International Logistics

Presented by:
Delhy Arias
Marbell Lastra
Maria J Zavala
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 Definition of International Logistics
The negotiating, It includes planning and
planning, and actions related to the
implementation of utilization logistic
supporting logistic policies, systems, and/or
arrangements between procedures to meet
nations, their forces, requirements of one or
and agencies. more foreign
governments,
international
organizations, or forces.
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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Reasons Used Guidelines

Move goods easily through Pack in strong containers, adequately

sealed and filled when possible.
customs
Make sure the weight is evenly
Protect Products 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.

Packing
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 Reasons Markings on cartons to be shipped

Meet shipping regulations Shipper's mark

Country of origin
Ensure proper handling
Weight marking
Conceal the identity of the Number of packages and size
contents of cases
Help receivers identify Handling marks
shipments Cautionary markings, such as
"This Side Up" or "Use No
Insure compliance with Hooks"
environmental and safety Port of entry
standards Labels for hazardous materials

Labeling
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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/exporttraining/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 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 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 Seller
CFR (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 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) 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
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
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
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
OTHER CERTIFICATES
Certificate of Analysis
Certificate of Free Sale
Dangerous Goods Certificate
Fumigation Certificate
Health Certificate
Ingredients Certificate
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.
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)
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 (L+2W+2H)
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 FedEx International Service,
Simplified.
http://www.youtube.com/watch?v=iIODEoE
x1HU

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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/indexHome6centerFlash3grt.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-restrictions/
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_641
http://www.britannica.com/EBchecked/topic/291349/international-trade
http://www.ustr.gov/trade-agreements

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Questions

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