Presentation to UNCTAD

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1 Presentation to UNCTAD Commission on Enterprise, Business Facilitation and Development 4th February 2008

2 GOVERNMENTS AND INSTITUTIONS SERVICES SGS TRADE FACILITATION SERVICES

3 SGS Société Générale de Surveillance SGS, Place des Alpes 1, Geneva SGS was founded in Rouen in 1878 First registration as Société Générale de Surveillance in Geneva in 1919 Core activities: - Inspection, verification, testing and certification services - Foreign trade facilitation, Customs modernization, trade protection and fraud prevention Clients: International organisations, Governments, private sector World leader : employees; more than 1000 offices and laboratories in 140 countries Revenue 2007: CHF 4.37 billion employees in North and Latin America employees in Europe, Middle Asia and Africa employees in Asia Pacific region

4 SGS Business Lines Agricultural Automotive Consumer Testing Environmental Industrial Life Science Minerals Oil, Gas & Chemicals Systems and Certification Governments & Institutions

5 SGS to Governments References Since 1963 SGS has provided services to Governments of over 50 countries Positive feedback received from : World Customs Organization National Customs Authorities - Clients World Bank International Monetary Fund National Trade and Investors associations

6 SGS to Governments - PSI From 1963 to 2000 the main service provided by SGS was Preshipment inspection (PSI) of all imports in the various countries of export around the world PSI programmes were signed with Governments (Ministry of Finance, Ministry of Trade, Central Bank) and were enforced by a decree Under a PSI programme SGS is required to inspect goods in terms of quality, quantity, to assess Customs data (value, classification) and to report the amount of duties & taxes For countries with Foreign Exchange control, SGS was often required to check that prices were in line with prevailing export market prices

7 SGS to Governments New line of services The WTO liberalization and the globalisation of economies have created a new competitive environment not only for the private sector Since 2000, SGS is providing new packages of services which include the use of technology such as sea cargo scanners, IT platforms, GPS tracking systems in combination with operation and when required financing of the project on a Build-Operate- Transfer (BOT) basis These services are designed to provide local field assistance to Customs Authorities and other Government Agencies in their increasingly complex tasks Issues such as Trade Facilitation, Revenue protection, National security, Protection of Consumers health and safety, Protection of local industry are all covered by the various services provided by SGS

8 SGS Profiler A Risk Management Service A Knowledge-based risk database Based on historical and factual knowledge of malpractices in trade transactions. This information is maintained in a series of risk databases by professional trade analysts. Matching with database Profiler captures and filters new transaction data and compares the key attributes of that data with the risk information stored in the risk databases. Benefits: Rewards Compliant Trade (green channel) Targets transactions with risk Determines best intervention depending on level of risk associated with consignment Used with other services, scanners, PSI Powerful decision making tool 1. R e q u e s t P r o f ilin g 2. R e p lic a te T r a n s a c tio n D a ta 3. P a r s e T r a n s a c tio n a n d C o m p a r e to R e f e r e n c e D a ta 4. G e n e r a te R is k M e s s a g e s 5. S u b m it M e s s a g e s P R O F I L E R C lie n t 1 2 T r a n s a c tio n 3 R e f e r e n c e tr a n s a c tio n 5 R e s u lt 4

9 Cargo Scanners Fast and Non Intrusive Inspections SGS - Build-Operate-Transfer (BOT) - Leasing - Operation & Maintenance - Advisory services Benefits: Fast inspection of sea & airshipment containers (a few minutes) Can be used for security purposes (detection of explosives & narcotics, WMD) Can be enhanced with radiation detection devices In line with WCO recommendations and US/International Security Initiatives (CSI Ports) Optimisation of Customs resources Greater efficiency SGS currently operates on BOT, Leasing or O & M contract basis sea and air cargo scanners in 9 countries in Africa, Latin America, Europe and the Middle East

10 TradeNet An Integrated Information Network Concept first developed in Singapore in the 1990s, Sometimes referred to as Community System or Single Window TradeNet lies on bringing the various members of the trading community into an integrated network where information is processed in a timely and accurate manner The objective is to eliminate paper exchange which is time consuming, prone to errors and fraud and expensive Benefits: Trade facilitation, reduction in clearance time Transparency, secured exchange of information Enhance Revenue for Governments Ministries Traders Shipping Agent Inspection Company Port Authority Controlling Agencies Customs Ministries Traders Shipping Agent Inspection Company Port Authority Controlling Agencies Customs SGS implemented and operates TradeNet in Ghana, Madagascar, Ivory Coast (implementation phase) Banks Dep of Statistics Banks Dep of Statistics Freight Station Freight Station Manual exchange of information Exchange of information with TradeNet

11 Transit Tracking A Real Time Tracking System A real time tracking system e.g. for goods in transit Use of GPS/Satellite or GPS/GSM to send vehicle position to a Central Control Room Used to detect diversion of consignments Used for Security purposes SGS implemented and operates a tracking system in Ghana for goods in transit

12 Product Conformity Assessment Prevents the importation of unsafe, sub-standard and/or counterfeit goods that might affect consumer s health, safety or security Prohibits unscrupulous traders from taking advantage of the gaps in the Quality Control infrastructure Facilitates customs clearance process Reduces the risk that the domestic market becomes the dumping ground for nonconforming products Protects the local industry from the use of deceptive trade practices and unfair competition Provides information about the product for a more accurate customs classification SGS has experience in Product Conformity Assessment with 13 Governments in Africa, Latin America, Asia and the Middle East

13 SGS ValiTrade Compliance with Import & Export Regulations 10% 16% 24% ValiTrade consists in checking for selected transactions the following elements: 3% 29% 18% Inexistent or not located seller Seller does not recognize the transaction / commercial relationship Invoice altered Inexistent or not located Producer in the declared country Goods not produced in the declared country or CoO altered Uplift or Reduction on declared value Seller or Buyer existence Country of origin Authenticity and accuracy of documents Customs classification Price verification Non-conformity reports: 11,280 over 56,634 transactions verified SGS has a ValiTrade contract in 2 Latin American countries, Mexico and Guatemala

14 Other TransitNet A comprehensive, commercial and pan-european Customs transit service Advance Cargo Information System A web-based application developed by SGS to allow timely monitoring of the whole traffic of imported/exported goods Bank Documentation Control For the monitoring of Exports and FOREX repatriation Anti-Illicit Trade and Brand Protection A programme designed to assist Customs Authorities and the Private Sector in their fight against counterfeited goods NGO Benchmarking / Aid Efficiency Independent 3rd party verification and monitoring

15 Thank You

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