The Role of the Freight Forwarder Expand into International Markets: Export 101 Seminar For Food & Agriculture Companies The Role of the Freight Forwarder The Travel Agents for Freight Pat Fosberry – John S. James Co. Corporate Export & Transportation Manager Thursday, July 17, 2014

Regulatory & Compliance Bureau of Industry and Security (BIS) Export Administration Regulations Who, What, Where, Why and How Dept. of Commerce Census Foreign Trade Division Statistics on Export Data Automated Export System Customs and Border Protection (CBP) Protects against illegal drugs, intellectual property rights & fraud Enforces BIS & Census regulations (issues penalties) Animal & Plant Health Inspection Service Provides phytosanitary certification Assist in the elimination of unjustified phytosanitary requirements Office of Foreign Asset Control, State Department, Transportation Security Administration, Department of Transportation, etc. BIS Who? Does the exporter have export privileges? Does the importer have import privileges? Do all parties pass Denied Party Screening? What? Is the product allowed to be exported from the USA? Where? Are there any sanctions or embargoes to the destination country? Why? Does the buyer have use for this product? How? How will the product be used? Census Automated Export System – Collects data PRIOR to export – Electronic Export Information CBP – Police for BIS & Census – Can hold export cargo APHIS – It is the buyer that should tell you what is required at the destination for them to clear Customs OFAC- They hold companies and individuals money State Department – They are in charge of sanctions & boycotts – Cuba, Iran, North Korea, Syria, Sudan Department of Transportation - HazMat

Transportation Modes of Transportation Ocean Air Truck Rail Full Container Load (FCL) 20’, 40’, 40’ High Cube, 45’, Open Top, Flat Rack Less than Container Load (LCL) Breakbulk (Oversized, Roll-on/Roll-off) Bulk Air Airlines - ULD (Unit Load Device) Consolidation – Indirect Air Carriers Expedited Carriers – UPS/FedEx/DHL Truck FTL – Full Trailer Load LTL – Less than Trailer Load Rail Ocean – Less expensive, slower transit – non-perishable (within 60 days) LCL – Less than a Container Load – Share space in containers with other exporters FCL – Exclusive use of container Bulk – Large shipments that fill a hold on a vessel Air – Most expensive, fast transit – perishable Truck – Canada & Mexico Rail – Large shipments

Transportation Anatomy of a Quotation IncoTerms Export Packaging Delivery to Carrier and/or Border Port Charges/Warehouse Fees/Border Fees Export Clearance Main Carriage Import Clearance Delivery to Buyer IncoTerms Determines what the Seller and Buyer pays Determines which selects carriers/forwarders New exporters – encouraged to use F or C terms Critical that rates include all possible charges. If you don’t know every step of the cargo moving, there will be delays or extra charges. Packaging must be sufficient for mode of transportation. Packaging and labeling must conform to requirements of buyer. IncoTerms EXW – The buyer makes all arrangements – Dangerous F Terms – The seller is responsible for making arrangements until goods are accepted by the carrier. C Terms – The seller is responsible for making transportation arrangements. D Terms – The seller is responsible for destination clearance and/or delivery – Dangerous ProForma Invoice – Gives details of shipment in quotation format.

Documentation Export Clearance (Government) Classification ECCN – Export Commodity Classification Number Schedule B Number or Harmonized Code EEI in AES (Electronic Export Information via Automated Export System) Census, Bureau of Industry & Security, Customs & Border Patrol Export License Filing Transport Documentation (Carriers) Booking Request – Space Reservation Bill of Lading/Air Waybill/Straight Bill (Contract of Carriage) Shipment Documentation (Seller/Buyer) Commercial Invoice, Packing List, Insurance Certificate (Basic) Certificate of Origin, Quality Certificate, etc. (Country Requirements) Phytosanitary Certificate, Certificate of Analysis (Commodity Requirements) Draft, other specific documents (Letter of Credit Requirements) EEI must be filed prior to export: Ocean – 24 hours prior to scheduled vessel loading Air/Truck/Rail – ½ hours prior to export Bill of Lading/AWB/Straight Bill Contract Determines details and costs of shipment Commercial Invoice Must be accurate – Payment is made based on this document Packing List/Quality/Quantity Certificates Buyer must tell you what is required for entry into their country Certificate of Origin Buyer must advise if this document is required.

A Complete Service Company… What can the Freight Forwarder do and when should you contact them? Regulatory Issues As soon as you are looking into shipping to a country or get an interested buyer. FF can do Denied Party Screening. FF can verify that countries can be shipped to. FF can guide you to properly classifying your goods. Quotations As soon as you receive an inquiry. Your FF can review all of the options before work is done. Booking/Transportation As soon as you have an order, contact your FF to get transportation options. Some bookings need to be made as much as a month before the shipment is made. Documentation L/C’s should be reviewed by a FF immediately when you receive. Customer documentation requests should be made immediately with FF to insure you can comply. Data needed to transmit EEI in AES should be sent to FF at least 72 hours prior to vessel sailing. For air, all data should be sent at time of booking. Follow Us On: