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Swan & Hercules Global Logistics

Swan & Hercules Global Logistics. Exporting ….. With a Twist. The Known. New England Manufacturer With Production in USA and China Potential customer in Germany requests Quotation Total Weight involved in proposal 1,900,000 kgs Information Available to Work With: Quantity Unit Price

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Swan & Hercules Global Logistics

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  1. Swan & Hercules Global Logistics Exporting…..With a Twist

  2. The Known • New England Manufacturer With Production in USA and China • Potential customer in Germany requests Quotation • Total Weight involved in proposal 1,900,000 kgs • Information Available to Work With: • Quantity • Unit Price • Weight

  3. Potential Buyer’s Requirement • Proposal Required • Ex Works from USA and China • Delivered Duty Paid from USA and China • Delivered Duty Paid in USD and Euro

  4. The Unknown • Import Regulations in Germany • How to Calculate the Duty • How to handle the VAT • Competing Against Domestic or other Foreign Suppliers • How to Calculate all charges on a cost per 1,000 basis • How to Handle the Foreign Currency Exchange Rates • Freight Costs • What should the Disclaimers Be

  5. The Result

  6. The Disclaimers • FX rate used = 1.37 USD to 1.00 EUR • Pricing Re Negotiated if/when the FX rate moves +/- 8% • Minimum Shipment Weight – 22,000kgs Questions?? Thank you…

  7. Export/Import Controls • Topics to Cover • Export Control Classification Number (ECCN) • Harmonized Tariff Schedule (HTS) • Schedule B Codes

  8. ECCN Briefly Explained • A 5 digit Alpha/Numeric Designator • Categorizes items based on: • Nature of the Product • The Product’s Technical Paramaters • All ECCN’s are Contained Within the Commerce Control List (CCL) to Identify Dual-use Items for Export Control Purposes • Dual Use Items Could Pose a Threat to US National Security

  9. Harmonized Tariff Schedule (HTS) • The US HTS System is based on the Globally Recognized Harmonized System (HS) • Administrated by the US International Trade Commission (USITC) • The US HTS uses a 10 digit Numeric Code to Classify Physical Goods and Ultimately Determine the Import Duty Rate. • First Two Digits - Are a Reference to the Appropriate Chapter • First four Digits - Are a reference to the Articles Heading within that Chapter • The Last 6 Digits – Break the Headings down to Sub Headings.

  10. Schedule B Numbers The US Schedule B System is Based on the Globally Recognized Harmonized System (HS) Administered By the US Commerce Dept., Census Bureau, Foreign Trade Division The Schedule B Number is a 10 Digit number Used to Classify Physical Goods for Export to Another Country. Unlike HTS That are Used to Determine Duty Rates, The Schedule B Numbers are Used by the Census Bureau to Track Trade Statistics.

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