How to cut down your import cost

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How to cut down your import cost

• Internatinal forwarder designated by KITAs RADIS
  
• representative logistics company associate
  with KOIMA
• Youngjun Logistic Co., Ltd
• Tel [phone]
• E-mail inquiry_at_greenconsol.co.kr
• Web page www.greenconsol.co.kr

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INDEX
Definition of INCOTERMS2000 What are FCL LCL
Consolidation?
The warehouse charges increased 6 times of LCL
cargoes
GCS(Green Consolidation System)
Sample The way to save costs of A company (
From L.A. to Pusan )
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Definition of INCORTERMS2000 INCOTERMS are
a series of international sales terms, published
by International Chamber of Commerce (ICC) and
widely used in international commercial
transactions. They are used to divide transaction
costs and responsibilities between buyer and
seller and reflect state-of-the-art
transportation practices. In accordance with
the changes of international transporting
pracitce, INCOTERMS2000 is amended and clear up
responsibilities of each principal, buyer and
seller with 13 terms. INCOTERMS 2000 recommend
that FOB, CFR, CIF term should be used FCA, CPT,
CIP respectively in order for clarifying
responsibilities between buyer and seller.
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Incoterms 2000
DDP

• Ex Work

DDU
CPT
CIP
FCA
DAF
DEQ
FAS
CFR
CIF
DES
FOB
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Incoterms and related costs.
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What are FCL LCL Consolidation ?
FCL (Full container Loading)
A type of fully loaded shipping, Single importer
uses its own container independently. The
importer, in port of discharge, has a right of
designation for container.
Single-Exporter
Single-Importer
E
(CY)
(CFS)
E
E
LCL (Less Container Loading)
A type of less container loading, because
importers are more than 2 importers, container
have to put into bonded warehouse and be cleared
customs.
Single-Exporter
I
I
E
I
I
E
E
(CFS)
(CFS)
(CY)
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Consolidation
Consolidation is a kind of LCL transporting
service. NVOCC provides a variety of importers
who have LCL cargoes with the best ocean rate and
schedule. Especially, in case of LCL importers
who want to have competitive product's price by
cut down importing costs, they can save costs
through consolidation.
E
I
Consol
De-consol
E
I
E
I
(Vessel)
(CFS)
(CY)
(CY)
(bonded warehouse)
E
I
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LCL Warehouse ratio (KCS reports) Government
allow that the bonded warehouse make their own
ratio by themselves instead of one tariff from
Jan. 1999. -But, lcl importer have to pay most
expensive storages bonded warehouse be nominated
by de-consolidator in Korea as they have no right
to choice/negotiate any ratio with warehouse
directly. LCL warehouse storage comparison
table (Increased 6 times) (unitK\)
Value USD20,000(Customs value Duty), 1 CBM,
Storage 3 days
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Incoterms Using Status ( LCL Cargo)
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Cost saving and Boomerang Effects
Lose a competative price
Reduced the cost
(-)
Warehouse charges
Reduced the cost
Increased the cost of product
Increased manufacturing cost
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GCS (Green Consolidation System) Traders
Obedience of Incoterms Rule and The Comparison
Their Trade Terms Shipper have to pay their
charges as per their trade terms. No other party
pass over any costs others except traders. SCM
provider keep the neutral zone in costs. Costs
have to its own visibility for active global
distribution. Open the market for small quantity
order for numerous items through total
reasonable logistics costs. Open Green
consolidation service routes as per clients
inquiry The Protection of environment through
the reversion, FCL to LCL
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Sample The way to save costs of A company (
From L.A. to Pusan )
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Expected Effects

• Importers can save importing costs by more than
  50.
• We provide importers with arrival notice on
  time. Through this service, Importers prepare the
  customs clearance in time and save some
  overcharged warehouse fee.
• Importers can know the cargo's status before
  being taken goods out of the warehouse. If
  necessary, importers can manage the time when
  does cargoes have to be released.
• We can make our clients free from complex
  logistics management and they concentrate on
  their business for marketing and planning by our
  assistance.
• 5. We can assist that importers don't have any
  trouble from misunderstanding and un-fulfillment
  of INCOTERMS2000.

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The costs saving in Standard Order Process
FC (Full container Loading)
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(Realized Example)

• According to Sales Planning, Collaboration
  Portal of Associated Company is constructed by a
  line of process to combine one system from
  product order to shipment, logistics, warehouse
  loading.

Pre-Order Set a Plan for Warehouse Operation
End products
KOREA
JAPAN
Inbound Load
Automatic Order by Demanding forecasting
Trucking
CHINA
Trucking
DOMESTIC
Sellers Factory Product/Output
Import Customs
Products Parts
Arrival
Buyer s Warehouse/Factory
Trucking
End products
HONGKONG
Business Office
Shipping
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Competitiveness in Exports through cost
saving Thank you. Question ?Answer
Leader of advanced logisticsYoungjin
Logistics Ltd.