1.
THE DIRECTION OF THE INDUSTRY
§ Experienced marketers launching products and stores.
§ Product Funnels, general eCommerce, F+S.
§ More control - more headaches.
§ Simplifying the process.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

2.
BULK SHIPPING
§ Express for smaller shipments
§ Air Cargo
§ Sea freight
§ Road + Rail
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

3.
EXPRESS
§ DHL, FedEx, UPS
§ Expensive – but fast.
§ DDP – Customs pre-cleared, duties paid.
§ Door-to-door.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

4.
AIR CARGO
§ Passenger Airline cargo vs Cargo Only planes
§ Hazardous considerations
§ FOB – Not pre-cleared by Customs, duties unpaid.
§ Relatively fast – Expensive but less than Express.
§ Up to you to get it from Airport to Destination (FOB).
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

5.
SEA FREIGHT
§ LCL, FCL, TEU pricing
§ Slow – but cheap. 30 days avg transit.
§ Port locations – ocean port, inland/dry port
§ FOB - Not pre-cleared by Customs, duties unpaid.
§ Up to you to get it from Port to Destination (FOB).
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

6.
SEA FREIGHT – EAST COAST/WEST COAST CONSIDERATIONS
§ Panama Canal usage
§ Labor strike potential
§ Cost differential
§ Customer access
§ New Panamax/Panama Canal
deepening and cost impact
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

7.
ROAD & RAIL
§ Imports from Canada and Mexico commonly use
§ “Intermodal” – Rail for part, Truck for part
§ LTL, FTL, Drayage
§ NAFTA
§ Use post-sea/air freight for delivery from port
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

8.
CLEARING CUSTOMS
§ Customs Broker is an independent expert licensed with the U.S.
Department of Homeland Security
§ Duties based on country of origin and Harmonized System code
(HS Code)
§ Inspection for contraband, improper shipment materials (soft
woods without pest spray), quarantines, etc. X-Ray and manual
inspections, including full containers.
§ Other regulatory agencies such as USDA and FDA may be a part
of the clearance process, i.e. for food, agricultural products,
drugs, and cosmetics.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

9.
HAZMAT CONSIDERATIONS
• Lithium Batteries (FAA Fines)
• Flammable liquids
• Toxic substances (EPA/TSCA)
• Aerosols
• MSDS Requirements
• UN Numbers
• Labeling requirements
• DOT/IATA Certifications
• Limited Quantity Exceptions
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

10.
UNITED STATES TARIFFS, DUTIES, AND FEES
§ HS Code information and classification
§ Anti-Dumping duty (steel, solar panels, etc)
§ $800 “De Minimis Exemption”
§ Customs processing fees
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

11.
DECLARED VALUES
§ Under-declaring values to US
Customs is a Crime.
§ Massive Fines and seizure of product
are possible.
§ Factories may attempt to declare low
values or quantities in an attempt to
circumvent laws and be under De
Minimis.
§ US CBP does investigate suspicious
shipments for declared value.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

12.
PARCEL SHIPMENT METHODS
§ Express carriers
§ USPS International
§ Consolidators
§ Packaging considerations
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

13.
EXPRESS CARRIERS
§ DHL, FedEx, UPS
§ Expensive – but fast. Potentially extremely expensive. DDP,
Customs and Duties prepaid often.
§ Ground options to Canada
§ Cargo air only typically
§ Always fully tracked. No other carrier handles.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

14.
USPS INTERNATIONAL
§ International postal agreements. USPS carries out, local postal
carrier in country of destination delivers.
§ Not always fully tracked. Scan errors more likely, particularly
during postal handoff.
§ Express options via “EMS” consortium, organized by Universal
Postal Union (UPU). This will be tracked fully.
§ Typically less expensive than private express carriers, but with
more limitations.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

15.
MAIL CONSOLIDATORS
§ Private carrier sort, brought to passenger airlines, delivered by local national
postal carrier.
§ Typically partnered with USPS for tracking and entering mail stream.
§ Cheapest option when shipping volume is high. Rates can be negotiated.
Fulfillment centers an option for negotiated rates.
§ May not always be fully tracked. Tracked options available such as ePacket
and equivalent services.
§ Delivery time slightly higher than USPS direct. Also depends on destination.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

16.
HAZARDOUS CONSIDERATIONS
§ Only express carriers and freight will allow for
dangerous cargo – special contracts often required.
§ Heavy fines for dangerous cargo making it on a
passenger airplane. (Domestic and International)
§ Lithium battery exceptions for when within the device
– individual cells not shippable without contract.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

17.
DUTIES, TAXES, AND MORE
§ VAT/GST Considerations per country.
§ De Minimis exemptions vary per country or unified
economic zone (such as the E.U.).
§ DDP/FOB shipments – package can be held for unpaid
taxes and duties, until paid by your customer to their
local postal service.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

18.
SAMPLE DE MINIMIS EXEMPTIONS
§ Canada - $20 CAD
§ E.U. – Under 22, exempt from VAT/Duties. 22-150 EUR,
Exempt from duty, VAT is due. 150+ EUR, both due.
§ Japan – 10,000¥
§ Brazil – 50 USD only for Postal shipments. Express carriers
not exempt.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

19.
DECLARED VALUES
§ Under-declaring values risks
being banned from shipping
goods to that country.
§ Customs of country may adjust
declared value based on their
research, and charge customer
higher taxes.
§ Criminal penalties and fines may
apply for countries in treaty with
the United States.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND