Logistics Plus Customs Broker Solutions Offers Peace-of-Mind

Logistics Plus Customs Broker Solutions Offers Peace-of-Mind

customs brokerImporting and exporting goods may seem like a daunting task. There have been 6 tariff changes already this year, along with 12 revisions to the Harmonized Tariff Schedule of the United States (HTSA). With constant tariff changes and revisions, importers may feel lost or confused. Logistics Plus Customs Broker Solutions can assist by providing peace-of-mind. Our licensed customs brokers ensure that you receive unparalleled customer service with personal attention to detail. Listen to these two WP$E radio audio clips containing interview snippets with Gretchen Blough, a licensed customs broker and Customs Brokerage Manager for Logistics Plus.

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Logistics Plus helps its customers in the following ways:

  • We learn about your product and its function so that we know it’s classified properly.
  • We can advise you in filing bindings rulings, if necessary, with U.S. Customs and Border Protection (CBP) for an added assurance that your classification is correct.
  • We can look at your bills of materials to determine the correct country of origin.
  • We can investigate if you qualify for first sale pricing to lower your declarable value.
  • We work with several law firms that can file exclusion petitions on your behalf if you qualify for exclusion from the new tariffs.
  • We match your imports against the Miscellaneous Tariff Act of 2018 to determine if your goods qualify for reduced or duty-free status.

By using the information above, Logistics Plus will be able to assist you in making better informed sourcing decisions. While other brokers may be larger, they cannot match the personal attention to detail that Logistics Plus Customs Broker Solutions offers. Our consulting services are available to any Logistics Plus shipping customer. Becoming a customer of Logistics Plus means that you gain immediate access to the peace-of-mind that comes from working with our compliance specialists. If you are not a Logistics Plus customer, you can also purchase our customs broker solutions as a stand-alone consulting service. Either way, we’re here to help!

Our team of customs brokers and global trade compliance experts will guide you through every complex step of the customs process. Contact us today for more information or click here to schedule a customized Global Trade Compliance seminar. You can also email us at cbs@logisticsplus.com.

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U.S. Global Trade Trends from The Year in Trade 2017 Report

U.S. Global Trade Trends from The Year in Trade 2017 Report

global_sourcingThe United States International Trade Commission (USITC) just released its updated “The Year in Trade 2017” report. This report covers all of the global trade trends from 2017. Included in this report are exchange rate trends, trade laws and regulations, global economic trends, regional trade activity, global trade agreements, and new trade relations, among other topics. Let’s take a look at some of the most intriguing and important trade trends that occurred in 2017.

Trade Activities With Major Trading Partners

As expected, China was again named the United States largest single-country trading partner based on two-way merchandise trade in 2017. Merchandise trade with China accounts for 16.4 percent of total U.S. trades and amounts to $635.9 billion in trade. Behind China is Canada for the third consecutive year. U.S. and Canada trade rose 7 percent from the previous year and amounted to $582.4 billion in 2017. Following China and Canada is Mexico with a value of $557 billion in 2017 trade. The figure below includes the top 7 single-countries the U.S. trades with, and also the E.U. which includes all countries the U.S. trades with in Europe.


U.S. Exports and Imports

In 2017, transportation equipment was the largest U.S. export sector accounting for 21 percent of all exports. Close behind was electronics (17.3 percent), and chemical related products (14.7 percent). The top individual export product were civilian aircraft, engines, and parts, along with refined petroleum products. The biggest U.S. import in 2017 was electronic products, which totaled for 20.7 percent of U.S. imports. On an individual basis, passenger motor vehicles were the largest U.S. import valued at $186.4 billion. China was once again the leading source of U.S. imports in 2017.

Exchange Rate Trends

Overall, the U.S. dollar depreciated in 2017, falling 6.3 percent on the broad dollar index. This downward trend was mainly driven by the depreciation of the U.S. dollar compared to other major world currencies. The U.S. dollar fell by 12 percent against the euro, 9.4 percent against the pound (UK), 6.8 percent against the Canadian dollar, and 6.1 percent against the Mexican peso. Several major U.S. investment banks noted that the euro and pound were recovering from an early drop due to the uncertainty of the Brexit vote. The figure below shows the U.S. dollar exchange rate compared to other major world currencies.


U.S. GDP in 2017

The United States had a $19.4 trillion economy in 2017, and the economy grew faster in 2017 than it did in 2016. U.S. real gross domestic product (GDP) increased 2.3 percent in 2017 compared to the growth rate of 1.5 percent in 2016. The main factors driving this high growth rate were due to four industries- professional and business services; finance, insurance, real estate, rental, and leasing; manufacturing; and retail trade.

To read the full report, The Year in Trade 2017, published by the United States International Trade Commission, click here.

If your company has import or export needs, you should consider working with Logistics Plus. In the U.S. we have more than a dozen locations that can help you with your transportation and logistics needs; and our Customs Broker Solutions staff can also help you clear customs for imports at any port in the United States. Additionally, Logistics Plus now has locations at 50 offices in 22 countries. As always, you can find any of our worldwide employees in our online global directory.

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Shift Your Supply Chain Back Into High-Gear After Chinese New Year

Shift Your Supply Chain Back Into High-Gear After Chinese New Year

Chinese New Year is the first day of the year in the Chinese calendar. Chinese New Year is also known as the Spring Festival in modern China, or simply the Lunar New Year, is the most important and longest of all Chinese holidays. The first day of the Chinese New Year 2018, the year of the dog will be celebrated Thursday, February 15, 2018, until February 21, 2018. As you might imagine, given the prominence of Chinese global commerce, the holiday has a huge impact on global supply chains around the world.

Government, construction, and factories are generally closed for most of the Spring Festival (including the Logistics Plus offices in China), while ports and customs usually operate with a skeleton staff focusing on perishable priority items. Many manufacturers treat the holiday as an annual break and will subsequently shut down for two weeks or longer. With this year’s holiday falling a full 19 days later than it did in 2017, the 2018 Chinese New Year will be different, with normal freight flows resuming in mid-to-late March, according to John Paul Hampstead, staff writer for FreightWaves.com.

If you have Chinese imports or exports, hopefully, you have already planned ahead for this annual supply chain disruption (most suppliers have probably already stopped accepting orders until after the holiday). Different manufacturers might have different schedules, so it is best to coordinate individually with each of your overseas suppliers. Planning and coordination are key to ensuring your supply chain continues to run smoothly before, during, and after the Chinese New Year.

If you need help shifting your supply chain back into high-gear following the Chinese New Year, the global import & export experts at Logistics Plus are here to help. As a top freight forwarder and NVOCC, we can help you secure affordable air freight and ocean freight transportation, and we can provide you with customs brokerage and global trade compliance support. Shipping documents (e.g., BOL entry, arrival notice, custom filings), tariff filings, VGM submissions, cargo tracking, freight rate management, and more – we’ve got you covered! Once your goods arrive in the U.S., we can provide warehousing and fulfillment, and transportation solutions as needed too. Contact us today!

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PS: As a reminder, Logistics Plus China offices will also be closed from February 15 through February 21 for the holiday. Those offices will resume normal operations on February 22. During that time period, all other Logistics Plus locations stand ready to help you with your international shipping needs.

Importing Basics and Exporting Basics Webinars

Importing Basics and Exporting Basics Webinars

Importing Basics and Exporting BasicsLogistics Plus recently recorded two new webinars as part of its ongoing series of complimentary logistics-related webinars for the Manufacturer & Business Association (MBA) and its members. The two new webinars are focused on Importing Basics and Exporting Basics. Although these webinars are prepared for the benefit of MBA members, the informational content is appropriate for any business that is, or will be, importing or exporting products.  Past webinars cover additional transportation and logistics topics. Logistics Plus is the company that manages the MBA Logistics Program. You can learn more about the program at www.mbausa.org/logistics.

Importing Basics:

Exporting Basics:

What are Incoterms? Here’s what you should know!

What are Incoterms? Here’s what you should know!

incoterms article picIncoterms® is an abbreviation for “International Commercial Terms.” This term represents a very useful way of communication and it’s actually aimed at reducing confusion between buyers and sellers.

So what is an incoterm? An incoterm represents a universal term that defines a transaction between importer and exporter so that both parties understand the tasks, costs, risks, and responsibilities, as well as the logistics and transportation management from the exit of the product to the reception by the importing country. Incoterms are all the possible ways of distributing responsibilities and obligations between two parties. It is important for the buyer and seller to pre-define the responsibilities and obligations for the transport of the goods.

Here are the main responsibilities and obligations:

  • Point of delivery: here, the incoterms defines the point of change of hands from seller to buyer.
  • Transportation costs: here, the incoterms define who pays for whichever transportation is required.
  • Export and import formalities: here, incoterms define which party arranges for import and export formalities.
  • Insurance cost: here, incoterms define who takes charge of the insurance cost.

Advantages of using incoterms:

  • As they stand today, there are 11 main terms and a number of secondary terms that help buyers and sellers communicate the provisions of a contract in a clearer way; therefore, reducing the risk of misinterpretation by one of the parties.
  • Incoterms govern everything from transportation costs, insurance to liabilities. They contribute to answering questions such as “When will the delivery be completed?” “What are the modalities and conditions for transportation?” and “How do you ensure one party that the other has met the established standards? Having said that, it is important to remember that there are also limits to Incoterms. For example, they do not apply to contractual rights and obligations that do not have to do with deliveries. Neither do they define solutions for breach of contract.

Here’s what you should know about incoterms:

  • Ex Works (EXW) – The seller makes the goods available at its location, so the buyer can take over all the transportation costs and also bears the risks of bringing the goods to their final destination.
  • Free Carrier (FCA) – The seller hands over the goods into the disposal of the first carrier. After the buyer takes over all the costs, the risk passes when the goods are handed over to the first carrier.
  • Free Alongside Ship (FAS) – The seller must place the goods alongside the ship at the named port, the risk of loss or damage to the goods passes when the goods are alongside the ship, and the buyer bears all the costs from that moment on.
  • Free on Board (FOB) –The seller must load the goods on board of the ship, nominated by the buyer. Cost and risk are divided when the goods are actually on board.
  • Cost and Freight (CFR) –Seller must pay the costs and freight to bring the goods to the port of destination. Although the risk is transferred to the buyer when the goods are loaded on the ship.
  • Cost, Insurance and Freight (CIF) –It’s exactly like CFR except that the seller must in addition procure and pay for the insurance.
  • Carrier and Insurance Paid to (CIP) –The seller pays for the carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.
  • Delivered Duty Paid (DDP) –The seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination.

You will find a handy Incoterms 2010 Quick Reference Guide on the Logistics Plus website. Additionally, you can check out our short Introduction to Incoterms 2010 Webinar online.

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