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Import/Export – The New Frontier of Internet Marketing

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This presentation is from Affiliate Summit West 2017 (January 15-17, 2017 in Las Vegas, Nevada). Session description: Many affiliates are moving to launching their own stores, products, and more. Learn about importing product from overseas, dealing with customs, exporting, and more.

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Import/Export – The New Frontier of Internet Marketing

  1. 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. 2. BULK SHIPPING §  Express for smaller shipments §  Air Cargo §  Sea freight §  Road + Rail IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND
  3. 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. 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. 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. 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. 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. 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. 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. 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. 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. 12. PARCEL SHIPMENT METHODS §  Express carriers §  USPS International §  Consolidators §  Packaging considerations IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND
  13. 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. 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. 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. 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. 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. 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. 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

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