Matakuliah : J0474 International Marketing Tahun : 2009 Exporting and Logistics Chapter 19 Learning Outcome • Export Restrictions • Import Restrictions • Terms of Sale. • Getting Paid : Foreign Commercial Payments. • Export Documents • Customs-Privileged Facilities • Logistics. Bina Nusantara University 3 Export Restrictions Exporting is an integral part of all international business. Good manufactured in one country and destined for another must be moved across borders to enter the distribution systems of the target market. The Exporting Process Leaving the Exporting Country • Licenses General Validated • Documentation 1. Export declaration 2. Commercial invoice 3. Bill of lading 4. Consular invoice 5. Special certificates 6. Other documents Bina Nusantara University Entering the importing country Tariff, taxes Physical Distribution International shipping and logistic Packing Insurance Non tariff barriers: 1. Standards 2. Inspection 3. Documentation 4. Quotas 5. Fees 6. Licenses 7. Special certificates 8. Exchange permits 9. Other barriers. 4 Export Restrictions Examples of Violations and Penalties of BIS Export Controls. End Use/End user Violation Facilitating Export to Denied Persons Duel-Use Products Violation of Anti boycott Provisions. Illegal Transshipping. Bina Nusantara University 5 Export Restrictions There are four electronic services facilitate the paperwork and reduce the time necessary to acquire export licenses. The Bureau of Export administration ELAIN Bina Nusantara University STELA ERIC SNAP 6 Import Restrictions • Tariffs • Exchange Permits • Quotas • Import Licenses Bina Nusantara University • Standards • Boycotts • Voluntary Agreements • Other Restrictions 7 Terms of Sale CIF C&F FAS FOB EX Bina Nusantara University 8 Getting Paid : Foreign Commercial Payments Open Accounts Letter of Credit LC Cash in Advance Bills of Exchange BE Bina Nusantara University Forfaiting 9 Getting Paid : Foreign Commercial Payments Chapter Exporting and Logistic, Page 447 International Marketing, Cateora and Graham Sales Agreement Foreign Buyer Foreign bank Customs Broker Port of entry Payment. Bina Nusantara University U.S .bank LC . Documents. Goods Seller Foreign Buyer 10 Export Documents Export Documents Commercial Invoice Bina Nusantara University Bill of Lading Consular Invoice or Certificate of Origin Insurance Policy Or Certificate Licenses Other Documents 11 Customs-Privileged Facilities Foreign Trade Zones FTZ Bina Nusantara University Offshore Assembly Maquiladoras 12 LOGISTICS Logistics Management Independence of Physical Distribution Activities. Benefits of Physical Distribution System. Export Shipping and Warehousing. Foreign Freight Forwarder International Logistic and Supply Chain Management Bina Nusantara University 13 Terrorism and Logistics Cargo and Container Security Initiative CSI Electronic Tracking Customs-Trade Partnership against Terrorism Bina Nusantara University 14 Summary • An awareness of the mechanics of export trade is indispensable to the foreign marketer who engages in exporting goods from one country to another. For firms unable to maintain their own export staffs, foreign freight forwarders can handle many details for a nominal fee. • Transportation mode affects total product cost because of the varying requirements of packing, inventory levels, time requirements, unit cost, damage and pilfering losses, and customer service. Bina Nusantara University 15