FOB really?
A good commercial invoice includes clearly specified Incoterms. Incoterms are rules (not laws) used to facilitate global trade. They were created and are administered by the International Chamber of Commerce and are updated every 10 years. Incoterms 2010 published by ICC Services Publications, Paris. Did you know that, in the 2010 version of Incoterms, FOB applies only to ocean and inland waterway transport? Take the time to review your international documents for accuracy. For help contact Mitch@52.91.45.227
Senior Editor, Trucking and Domestic Transportation, The Journal of Commerce5d • EditedThe hashtag#bankruptcy of 101-year-old New England Motor Freight was a shock and a wake-up call for those who expected less volatility this year.
Mitch’s LinkedIn comment today:
Thoughtful analysis and right on target…traditional LTL carriers achieved efficiencies mostly thru managing labor costs…still important but real gains in efficiency will come via technology…
If you are planning to take the customs brokers exam in April you should be well into your preparations by now. The exam is not easy but a step by step study plan will give you confidence. I devised a simple method that worked well for me and will share it. E mail mitch@52.91.45.227 if interested.
When the ECCN (Export Control Classification Number) comes up on export documents many exporters automatically enter EAR 99. For license questions NLR (No License Required) is often used as a default exception. These may be the correct entries but it is a good business practice to check and confirm. While freight forwarders can provide expertise in these areas the exporter bears primary responsibility for compliance. If you are automatically using NLR and EAR 99 you may be at risk.
January is a good month to review harmonized codes. The United States International Trade Commission updates the Harmonized Tariff Schedule of the United States at least twice per year.
Using obsolete codes can result in customs delays and inaccurate duty assessments so it is a good business practice to check the tariff. While you are at it are you sure EAR99 and NLR apply to your exports?
Mitch Kostoulakos, LCBLicensed Customs Broker, International Logistics Consultant
Hi Dean, interesting article. I agree that separate opcos are an obstacle vs UPS. However, I don’t think a merger of opcos is feasible considering the contractor model in place for ground and company employees for express.
World Bank Logistics Performance Index ranks US 14th for 2018. Previous rankings were 10th in 2016 and 9th in 2014. LPI 2018 ranks countries on six dimensions of trade — including customs performance, infrastructure quality, and timeliness of shipments.
The recently enacted China 301 tariffs, along with increased Anti-Dumping and Countervailing Duty cases, are impacting continuous bond sufficiency. Several clients have reached saturation requiring big increases in their bond amounts. A good risk management practice for importers suggests addressing continuous bond amount before it becomes an issue.
The United States International Trade Commission has updated the Harmonized Tariff Schedule of the United States effective 07/01/2018.
It is a good business practice to review your Harmonized codes at least once per year to make sure you are using the most up to date classifications. For help with your codes contact mitch@52.91.45.227
Hi Dean, interesting article. I agree that separate opcos are an obstacle vs UPS. However, I don’t think a merger of opcos is feasible considering the contractor model in place for ground and company employees for express.