Savii Group warns CA companies over Transparency Act
The Savii Group, a spend management firm, is warning companies to pay closer attention to their vendors and suppliers in light of the recently enacted California Transparency in Supply Chains Act of 2010 (S.B. 657).
Beginning Jan. 1, 2012, all retailers and manufacturers doing business in California that have worldwide gross receipts of over $100 million will be required to disclose their auditing of vendors and suppliers.
Companies subject to the Act must clearly disclose on their websites the steps taken to evaluate their supply chain and address risks defined in the Act. These steps include audits, certification, internal accountability standards and training.
“The only way for a company to ensure and verify compliance is to start screening their vendors and suppliers,” said Gina Manis-Anderson, CEO of Savii Group.
Most companies find it difficult to keep track of and manage the complexities of ever changing state and federal compliance regulations. The most common are Sarbane's Oxley and Patriot Act. However, businesses must comply with many other state and federal regulations as well.
“Just trying to manage the certificate of insurance, licensing, credentials and stability of thousands of vendors and suppliers within a single data repository is a daunting task for most companies,” said Manis-Anderson.
“We help our clients develop an auditable process to ensure compliance with all applicable state and federal regulations through vendor screening. This process helps to protect brands and eliminates the risk of being levied hefty government fines for non-compliance.”
To find out more about vendor screening and S.B. 657 California Transparency in Supply Chain Act, please visit http://www.saviigroup.com.
Edited by Kevin Scarpati
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”