Logistics Overview By Ray Bowman Director, Ventura and Santa Barbara County SBDC Hosted by

1. Logistics Overview By Ray Bowman Director, Ventura and Santa Barbara County SBDC Hosted by The Economic Development Collaborative of Ventura County

2. Ray Bowman, M.S., is a business veteran with more than 27 years of international business' experience. He started three businesses and has a broad background in business consulting, serving as the principal of his own international trade consulting firm and working previously as a consultant, trainer and manager for several SBDC offices. As an expert on international trade, Ray has consulted and worked with multinational corporations, banks, developed programs and course curriculum, taught classes in international logistics, finance and import export at several colleges and universities, been a featured speaker and written several books and journal articles on the subject of international business.  Ray Bowman

3. The International Supply Chain

5. International Documentation

6. Shipper • Consignee • Net Weight • Gross Weight • Cube • Cubic Meter • Harmonized Code (HTS) • Country of Origin • Carrier • Notify Party • Incoterm • Currency • Forwarding agent • Quantity(QTY) Common International Document Data Fields

7. Unit Price • Port of Embarkation • Purchase Order Number • Dimensions • Initial Carriage (Mode) • Port of Discharge • Place of Receipt • Marks and Numbers Common International Document Data Fields

8. Bill of Lading Commercial Invoice Packing List Minimum Required Documents for Export aka Commercial Set

9. Other Important Documents Certificate of Origin • Insurance Certificate • Wood Packaging Certification

10. Other Important Documents Export License Inspection Certificate NAFTA Certificate

11. Entry Declaration (3461) Entry Summary Certificate of Free Sale Other Important Documents

12. Other Important Documents Health Certificate Letter of Credit Draft

13. Other Important Documents Request for Quote Proforma Invoice Purchase Order

14. Request for Quote • Quote • Pro Forma • Purchase Order • Commercial Invoice • Packing List • Other Required Documents • Bill of Lading • Entry Documents • Delivery Order Order of Documents

15. All documents must agree with the terms of the proforma invoice and/or purchase order. • All transactional documents should be filed together in order to show the flow of the entire transaction. • Use technology when ever possible to generate and check the accuracy of your documents. • Develop a numbering system for all quotes and reference them on all related documents and paperwork. Tips for Organizing your Trade Documents

16. US Department of Commerce Help Line: 1-800-usatrade UN Documentation Tool Kit: http://unece.unog.ch/etrade/fill_doc_tk.aspx UNZ&Co: http://unzco.com Shipping Solutions: http://www.shipsolutions.com/ SAP Global Trade Management: www.sap.com BNA Export Document Library: http://www.bna.com/products/corplaw/exgw.htm Exporters Encyclopedia: http://www.loc.gov/rr/business/duns/duns1.html#db1c Resources for Documentation

17. Schedule B: Statistical classification of domestic and foreign commodities exported from the United States. Automated Export System (AES): The Electronic Export Information (EEI) contained in the AES is confidential and is to be used solely for official purposes authorized by the Secretary of Commerce under Title 13 United States Code, Section 301 and Title 15, Code of Federal Regulations, Part 30.91. The items being shipped requires Schedule B numbers when the items are valued over $2,500.00 per Schedule B (includes EAR99 items i.e.. pallet of cotton mittens/gloves), or when a license is required. ***Please familiarize yourself with Title 15, Part 30 of the US Census Bureau for full requirements and exceptions: http://www.access.gpo.gov/nara/cfr/waisidx_02/15cfr30_02.html What is Schedule B & When Is it Required?

18. Check the census bureau to find out your product’s number • Example: • 8541.40.6020 : Solar Cells Assembled Into Modules Or Panels Part 16: My HS, Schedule B, or HTS Number

19. http://uscensus.prod.3ceonline.com/#/p=0 3CE: Census Schedule B/HS Classification engine

20. Schedule B - Codes are for EXPORT and are administered by the U.S. Census Bureau • HTS - Codes used to classify IMPORTS and are administered by the U.S.I.T.C. Product Classification (cont.)

21. Schedule B Resourceswww.census.gov/foreign-trade

22. http://rulings.cbp.gov/ Find your HTS using the C.R.O.S.S system.

23. Incoterms 2010

24. Named place is where the shipment originates – usually the seller’s premises • Seller must have goods available and packaged when promised • Buyer must arrange pre-carriage, export clearance, main carriage, import clearance and on carriage • Neither party is required to insure • Transport Mode: All EX WORKS (EXW) (named place)

25. EXW Truck Bill of Lading

26. Named place is either the place where the shipment originates such as the seller’s premises or another place agreed within the seller’s country • Seller is to have goods available and packaged when promised, load collecting vehicle, pre-carriage and export clearance • Buyer must unload delivering vehicle, main carriage, import clearance and on carriage • Neither party is required to insure • Transport mode: All modes Free Carrier (FCA)(named place)

27. FCA (Warehouse or Carrier Terminal) Truck Bill of Lading

28. Named port is alongside a vessel at port on the seller’s side • Seller is to deliver goods, export packed alongside the buyer-designated vessel at the port on the seller’s side along with export clearance • Buyer loads vessel, arranges main carriage, import clearance and on carriage • Neither party is required to insure • Transport Mode: Vessel Only Free Alongside Ship (FAS)(named port)

29. FAS (Sea or Waterway) Carrier’s Receipt

30. Named port is loaded on a vessel at a port on the seller’s side • Seller delivers the goods on board the buyer-designated vessel at the port on the seller’s side along with export clearance • Buyer arranges main carriage, import clearance and on carriage • Neither party is required to insure • Transport mode: Vessel Only Free on Board (FOB)(named port)

31. FOB (Ocean Only) Ocean Bill of Lading

32. Named port is on the buyer’s side • Seller delivers goods export packed on board the seller’s designated vessel at the port on the seller’s side, pays transportation costs to the agreed port on buyer’s side, and arranges export clearance • Buyer arranges vessel unloading, import clearance and on carriage • Neither party is required to insure • Transport Mode: Vessel Only Cost & Freight (CFR)(named port)

33. CFR Ocean Bill of Lading

34. Named place on buyer’s side • Seller delivers goods export packed to the carrier for transportation to the named place of destination and will pay all transportation costs thereto along with arranging export clearance • Buyer arranges import clearance and on carriage • Neither party is required to insure • Transport mode: All modes Carriage Paid To (CPT)(named place)

35. CPT • Carrier Receipt Included • Export Clearance

36. Named port is on buyer’s side • Seller delivers goods export packed on board the seller’s-designated vessel at port on seller’s side, pays all transportation costs to agreed port on the buyer’s side and arranges export clearance • Buyer arranges import clearance and on carriage • Seller must provide at least minimum coverage • Transport Mode: Vessel Only Cost, Insurance and Freight (CIF)(named port)

37. CIF • Ocean Bill of Lading • Insurance Certificate

38. Named place on buyer’s side • Seller delivers goods export packed to the carrier for transportation to the named place of destination and pays all transport costs thereto along with arranging export clearance • Buyer arranges import clearance and on carriage • Seller must provide at least minimum insurance coverage • Transport Mode: All Modes Cost, Insurance Paid (CIP)(named place)

39. CIP • Bill of Lading • Insurance Certificate

40. Named place at terminal on buyer’s side (a terminal at the destination port or a terminal not far beyond the destination port where it’s yet to be cleared by Customs) • Seller arranges export clearance and delivers goods export packed to the named destination terminal, pays all transport costs thereto and unloads • Buyer arranges import clearance Neither party is required to insure • Transport Mode: All Modes Delivered at Terminal (DAT)(named place)

41. DAT Bill of Lading

42. Named place on buyer’s side • Seller arranges export clearance, delivers export packed goods to the named place of destination and pays all transportation costs thereto • Buyer arranges import clearance and on carriage • Neither party is required to insure • Transport mode: All Modes Delivered at Place (DAP)(named place)

43. DAP Truck Bill of Lading

44. Named place is on buyer’s side • Seller arranges export clearance, delivers export packed goods cleared for import at the named destination and pays all transportation costs thereto • Buyer possibly responsible for unloading, on carriage • Neither party is required to insure • Transport Mode: All Modes Delivered Duty Paid (DDP)(named place)

45. DDP Truck Bill of Lading

46. Logistics Pricing Introduction to “Weight or Measure”Calculations for freight

47. Factors that influence the rate chargedfor any particular type of cargo. 1. The weight of the goods being shipped 2. The dimensions of the goods being shipped 3. The shape of the goods 4. Ease of damage Freight Pricing Factors

48. The Cubic Meter

49. Weight and Measure 1 cubic meter — 1000 liters — of water weighs 1000 kilograms or 1 metric ton.

50. Cubic Foot Formula Then divided by 35.314 to convert to cubic meters