TLMT3-2

TLMT 201 – Retail Transportation Week 3

Transcript of “Import / Export” Video Welcome to Imports and Exports. This week we will discuss the various issues, problems, and regulations associated with import and export trade in the retail industry but more importantly the proper documentation to use in order to reduce problems getting your product in or out of the country. Therefore, we will discuss in detail the most common documents used in international trade. First, let’s discuss the export process and the documents required by the United States and foreign governments. The United States government requires a document called “Shippers Export Declaration” or SED. The SED is a method for the government to collect and assess data in terms of what the product is, how much is being exported and the destination of the shipment and its use as a control mechanism. This information may also be filed through a system called AES or Automated Export System. Providing this data is required by the U.S. government for all exports. However, there are some exceptions such as:

• The value is less than $2500 then an export license is not required • Shipping to the United States Armed Services • Shipping to the united states governmental agencies and employees • Lastly, shipping to Canada does not require an export license.

Now, foreign governments require various types of documentation and these will be addressed only briefly in this presentation. Examples of each document can be found in the textbook.

• Commercial Invoice: primary document used in international trade • Canada Customs Invoice: document required by the Canadian government that takes the

place of the commercial invoice • NAFTA Certificate of Origin: document used between the United States, Canada, and

Mexico. • Certificate of Origins: document required by other countries which identifies the country

that manufacturer the product that is being shipped. • Packing List: this document states the product, weight, measurements, and packaging • Proforma Invoice: • Shipper’s Letter of Instruction: document that is used to provide the shipment

information to the freight forwarder. •

Next, we will briefly review the import process. The import process involves several U.S. government agencies such as the Customs & Border Protection, Drug Enforcement Agency, Food & Drug Administration, and the Nuclear Regulatory Commission. The U.S. government requires that imported goods are properly marked with the country of origin so the ultimate purchaser knows where the product was

manufactured or produced. If the article is not properly marked a “marking duty” may be applied. In order to take possession of imported goods there is a five step process to clear customs:

1. Entry 2. Inspection 3. Appraisal 4. Classification 5. And liquidation

Now, documentation is similar to the export process. Again, the commercial invoice is the primary document. Likewise, a BOL, air waybill, and Carriers Certificate are needed as proof of the consignee’s right to make entry. A customs broker will also complete an Entry manifest. What is a customs broker? A customs broker is a government licensed intermediary who acts as the importer’s agent within U.S. customs. This individual acts on behalf of the importer. Therefore, a customs broker:

• calculates the duty rates • makes entry with customs • obtains custom release and • forwards the duty payment to customs

In conclusion, we have briefly reviewed the import and export process in international trade to include documentation of both the United States government and foreign governments. Additional information and examples can be found in the textbook.