BEXA Brochure 1007

BExA MEMBERS
ABC International Bank
T: 020 7776 4000; [email protected]
ABN AMRO Bank
T: 020 7678 6047; [email protected]
ACE European Group Ltd
T: 020 7173 7194; [email protected]
AgustaWestland
T: 01935 703882; [email protected]
AIG Global & Political Risk
T: 020 7954 8832; [email protected]
Airbus UK Ltd
T: 0117 936 4657; david [email protected]
Alperton International Ltd
T: 020 8795 5600; [email protected]
ALSTOM Ltd
T: 01788 545607; [email protected]
ANZ Bank
T: 020 3229 2121; [email protected]
AON Trade Credit
T: 020 7882 0365; [email protected]
Atradius
T: 02920 824000; [email protected]
BAE SYSTEMS plc
T: 01252 384846; [email protected]
Bank of Scotland
T: 020 7012 9252; [email protected]
Barclays
T: 020 7773 4081; [email protected]
T: 020 7116 3693; [email protected]
Barlow Lyde & Gilbert
T: 020 7643 8479; [email protected]
BAT (UK and Export) Ltd
T: 02380 777155; [email protected]
Berry Palmer & Lyle
T: 020 7375 9600; [email protected]
Black Country Metals Ltd
T: 01384 893893; [email protected]
BlueFinger Ltd
T: 01749 834952; [email protected]
BNP Paribas
T: 020 7595 4784; [email protected]
Bombardier Aerospace
T: 0151 201 9844; [email protected]
British Arab Commercial Bank
T: 020 7648 7777; [email protected]
Calyon Corporate & Investment Bank
T: 020 7214 5517; [email protected]
Camara Ltd.
T: 020 7630 8477; [email protected]
Clyde & Co
T: 020 7623 1244; [email protected]
Coface
T: 020 7325 7500; [email protected]
Colomendy Limited
T: 01490 412041; [email protected]
Commerzbank
T: 020 7653 7034; [email protected]
Converteam
T: 01788 563580; [email protected]
Corus UK Ltd
T: 020 7717 4538; [email protected]
DCD Trade Services Ltd
T: 020 7324 2000; [email protected]
Deutsche Bank AG
T: 020 7545 4540; [email protected]
Ducroire Delcredere SA NV
T: 01932 268442; [email protected]
EIL Services Ltd
T: 0141 225 0820; [email protected]
EULER Hermes UK plc
T: 020 7860 2868; [email protected]
Europe Arab Bank plc
T: 020 7315 8500; [email protected]
Exporters Insurance Company (Europe) Ltd
T: 020 7256 3920; [email protected]
French Connection Group plc
T: 020 7036 7080; [email protected]
Habib Bank AG Zurich
T: 020 7452 0263; [email protected]
Horizon Leisure Products Ltd
T: 01202 874874; [email protected]
HSBC Bank plc
T: 020 7992 2555; [email protected]
HSBC Insurance Brokers Ltd
T: 0121 455 2541; [email protected]
Ince & Co
T: 020 7481 0100; [email protected]
JCB Sales Ltd
T: 01889 593521; [email protected]
Keith Johnson Consulting Ltd
T: 01483 267492; [email protected]
Kirans (London) Ltd
T: 020 7608 0299; [email protected]
LloydsTSB Bank
T: 020 7626 1500; [email protected]
London Forfaiting Company
T: 020 7618 1050; [email protected]
London & Scottish International Ltd
T: 01483 894650; [email protected]
Mabey & Johnson Ltd
T: 0118 9403921; [email protected]
MAN B&W Diesel Ltd
T: 0161 419 3129; [email protected]
Michael Possener – Export Consultant
T: 01923 855220
Moorim UK Ltd
T: 01483 215160; [email protected]
Motorola Ltd
T: 01256 790470; [email protected]
Newmor Group Ltd
T: 01938 552671; [email protected]
Newstead International Ltd
T: 020 7228 3033; [email protected]
Omni Bridgeway Emerging Markets Ltd
T: +31 70 338 4343; [email protected]
Rattner Mackenzie Limited
T: 020 7750 9522; [email protected]
R A Watts Ltd
T: 020 8647 1073; [email protected]
Raytheon Systems Ltd
T: 020 7569 5544; [email protected]
Rolls-Royce Capital Ltd
T: 020 7227 9076; [email protected]
The Royal Bank of Scotland plc
T: 020 7085 8754; [email protected]
Selex Communications Ltd
T: 01245 275562; [email protected]
Selex Sensors and Airborne Systems
T: 01634 826217; [email protected]
Siemens Industrial Turbomachinery Ltd
T: 01522 584420; [email protected]
Sovereign Star Trade Finance Ltd
T: 020 3144 0112; [email protected]
Standard Chartered Bank
T: 020 7280 7823; [email protected]
Stemcor Ltd
T: 020 7775 3606; [email protected]
Sumitomo Mitsui Banking Corporation Europe Limited
T: 020 7786 1506; [email protected]
Telent plc
T: 02476 562537; [email protected]
T G Powell - Export Consultant
T: 07734 329160; [email protected]
Thales UK
T: 020 7904 2240; [email protected]
Wallace Cartwright & Co Ltd
T: 020 7629 2476; [email protected]
BE xA
BE xA
Representing the best in British Exporting
REVIEW
2006 - 2007
BExA the British Exporters Association, is a
long-established, independent, UK trade
association which brings together the UK’s
export industry and the City: capital goods and
other manufacturers, export houses and their
banking, credit insurance, and lawyer
associates.
Wholly membership driven, we take an interest
in all aspects of exporting.
Representing members’ interests
On day-to-day issues, particularly relating to
export credit insurance and in-depth policy
issues such as developments in international
contract law.
Networking events
Notably the Annual Lunch held each autumn
and the Association’s Spring Reception.
BExA Guides
Written by exporters with assistance from
others, four Guides have been produced to date
including this year: Letters of Credit - UCP600
Update. In addition, in October 2007 BExA is
issuing a Guide to Short Term Export Credit
Insurance.
Information dissemination
Members receive minutes of Council and other
meetings, focussed e-mailings on specific
topics, and a newsletter.
www.bexa.co.uk
BExA Workshop
The first Association Workshop was held in
2007. It covered UCP600 and AEO – Authorised
Economic Operator.
British Exporters Association
Broadway House
Tothill Street
Westminster
London SW1H 9NQ
Tel: 020 7222 5419
Contact:
Hugh Bailey, Director
[email protected]
BExA Young Exporter of the Year Award
Now in its third year, this Award provides
recognition for those under 30 wishing to
develop a career in exporting.
Discounts
Are available to members on many leading
conventions and seminars.
COUNCIL
as at 1st September 2007
Council manages the affairs of the Association. It consists of BExA’s elected
Officers, Committee Chairmen and up to ten elected members.
Rt.Hon Sir Richard Needham
President
Richard Hill
Chairman
President:
The Rt. Hon. Sir Richard Needham
Chairman:
Mr Richard Hill
(BAE SYSTEMS plc)
Deputy Chairman:
Mrs Susan Ross
(Aon Trade Credit)
Vice-Presidents:
Mr Richard Heyhoe
Mr Keith Johnson
Mr Terry Partridge
Mr John Tyler
(ANZ Bank)
(Keith Johnson Consulting Ltd)
(R A Watts Ltd)
(ALSTOM Ltd)
Treasurer:
Mr Malcolm Booth
Chairman, Banking Committee:
Mrs Debby Bass
(Calyon Corporate & Investment Bank)
Chairman, Industry Committee:
Mr Robert Scallon
(Thales UK)
Chairman, SME & Trading House Group:
Mr Terry Partridge
(R A Watts Ltd)
Susan Ross
Deputy Chairman
Elected Council Members:
Mr Bob Bruce
Mr Colin Heritage
Mr Clive Jones
Mr Simon Jones
Mr Andrew Neill
Mr Alan Rides
Mr Ray Zabarte
(Raytheon Systems Ltd)
(Stemcor)
(Lloyds TSB Bank)
(ABN AMRO Bank)
(Newstead International Ltd)
(Alperton International Ltd)
(Barclays Bank)
SECRETARIAT
Director:
Mr Hugh Bailey
Assistance, on a part-time, consultancy, basis is provided by
Mr Malcolm Booth, Treasurer.
ACCOUNTANTS
Debby Bass - Chairman
Banking Committee
BExA’s accounts are reviewed annually by Myrus Smith (Sutton).
EXECUTIVE COMMITTEE
Assisting Council, the Executive Committee attends to BExA business on a more
day-to-day basis. It comprises the Chairman and Mrs S Ross, Mrs D Bass, Mr R
Scallon, Mr T Partridge, Mr J Tyler and Mr R Heyhoe.
ASSOCIATION STRUCTURE
Robert Scallon - Chairman
Industry Committee
Terry Partridge - Chairman
SME & Trading House Group
Reporting to the Council are the Association’s three sectoral committees,
reflecting the main interests covered by BExA. They are:
- The Industry Committee, which attends to the interests of BExA’s
manufacturing members and those with a related interest, in particular the
export credit insurance brokers.
- The Banking Committee, which provides a forum for discussing issues
raised by BExA’s bank members, in particular relating to export credit
insurance. It is also in a position to address any trade finance matters
raised by other BExA members.
- The SME/Trading House Group is a standing Committee for BExA’s
trading/export house members.
Information
Dissemination
& Participation
in the Export
Scene
BExA Review
BExA’s Mission is ‘to support, represent and promote the
interests of the UK exporting community’.
TOPICS COVERED IN THE YEAR
Letters of Credit
Members of BExA receive
minutes of Council and
other meetings, focussed
emailings are sent to
members on ECGD and
Nigeria, in particular.
BExA’s Industry Committee
was up-dated on the work of
UK Trade & Investment at a
meeting with Martin Cook,
International Trade Director
for London, UKTI on 26th
September 2007
BExA has printed a Wallchart
summarising INCOTERMS
2000 under licence from ICC the International Chamber of
Commerce, Paris.
Global
Trade
Review
includes commentary from
members. BExA’s Chairman
serves on their editorial
board. BExA also has a
regular
column
in
International Trade Focus
(formerly Export Focus).
BExA submitted a paper in
response to the DTI/BERR’s
consultation in summer 2007
on Simplifying Business
Support.
To assist HM Courts Service
BExA has undertaken a
survey of members’ usage
of choice of law provisions
in international contracts.
Most respondents include
such a provision in their
international contracts.
Members attend meetings of
the Export Forum, which
covers matters relating, in
particular, to Letters of Credit.
BExA is a member of ICC UK
2007 was the year of the Letter of Credit!
BExA takes an ongoing interest in how L/C processes might be improved not least because of
the high rejection rate of documents on first presentation. The Association is grateful to Mr John
Lodge (Selex Communications) for a paper he prepared for the Industry Committee on this
matter. He concluded that exporters would benefit from greater awareness of information
contained in the SWIFT Formatting Guide. Taking up this point, BExA’s new ‘Guide to Letters of
Credit – UCP600 up-date’ (which was issued to all members of the Association) reproduces the
SWIFT codes as an appendix.
Letters of Credit: UCP600
The International Chamber of Commerce’s new Uniform Customs and Procedures for
Documentary Credits (UCP600) became operative on 1st July 2007. As BExA is a member of
ICC UK, copies of UCP600 were available to members at a discount.
The differences between UCP500 and UCP600 were advised to members in early 2007 by a
circular reproducing a note issued by Deutsche Bank. In addition, members attended a
presentation by Mr Gary Collyer, the architect of UCP 600, at ABN-AMRO bank on 30th March
2007.
For its part, on 13th June 2007 the Association published “The BExA Guide to Letters of Credit
– UCP600 Update”. Council is grateful to ABN-AMRO for their sponsorship of this Guide.
UCP600 was also discussed at BExA’s first Workshop, held on 13th June 2007. Presentations
given were: ‘Key Features’ (Stephen Tricks, Clyde & Co.); ‘a banker’s perspective’ (David Berneye,
Barclays Bank); ‘a trade commentator’ (Jon Walden, Crown Agents).
Authorised Economic Operator (AEO)
In response to global terrorism and at the instigation of the USA, the World Customs Organisation
and 113 countries have signed up to a global Framework of Standards for supply chain security.
The EU is implementing these recommendations through the Authorised Economic Operator. In
the UK, AEO is administered by HM Revenue & Customs. Exporters, importers and other
companies in the international supply chain will not be legally required to become AEO certified
but those that do should receive a number of benefits including quicker and more predictable
customs clearance. HMRC will begin granting AEO certification from 1st January 2008.
To enable members to find out more, AEO was discussed at BExA’s Workshop on 13th June.
Presentations covered: ‘What is AEO and to whom does it apply’ (Phil Burkett, HM Revenue &
Customs); ‘What are the requirements for implementing it?’ (Franky de Pril, Deloittes); an
exporter’s view (Michelle Kocaoglu, Mitsubishi Corporation (UK) plc).
Export Controls
BExA believes non-defence exporters would benefit from a greater awareness of dual-use and
other export control issues, and, in particular, regarding the impact of American legislation on
sales of goods containing USA components to, for example, Iran. BExA is represented on the
Export Control Advisory Committee by Mr Nigel Ford (Siemens Turbo-Machinery).
BExA Workshop
BExA’s first Workshop, held on 13th June 2007 before the Spring Reception, was very well
received. There was a capacity attendance in excess of 100. Those present heard interesting
presentations on UCP600 and Authorised Economic Operator. Admission was free to members
thanks to sponsorship from Deloitte and Clyde & Co.
ECGD
ECGD remains of interest although its level of business has declined.: in 2006-07 the value of guarantees and insurance policies issued
was £1.8bn, a 19% fall on the previous year. BExA stresses the need for an efficient, internationally competitive, ECGD. There is no
comparable private sector alternative for very long and large exposures; overseas buyers often make the availability of ECA support a
requirement for bidding for contracts; government involvement in large projects often reassures overseas customers. Moreover, business
won with ECGD support (often by large companies) trickles down to suppliers and sub-contractors throughout the economy. Certainly, while
other countries maintain effective and very competitive ECAs the UK sells its exporters short by failing to deliver an equivalent level of
support.
BExA is engaged in a study with the CBI and the Society of British Aerospace Companies to ascertain whether exporters are familiar with
ECGD’s current facilities and whether it might attract more customers.
BExA considers it would assist ECGD if commission was paid to export credit insurance brokers. ECGD should test the position by paying
brokerage for a limited period.
Recent Positive Development: Foreign Content
In June 2006 ECGD issued a consultation paper on foreign content. BExA called for an increase in the foreign content percentage covered
by ECGD. Members were delighted to learn in June 2007, as a result of BExA’s intervention, that cover for foreign content would be
increased to 80%. BExA believes that the over-arching OECD provisions on local content should also be liberalised.
ECGD’s Financial Framework
On 1st July 2004 HMG advised that, after a period as a Pilot Trading Fund, a capitalised Trading Fund would be ‘vested’ in April 2007. On
26th June 2007 ECGD announced that “Ministers have now concluded that ECGD should not move to establish a Government Trading
Fund. Instead, a new Financial Framework is to be adopted” from 1st April 2008. Members note that a high degree of operational autonomy
for ECGD will be preserved under the new arrangement.
Meeting with Mr Graham Pimlott, Chairman, ECGD and other non-Executive Directors
On 22nd February 2007 BExA met Mr Graham Pimlott and the non-Executive Directors of ECGD for a wide-ranging discussion on ECGD
facilities. A subsequent exchange of correspondence was followed by a meeting with Mr Robin Mayer on 5th July. The following points were
covered:
Request for Tender Bond Cover: ECGD currently do not provide (unfair calling) cover for tender bonds. BExA contends that EGGD
should provide this support.
Offset Performance Bonds: At the meeting with Mr Mayer, BExA clarified the workings of an offset contract and, in particular, how the
risk to be covered would be normal unfair calling. BExA hopes that ECGD will provide cover for offset performance bonds.
Legal Risk Review: ECGD was undertaking a legal risk review of its products.
Bond Support: BExA continues to argue the case for HMG to support the issuance of bonds and guarantees by sharing the risk with
banks and insurance companies. The Association contends that good export business is turned away because bond facilities are either
unavailable or will detract significantly from a company’s day-to-day banking lines. ECGD has stated that it is open-minded about the
provision of such a facility but would welcome more input from SME exporters as to how they would benefit from such a facility. BExA
will arrange a meeting between SMEs and ECGD. In the meantime Atradius has introduced a bond issue support facility which will
provide banks with the security that will enable them to issue bonds on behalf of exporters.
BERNE UNION
International Union of Credit & Investment Insurers
BExA entered into a dialogue with the Berne Union secretariat on various topical issues such as the treatment of the uninsured portion
when an ECA writes off a country’s debt; the provision of bond guarantees; and the payment of commission for brokers. It appears that
Berne Union members have no common approach on these topics.
NIGERIAN DEBT WRITE-OFF
Last year’s Review referred to the 2005 Paris Club agreement with Nigeria and recorded that BExA contested ECGD’s view that creditors
had authorised the write-off, as opposed to further rescheduling, of the uninsured element of old ECGD Nigerian short-term debts. The
Association has obtained an Opinion on this matter from a leading Queen’s Counsel and will be discussing this topic further with ECGD.
Any member with debts that have been written off by ECGD should contact Hugh Bailey.
Other Issues
BExA continues to seek a long-awaited consultation paper on the UN Convention on Independent Guarantees and Stand-by Letters
of Credit from the new department of Business Enterprise & Regulatory Reform (BERR), formerly Department of Trade & Industry.
There is concern that Government appears to be resuscitating an interest in joining the UN Convention on the International Sales of
Goods (Vienna Sales Convention): it lacks the certainty of English contract law, which is much-used in international trade. BExA is
grateful for guidance offered by Mr Michael Possener on these Conventions, and generally on legal issues relating to international trade.
There is some concern amongst British banks regarding the weighting of ECAs’ supported lending in relation to Basel 2 and they are
pressing for guidance from the Financial Services Authority (FSA) regarding the zero-weighting of other major ECAs.
PUBLICATIONS
PRODUCED BY BExA
The BExA Guide Series
BExA has now published four Guides, with a fifth due to be
published on 18th October 2007. All have been edited by
Richard Hill, who has garnered the knowledge of
individual members. Those available from previous years
are: The BExA Guide to Letters of Credit (2003) [stock
nearly exhausted and now superseded by The BExA
Guide to Letters of Credit – UCP600 Update published
in June 2007]. Also in stock are The BExA Guides to OnDemand Contract Bonds (2004) and to Retention of
Title (2005). In October 2007 we will be publishing The
BExA Guide to Export Credit Insurance. All are
available free of charge to members thanks to sponsorship
– in the case of this year’s Guides from ABN-AMRO (guide
to LCs –UCP600 Update) and Euler Hermes (Export
Credit Insurance Guide).
ide,
e that this gu
‘It is my hop
f bankers
the advice o
written with
r exporters,
y exporters fo
b
lly
a
ti
n
e
s
s
but e
ference
nd helpful re
a
r
a
e
cl
a
e
will provid
…’
ur members
work for … o
ord
dham’s Forew
r Richard Nee
Update
Si
.
00
on
P6
H
C
.
U
Rt
–
e
from th
rs of Credit
tte
Le
to
de
ui
to the BExA G
Published on June 13th, Richard Hill introduces The BExA
Guide to Letters of Credit - UCP600 Update at the House of
Lords Summer Reception.
With the compliments of:
THE BRITISH EXPORTERS
ASSOCIATION
www.bexa.co.uk
Transport obligations, costs and risks
Seller
Carrier
Buyer
Risk Management. Marine Cargo Insurance.
Credit & Political Risk Insurance. www.aon.co.uk
Export clearance
Group 
Import clearance
Critical points
Departure
Under EXW, the seller minimizes his risk by only making the goods available at his own premises
BExA has reproduced
the ICC INCOTERMS
2000 Wallchart under
licence from the
International Chamber
of Commerce, Paris,
and with helpful
support from Aon.
EXW
EX Works
(…named place)
Group 
Carriage of goods
Carriage to be arranged by the buyer
Risks
Risk transfer from the seller to the buyer when the goods
are at the disposal of the buyer
Costs
Cost transfer from the seller to the buyer when the goods
are at the disposal of the buyer
Main carriage not paid by seller
Under F Terms, and under FCA unless otherwise agreed, the seller arranges and pays for the pre-carriage in the country of export
FCA
C
i
f
d
Carriage to be arranged by the buyer or by the seller on the
BExA COLUMN: INTERNATIONAL TRADE FOCUS
BExA has a regular
column in International
Trade Focus, formerly
Export Focus. Two of
the issues covered in
the last year were
'What is BExA?' and
the provision of credit
to overseas customers.
NETWORKING & SOCIAL EVENTS
Annual Lunch (Sponsor: Atradius)
BExA’s Annual Lunch on 4th October 2006 was held at The Mansion House in the City of London and was a sell-out. Our Chief Guest
was The Rt. Hon. The Lord Mayor, Alderman David Brewer CMG. A case of Juniper Green Organic London Gin was donated by London &
Scottish International Ltd as the prize for a raffle linked to a charity collection for the Treloar Trust to which guests contributed £2,330.
Spring Reception (Joint Sponsors: Coface and Aon)
There was a record attendance of 250 for BExA’s Annual Spring Reception, which was held on the Terrace of the House of Lords on
13th June 2007. Our host was again Lord Selsdon. Mr Patrick Crawford, Chief Executive of ECGD, stood-in as Chief Guest for the Rt Hon
Ian McCartney MP, Trade Minister, who was unable to attend due to illness.
Credit Insurance Dinner (Sponsor: Coface)
BExA held its usual dinner on the occasion of the IBC Convention on Insuring Export Credit & Political Risk on 26th February 2007. Guests
included Lars Kolte (President, Berne Union; Managing Director of EKF, Denmark); Topi Vesteri (Finnverra, Finland); John Salinger
(AIG Global); Patrick Crawford (ECGD); Tullio Ferrucci (SACE BT, Italy).
The Lord Mayor with the President and Chairman of BExA and Association guests.
BExA’S YOUNG EXPORTER OF THE YEAR AWARD 2007
This BExA Award seeks to
raise the profile of the
exporter and recognise
and encourage promising
young people wishing to
develop
a
career
in
exporting. The Winner of
BExA’s third Award was
Ms. Louise James (Corus
Tubes Energy Business).
Mr
Adam
Mammon
(Stemcor) was runner-up.
The prize was a cheque for
£1,000 and this year the
Winner also received a book
illustrated with cartoons
by Victor Lunn-Rockliffe
entitled “Drawing ECGD”.
Ms. Louise James of Corus Tubes Energy Business receives the BExA
Young Exporter of the Year Award from President Sir Richard Needham.
Left, Louise James with her mother and colleagues from Corus.