Most exporters understand that HTS (Harmonized Tariff Schedule) or Schedule B classification is the first step in export compliance. Other critical factors are ECCN (Export Control Classification Number) or EAR99, License/License Exception or NLR (No License Required), and Country of Origin. EAR99 is the designation for a commodity that is subject to the EAR (Export Administration Regulations) but not specifically described by an ECCN on the CCL. Got all that?

I have found that in many cases using EAR99 and NLR is assumed rather than researched. That is malpractice in export compliance. We’ll cover ECCN in this post.

Order of Review– Determine if your commodity is subject to the EAR (Export Administration Regulations). Use BIS decision tree. https://www.bis.doc.gov/index.php/export-control-classification-interactive-tool

CCL (Commerce Control List)– If your commodity falls under the EAR it is either EAR99 or requires an ECCN. EAR99 means that an item is subject to Export Administration Regulations but is not listed with a specific ECCN. Check the CCL. https://www.bis.doc.gov/index.php/regulations/commerce-control-list-ccl

CCL Index- The CCL is not especially user friendly but the CCL Index is a good resource. If you find your commodity in the index you can then dig deeper into the CCL. https://bis.doc.gov/index.php/documents/regulations-docs/13-commerce-control-list-index/file

For help with ECCN classification contact mitch@adhoclogistics.com

Lindsay WardlawTrade Compliance Expert

Hi LinkedIn!

I have been asked to talk to two separate groups of students over the next two weeks about careers in trade compliance and about running a trade compliance program.

Is there any advice you would share with an undergraduate considering starting a career in international trade or an attorney thinking about moving to (or even starting in) corporate compliance?

Mitch Kostoulakos, LCB Ad Hoc Logistics LLC, Licensed Customs Broker, International Logistics Consultant

C-level executive involvement and commitment is critical to the success of a compliance program. Your students will probably not have access to C-level in the early stages so advise them to find a mentor who is respected in the organization and has access to C-level.

Forced Labor is an important issue for importers and customs brokers to understand and it is complex. I decided to educate myself on the topic and found a good overview and set of resources on the CBP website. Here is the link:

https://www.cbp.gov/trade/forced-labor

In the 19th Century boilerplate meant rolled steel templates used to make boilers and the printed material on the plates.

Today, the term boilerplate refers to standardized text, copy, documents, methods, or procedures that may be used over again without making major changes to the original. Boilerplate is commonly used for efficiency and to increase standardization in the structure and language of written or digital documents.

Traders when was the last time you reviewed your Commercial Invoice for accuracy or updates? Chances are it has been quite a while, given the more immediate challenges in logistics today. The same question applies to documents produced by your freight forwarder. Checking your CIs for accuracy is a best practice and can help reduce customs delays. Reviewers with “fresh eyes” are an even better idea.

While there is no universal standard format for commercial invoices, including the following key elements will help reduce customs delays and entry mistakes:

Description of goods – Vague or incomplete descriptions are the most common cause of customs delays. Avoid trade names, brand names, jargon. What is it? What is it made of? What is it used for?

Recipient or Importer of Record contact info- customs delays are often prolonged by slow communication between CBP and importers or between exporters and customs agencies in other countries. Make sure phone and e mail info is spelled out on the CI.

Invoice Number, Page Numbers – Avoids confusion for entries with multiple CIs or CIs with multiple pages.

Country of Origin– Best to use ISO country codes.

Related/Not Related parties

Incoterms and currency- these are elements of the sales contract. Indicate version of Incoterms (2010, 2020) as all parties may not be aware of updates.

Harmonized tariff code to the 6 digit level– if unsure best not to include this info.

Summary of Value- must include IV Invoice Value. Can also include NDC Non Dutiable Charge (subtractions), AMMV Add to Make Market Value (additions), NEV Net Entered Value (bottom line- dutiable).

For immediate assistance contact mitch@adhoclogistics.com

I am pleased to accept appointment to the Merrimack Valley Regional Transit Authority (MVRTA) advisory board as Selectmen’s designee for the Town of Merrimac.

I’ve always loved baseball and attribute my math skills to studying the back of favorite players’ cards. The basic statistics were batting average, home runs, and rbi for hitters. For pitchers it was wins-losses and earned run average. These measures don’t even scratch the surface compared to the sabermetrics used in today’s game.

Logistics and baseball have some common features. We play every day, errors can have a big impact , managers get criticized, and there are plenty of rules and regulations. Like sabermetrics in baseball, we can measure logistics performance in many different ways.

Measuring and managing logistics performance is a full time job for professionals and the volume of data can be daunting. Managers in other functions such as finance, marketing, or manufacturing may need a quick view of logistics data as it relates to their responsibilities.

Here are a few general measures for the dashboard:

Absolute Performance- monitor absolute logistics failures rather than percentages. For example, 99.5% on time performance appears very good. However, in a high volume operation, it could mean hundreds or thousands of late orders per day.

Inventory Turnover- common measurement in asset mgt.

Order Fill Rate- customer service and warehouse productivity measurement. Can also use item, line, or value fill rate.

Warehouse Utilization %- indicator of good asset mgt.

Warehouse Productivity- measure of units received, stored, picked, packed, and shipped per hour.

Order Cycle – reduced order cycle means less inventory in the system and greater customer satisfaction. Longer order cycle means more inventory in the system and reduced customer satisfaction.

Lost Sales- inverse relationship with inventory. Higher inventory costs, lower risk of lost sales. Lower inventory costs, higher risk of lost sales.

Transportation costs- always a trade off….bulk shipments can reduce transportation costs but leads to higher inventory levels in system. Higher transportation costs due to mode shift (air vs. ground or air vs. ocean) can reduce inventory in system by shortening the order cycle.

Commodity value- higher dollar value means increased transportation, inventory, and packaging costs.

Density of product- High density (lbs/ cubic ft or kgs/ cubic meter) means lower transportation and inventory costs since the product takes up less space in containers or warehouse.

Loss and Damage- greater susceptibility to loss or damage means higher transportation rates and higher warehousing costs due to special handling.

Location Decision- Distance from sources or markets = relative advantage or disadvantage vs. competitors. This is a C level responsibility.

Need help? contact mitch@52.91.45.227

https://www.linkedin.com/posts/activity-7035240457882206208-oTJO?utm_source=share&utm_medium=member_desktop

Mike, can you give a brief explanation of what double brokering is? Thanks

Hi Mitch, it can be a couple things but 90 percent of the time it’s a carrier who is on a load board that is asking to haul your load as a broker who then in turn hands the load off to another carrier. When this happens, the original carrier who is posing as an asset carrier then usually doesn’t pay the actual carrier who hauled the load and it creates a lot of issues with freight liability as well. Because basically a criminal is involved and is scamming you and the carrier. It’s really bad and it’s out of control rampant now. Scammers have figured out how to work the system. Not enough checks and balances.

Our international travels resumed in 2022 after a two year hiatus. The challenges involved in air travel are well known and it is wise to be prepared for flight delays so they don’t spoil your entire trip.

We just renewed our Global Entry enrollment for another 5 years. The cost ($100 for 5 years) is well worth it. Global Entry, which includes TSA pre-check, enables the traveler to avoid long customs lines upon returning to the US after a tiring trip. Here is the link if you are interested:

https://www.cbp.gov/travel/trusted-traveler-programs/global-entry

Next up Portugal, Spain, and as always, Canada.

David Noah

President at InterMart, Inc.

Companies that allow employees or contractors to take commercial items across a border—known as a hand carry—are taking on a big compliance risk. Here’s what you need to know to stay compliant.

Mitch Kostoulakos, LCB

Excellent post David. I think most hand carries are treated casually without much thought to the risk.

In previous posts we have noted 3 common causes of customs delays: vague or incomplete descriptions, questionable valuations, and lack of IOR contact info on commercial invoices. These are the easy fixes. The real complexity in international trade is due to the many different regulations applying to destination countries.

Customs delays in other countries are problematic for exporters, requiring a lot of time and effort to resolve. Best practices in exporting include due diligence and research when shipping to a country for the first time. The Country Commercial Guides published by the International Trade Administration are an excellent no cost starting point. Here is the link:

https://www.trade.gov/ccg-landing-page

Contact mitch@52.91.45.227 for help.