International commerce and export control
The Group is subject to numerous trade regulations, and must ensure compliance with all regulations for all flows of goods, whether tangible or intangible.
Context
The Group is subject to numerous regulations:
- Customs regulations governing the import and export of all goods, regardless of their nature, origin, value, use or mode of transport.
- Export control regulations that restrict transactions with certain countries for products, technologies, software or services. Special attention should be paid to dual-use technologies and products that are used for both civilian and military use.
Failure to comply with these regulations can have serious consequences for the Group: stopping certain flows, financial penalties, harm to its image, and in some cases incurring criminal liability for those responsible for these offenses.
Values and Guiding Principles
Values
The Group must be the guarantor of compliance with all regulations for all flows of tangible and intangible goods.
Michelin may in some cases adopt a more demanding policy to reduce the risks in its supply chain and facilitate the development of its activities.
For example: the AEO (Authorized Economic Operator) customs certifications for Europe and C-TPAT (Customs Trade Partnership Against Terrorism), its equivalent in the USA, allow the Group to benefit from simplified and more secure customs clearance procedures.
Guiding Principles
The Customs and Export Control function defines policies to ensure compliance with all of these regulations.
It relies on its regional and local network to implement these policies in various Group processes.
Every employee has a role to play in ensuring that their activities comply with these regulations.
Do: I must
- Systematically involve the Customs and Export Control teams in setting up a new industrial or commercial site, a new international flow or any operation that is not part of the standard processes of the Group.
- Follow internal Export Control training, in order to better identify risk areas and have the right reactions.
- Ensure that the standard export control clauses are inserted in contractual documents with customers.
- Adhere to the Group’s standards and, if necessary, contact the Customs and Export Control teams in case of doubts or questions from a supplier, a customer, a bank or any other partner concerning customs formalities or export controls.
Don't: I must not
- Use my personal luggage to transport professional equipment between two countries without first consulting the Customs and Export Control teams.
- Give a power of attorney to a customs broker (for the establishment of an export or import customs declaration).
- Pay a customs broker, transporter, or other partner to speed up border crossing or customs clearance.
- Initiate or participate in a transaction to a country prohibited by Group policy.
- Assume that I need not feel concerned by export control because military goods are not part of the scope of my function.
Practical case 1
To avoid paying customs duties, a customer explains to you over the phone that it is sufficient to add a handwritten note on the invoice indicating the origin of the product. They tell you that all your competitors are doing it. What do you do?
You contact the Customs teams. Any request aimed at reducing import customs duties (addition of a note on an invoice, reduction in value, including for free shipments, modification of the description of the product, of its country of origin or customs classification, etc.) must be validated with the Customs teams.
Practical case 2
You are in contact with a potential client located in a country to which sales are prohibited by Group policy. They offer to go through a third party in another country to circumvent the ban. What should you do?
You contact the Customs and Export Control teams. Even in the event of an indirect flow, you may be affected by export controls.
