Export umentation and Compliance

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					               Export Documentation
                       and
                   Compliance




      EXPORT DOCUMENATION
      AND COMPLIANCE



Presented by:
Bengt Reed Anderson, CES
President
BDG International, Inc.
Tel: 847-760-0000 Fax: 847-760-0005
www.bdginternational.com
sales@bdginternational.com




                                      Topics
         Documentation                    Documentation
             Quoting                         Freight Forwarding
             Terms and Conditions            Insurance and Risk
             Type of Payment
             Incoterms
             Purchase order
             Type of invoices
             Packing List
             Haz Mat info
             Carnet
             Other export –C/O
             Bill of Lading




                                                                    1
                             Quoting




                            Quotations
How will you sell (EXPORT) your product?
     IMPORT – is the opposite benefit.

Prepaid or Collect
   – Collect More Expensive
      Forwarder assumes political, international risks
      Forwarder converts collect $ to local currency
   – Collect Less Control
      Consignee routes shipments
   – Prepaid Less Expensive
      No political risk, international risks
      Forwarder bills shipper in $.
   – Prepaid More Control
      Shipper selects forwarder.
      L/C's shipper wants control.




                    Quotations cont...
Choose your incoterm now

Be clear and thorough in you quotations.

Lead Times - How long will it take to produce the product?
   – Changes in production costs.
   – Changes in transportation costs.
      Add to freight charges 5-10%
      Forwarder can bring up invoice.

Quotation Standards
   – Use Metric when possible.

Use Other currencies to make the sale.




                                                              2
                   Quotations cont...
Transportation, what should be quoted?
  1. Commodity Description
  2. Origin/Destination
  3. Shipment Size:
       Pieces, Weight & Dimensions
  4. Freight Charges:
       Prepaid or Collect
  5. Method of payment:
       Letter of Credit, Sight Draft, Open Acct.
  6. Terms Of Payment
       Incoterm, i.e.: CIF, CPT, DDU, Ex Factory
  7. Insurance Required:
       Value of Product
  8. Services Required
        Transit Time, Frequency
  9. Approximate Shipping Date




  Did you agree on Incoterms?




                     INCOTERMS
    An incoterm = International Commercial Terms

    Since 1936 / revised 6 times

    Most recent revision
        Incoterms 2000
        Incoterms 2010 expected late in 2010

    The governing term of sale and it's source should be
    clearly specified in all quotations and purchase orders“

    http://www.iccwbo.org/incoterms/id3045/index.html




                                                               3
                           Incoterms
      ICC Incoterms                        Failings of the U. S.
                                            Terms
         Advantages
              Creation of an                 –   Implies American bias
               international body.            –   Not widely translated,
               Perceived as neutral.              not understood
                                              –   50 years old, no
              Defined and                        updates, do not reflect
               understood in major                current commercial and
               trading languages.
                                                  transport practices
                                              –   FOB -- overused
              A given term is used           –   All other countries use
               in one context.
                                                  Incoterms




                  Incoterm Definitions
EXW                 Ex Works            DES                 Delivered Ex Ship
FAS                 Free Along Side     DEQ                 Delivered Ex Quay


FOB                 Free On Board       DAF                 Delivered At
                                                            Frontier
FCA                 Free Carrier        DDU                 Delivered Duty
                                                            Unpaid
CFR                 Cost and Freight    DDP                 Delivered Duty
                                                            Paid
CIF                 Cost, Insurance
                    and Freight
CIP                 Carriage and
                    Insurance Paid To
CPT                 Carriage Paid To




                           Incoterms
      Terms to Know
         EXW Ex-Works (Named Origin)
         FCA     Free Carrier (Named Port)
         CPT     Cost Paid To (Named Destination Port)
         CIP     Cost, Insurance Paid To (Named
          Destination Port)
         DDU Door Delivery Duty Unpaid
         DDP Door Delivery Duty Paid




                                                                                4
                                   Incoterm Syntax

         Usage and Syntax Examples:


         Ex Works (factory city
         location)                                       >         Ex Works Milwaukee, WI

         FCA (named port or airport of                             FCA Chicago O'Hare
         departure)                                      >         Airport




         CIP (named port or airport                                CIP Seoul, Korea,
         of entry)                                       >         Kimpo Airport

         DDU (named delivery
         city)                                           >         DDU Suwon, Korea




                                   Incoterms 2000
      Delivery Point                      Ocean              Ocean       Air                     Truck/Rail
                                          Breakbulk /        FCL/RoRo/LC
                                          LCL                L


      E - Named Origin Door               EXW-               EXW                EXW              EXW


      F - Named Origin Port               FAS                FCA                FCA              FCA
                                          FOB


      C - Named Destination
      Port                                CFR                CPT                CPT              CPT
                                          CIF                CIP                CIP              CIP


      D - Named Door                      DES                DDU                DDU              DAF
                                          DEQ                DDP                DDP              DDU
                                                                                                 DDP




Logistics Event                EXW    FAS    FCA   FOB       CFR    CPT   CIF   CIP    DAF   DES       DEQ    DDU   DDP


Export Pack
                          Incoterms 2000 a
                               S      S      S     S         S      S     S     S      S     S         S      S     S
Mark and Label                 S      S      S     S         S      S     S     S      S     S         S      S     S
Export Clearance (License)     S      S      S     S         S      S     S     S      S     S         S      S     S
Harbor Maintenance Fee         C      C      S     S         S      S     S     S      S     S         S      S     S
Arrange Pre-Carriage           C      S      S     S         S      S     S     S      S     S         S      S     S
Load Pre-Carrier               C      S      S     S         S      S     S     S      S     S         S      S     S
Nominate Main Carrier          C      C      C     C         S      S     S     S      S     S         S      S     S
Nominate Forwarder             C      C      C     C         S      S     S     S      S     S         S      S     S
Unload Pre-Carier              C      S      C     S         S      S     S     S      S     S         S      S     S
Load Main Carrier              C      C      C     S         S      S     S     S      S     S         S      S     S
Arrange Insurance              C      C      C     C         C      C     S     S      S     S         S      S     S
Stow Main Carrier              C      C      C     C         C      C     C     C      S     S         S      S     S
Unload Main Carrier            C      C      C     C         C      C     C     C      C     C         S      S     S
Nominate On-Carrier            C      C      C     C         C      C     C     C      C     C         C      S     S
Arrange On-Carrier             C      C      C     C         C      C     C     C      C     C         C      S     S
Load On Carrier                C      C      C     C         C      C     C     C      C     C         C      S     S
Nominate Import Broker         C      C      C     C         C      C     C     C      C     C         C      C     S
Import Clearance (License)     C      C      C     C         C      C     C     C      C     C         C      C     S
Destination Duty & Fees        C      C      C     C         C      C     C     C      C     C         C      C     S
Unload from On-Carrier         C      C      C     C         C      C     C     C      C     C         C      C     C




                                                                                                                          5
                               Incoterms 2000 b
Documentation Event             EXW   FCA   FAS   FOB   CFR   CIF   CPT   CIP   DAF   DES   DEQ   DDU   DDP


Commercial Invoice              S     S     S     S     S     S     S     S     S     S     S     S     S
Packing List                    S     S     S     S     S     S     S     S     S     S     S     S     S
Export Declaration              S     S     S     S     S     S     S     S     S     S     S     S     S
Certificate of Origin           S     S     S     S     S     S     S     S     S     S     S     S     S
Precarriage Bill of Lading      C     S     S     S     S     S     S     S     S     S     S     S     S
Export License                  C     S     C     S     S     S     S     S     S     S     S     S     S
Other Governmental              C     S     C     S     S     S     S     S     S     S     S     S     S
Main Carriage Bill of Lading    C     C     C     C     S     S     S     S     S     S     S     S     S
Dock Receipt                    C     S     S     S     S     S     S     S     S     S     S     S     S
Insurance Certificate           C     C     C     C     C     S     C     S     S     S     S     S     S
Import License                  C     C     C     C     C     C     C     C     C     C     C     C     S
On-Carriage Bill of Lading      C     C     C     C     C     C     C     C     C     C     C     S     S
Entry Documents                 C     C     C     C     C     C     C     C     C     C     C     C     S




                 What are your Terms and
                       Conditions?

                                                  ???

                  What are your customers
                  Terms and Conditions?




    Terms and Conditions between seller
               and buyer
            Between the buyer and the seller there should be some type of
                understanding regarding the conditions of purchase.

        defines the terms and conditions of the purchase.

        include any type of marking, packing, and shipping requirements.

        designate liability for each party and hold that party responsible.

        define government regulations and hold the shipper responsible for any
         illegal conduct, breach of security or acts against the regulations

        reduces amount of questions if an order is placed




                                                                                                              6
            Terms and Conditions
        between seller and buyer cont’
The standard terms and conditions where you, the buyer, are
contracting w /a seller in the course of a business to business
transaction, and includes the following basic items:
price and payment                         warranty
delivery                                  sub-contracting
samples                                   title and risk
packaging                                 inspection
testing                                   indemnity
confidentiality                           termination
terms of shipping                         government regs




 Did you agree on the Type of
          Payment?




                 Payment Types
   Cash in advance:                  Open Account:
       International Payments           Customer that has
        are sent via Wire
                                          gone through a credit
        Transfer or Draft
                                          analysis
       In a CIA situation it is
        preferable to receive the        They have agreed to
        payment prior to                  pay in 30 – 60 days
        production or organizing          net from invoice date.
        the order.                       Normally an ongoing
       Provide your “ Shipment           customer which
        Ready Date” based on              orders frequently
        when you will receive $          Important to agree on
       CIA - ship prepaid and            incoterms
        receive the payment for
        transportation/ prevent          Watch payment terms
        cargo possibly sitting at         versus when they
        a port and being liable           orders ready.
        for the return.




                                                                   7
         Payment type / Terms

Sight Draft
    Funds transferred upon sight of
     documents at the applicant bank.


Time Draft
    Funds transferred upon # days after
     sight of documents at the applicant
     bank




         Payment Type Cont’
Letter of Credit                  Types:
  This is a legal instrument
                                     Revocable
    that designates exact terms
    of the shipment process          Irrevocable
    and when the payment will        Confirmed –
    be made.                          Guaranteed by advising
                                      bank
     Contractual agreement
     between Shipper
                                     Non Confirmed –
     (Beneficiary), Consignee          Guaranteed to be pd by
     (Applicant), Beneficiary           advising bank
     Bank and Applicant Bank      Spells out the legal
                                    obligations of each party




     Letter of Credit Flow Chart




                                                                8
     Chart Guide:
     Letter of Credit (L/C) Flow
     1. Sales Contract between Exporter & Importer is opened.

     2. Importer Request L/C with Issuing Bank

     3. Issuing Bank sends Original L/C to Advising Bank

     4. Advising Bank sends Original L/C to Exporter

     5. Exporter books shipment with BDG & sends Original L/C to BDG for
     banking. BDG arranges transport of goods.

     6. BDG prepares all documents per L/C & sends back to Advising Bank
      with the Original L/C.

     7. Advising Bank confirms documents in order, forwards documents to
      Opening Bank and arranges payment to Exporter.

     8. Opening Bank releases original shipment documents to the Importer .




                                          1

                                                                                 Importer /
    Exporter /                                                                    Buyer /
     Seller /                                                                    Applicant
    Beneficiary
                         Goods                              Goods
                                        Carrier



                                     Transport Document

         4                                                                   2
                     5




    7$                                                                                 8

                     6




       Advising /
                                                     3
       Confirming                                                         Opening /
         Bank                                                           Issuing Bank
                                 7




                    Letter of Credit Flow Chart




                          L/C Suggestions
1. The Letter of Credit shall be irrevocable
2. The credit shall be__advised by                  __________________________
                      __confirmed by                __________________________
                                                    __________________________
                                                    __________________________
3. The credit shall be payable at the counters of:
                                    __________________________
                                    __________________________
                                    __________________________
                                    __________________________
4. The credit shall show as the beneficiary:
5. The credit shall be payable in USD, in the amount:
                 ___ not to exceed           $________________
                 ___ exactly                 $________________
                 ___ about                   $ _______________




                                                                                              9
                                         L/C 2
6. The credit shall be payable:
                      __ at sight
                      __ ____ days sight upon presentation at the counters of the bank stated in
   item #3 above.
                      __ _____ days from ___________ date.
7. The Letter of Credit          __ shall be transferable.
                                 __ shall not be transferable.
8. The credit shall show that all banking charges incurred are for the account of the applicant.
9. The credit shall show that all charges for amendments to the credit, including related
   communications expenses, are for the account applicant.
10. Partial shipments            __ shall be allowed.
                                 __ shall not be allowed.
11. Transshipments               __ shall be allowed.
                                 __ shall not be allowed.
12. The credit shall allow for required transport documents dated no later    than
    ___________________.
13. The credit shall allow for a minimum of 21 days after the required transport documents date
    for the presentation of documents at the counters of the bank stated in item #3.




                                         L/C 3
   14. The required documents should include:
   A)   __ Commercial invoice totaled _______________________
                                        (Inco Term)    (Destination) (Amount)
   B)   __ Commercial invoice shall cover
                   __ Pro-Forma invoice#________________________
                   __ the following:      ________________________

   C) __ Packing List for above.
       __ Insurance certificate showing insurance/provided by
          seller.
   D) ___ Ocean Bill Lading
       ___ The bill shall be consigned:
               ___ to               ________________________________
               ___ to the order of ________________________________
   E)            ___ The credit shall allow for NVOCC Bills of Lading.
   F)            ___ The Bill of Lading shall be marked "ON BOARD".
   G) __ Air Waybill shall be consigned:
              __ to                 _________________________
              __ to the order of    _________________________




        The buyer is ready to place
                an order.




                                                                                                   10
                    Purchase Order
         Receive a Formal Purchase order
            Try to refrain from the simple email and
             have standards on what the P.O. order
             should include.

            How will you receive payment?




                        Purchase Order

                      ISSUE A PURCHASE ORDER
                                 or
                     REQUIRE A PURCHASE ORDER

 A purchase order is a formal agreement to buy that specific order.
 Repeat some information from the Terms and Conditions
 Define exactly what is being ordered that day

 Define how it will be shipped (Air or ocean)

 Define when it needs to be shipped and when it is expected at dest

 Designate the freight forwarder / shipping responsibility

 A calculation of quantity and price that will be ordered

 Take the questions out of the order and ensure success




                  Shipment process
    While preparing the order

    1.    Prepare/Review the export documents
    2.    Prepare/Review the packing for export
    3.    Re-verify payment process is in place,
          regulations for foreign country, and
          Denied Parties verification

                 http://www.bis.doc.gov/dpl/default.shtm




                                                                       11
        Export Documentation




                 Documentation
Documents Requires for Export - Shipper
  Air Freight Shipments (export)
     • Security Endorsement Form –
        •Signed form, indicating that there are no explosive devices
        within your air shipment.
     • Complete a Letter of Consent for Screening of cargo
     • Work with your forwarder to become a Known Shipper

  Air and Ocean Shipments (Import and export)
     • Commercial Invoice
     • Packing List
         •Information should include: Contact person, Phone/Fax number,
         List box numbers with contents in each box. This is very important
         for insurance purposes.
     • SLI (Shipper’s Letter of Instruction)
     • Letter of Credit (If Issued)
     • Other Documents: Health Certificates, C of O




             Types of Invoices


            Proforma Invoices versus
              Commercial Invoice




                                                                              12
                               What is a
                          Pro Forma Invoice?


    In trade transactions, a pro forma invoice is a document that states a
    commitment from the seller to sell goods to the buyer at specified
    prices and terms. It is used to declare the value of the trade. It is not a
    true invoice, because it is not used to record accounts receivable for
    the seller and accounts payable for the buyer.

    A 'Proforma Invoice' is Confirmed Purchase Order where buyer and
    Supplier agrees on the Product Detail and its cost (usually-Supplier
    currency) to be shipped to buyer. Sales quotes are prepared in the
    form of a pro forma invoice which is different from a commercial
    invoice. It is used to create a sale and is sent in advance of the
    commercial invoice. The content of a pro forma invoice is almost
    identical to a commercial invoice and is usually considered a binding
    agreement although the price might change in advance of the final
    sale.




                       Pro Forma Invoice

• Banks usually prefer a pro forma invoice to a quotation for
  establishment of a letter of credit or for advance payment by
  the importer through his bank.

• In some countries, customs may accept a pro forma invoice
  (generated by the importer and not the exporter) if the
  required commercial invoice is not available at the time when
  filing entry documents at the port of entry to get goods
  released from customs.




                       Commercial Invoice

     Buyer / Importer will pay off this invoice.

     Official document for export and import
      clearance

     Customs clears freight using commercial
      invoices.

     Banks transfer money using the
      Commercial Invoice.




                                                                                  13
Commercial Invoice Elements
 Sold To, Ship To, Notify Party
 Terms of Payment
 Incoterm of Sale
 Certified True and Correct
 Destination Control Statement
 Country Of Origin
 Product Description (Use layman terms
 along with marketing terms)




       DESTINATION CONTROL
         STATEMENT (DCS)
DCS (EAR 758.6)
 - Must be entered on your   "ULTIMATE
 invoice
 - Must be on the bill of
                             DESTINATION"
 lading / AWB                - Required for all
 - other export control      exports on the
 documentation               Commerce Control
                             List
 These commodities,          - Not Required for
 technology or software      EAR99, unless BAG
 were exported from the
 U.S. in accordance with
                             or GFT
 the EAR diversion
 contrary to U.S. law is
 prohibited.




                                                  14
                       Packing List




                           Packing List

     Packing List
         Itemized list of articles usually included in each
          shipping package, giving the quantity, description, and
          weight of the contents. Prepared by the shipper and
          sent to the consignee for accurate tallying of the
          delivered goods.

         Also called bill of parcels, packing slip, or unpacking
          note. (International Business uses Packing List)

         Per businessdictionary.com




            Export Packing and Labeling

   What type of products do you ship?
     –   Hazardous
          Get professional training NOW!
          Get your organization registered with the US DOT.

     –   Fragile
          Label Accordingly: Keep Upright, Fragile
          Pack for a lot of handling

     –   Perishable
          Label Accordingly




                                                                    15
              Export Packing and Labeling


   What should data should appear on the
    label?
     – 1. Consignee Name, address
     – 2. Contact person
     – 3. Phone Number/Fax number
     – 4. Consignee Reference Number, L/C Number, or
       other number.
     – 5. Country of Origin (USA)
     – 6. Piece#/Total box count, i.e.: 1/10, 2/10, 3/10
     – 7. Box Weight
     8. Handling Instructions




         Other Export Documents

         There are a multitude of specific
         documents that may be required,
           but in general a Certificate of
            Origin is the most common.




                   Certificate of Origin
      Document that certifies a shipment's country of origin.
       It is used between members of a trading block or
       where special privileges are granted to goods
       produced in certain countries.

      Certificate of origin is commonly issued by a trade
       promotion office, or a chamber of commerce in the
       exporting country. Also called declaration of origin.

      Freight Forwarder can Notarize and Chamber stamp
       the C of O

         Per businessdictionary.com




                                                                 16
      Duty Preferences and
     Free Trade Agreements




               DUTY PREFERENCES
 The WTO and main Parliaments of each country come together to decide on
 countries with special needs, and economies that need to be promoted.

 The U.S. Congress / Senate approve Trade Agreements, Trade Acts, Global
 Trade Decisions, and requests for specific Industry or Commodity duty
 preferences.



     The Office of U.S. Trade Agreements
The U.S. trade strategy is to pursue muliple market-opening initiatives
  on a global, regional and bilateral basis, establishing models of
  success that can be used throughout all negotiations.




                                                                           17
                    DUTY PREFERENCES
   The duty will be based on a product as per the General Rules of Interpretation
                 from the U.S. Regulations & Harmonize Tariff System

        Commodity:
         - Type
         - Material
         - Usage
         - Country of Origin
         - Government Restrictions
         - Government Free Trade Agreements


      Though the system works the same on import and
    export, the duty pricing can be completely different.




Trade Agreements
- USA has provided many countries and commodities a low duty rate or free.
- Trade Agreements not only provide our importers lower duty rates, but more
importantly help our exporters compete in a global economy.


- Due to the multiple layers of Trade Agreements and Free Trade Agreements
many importers can import from developing countries – duty free.


- However, these same countries that benefit from our low or free duty status do
not reciprocate and provide our exporters duty free status into their country.


 - Trade Agreements assist US Exporters to sell their product in the foreign
country.




            Free Trade Agreements
       Australia                             NAFTA
       Bahrain                               Oman
       CAFTA-DR                              Peru
           Costa Rica, Dominican            Singapore
            Republic, El Salvador,           Colombia - Pending
            Guatemala, Honduras,
            and Nicaragua.                   Korea - Pending
       Chile                                 Panama - Pending
       Israel
       Jordan
       Morocco




                                                                                    18
   Foreign Government
Inspections prior to export




  Hazardous Materials /
       Chemicals




                              19
                      Haz Mat
 Air                             Ocean
      Department of                Department of
       Transportation (DOT)          Transportation (DOT)
      International Air            International Maritime
                                     Dangerous Goods (IMDG)
       Transport
       Administration (IATA)        There is not an official
                                     form
      Candy stripe DG form
                                    MSDS and TDS are now
      MSDS and TDS sheet            required for quoting from
       (Material Safety Data         most ocean lines
       Sheet and Technical          http://www.imo.org/Safety/
       Data Sheet)                   mainframe.asp?topic_id=
      http://www.iata.org/wha       158
       twedo/cargo/dangerou
       s_goods/




         Providing Instructions


            To the designated freight
                    forwarder




Shipper's Letter of Instruction
            (SLI)
 The SLI is a multi-function form.

 • EEI (Electronic Export Information )
    • Provides information to complete
      Automated Export Declaration (AES)
 • Proper authority to the AES agent
 • Detailed instructions to the forwarder




                                                                  20
               SLI, or EEI information
        EEI = Electronic Export Information
            Can be provided in many ways – the most
             common is via a shipper’s letter of
             instruction which also acts as an
             instruction sheet for shipping purposes.




                                 SLI / EEI
1a.USPPI-         1b. USPPI      1c.Parties         4a. Ult cnee      4b.Interm
Company           EIN-           Related            Company who is    ediate
responsible for   Required       Is USPPI or FPPI   receiving the     cnee
shipping the      information    related 10% or     cargo
product from                                                          Receiving the
                                 more?                                cargo and on
the USA
                                                                      fwd – not a
                                                                      freight frwrdr
6. Point          7. Country 17. Hazardous 21. D/F                    22.
(state of         of Ult Dest Materials                               Schedule
origin)           Do you have                       Is the product    B#
Where is the      knowledge of
                                 Yes or no          “Made in the      Number that
cargo             the final
                  destination                       USA” or of        associates
physically                                          foreign origin?   the product
coming from?      beyond your    19. Routed:
                  deliver to                                          with the
                  address?                                            U.S. Govt
                                 Yes or no                            classificatio
                                                                      n system




                                                                                       21
                           SLI / EEI
24.          26. Value     27. License            28. ECCN #          29.
Shipping     of goods      no or                                      Authorized
                                                                      Employee to
Weight                     Exception              All goods have an   sign and
                                                  ECCN # which is     provide the
             Must be the                          regulated by Dept   information
                           Do not assume a
Must be in   sell price,   license is not         of Commerce
kgs          including     required. Verify the
             any down      information.

             payments




              Proper Authority to
                 AES Agent
     Anyone can complete an AES declaration if they
     are authorized to complete the EEI information by
     the USPPI or FPPI

     If the employee or agent does not have authority –
     this is a violation
     Provided by a Letter of Authority or
       Provided by a Power of Attorney or
       Signed SLI on Box 23




                                                                                    22
                          Carnet


                   *Passport for Cargo*




                            Carnets
   An ATA Carnet is an International
    Customs document (Admission
    Temporaire)
     –   Definition - Merchandise Passport
   Reduces Cost -
     –   Eliminates "VAT", Duties, and the posting
         of a Bond at the time of entry.
   Simplifies Customs Procedures
     –   A Temporary Exporter may use a single
         document for all customs transactions




                   Carnets (continued)
   Facilitates Re-Entry
     –   U. S. Customs allows immediate entry of the
         product into the U.S.A
     –   Eliminates the need to register the product with
         customs prior to export.
   Carnets do not cover:
     –   Consumable Goods
     –   Disposable Items
   Carnets are accepted in 44 countries
   Security: A Bond is required to be purchased in
    the U.S.A.




                                                            23
                     Carnets (continued)

   Customs Claims and Penalties
     – Goods must be exported within 1 year.
     – Improperly validated Carnet sheets.
     – Improper or inadequate description of
       merchandise on the "General List".
   Processing
     –   5 Working Days
     –   Expedited Processing at higher fees is
         available.




                       Bill of Lading




                       Bill of Lading
     Ocean                         Airfreight
            Original or Express      AWB (Air Waybill) is
             bill of lading –          not negotiable
             negotiable               AWB is a set of
             document                  instructions
            B/L is a set of          MAWB / HAWB
             instructions to the      DAWB
             carrier
            MBL / HBL
            OBL




                                                              24
       Bill of Lading or AWB
Review the terms and conditions
 What are the carriers responsible for?
 What are you hiring them to do?
 Where do they start and end their
  responsibility?




                                                                                                                                                                                                 COPY
                                    SEAGULL EXPRESS LINES                                                                                                                               BILL OF LADING
    SHIPPER/ EXPORTER                                                                                           B OOKING NUM B ER                          B ILL OF LA DING NO.



                                                                                                                EX PORT REFERENCES




    CONSIGNEE                                                                                                   FORWA RDING A GENT (Ref erence)




    NOTIFY PA RTY                                                                                               POINT AND COUNTRY OF ORIGIN OF GOODS



                                                                                                                FOR DELIV ERY BY ON CA RRIER




    PRE CA RRIAGE B Y                                        PLA CE OF RECEIPT B Y PRE CA RRIER



    EX PORT CARRIER (V essel, vo yage)                       PORT OF LOA DING



    PORT OF DISCHA RGE                                       FOR TRA NS-SHIPM ENT TO                            PLA CE OF DELIVERY B Y ON CA RRIER                                                   NO. OF ORIGINA LS


                                                                                         PA RTICULARS FURNISHED B Y SHIPPER
    M A RKS A ND NUM B ERS         NO. OF PKGS                                 DESCRIPTION OF PA CKA GES A ND GOODS                                                   GROSS WEIGHT                       M EA SUREM ENT




                                                                          Sample
                                                                          document

    These commodit ies, t echnology, o r sof t ware were export ed f rom t he United Stat es in accordance wit h t he Export A dminist rat ion Regulat ions. Diversion cont rary t o U.S. Law prohibit ed
    Declared Carg o V alue US$                               If t he merchant ent ers the act ual value of t he goo ds and pays t he applicable ad valorem rat e, the carrier's packag e limit at io n will not ap ply
                                                                                         RECEIV ED in ap parent good order and condit ion except as o therwise no ted the t ot al numb er o f containers or ot her
                                          PREPAID                     COLLECT
                                                                                         p ackages or unit enumerat ed b elow (content s and condit ions of cont ent s, measurement , weight , q uant it y, brand, q ualit y and
                                                                                         value unknown, any re




                                                                                        In wit ness whereof t he Carrier of his A gent s have signed t he number of o riginal B/ Ls st at ed below, all of t his teno r or dat e.
                                                                                        One B ill of Lading duly endorsed t o be given up in exchange fo r t he goods or f or a d elivery order f or same upon which t he
                                                                                        o thers

                                                                                        PLA CE A ND DA TE OF ISSUE                                                                  B / L NO.

                                                                                        BDG INTERNATIONAL, INC.
                                                                                        A S AGENT FOR SEAGULL EX PRESS LINES

                                                                                        BY

                                                                                                                      A GENT FO THE CARRIER




                  Insurance and Risk




                                                                                                                                                                                                                                    25
Floating Containers




Fire on board




    Crushed




                      26
               Crash Landing




      Insurance-Carrier Liability
  Ocean Freight                   Air Freight - Warsaw
  Carriage of Goods by            Convention
                                          Limits air carriers
  Sea Act                                  liability for loss or
     Limits recovery to                   damage to cargo to the
                                           lesser of the values of
      the lesser of the                    the lost or damaged
      value of the cargo                   freight or $9.07/LBS
      damaged or lost or
      $500.00 per CSU                 Domestic Carriage
      (Customary                          .50/LBS or
      shipping Unit)                       $50.00/Shipment




                        Insurance

• Documentation Required to file a claim.
  • 1) Signed copy of the Bills of Lading. When insurance is
    purchased through BDG, BDG will obtain this document.

  • 2) All inbound and outbound inspections of the trailer or
    container. Consignee must make the product available
    for inspection prior to use.

  • 3) Copy of set of shipper’s commercial invoices and
    packing lists. When insurance is purchased through
    BDG, BDG will obtain this document.




                                                                     27
                            Insurance
4) Proof of loss: Any documents listing the exceptions.
      • Obvious Damage: Consignee must indicate on delivery
         receipt that damage or loss occurred.
      • Concealed Damage: Consignee must notify the
         delivering carrier of the damage

5) Non-delivery:
      • Consignee must notify the shipper and carrier that the
        product did not arrive as scheduled.

6) Claim notifications filed against carriers & acknowledgment
 from the carrier.




          Insurance – Gen Avg
 • General Average                   • General Average is
     • Sharing of the                  declared when...
       Risk among the                  • Freight is jettisoned
       participants of the             • The vessel sustains
                                         damage
       voyage                          • Corrective action is
        • The vessel owner risked
          livelihood (vessel) as         taken at the expense
          well as lives of captain       of either the vessel
          and crew.
                                         owner or cargo
        • General Average
          provides a way of              owners.
          spreading this risk.




               General Average
                                       •   Release of cargo can not
•Calculations                              be obtained until Security
   • Voyage Value = Vessel                 Deposit has been
     Value + Total Cargo Value             received.
   • Shipper Participation = % of
     shipper cargo to Total
     Cargo Value
   • Voyage Loss is determined
   • Shipper Participation is          •   Release of cargo can take
     applied to Voyage Loss                between 6 months and 2
   • Shipper Participation is              years.
     submitted in form of a
     security deposit.




                                                                        28
                        Insurance

• 2 Types of Insurance


  • All Risks



  • Free of Particular Average (FPA




                        Insurance

• All Risks
  • Most Comprehensive coverage
  • Insures everything except for...
     • Improper Packing
     • Abandonment of Cargo
     • Failure to pay or collect accounts
     • Inherent Vice (Infestation, etc.)
     • Employee Dishonesty
     • Loss Amounts in excess of policy limits




                        Insurance

• All Risk exclusions

  • Losses inland more than 30 days after discharge of cargo

  • Losses in South America more than 60 days after discharge of
    cargo

  • Barge shipments

  • Goods subject to an on-deck B/L

  • Losses caused by temperature or pressure

  • Used goods




                                                                   29
                                  Insurance

   All Risk exclusions
     –   Failure to notify air carrier of a preliminary loss in a
         timely fashion
          Obvious damage 7 days
          Hidden damage 14 days
          Non-delivery 120 days

     –   Failure to notify ocean carrier of a preliminary loss
         in a timely fashion
          Loss or damage 1 year
          Non-delivery 120 Days




                               Insurance
                             FPA Coverage
 Burning                                  Washing overboard
 Sinking                                  Jettison
 Stranding                                Collision of truck

 Overturn                                 Overturn of truck

 Explosion                                Collapse of pier


 Collision                                General Average


 Crash of Aircraft




                          Insurance
                    "All Risks" vs. F. P. A.
                                              F.P.A.
   "All Risks"                           

                                                –   Essentially a "Disaster Coverage
     –   Includes coverage's afforded by F.     –   Typically, a major event must
         P.A.                                       occur to the vessel or airline for
     –   Theft, Pilferage & Non-delivery            the loss to be covered.
         Covered
     –   Rough Handling & Damage in
         Transit
     –   Door to Door




                                                                                         30
              Freight Forwarding




Who assists in understanding the rules
   and regulations set forth by the
         governing parties?

             Government Help Desks
             International Attorneys
               Freight Forwarders
                Customs Brokers




      International Freight Forwarders
     An agent for the exporter in moving cargo to an overseas.
                      “Travel Agent for Cargo”

Specializing in:

- the import rules and regs of foreign countries

- the export regulations of the U.S. government

- the methods of shipping, and the docs related to foreign trade

- Foreign to foreign moves

- Pricing and rate negotiation via all modes of transportation

- Agent for the Department of Homeland Security

- Track and trace cargo

- Resolve Challenges




                                                                   31
    Freight Forwarders & Customs
               Brokers
   How to select a Freight Forwarder and
    Customs Broker


   Typical costs associated with a Freight
    Forwarder and Customs Broker




          Choosing your Forwarder
• Selection: Select a company you can have a long term
    business relationship with.

• Due Diligence:              complete a credit check
        • Shipper liable for ocean freight, duties, etc.


• Control: Control your cargo.
        • If the buyer selects the forwarder, you are still liable for
          compliance / Caveat Emptor.
        • You giving up control, and knowledge on how to ship to that
          country. It will be harder to market your product to other
          companies.
        • Many forwarders are not licensed and therefore must work
          with another forwarder to move the freight.
        • You must give a POA or authority to a forwarder if you do not
          complete the SED.




Freight Forwarding Licenses / Certifications
     IATA (International Air Transportation Association)
     CHB (Custom House Broker)
     FMC (Federal Maritime Commission)
     NVOCC (Non-Vessel Operating Common Carrier)
     C-TPAT (Custom Trade Partnership Against
        Terrorism)
       MC         (Motor Carrier – Truck Brokerage)
       DG Certified (Dangerous Goods Certification)




                                                                          32
CHB Certifications
 CHB         (Custom House Broker License)

 ABI          (Automated Broker Interface)
 AMS          (Automated Manifest System)
 ACH          (Automated Clearing House)
 ACE          (Automated Commercial Environment)
 AII          (Automated Invoice Interface)
 RLF         (Remote Filer - BDG can file entries at all US Customs
    Ports)




             LOGISTICS SERVICES

   Air Export
        Oversize, Hazardous, Perishables, General Cargo
   Ocean Export:
        FCL, LCL, Break-bulk, Hazardous
   Ocean & Air Import:
        FCL, LCL, Break-bulk, Hazardous, Perishables, General
         Cargo
   Foreign to Foreign Shipments




    The Export Freight Forwarder

                 DOCUMENTATION

    Documentary regulations
    Complete export / import documentation
    AES - (Automated Export System)
    L/C documents
    Legalization
    AWB and OBL
    C of O
    SGS Documentation
    Export Compliance




                                                                       33
     The Import/Export Freight Forwarder

                             CONSULTATION

          Knowledge of U.S. and world wide governmental restrictions
          Understand Financial options: L/C's, and Drafts
          Insurance issues
          Terms of Sale (Incoterms)

                       COMMUNICATION HUB
          Flight and Sailing information
          Payment Status Information
          Overseas Partners
          POD's
          Inspections for Insurance claims.




                        Routed Forwarders

   Beware of Routed forwarders
     –   When working with a routed forwarder "Caveat Emptor"

     –   Forwarders come in all shapes and sizes.
     –   Many forwarders are not licensed and therefore must work with another
         forwarder to move the freight.

     –   You must obtain a Letter of Authority from buyer complete your own
         AES or provide EEI to forwarder.




                         Questions ??




                                                                                 34
  BDG International, Inc.

          Thank you for attending
             today’s seminar !

           Export Presentation Download:
www.bdginternational.com/exportforms/export_forms.htm




                                                        35

				
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