THE BASICS OF EXPORTING Brian Barber, NCBFAA Jan Fields, Corporate Manager John S James Co How to Ship Your Products July 6, 2011

trade/data/video001.html What is a Freight Forwarder ?

How to Choose a Freight Forwarder Licensed by the Federal Maritime Commission – Air Cargo Association Member of an Association, such as the National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA) Proven knowledge Certified Export Specialist (CES)

Freight Forwarder Considerations Ask Questions Does the forwarder have an export compliance program? Who will be handling your account and what is their level of experience? Who will be the back up/alternative contact? Choose a forwarder who asks questions Establish compliance with all considerations met prior to the shipment moving

Freight Forwarder Considerations Provide the freight forwarder with your expectations Ensure your freight forwarder is aware of your level of experience Establish compliance with export administration regulations together with your forwarder Don’t necessarily choose the lowest rate Make sure you compare apples to apples Define the services provided for the quoted fees

You have a interested buyer – what now? Quote too high – you loose the business Quote too low – profit margin expense No surprises Unexpected expenses

Address prior to quoting Export Control Classification Number (ECCN) Determine if an Export License is required by any government agency BIS – State Department - OFACS Check all parties to the transaction to ensure they are not a restricted party on any list Determine ultimate destination and end use of product Review for Anti-boycott regulations

Product Considerations Hazardous regulations Food, plants animals Commodities regulated by government agencies (DEA,FDA, USDA, etc.) Temperature sensitive – special equipment Marking, labeling, packaging/securing for exports

Payment terms with customer Currency Payment in advance Deposit Open account Documentary draft Letter of Credit

Safest for seller, other than cash in advance Additional cost Guarantee by bank – IF all stipulations can be met Defines dates Can restrict ports, routing, carriers

INCOTERMS Internationally accepted standards Pre Carriage – Main Carriage – On Carriage Must name a place E Terms (seller's inland - point) F Terms (exporting country - place/port) C Terms (importing country - place/port) D Terms (buyer's inland – port)

Information Required for Quotes  Port/Point of Origin  Port/Point of Destination  Physical dimension of cargo  Gross and net weight  Packaging in compliance (SWPM)  Estimated date of shipment - deadlines  Special handling requirements (oversize)  Preference of routing  Value of cargo

SAMPLE QUOTE Rates are valid for 30 days unless otherwise noted. Rates are subject to change without notice. We diligently attempt to anticipate all fees; however, any out-of-pocket expenses are for your account. Rates are based on availability of equipment and cargo and do not guarantee service. Rates are subject to change if the commodity, location, weight and/or dimensions offered at the time of quote do not agree with the actual shipment. The above quotation is an offer and does not imply a contractual agreement. Rates including inland freight are based on legal weight and in-gauge dimensions and are subject to availability of equipment and scheduling. Demurrage and per-diem when applicable will be billed according to the steamship line's tariff. We reserve the right to bill FUEL SURCHARGE based on tariff pricing or the national weekly average issued by the Dept of Energy, Energy Information Administration. OriginDesti- nation ETATypeBase rate SurchargesTotal rate Subject to surcharges Cincinnati OH Postal Via Norfolk VA Dubai UAE (Port) 40 days 40ft Cont. Ocean $3, Ocean: BAF Doc: TSC: $3,614.00Destination Terminal Handling

Quote to customer Rate will only be good for a specified length of time Quote to customer must include all charges Quoted price is used for financing / Letter of Credit Proforma used for official purposes such as import license Destination entry requirements :Proforma___________ ___________

Exporting your cargo – Ready to ship Ocean or Air Booking cargo Cut off date / delivery of cargo Cut off date / time documentation Oversized cargo Container vs. Break Bulk Blocking and bracing Solid Wood Packing Material (SWPM)

Electronic Export Information Required filing through the Automated Export System (AES) for Schedule B numbers valued over Purpose Export Control Statistics Penalty for not filing timely $ per day maximum 10,000 per violation

OCEAN BILL OF LADING Cargo Receipt Delivery instructions Title documents Can be negotiable Terms and Conditions of carriage

Documentation Requirements Certifications Commercial Invoice Packing list Certificate of Origin Free Trade Agreements Product Certificates Phytosanitary Certificate of analysis Consular documentation and legalization requirements

Ensure compliance with destination country regulations Through freight forwarder – general information Through customer – specific information Pre-shipment inspection arrangements Quarantine Quotas

Ensure compliance with customer’s requirements Letter of Credit stipulations Contract agreement Routing requirements – may designate a specific port, flagged vessel, etc.

Marine Cargo Insurance Read the terms listed on the face of the bill of lading Carriers have limit of liability and are liable only if they are found to be negligent Ocean limit of liability is generally per package Air limit of liability is generally 9.07 per pound General average All parties (including exporters) involved in the ocean carriage agree to proportionally share ANY losses necessary to ensure the safety of the voyage Voluntary jettison – repairs to vessel – ransom funds If declared, cargo will not be released without bond or cash deposit

Recordkeeping Exporter/United States Principal Party in Interest (USPPI) also responsible to maintain documents USPPI should require copy of AES filing if transmitted by freight forwarder Using a third party does not relieve the USPPI of liabilities Five years from date of export or last known transshipment or diversion date

Web Export Resources Export counseling, trade information center ``````Lists to check ``````On line training videos `````Official export and import statistics Export-Import Bank of the U.S. Small Business Administration Country requirements for wood packing materials Certified Export Specialist Program (Educational Institute)

?????? QUESTIONS ?????? Brian Barber, NCBFAA Education Director (202) Jan Fields, LCB, CCS, CCS Savannah GA (912)