LITHUANIA At the Crossroads of Europe - FIATA

Page created by Dwight Lynch
 
CONTINUE READING
LITHUANIA At the Crossroads of Europe - FIATA
No. 131 | March 2020

  Magazine of the International Federation of Freight Forwarders Associations

      LITHUANIA
      At the Crossroads
      of Europe

COUNTRY REPORT                 UNFORESEEN                      CLOSE TO THE WCO
Discover the potential         Be careful of consign-          Common interests
of the Baltic states           ing a Bill of Lading            with customs bodies
LITHUANIA At the Crossroads of Europe - FIATA
Wherever your pharma goes.
           We keep cool.
                      When it comes to delicate cargo, both logistics
                      experts and global pharmaceutical manufacturers
                      value our dependability. As a CEIV-certified airline,
                      we strive to play our part in the cool-chain and meet
                      our customer’s temperature requirements. Even in
                      the toughest conditions.

swissworldcargo.com                                                We care for your cargo.
LITHUANIA At the Crossroads of Europe - FIATA
CONTENTS

Headquarters’ Session, March 2020
4   A detailed programme
    and a lot of interest

Editorial
5     From the President’s Desk

An Australian Case
6    A lesson learnt from the
     consignment of a Bill of Lading

Country Report
8   Lithuania –
    where West
    and East meet

Customs Affairs Institute (CAI)
10 Our close cooperation with
     the WCO and the forthcoming
     5th WCO Global AEO Conference
                                                      Exclusive Provider
Personally
12 Meet Galo Molina Aguilar,
     Vice President of FIATA,
                                                      of the FIATA Group
                                                      Bond Programme
     and get a taste of the
     Latin American point of view

13    New faces in FIATA’s Secretariat
                                                     Avalon’s programs are designed specifically for
Here & There / Agenda                                international logistics providers and our
14 Happy Birthday!                                   products and services are tailored for FIATA
15 Forthcoming Events                                members. In addition to the FIATA Group Bond
15 Masthead                                          Programme, we also offer the following:

                                                      ► Forwarder’s Liability Insurance
                                                      ► Errors & Omissions Insurance
                                                      ► Surety Bonds
                    Cover                             ► Cargo Insurance
                    Klaipeda (Lithuania) at
                    dusk, with the old town           ► Business Insurance
                    and the river Dane.               ► Claim Handling & Subrogation Services

                    Photo: iStock / proslgn
                                                     Contact us at fiatabond@avalonrisk.com or
                                                     +1 847 700 8176.

FIATA Secretariat
Schaffhauserstrasse 104                                           www.avalonrisk.com
CH-8152 Glattbrugg/Switzerland
Phone +41 (0)43 211 65 00, Fax +41 (0)43 211 65 65
info@fiata.com, www.fiata.com

                                                                                No. 131 | March 2020   FIATA REVIEW   3
LITHUANIA At the Crossroads of Europe - FIATA
FIATA HEADQUARTERS’ SESSION 2020 PROGRAMME
Zurich, 26th–28th March 2020
Swissotel Zurich (Oerlikon), Schulstrasse 44, 8050 Zürich

                                                                                                                                                                                        Photo: iStock/benedek
 Thursday, 26th March 2020
 Time                       Meeting / Session                                                                                  Room                 Contact person
 07:15 – 17:00              Registration                                                                                       Foyer                Barbara Wieser
 08:00 – 10:15              Region Africa and Middle East                                                                      Zürich               Bassil Eid
 08:30 – 10:15              Region Americas                                                                                    Saas Fee / Zermatt   Verena Schaer
 08:30 – 10:15              Region Asia Pacific                                                                                Arosa / Davos        Daniel Bloch
 08:30 – 10:15              Region Europe                                                                                      Basel                Joana Nunes
 10:15 – 10:45              Coffee break                                                                                       Foyer
 10:45 – 12:00              Advisory Body Legal Matters                                                                        Zürich / Basel       Stephen Morris
 12:00 – 13:00              Lunchtime                                                                                          Free disposal
 13:00 – 14:15              Advisory Body Safety and Security                                                                  Zürich / Basel       Bassil Eid
 14:15 – 15:45              Multimodal Transport Institute                                                                     Zürich / Basel       Joana Nunes
 15:45 – 16:15              Coffee break                                                                                       Foyer
 16:15 – 17:45              Know your FIATA                                                                                    Zürich / Basel       Robert Voltmann / Stéphane Graber

 Friday, 27th March 2020
 Time                       Meeting / Session                                                                                  Room                 Contact person
 08:15 – 17:00              Registration                                                                                       Foyer                Barbara Wieser
 08:30 – 10:00              Airfreight Institute                                                                               Zürich / Basel       Daniel Bloch
 10:00 – 10:30              Coffee break                                                                                       Foyer
 10:30 – 11:45              Custom Affairs Institute                                                                           Zürich / Basel       Daniel Bloch
 11:45 – 12:45              Lunch hosted by FIATA                                                                              Lakeside
 12:45 – 14:15              Transitioning FIATA Logistics Institute FLI                                                        Zürich / Basel       Verena Schaer
                            (Advisory Body Vocational Training / FIATA Logistics Academy)
 14:15 – 14:45              Coffee break                                                                                       Foyer
 14:45 – 16:00              Advisory Body International Affairs                                                                Zürich / Basel       Bassil Eid
 16:00 – 17:15              Advisory Body Information Technology                                                               Zürich / Basel       Bassil Eid

 Saturday, 28th March 2019
 Time                       Meeting                                                                                            Room                 Contact person
 09:00 – 12:00              Meeting of the Extended Board                                                                      Bern                 Stéphane Graber

PLEASE NOTE:
If you are not a FIATA member you may not be admitted to the Headquarters' Session. If you wish to become a member, please log on to
http://fiata.com/membership/becoming-a-member.html
                                                                                                                                                                                                                
LITHUANIA At the Crossroads of Europe - FIATA
FROM THE PRESIDENT’S DESK

Dear Members, friends and colleagues

M      y first words would have been to
       wish you a happy new year and a
prosperous 2020 – however as the year
                                              set about building FIATA and its capa-
                                              bilities to enable a better structure of the
                                              Secretariat to support member’s needs,
has unfolded to date those words are          realign functions and rekindle the FIATA
now muted by the Coronavirus. Many            interface with international and regional
of our friends and industry colleagues        governmental and non-governmental
in China are severely impacted by this        institutions.
calamity and to those in particular, and           In this regards I am happy to advise
the country in general, our thoughts are      you that new international trade law, pro-
with them for a speedy end to the health      fessional development and training and
crisis and for their safety, and that of      information technology staff have been re-
their families. This ever-expanding           cruited for the Secretariat. Work continues
health crisis has now impacted upon an        as to specialist recruitment on communica-
ever-widening list of countries. What         tions, events and projects and cross border
the crisis has brought sharply into fo-       operations, and we anticipate that these
cus is the economic dependence of all         positions will be filled in the next month.
economies on a facilitated international      This has driven the need for premises in
supply chain in which FIATA members           Geneva and these have now been secured.
play a pivotal role. The prosperity of all    The Director General and his staff will take
in 2020 will be impacted by the restrict-     up residence on 1st April 2020. Duality of        options that it will take forward to the
ed movement of people for an undeter-         operations in Geneva and Zurich will con-         Extended Board for further discussion
mined period of time.                         tinue; however, it is perceived that opera-       and development. Strategic planning and
                                              tions of the Secretariat will be centralised in   deliverables are now a Standing Agenda
The international freight forwarding in-      Geneva by the last quarter of 2020. FIATA         Item for Presidency meetings.
dustry is now clearly in the impact zone      has now embarked on the journey of re-
as aids to manufacture, key components        newal and on the basis of the support being       In order to ensure that Members’ Asso-
and consumables slow down in produc-          received from external parties, the goodwill      ciations are kept informed as to what
tion, and how speedy delivery can be          being exhibited and the resources now be-         is happening in FIATA, a session titled
achieved on production resumption,            ing recruited I am very confident with what       “Know your FIATA” will be delivered
with airfreight being acutely affected,       the future will bring for FIATA and its           by the Secretary General Bob Voltmann
with the cancellation of scheduled air        members. I would also like to acknowledge         and the Director General at the FIATA
services, and sea freight struggling with     the work that the acting Director General         Headquarters’ Session. This gives effect to
port restrictions and storage capacities.     Stephen Morris did in 2019 in stabilising         my commitment made in the December
Your Association has been working to en-      FIATA, working on the key element of the          2019 FIATA Review. “In my period of
sure the voice of the international freight   future, the recruitment of the new Director       office I will work to ensure that FIATA
forwarder is heard, as others clamour for     General, and maintaining the operations           is inclusive for all its Members and that
cost alleviation, changes to supply chains    of the Secretariat. Our thanks to him for         input is respected at all levels.” I have pre-
and business needs. FIATA continues to        being able to assist FIATA in this transition     viously commented that the strength of
monitor the supply chain disruption and       to a vibrant future.                              FIATA rests with its members, and while
provide information to members.                                                                 the architecture of FIATA and its Secre-
                                              In moving issues forward, the Presidency          tariat are now either in place, or will be
What struck me when I sat down to pen         met in mid-January and over two days of           over the next three months, this is all for
this article was that five months of my       intensive work and a very full agenda ad-         one purpose... to serve you, the members.
Presidency have already passed. In this       dressed many key issues. The Presidency           However, for that service to be relevant
time, however, key issue have been able       is conscious of the financial health of           you the members must contribute with
to be delivered that impact on FIATA          FIATA, membership deliverables, tran-             your skill sets, for we are better as a whole
and its future. Of particular impor-          sitional work on professional develop-            than as individuals. I look forward to
tance was that our new Director General       ment and training, external relations             meeting up with you in the near future.
Stéphane Graber, who will guide FIATA         with identified parties and the impacts of
for the future, commenced work on             developing supply chain data protection.          Yours,
1st January 2020. In the period since he      On these aspects the Presidency spent                                      Basil L.S. Pietersen
started work Stéphane has energetically       considerable time in developing strategic                                    FIATA President

                                                                                                    No. 131 | March 2020   FIATA REVIEW     5
LITHUANIA At the Crossroads of Europe - FIATA
AN AUSTRALIAN CASE

A BILL OF LADING REMAINS A DOCUMENT OF TITLE FOR THE GOODS

Staying in control of the
release of cargo by carriers
A recent case in Australia
showed that a freight for-                R    ecent case law from the NSW
                                               Court of Appeal in Australia acts as
                                          a reminder to freight forwarders to con-
                                                                                        per entered into a loan agreement with
                                                                                        Australia Capital Financial Management
                                                                                        Pty Ltd (ACFM), whereby the ship-
warder can easily be held                 sider carefully the question of whether       per would provide ACFM with original
responsible for the full re-              to issue a house bill of lading’ for a con-   bills of lading as collateral security in ex-
covery of the drawdowns of                signment. When doing so, there are            change for drawdowns on the loan. It was
                                          clear steps to take to protect the rights     intended that ACFM would return the
a cargo – also in case of
                                          of all stakeholders and avoid unforeseen      original bills of lading after the shipper
misleading and deceptive                  exposure.                                     had repaid the drawdowns.
conduct by a shipper.                                                                        In the course of applying for a draw-
                                          THE FACTS                                     down, the shipper provided ACFM with
                                          A freight forwarder contracted with a         eleven house bills of lading, issued by the
                                          shipper for the business of exporting ani-    forwarder. When the shipper failed to
                                          mal skins and hides. Separately, the ship-    make the repayments, ACFM attempted

6   FIATA REVIEW   No. 131 | March 2020
LITHUANIA At the Crossroads of Europe - FIATA
AN AUSTRALIAN CASE

                                                                                                                            • the House Bills did not in fact give the
                                                                                                                              lawful holder a right to delivery of the
                                                                                                                              goods.
                                                                                                                                 Consequently, the freight forward-
                                                                                                                            er was held to be liable for the loss suf-
                                                                                                                            fered by ACFM.

                                                                                                                            THE LESSON TO BE LEARNT
                                                                                                                                 Whilst the issuing of House Bills
                                                                                                                            of Lading as a business practice should
                                                                                                                            not be discarded, freight forwarders
                                                                                                                            should never issue a House Bill of Lad-
                                                                                                                            ing when they do not have control over
                                                                                                                            the release of the cargo at the destina-
                                                                                                                            tion; especially when the Ocean Bill of
                                                                                                                            Lading issued by the ocean carrier is
                                                                                                                            negotiable.
                                                                                                                                 A defining feature of a Bill of Lad-
                                                                                                                            ing is that it constitutes a document of
                                                                                                                            title for the related goods. Thus it must
                                                                                                                            be capable of obtaining delivery of the
                                                                                              Photo: iStock / PeopleImags   cargo it relates to when it is presented
                                                                                                                            to the issuer or its authorised agent.
                                                                                                                                 Furthermore, freight forwarders
                                                                                                                            must not sign House Bills of Lading
                                                                                                                            “as agents of the ocean carrier” unless
Forwarders should ensure that they retain control over the release of the cargo.                                            the ocean carrier has expressly granted
                                                                                                                            authority to do so. Such representa-
                                                                                                                            tion implies the lawful holder of the
                                                                                                                            House Bill of Lading has accrued rem-
to take possession of the cargo, only to       The forwarder issued a set of house bills                                    edies against the ocean carrier. If the
discover that it had already been released     of lading that were a close replica of the                                   ocean carrier has not granted author-
to a third party by the ocean carrier.         Ocean Bills, also being “original” and                                       ity to the freight forwarder, the ocean
     ACFM was successful in its action         “negotiable” and named the consignee as                                      carrier will have no liability, and the
against the freight forwarder for the          “to Order” (House Bills). The House Bills                                    freight forwarder will be liable for any
full recovery of the drawdowns, on the         were signed by the forwarder “as agent for                                   losses associated with reliance on the
grounds of misleading and deceptive            the ocean carrier.”                                                          representation.
conduct.                                            Furthermore, the forwarder released                                          For shipments where a freight for-
     This recent NSW Court of Appeal           both the House Bills and the Ocean Bills                                     warder issues a House Bill of Lading, it
decision upheld the previous judgment in       to the shipper, but the latter provided                                      is important to ensure the Ocean Bill
an action[1] brought by ACFM against           ACFM only with the House Bills. The                                          of Lading is non-negotiable and re-
the predecessor company of the freight         Ocean Bills were apparently used by a                                        mains in possession of the freight for-
forwarder, which was found to have acted       third party to take delivery of the cargo                                    warder (or their receiving agent), thus
with misleading and deceptive conduct          from the ocean carrier.                                                      ensuring the freight forwarder has con-
when issuing house bills of lading, whilst          The court held the House Bills them-                                    trol over the release of the cargo by the
simultaneously releasing ocean bills of        selves to be misleading and deceptive for                                    ocean carrier.
lading, both of which purported to be          the following reasons:
original negotiable documents.                 • the forwarder did not have the autho­                                               CRO Travel Pty Ltd v Australia
                                                 rity or consent from the ocean carrier to                                   Capital Financial Management Pty Ltd
WHAT WENT WRONG?                                 sign off as its agent;                                                                        [2018] NSWCA 153
In this case, the ocean carrier issued a set   • the forwarder allowed the issuance of two
of ocean bills of lading that were “origi-       sets of bills of ladings (House Bills and
nal” and “negotiable” and named the              Ocean Bills), both purporting to be origi-                                 [1] Australia Capital Financial Management Pty Ltd v Freight

consignee as “to Order” (Ocean Bills).           nal documents with title to the goods;                                     Solutions (Vic) Pty Limited [2017] NSWDC 279

                                                                                                                                   No. 131 | March 2020            FIATA REVIEW            7
LITHUANIA At the Crossroads of Europe - FIATA
COUNTRY REPORT

LITHUANIA’S GEOGRAPHICAL POSITION IS KEY FOR OUR INDUSTRY

A hidden champion
Most find it surprising that Lithuania – the 24th European coun-                                                             to Prague, from Berlin to Minsk, from
try by area and only the 35th by population – has recently man-                                                             Pskov to Budapest, from Klaipėda to
                                                                                                                            Alexandroupoli, from Kaunas to Ostrov
aged to become an undisputable transport and logistics industry                                                             and – locally – from Klaipėda to Vilnius.
leader in the EU. The transport and logistics sector there holds                                                            About 75 million t of freight are trans-
the largest share of GDP in the EU, with 12.3%. Its importance to                                                           ported annually on these roads. Devel-
                                                                                                                            oped road networks and road quality
the country’s economic development is significant.
                                                                                                                            make the country a good place for inter-
                                                                                                                            national carriers to start delivering cargo

T    ransport and logistics is the third-
     largest industry in Lithuania, em-
ploying around 106,000 workers, or
                                                  ropean Commission as a priority transport
                                                  link between Europe and Asia. This is why
                                                  transport infrastructure development is of
                                                                                                                            to almost every city in Europe in a mere
                                                                                                                            three days.
                                                                                                                                 Another advantage of Lithuania’s trans-
about 11.4% of the total workforce                national strategic importance and is con-                                 port infrastructure is Klaipėda’s state sea
(2016). More than 7,500 companies op-             tinuously supported by multi-million in-                                  port, which is the northernmost ice-free
erate in the sector, generating a turno-          vestments by the state and EU funds. Those                                port on the Eastern coast of the Baltic Sea
ver of approximately EUR 7.5 billion,             worth mentioning include Lithuania’s com-                                 and a bridge joining the CIS, Asia, EU and
with a main focus on export. 60% of               mitment to invest EUR 145 million in the                                  other markets. The multipurpose, universal,
all turnover is generated by road trans-          Via Baltica international highway system,                                 deepwater port is capable of handling more
port, while the country operates almost           and EUR 100 million in four public logistics                              than 65 million t of cargo annually and has
50,000 trucks internationally. Expedi-            centres.                                                                  ample storage facilities in place. Moreover,
tors in Lithuania are represented by the                                                                                    very short distances connect the gateway
Lithuanian National Association of For-           BY ROAD AND SEA                                                           with the most important industrial regions
warders and Logistics (Lineka).                   This public policy perfectly matches                                      of the Eastern hinterlands, and main ship-
     To support smooth transit options            private-sector initiatives focused on mak-                                ping lines link to European ports. The hub
Lithuania has established 37 border cross-        ing Lithuania a key European distribu-                                    can welcome calls from 400 m vessels up to
ing points at the European Union’s exter-         tion centre and on developing advanced                                    59 m wide and with a maximum draught
nal borders of. 19 border-crossing points         service infrastructure. For this purpose,                                 of 13.8 m. 14 large stevedoring companies
are with the republic of Belarus (four of         seven free economic zones, with a healthy                                 currently operate there.
them on international roads, eleven on            raft of financial incentives, and four pub-
local roads, three on the railways and one        lic logistic centres in major cities have                                 JUST TEN DAYS TO CHINA
on a river), whilst ten border-crossing           been established.                                                         Lithuania is well-connected through a
points link the country to the Russian                 At the end of 2015, there was                                        network of highways and railways, in-
Federation (five on international roads,          469,100 m2 of new warehousing space
two on the railways and three on interna-         in Lithuania. Total warehousing space in
tional rivers). The country also has four         the country stands at more than 1 mil-
international sea port and four interna-          lion m2. Though rather small, Lithuania
tional airport border-crossing points.            has a 21,000 km road system, which is
                                                  known to be the best in the region. That
AT A GLOBAL CROSSROADS                            is quite an achievement, keeping in mind
                                                                                                 Graphics: FIATA; iStock/PeterHermesFurian

It is fair to say that Lithuania’s geographical   that Lithuania was still shown as the
position is amongst the key reasons that have     land with no E roads on the E network
led to our industry’s success – Lithuania is      road map of Europe in 1988, following
centrally located between three sizeable mar-     a European Agreement on Main Interna-
kets, namely Western Europe, the Nordic           tional Traffic Arteries (AGR) in Geneva.
countries and the Eastern markets of Rus-              Today, six main European motor-
sia and the Commonwealth of Independent           ways cross the country, namely the E67
States (CIS). Being in the very midst of trade    (Via Baltica), E28, E77, E85, E262 and
transit, the country is recognised by the Eu-     E272, connecting Eurasia from Helsinki                                    Multifaceted logistics facilities.

8   FIATA REVIEW    No. 131 | March 2020
LITHUANIA At the Crossroads of Europe - FIATA
COUNTRY REPORT

                                                  LITHUANIA – FACTS & FIGURES
                                                   Official name            Republic of Lithuania
                                                   Capital                  Vilnius
                                                   Form of government       Independent democratic parliamentary republic
                                                   Area                     65,300 sqkm (with a 262 km coastline)
                                                   Population               2.9 million
                                                   Official language        Lithuanian
                                                   Currency                 Euro
                                                   Major export markets     Germany, Russia, France, Denmark, Belarus, Netherlands
                                                   Major trading partners   Russia, Latvia, Poland, Germany

cluding a North–South highway, its rail-      Network project, designed to link Finland,            Meanwhile, electric trucks are still
ways connecting Scandinavia with Cen-         the Baltic states and Poland, and simulta-        a vision of the future. Even though the
tral Europe, as well as an East–West route    neously improve connections between               infrastructure of electric charging sta-
linking eastern markets with the rest of      Central and Northern Europe; the outer            tions is well advanced in Lithuania and
Europe. According to the EU Commis-           port undertaking in Klaipėda, which will          continues to be developed at high speed,
sion, these are among the ten most im-        bring new potential for the transport in-         at present there are no electric vans
portant routes in Europe.                     dustry, as Baltmax ships will be able to          and trucks that have been registered in
     The Lithuanian railways transport        enter the port once it is completed. The          Lithuania.
approximately 48 million t of cargo           newly-planned outer port will cover ap-
every year, using modern infrastructure       proximately 130 ha, with its dredged area         REGULATORY ENVIRONMENT
and a fully-modernised locomotive             offering a depth of 17 m.                         AND TECHNOLOGIES READY
fleet. The country is a convenient hub,            Rail Baltica construction work will          Innovative and complex logistics solu-
linking Europe with Russia, China and         be started as early as next year and the          tions, paired with high-quality standards,
other Asian countries. There are two          project will be fully completed by 2030.          as well as business experience in Western
major types of railway track in its terri-    These projects will ensure additional ca-         Europe and especially in countries in the
tory –European standard narrow-gauge          pacities to carry goods and will increase         CIS, are all important for Lithuania’s re-
lines and the broad gauge of the Rus-         the attractiveness of the Lithuanian trans-       gional leadership in transport and logis-
sian standard, allowing the country to        port sector in the Asia–Europe corridor           tics infrastructure.
offer transport intermediation services.      for goods transport.                                   For instance, the country has ad-
Lithuania also offers services of the Vi-                                                       vanced regulation in place for the use of
king shuttle train, which connects the        ENVIRONMENT-FRIENDLY FUEL                         autonomous cars, which makes Lithu-
Black Sea and the Baltic Sea in just          SUPPLY STATIONS                                   ania an attractive location for the testing
55 hours.                                     New ecology and efficiency-focused truck          of future transport technologies in pub-
     The container train ‘Sun Train’ con-     transport technologies require the deve-          lic traffic. The forward-thinking Lithu-
nects Europe and China. It is unique in       lopment of related infrastructure for en-         anian government encourages the testing
that cargo that typically takes 40 days to    vironment-friendly fuel supply stations.          of these innovative vehicles on the roads
reach Europe by sea from China arrives in     Lithuania has moved a significant step            of Lithuania by approaching leading
just ten days. This was recently achieved     forward by developing infrastructure of           manufacturers.
as a result of various cross-border agree-    compressed (CNG) and liquefied (LNG)                   The technological environment is
ments that enable the train to pass           natural gas – the first CNG station there         extremely favourable for this purpose as
through Russia and Belarus, then onward       was built as long ago as 2007. Today there        well. Lithuania enjoys one of the fastest
to Scandinavian and other European            are nine such stations, with four of them         internet upload speeds in the world, hav-
countries via Klaipėda’s state sea port.      offering public filling access, namely in         ing the greatest fibre-optic broadband
                                              Klaipėda, Siauliai, Panevezys and Vil-            capacity in Europe.
BETTER INFRASTRUCTURE                         nius. The others are under construction.               Furthermore, experimental 5G cross-
Lithuania is continuously working to          A LNG terminal opened at the end of               border corridors through the country’s
improve its transport infrastructure.         2014 guarantees sustainability of the fuel        territory are under development, which
Amongst the priority projects there are the   supply system and competitive prices for          will definitely accelerate the process of
Rail Baltica – Trans-European Transport       transport companies.                              self-driving vehicle testing.

                                                                                                    No. 131 | March 2020    FIATA REVIEW   9
LITHUANIA At the Crossroads of Europe - FIATA
CUSTOMS AFFAIRS INSTITUTE

CUSTOMS AFFAIRS INSTITUTE (CAI)

FIATA’s share in the activities
and initiatives of the WCO
Customs clearance remains a vital part of the freight forwarder’s                           COMPREHENSIVE REVIEW
environment. The CAI is the spearhead of FIATA’s engagement                                 OF THE REVISED
                                                                                            KYOTO CONVENTION
with the WCO. Besides the revision of the Kyoto Convention and                              The WCO Revised Kyoto Convention
modelling the framework of the standards on the cross-border                                (RKC) is the main international Cus-
e-commerce, the AEO programme is in the focus of interest.                                  toms instrument for trade facilitation.
                                                                                            The RKC aims to facilitate the cross-
                                                                                            border trade of goods by harmonising

A    s an advocate of trade facilitation,
     FIATA has been actively involved
in the work of the World Customs Or-
                                              newed Memorandum of Understanding
                                              (MoU) to strengthen their mutual coop-
                                              eration. FIATA, through its Customs Af-
                                                                                            and simplifying Customs procedures
                                                                                            and processes. The RKC establishes the
                                                                                            foundations for uniformity, consistency,
ganization (WCO) for over thirty years.       fairs Institute (CAI), has also continued     predictability and transparency in trans-
Collaboration with intergovernmental          its membership of the WCO Private Sec-        actions with Customs administrations
bodies such as the WCO is vital for           tor Consultative Group (PSCG), a high-        across the globe.
FIATA in representing the interest of         level advisory group to the WCO that                In June 2018 the WCO’s members
its members as to the interoperability        provides positive input to the WCO on         agreed to establish a dedicated working
of Customs standards with the inter-          Customs and international trade matters       body to carry out a comprehensive review
national trade and transport commu-           from a business perspective. Participa-       of the RKC; FIATA participated in that
nity and in seeking synergies between         tion at the PSCG has enabled FIATA to         review work.
trade and government.                         actively participate in the facilitation of         FIATA highlighted the need for Cus-
     Official observer status at the WCO      international trade.                          toms and freight forwarders to recognise
allows FIATA to contribute to discussions          This article provides an overview of     each other’s roles in joint cooperation as
on matters and to participate in a wide       several key WCO initiatives, relevant for     well as other crucial aspects, such as digi-
variety of WCO working bodies. In             service providers in international trade      talisation and single windows.
2010, FIATA and the WCO signed a re-          logistics and supply chain management.              FIATA will continue to participate in
                                                                                            the review of the RKC and contribute to
                                                                                            its trade facilitatory objectives.

                                                                                            FRAMEWORK OF STANDARDS
                                                                                            ON CROSS-BORDER
                                                                                            E-COMMERCE
                                                                                            E-commerce now forms a significant part
                                                                                            of international trade and has created sig-
                                                                                            nificant challenges to Customs admini-
                                                                                            stration as to fiscal leakage, community
                                                                                            protection, safety and security, import
                                                                                            prohibitions and restrictions, as well
                                                                                            as the facilitation for all forms of cargo
                                                                                            (imports and exports), not only that of
                                                                                            e-commerce.
                                                                                                 The WCO is working extensively
CAI delegates, pictured at the CAI meeting in Cape Town, already looking forward to         on finalising its E-Commerce Package,
participating in the 5th WCO Global AEO Conference.                                         which contains the Framework of Stand-

10   FIATA REVIEW   No. 131 | March 2020
CUSTOMS AFFAIRS INSTITUTE
Photo. FIATA

          FIATA has been involved in the work of the World Customs Organization for more than 30 years now.

          ards on Cross-Border E-Commerce,              ture of international trade processes and           5TH WCO GLOBAL
          which includes 15 global standards.           border-clearance processes for the future,          AEO CONFERENCE
          The package aims to contribute to the         which will help in forming the policy de-           FIATA will participate in the 5th WCO
          standardisation and harmonisation of          cisions of the WCO.                                 Global AEO Conference in Dubai in
          border regulatory processes for the more           The PSCG is linked to the ongoing              March 2020. Under the theme ‘AEO 2.0:
          efficient management of cross-border          2021 review cycle of the SAFE Frame-                Advancing towards New Horizons for
          e-commerce. It includes elements such         work and, in particular, the very impor-            Sustainable and Secure Trade’, the con-
          as technical specifications, data require-    tant work being conducted within the                ference will provide a forum for various
          ments, implementation strategy and an         WCO to strengthen and enhance AEO                   Customs administrations and stakehold-
          action plan.                                  programmes, in order to ensure largely              ers to meet and discuss their overall com-
               FIATA has participated in the exten-     harmonised implementation and less di-              mitment to reshaping the future of the
          sive discussions of cross-border e-com-       vergent practices.                                  AEO programme.
          merce and has contributed to defining                                                                  Mr. Steve Parker, CAI Chairman,
          the roles and responsibilities of freight                                                         will take the opportunity to put forward
          forwarders in the e-commerce supply                                                               FIATA and the views of the freight for-
          chain. FIATA will continue to provide                                                             warding industry. He will report on the
          the views of the industry in future process                                                       outcomes of the event at the forthcom-
          change as well as to the development of a                                                         ing FIATA Headquarters’ Session. FIATA
          maintenance mechanism.                                                                            has consistently participated in a vari-
                                                                                                            ety of WCO meetings of several identi-
          WCO PRIVATE SECTOR                                                                                fied WCO bodies. It reports regularly to
          CONSULTATIVE GROUP                                                                                FIATA Members at CAI Meetings and
          The PSCG was created as an advisory                                                               via the FIATA Document Delivery Sys-
          body in the first instance, to explore          The World Customs Organization (WCO),
                                                                                                            tem (FDDS) on various developments
          the evolution of the Authorised Eco-            established in 1952, is an independent inter-
                                                                                                            and on issues relating to security, safety
          nomic Operator programme (AEO),                 governmental body representing the global
                                                                                                            risks, cross-border trade and e-commerce.
          possible roles for the WCO and the chal-        Customs community. Its mission is to im-
                                                                                                            Members benefit from this informa-
          lenges ahead for the implementation of          prove the effectiveness and efficiency of the
                                                                                                            tion for advocacy toward their National
          the SAFE Framework of Standards, to             Customs administrations of its 183 mem-
                                                                                                            Regulators.
          which AEO is instrumental. It also dealt        bers. The WCO develops international stand-
                                                                                                                 FIATA Members and CAI Delegates
          with a variety of international trade and       ards and promotes cooperation in the field of
                                                                                                            are encouraged to share their experiences
          Customs matters, and FIATA has taken            the safety and security of the cross-border
                                                                                                            on Customs-related issues such as AEO,
          part in all its deliberations since 2008,       flow of goods, trade facilitation, revenue col-
                                                                                                            the SAFE Framework of Standards,
          through CAI. The PSCG objective is to           lection and protecting society.
                                                                                                            e-commerce and the implementation of
          create a framework to understand the fu-                                                          the Revised Kyoto Convention.

                                                                                                               No. 131 | March 2020   FIATA REVIEW   11
PERSONALLY

VICE PRESIDENT GALO MOLINA AGUILAR

“Supporting FIATA with a
Latin American point of view”
I was born in Quito, Ecuador, on 6th October 1966, and studied economics at Universidad Laica
Vicente Rocafuerte de Guayaquil, in Ecuador. I graduated with a master’s degree in Senior Manage-
ment in IDE. I am married and father of four children. Being active as an employee for many years,
I became an entrepreneur and now own a group of companies dedicated to global logistics, inclu-
ding freight forwarding, trucking, warehouse storage, customs clearance services and trade. I have
also been a member and part of the administration of important associations in logistics, such as
ASEACI, IATA, FIATA and ALACAT.

If you had not joined the trans-                                                                    What are some of the changes
portation business, which profes-                                                                   that you’d like to see?
sion would you most like to have                                                                    I’d like to have a committee where all
chosen (and why)?                                                                                   freight forwarders and shipping compa-
As an economist, I was always interested in                                                         nies have a space to talk about important
international commerce, especially the de-                                                          issues, since shipping companies are be-
velopment of countries based on free trade.                                                         coming our most aggressive competitors.
If I could have chosen another profession,
I would have wanted it to be in banking,                                                            Looking at the future, what ad-
since you have a perspective there on the                                                           vice would you give a young per-
progress of different businesses.                                                                   son joining the industry today?
                                                                                                    To have integrity, courage, ethics and per-
So what fascinates you about the                                                                    severance to achieve your goals. Specially,
freight forwarding industry?                                                                        to understand that the combination of
Each day is different, the essential capa-                                                          these is beneficial.
city to adapt to constant change enables
                                              Photo: FIATA

you to learn about countries, products,                                                             Generally speaking, what, in your
cultures and how the logistics business                                                             opinion, has been mankind’s best
connects the world.                                     On board – Galo Nicolas Molina Aguilar.     invention (and why)?
                                                                                                    Aircraft, technology, such as computers,
And what was your motivation to                         gress in India captured all of my atten-    the internet or cell phones, because when
accept your post with FIATA?                            tion, widening my knowledge of FIATA        I started working for airlines, traders, and
After becoming the President of ASEACI,                 as well as the idea of supporting this      aircraft industries, such as Mitsui & Co.,
and later of ALACAT, the FIATA Con-                     noble institution with a Latin American     all we used was telex and faxes, and that
                                                        point of view.                              made everything slower. Right now, busi-
                                                                                                    ness is immediate. What used to take
“Freight forwarding                                     How do you view the state of the
                                                        industry today?
                                                                                                    weeks, today is done in a single day.

is the capacity to                                      Everything changes and this industry is
                                                        no exception. The best way to be success-
                                                                                                    Which famous person would you
                                                                                                    like to have met (and why)?
adapt to constant                                       ful is to adapt to these changes, and to    I would like to have met my grandfather, a
                                                        make good decisions – many of which are     recognised Ecuadorian war hero. Unfortu-
change.”                                                made by emotion or instinct.                nately, he died fighting in a war my coun-

12   FIATA REVIEW   No. 131 | March 2020
PERSONALLY

try fought with Peru in 1941. Also, my       FIATA SECRETARIAT’S NEW RECRUITS
father was an air force pilot who died

                                             New faces on board
in a crash that left only twelve survi-
vors. This legacy is what has influenced
my character right until today.

Do you have any unfulfilled                   The new Secretariat has recruited international trade law, pro-
wishes (be they professional                 fessional development and training and information technology
or personal)?
One of my great unfulfilled wishes           staff. Also Ms Simantirakis and Ms Villa form part of the remod-
is to create a foundation to help            elled team that is currently preparing the Headquarters’ Session,
schools and high schools that honour         scheduled for late March this year in Zurich.
my grandfather through his name –
Major Galo Molina.

What plans do you have for the
future or for your retirement?
                                             Welcome Ms Simantirakis
I’ve never thought of retiring. From
Japanese people in Mitsui I learned
that “in Japan, companies take care
                                             E   mmanuela Simantirakis first joined
                                                 FIATA in mid-January this year.
                                             She grew up in Switzerland but has a
of you; in Europe, governments take          Greek background. Emmanuela has
care of you; but in America, you have        had the chance to gather experience in
to take care of yourself.”                   the human resources sector, as well as
                                             in the fitness industry. She also spent
                                             three years in Australia, where she stud-

                                                                                                                                           Photo: FIATA
 A BRIEF OVERVIEW OF                         ied fitness and sports management.
 GALO MOLINA AGUILAR’S                                Emmanuela is fluent in English,
 PROFESSIONAL CAREER                         German and Greek and has a basic              Meet Ms Simantirakis at HQ in Zurich.
                                             understanding of French. She enjoys
                                             travelling and learning about other cul-      national environment that FIATA offers
                                             tures, and is also passionate about fit-      and is looking forward to meeting you
 Vice President                              ness as well as music. She thoroughly         at the Headquarters’ Session in Zurich,
 FIATA – International Federation of         enjoys being able to work in the inter-       Switzerland, in March 2020.
 Freight Forwarders Associations
 October 2019 – to this day

                                             Welcome Ms Villa
 Vice President / Past President 2015–2019
 ALACAT                                      V    anessa Villa, who grew up in Switz-
                                                  erland and lives in Zurich, started
                                             working for FIATA in November 2019.
 May 2015 – to this day
                                             Despite her young age she has already
                                             gathered a good mix of experiences
                                             from various jobs – in the social and jus-
 Director / Past President 2004–2007         tice sectors as well as in the construction
 ASEACI                                      industry. In her new position she will be
                                             able to use her fine command of English,
                                                                                                                                         Photo: FIATA

 2018 – to this day
                                             which she acquired in a language ex-
                                             change in Cape Town, South Africa.
                                             Vanessa is fluent in English and Ger-         Meet Ms Villa at the HQ in Zurich.
 President                                   man and understands French. Her pas-
 Planet Cargo Group                          sions are books and travelling, so when       She’s now looking forward to meeting
 1998 – to this day                          she heard that she missed 2019’s World        FIATA’s members at the Headquarters’
                                             Congress in Cape Town she was a bit sad.      Session in Zurich in March 2020.

                                                                                              No. 131 | March 2020   FIATA REVIEW   13
RUBRIK

Happy Birthday!
FIATA congratulates six well-known delegates on their birthdays.
We wish them many more years of good health and happiness.

                                                                  Mr. Sarosh J. Nagarvala (In-
                                                                  dia) celebrated his 80th birth-
                                                                  day on 13th January 2020.
                                 Mr. Han Van Os (Nether-          He has been a FIATA Delegate
                                 lands) celebrated his 75th       since 1987, was a Vice Presi-
                                 birthday on 3rd January          dent from 1989 –1990 and
                                 2020. He has been a FIATA        again in 1994, and Treasurer
                                 Delegate since 1986, was a       from 1994 –2005. He was
                                 Vice President from 1999–        Senior Vice President from
                                 2005, and has been an Hono-      2009–2011, and has been an
                                 rary Member of FIATA             Honorary Board Member of
                                 since 2007.                      FIATA since 2007.

                                                                  Mr. Heiner Rogge (Ger-
                                                                  many) is set to celebrate his
                                                                  70th birthday on 25th March
                                                                  2020. He has been a FIATA
                                 Mr. Tullio Albarelli (Italy)     Delegate since 2000 and was
                                 celebrated his 90th birth-       Chairman KG UIC/FIATA
                                 day on 19th January 2020.        and of the Working Group
                                 He has been a FIATA Dele-        Rail from 2004–2007. He was
                                 gate since 1981, was the Sec-    Vice President from 2007–
                                 retary General from 1989–        2009, and was Secretary Gene-
                                 1993, and has been an Hono-      ral from 2009–2015, and has
                                 rary Board Member of             been a Honorary Board Mem-
                                 FIATA since 1993.                ber of FIATA since 2015.

                                 Mr. Richard D. Gluck (USA)
                                 is set to celebrate his 70th     Mr. Ahmed Moustafa Ha-
                                 birthday on 13th March 2020.     med Khaleel (Egypt) is set
                                 He has been a FIATA Delegate     to celebrate his 55th birth-
                                 since 1999, was Chairman of      day on 25th March 2020.
                                 the Advisory Body Legal Mat-     He has been a FIATA Dele-
                                 ters from 2009–2019 and be-      gate since 2012, and became
                                 came a Vice President in 2019.   a Vice President in 2017.

14   FIATA REVIEW   No. 131 | March 2020
HERE & THERE / AGENDA

                        NE XT ED ITIO N
                                                      Forthcoming Events
                        MAY 2020

Bi-monthly magazine of FIATA, the International
Federation of Freight Forwarders Associations
Circulation 7,000 copies
Published by FIATA, the International Federation
of Freight Forwarders Associations
Articles written by outside contributors do not
necessarily reflect the views or policies of FIATA.
Intellectual property rights for contributed

                                                                                                     Foto: iStock/SeanPavonePhoto
material must be met by the contributors.
Editor
FIATA, the International Federation
of Freight Forwarders Associations
Schaffhauserstrasse 104
CH–8152 Glattbrugg / Switzerland
Telephone +41 43 211 65 00
info@fiata.com
www.fiata.com                                         26th – 28th March 2020
Advertising sales                                     Zurich, Switzerland
FIATA Secretariat, telephone +41 43 211 65 00
info@fiata.com                                        FIATA Headquarters’ Session
Production
Design and printing                                   19th – 24th October 2020
Swiss Professional Media AG, Basel
                                                      Busan / Republic of Korea
Copyright
No article may be reproduced by any means in whole    FIATA World Congress
or in part without the written permission of FIATA.
You can also read