Shipping Webinar Presented by AMT Schenker Inc

Shipping Webinar Presented by AMT & Schenker, Inc.

Shipping 101 - Export Shipping Services Required for Export: Packing advice Domestic transport to consolidation points and/or points of export Documentation including: translation of invoices, air waybills, ocean bills of lading, shipper‘s export declarations and more Transport insurance Ocean and airfreight consolidation and direct services to final destination Customs clearance

Shipping 101 - Export Why Do You Need a Freight Forwarder? • There a multitude of considerations involved in physically exporting goods • Freight forwarders are licensed by the International Air Transportation Association (IATA) to handle airfreight and the Federal Maritime Commissions to handle ocean freight • They assist in preparing price quotations, which include freight costs, port charges, consular fees, costs for special documentation, insurance and handling fees • They are logistic providers who reserve the necessary space on a vessel, aircraft, train or truck

Shipping 101 - Export Responsibilities of the Freight Forwarder: • To act as an agent for the exporter in moving cargo to an overseas destination • Know export regulations of the U. S. Government • Is familiar with the rules and regulations of foreign countries • Advise the best method of shipping your freight by air and sea • Assist with documentation foreign trade

Shipping 101 - Export Making it easy. . . The most important details to remember when shipping your goods are: 1. Meet the deadline dates for arrival, when applicable 2. Have your documentation properly prepared 3. Pack and label the crates or boxes according to instructions 4. Always contact your freight forwarder‘s office in advance to secure a booking on an aircraft or vessel

Shipping 101 - Export 1. Meet the deadline dates given to you by your freight forwarder 2. Those of us in the freight forwarding and Customs clearance business are still experiencing many delays because of the added security measures being taken by the steamship lines, air lines, U. S. Customs, and other government offices. 2. Have your documentation properly prepared 3. 4. 5. 6. 7. 8. The proper documents needed for export are: Commercial Invoice Consular Invoice Certificate of Origin Shipper‘s Declaration Export License Insurance Certificate ATA Carnet NAFTA Certificate Power of Attorney Additional documents may be required depending on which country you are shipping to. Your logistics provider will assist you with any additional documentation. 9. Most documentation is routine for freight forwarders and custom house brokers, but the shipper is responsible for the accuracy of the documents.

Shipping 101 - Export 3. Pack and label crates according to instructions It is important that exporters are aware of the demands that international shipping puts on packed goods. Exporters should keep in mind these potential problems when designing an export shipping crate: • breakage • moisture • pilferage • excess weight Containers should be properly blocked and braced regardless of size. Freight should be palletized and shrink wrapped and the weight should be evenly distributed. Labeling Freight should be properly labeled with: Shipper‘s Name Shipper‘s Full address Consignee‘s Name Consignee‘s Full address Number of pieces marked as 1 of 1 (1/1) 4. Contact your forwarder in advance to secure a booking on an aircraft or vessel

Shipping 101 – Export Terms Glossary of Terms: The following terms and documents are commonly used in exporting; but which of them are necessary in a particular transaction depends on the requirements of the U. S. Government and the government of the importing country. Shipper The party designated on the bill of lading and the export declaration as legal sender of the goods. Legally responsible for (prepaid) transportation charges and liabilities assumed when making a shipment by Air or Sea. Consignee The legal party indicated on a bill of lading who takes possession of the goods after satisfying various obligations to the carrier. (This does not apply when the consignee is made out ‘to order’s the holder of the original bill of ladings will take possession of the goods). A commercial invoice is a bill for goods from seller to the buyer. These invoices are often used by governments to determine the true value of the goods when assessing customs duties. An insurance certificate is used to assure the consignee that insurance will cover loss of or damage to the cargo during transit.

Shipping 101 – Export Terms A consular invoice (legalized) is a document that is required in some countries. It describes the shipment of goods and shows information such as the consignor, consignee, and value of the shipment. Certified by the consular official for the foreign country stationed here, it is used by the country’s customs officials to verify the value, quantity, and nature of goods. A certificate of origin is a document that is required in certain nations. It is a signed statement as to the origin of the export item. Certificates of origin are usually signed through a semiofficial organization, such as the local chamber of commerce. A certificate of origin may be required even if the commercial invoice contain the information. A NAFTA certificate of origin is required for products traded among the NAFTA countries (Canada, United States, and Mexico). An export license is a government document that authorizes the export of specific goods in specific quantities to a particular destination. This document may be required for most or all exports to some countries or for other countries only under specific circumstances.

Shipping 101 – Export Terms A shippers declaration (SED) is used to control exports and act as source document for official U. S. export statistics. SED’s must be prepared for shipments when the value of the commodities, classified under any single schedule B number, is over $2500. SED’s must be prepared, regardless of the value, for shipment requiring an export license or destined for countries restricted by the Export administration Regulations. You may find additional information regarding SED’s and export license on the U. S. Department of Census website: www. census. gov An ATA Carnet is an internationally accepted document often called merchandise passport for Boomerang freight. By presenting an ATA Carnet to foreign customs, your merchandise and equipment pass duty free and tax free into a carnet country for up to one year. At the end of the year all items listed on the carnet country for up to one year. At the end of the year all items listed on the carnet must be returned back to the origin country thus the term boomerang freight. For more information please contact the carnet helpline at (800) 282 -2900 or http: //www. atacarnet. com

Shipping 101 – Export Terms LCL Less then a container load FCL Full container load Cubic Meters (CBM) The basis commonly used for applying LCL ocean freight rates. Charges are based on weight/measure (WM). Weight/measure is based on either 1000 kgs or 1 CBM Metric Ton One ton equals 1000 kgs. Common Conversions To figure out pounds in to Kilograms: Divide weight (Lbs) by 2. 2046 To figure out cubic meters: Length x Width x Height = A A divide by 1728= Cubic feet divided by 35. 3= Cubic meters To figure out volume: Length x Width x Height = A A divided by 166 = volume weight in Pounds Weight in pounds divided by 2. 2046= volume weight in Kilograms

Shipping 101 – Export Terms Ocean Equipment: (Check website for equipment dimensions) 20 foot open top 20 foot flat rack 40 foot high cube 40 foot open top 40 foot flat rack 45 foot Full containers (Ocean freight) • Provide proper blocking and bracing in the container and make sure the weight is evenly distributed

Shipping 101 – Export Terms Standard trade definitions: INCOTERMS are international rules that are accepted by governments, legal authorities and practitioners worldwide for the interpretation of the most commonly used terms in international trade. Terms are grouped into 4 categories denoted by the first letter in the 3 letter abbreviation. “E“-Term (EXW) The seller only makes the goods available to the buyer at the seller‘s own premises “F“-Terms (FCA, FAS, and FOB) The seller is called upon to deliver the goods to a carrier appointed by the buyer “C“-Terms (CFR, CIF, CPT and CIP) The seller has to contract for carriage, but without assuming the risk of loss or damage to the goods or additional costs due to events occuring after shipment or dispatch “D“-Terms (DAF, DES, DEQ, DDU and DDP) The seller has to bear all costs and risks needed to bring the good to the place of destination All terms list the Seller’s and the Buyer’s obligation, ie. Delivery, transfer of risk, division of costs

Shipping 101 – Export Terms Common Incoterms: EXW Ex works CIP Carriage and insurance paid to FCA Free carrier DAF Delivered at frontier FAS Free alongside ship DES Delivered ex ship FOB Free on board DEQ Delivered ex quay CFR Cost and freight DDU Delivered duty unpaid CIF Cost insurance and freight DDP Delivered duty paid CPT Carriage paid to http: //www. i-b-t. net/incoterms. html

Shipping 101 – New Export Regulation European Union Measures for Coniferous Wood (Pallets) There are revised regulations for heat treatment and marking of all new and used nonmanufactured wood packing material (NMWP) NMWP must be • Heat treated or kiln-dried • Bear a mark indicating the organization that treated the NMWP and the location of that organization You can find more information at the following web site: http: //www. aphis. usda. gov/ppq/wpm/export/eu. html Similar regulations apply for the Far East and South America. Your provider can assist you with questions.

Shipping 101 – Import The same general rules for “Making It Easy” to export out of the U. S. apply to importing into the U. S. : 1. Meet the deadline dates for arrival, when applicable 2. Have your documentation properly prepared 3. Pack and label the crates or boxes according to instructions 4. No matter how early or how rushed your shipment is, always contact your forwarder in advance to secure a booking on an aircraft or vessel Importing into the U. S. requires different documents than Exporting: 3 Original Bills of Lading for ocean shipments or 1 Copy of the Air Way Bill for air shipments 3 Commercial Invoices (in English) 3 Packing Lists (which make the job easier, especially when dimensions, weight and contents of each case are listed)

Shipping 101 – Import The Commercial Invoice must show: • The name and address of the shipper or supplier • A full description of each item. It is not sufficient to use the descriptions of “display material“, “machinery“ or “communication equipment“. Customs requires that each tariff commodity be itemized separately. Stand materials should be listed as made of wood, aluminum or steel. For any textile articles, a textile declaration must be filled out showing the fabric content of the item. In the near future, US Customs will be requesting that the shipper provide the actual manufacturer or manufacturers of any textile items being shipped. It would be a good idea to keep this information close at hand, in case it is requested at the time of your importation. • Please make sure to indicate the total invoice price and currency used.

Shipping 101 – Import The Commercial Invoice must also show: • The quantity and unit price of each individual item must be shown on the invoice, including samples and catalogs. Do not use the term “Of no commercial value“. All items have a cost in order to be produced. It is a U. S. Customs law that all items have a separate value for each commodity listed on the invoice. • The invoice should state the country of origin, indentifying marks, the number of packages, their weight and measurements. Invoices must be completed properly otherwise the shipment will not clear customs until the necessary information is provided. This will inevitably delay your shipment.

Shipping 101 – Import Packing Proper packing insures a safer transport, delivery and with the use of proper hardware, a much easier unpacking job. Here a few procedures you may consider when packing your shipment: • Use of bolts or screws to secure your crates instead of nails. Constant removal of the nails only weakens your packing material. • Plywood should be avoided as it is very difficult to repair. • Use humidifying materials as your goods pass through climatic changes • When machines are bolted to the sides, it is recommended that the nuts be on the upper side of the base. This makes the removal faster and easier.

Shipping 101 – Import Changes affecting IMTS 2006 Import Regulation Revision Effective September 16, 2005 USDA has revised the import regulation for wood packing material (WPM). • The regulation requires WPM coming into the U. S. to be treated and marked. • If your WPM is not treated and marked, your cargo may be subject to immediate export. • Contact Schenker and visit www. aphis. usda. gov/ppq/wpm/import. html for more information.

Shipping 101 – Import Changes affecting IMTS 2006 Consignment There are new U. S. Customs regulations effective during the summer of this year on the consignment of airway bills and ocean bills of lading. January 1, 2006 starts the beginning of fines for incorrect or incomplete consignments. The Exhibitor Name C/O The Exhibition Notify party: Booth Number Your Customs Broker Convention Center Person’s Attention Street Address Telephone Number City, State, Zip

Shipping 101 – Import Changes affecting IMTS 2006 Marking Crates and Packages All crates now have to labeled with the *complete* address of the convention center, such as: The Exhibitor Name C/O The Exhibition Booth Number Convention Center Street Address City, State, Zip AMT C/O IMTS 2006 Booth # 1500 Mc. Cormick Place 2301 S. Lake Shore Drive Chicago, IL 60616 • Crates should also be marked with weights and dimensions. • Label cases with the fractional system. For example, case number 1 of 4 should be marked 1/4; case number 2 of 4 should be marked 2/4; etc. • All cases should be labeled by affixing proper labels such as: Fragile This side up

Shipping 101 – Import Changes affecting IMTS 2006 Registration of Food Facilities If you are considering sending any food items to the U. S. , please make sure that the manufacturer’s facility is registered with the FDA prior to shipping. This should be done by the manufacturer/importer and may be done on-line. This is a rather long and costly process and should be avoided if it is not necessary. For further information and registration, visit: http: //www. cfsan. fda. gov/~furls/ovffreg. html.

Shipping 101 – Import Changes affecting IMTS 2006 Prior Notification of Imported Food Shipments FDA requires advance notice on shipments containing any imported food. Shipments without prior notification will not be allowed into the country. If the shipping of food is absolutely unavoidable, the following steps must be taken in order for your shipment to be allowed into the country: • Prior Notice must be electronically received and confirmed by FDA before a food shipment arrives at the first port in the United States (although no more than 5 days before a shipment arrives). • The deadline depends on the mode of transport used for the shipment (air or sea). To submit Prior Notification, deadline information and more, visit: http: //www. cfsan. fda. gov/~pn/pnoview. html.

Shipping 101 – Exhibitions Shipping to Exhibition “extras“: Intermediate warehousing Delivery to the exhibition stand (Overseas shows only) Labor and equipment for unpacking, set up and repacking (Overseas shows only) Pick up, storage and return of empty packing materials (Overseas shows only) On-site supervision Export customs clearance formalities Return transport to point of origin or final destination U. S. Customs clearance formalities

Shipping 101 – Exhibitions Exporting Exhibition Shipments Shipping to a trade fair can add a sense of urgency and additional considerations that “regular” exporting doesn’t have. For peace of mind, we recommend using a freight forwarder that has experience and is familiar with export shipping to exhibitions, not just general exporting. A specialized “Fair Department” will understand your shipping concerns and priorities, and will eliminate any unforeseeable surprises. • Use a freight forwarder with on-site resources

Shipping 101 – Exhibitions Commercial Invoice/Packing List Consignment for Exhibition Freight When preparing a commercial invoice for exhibition freight, the invoice is consigned to the exhibitor at their booth, not to the logistics provider. Such as: ABC Company (Exporter) C/O Show Name Hall #, Booth # City, Country Also, a detailed description of all items being shipped along with the product number, serial number and harmonized tariff code. If the product is sold at show site, a new invoice consigned to the buyer will be necessary to complete customs requirements.

Shipping 101 – Exhibitions Labeling When exporting to an exhibition, the shipment should be labeled with the following information: Show Name C/O Company Name Hall #, Booth # City, Country Gross weight: Lbs. , kgs. Pieces (1 of 2, 2 of 2, etc. ) Please note: If the freight forwarder is arranging pick up from your facility, an additional label will be required consigned to the freight forwarder at their address.

Shipping 101 – Exhibitions Deadlines for Exhibition Freight A general rule for shipping exhibition freight to Europe is to allow: • 2 weeks prior to the show for airfreight • 6 weeks prior to the show for ocean freight Special consideration should to be given to exhibitions being held in South and Central America, including Mexico, China and some other Far East countries. For these countries it is necessary to ship the goods earlier than indicated above.

Shipping 101 – Exhibitions Insurance – Very Important We highly recommend that your shipment be insured. Your shipment should be insured for the following: • Full invoice value • Include transportation charges to the exhibition • Cover the product during the exhibition • And if you know that the shipment is returning - include transportation charges from the exhibition

Introduction to Schenker • Founded in 1872 in Vienna, Austria • We employ over 48, 000 logistics and freight forwarding specialists in over 1400 locations worldwide • World headquarters in Essen, Germany • Schenker has operated in the United States since 1947 • The U. S. Corporate office is in Freeport, NY • Representation in or near every major trading center with 50 offices throughout the country Atlanta • Austin • Baltimore • Birmingham • Boston • Charleston • Charlotte • Chicago Cincinnati • Cleveland • Columbus • Dallas • Denver • Detroit • Freeport • Hartford Houston • Indianapolis • Laredo • Long Beach • Los Angeles • Louisville • Miami • Milwaukee Minneapolis • Lyndhurst • New Orleans • New York • Norfolk • Orlando • Philadelphia • Phoenix Pittsburgh • Portland • Reno • Richmond • Salt Lake City • San Diego • San Francisco Sacramento • Seattle • St. Louis • Syracuse

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SCHENKERnet & AMT: Partner Web Site SCHENKER net • A powerful tool for collaboration • Provides a secure and central workspace • One stop shop for shipping information and needs Located at www. schenkernet. com/amt

SCHENKERnet & AMT: Partner Web Site SCHENKER net Main foci: 1 General Export Shipping 2 General Import Shipping 3 Exhibition Export Instructions 4 Exhibition Import Shipping 5 Facts and Frequently Asked Questions Such as: contacts, documentation (by country), packing and labeling, customs regulations, incoterms, and container dimensions

SCHENKERnet & AMT: Partner Web Site SCHENKER net Additional Features and Options: 6 Track and trace 7 News bulletins/mail room 8 Discussion board

Contacts SCHENKERfairs Contacts Chicago Branch 1800 Nicholas Boulevard Elk Grove Village, IL 60007 Romas Simanauskas, Vice President T: (630) 860 -3335 Tina Bryja, Import Manager T: (630) 860 -3333 San Francisco Branch 380 Littlefield Avenue South San Francisco, CA 94080 Herbert Kaltschmid, Manager T: (650) 875 -2021