United Parcel Service, Inc. · NYSE:UPS
United Parcel Service — Investor Presentation (May 2022)
39 slides from United Parcel Service's investor presentation, May 17, 2022
Slide 1: Facilitating European Trade & Compliance
Facilitating European Trade & Compliance 1
Slide 2: Presenters
Presenters • Host • Panelist • Panelist • Panelist • Natalie Warren • Penelope Naas • Walter Van De Meiren • Ron Shepherd • Brokerage Marketing • President, International • Director, UPS EU • Director, Customs & Analyst UPS Global Public Affairs and Brokerage Trade Compliance at Sustainability at UP
Slide 3: This presentation is for informational purposes only
This presentation is for informational purposes only. It does not constitute legal advice - please consult with your own legal counsel for such advice. Do not rely on this information without performing your own research. 5/17/2022 Proprietary and Confidential: This presentation may not be used or d
Slide 4: Agenda
AGENDA • ICS2 release 2 • EU VAT • The UK and Northern Ireland • Russia Sanctions • Wise persons group • Global Trade Trends • Transparency in Supply Chains 5/17/2022 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly a
Slide 5: ICS-2
ICS-2 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2021 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc
Slide 6: ICS 2 – Release Overview
ICS 2 – Release Overview ✓ EU's new advance cargo information system. ✓ Supports implementation of new customs safety and security regulatory regime aimed to better protect the EU single market and its citizens. ✓ Collects data about all goods entering the EU prior to their arrival. Proprietary and
Slide 7: ICS2 – Release 2
ICS2 – Release 2 Takes effect in March 2023 • ICS2 requires global postal and Release 1: Postal & Air Express express, freight forwarder, Air Cargo and airline operators to file Pre-Load as well as Pre Arrival Completed information into EU systems by March 2023 for risk analysis by the Release 2: Co
Slide 8: ICS-2 Release 2: Preparation for next release
ICS-2 Release 2 Preparation for next release Who? When? How? Postal operators, express The second release becomes Operators have to complete and air carriers and effective on 1 March 2023 the ENS dataset for all freight forwarders. goods in air transport. MORE PRECISELY All goods transported by air
Slide 9: ICS-2 Release 2: UPS Preparation for next release
ICS-2 Release 2 UPS Preparation for next release UPS is fully synchronized The supply of an HTS UPS is expecting no impact with the legislator and code on line item level on service – upon prepares for a successful and accurate goods condition UPS is launch by March 2023 descriptions becomes provide
Slide 10: Provide complete descriptions of goods
Provide complete descriptions of goods Preparation for next ICS-2 release Plain language descriptions precise enough for customs services to be able to identify the goods. Below a list of examples of unacceptable characters in the descriptions of goods: Examples Standalone numbers 1004, 1005, etc. F
Slide 11: Tips & Tricks
Tips & Tricks How do I describe my products? What is a goods description? What detail do I need to provide? A detailed description of the goods that you are Ask yourself these questions when describing your shipping. goods: You need to provide a goods description on all - What are the goods? shippin
Slide 12: Classification
Classification What is it? What is it made of? What does it do? Product Customs Description 6 Digit HS code Toothbrush Toothbrushes, including dental-plate brushes. 96.03.21 Electromechanical domestic appliances, with self- Electric toothbrush contained electric motor, other appliances, electric 85.
Slide 13: Examples of acceptable descriptions
Examples of acceptable descriptions Preparation for next ICS-2 release Phone Apple iPhone-8, 4.7 Inch display 256 GB, Gold sprint Clothes Men‘s Pima Cotton Crew Next T-shirt Auto Parts Automobile Brakes, Windshield Glass for Automobiles Equipment Oil Well Equipment, Poultry Equipment Gifts Remote Co
Slide 14: How to find my 6 digit HS code
How to find my 6 digit HS code UPS TradeAbility®: Simplifying Global Trade Step 1: Describe your Product UPS TradeAbility link Step 2: Select from Tariff Code List Step 3: Find your 6 digit HS code UPS TradeAbility also helps with estimating landed cost calculation, denied parties, export licenses a
Slide 15: Why is EORI important?
Why is EORI important? EORI stands for “Economic Operators Registration and Identification number” Businesses and people wishing to trade must use the EORI number as an identification number in all customs procedures when exchanging information with Customs administrations. ✓ Any economic operator e
Slide 16: How to register for an EORI number
How to register for an EORI number Economic Operator’s Registration and Identification (EORI) Do I need an EORI number for every EU country? What if I don’t have one? No, a company will only have one EORI number per legal Your goods will not be cleared through customs, but will be entity and this EO
Slide 17: EORI National Implementation document
EORI National Implementation document Updated version of the document The updated version of the “EORI National implementation” document has been published by the EU COM: https://ec.europa.eu/taxation_customs/system/files/2021-12/eori_national_implementation.pdf This document provides information on
Slide 18: EU VAT
EU VAT Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2021 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, In
Slide 19: VAT Reform
VAT Reform On 1st July 2021, the Import One-Stop Shop (IOSS) was introduced. The IOSS allows suppliers and e- commerce platforms selling imported goods to buyers in the EU to collect, declare and pay the VAT to the tax authorities, instead of making the buyer pay the VAT at the moment the goods are
Slide 20: VAT Reform
VAT Reform In the first 6 months, Member States were able to collect around €1.9 billion in VAT revenues, translating to €3.8 billion annually The EU Commission is now assessing future changes like: €690 million in extra revenues were related to parcels valued at less than €22 – important because un
Slide 21: The UK and Northern Ireland
The UK and Northern Ireland Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2021 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel S
Slide 22: Update on the latest announcement on UK import controls
Update on the latest announcement on UK import controls UK have announced that the new controls regime will come into force from the end of 2023. The controls that have already been introduced will remain in place On 28 April 2022 the UK government that the remaining import controls on EU goods will
Slide 23: Northern Ireland customs arrangements
Northern Ireland customs arrangements Standstill on existing customs arrangements As a result of UK Gov proposals to renegotiate the NI Protocol in 2021, there is currently a "standstill" on existing customs arrangements in place between EU and GB with regards to Northern Ireland. Declarations will
Slide 24: Northern Ireland business to business movements
Northern Ireland business to business movements Northern Ireland businesses receiving goods from a business in Great Britain valued over £135 Northern Ireland based businesses receiving goods valued over £135 have to submit a declaration. However, they can delay this and they’ll be able to use the f
Slide 25: Sanctions and situation in Ukraine
Sanctions and situation in Ukraine Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2021 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United P
Slide 26: Russia Sanctions
Russia Sanctions Sanctions’ Impact on Trade The EU COM proposed to EU MS to adopt the following sanctions against Russia: Ban on exports Banning imports of coal, semiconductors, wood, chemicals, cement computers, and other and rubber, plus high- electrical and transport end foodstuffs equipment wort
Slide 27: Foreign Direct Product Rule
Foreign Direct Product Rule The rule and what it means to your supply chain What is it? The Foreign Direct Product Rule was established in August 2020 to control reexports and transfers of certain foreign- produced items when a Huawei-related company is involved How does the rule affect me? It is im
Slide 28: Situation in Ukraine
Situation in Ukraine UPS’s focus is on the safety of our people, providing continued service and minimizing disruption to our customers. UPS continues to closely monitor the situation and will re-establish service as soon as it is practical to do so. Service Updates UPS services to, from and within
Slide 29: Wise Persons Group
Wise Persons Group Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2021 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of
Slide 30: What is the Wise Persons Group on Challenges Facing the Customs Union?
What is “the Wise Persons Group on Challenges Facing the Customs Union”? The Wise Persons Group (WPG) is an independent high-level group, comprised of members from politics, industry, trade and academia. It is headed by the former Minister of Foreign Affairs, European Union and Cooperation of Spain,
Slide 31: The WPG is therefore advocating the need for:
The WPG is therefore advocating the need for: A package of reform proposals, relating to processes, responsibilities, liabilities, and governance of European Customs. A new approach to data that diminishes reliance on customs declarations, focusses on obtaining better quality data from commercial so
Slide 32: Implementation Timeline
Implementation Timeline 5/17/2022 Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2021 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Pa
Slide 33: EU Customs Union Reform
EU Customs Union Reform When will it be proposed and what will it encompass? Proposed Timeline Reform Builds on Objectives • Comprehensive reform • Union Customs Code • Revise EU customs proposal before the Evaluation legislation and governance end of 2022 • WPG • Modernize customs rules • Goal to b
Slide 34: Global Trade Trends
Global Trade Trends Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.© 2021 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service o
Slide 35: Global Trade and Supply Chain
Global Trade and Supply Chain Rules-based trade remains resilient, despite supply chain challenges Trade has been resilient… Global Merchandise Trade (trillions USD) • Global trade remains largely on WTO terms - 98% • Growth in global merchandise trade 2020 to 2021 by volume – 22.3 23.0* 23.6* 19.0
Slide 36: The trend toward supply chain transparency
The trend toward supply chain transparency Geopolitical tensions/pandemic have revealed need for greater transparency Government priorities Private sector priorities • Level playing field – including on environmental • Supply chain resiliency and labor issues • Accelerated shipping times • Forced la
Slide 37: Questions? Thank You
Questions? THANK YOU
Slide 38: Contacts
Contacts Compliance Questions: Walter Van Der Meiren (walter.van.der.meiren@europe.ups.com) Ron Shepherd (rshepherd@ups.com) Webinar Questions: Natalie Warren (nwarren@ups.com) Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless e
Slide 39: Thank You
ups THANK YOU
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