Lecture on international logistics - customs, transportation and intermediaries.

1. International Logistics Customs, Transportation and Intermediaries

2. Agenda

3. Customs

4. Trading around the world Rankings reflect the average rankings based on # of documents, length of time and overall cost to complete an import or export transaction Source: The International Bank for Reconstruction and Development/The World Bank, “Doing Business in 2007: How to Reform.”

5. What importers need to know

6. Customs – efficiency improvements adopting new technologies and management systems to reduce delays, documentation and administrative fees which increase trade costs, increase domestic prices and restrict countries from trading risk management techniques are continually being improved intention is to focus on higher-risk cargo

7. Customs – efficiency improvements risk-assessment of cargo prior to arrival after-clearance audits uniform customs forms electronic filing

8. Canada Customs-key concepts

9. CBSA Source: http://www.cbsa-asfc.gc.ca/

10. CBSA Responsibilities Source: http://www.cbsa-asfc.gc.ca/

11. CBSA Responsibilities Source: http://www.cbsa-asfc.gc.ca/

12. CBSA Umbrella Canadian Food Inspection Agency Enforcement program of Citizenship and Immigration Appeals and Compliance branches Immigration Intelligence Customs Source: http://www.cbsa-asfc.gc.ca/

13. Services Offered because of their sheer volumes and the often sensitive nature of the issues they address day-to-day, how they do their job could impact the level of confidence Canadians have in our government and economy

14. Services Offered – Customs Commercial Operations Source: http://www.cbsa-asfc.gc.ca/

15. Services Offered serve 170,000+ commercial every year process over 11 million commercial releases annually totalling ~ $350 billion in value Source: http://www.cbsa-asfc.gc.ca/

16. AIRS – automated import reference system CFIA-AIRS: user-friendly, searchable database of CFIA import requirements series of questions and answers leads the importer through the applicable regulations, policies and information on all CFIA import requirements for specific commodities

17. Customs D-Memoranda: D3 Transportation Source: http://www.cbsa-asfc.gc.ca/

18. CBSA effect on international trade and logistics Source: http://www.cbsa-asfc.gc.ca/

20. cost

21. dependability in meeting schedules

22. capability to handle various products

24. 21 Geographic Considerations topography – mountains, water… population concentration in major cities in the developing world distance between major population centres

25. Canada one central warehouse model central DC + regional DC’s regional DC’s only wholesalers/distributors parts depots…more centralization Population Density Source: atlas.nrcan.gc.ca

26. 23 Canada DSD (direct to store delivery) store-addressed shipments for cross-docking channel length retail concentration

27. U. S. one central warehouse model central DC + regional DC’s regional DC’s only parts depots Population Density Source: wikipedia.org

28. U.S./Canada Combined DC’s positioned to service both countries call centres Source: wikipedia.org

29. 26 Western Europe trend away from separate country DC’s to single EU DC’s short sea shipping and inland barges common 23 official languages within EU (product/packaging differentiated by market) more product-specific warehousing ERP systems facilitate multiple languages, sales credit, taxation differences Source: europa.eu

30. 27 Japan low retail concentration long channel length long-standing relationships between manufacturers, wholesalers and retailers highly regulated trucking…multiple transfers differences in distribution system based on product short distances offset by traffic congestion…JIT impacted “island country” – transport on coastal vessels government trying to reduce trucking Source: wikipedia.org, cia.gov

31. 28 China complex supply chains government control difficult logistics – “lean”, not demand-driven lower labour cost so transporting cost changes have larger impact larger, less-frequent deliveries (carry more inventory) JIT will require additional DC’s Source: wikipedia.org

32. 29 Eastern Europe/ Russia difficult logistics not customer-focused poor infrastructure

33. Cost Time Improve efficiency and effectiveness of the export / import process Customer Satisfaction Purpose of Intermediaries

34. 31 Intermediaries

36. door-to-door services that are used by virtually all global corporationscharter vessels tracing consolidation documentation obtain insurance worldwide capability COD deliveries consulting pay freight charges source transportation services - including “deals” translation Pick Up and Delivery (PUD), expediting export packing International Freight Forwarder

37. 33 Similar role as International Freight Forwarders but only do air shipments consolidators (independent) agents (represent individual airlines) 2 TYPES Air Freight Forwarder

38. 34 also referred to as NVOs or consolidators Consolidate shipments from several shippers, accept all responsibilities for documentation ...act as carriers Not able to clear customs May provide ocean transportation services to a forwarder (often owned by them or by carriers) Non-Vessel-Operating Common Carriers (NVOCC)

39. Export Management Companies (EMC)

40. 36 Buy goods in home market, sell in export markets Financial risks associated with foreign markets reduced Creditworthiness of ETC is major risk Export Trading Companies (ETC)

41. Guide import shipments through Customs Deliver goods to importer Generate customs documents for export shipments May specialize by commodity, mode Electronic communications critical for speed Customs House Brokers

43. inspect quality

44. measure weight

45. determine extent of damage

47. 40 Benefit carriers...less capital tied up, no control problems Some specialize…tanks, reefers Container Leasing Companies

48. translation...verbal and written packaging…adequate protection, recycling mandates labeling Other Specialized Services

49. Bhupesh Shah, B.Sc., MBA Twitter/Facebook/Skype: ethnicomm ©ethnicomm inc.