The Export, Shipping, Import Checklist
Eliminating the common mistakes in the final phase of Global Sourcing
By Robi Bendorf, C.P.M.
(This article is the basis of the article appearing in Purchasing Today)
One of the most frequently overlooked steps in the global sourcing process is
the final phase of exporting, shipping, and importing the product. This phase
which can involve over a dozen different entities handling even a greater number
of varied documents is frequently the cause of late deliveries or unexpected
cost in international transactions. Although there are many common situations
causing difficulties in international shipments, according to Chuck Watson,
President of R.L. Swearer Customs Brokers, the most common is represented by the
cry, "Where is the paper work?" Other common problems according to
those with experience in global sourcing are lack of knowledge about Incoterms,
which can result in greater cost than expected; insufficient consignment and
package marking instructions to the supplier or forwarder; and failure to
designate good quality carriers and routings to the supplier. Another area of
concern for the purchaser is to insure compliance with all regulatory
requirements related to the items being imported. Of particular concern here is
the proper classification of the items for duty purposes, the accurate reporting
of Assists given the supplier that must be included in the value of the goods,
and issues related to packaging and hazardous cargo. As a very astute, but
unknown, author once said, "The wise learn from their own mistakes. The
truly wise will learn from the mistakes of others." It was from the
mistakes commonly made by Importers that the following checklist was developed.
It is hoped that the Checklist will assist the Global Purchaser in assuring that
the shipment will arrive on time and at the total cost estimated.
The Export, Shipping, Import Checklist
Prior to Shipment
- Fax request for current status.
- Review shipping & payment terms.
- Confirm that Customs Broker has been selected.
- Does Broker have Purchaser’s Power of Attorney?
- Does Purchaser have Customs Bond (Either Single or Continuous)?
- Confirm that supplier will include any Assists in shipment value?
- Confirm that country of origin product marking instructions are being
followed.
- Confirm that supplier will use purchaser supplied US Customs Harmonized
Number in shipping description.
- Specify to supplier transportation method and routing
- Confirm consignee, notify party, port, & markings and that buyer will
receive copy of shipping papers
- Specify forwarder & broker if not included in P. O.
- Confirm that supplier or forwarder has routing.
- Confirm that transportation has been arranged.
- Confirm that freight methods and rates used in original landed cost
estimates are being used.
- Confirm that some form of proof of origin will be sent to purchaser (No
longer required for Customs Clearance, but may be needed for Customs’
Audit)
- Is an inspection certificate or other certification required & if so,
is it complete.
- Confirm special packaging arrangements.
- Confirm hazardous cargo compliance.
- Consider strikes or any other significant International events that may
cause delay.
- Confirm that procedure for transportation insurance coverage is being
followed.
- After Shipment Leaves Supplier
- Confirm that freight forwarder has freight and that booking was made per
routing instructions.
- Confirm shipment is on intended vessel/flight.
- Determine if pre-clear through US Customs is possible.
- Check Documents received to insure correct consignee, notify party,
destination and markings.
- Confirm forwarder has sent copies of documents to purchaser & broker
- Confirm broker is aware of shipment, has all necessary documents, and has
been given inland shipping instructions.
- Prepare info for special clearances such as FDA if required.
- Confirm arrival with broker.
- Confirm Custom clearance with broker
- Obtain pro number, trailer number, name & phone number of inland
carrier.
- Confirm inland delivery with inland carrier
When experience is lacking in any of these areas, it is best to get in touch
with your Customs Broker who should be able to provide valuable assistance.
By Robi Bendorf, C.P.M., principle of Bendorf & Associates Consulting in
Pittsburgh, Pennsylvania (click here for a bio).
http://www.bendorf.com