The continued presence of the US and its allies in Iraq and Afghanistan has also increased political stress between the West and Muslim countries. The publicity, hype, and disclosure of the 100 percent passenger air cargo screening rule was a clear indication to terrorists that there is a huge black hole in the security screening program: Air cargo coming into our country from abroad is not subject to rigorous screening. .
Chemical Facility Anti-Terrorism Standards (CFATS)
Similar to the implementation steps of C-TPAT, the TSA focuses on countries with the highest volume. The TSA continues to offer information about the CCSP program through their website: www.tsa.gov/ccsp.
Facility Inspections
One of the challenges currently facing the shipping industry is the limited technologies available. This must be particularly challenging and we can only do our best in educating our foreign business partners about the importance of security on both sides of the supply chain.
New, More Efficient Emergency Response Procedure
Department inspectors may also inspect the facility at any time based on new information or safety concerns. Inspections of high-risk chemical facilities will help the Department ensure compliance and promote the highest level of human safety.
General Trade Compliance and Managing International Business
Remember that a company must dig deep into its operations to obtain every bit of information that needs to be disclosed in relation to a breach. In that case, the Miami-based airline paid OFAC a $225,000 settlement for lying to the government.
Viewing the Top Government Agencies and Finding Synergies
CBP's mission is responsible for protecting the American people and national economy, working to secure the country's borders both at and between official ports of entry and also expanding our security zone. The Treasury Department's Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions based on U.S.
GAO Undercover Operations Show Continued Vulnerability of Domestic Sales Becoming Illegal Export
In addition, GAO was also able to export a number of benign versions of these articles using the US. The United States, which is currently the leading producer of advanced military and dual-use technology, has become a prime target for illicit procurement efforts. launched by terrorists and foreign governments, according to the GAO report.
Revisions to Incoterms
The GAO was able to export without question to a country it identified as "a known transhipment point for terrorist organizations and foreign governments seeking to acquire sensitive technology," the report said. The issue of illegal retransfers only came up again five days after the release of the GAO report due to the conviction of Traian Bujduveanu, a naturalized American.
Trade Compliance Management Avoids Fines and Penalties
Incoterms 2010 ICC Official Rules of Interpretation of Commercial Terms can be ordered directly by visiting the iccbooksusa.com website. BIS charged that on a number of occasions in the summer of 2004, DHL caused, contributed to acts prohibited by the EAR when it transported goods subject to the EAR from the United States to Syria, and DHL failed to retain air waybills and other export controls. documents required to be retained under part 762 of the EAR several times between May and November of that year.
Contracts of Sale
However, since there are several important differences between the CISG and the UCC (which your legal department is familiar with), the U. It is critical that you are familiar with the CISG if you are involved in the international sale of goods.
Considering a Mock Audit in 2012 for Trade Compliance? Here Are the Reasons Why You Should!
Not knowing the laws and regulations is not an extenuating circumstance in reducing these fines. Part of the mock audit process is to review all parts of the supply chain for compliance issues.
NAFTA Issues for 2012 and Beyond
Preferential Criterion B: ``Tariff Changes and Regional Value Content.'' According to NAFTA, ``a good is wholly produced in the territory of one or more NAFTA countries and satisfies the special rule of origin applicable to its tariff classification. . Now we come to priority criterion C.: ''The goods are produced entirely in the territory of one or more NAFTA countries exclusively from originating materials.
Freight and Logistics
Foreign Trade Zones Board, obtaining an FTZ can be faster and less expensive than in the past. There was a lack of clear products defined in the original agreement for the 3PL service provider.
International Logistics: How Can a Shipper Utilize a Transportation Provider (Forwarder and Broker) to Become Trade Compliant
R. 2355: Making Opportunities Via Efficient and More Effective National Transportation Act of 2009
While there are many benefits to the supply chain as a whole, such as reduced cargo damage in transit, more effective security measures, more economical and efficient transportation system infrastructure, after reviewing the bill, I found one very important. and very common question: how will these measures be paid. The current HMF is 0.125 percent of the value of the commercial cargo entering the seaport.
President Obama’s Export Initiative
Items in the highest tier are those that provide a critical military or intelligence advantage to the United States and are almost exclusively available from the United States, or items that are a weapon of mass destruction. Middle-tier elements are those that provide a significant military or intelligence advantage to the United States and are available almost exclusively from our multilateral partners and allies.
Technology: Protecting Confidential System Information and Data
A cross-functional information security team works most effectively when synthesizing the results of a risk assessment, management survey, and software risk assessment tools. However, in this chapter we focus on an overview of skill sets that are particularly useful for the buyer sourcing goods and materials from overseas suppliers.
Purchasing from Foreign Sources
However, before buying the goods, the importer has to go through a number of steps to make sure that the deal will be successful. For example, the importer must satisfy itself that the foreign customer is a "legitimate" entity authorized to do business with the United States.
Determining the Best Overseas Suppliers
The Trade Compliance Skill Set for the New Millenium and Beyond
This discussion addresses how purchasing managers can go about structuring trade compliance programs in their import and export efforts. How we define these is a critical but fundamental aspect of global trade and trade compliance management.
Concluding Remarks
Freight Forwarders, Customs Brokers and TPLs are just some of the providers that work with the major import and export companies. This chapter breaks down all the stuff one needs to know about managing import/export logistics and getting great value for all the outside services needed to move products internationally.
Using Service Providers
Until we have Star Trek capabilities and can move things through space electronically, all cargo will have to physically move from point A to point B. Logistics management in the import/export trade is critical as shipping costs and shipping efficiency will determine the final competitiveness of the transaction.
Import/Export Trade: Five Key Areas to Get the Best from Your Forwarder
The effectiveness of the sender will depend in part on how you manage this valuable relationship with the seller. When used effectively, the forwarder can maximize profit, mitigate risk and guide you to a successful export.
Use of ‘‘Consolidators’’ in Import/Export Trade: A Viable Option for Ocean and Air Freight
NVOCC clients benefit as membership grows and management becomes stronger. This space is then made available to the air freight consolidator's customers as needed, with a portion of the fee rebate returned to them.
Potential Increases in Airfreight Rates
Remember that larger freight forwarders maximize their leverage with freight forwarders based on commitments in the ''total business'' of their clients' exports. These are just a few of the options to consider when dealing with the issue of potential rising air freight rates in the coming years.
Negotiating International Freight Rates
Once these have been established and you have communicated this to the carrier, you have taken the first step in the negotiation process. The impact of the Ocean Shipping Reform Act of 1998 (OSRA) Lower prices are the ''silver'' medal, but service can be the ''gold!''.
Controlling Shipping Issues in the Entertainment, Communications, and Broadcast Industries: Key Practices
This maximizes safety, reduces the chance of loss and damage, and usually offers the best potential for cargo arriving in its intended condition. Following these guidelines will maximize the bidding process to get a good price and ''the best value for your transportation dollar''.
Shipping Equipment Internationally on a Temporary Basis
The Carnet document travels with the equipment and is logged in and out of the countries on entry and exit. The high cost of the TIB, along with the timing and difficulty of arranging it, make the TIB a last resort.
Shipping Perishable Freight
The outside of the box must have a Haz-mat label DRY ICE CLASS 9, identified as perishable, and any special handling requirements must be clearly marked. The carrier cannot combine a shipment with dry ice with live animals, as a result of which the perishable goods are bumped at the time of loading.
Use Specialized Carriers and Forwarders for the Best Service and Rates
Know Your Commodity Classification
Review the Logistics
Develop Negotiating Skills and Bring Them into Practice
Customer Service in Freight and Logistics
Good customer service is creating a ''perception'' that you always work in the customer's best interest. Customer service is a highly integrated aspect of freight and logistics management and must be another set of skills to be learned, developed, cultivated and managed in all global supply chain functions.
The Choice of Transportation: Air Versus Ocean
The savings based on cost comparison alone decrease as the size of the shipment decreases. The location of the shipping point and origin determine the mode of transit.
Ocean Freight Rates Are Increasing: Buyers Beware!
The river system may incur lower inland costs than freight transportation, but still, the closer you are to the port, the lower your overall transportation costs. Air freight to the Far East is expensive compared to sea freight, where there is a lot of traffic and many competitors.
Dealing with Strikes in Purchasing Transportation Services: The 1998 United Parcel Service Disaster and Los Angeles/Long Beach
UPS, which at the time reportedly carried 80 percent of all small package freight in the United States, was never going to be replaced in the short term, under the best of circumstances. Suggest that the recipient adapt to the situation and that you send only critical goods in the short term.
Solid Wood Packing Treatment Guidelines
This standard, which is called IPPC (International Plant Protection Convention), requires that wood packaging material be treated or fumigated with methyl bromide and marked with an international mark certifying the treatment. adopted the IPPC guidelines because they represent the current international standard determined to be effective for pest control in the use of wood packaging materials worldwide in global trade. In 1998 APHIS issued regulations requiring all wood packaging from China to require a certificate showing that the wood had been properly treated.
Hazardous Materials and Handling Issues
This person must be available to all Haz-mat employees for the purpose of support, review and assistance. The Haz-mat person in charge should also be connected to this number for emergency response support.
More DOT Security Scrutiny for Haz-Mat Shippers
Notice of the security plan and employee training requirement was published in the March 25 Federal Register and the rule went into effect the same day. All Hazmat employees must receive training that provides an awareness of the security issues associated with the transportation of hazardous materials and possible methods of improving transportation security.
What to Do When the Hazmat Inspector Comes to Call?
This should include the inspector's name, agency name, telephone number and address of the inspector's place of business, fax and email address. Finally, the report must tell what next steps your company should take, according to the inspector.
Utilize Agents or Grow Organically?
As companies grow and expand into both domestic and international markets, a key ingredient to their success is how they find, use and manage an agency network. The transport capacity, manpower, purchasing power and convenience of an existing agency network are several reasons why this becomes an obvious opportunity for transport companies to have satellite capabilities.
Securing and Qualifying Great Agents
An agency network opens up access to carriers, service providers, warehouses and other related services that newer or smaller companies might be denied from the outset or would require significant financial value from them. The key issue here is not to think about the agency network because it is the obvious choice.
Maintaining Financial and Regulatory Integrity
Today, issues with FAA, TSA, DOT are enough to have a full person engaged in compliance. You need to be on top of all these issues with your agents, proactively, not reactively.
Long-Term Performance Guidelines: Domestic and International
In addition to all this, agents often act as liaisons between you, the principal customer and government authorities where potentially significant transfers of information take place. Due diligence includes obtaining information very precisely that answers all these questions and putting in place agreements that suggest compliance, clear lines of responsibility and actions to avoid problems with the regulations to deal with when handling domestic and international shipments.
Relationship Building
It's how we handle these tough times, which will happen at some point, that will determine the long-term value of the relationship. Spend time and money on all the legal, due diligence and regulatory issues we discussed.
Summary: Creating ‘‘Win-Win’’ Relationships
Breaking bread, getting to know the agent and working towards strong business but personal relationships will greatly ensure the ability to solve most problems and create the best opportunity for profit, growth and sustainability.
INCO Terms, Revenue Recognition, and Transfer of Title
Proper Packaging Is Key! And Is Typically the Shipper’s Responsibility
This then directly affects the choice of INCO terms to minimize a company's liability exposures in the product liability area. The INCO period of the sale was FOB port of export and delivery has taken place, but the nature of the ''deal'' changes how this sale is really made.
International Logistics for Imports and Exports Impacts Issues with Sarbanes-Oxley
Most corporations do not address these seven areas as responsibly and thoroughly as they should, which leads to logistical and compliance issues in their global supply chain. In 2011, the Obama administration supported by Congress still prioritizes all issues related to supply chain security and trade compliance.
The FOB INCO Term 2010 and Global Logistics Management
Banks and finance companies that lend or pay against documents under draft, L/Cs, etc., need to be more careful in how they review and accept documents to make payments. Insurance brokers and underwriters along with carriers who provide cargo insurance need to be more careful in how they assess risk and exposure in global trade.
Free Trade Zones and Bonded Warehouses
Carriers must be selected carefully and with caution, particularly in light of their track record in honoring intended loading arrangements. In general, the use of FOB, along with all the other INCO terms, must be done with a high degree of judgment.
Making the Free Trade Zone Work for Your Import/Export Supply Chain
What Supply Chain Managers Should Know About Custom-Bonded Warehouses
In addition, this chapter provides insight into risk management skills, which are vital to the survival and growth of the export trade. Risk management in the global supply chain in 2012 is becoming one of the most critical concerns of senior management.
The Logistics of Political Risk Management in Exporting
The policy should be written to follow the nature of the particular trade, transaction or contract that takes place in the foreign market. There are only a handful of specialist political risk brokers, spread across some major brokerage houses and some small specialist institutions.
Political Risk Insurance Update: 2010 and Beyond
In many ways, political risk insurance is similar to export credit insurance (some people also include export credit insurance in the list). Involving local staff in the management and operations of a local business can also reduce exposure to political risk.
Political Risk: Not for the Fainthearted
Political risk underwriters of the future must be multifaceted and have talents beyond those required by "normal" underwriting. In addition, the severity of political risk exposure requires more of a policyholder-insurer partnership than more traditional forms of insurance.
Insurance Against Political and Credit Risk Exposure for the Small and Medium-Size Enterprise
At that point, the professional staff of the insurance company that provides the kidnapping and ransom insurance stepped in and acquired local talent who understood the situation and could negotiate the employee's release. American companies must also consider the fact that foreign governments often take highly unfavorable positions on questions of the US.
Basics of Insuring Against Political and Credit Risks
Multinational companies must take measures to manage losses, including, but not limited to: reviewing contracts, using local services abroad, monitoring currency laws and international trade trends, and being aware of political activity worldwide. Given the international market environment, predictions can be made that reduce the risk of a political event harming a successful global trading activity. Exporters from different countries also face other forms of exposure, including embargoes from the exporting government or the government of the country to which the goods are shipped.
Political Risk Coverage Analyzed: Ten Critical Steps for Risk Managers
The company filed a claim under the embargo provisions of its political risk insurance policy and received full compensation. Export credit. Most political risk coverage excludes export credits (the direct cause of the loss comes from the private buyer).
Use a Specialist to Arrange International Protection
List all broker and underwriter personnel and include their home telephone numbers. Policy insurance and export credit insurance can be expensive and development of insurance data time-consuming; However, the exposure justifies the effort and cost because of the protection it provides against potential disaster.
Transporters and Exporters Need Political Risk Coverage
Loss control measures should also be put in place for political risk clients exposed to underlying assets. While the ability to bear political risk is decreasing due to recent losses, the need for coverage is increasing.
Getting More from Marine Insurance
An exporter of goods or services may also suffer losses as a result of an action by the United States because that loss was a direct result of a policy decision by the United States.
Competitive Markets
The potential problem for shippers with this type of sale is that if part of the shipment is lost or damaged en route to the buyer, the buyer may rightfully refuse payment. Insurers will expect you to seek payment from the buyer or the buyer's insurance company and will pay the loss only on the basis of the loan, but if repayment cannot be made, the loan becomes a final settlement.
Insurance and Creative Financing: Down Payments in Solving a Huge Impediment to Trade
The amount of the counter guarantee requested is usually between 5 and 10 percent of the down payment or progress payment amount. When guaranteed by the Ex-Im Bank's working capital guarantee facility, the lender's collateral requirement is reduced to 25 percent of the amount of the guarantee.
Using Technology to Gain a Competitive Advantage in Global Trade
Guidelines and options for using technology in global trade are described in this chapter with an emphasis on documentation, tracking and information management. And even more importantly, technology is now a very critical component of an importer's and exporter's responsibilities in managing global trade compliance management.
Automation Takes the Pain out of International Trade Documentation
These are just a few of the areas that a technology interface can be used to assist a corporation in managing security and compliance responsibilities. Customs is also now looking at a web-based customs entry system, which would eliminate any of the current formal and cumbersome systems currently in use.
EDI—What to Expect from the Carrier
Many of the third-party devices act as conduits for carriers before transfer to the sender. EDI has become more modern for communication and services provided with the operator/exporter.
Where Is My Export Freight?
Commerce: Export Logistics
Whatever ordering system is structured, there is a basic premise in international business that you need to know who your customers are. Then you realize how useless credit cards can be in international sales when you don't know the other party.
Technology Impacts Importers in 2011 and Beyond
Maintain control of international freight decisions and third-party freight forwarding services. The importer should seek to control the international
The control of these decisions will compliment the efforts of compliance and timely submission, as the importer will have direct access to advanced shipping information provided by a service provider with their direct interest as a primary responsibility.
Initiate proactive discussions with your current manifest filing par- ties. Importers should conduct proactive discussions with the international
Determine the automated options available from your current service providers such as freight forwarders and customs brokers. You should conduct
Good faith intent will be reflected at the operational level if such top-down commitment is demonstrated throughout the organization. Often they can build the cost of the technology interface into the freight relationship, and they are often at the cutting edge of opportunity.
Technology Utilization for Denied Party Screening Allows
Corporations to Comply in a Comprehensive and Timely Manner!
World-class best practices, concerns and Sarbannes-Oxley (SOX) issues in trade compliance can be greatly benefited by the use of technology in the global supply chain. The role of technology in trade compliance management is also another key ingredient of the use and value of technology in the global supply chain.
Successful International Sales: Future Managers Will Require Numerous Skill Sets
The process of developing the relationship, over several meetings, over several months to years, may be required to create the opportunity. The process is time-consuming, travel is expensive, and all the related peripheral issues have associated costs: sending samples, product registration data, answering questions, going back and forth with international communications and global courier services, etc.
Developing Resources and Networking Channels
Understanding the Landed Cost
The customer in Paris has additional costs to bring the goods to the place of sale or use. All of these and a host of other issues can affect landed costs for the importer.
Creative Marketing Skills
When the French customer calculates his landing costs, he must include all costs for transporting the goods from origin to destination, regardless of whether or not they are under the specific control of the exporter. Offering in-country sales and marketing support on behalf of the importer to the customer base can be critical.
The Power of Networking in International Trade
Conducting product seminars, sales campaigns, finding time to go on sales calls, etc. can be invaluable in developing local knowledge, leading to more orders. This will inevitably mean using a variety of approaches, strategies and plans tailored to the nuances of culture, economics, logistics and market politics.
Matured Export Departments: Review and Analysis
Attracting Quality Personnel
Keep employees informed with timely, responsible communication so they know what's going on. Since corporations have compliance officers involved with the Occupational Safety and Health Administration (OSHA), FDA, and hazardous materials, they will also have them in their supply chains.
Keeping Out of Trouble
The ability to work in an atmosphere where the responsibilities certainly exceed his or her authority.
Global Supply Chain Management Personnel Deployment: Import/
Export Compliance Guidelines
If supply chain personnel move on, there are written guidelines for new personnel to follow. The development of resource assistance in import and export is a critical step to successful global supply chain management.
Chambers of Commerce
In addition, the types of information that many organizations involved in trade assistance can provide are presented. The various government agencies engaged in trade compliance expect importers and exporters to be informed and have regular means of updating and current events in regulations.
State Governments
S. Department of Commerce
The International Trade Administration (ITA) is part of the Department of Commerce and deals with the US. For a description of the various trade shows and trade missions in which the Department of Commerce participates, go to www.export.gov.
Small Business Administration (SBA)
The Trade Service is available on the Trade Service website (www.ita.doc.gov/tic) or by calling a trade specialist. Selection preference is given to events in established markets that are suitable for new export or "export ready" companies.
World Trade Centers
Commercial Banks
International World Trade Clubs
Trading Companies
Universities and Major State and Community Colleges
Other Advisers
Key Periodicals
Recommended Schools in Import/Export Supply Chain Management
Key Internet Websites
Engagement and Resource Development: The New Trade Compliance Mandate
These can easily be developed by participating in the CBP and BIS outreach programs, which are available on their websites (www.cbp.gov and www.doc.bis.gov). Harmonized numbers that cannot be used for export http://www.aesdirect.gov/support/invalid_hts.html www.census.gov/foreign-trade.
Overview
The focus of this chapter is on defining all of the old and new compliance and safety regulations that supply chain managers involved in imports and exports will face in the new millennium, most of them as a result of the tragedy of September 11, 2001. and regulatory impact aspect builds a compliance element into the security aspect.
Automated Export System (AES)
Whether it's compliance or security, the events of 9/11 have added a whole new dimension to supply chain management, forcing responsible managers to pay attention to a whole set of regulations and legal processes.
Advance Passenger Information System
Trade Act of 2002
Homeland Security Act
The law protects customs revenue from being diverted to other parts of the new department.
Container Security Initiative
Customs Trade Partnership Against Terrorism
Free and Secure Trade
Vehicle and Cargo Inspection System
Automated Commercial Environment
Transportation Security Act of 2002
24-Hour Manifest Rule
Four-Hour Advance Notification
Nevertheless, the new proposal outlines an electronic manifest notification that must occur at "wheels up" or at least four hours before the arrival of the import aircraft. If for any reason customs are concerned about the safety of the contents in connection with a terrorist threat, the landing rights of the entire aircraft may be denied.
Importer Security Filing Program
Patriot Act
Operation Safe Commerce
Among the technologies being considered are digital photography, radiation detectors, container tracking by GPS satellite and smart seals equipped with radio frequency tracking technology. Aside from providing security, many companies do not see a direct benefit in purchasing these technologies, thus requiring implementation of government mandates to “sign up” and incorporate these technologies into their supply chain.
Department of Homeland Security (DHS)
The testing program will have the added benefit of ''fixing the bugs'' and creating a ''common standard'' for import security programs. But until the time these solutions are mandated by the government, importers will not rush to buy these technologies due to their high cost.
What Is the Mission of DHS?
America needed a single, unified homeland security structure that would improve protection against current threats and be flexible enough to help meet the unknown threats of the future. DHS has realigned the previously confusing patchwork of government activities into a single department, giving state and local officials one primary point of contact instead of many, an important advantage when it comes to issues related to training, equipment, planning, exercises and other critical homeland security needs.
What Was the Plan for Creating the New Department Time Line
A commitment to provide updated information on the progress of the DHS transition team. United States Coast Guard (USCG). The Commandant of the Coast Guard reports directly to the Secretary of Homeland Security.
Who Is Part of DHS?
Office of the Inspector General. The Office of Inspector General serves as an independent and objective inspection, audit, and investigative body to promote efficiency, effectiveness, and economy in DHS programs and operations, and to prevent and detect fraud, abuse, and maladministration. , and waste from such programs and operations. In addition, the former INS adjudication and benefits programs report directly to the Deputy Secretary as the Office of Citizenship and Immigration Services.
Green Customs Project
After three tense days of testing, the source of the radiation was determined to be a container of clay tiles. These trace amounts accumulate, causing a shipment that appeared as non-radioactive cargo to be the focus of intense scrutiny by CBP, the Department of Energy and even the Federal Bureau of Investigation.
Verification of Government Contracts
Import/Export Recordkeeping Is Serious Business
Accounting has that invoice.''''''Sales keeps those order forms.'' heard." "The woman who used to work here said we don't need it." If any of these answers sound familiar, your company is not alone. In cases where the importer/exporter does not receive complete documentation from their broker/forwarder, a written instruction letter must be given to the company's agents.
Successful Supply Chain Complaince Management
TPAT (Customs Trade Partnership Against Terrorism) 24-Hour Manifest Ruling
These are just some of the issues facing supply chain leaders in the post-9/11 world. Supply chain and all compliance and security issues are evolving as we read this.
New Guidance on Use of ITAR Licenses and Exemptions
The Dutch DPA may ask for a copy of the customs declaration and accompanying documents to check whether the exemption was correctly requested at the time of import. If the correct ITAR exemption was not claimed on the customs declaration, the CBP will detain the export shipment.
AES and the FTR (Foreign Trade Regulations)
Did you know that it is against the regulation (15 CFR 30.60) if you share the AES information with foreign entities. Here we read that in a routed export, the USPPI has the right to request a copy of the written authorization given by the FPPI to the U.
Best Practices: Routed Exports Transactions
The government requires the USPPI to act with due diligence, reasonable care and supervision and control of the export process. Ask the freight forwarder for a copy of the written authorization or power of attorney given to them by the FPPI authorizing them to file the AES on their behalf.
BIS Update
