THE 10 BIGGEST MISTAKES IN

MOVING BREAKBULK CARGO

THE TOP 10 MISTAKES AND THE
IMPACT OF THOSE MISTAKES
ON THE BOTTOM LINE.
Article by Shah SRS
Personal analysis management
shahrukhsrs1@gmail.com

What Is The Key To A Successful Shipment?

Understand the big picture

Know your product & the end-use

Vet your customers & build relationships

Realize that all shipments are federally regulated & act accordingly

Align with the experts: Carriers, Freight Forwarders, Customs Brokers, Truckers,
Packers, Bankers, Educators.

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

1. Ignorance Is Bliss???
Knowledge is indeed power & it saves $$$$
Realize that you are part of the Supply Chain & familiarize yourself with the players in the
Supply Chain
The Supply Chain is a Motley Crew: Customs Brokers, Freight Forwarders, Ocean Carriers,
Airlines, Truckers, Packers, Warehouses, Bankers, Insurance Brokers, Importers, Exporters,
Customs & Border Protection

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

2. Incoterms. Its not alphabet soup

Incoterms are a series of three-letter trade terms related to common sales

practice which are published by the International Chamber of Commerce.

They are intended to clearly communicate the tasks, costs, and risks associated
with the international transportation & delivery of goods.

Example: DDP Port Arthur vs. DAP Port Arthur

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

3. Insurance No Thanks
What is the Carriers liability?
What is General Average?
FPA coverage vs. All Risk coverage
What type of insurance does CIF incoterm require?
Value of Goods vs. Risk of Loss

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

4. Regulation Is Not Only For Imports

The Commerce Control List

The Denied Persons List

The Unverified List

The Entity List

The Specially Designated Nationals List

Am I exporting a dual use item?

What is the end use of my goods?

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

5. Export to a Sanctioned Country?

The role of OFAC (The State Departments Office of Foreign Assets Control)

Are all sanctions equal?

The role of the Automated Export System in exposing export violations

Example: Exporting to Cuba vs. Exporting to Iran

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

6. Diversion Shipments

What is a Diversion Shipment?

Bureau of Industry & Security

Who is my Customer?

Due Diligence is required by the exporter

Example: Diversions to Iran

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

7. Is it a Fee or a Bribe?

The Foreign Corrupt Practices Act

Department of Justice

Risks of doing LEGAL business in developing nations

Example: Chiquita Banana in Colombia

Example: Panalpina in Nigeria

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

8. Knowing the Role of Customs and Border Protection (CBP)

National Security vs Trade Facilitation

Importer Security Filing

Customs Fees can be unavoidable

CBP is the enforcement arm of many government agencies: USDA, FDA, CPSC

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

9. Its a Machine. Classify It!

Harmonized Tariff System

Rates of Duty

Binding Ruling

Voluntary Disclosure

Penalties for Misclassification

Responsibilities of the Importer

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

10. No Nos with CBP

Tariff Shopping

Port Shopping

IPR Infringement

Diversions for Import Shipments

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM

What Is The Key To A Successful Shipment?

Final assessment is .1 to 5
1.

Understand the big picture

2.

Know your product & the end-use

3.

Vet your customers & build relationships

4.

Realize that all shipments are federally regulated & act accordingly

5.

Align with the experts: Carriers, Freight Forwarders, Customs Brokers,

Truckers, Packers, Bankers, Educators,..

ARTICLE BY SHAH SRS

PERSONAL ANALYSIS MANAGEMENT
SHAHRUKHSRS1@GMAIL.COM