International Logistics

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International Logistics

• Presented by
• Delhy Arias
• Marbell Lastra
• Maria J Zavala

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Definition of International Logistics

• It includes planning and actions related to the
  utilization logistic policies, systems, and/or
  procedures to meet requirements of one or more
  foreign governments, international organizations,
  or forces.

• The negotiating, planning, and implementation of
  supporting logistic arrangements between nations,
  their forces, and agencies.

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Government Influences

• Political Restrictions of Trade
• Tariffs
• Nontariff barriers
• Import quota
• Embargoes
• As of October, 2007, the United States has
  sanctions against China, Ivory Coast, Cuba,
  Democratic Republic of the Congo , Iran, Myanmar,
  Sudan, Syria, Venezuela, and Zimbabwe
• International Transport
• Cargo preference rules

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Challenges

• Economic Conditions
• Currency Changes
• Laws, Regulations, and Legal systems
• Cultural Considerations
• Language
• National Holidays

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Exporting Requirements

• Shipping a product overseas
• Packing
• Labeling
• Documentation
• Insurance requirements
• Note Most exporters rely on an international
  freight forwarder to perform these services
  because of the multitude of considerations
  involved in physically exporting goods

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Packing

• Reasons

• Used Guidelines

• Move goods easily through customs
• Protect Products

• Pack in strong containers, adequately sealed and
  filled when possible.
• Make sure the weight is evenly distributed.
• Goods should be palletized and when possible
  containerized.
• Packages and packing filler should be made of
  moisture-resistant material.
• To avoid pilferage, avoid writing contents or
  brand names on packages. Other safeguards include
  using straps, seals, and shrink wrapping.
• Observe any product-specific hazardous materials
  packing requirements.

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Labeling

• Reasons

• Markings on cartons to be shipped

• Meet shipping regulations
• Ensure proper handling
• Conceal the identity of the contents
• Help receivers identify shipments
• Insure compliance with environmental and safety
  standards

• Shipper's mark
• Country of origin
• Weight marking
• Number of packages and size of cases
• Handling marks
• Cautionary markings, such as "This Side Up" or
  "Use No Hooks"
• Port of entry
• Labels for hazardous materials

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Documentation

• Air waybills
• Bill of lading
• Commercial invoice
• Consular invoice
• Certificate of origin
• NAFTA certificate of origin
• Inspection certification

• Dock receipt and a warehouse receipt
• Destination control statement
• Shipper's Export Declaration(SED)
• Export license
• Export packing list
• Insurance certificate

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Insurance

• Reasons
• Damaging weather conditions
• Rough handling by carriers,
• Other common hazards to cargo
• Type of covers
• Marine cargo insurance
• Cargo insurance

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Schedule B and HS Numbers

• The Harmonized System (HS)
• Assigns 6 digit number
• 4 additional numbers (by country)
• 10 Digits total
• US use Schedule B system
• Based on the international HS system
• http//www.census.gov/foreign-trade/aes/exporttrai
  ning/videos/uscs_videos/Classifying_your_commodity
  /index.html

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Schedule B and HS Numbers

• Reasons
• To determine applicable import tariff rates and
  whether a product qualifies for a preferential
  tariff under a Free Trade Agreement
• The Schedule B number is needed to complete the
  Shippers Export Declaration, Certificates of
  Origin and other shipping documents and
• The HS Number may be needed on shipping
  documents, such as certificates of origin

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Incoterms 2000(International Commercial Terms)

• What are they?
• A series of international sales terms published
  in 2000 by the International Chamber of Commerce
  (ICC)
• From the sellers viewpoint the different
  locations for quoting a price to an overseas
  buyer
• How are they useful?
• Widely used in international commercial
  transactions
• Used to divide transaction costs
  responsibilities between buyer seller
• Reflect state-of-the-art transportation practices

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Incoterm Groups (13 terms)

• Group E Departure
• EXW (Ex Works)
• Group F Main carriage unpaid
• FCA, FAS, FOB
• Group C Main carriage paid
• CFR, CIF, CPT, CIP
• Group D Arrival
• DAF, DES, DEQ, DDU, DDP

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Group E

• EXW (Ex-Works) named place where shipment is
  available to the buyer, not loaded.The seller
  will not contract for any transportation.

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Group F

• International Carriage NOT Paid by SellerFCA
  (Free Carrier) seller is responsible for
  arranging transportation to a specific carrier at
  a named place suitable for all modes of
  transportFAS (Free Alongside Ship) seller
  must arrange for delivery, and assume all risks,
  up to the ocean carrier at a port. Delivery is
  within reach of ships tackle
• FOB (Free On Board vessel) only for carriage
  by water the point of title transfer occurs when
  the goods have passed over the ships rail

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Group C

• International Carriage Paid by the SellerCFR
  (Cost and Freight) seller must deliver over the
  ships rail, assuming risks. Once loaded, risk
  transfers to buyer. Cargo insurance from port of
  loading is not included. For waterborne
  shipments only.CIF (Cost, Insurance and
  Freight) seller retains risk of loss up to the
  foreign port of unloading. For waterborne
  shipments only. CPT (Carriage Paid To) seller
  will pay all freight costs all the way to the
  foreign port buyer assumes all risk of loss
  beyond the loading port. For all modes of
  transport.
• CIP (Carriage and Insurance Paid To) similar
  to CIF used in multimodal transactions. Place
  of receipt delivery may be different from port
  of loading or unloading

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Group D

• Arrival At Stated DestinationDES (Delivered
  Ex-Ship) seller pays all costs bears all risks
  of transport up to foreign port of unloading,
  except cost or risk of unloading cargo from ship
• DEQ (Delivered Ex-Quay) similar to DES seller
  pays the costs of unloading the cargo from the
  vessel and the cost of import clearance
• DAF (Delivered At Frontier) sellers
  responsibility is to deliver goods to a named
  frontier (border crossing point) clear the
  transaction for export. Buyers responsibility
  is to arrange for pickup of goods after cleared
  for export, carry them across border, clear them
  for importation, and pay duties DDP
  (Delivered Duty Paid) Seller pays everything to
  the buyers warehouse door and passes on all
  related costs in the merchandise price
• DDU (Delivered Duty Unpaid) similar to DDP
  except duty is not paid

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Tariffs and Imports fees

• Tariff is a tax set by governments on the value
  of products imported from one country into
  another.
• Tariffs are assesses before importing the
  product.
• Types of Tariffs
• Sales and state taxes,
• Customs fees

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Tariffs and Imports fees (cont.)

• Steps to determine the Tariff Rate
• Step 1 Determine your HS or Schedule B Number
• Step 2 Determine Tariff Rates
• Country Specific Tariff and Tax information
• U.S. Government Tariff Resources for Agricultural
  Exports
• Online Tariff Database provided by Customs Info
  LLC .
• Review Export. Governments disclaimer
• Tariff and Tax Information for U.S. Territories
• Sending Gifts
• Additional Tariff Resources

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Common Export Documents

• There are commonly Export Documents used in
  exporting, but specific requirements vary by
  destination and product.
• Airway Bill
• Bill of Landing
• Commercial Invoice
• Export Packing List
• Electronic Export Information Form

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Certificate Of Origin

• The Certificate of Origin (CO) is required by
  some countries for all or only certain products.
• The exporter should verify whether a CO is
  required with the buyer and/or an experienced
  shipper/freight forwarder or the Trade
  Information center.
• Most common are Certificate of Origin for
  claiming benefits under Free Trade Agreements

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OTHER CERTIFICATES

• Certificate of Analysis
• Certificate of Free Sale
• Dangerous Goods Certificate
• Fumigation Certificate
• Health Certificate
• Ingredients Certificate

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International Trade

• Defined as economic transactions that are made
  between countries.
• International trade transactions are facilitated
  by international financial payments, in which the
  private banking system and the Central Banks of
  the trading nations play important roles.

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Trade Agreements

• The purpose of US Trade Agreements is to create
  opportunities for Americans and help to grow the
  U.S. economy.
• Administering trade agreements involves
• Monitoring the trading partners implementation.
• Negotiating and signing trade agreements that
  advance the President's trade policy
• An important type of trade agreement is the Trade
  and Investment Framework Agreement (TIFAs)

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International Logistics Agencies Examples

• World Courier
• Private Company handling Specialty Custom
  Shipment
• USPS
• Government Agency handling mail and parcel
• FedEx
• Public Company handling a variety of shipping
  needs

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World Courier

• Largest most successful specialty courier in the
  world
• Areas of Service
• Clinical trial logistics
• Clinical trial supply storage
• Cold Chain Solutions
• Courier services
• Advertising media
• Aircraft on Ground
• Automotive
• Biopharm
• Food
• HighTech
• Serve in 50 Countries, 140 offices

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USPS(United States Postal Service)

• Independent agency of the U.S. Government
• Responsible for providing postal service in U.S.
• Second largest civilian employer in U.S. after
  Wal-Mart
• Has contractual agreement with AmTrak and various
  airlines for mail and package delivery
• Offers international services to over 190
  countries, including ship letters and packages
  with the aid of FedEx
• International Parcel Shipments
• Maximum weight 70 pounds
• Maximum length girth 130 inches
• Costs almost triple for Parcel Post shipments
  that are "oversized" (Length girth is greater
  that 108 but less than 130 inches)

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USPS Mail Flow Through National Infrastructure
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FedEx

• Headquartered in Memphis, Tennessee
• Offers international services to over 220
  countries
• Strong ties to the White House and members of
  Congress allow access to international trade and
  tax cut debates as well as the rules of the
  business practices of the United States Postal
  Service
• In 2001, FedEx sealed a 9 billion deal with the
  USPS to transport all of the post office's
  overnight and express deliveries
• International Next Flight Urgent shipments
• Up to 2,200 lbs. per piece (or more with prior
  approval). Unlimited total shipment weight
• Other International parcel shipments
• Up to 150 lbs. each (unlimited total shipment
  weight), 108" in length, 130" in length plus
  girth (L2W2H)

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FedEx International Service, Simplified.

• http//www.youtube.com/watch?viIODEoEx1HU

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Work Cited

• http//www.unzco.com/basicguide/toc.html
• http//www.export.gov/logistics/index.asp
• http//www.i-b-t.net/incoterms.html
• http//www.worldcourier.com/Global/indexHome6cente
  rFlash3grt.html
• http//www.usps.com/international/sendpackages.htm
  
• http//en.wikipedia.org/wiki/United_States_Postal_
  Service
• http//www.fedex.com/international/
• http//en.wikipedia.org/wiki/FedEx
• http//www.uship.com/freight/articles/parcel-weigh
  t-restrictions/
• http//www.thefreedictionary.com/internationallog
  istics
• http//www.export.gov/logistics/eg_main_018130.asp
  
• http//www.export.gov/logistics/eg_main_018121.asp
  P10_641
• http//www.britannica.com/EBchecked/topic/291349/i
  nternational-trade
• http//www.ustr.gov/trade-agreements

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Questions