International Logistics
Presented by:
Delhy Arias
Marbell Lastra
Maria J Zavala
1
Definition of International Logistics
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 It includes planning and
The negotiating,
actions related to the
planning, and
utilization logistic
implementation of
policies, systems, and/or
supporting logistic
arrangements between procedures to meet
requirements of one or
nations, their forces,
more foreign
and agencies.
governments,
international
organizations, or forces.
Government Influences

Political Restrictions of
Trade
◦ Tariffs
◦ Nontariff barriers
 Import quota
◦ Embargoes
 As of October, 2007, the
United States has sanctions
against: China, Ivory Coast,
Cuba, Democratic Republic
of the Congo , Iran, Myanmar,
Sudan, Syria, Venezuela, and
Zimbabwe
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International Transport
◦ Cargo preference rules
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Challenges

Economic Conditions
◦ Currency Changes
Laws, Regulations,
and Legal systems
 Cultural
Considerations
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◦ Language
◦ National Holidays
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Exporting Requirements

Shipping a product overseas
◦ Packing
◦ Labeling
◦ Documentation
◦ Insurance requirements
Note: Most exporters rely on an international freight forwarder to
perform these services because of the multitude of considerations
involved in physically exporting goods
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Reasons
Used Guidelines
◦ Move goods easily through
customs
◦ Protect Products
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Pack in strong containers, adequately
sealed and filled when possible.
Make sure the weight is evenly
distributed.
Goods should be palletized and when
possible containerized.
Packages and packing filler should be
made of moisture-resistant material.
To avoid pilferage, avoid writing
contents or brand names on
packages. Other safeguards include
using straps, seals, and shrink
wrapping.
Observe any product-specific
hazardous materials packing
requirements.
Packing
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Reasons
Markings on cartons to be shipped
Meet shipping regulations
 Ensure proper handling
 Conceal the identity of the
contents
 Help receivers identify
shipments
 Insure compliance with
environmental and safety
standards
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Shipper's mark
Country of origin
Weight marking
Number of packages and size
of cases
Handling marks
Cautionary markings, such as
"This Side Up" or "Use No
Hooks"
Port of entry
Labels for hazardous materials
Labeling
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Documentation
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Air waybills
Bill of lading
Commercial invoice
Consular invoice
Certificate of origin
NAFTA certificate of
origin
Inspection certification
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Dock receipt and a
warehouse receipt
Destination control
statement
Shipper's Export
Declaration(SED)
Export license
Export packing list
Insurance certificate
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Insurance
Reasons
 Damaging weather
conditions
 Rough handling by
carriers,
 Other common hazards
to cargo
Type of covers
 Marine cargo insurance
 Cargo insurance
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Schedule B and HS Numbers

The Harmonized System (HS)
◦ Assigns 6 digit number
◦ 4 additional numbers (by country)
◦ 10 Digits total

US use Schedule B system
◦ Based on the international HS system
http://www.census.gov/foreigntrade/aes/exporttraining/videos/uscs_videos/Classifying_
your_commodity/index.html
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Schedule B and HS Numbers
Reasons
 To determine applicable import tariff rates
and whether a product qualifies for a
preferential tariff under a Free Trade
Agreement;
 The Schedule B number is needed to
complete the Shipper’s Export Declaration,
Certificates of Origin and other shipping
documents; and
 The HS Number may be needed on shipping
documents, such as certificates of origin
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Incoterms 2000
(International Commercial Terms)

What are they?
◦ A series of international sales terms published in
2000 by the International Chamber of Commerce
(ICC)
◦ From the seller’s viewpoint: the different locations for
quoting a price to an overseas buyer
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How are they useful?
◦ Widely used in international commercial transactions
◦ Used to divide transaction costs & responsibilities
between buyer & seller
◦ Reflect state-of-the-art transportation practices
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Incoterm Groups
(13 terms)
 Group E – Departure
◦ EXW (Ex Works)
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Group F – Main carriage unpaid
◦ FCA, FAS, FOB
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Group C – Main carriage paid
◦ CFR, CIF, CPT, CIP
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Group D – Arrival
◦ DAF, DES, DEQ, DDU, DDP
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Group E

EXW – (Ex-Works) named place where
shipment is available to the buyer, not
loaded.
The seller will not contract for any
transportation.
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Group F

International Carriage NOT Paid by Seller
FCA – (Free Carrier) seller is responsible for
arranging transportation to a specific carrier at a
named place; suitable for all modes of transport
FAS – (Free Alongside Ship) seller must arrange
for delivery, and assume all risks, up to the ocean
carrier at a port. Delivery is ‘within reach of ship’s
tackle’
FOB – (Free On Board vessel) only for carriage
by water; the point of title transfer occurs when
the goods have passed over the ship’s rail
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Group C
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International Carriage Paid by the Seller
CFR – (Cost and Freight) seller must deliver over the ship’s
rail, assuming risks. Once loaded, risk transfers to buyer.
Cargo insurance from port of loading is not included. For
waterborne shipments only.
CIF – (Cost, Insurance and Freight) seller retains risk of loss
up to the foreign port of unloading. For waterborne
shipments only.
CPT – (Carriage Paid To) seller will pay all freight costs all the
way to the foreign port; buyer assumes all risk of loss beyond
the loading port. For all modes of transport.
CIP – (Carriage and Insurance Paid To) similar to CIF; used in
multimodal transactions. Place of receipt & delivery may be
different from port of loading or unloading
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Group D
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Arrival At Stated Destination
DES – (Delivered Ex-Ship) seller pays all costs & bears all risks of transport
up to foreign port of unloading, except cost or risk of unloading cargo from
ship
DEQ – (Delivered Ex-Quay) similar to DES; seller pays the costs of unloading
the cargo from the vessel and the cost of import clearance
DAF – (Delivered At Frontier) seller’s responsibility is to deliver goods to a
named frontier (border crossing point) & clear the transaction for export.
Buyer’s responsibility is to arrange for pickup of goods after cleared for
export, carry them across border, clear them for importation, and pay duties
DDP – (Delivered Duty Paid) Seller pays everything to the buyer’s
warehouse door and passes on all related costs in the merchandise price
DDU – (Delivered Duty Unpaid) similar to DDP except duty is not paid
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Tariffs and Imports fees
Tariff is a tax set by governments on the
value of products imported from one
country into another.
 Tariffs are assesses before importing the
product.
 Types of Tariffs:
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◦ Sales and state taxes,
◦ Customs fees
Tariffs and Imports fees (cont.)
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Steps to determine the Tariff Rate
◦ Step 1: Determine your HS or Schedule B
Number
◦ Step 2: Determine Tariff Rates
 Country Specific Tariff and Tax information
 U.S. Government Tariff Resources for Agricultural
Exports
 Online Tariff Database provided by Customs Info LLC .
 Review Export. Government’s disclaimer
 Tariff and Tax Information for U.S. Territories
 Sending Gifts
 Additional Tariff Resources
Common Export Documents
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There are commonly Export Documents
used in exporting, but specific
requirements vary by destination and
product.
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Airway Bill
Bill of Landing
Commercial Invoice
Export Packing List
Electronic Export Information Form
Certificate Of Origin
The Certificate of Origin (CO) is
required by some countries for all or only
certain products.
 The exporter should verify whether a
CO is required with the buyer and/or an
experienced shipper/freight forwarder or
the Trade Information center.
 Most common are Certificate of Origin
for claiming benefits under Free Trade
Agreements
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OTHER CERTIFICATES
Certificate of Analysis
 Certificate of Free Sale
 Dangerous Goods Certificate
 Fumigation Certificate
 Health Certificate
 Ingredients Certificate
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International Trade
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Defined as economic
transactions that are
made between
countries.
International trade
transactions are
facilitated by
international financial
payments, in which the
private banking system
and the Central Banks
of the trading nations
play important roles.
Trade Agreements
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The purpose of US Trade Agreements is to
create opportunities for Americans and help
to grow the U.S. economy.
Administering trade agreements involves:
◦ Monitoring the trading partners’ implementation.
◦ Negotiating and signing trade agreements that
advance the President's trade policy
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An important type of trade agreement is the
Trade and Investment Framework
Agreement (TIFAs)
International Logistics Agencies
Examples
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World Courier:
◦ Private Company handling Specialty & Custom
Shipment
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USPS:
◦ Government Agency handling mail and parcel
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FedEx:
◦ Public Company handling a variety of shipping
needs
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World Courier
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Largest most successful specialty courier in the world
Areas of Service:
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Clinical trial logistics
Clinical trial supply storage
Cold Chain Solutions
Courier services:
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Advertising & media
Aircraft on Ground
Automotive
Biopharm
Food
HighTech
Serve in 50 Countries, 140 offices
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USPS
(United States Postal Service)
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Independent agency of the U.S. Government
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Responsible for providing postal service in U.S.
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Second largest civilian employer in U.S. after Wal-Mart
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Has contractual agreement with AmTrak and various airlines for mail
and package delivery
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Offers international services to over 190 countries, including ship
letters and packages with the aid of FedEx
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International Parcel Shipments:
◦ Maximum weight: 70 pounds
◦ Maximum length + girth: 130 inches
◦ Costs almost triple for Parcel Post shipments that are "oversized"
(Length + girth is greater that 108 but less than 130 inches)
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USPS Mail Flow Through National
Infrastructure
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FedEx
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Headquartered in Memphis, Tennessee
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Offers international services to over 220 countries
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Strong ties to the White House and members of Congress allow
access to international trade and tax cut debates as well as the
rules of the business practices of the United States Postal Service
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In 2001, FedEx sealed a $9 billion deal with the USPS to transport
all of the post office's overnight and express deliveries
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International Next Flight Urgent shipments:
◦ Up to 2,200 lbs. per piece (or more with prior approval).
Unlimited total shipment weight
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Other International parcel shipments:
◦ Up to 150 lbs. each (unlimited total shipment weight), 108" in
length, 130" in length plus girth (L+2W+2H)
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FedEx International Service,
Simplified.
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http://www.youtube.com/watch?v=iIODEoE
x1HU
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Work Cited
http://www.unzco.com/basicguide/toc.html
 http://www.export.gov/logistics/index.asp
 http://www.i-b-t.net/incoterms.html
 http://www.worldcourier.com/Global/indexHome6centerFlash3grt.html
 http://www.usps.com/international/sendpackages.htm
 http://en.wikipedia.org/wiki/United_States_Postal_Service
 http://www.fedex.com/international/
 http://en.wikipedia.org/wiki/FedEx
 http://www.uship.com/freight/articles/parcel-weight-restrictions/
 http://www.thefreedictionary.com/international+logistics
 http://www.export.gov/logistics/eg_main_018130.asp
 http://www.export.gov/logistics/eg_main_018121.asp#P10_641
 http://www.britannica.com/EBchecked/topic/291349/international-trade
 http://www.ustr.gov/trade-agreements
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Questions
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