International LogisticsInternational Logistics
Presented by:Delhy Arias
Marbell LastraMaria J Zavala
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Definition of International Definition of International LogisticsLogistics
The negotiating, planning, and implementation of supporting logistic arrangements between nations, their forces, and agencies.
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.
Government InfluencesGovernment InfluencesPolitical 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 Challenges
Economic Conditions◦ Currency Changes
Laws, Regulations, and Legal systems
Cultural Considerations◦ Language ◦ National Holidays
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Exporting RequirementsExporting RequirementsShipping 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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PackingPacking
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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LabelingLabeling
Reasons Markings on cartons to be shipped
Meet shipping regulations
Ensure proper handlingConceal the identity of
the contentsHelp 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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DocumentationDocumentationAir waybillsBill of lading Commercial
invoiceConsular 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 listInsurance
certificate 8
InsuranceInsuranceReasonsDamaging weather
conditionsRough handling by
carriers,Other common
hazards to cargo Type of coversMarine cargo
insurance Cargo insurance
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Schedule B and HS Schedule B and HS NumbersNumbers
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/exporttraining/videos/uscs_videos/Classifying_your_commodity/index.html
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Schedule B and HS Schedule B and HS NumbersNumbersReasonsTo 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 Shipper’s 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 2000Incoterms 2000(International Commercial Terms)(International Commercial Terms)What are they?
◦ A series of international sales terms published in 2000 by the International Chamber of Commerce (ICC)
◦ From the seller’s 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 Incoterm Groups (13 terms)(13 terms)Group E – Departure
◦EXW (Ex Works)Group F – Main carriage unpaid
◦FCA, FAS, FOBGroup C – Main carriage paid
◦CFR, CIF, CPT, CIPGroup D – Arrival
◦DAF, DES, DEQ, DDU, DDP
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Group EGroup EEXW – (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 FGroup FInternational Carriage NOT Paid by Seller
FCA – (Free Carrier) seller is responsible for arranging transportation to a specific carrier at a named place; suitable for all modes of transport
FAS – (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 ship’s tackle’
FOB – (Free On Board vessel) only for carriage by water; the point of title transfer occurs when the goods have passed over the ship’s rail
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Group CGroup C International Carriage Paid by the Seller
CFR – (Cost and Freight) seller must deliver over the ship’s 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 DGroup D Arrival At Stated Destination
DES – (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) seller’s responsibility is to deliver goods to a named frontier (border crossing point) & clear the transaction for export. Buyer’s 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 buyer’s 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 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
Tariffs and Imports fees Tariffs and Imports fees (cont.) (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. Government’s disclaimer Tariff and Tax Information for U.S. Territories Sending Gifts Additional Tariff Resources
Common Export Common Export DocumentsDocumentsThere 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
Certificate Of OriginCertificate Of OriginThe 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
OTHER CERTIFICATESOTHER CERTIFICATESCertificate of AnalysisCertificate of Free SaleDangerous Goods CertificateFumigation CertificateHealth CertificateIngredients Certificate
International TradeInternational TradeDefined 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.
Trade AgreementsTrade AgreementsThe 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 policyAn important type of trade agreement is
the Trade and Investment Framework Agreement (TIFAs)
International Logistics International Logistics Agencies ExamplesAgencies Examples
World Courier: ◦Private Company handling Specialty &
Custom Shipment
USPS:◦Government Agency handling mail and
parcel
FedEx:◦Public Company handling a variety of
shipping needs25
World CourierWorld CourierLargest most successful specialty courier in
the worldAreas 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 offices26
USPSUSPS(United States Postal Service)(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) 27
USPS Mail Flow Through National USPS Mail Flow Through National InfrastructureInfrastructure
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FedExFedEx 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 (L+2W+2H)29
FedEx International Service, FedEx International Service, Simplified.Simplified.
http://www.youtube.com/watch?v=iIODEoEx1HU
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Work CitedWork 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/indexHome6centerFlash
3grt.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-weight-restrictio
ns/ http://www.thefreedictionary.com/international+logistics http://www.export.gov/logistics/eg_main_018130.asp http://www.export.gov/logistics/eg_main_018121.asp#P10_6
41 http://www.britannica.com/EBchecked/topic/291349/internati
onal-trade http://www.ustr.gov/trade-agreements 31
QuestionsQuestions
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