Management of Incoterms and Trade Payment Terms in Shipping

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The purchase, sale or exchange of goods and services across national borders is termed International Trade in which the value and volume is increasing at an alarming rate, alongside with

1 The purchase, sale or exchange of goods and services across national borders is termed International Trade in which the value and volume is increasing at an alarming rate, alongside with Globalization There are organizations reaping the benefits of this phenomena and organizations who are falling deeper into the pitfall of globalization. Often the case, the strategic reasons being related to an under-estimation of the logistics functions and lack-awareness of actual customer s requirements. An in-depth understanding of the cross border inherent risks from source to supply and neutralizing the constraints of customs procedures and formalities would assist in avoiding huge losses. Course Benefits Participants will have a better understanding on the shortfall and pitfall of the international trade leading to a destruction of a company s fulfillment, erosion of a company s profit and creation of fraud opening. Participants will be able to chart a course of action to reinforce a business plan and a contingency plan in anticipation of any operation risks. Participants will acquire the practical knowledge of customs declaration Form 1 & 2 and be able to avoid irregularities and discrepancies in customs issues. Dun & Bradstreet a Global network and world leading provider of commercial credit. Apart from Business Education Services (BES) which provides Training and Seminar specializing in Credit Management Program, D&B offers an integrated set of business information which includes Credit Risk Management Services, Business Marketing Services, Receivables Management Services and Market Intelligent Services. Reduce your credit risks with the global information in D&B reports to make more informed decisions on your potential business transactions.

2 Course Outline 1. The constraints and complexities of international trade captured in the S.M.A.R.T. risks of Security, Market, Adversity, Regulated and Transportation. The keys to international trade success depend on and inter-related to Emphasizing Global Awareness and Market Effectively. The common fulfillment mistakes of not understanding the Supply Chain, allowing Marketing and Logistics operations functioning separately and executing Order Returns as an afterthought. 2. The 3-stage Strategy Formulation of international trade in Identifying mission and goal, Developing value creating activities and Adapting international business perspectives. The components of a Company s Value Chain starting with the Internal Infrastructure, Human Resource Capability, Technology Development and Procurement Management. The Blueprint Going International Survival Kit focusing on thorough understanding of the Product and examining the Company s Activities. 3. The basic customs laws or regulations applicable to the arrival and departure of ships and to goods imported and exported are generally the same in most countries. The main Arrival Formalities featuring the Entry Inwards and Import Manifest. The practice of Pre-Entry procedures and Advance Manifest. The main Departure Formalities featuring the Entry Outwards and Port Clearance. The practice of Export Manifest. 4. The main formalities of customs clearance at the port of entry of a particular country. Pertaining to the modes of transport by sea or waterway or similar combination modes. Import Cargo formalities commencing from cargo to be landed. Submission of the Bill of Entry. The mandatory rights of the customs authorities in the inward customs flow. Export Cargo formalities commencing from cargo to be exported. The regulated control of exporting commodities. Submission of the Export Declaration. The provisions and types of Shipping Bill. The mandatory rights of the customs authorities.

3 5. The principles of the Customs Tariff Classification System. Explaining the Brussels Convention, a nomenclature known as Brussels Tariff Nomenclature for the classification of goods. The Harmonized Commodity Description and Coding system, known as the Harmonized System. The national customs law lays down the rates of duty levied under each heading ( bearing the 9 digits numbering ( xxxx xx xxx ). Variations of rates depending upon Government s import export policy, relief to specific commodities or industries, country of origin and preferential treatment of bilateral trade agreements. Government enforcement on prohibitions and restrictions on the movement of certain types of goods in and out of the country. The maintenance of the security of the country, public order and standards of decency, morality and prevention of smuggling. 6. Determination of the Valuation of Goods based on the Brussels Definition of Value ( BDV ). The GATT Valuation Code replacement. The basic principle of the transaction value. A presupposed of the sale taken place in the open market. Explaining the Free Open Market (FOM) pricing principle. Explanation of Import cargo lodged into Inland Clearance Depot ( ICD ). The liability of the shipping line, agent or forwarder. The clearance of goods from the ICD basing on the basis of the Bill of Entry. Explanation of Export Cargo received from Inland Clearance Depot ( ICD ). The customs classification and assessment issues. The customs examination and customs supervision factors. 7. Customs Duty Exemption and Remission Guidelines. The conditions of goods imported are pilfered, damaged, destroyed, deteriorated. The customs liability and responsibility on willful act. The default of the cargo owner. The abandonment of goods by owner and relinquishment of title to the goods. Refund of Customs Duty subject to the authorized party and stipulated period after payment of duty. The tenability of the refund subject to the level of assessment. Customs Duty Drawback is the re-payment of duty or rebate on duty. The payment of duty drawback subject to terms and conditions of the period of re-export, the extend of drawback, the mode of payment and the procedure for claiming the drawback.

4 8. Proper Preparation and Presentation of Customs Declaration Forms as the most important aspect of the import export operations. The required particulars relating to persons, relating to transport, relating to goods, relating to assessment of duties and relating to supporting documents. The factors of Essential Endorsement on declaration forms. In reference to duty exemption, disputed classification, disputed valuation, refund and drawback claims, temporary importation, temporary exportation. The conditions of Offences and Penalties of the Customs Act. In reference to untrue or incorrect documents, counterfeit or falsified documents, fraudulent alteration of documents, failing or refusing to produce required documents by customs. 9. Discrepancy Issues in Import Export Customs Declaration. Analyzing the consequence of the Invoice submitted to customs which shows customs tariff code, value under declared from transit point, non contracted third parties, N.O.S. or N.E.S. status of goods, un-necessary trading contract reference number. The Bill of Lading freight amount does not tally with other documents. The impact of freight shown as agreed or as arranged. Declared value for customs and carrier is highlighted. The practice of switched B/L is used without caution. Incomplete or inappropriate description of goods shown. Payment of goods and freight charges is done partially or in advance. Goods originated from two or more country of origin. The currency transacted differs from the currency contracted. The terms of sale and the terms of shipment differs. No itemized Incoterms shown. Who Should Attend Executives and Managers in the Supply Chain and Logistics, Finance and Costing, Sales and Marketing, Planning and Ordering Departments are encouraged to attend.

5 The Trainer Mr Stephen Kum Mr Stephen Kum (MBA, USA) is a fellow of The Institute of Freight Association (UK), The Institute of Logistics & Transport (UK), The Institute of Business Administration (UK), Professional member of Global Logistics Supply Chain Alliance and former Vice Chairman of Persatuan Logistik Selangor. He has more than 28 years of hands-on experience in the fields of international trade, global procurement, freight management and logistics supply chain management. His consultancy expertise relates to Incoterms execution, trade documentation, suppliers management and logistics and supply chain strategy. He was the Managing Director of an international logistics service provider with regional offices in UK, USA, Australia and Asia. Held various senior positions as Country Manager of Esprit Shipping (HK), Sales Director with Karl Schroff Associate (US) and Regional Manager with Port Cargo International (UK) Associated with Cambridge International College as their Training Consultant, Program Examiner with Durham Logistics College and Resident Consultant with TPL Global Chains Management. He has been involved in corporate training and consultancy since 2002 for manufacturers, multinational companies, trade associations, trade and tourism divisions of foreign embassies. Developed various shipping programs for Institute Technology Multimedia and Sentral City Institute. Developed post graduate programs in logistics for Camden University and export management for Metropolitan University.

6 Management of Incoterms and Date: February 2013 Duration: 2 days Venue: Empire Hotel Subang Fee: [ ] RM 1,350 for D&B Subscriber / D&B Affiliate [ ] RM 1,550 for Non-subscriber (Include material, refreshments and lunch) Company Information Name of Company: Address: EARLY BIRD Submit your registration before 21 st January 2013 to receive a 10% off usual fee GROUP REGISTRATION Send 2 or more participants to enjoy a 10% off usual fee Completed registration form and fax to or to Krisna.Tjong@dnb.com.my Telephone: Contact Person: Fax: Participant s Profile Name 1: Name 2: Name 3: Payment Information [ ] D&B subscription units (Subscriber ID: ) [ ] *Cheque. Please made payable to: Dun & Bradstreet (D&B) Malaysia Sdn Bhd Bank: Cheque No: Registration Terms & Conditions 1. A seat will be reserved upon receipt of completed registration form, and confirmation of seat upon payment received 2. A substitute participant is welcome at no charge should you not be able to attend. Please provide the necessary details. Only cancellation made 20 working days before commencement is entitled to full refund of seminar charges. No refund thereafter including no show during day of event. A complete set of materials will however be sent to you. 3. For D&B subscribers opting to pay through D&B subscription units, deductions would be made upon receipt of completed registration form. In the event of any postponement/cancellation of seminar by D&B, or withdrawal from seminar by participant(s), unit deducted would not be credited. However, a replacement of seminar (of same value) would be given and to be utilized within 6 months. 4. D&B reserves the right to postpone or cancel the seminar for reasons whatsoever. In such a case, D&B will provide full refund to registrants who have made Cheque payment towards the event and such registrants shall have no claims against the company. 5. D&B reserves the right to change venue due to unforeseen circumstances. 6. D&B shall not be responsible for any additional expenses incurred by any participant(s) in the course of attending the program. I, the undersigned, have read and understood the Registration Policy and accept the terms contained therein. Name of Authorized Signatory: Company Stamp: Designation: Signature:

Shipping Elements & Import Export Documentation

Malaysian International Chamber of Commerce and Industry (16841-V) TRAINING PROGRAMME Shipping Elements & Import Export Documentation 5-6 October 2015 9.00 a.m - 5.00 p.m Sime Darby Convention Centre The