Erin C. Butler Senior International Account Executive March 23, 2010 INTERNATIONAL LOGISTICS

Erin C. Butler

Senior International Account Executive

March 23, 2010

INTERNATIONAL LOGISTICS

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Importance of a Logistics Solutions Provider The Contract of Carriage – Bills of Lading; Airway Bills Commodity Classification Export Documentation INCOTERMS Regulatory and Compliance Requirements Proper Labeling & Packing Freight Insurance

International LogicsExport University 101

Today’s Topics

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The Importance of a Logistics Solutions Provider

A few options…… Do it Yourself Freight Forwarder Integrator (FedEx, UPS, DHL, etc.)

Each has advantages based on your logistics strategy


A Logistics Solutions Provider can simplify your export program by allowing you to concentrate on your business.

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Transportation Mode

Ocean Railway Trucking Air A combination of the above


The good news is that there are choices. Choose one or more to fit your specific needs.

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The Contract of Carriage

Form of documentation differs between modes of transportation

The Ocean Bill of LadingContract between the Shipper (You) and the CarrierCarriage of Goods by Sea (COGSA) Limitation of Liability

Air Waybill – Samples provided Trucking – Bill of Lading Rail – Bill of Lading


All modes of transportation require documentation.

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Commodity Classification

Avoid Vague Descriptions - a good description should answer these questions – What is it? What is it made of? What will it be used for or with? How many are there?

Harmonized System (HS) numbers Worldwide coding system for classifying all commodities Used no matter where the shipment originates First six digits are the same Some countries utilize an additional four digits (ex: Schedule B)


Classification of goods will have direct impact to your duty and tax rates and documentation requirements.

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Export Documentation

Most common documents Commercial Invoice Certificate of Origin Export Declaration Insurance Certificate Bill of Lading or Airwaybill Packing List

In addition: If a Letter of Credit is involved, there could be any number of additional

documentary requirements that add to the “package” Export licenses may be required for certain items


A typical export shipment from the U.S. could require any or all of these documents

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International Commercial Terms - INCOTERMS

International traders use a widely agreed-upon shorthand type of terminology called INCOTERMS to define the basis for the sale. (INternational COmmercial TERMS)

Once the buyer and seller agree on one of these terms, it will clarify: (1) where in the journey the seller releases the goods to the buyer; (2) what charges and documentation are the seller’s responsibility prior to that point; and (3) what charges and documentation are the buyer’s responsibility after that point.

An INCOTERM is always paired with a location and is meaningless without it. For instance, FCA Memphis is quite a different price from DAF Laredo, but the same goods may pass through both points en route to a customer in Mexico.


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INCOTERMS – Examples

Any Mode of Transport, including Multimodal EXW - Ex Works (+ named place) FCA - Free Carrier (+ named place) CPT - Carriage Paid To (+ named place of delivery) CIP - Carriage and Insurance Paid to (+ named delivery place) DAF - Delivered at Frontier (+ named place along border) DDU - Delivered Duty Unpaid (+ named place of delivery) DDP - Delivered Duty Paid (+ named place of delivery)

Sea and Inland Waterway Transport Only FAS - Free Along Side (+ named port of shipment) FOB - Free on Board (+ named port of shipment) CFR - Cost and Freight (+ named destination port) CIF - Cost, Insurance and Freight (+ named destination port) DES - Delivered Ex Ship (+ named destination port) DEQ - Delivered Ex Quay (+ named destination port)


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Regulatory and Compliance Requirements

Knowledge of the regulatory requirements for your goods will ensure a smooth transit with minimal delays and that your company remains compliant.

Customs regulations - considering the product type Compliance - important to company survival– Keep accurate records– Fines can be very expensive– Resources and training are available

Expectations for carrier’s performance?–What can shipper and recipient expect from carrier during the cycle.. – Online tools are available

Knowledgeable resource to manage your program


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Proper Labeling & Packing

Recommendations for small packages

Always ship in sturdy, non-descript boxes and seal with high-quality packing tape

Use boxes larger than 7" x 4" x 2"Pack boxes with care Include contact information inside the inner boxAddress your packages carefully If shipping multiple packages, do not tape boxes together


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Proper Labeling & Packing – cont’d

Recommendations for Skid Loading

Follow all carton orientation symbols or verbiage when ableDistribute weight evenly on the skid/pallet to avoid excess

weight being placed on carton contentsStack cartons squarely on the skid/pallet to the edge (do not

overhang) and corner-to-corner to maximize compression strength

Top of skid/pallet must be flat to minimize chances of lost or damaged cartons (pyramid stacking is unacceptable)

Shipments must be securely banded, bolted and/or stretch/shrink-wrapped to the forkliftable base

Individual cartons should include the origin, destination address whenever possible

Remove or mark through all old labels


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Freight Insurance VS Declared Value

Obtaining Insurance is a choice that warrants careful consideration.

Why Insure? Carrier’s limit of liability (COGSA & Warsaw Convention) File claims timely with complete information– Insurance pays the claim and then files with the Carrier

Use “declared value” to increase carrier liability when needed– Based upon replacement value of the goods

Insurance or declared value may be a requirement when using Letters of Credit

Insurance Cost - usually less than 2% of shipment value (1.25% is avg.)

Insurance VS Declared Value – Choose your best option


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FedEx Resources

Web Sites– Global Trade Manager - http://www.fedex.com– EEI Filing Options Guide - http://www.fedex.com/us/software/support.html– FedEx Export AgentFile Tool – http://www.fedex.com/eei

FedEx Global Regulatory Services – Toll Free 1.800.851.3336 – Email [email protected]

FedEx International Customer Service– Toll Free 1.800.GoFedEx 1.800.463.3339

(say “International Services")


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Questions?

Thank you!

Erin Butler

Sr. International Account Executive, FedEx

[email protected]

504-214-8747


Documents

Erin C. Butler Senior International Account Executive March 23, 2010 INTERNATIONAL LOGISTICS