THEBASICSOF EXPORTING

HowtoShip p

HowtoChooseaFreightForwarder H t Ch F i ht F d

LicensedbytheFederalMaritime
Commission Memberofanassociation,suchasthe NationalCustomsBrokersandForwarders AssociationofAmerica,Inc(NCBFAA) Provenknowledge CertifiedExportSpecialist(CES)

FreightForwarderConsiderations F i ht F d C id ti
AskQuestions

Doestheforwarderhaveanexportcompliance program? Whowillbehandlingyouraccountandwhatis theirlevelofexperience? p Whowillbethebackup/alternativecontact? Establishcompliance Ensureallconsiderationsaremetprior tothe p shipmentmoving

q Chooseaforwarderwhoasksquestionsto

FreightForwarderConsiderations Freight Forwarder Considerations

Providethefreightforwarderwithyourexpectations

Ensureyourfreightforwarderisawareofyourlevelof y g y experience Establishcompliancewithexportadministrationregulations togetherwithyourforwarder to ethe ith you fo a de Makesureyoucompareapplestoapples Make u e you o a e a le to a le Definetheservicesprovidedforthequotedfees

Dontnecessarilychoosethelowestrate

Youhaveainterestedbuyer You have a interested buyer whatnow?

Quotetoohigh
youloosethebusiness you loo e the bu i e Quotetoolow profitmarginexpense profit margin expense Nosurprises Unexpectedexpenses Unexpected expenses

Addresspriortoquoting Address prior to quoting

ExportControlClassificationNumber(ECCN) Export Control Classification Number (ECCN) DetermineifanExportLicenseisrequiredbyanygovernment agency BIS StateDepartment OFACS Checkallpartiestothetransactiontoensuretheyarenota restrictedpartyonanylist i d li www.bis.doc.gov/complianceandenforcement/liststocheck.htm Determineultimatedestinationandenduseofproduct Determine ultimate destination and end use of product ReviewforAntiboycottregulations

ProductConsiderations P d tC id ti

Hazardousregulations Food,plantsanimals Food plants animals Commoditiesregulatedbygovernmentagencies

(DEA FDA USDA t ) (DEA,FDA,USDA,etc.)

Temperaturesensitive specialequipment Marking,labeling,packaging/securingforexports / f

Paymenttermswithcustomer P tt ith t

Currency Paymentinadvance y Deposit Open account Openaccount Documentarydraft Letter of Credit LetterofCredit

LetterofCredit L tt f C dit
Safestforseller,otherthancashinadvance Additionalcost Guaranteebybank IF allstipulationscanbe met Definesdates Canrestrictports,routing,carriers

INCOTERMS
Internationallyacceptedstandards Precarriage MainCarriage OnCarriage Mustnameaplace ETerms(sellersinland point) FTerms(exportingcountry place/port) CTerms(importingcountry place/port) DTerms(buyersinland port) http://www.iccwbo.org/incoterms/

InformationRequiredforQuotes I f ti R i df Q t
Port/PointofOrigin Port/PointofDestination Port/Point of Destination Physicaldimensionof cargo g Grossandnetweight Packagingincompliance Packaging in compliance (SWPM)

Estimateddateof shipment deadlines Specialhandling requirements (oversize) ( i ) Preferenceofrouting Valueofcargo

SAMPLE QUOTE
Origin
Cincinnati OH Postal 4 244 P l 45244 Via Norfolk VA

Desti Destination
Dubai UAE (Port) (P )

ETA
40 days

Type
40ft Cont.

Base rate
Ocean $3,024.00

Surcharges
Ocean: BAF 425.00 Doc: 50.00 TSC: 115.00

Total rate
$3,614.00

Subject to surcharges
Destination Terminal Handling

Rates are valid for 30 days unless otherwise noted. Rates R t are subject t change without notice. bj t to h ith t ti 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. abo e q otation impl contract al 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 Energy Administration.

Quotetocustomer Q t t t

:Proforma ___________ ___________ ___________ ___________ ___________

Ratewillonlybegoodforaspecifiedlengthoftime R ill l b df ifi d l h f i Quotetocustomermustincludeallcharges g Quotedpriceisusedforfinancing/LetterofCredit Proformausedforofficialpurposessuchasimport license Destinationentryrequirements

Exportingyourcargo R d t hi E ti Readytoship
OceanorAir Bookingcargo Cutoffdate/deliveryofcargo ff d /d l f Cutoffdate/timedocumentation Oversizedcargo O i d Containervs.BreakBulk Blockingandbracing Blocking and bracing SolidWoodPackingMaterial(SWPM)

ElectronicExportInformation El t i E tI f ti
RequiredfilingthroughtheAutomatedExport System(AES)forScheduleBnumbersvaluedover 2500.00 Purpose ExportControl p Statistics Penaltyfornotfilingtimely $1100.00perdaymaximum10,000perviolation

OCEANBILLOFLADING OCEAN BILL OF LADING

CargoReceipt Cargo Receipt Deliveryinstructions Titledocuments Titl d t Canbenegotiable TermsandConditionsofcarriage T d C diti f i

DocumentationRequirements D t ti R i t

Certifications CommercialInvoice Packinglist Packing list CertificateofOrigin

Free Trade Agreements FreeTradeAgreements

ProductCertificates Phytosanitary y y Certificateofanalysis Consulardocumentationandlegalization requirements

Ensurecompliancewithdestination Ensure compliance with destination countryregulations

Throughfreightforwarder general
information

Throughcustomer specificinformation Preshipment inspection arrangements Preshipmentinspectionarrangements Quarantine Q t Quotas

Ensurecompliancewithcustomer s Ensure compliance with customers requirements

LetterofCreditstipulations Contract agreement Contractagreement Routingrequirements may

designateaspecificport,flagged designate a specific port flagged vessel,etc.

MarineCargoInsurance M i C I

Readthetermslistedonthefaceofthebilloflading Carriershavelimitofliabilityandareliableonly ifthey arefoundtobenegligent are found to be negligent

Oceanlimitofliabilityisgenerally500.00perpackage Airlimitofliabilityisgenerally9.07perpound

Generalaverage

Allparties(includingexporters)involvedintheoceancarriage
agreetoproportionallyshareANYlossesnecessarytoensurethe agree to proportionally share ANY losses necessary to ensure the safetyofthevoyage

Voluntaryjettison repairstovessel ransomfunds Ifdeclared,cargowillnotbereleasedwithoutbondorcashdeposit If declared, cargo will not be released without bond or cash deposit

Recordkeeping R dk i Exporter/UnitedStatesPrincipalPartyin
Interest(USPPI)alsoresponsibletomaintain documents

USPPIshouldrequirecopyofAESfilingif
transmittedbyfreightforwarder transmitted by freight forwarder

UsingathirdpartydoesnotrelievetheUSPPI
ofliabilities of liabilities

Fiveyearsfromdateofexportorlastknown
transshipmentordiversiondate

WebExportResources p
Exportcounseling,tradeinformationcenter p g, www.export.gov ``````Liststocheck ``````Onlinetrainingvideos www.bis.doc.gov `````Officialexportandimportstatistics www.census.gov/trade ExportImportBankoftheU.S. Export Import Bank of the U S www.exim.gov SmallBusinessAdministration .sba.go www.sba.gov Countryrequirementsforwoodpackingmaterials www.aphis.usda.gov/ppq/swp/ Listingoflicensedfreightforwarders CertifiedExportSpecialistProgram(EducationalInstitute) www.ncbfaa.org

QUESTIONS? JanFields,LCB,CCS,CES Jan Fields, LCB, CCS, CES JohnSJamesCo SavannahGA (912)9632964 jan.fields@johnsjames.com