See the Classification HTS , Import Requirements & Restrictions for your product.
Build into your project, and speak to some of these requirements/restrictions.
See attached Product Specs with picture, HTS, duty impact, antidumping (if applicable), any other types of restrictions or tariffs such as Section 201, 232, 301 from certain countries like China. These fees/duties will impact your Landed Cost Calculation and reasoning around FTZ/CBW and duty drawback when considering the 20% that is for exports distribution.
Attached Please use this as exhibits on your project.
Logistics Project Challenge Case Overview
Section 1 – Your Current Operations Today
Your current operations has 6 import/exports coordinators/specialists, an Import/Exports manager and you as a director.
Your operations handle approximately 75 – 40 HC shipments a week
Your current Imports value is $230 Million per year.
You own and operate a Domestic Distribution warehouse for Dry goods that is 250,000 square feet, modern facility and runs 2 shifts Monday thru Friday. Working at 75% capacity. You are located in Miami and have 105 Dock Doors.
Most of your cargo is ocean containerized imports and comes palletized and ready for distribution in the U.S. with some re-exports to preferred distributors in Caribbean and Central and South Americas.
You are currently Buying FOB, CFR and some DAP shipments via Port Of Miami, you have little or no air shipments.
You are using Expeditors International as your Customs Broker.
You do not use any customs bonded warehouses nor FTZ operations.
The exported merchandise which has landed duty paid fees are claim under duty drawback within 6 months after exportation.
All imports merchandise is intended for sale to US Customs (80% and the other 20% intended for Re-Exports customers or License Distributors in Latin America.
The U.S. distribution merchandise is of high priority and must be made available within a few days are importation to our clients if we expect another similar order in the next quarter.
You have ocean freight contracts with Maersk & NYK for certain lanes in Asia and also have contract rates with Expeditors International & Panalpina.
Section 2 – New Logistics Regulatory Project (Acquisition)
Your Senior Management has informed you as Director of Logistics & Compliance that within 6 months you will acquire a new company in a similar industry.
You will undertake a new logistics acquisition project that requires importing
New Product Line: ____
Product Restrictions (Tariff/Non-Tariff- To be determined)
New Imported Volume is estimated 50 containers weekly (In 40/45-Footer containers per week)
Approx Value is $50,000 – $75,000 per container. (Approx $130 million to $150 million per year).
Incoterms are to be determined (TBD) on new negotiations based on the consolidation of current and new volumes.
The new acquisition has a similar model with 80% imports for domestic distribution in the U.S. and about 20% for re-exports to the Americas as well as other regions.
Ocean Liner/NVOCC/OFF selection – TBD
New Acquisition has contract with APL & LF Logistics.
Ocean Freight Rates to be negotiated
Customs Broker being used by the acquisition is CH Robinson
The acquired company is local in Miami, but leases space which is about to expired within a year and can be negotiated. It is intended that you will not extend the lease, but move all merchandise to be handled by your current facility and will consider expansion, 3 shifts and working 7 days a week to take on the new volumes.
The new acquisition has 4 individuals within the import/exports team that will be remaining on board to join your logistics department.
Duty rate will be reviewed by origin & any Free Trade Agreement qualifications.
Currently there are NO antidumping/Countervailing fees.
You will consider the acquisition of a logistics technology improvements for logistics import/exports operations (such as self-filing, SED/EEI, FTZ, Drawback, ISF and others) to automate the Trade documentation and make landed cost calculations, have access to a single source Regulatory Compliance regulations, Harmonized Code Tables (HTSUS) and myriads of other PGA information, as well as traceability (tracking) and communicating with Vendors/Brokers/Forwarders, Carriers and terminals and customs.