENTIAL: THIS PRESENTATION MAY NOT BE USED OR DISCLOSED TO ANY PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS. Retail Outlet Retail Shoppers

Examples Ø Ø Ø Bill of Lading 8 Higher De minimis thresholds Advanced data customs pre-clearance Single window for customs clearance Customs Clearance Manufacturing Plant LTL Shipping Direct to Consumer Retail Outlet Retail Shoppers

Higher De Minimis thresholds Goods below $800 value Are exempt from customs duties and taxes ▼ Have a simpler customs clearance process ▼ Ocean Freight Bill of Lading 9 Easier import process Shorter time in transit ▼ Direct to Consumer Fewer headaches for SME can sell goods in more countries SME’s buyer has more buying choice SME’s buyer gets package faster Cheaper for consumer Customs Clearance Manufacturing Plant LTL Shipping PROPRIETARY AND CONFIDENTIAL: THIS PRESENTATION MAY NOT BE USED OR DISCLOSED TO ANY PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS. Retail Outlet Retail Shoppers

Advanced Data Customs Pre-clearance “Immediate Release” Meanwhile UPS carries goods from a seller, over roads, past UPS facilities, between cities …. ▼ UPS can electronically communicate pre-agreed data to Customs Authorities Direct to ▼ Ocean Freight Consumer When the package physically gets to Customs, it potentially already cleared Customs ▼ Bill of Lading 10 Customs Clearance Packages don’t sit with Customs. Packages arrive sooner. Customers are happier. Manufacturing Plant LTL Shipping PROPRIETARY AND CONFIDENTIAL: THIS PRESENTATION MAY NOT BE USED OR DISCLOSED TO ANY PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS. Retail Outlet Retail Shoppers

Single window for customs clearance Common template for import/export data elements for customs & security ▼ Ocean Freight Single window for electronic submission of data in EU and US ▼ Direct to Consumer Easier export process for SME Packages don’t sit at customs. Packages arrives sooner. Customers happier. Bill of Lading 11 Customs Clearance Manufacturing Plant LTL Shipping Retail Outlet Retail Shoppers

An International trading landscape which is easier for SMEs ▼ More SMEs can go Trans-Atlantic with more goods ▼ Customers have more choice Customers get goods faster Direct to Consumer Ocean Freight Bill of Lading 12 Customs Clearance Manufacturing Plant LTL Shipping PROPRIETARY AND CONFIDENTIAL: THIS PRESENTATION MAY NOT BE USED OR DISCLOSED TO ANY PERSON OTHER THAN EMPLOYEES OF CUSTOMER, UNLESS EXPRESSLY AUTHORIZED BY UPS. Retail Outlet Retail Shoppers

TTIP is also about People UPS employs 395, 000 people globally 22 packages per day (which cross a border) support 1 more job at UPS

TTIP is also about People A comprehensive TTIP could annually boost UPS volume by 13 million packages and support UPS 2400 jobs

Today, UPS moves 2% of Global GDP around 220+ countries & territories With TTIP EU/US Trade becomes easier ▼ More goods for sale. More choice for consumers ▼ More goods move WEF estimates that reducing supply chain barriers to trade could increase global GDP by nearly 5% and trade by nearly 15%

Thank you for the opportunity to be here