International Logistics - Customs, Transportation And Intermediaries


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Lecture on international logistics - customs, transportation and intermediaries.

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  • provide essential information about legislation, policies, procedures and enforcement systems required by the public, business and the officers themselves
  • Improving clearance procedures Increasing speed of trade while maintaining security.
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  • International Logistics - Customs, Transportation And Intermediaries

    1. 1. International Logistics<br />Customs, Transportation and Intermediaries<br />
    2. 2. Agenda<br />
    3. 3. Customs<br />
    4. 4. Trading around the world<br />Rankings reflect the average rankings based on # of documents, length of time and overall cost to complete an import or export transaction<br />Source: The International Bank for Reconstruction and Development/The World Bank, “Doing Business in 2007: How to Reform.”<br />
    5. 5. What importers need to know<br />
    6. 6. Customs – efficiency improvements<br />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<br />risk management techniques are continually being improved<br />intention is to focus on higher-risk cargo<br />
    7. 7. Customs – efficiency improvements<br />risk-assessment of cargo prior to arrival<br />after-clearance audits<br />uniform customs forms<br />electronic filing<br />
    8. 8. Canada Customs-key concepts<br />
    9. 9. CBSA<br />Source:<br />
    10. 10. CBSA Responsibilities<br />Source:<br />
    11. 11. CBSA Responsibilities<br />Source:<br />
    12. 12. CBSA Umbrella<br />Canadian Food Inspection Agency <br />Enforcement program of Citizenship and Immigration <br />Appeals and Compliance branches<br />Immigration <br />Intelligence <br />Customs <br />Source:<br />
    13. 13. Services Offered<br />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<br />
    14. 14. Services Offered – Customs Commercial Operations<br />Source:<br />
    15. 15. Services Offered<br />serve 170,000+ commercial every year<br />process over 11 million commercial releases annually totalling ~ $350 billion in value <br />Source:<br />
    16. 16. AIRS – automated import reference system<br />CFIA-AIRS: user-friendly, searchable database of CFIA import requirements<br />series of questions and answers leads the importer through the applicable regulations, policies and information on all CFIA import requirements for specific commodities<br />
    17. 17. Customs D-Memoranda: D3 Transportation<br />Source:<br />
    18. 18. CBSA effect on international trade and logistics<br />Source:<br />
    19. 19. Transportation Modes<br />air | water | rail | truck | pipeline<br /><ul><li>speed of delivery time
    20. 20. cost
    21. 21. dependability in meeting schedules
    22. 22. capability to handle various products
    23. 23. availability to serve a variety of geographic points</li></li></ul><li>20<br />Enablers<br />quality of transportation services<br />service considerations<br />cost<br />quality of transportation infrastructure<br />quality of information systems<br />
    24. 24. 21<br />Geographic Considerations<br />topography – mountains, water…<br />population concentration in major cities in the developing world<br />distance between major population centres<br />
    25. 25. Canada<br />one central warehouse model<br />central DC + regional DC’s<br />regional DC’s only<br />wholesalers/distributors<br />parts depots…more centralization<br />Population Density<br />Source:<br />
    26. 26. 23<br />Canada<br />DSD (direct to store delivery)<br />store-addressed shipments for cross-docking<br />channel length<br />retail concentration<br />
    27. 27. U. S.<br />one central warehouse model<br />central DC + regional DC’s<br />regional DC’s only<br />parts depots<br />Population Density<br />Source:<br />
    28. 28. U.S./Canada Combined <br />DC’s positioned to service both countries<br />call centres<br />Source:<br />
    29. 29. 26<br />Western Europe<br />trend away from separate country DC’s to single EU DC’s<br />short sea shipping and inland barges common<br />23 official languages within EU (product/packaging differentiated by market)<br />more product-specific warehousing<br />ERP systems facilitate multiple languages, sales credit, taxation differences<br />Source:<br />
    30. 30. 27<br />Japan<br />low retail concentration<br />long channel length<br />long-standing relationships between manufacturers, wholesalers and retailers<br />highly regulated trucking…multiple transfers<br />differences in distribution system based on product<br />short distances offset by traffic congestion…JIT impacted<br />“island country” – transport on coastal vessels<br />government trying to reduce trucking<br />Source:,<br />
    31. 31. 28<br />China<br />complex supply chains<br />government control<br />difficult logistics – “lean”, not demand-driven<br />lower labour cost so transporting cost changes have larger impact<br />larger, less-frequent deliveries (carry more inventory)<br />JIT will require additional DC’s<br />Source:<br />
    32. 32. 29<br />Eastern Europe/ Russia<br />difficult logistics<br />not customer-focused<br />poor infrastructure<br />
    33. 33. Cost<br />Time<br />Improve efficiency and effectiveness of the export / import process<br />Customer Satisfaction<br />Purpose of Intermediaries<br />
    34. 34. 31<br />Intermediaries<br />
    35. 35. <ul><li>transaction-based service or contracted to manage process for exporter / importer
    36. 36. door-to-door services that are used by virtually all global corporations</li></ul>charter vessels<br />tracing<br />consolidation<br />documentation<br />obtain insurance<br />worldwide capability<br />COD deliveries<br />consulting<br />pay freight charges<br />source transportation services - including “deals”<br />translation<br />Pick Up and Delivery (PUD),<br />expediting<br />export packing<br />International Freight Forwarder<br />
    37. 37. 33<br />Similar role as International Freight Forwarders but only do air shipments<br />consolidators (independent)<br />agents (represent individual airlines)<br />2 TYPES<br />Air Freight Forwarder<br />
    38. 38. 34<br />also referred to as NVOs or consolidators<br />Consolidate shipments from several shippers, accept all responsibilities for documentation ...act as carriers<br />Not able to clear customs<br />May provide ocean transportation services to a forwarder (often owned by them or by carriers)<br />Non-Vessel-Operating Common Carriers (NVOCC)<br />
    39. 39. Export Management Companies (EMC)<br />
    40. 40. 36<br />Buy goods in home market, sell in export markets<br />Financial risks associated with foreign markets reduced<br />Creditworthiness of ETC is major risk<br />Export Trading Companies (ETC)<br />
    41. 41. Guide import shipments through Customs<br />Deliver goods to importer<br />Generate customs documents for export shipments<br />May specialize by commodity, mode<br />Electronic communications critical for speed<br />Customs House Brokers<br />
    42. 42. 38<br />Goods Surveyors<br /><ul><li>service may be needed to consummate sales agreements
    43. 43. inspect quality
    44. 44. measure weight
    45. 45. determine extent of damage
    46. 46. often specialize in certain commodities</li></li></ul><li>39<br />For emergency replacement parts worldwide<br />Service often provided by airlines<br />Source:<br />Parts Banks<br />
    47. 47. 40<br />Benefit carriers...less capital tied up, no control problems<br />Some specialize…tanks, reefers<br />Container Leasing Companies<br />
    48. 48. translation...verbal and written<br />packaging…adequate protection, recycling mandates<br />labeling<br /> Other Specialized Services<br />
    49. 49. Bhupesh Shah, B.Sc., MBA<br />Twitter/Facebook/Skype: ethnicomm<br />©ethnicomm inc.<br />