Learn. Share. Achieve.

Transcription

1 Learn. Share. Achieve. More Effective Data Analytics for Trade Miami Beach, Florida May 6, U.S. Cross-Border Tax Conference

2 Notices ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY KPMG TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN. You (and your employees, representatives, or agents) may disclose to any and all persons, without limitation, the tax treatment or tax structure, or both, of any transaction described in the associated materials we provide to you, including, but not limited to, any tax opinions, memoranda, or other tax analyses contained in those materials. The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser. 2

3 Data & Analytics Driving Value through Trade and Customs

4 Presenters Amie Ahanchian Managing g Director KPMG s Trade and Customs practice Washington, DC Tom Barnes CEO Integration Point Charlotte, NC Scott Weisbecker Partner KPMG s Tax Practice New York, NY George Zaharatos Managing Director KPMG s Trade and Customs practice Atlanta, t GA 4

5 Data & Analytics Driving Value through Trade and Customs The possibilities of Big Data How do we currently use Data and Analytics (D&A) in trade? The future of D&A in trade management Communicating opportunities and risks through D&A Benchmarking Results Q&A 5

6 The Possibilities of Big Data

7 The Possibilities of Big Data Five Key Points for Generating Business Value From Data & Analytics Business has fundamentally changed your competitors (known and unknown) are harnessing data to drive growth and profitability now. A data-driven organization embeds the ability to harness data in every aspect of its business, including how decisions are made, how processes are operated, and how people are enabled. Data is raw material that becomes valuable through the use of analytics. Big Data requires advanced analytics and technology to capture the value. Data and analytics is not simply about technology. A business problem orientation helps to zero in on the right data and apply the right analytics to generate tangible value. New opportunities, new risks while data is a valuable asset, new uses of it pose new risks organizations need to carefully balance them.

8 How Do We Currently Use D&A in Trade? Amie Ahanchian Managing Director KPMG Tom Barnes CEO Integration Point

9 How Do We Currently Use D&A in Trade? Effective analysis of data can contribute to a robust program for adding value Areas supported through data analysis Cost Optimization Compliance Process Efficiency Metrics Reporting Free Trade Agreements First Sale Foreign Trade Zones Duty Drawback Value Unbundling Entry Consolidation Self Filing Broker Consolidation Periodic Monthly Statementst t Defective Merchandise Special use provisions Minimizing compliance risk Penalty Avoidance Bad Press Third party service providers costs Avoidance of criminal charges Maximizing FTAs Refunds on downward TP adjustments Accurate cash-flow Reduction of costs relating to audits and information requests Managing resources Identifying internal personnel savings Managing Faster Customs Clearance Business growth M&A support Interdepartmental communication Value Reconciliation Business certainty Reporting identification of opportunity and risk to management Managing FTE headcount to match business needs Mitigating risk Metrics Recordkeeping Global consistency Faster identification of opportunity and risk

10 How Do We Currently Use D&A in Trade? Where do we get the data? Trade data may be available from government authorities, internal systems, and service providers. ITRAC/ Gov Data (Select Countries) CIT Cases (U.S.) ERP Data (Global) Customs Broker Data (Global) FIRM (CA) GTM Data (Global) AES (U.S.) Government Statistics (Global) AMS-based 3 rd party data (U.S.) Public databases (Global) WMS Data (Global) Correlating the data among sources and with other external data can drive value!

11 How Do We Currently Use D&A in Trade? Where do we get the data? Disparate Systems? How Many? Different by: Division? Geography? Broker? Other LSPs? Trade Program? What s correct? What isn t? You can t analyze what you can t see How do you get Started?

12 How Do We Currently Use D&A in Trade? Common Misconceptions I have to fully control things first I need to push all information out I need to get all of the data perfect first I need to flip the switch everywhere at once Unstructured data does not help me It will take too many internal resources I m going to wait until a standard is created

13 The Future of D&A in Trade Management

14 The Future of Data Analytics in Trade Management If you could access all of your data What could you do? Ensure compliance Measure KPIs 14

15 The Future of Data Analytics in Trade Management Post Entry Validation - Optimized Post Entry Validation KPIs

16 The Future of Data Analytics in Trade Management If you could access all of your data What could you do? Ensure compliance Measure KPIs Improve efficiency 16

17 The Future of Data Analytics in Trade Management Improve Efficiency US Exports US Classification UK Broker EU Korea FTA CN Broker NAFTA BOMS CN Classification MX Maquila BR Broker ZA Imports AU Classification Inefficient

18 The Future of Data Analytics in Trade Management Assimilate Data

19 The Future of Data Analytics in Trade Management Analyze Data

20 The Future of Data Analytics in Trade Management Leverage Data

21 The Future of Data Analytics in Trade Management If you could access all of your data What could you do? Ensure compliance Measure KPIs Improve efficiency Find savings opportunities 21

22 The Future of Data Analytics in Trade Management Potential Savings Opportunities Potential Duty Savings Preference Program Eligibility (FTAs) Duty Deferral Programs Duty & Supply Chain Benefits ENTRY SUMMARY BY COUNTRY BY HS BY MOT BY BROKER ETC GLOBAL ENTRY DATA GLOBAL TRADE CONTENT 167 COUNTRIES TARIFF SCHEDULES TRADE AGREEMENTS IMPORT RESTRICTIONS EXPORT RESTRICTIONS VAT RATES PREFERENTIAL RATES ETC

23 The Future of Data Analytics in Trade Management Where are we headed using data analytics in trade? Most organizations are now in process of developing data-driven organizations by: Collecting data globally Correlating and analyzing data elements from various sources Implementing global l trade management solutions The future of D&A in trade is zeroing in on the right data and applying the right analytics to generate tangible value Auditing of trade activity will be enhanced through advanced risk profiling Operational compliance dashboards to monitor and report risks and opportunities Collaboration among business support functions to collectively mitigate risk and increase opportunity (i.e., Operational Transfer Pricing)

24 The Future of Data Analytics in Trade Management Communicating data How data is communicated greatly influences management decisions If your data findings are not clearly communicated, your analysis may not have the intended effect on your audience. Graphics expedite and increase our level of communication and are an effective way to influence an audience.

25 The Future of Data Analytics in Trade Management Communicating data

26 Benchmarking

27 Benchmarking KPMG s Global D&A Benchmarking KPMG commission FT Remark to survey 144 CFOs and CIOs from major corporations around the world The responses from the August 2013 survey were aggregated in a report

28 Benchmarking Global Survey: How important is the use of data and analytics in your company s growth strategy? 2013 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 28

29 Benchmarking T&C Summit Survey: How would you best describe the role of data analytics in the success of your role in the future? Over 70% of respondents said: Data Analytics will be an integral part of the success in my trade role 2013 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 29

30 Benchmarking Global Survey: Have you taken any of the following steps to integrate data and analytics: 2013 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 30

31 Benchmarking Global Survey: What has your business use of data and analytics focused on? 2013 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 31

32 Benchmarking T&C Summit Survey: Describe the top 3 things you do with trade-related data in your role? Auditing activities and targeting compliance issues Targeting or managing cost savings Generate Statistics/ Trade Metrics/ KPIs to monitor performance and report downstream 2013 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 32

33 Benchmarking T&C Summit Survey: Does your company have access to reliable global data (e.g., global customs duties paid, global VAT paid, global customs savings)? 40% of respondents said No T&C Summit Survey: What strategic planning area do you believe would derive the greatest benefit via data analytics in the future? 70% of respondents said customs valuation, including related party pricing and transfer pricing 2013 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 33

34 Benchmarking Global Survey: What are the biggest challenges your company has faced regarding data analytics specifically? 2013 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 34

35 Benchmarking Insights The benefits of moving to a fully embedded D&A Strategy Use data to manage exposure to risk in marketing, supply chain and finance Allow flexibility and provides ability to respond to sudden changes in direction Make business decisions based on deeper insight and keener analysis Identify opportunities and properly p exploit them through predictive analysis A company s D&A strategy that does not consider trade is likely to fall short of strategic objectives 2013 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved. 35

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37 2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International Cooperative ("KPMG International"). 37