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University Paris IX DauphineAnglaisIntroduction.Shipping Vs. Transport.Logistic.Incoterms.Tax & duties customs.Insurance.International ShippingSHIPPINGIndex:

University Paris IX DauphineAnglaisWhat is shipping?SHIPPINGIntroduction:Shipping is the physical process of transporting commodities and merchandise goods from one place to another place. The Anglophone take this words to refer to every way to transport thing to one point for another. (link), In other languages usually have different specific word for each way to transport.

University Paris IX DauphineAnglaisWhat is the difference between each one?SHIPPINGShipping Vs. Transport:When the Anglophone feel the need to transport their goods, the do not have good roads, or good train rail way. For that reason they usually rely on the boats to transport the goods from one place to another. They developed a good canals system on the country to spend less time doing it.

One can known that the word transport have a military notation and they want to borrow it from the vocabulary for it reason.

Nowadays, you can use this word to mean for land or ground shipping, by trucks, train and planes.

University Paris IX DauphineAnglaisWhat does logistic mean?SHIPPINGLogistic:Logistic is the system to have the good on the place that the consumer usually goes to buy it. It is a complex process with a lot of deadlines to respect. It process need to planning , implementing and controlling the effective and efficient flow of goods and services.

University Paris IX DauphineAnglaisHistorical approach.SHIPPINGINCOTERMSBefore 1921, there is no a formal international shipping law. For example, in 17th and 18th century, the shipping between Europe and Asian was existed. But, due to the long distance and lack of communication, we cannot set up an international shipping rule until 1921. The International Chamber of Commerce develop the Incoterms in1921.

Nowadays, the International Chamber of Commerce revise the international practices, types of goods, and transports to adapt the rules to the actual needs. The Incoterms will be update every year.

University Paris IX DauphineAnglaisFeatures:SHIPPINGINCOTERMSThe Incoterms collected in one document all the issues of delivering goods. This issues are:Time and places of the delivery from the seller to the buyer.Time and place of the transmission of ownership of the goods. Thats mean the transaction of the risk.The distribution of the shipping cost. The obligation to fear the duties and taxes.

The ICC are classified the Incoterms on four categorizes. This classification is according to the amount of seller obligation.

University Paris IX DauphineAnglaisFeatures (cont.):SHIPPINGINCOTERMSExport-Customs Declaration.Carriage to port of export.Unloading of truck in port of export.Loading charges in port of exportCarriage (sea Freight/Air Freight) to port of import.Unloading charges in port of import.Loading on truck in port of import.Carriage to place of destination.Insurance.Import customs clearance.Import Taxes.

University Paris IX DauphineAnglaisSHIPPINGINCOTERMS

University Paris IX DauphineAnglaisWhat is a duty?SHIPPINGTax & duties customs:A duty or tariff is a tax paid to government according to the value of freight and insurance of the goods. Different countries have different duty or tariff, depend on different types of product. The average duty worldwide is about 5 %. The tariff is collected at the time of customs clearance in the foreign port.

Some countries have deals to have a free trade agreements between each. Thats means in one country some good manufacturing in another have preference and are more cheaper than the product made in the countries that are out of the agreement.Tariffs and Import FeesWhat is a tariff?A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products. Different tariffs are applied on different products by different countries. The average duty worldwide is about 5 percent. National sales and local taxes, and in some instances customs fees, will often be charged in addition to the tariff. The tariff, along with the other assessments, is collected at the time of customs clearance in the foreign port. Tariffs and taxes increase the cost of your product to the foreign buyer and may affect your competitiveness in the market. So knowing what the final cost to your buyer is can help you price your product for that market. In addition, your buyer may ask you to quote an estimate of these costs before making the purchase. This estimate can be made via email, phone or in the pro forma invoice.Some countries have very high duties and taxes; some have relatively low duties and taxes. If your product is primarily made in the U.S. of U.S. originating components it may qualify for duty-free entry into countries with which the U.S. has a free trade agreement (FTA). We currently have FTAs with more than 20 countries. Targeting FTA countries is a good market entry strategy because buyers pay less tariff for goods made in the U.S. compared with similar goods from countries without FTAs. Here are the steps for finding and calculating estimated tariffs and taxes. Keep in mind that what you get from this process is an estimate. Only the customs officers in the country where the goods clear can make the final determination.10

University Paris IX DauphineAnglaisWhy should insurance the goods?SHIPPINGInsurance:Buying insurance reduce the uncertainty about the risk of the shipping.Help the development of international trade. (protect the buyers)Nowadays, buying insurance can ensure a refund if the buyers are not happy with the product quality or the losing of the goods.

Market Value $46.02 billions.

Market Value $15.86 billions.Tariffs and Import FeesWhat is a tariff?A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products. Different tariffs are applied on different products by different countries. The average duty worldwide is about 5 percent. National sales and local taxes, and in some instances customs fees, will often be charged in addition to the tariff. The tariff, along with the other assessments, is collected at the time of customs clearance in the foreign port. Tariffs and taxes increase the cost of your product to the foreign buyer and may affect your competitiveness in the market. So knowing what the final cost to your buyer is can help you price your product for that market. In addition, your buyer may ask you to quote an estimate of these costs before making the purchase. This estimate can be made via email, phone or in the pro forma invoice.Some countries have very high duties and taxes; some have relatively low duties and taxes. If your product is primarily made in the U.S. of U.S. originating components it may qualify for duty-free entry into countries with which the U.S. has a free trade agreement (FTA). We currently have FTAs with more than 20 countries. Targeting FTA countries is a good market entry strategy because buyers pay less tariff for goods made in the U.S. compared with similar goods from countries without FTAs. Here are the steps for finding and calculating estimated tariffs and taxes. Keep in mind that what you get from this process is an estimate. Only the customs officers in the country where the goods clear can make the final determination.11

University Paris IX DauphineAnglaisHow choose the best way to ship?SHIPPINGInternational shippingKind of goodSpeedCapacitySecurityCostRoadEverythingHighLowMediumLowTrainHigh volumes and containersMediumHighHighMediumSeahigh volumes and containersLowVery HighHighLowAeroplaneHigh Value or perishable goodsVery HighLowVery HighHighMixedEverythingHighMediumMediumMediumTariffs and Import FeesWhat is a tariff?A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products. Different tariffs are applied on different products by different countries. The average duty worldwide is about 5 percent. National sales and local taxes, and in some instances customs fees, will often be charged in addition to the tariff. The tariff, along with the other assessments, is collected at the time of customs clearance in the foreign port. Tariffs and taxes increase the cost of your product to the foreign buyer and may affect your competitiveness in the market. So knowing what the final cost to your buyer is can help you price your product for that market. In addition, your buyer may ask you to quote an estimate of these costs before making the purchase. This estimate can be made via email, phone or in the pro forma invoice.Some countries have very high duties and taxes; some have relatively low duties and taxes. If your product is primarily made in the U.S. of U.S. originating components it may qualify for duty-free entry into countries with which the U.S. has a free trade agreement (FTA). We currently have FTAs with more than 20 countries. Targeting FTA countries is a good market entry strategy because buyers pay less tariff for goods made in the U.S. compared with similar goods from countries without FTAs. Here are the steps for finding and calculating estimated tariffs and taxes. Keep in mind that what you get from this process is an estimate. Only the customs officers in the country where the goods clear can make the final determination.12