International Logistics

Presented by:
Delhy Arias
Marbell Lastra
Maria J Zavala
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Definition of International
Logistics

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 Influences
Political

Trade

Restrictions of

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

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 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 moistureresistant 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

Markings on cartons to be
shipped

Reasons
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

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/foreigntrade/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

=iIODEoEx1HU

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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/indexHome6centerFlash3
grt.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
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http://www.britannica.com/EBchecked/topic/291349/internatio
nal-trade
http://www.ustr.gov/trade-agreements

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Questions

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