“KNOW” BEFORE YOU SAY “GO” New Supply Chain Paradigm Roger Clarke Williams Clarke Company, Inc. President com website: Chairman, Los Angeles Customs Brokers and Freight Forwarders Association Inc. Director, National Customs Brokers & Forwarders of America, Inc.

Supply Chain Considerations To Mitigate Delays and Costs Know who you are dealing with for both imports and exports Know who you are dealing with for both imports and exports Logistics Challenges Logistics Challenges Provide proper and complete documentation Provide proper and complete documentation

Know who you are dealing with for both imports and exports Verify the firm or individual your are negotiating with exists and are who they say they. Ask for some government verification documentation Verify the firm or individual your are negotiating with exists and are who they say they. Ask for some government verification documentation Check the blocked, denied, entity and debarred persons list on the Customs and Border Protection and Bureau of Industry and Security websites: Check the blocked, denied, entity and debarred persons list on the Customs and Border Protection and Bureau of Industry and Security websites: Utilize trade professionals: brokers; forwarders; attorneys; consultants to help in the verification process Utilize trade professionals: brokers; forwarders; attorneys; consultants to help in the verification process Keep accurate records of all communications Keep accurate records of all communications Review CBP trade publication web page Review CBP trade publication web page

Logistics Challenges Analyze and plan for any special logistics requirement and define desired time frames Analyze and plan for any special logistics requirement and define desired time frames Consider possible carrier equipment and space problems Consider possible carrier equipment and space problems Government examination and requirements can cause delays and add substantial cost to goods movement Government examination and requirements can cause delays and add substantial cost to goods movement –Customs and Border Protection (CBP) examinations Imports: Imports: Non Intrusive Inspection (NII) - x-ray and magnetic imaging Non Intrusive Inspection (NII) - x-ray and magnetic imaging Contraband Enforcement Team (CET) - drugs and security Contraband Enforcement Team (CET) - drugs and security Merchandise Enforcement Team MET) – commercial inspection Merchandise Enforcement Team MET) – commercial inspection

Logistics Challenges Exports Exports Intellectual Property Rights examinations Intellectual Property Rights examinations Possible commodity licensing by the Dept. of Commerce, Bureau of Industry and Security Possible commodity licensing by the Dept. of Commerce, Bureau of Industry and Security Non-compliance with Automated Export System requirements will stop the export Non-compliance with Automated Export System requirements will stop the export Other Regulatory Agency Examinations Other Regulatory Agency Examinations –Department of Agriculture full devan examination –Fish & Wildlife inspection –Food and Drug Administration sampling and “Detention Without Physical Examination” –Consumer Product Safety Commission

Logistics Challenges New government initiatives New government initiatives –Customs-Trade Partnership Against Terrorism (C-TPAT) –Secure Freight Initiative (SFI) –Container Security Initiative (CSI) –Importer Security Filing (ISF 10+2) –FDA Food Safety Initiative –Consumer Product Safety Act-U.S. Consumer Product Safety Commission –Lacey Act Amendments- new requirements and declaration relating to wildlife, fish, and plants. Both native and manufactured Port environmental and infrastructure issues Port environmental and infrastructure issues

Provide proper and complete documentation Review Customs and Border Protection tips for new importers and exporters at: Review Customs and Border Protection tips for new importers and exporters at: Review CBP publication “Importing into the United States” Review CBP publication “Importing into the United States” ctt/iius.pdf ctt/iius.pdf Work with trade professional to determine the proper Harmonized Tariff Schedule classification and declared valuation Work with trade professional to determine the proper Harmonized Tariff Schedule classification and declared valuation Obtain a CBP binding ruling Obtain a CBP binding ruling

Provide proper and complete documentation Verify all pricing is correct and terms of sale is clearly displayed on the commercial invoice: FOB; C&F; CIF; DUP; DDP Verify all pricing is correct and terms of sale is clearly displayed on the commercial invoice: FOB; C&F; CIF; DUP; DDP Commercial invoice must indicate costs, discounts, assets, commission must be shown Commercial invoice must indicate costs, discounts, assets, commission must be shown –Ocean freight paid, importer responsible for verification if requested by CBP –Insurance premium amount if applicable –Any selling or buying commission if applicable –Any assists both physical or financial –Indicate if purchased or sold on consignment –Indicate if transaction is conducted by related parties –Complete and accurate description of each item in the shipment

Provide proper and complete documentation Packing List Packing List –Quantity –Packaging –Weight Check Customs Rulings Online Search System (CROSS) Check Customs Rulings Online Search System (CROSS) Other documents necessary to determiner merchandise admissibility Other documents necessary to determiner merchandise admissibility Other regulatory agency documentation Other regulatory agency documentation

Let’s “GO” now that you “Know” Importing and exporting is not rocket science. With a little planning and research problems can avoided and a successful transaction can be accomplished Importing and exporting is not rocket science. With a little planning and research problems can avoided and a successful transaction can be accomplished Make use of all available resources Make use of all available resources Use trade professional for not only the actual operational requirements but also for preplanning and consolation Use trade professional for not only the actual operational requirements but also for preplanning and consolation Keep accurate and complete records Keep accurate and complete records Plan for the unexpected Plan for the unexpected