A Basic Guide to Exporting-Chapter 12-Shipping Your Product

7/27/2019 A Basic Guide to Exporting-Chapter 12-Shipping Your Product

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Shipping Your producti ts cae

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The hurdles you have to clear dont end with the sale and the Web site. You still have to

get the goods to the buyer, who is oten located thousands o miles away where dier-

ent rules may apply. When shipping a product overseas, you must be aware o pack-

ing, labeling, documentation, and insurance requirements and regulations. Make sure

that the merchandise is

Paced correctly so that it arrives in ood condition

Labeled correctly to ensure that the oods are handled properly and arrive on time at the

right place

Documented correctly to meet U.S. and forein overnment requirements, as well as proper

collection standards

Insured aainst damae, loss, pilferae, and delay

Because o the multitude o considerations involved in physically eporting goods,

eporters oten receive assistance rom their air carrier or reight orwarder to perorm those

services.

Freight Forwarders

An international reight orwarder is an agent or moving cargo to an overseas destination.

These agents are amiliar with the import rules and regulations o oreign countries, the eport

reulations of the U.S. overnment, the methods of shippin, and the documents related to for-

ein trade. Freiht forwarders are licensed by the International Air Transport Association (IATA)

to handle air reight and the Federal Maritime Commission to handle ocean reight.


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Freight orwarders assist eporters in preparing price quotations by advising on

reight costs, port charges, consular ees, costs o special documentation, insurance costs,

and the reight orwarders own handling ees. They recommend the packing methods thatwill protect the merchandise during transit, or they can arrange to have the merchandise

paced at the port or put in containers. If the eporter prefers, freiht forwarders can reserve

the necessary space on a vessel, aircrat, train, or truck. The cost or their services is a actor

that should be included in the price charged to the customer.

Once the order is ready or shipment, reight orwarders should review all docu-

ments to ensure that everything is in order. This review is o particular importance with

letter-o-credit payment terms. Freight orwarders may also prepare the bill o lading and

any special required documentation. Ater shipment, they can route the documents to the

seller, the buyer, or a paying bank. Freight orwarders can also make arrangements with

customs brokers overseas to ensure that the goods comply with customs import documen-

tation regulations. A customs brokeris an individual or company that is licensed to trans-

act customs business on behal o others. Customs business is limited to those activities

involving transactions related to the entry and admissibility o merchandise; its classication

and valuation; the payment o duties, taes, or other charges assessed or collected; and the

reund, rebate, or drawback o those charges.

For more inormation, visit the National Customs Brokers and Freight Forwarders

Association o America at http://ncbaa.org.

Packing

Your company should be aware o the demands that international shipping puts on pack-

aged goods. You should also keep our potential problems in mind when designing an

eport shipping crate: breakage, moisture, pilerage, and ecess weight.

Buyers are oten amiliar with the port systems overseas, so they will sometimes

specify pacain requirements. If the buyer does not provide such specications, be sure

the goods are prepared using these guidelines:

Pac in stron containers that are adequately sealed and lled when possible.

Mae sure the weiht is evenly distributed to provide proper bracin in the container,

regardless o size.

Put oods on pallets and, when possible, place them in containers.

Mae pacaes and pacin ller out of moisture-resistant material. To avoid pilferae, avoid writin contents or brand names on pacaes.

Use straps, seals, and shrin-wrap to safeuard oods.

Observe any product-specic haardous materials pacin requirements.


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Verify compliance with wood-pacain documentation and marins for fumiation and

chemical treatment.

One popular method o shipment is to use containers obtained rom carriers orprivate leasing companies. These containers vary in size, material, and construction. They

accommodate most cargo but are best suited or standard package sizes and shapes. Also,

refrierated and liquid-bul containers are usually readily available. Some containers are no

more than semitrailers lited o their wheels, placed on a vessel at the port o eport, and

then transerred to another set o wheels at the port o import.

Normally, air shipments require less heavy packing than ocean shipments, though

they should still be adequately protected, especially if they are liely to attract pilferae. In

many instances, standard domestic packing is acceptable i the product is durable and there

is no concern for display pacain. In other instances, hih-test (at least 250 pounds per

square inch) cardboard or tri-wall construction boes are preferable.Finally, transportation costs are determined by volume and weiht. Specially rein-

orced and lightweight packing materials have been developed or eporting to minimize vol-

ume and weight while reinorcing the packaging. The proper materials may save money as well

as ensure that the goods are properly packed. You should hire a proessional rm to pack the

products i you are not equipped to do so. This service is usually provided at a moderate cost.

LabeLing

Specic marin and labelin are used on eport shippin cartons and containers. This

labeling

Meets shippin reulations

Ensures proper handlin

Conceals the identity of the contents

Helps receivers identify shipments

Ensures compliance with environmental and safety standards

The overseas buyer usually species which eport marks should appear on the

caro for easy identication by receivers. Products may require many marins for ship-

ment. For eample, eporters need to put the ollowing markings on cartons to be shipped:

Shippers mar

Country of oriin (in your case, U.S.A.)

Weiht marin (in pounds and ilorams)

Number of pacaes and sie of cases (in inches and centimeters)

Handlin mars (i.e., international pictorial symbols)


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Cautionary marins, such as This Side Up or Use No Hoos (in Enlish and in the

lanuae of the destination country)

Port of entry

Labels for haardous materials (i.e., universal symbols adopted by the International Air

Transport Association and the International Maritime Oraniation)

Inredients (if applicable, also included in the lanuae of the destination country)

documentation

Your company should seriously consider having the reight orwarder handle the docu-

mentation that eporting requires. Forwarders are specialists in this process. The ollowing

documents are commonly used in eporting, but which o them are necessary in a particular

transaction depends on the requirements of the U.S. overnment and the overnment of the

importing country:

Air freiht shipments are covered by air waybills, which can never be made in negotiable

form (see Sample Form 12.1).

A bill o ladingis a contract between the owner of the oods and the carrier (as with

domestic shipments). For shipment by vessel, there are two types: a straiht bill of ladin,

which is not negotiable and does not give title to the goods, and a negotiable, or shippers

order, bill o lading. The latter can be bought, sold, or traded while the goods are in transit.

The customer usually needs an original bill o lading as proo o ownership to take posses-

sion of the oods. See Sample Form 12.2 for an eample of a straiht bill of ladin short form

and Sample Form 12.3 for an eample of a liner bill of ladin.

A commercial invoiceis a bill for the oods from the seller to the buyer (Sample Form

12.4). Many overnments use commercial invoices to determine the true value of oods

when assessing customs duties. Governments that use the commercial invoice to control

imports will oten speciy the invoices orm, content, number o copies, language to be used,

and other characteristics.

A consular invoice, a required document in some countries, describes the shipment o

goods and shows inormation such as the consignor, consignee, and value o the shipment.

Certied by the consular ocial o the oreign country, it is used by the countrys customs

ocials to veriy the value, quantity, and nature o the shipment.

A certifcate o origin, also a required document in certain nations, is a signed statement asto the oriin of the eport item (Sample Form 12.5). Certicates of oriin are usually vali-

dated by a semiocial organization, such as a local chamber o commerce. A certicate may

be required even if the commercial invoice contains the same information. See Bo 12.1 for

more inormation about certicates o origin.


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A NAFTA certifcate o originis required or products traded among the signatory countries

of the North American Free Trade Areement (Canada, Meico, and the United States) if the

goods are NAFTA qualied and the importer is claiming zero-duty preerence under NAFTA.

An inspection certifcationis required by some purchasers and countries to attest to thespecications o the goods shipped. The inspection is usually perormed by a third party,

oten an independent testing organization.

A dock receiptand a warehouse receiptare used to transer accountability when the

domestic carrier moves the eport item to the port o embarkation and leaves it with the ship-

ping line or eport.

A destination control statementappears on the commercial invoice and on the air waybill

or bill o lading to notiy the carrier and all oreign parties that the item can be eported only

to certain destinations.

A shippers export declaration(SED) is used to control eports and is a source document

for official U.S. eport statistics. SEDs, or their electronic equivalent, are required for ship-

ments when the value of the commodities, classified under any sinle Schedule B number

(the four-diit U.S. etension to the si-diit code under the Harmonied Tariff Systemsee

Bo 12.2), eceeds $2,500. SEDs must be prepared and submitted for all shipments, reard-

less o value, that require an eport license or are destined or countries restricted by the

Eport Administration Reulations (see Chapter 10). SEDs are prepared by the eporter or

the eporters aent and are delivered to the eportin carrier (e.., the post office, airline,

or vessel line). The eportin carrier will present the required number of copies to the U.S.

Customs Service at the port of eport. Sample Form 12.6 is an eample of the reformatted

SED, whose use became mandatory on July 18, 2003. The U.S. Census Bureaus Forein

Trade Division is the controllin aency for this document. The bureau made electronicfilin of the SED mandatory on September 1, 2008, usin AESDirect. AESDirect is a Web-

based application that is available to eporters free of chare. It permits the SED to be filed

electronically. You can obtain more information on reisterin as an AESDirect filer and all

iling options at www.aesdirect.gov. Often, the SED is prepared as a by-product of another

BOx 12.1 A WORD ON CERTIFICATES OF ORIgIN

Speciic certiicates o origin are sometimesrequired or countries involved in special tradeagreements, such as the North American FreeTrade Agreement (NAFTA), which was signed byCanada, Mexico, and the United States.

For instance, the NAFTA certiicate o originvalidates that a good originated in a NAFTAcountry and is eligible or the preerential dutyrate. The U.S.Israel Free Trade Area also hasits own certiicate o origin.


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document, the shippers letter of instructions (see Sample Form 12.7).

An export licenseis a government document that authorizes the eport o specic goods

in specic quantities to a particular destination. This document may be required or most

or all eports to some countries. For other countries, it may be required only under special

circumstances.

An export packing listis considerably more detailed and inormative than a standard

domestic pacin list. It itemies the material in each pacae and indicates the type of pac-

ae, such as a bo, crate, drum, or carton. It also shows the individual net, tare, and ross

weihts and measurements for each pacae (in both U.S. and metric systems). Pacae

markings should be shown along with reerences to identiy the shipment. The shipper or or-

warding agent uses the list to determine the total shipment weight and volume and whether

the correct caro is bein shipped. In addition, U.S. and forein customs ofcials may use the

list to chec the caro (see Sample Form 12.8).

An insurance certifcateis used to assure the consignee that insurance will cover the loss o

or damae to the caro durin transit (see Sample Form 12.9).

Documentation must be precise because sliht discrepancies or omissions may

prevent merchandise rom being eported, may result in non-payment, or may even result

in the seiure of the eporters oods by U.S. or forein customs ofcials. Collection docu-

ments are subject to precise time limits and may not be honored by a bank i the time has

epired. Most documentation is routine or reight orwarders and customs brokers, but asthe eporter, you are ultimately responsible or the accuracy o the necessary documents.

The number and kinds o documents that the eporter must deal with vary according

to the destination o the shipment. Because each country has dierent import regulations,

the eporter must be careul to provide all proper documentation. The ollowing sources also

The World Customs Organization developed theHarmonized System (HS) to describe products orcustoms purposes. The HS is recognized by 179countries, customs bureaus, or economic unions,representing 98 percent o world trade.

hoW it WorkS

Six-digit codes are assigned that representgeneral categories o goods. Countries that use

HS numbers are allowed to dene commoditiesat a more detailed level but must harmonize therst six digits to the HS ramework.

WhAt thiS mEAnS or You

Using these codes ensures that customs ocialsare reerring to the same item when classiying

the product and applying the tari rate.

BOx 12.2 THE HARMONIzED SYSTEM


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provide inormation pertaining to oreign import restrictions:

Eport Assistance Centersnd listins for ofces in Appendi B and at www.export.gov/eac.

Trade Information Centercall (800) USA-TRADE (800-872-8723) or visit www.export.gov/

exportbasics/ticredirect.asp.

Forein overnment embassies and consulates in the United Stateso online to www.

state.gov.

shiPPing

The handlin of transportation is similar for domestic and eport orders. Eport mars are

added to the standard inormation on a domestic bill o lading. These marks show the name

of the eportin carrier and the latest allowed arrival date at the port of eport. Instructions

or the inland carrier to notiy the international reight orwarder by telephone on arrival

should also be included. You may nd it useul to consult with a reight orwarder to deter-

mine the method o international shipping. Because carriers are oten used or large and

bulky shipments, you can reserve space on the carrier well beore actual shipment date.

This reservation is called the booking contract.

International shipments are increasinly made on a bill of ladin under a multi-

modal contract. The multimodal transit operator (frequently one of the transporters) taes

charge o and responsibility or the entire movement rom actory to nal destination.

The cost o the shipment, delivery schedule, and accessibility to the shipped product

by the oreign buyer are all actors to consider when determining the method o international

shipping. Although air carriers may be more epensive, their cost may be oset by lower

domestic shippin costs (e.., usin a local airport instead of a coastal seaport) and quicerdelivery times. These factors may ive the U.S. eporter an ede over other competitors.

Beore shipping, your rm should check with the oreign buyer about the destination

o the goods. Buyers may want the goods to be shipped to a ree trade zone or a ree port,

where they are eempt from import duties (see Chapter 10).

insurance

Damain weather conditions, rouh handlin by carriers, and other common haards to

caro mae insurance an important protection for U.S. eporters. If the terms of sale mae

you responsible or insurance, your company should either obtain its own policy or insure

the caro under a freiht forwarders policy for a fee. If the terms of sale mae the foreinbuyer responsible, you should not assume (or even tae the buyers word) that adequate

insurance has been obtained. If the buyer nelects to obtain adequate coverae, damae to

the cargo may cause a major nancial loss to your company.


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Shipments by sea are covered by marine caro insurance. Air shipments may also

be covered by marine cargo insurance, or insurance may be purchased rom the air carrier.

Eport shipments are usually covered by caro insurance aainst loss, damae, and delayin transit. International areements often limit carrier liability. Additionally, the coverae is

substantially dierent rom domestic coverage. Arrangements or insurance may be made

by either the buyer or the seller in accordance with the terms of sale. Eporters are advised

to consult with international insurance carriers or reight orwarders or more inormation.

Although sellers and buyers can agree to dierent components, coverage is usually placed at

110 percent of the CIF (cost, insurance, freiht) or CIP (carriae and insurance paid to) value.

tariFFs

Because taris, port handling ees, and taes can be high, it is very important or you to

consider their eects on your products nal cost. Typically, the importer pays the taris.

Nevertheless, these costs will infuence how much the buyer is willing to pay or your

product.

major shiPPers

International shippin companies have become an ecellent resource for eporters. In

addition to transporting bulk reight, they now oer assistance with shipping documenta-

tion, warehousing in the oreign market, andin some casespayment collection rom the

oreign buyer.


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SAMPLE FORM 12.1 AIR WAYBILL

Handling Information

Airport of Destination

Airport of Departure (Addr. of first Carrier) and requested Routing

Consignee's Name and Address Consignee's Account Number

Shipper's Name and Address Shipper's Account Number

House Air Waybill Number

Not negotiable

Air Waybill(Air Consignment note)Issued by

Copies 1, 2 and 3 of this Air Waybill are originals and have the same validity

It is agreed that the goods described herein are accepted in apparent good order and condition (exceptas noted) for carriage SUBJECT TO THE CONDITIONS OF CONTRACT ON THE REVERSEHEREOF. THE SHIPPER'S ATTENTION IS DRAWN TO THE NOTICE CONCERNING CARRIERS'LIMITATION OF LIABILITY. Shipper may increase such limitation of liability by declaring a higher valuefor carriage and paying a supplemental charge if required.

These commodities licensed by the United States for ultimate destination

Diversion contrary to

United States law prohibited.

To By first Carrier Routing and Destination Air Waybill Number

Flight/Date Flight/DateFor Carrier Use only

Currency CHGS

Code

WT/VAL OtherPPD COLL PPD COLL

Declared Value for Carriage Declared Value for Customs

Amount of Insurance

Shipper certifies that the particulars on the face hereof are correct and that insofar as any p art ofthe consignment contains dangerous goods, such part is properly described by name and is inproper condition for carriage by air according to the applicable Dangerous Goods Regulations.

No. ofPiecesRCP

GrossWeight

kglb Commodity

Item No.

Rate ClassChargeable

Weight

Rate

Charge

TotalNature and Quantity of Goods(incl. Dimensions or Volume)

Weight Charge CollectPrepaid Other Charges

Valuation Charge

Tax

Total other Charges Due Agent

Total other Charges Due Carrier

Total prepaid Total collect

Currency Conversion Rates cc charges in Dest. Currency

House Air Waybill Number

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Signature of Shipper or his Agent

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Executed on (Date) at (Place) Signature of Issuing Carrier or its Agent

2001 UNZ & CO.

INSURANCE: If Carrier offers insurance and such insurance is requested in accor-

dance with conditions on reverse hereof, indicate amount to be insured in figures in

box marked amount of insurance.

Form No. 16-810 Printed and Sold by 201 Circle Drive N, Suite 104, Piscataway, NJ 08854 (800) 631-3098 www.unzco.com

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Source: Un & Co.


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SAMPLE FORM 12.2 STRAIgHT BILL OF LADINg

146

Source: Un & Co.


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1. Se (). Enter the company

name and address o the shipper(consignor).

2. p (a). Enter the city and

state o the actual shipping point.

3. dae se. Enter the date o

the shipment (the date the carrier took

control o the merchandise).

4. t e. Check the truck

box i shipment is to move by truck.

Check the reight box i the shipment

is to move by rail.

5. Ses be. Enter a unique

control number to reerence the ship-ment with the carrier.

6. cae. Enter the name o the com-

pany that will take initial control o the

shipment and cause its delivery to the

consignee.

7. Aes be. Enter the carriers

control number, i known or required.

8. cse . Enter the ull name o

the nal recipient o the shipment (the

ultimate consignee). Also enter the

mailing address o the ultimate con-

signee, i dierent rom the destination,

or carrier notication purposes.

9. desa. Enter the street

address, city, and postal code where

the carrier will make del ivery to the

consignee in Field 8.

10. re. I applicable, enter the route

the carrier will take to the consignee.

This eld may also be used to speciy

docks, warehouses, and so orth and to

speciy any intermediate carriers.

11. delve ae. I applicable,

speciy the carrier that will deliver the

shipment to the ultimate consignee

at the destination, but only i dierent

rom the carrier entered in Field 6.

12. Vele a al be.

Enter any vehicle identiying initials or

numbers, i applicable.

13. nbe aaes. Enter the

total number o packages per line item.

I the packages are consolidated on

a pallet or in an outer container, notethis inormation on a second line (or

example, 112 pkgs. 3 pall.).

14. des se. Enter the

description o each line item, noting

the type o package (carton, bar-

rel, etc.) and quantity per package.

Because correct reight classication

is essential in describing an item, there

must be a separate line item or each

reight classication description. I

more than one type o packaging is

used per reight classication, a sepa-

rate entry must be used or each type.

Enter any special package markings,

special handling requirements, and

delivery instructions. For hazardous

material items, special provisions must

be met in completing this eld.

15. We. Enter the total gross

weight, in pounds, or each line item.

For bulk shipments, the tare and net

weights should also be reerenced

in the description eld. For package

shipments, include the weights o pal-

lets and skids. The total weight o the

merchandise should be shown ater

the last line item, with pallet and dun-

nage weights shown separately.

16. class ae. Enter either the ve-

digit class (per the Uniorm Freight Clas-

sication or the National Motor Freight

Classication) or a two-digit class rate

(a percentage o the rst-class 100 rate)

per line item. This inormation may be

determined by contacting the carrier.

17. W ese saee. Per

standard bill o lading terms, the

shipper is ultimately liable or reight

charges, even when the shipment

is sent on a collect basis to the

consignee. By signing this state-ment, the shipper is released rom the

liability o reight charges or collect

shipments delivered by the carrier to

the consignee without the carriers col-

lecting the reight charges. For prepaid

shipments, leave blank.

18. pea ses. Enter To Be

Prepaid i shipment is to be paid or bythe shipper. I this eld is let blank, the

carrier will seek to collect the charges

rom the consignee (see Field 17).

19. peayes eeve. The car-

riers agent will enter any payments

received in advance rom the shipper

or the shipment.

20. caes avae. The carriers

agent will enter any charges advanced

or the shipment, i applicable.

21. c.o.d. se. First, check the

box indicating whether the reight

charges are prepaid (the carrier billsthe shipper) or collect (the carrier

deducts the reight charges rom the

amount collected rom the consignee).

Second, enter the amount to be col-

lected or the merchandise itselbe

sure to include the reight charges.

Third, enter any collection ees appli-

cable. Then enter total charges to be

collected by carrier.

22. Se elae vale. When the

weight charged by the carrier depends

on the value o the shipment, the dollar

value per unit o measure (e.g., $100.00/

pound) must be stated by the shipper.Enter this inormation in Field 14.

23. Se. Enter the company name

o the shipper.

24. Ses ae. Enter the signature

o the individual preparing the ship-

ment or the shipper.

25. caes ae. The carriers agent

will sign here beore taking control o

the shipment.

26. peae aess. Enter the

permanent (business) mailing address

o the shipper. This inormation may bethe same as or Field 1.

27. cefa. A signature is

required by the U.S. Department o

Transportation ater this statement or

all shipments o hazardous material.

147

instructions For samPLe Form 12.2, straight biLL oF Lading


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SAMPLE FORM 12.3 LINER BILL OF LADINg

BIMCO LINER BILL OF LADINGCODE NAME: CONLINEBILL 2000

Amended January 1950; August 1952; January 1973;

July 1974; August 1976; January 1978; November 2000.

B/L No. Reference No.

Vessel

Port of loading

Consignee (full style and address) or Order

Shipper (full style and address)

Page 1

Notify Party (full style and address)

Container No. /Seal No. /Marks and Numbers Numbers and kind of packages; descr iption of cargo Gross weight , kg

Total number of Containers/Packages or units received by the Carrier

Shippers declared value Declared value charge

Date shipped on boardCarriers name/principal place of business

Signature

................................................................................................................ Carrier

................................................................................................................ as Master

................................................................................................................ as Agents

or, for the Carrier

*As defined hereinafter (Cl.1)

**Applicable only when pre-/on-carriage is arranged in accordance with Clause 8

Copyright,publishedby

TheBalticandInternationalMaritimeCouncil

(BIMCO),Copenhagen,2000

(Masters name/signature)

(Agents name/signature)

Number of original Bills of Laiding

Pre-carriage by**

Place of receipt by pre-carrier**

Place of delivery by on-carrier**

Place and date of issue

Freight details and charges

Measurement, m3

Port of discharge

PARTICULARS DECLARED BY THE SHIPPER BUT NOT ACKNOWLEDGED BY THE CARRIER

SHIPPED on board in apparent good order and condition (unless otherwise stated

herein) the total number of Containers/Packages or Units indicated in the Box

opposite entitled Total number of Containers/Packages or Units received by the

Carrier and the cargo as specified above, weight, measure, marks, numbers,

quality, contents and value unknown, for carriage to the Port of discharge or so

near thereunto as the vessel may safely get and lie always afloat, to be delivered

in the like good order and condition at the Port of discharge unto the lawful holderof the Bill of Laiding, on payment of freight as indicated to the right plus other

charges incurred in accordance with the provisions contained in this Bill of Laiding.

In accepting this Bill of Laiding the Merchant* expressly accepts and agrees to all

its stipulations on both Page 1 and Page 2, whether written, printed, stamped or

otherwise incorporated, as fully as if they were all signed by the Merchant.

One original Bill of Laiding must be surrendered duly endorsed in exchange for the

cargo or delivery order, whereupon all other Bills of Laiding to be void.

IN WITNESS whereof the Carrier, Master or their Agent has signed the number of

original Bills of Laiding stated below right, all of this tenor and date.

Form 35-121 Printed and Sold by 201 Circle Drive N, Piscataway, NJ 08854(800) 631-3098 www.unzco.com

Source: Un & Co.

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SAMPLE FORM 12.4 COMMERCIAL INVOICE

COMMERCIAL INVOICE

SELLER: INVOICE No. DATE

DATECUSTOMER REFERENCE No.

TERMS OF SALE

TERMS OF PAYMENT

CURRENCY OF SETTLEMENT

MODE OF SHIPMENT BILL OF LAIDING / AWB

SOLD TO:

QTY

PACKAGE MARKS: TOTAL COMMERCIAL VALUE:

TOTAL INVOICE VALUE:

(SIGNED)

TITLE:

I certify that the stated export prices and description ofgoods are true and correct:

MISC. CHARGES: (packing, insurance, etc.)

CERTIFICATIONS:

DESCRIPTION UNIT OFMEASURE

UNITPRICE

TOTALPRICE

SHIP TO (if different than Sold To):

Form No. 10-327 Printed and Sold by 201 Circle Drive N, Suite 104, Piscataway, NJ 08854 (800) 631-3098 www.unzco.com Copyright 2001 Unz & Co.

1

2

3

8

9

6

7

15

16

12

4

17

1110

5

13

14

Source: Un & Co.

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instructions For samPLe Form 12.4, commerciaL invoice

1. Selle. Enter the name and address

o the principal party responsible or

eecting export rom the United States

(i.e., the exporter as named on the

export license).

2. Sl . Enter the name and address

o the person or company to which the

goods are shipped or the designated

end use, or the party so designated on

the export license.

3. S ( ee a sl ).

Enter the intermediate consignee

that is , the name and address o

the party that eects delivery o the

merchandise to the ultimate con-signee, or the party so named on the

export license or orwarding agent

(i.e., the name and address o the duly

authorized orwarder acting as agent

or the exporter).

4. ive be. Enter the invoice

number assigned by the exporter.

5. cse eeee be. Enter

the overseas customers reerence or

order number.

6. tes sale. Enter the delivery and

payment terms o the sales agreement.

7. tes aye. Describe the

terms and conditions as agreed upon

by the seller and buyer per the pro

orma invoice, customer purchase

order, or the letter o credit.

8. cey selee. Enter the

currency agreed upon by seller and

buyer as payment.

9. me se. Indicate air,

ocean, or surace.

10. Qay. Record the total number

o units per description line.

11. des. Provide a ull descrip-

tion o the items shipped; the type ocontainer (carton, box, pack, etc.); the

gross weight per container; and the

quantity and unit o measure o the

merchandise.

12. u ease. Record the total

net weight and total gross weight

(includes weight o container) in kilo-

grams per description line.

13. u e a al e. Record

the uni t price o the merchandise

per the unit o measure. Compute the

extended total value o the line.

14. tal eal vale. Compute

the total value o the invoice.

15. paae as. Record in this eld,

as well as on each package, the pack-

age number (or example, 1 o 7, 3

o 7, etc.); shippers company name;

country o origin (or example, Made

in U.S.A.); destination port o entry;

package weight in kilograms; package

size (length width height); and ship-

pers control number (optional).

16. msellaes aes. Record

any miscellaneous charges that are

to be paid by the customer, such as

export transportation, insurance,export packaging, and inland reight

to pier.

17. cefas. Enter any certica-

tions or declarations required o the

shipper regarding any inormation

recorded on the commercial invoice.


16/26

151

SAMPLE FORM 12.5 CERTIFICATE OF ORIgIN

Copyright 1998 UNZ & CO.

SHIPPER/EXPORTER COMMERCIAL INVOICE NO.

CERTIFICATE OF ORIGIN

DATE

CUSTOMER PURCHASE ORDER NO. B/L, AWB NO.

COUNTRY OG ORIGIN DATE OF EXPORT

EXPORT REFERENCES

AIR/OCEAN PORT OF EMBARKATION

EXPORTING CARRIER/ROUTE

CONSIGNEE

NOTIFY: INTERMEDIATE CONSIGNEE

FORWARDING AGENT

QUANTITY

PACKAGE MARKS:

The undersigned

The

State of

of the merchandise, and, according to the best of its knowledge and belief, finds that the products named originated in the United States of America.

, has examined the manufacturers invoice or shippers affidavit concerning the origin

, a recognized Chamber of Commerce under the laws of the

the goods as described above were shipped on the above date and consigned as indicated and are products of the United States of America.

Dated at

Sworn to before me this

on the day of

day of

Secretary

20

20

SIGNATURE OF OWNER OR AGENT

(Owner or Agent), does hereby declare for the above named shipper,

NET WT.(Kilos)

GROSS WT.(Kilos)

DESCRIPTION OF MERCHANDISE

FormNo.19-906PrintedandS

oldby

201CircleDriveN,Suite104,Piscataway,NJ

08854

(800)631-3098

www.unzco.com

1

2

3

8 9

67

15 16

12

4

17

18

19

11

10

20

21

22

5

13 14

Source: Un & Co.

151


17/26

152

instructions For samPLe Form 12.5, certiFicate oF origin

1. Se exe. Enter the name

and address o the principal party

responsible or eecting export rom

the Uni ted States.

2. csee. Enter the name and

address o the party receiving the

merchandise.

3. ny: eeae see.

Enter the name and address o the

party in a oreign country that eects

the del ivery o the merchandise.

4. wa ae. Enter the name

and address o the reight orwarder.

5. ceal ve be. Enterthe number assigned by the exporter.

6. cse ase e be.

Enter the number assigned by the

exporter.

7. Bll la a waybll be.

Enter the number provided by the

reight orwarder or carrier.

8. cy . Enter the actual

country o origin o the goods.

9. dae ex. Enter the date o

actual export rom the United States.

10. Ex eeees. Include anyspecial reerence numbers assigned by

the exporter.

11. A ea ebaa.

Enter the port rom which the goods

are shipped.

12. Ex ae a e. Enter

the name o the air carrier or vessel

and fight number or voyage number.

13. Qay. Enter the total number o

packages, cartons, boxes, skids, and

so orth, per description line.

14. ne we. Enter the total weight

o all packages per description line,

excluding the outer packaging but

including inner packaging, in kilo-

grams.

15. gss we. Enter the total weight

o all packages, including the shipping

container, outer packaging, and inner

packaging, in kilograms.

16. des ease. Fully

describe the items shipped, type o

container, gross weight per container,

and unit o measure o the merchan-

dise. Cross-reerences to purchase

order or commercial invoice numbers

may be included.

17. paae as. Describe the

marks recorded on each package, usu-

ally including shippers company name;

country o origin (or example, Made

in U.S.A.); destination port o entry;

and customers company name. They

may also include a shippers control

number and the customers import

license number. Number reers to

the numbering o the packages in the

shipment (or example, 1 o 30, 2 o

30, etc.).

18. te ese. Enter the name o

the individual complet ing and signing

the certicate (see Field 20). The signer

may be the exporter or an agent o the

exporter.

19. dae. Enter the date on which the

certicate o origin was prepared andsigned.

20. Sae. The owner, employee,

or agent appearing in Field 18 should

sign here.

21. cabe ee. Enter the

name o the local chamber o com-

merce (and state) certiying the origin

o the merchandise.

22. Seeay. The authorized signature

o the local chamber o commerce

secretary and that organizations seal

should be added here.


18/26

153

SAMPLE FORM 12.6 SHIPPERS ExPORT DECLARATION

FORM7525-V(7-18-2003) OMB No. 0607-0152U.S. DEPARTMENT OF COMMERCE Economics and Statistics Administration U.S. CENSUS BUREAU BUREAU OF EX PORT ADMINISTRATION

SHIPPERS EXPORT DECLARATION

1a. U.S. PRINCIPAL PARTY IN INTEREST (USPPI)(Complete name and address)

b. USPPIS EIN (IRS) OR ID NO. c. PARTIES TO TRANSACTION

4a. ULTIMATE CONSIGNEE

b. INTERMEDIATE CONSIGNEE

5a. FORWARDING AGENT (Complete name and address)

8. LOADING PIER (Vessel only)

10. EXPORTING CARRIER

12. PORT OF UNLOADING (Vessel and air only)

9. METHOD OF TRANSPORTATION (Specify)

11. PORT OF EXPORT

13. CONTAINERIZED (Vessel only)

2. DATE OF EXPORTATION 3. TRANSPORTATION REFERENCE NO.

6. POINT (STATE) OF ORIGIN OR FTZ NO. 7. COUNTRY OF ULTIMATE DESTINATION

14. CARRIER IDENTIFICATION CODE 15. SHIPMENT REFERENCE NO.

16. ENTRY NUMBER 17. HAZARDOUS MATERIALS

18. IN BOND CODE 19. ROUTED EXPORT TRANSACTION

Related Non-related

Yes No Yes No

Yes No

20. SCHEDULE B DESCRIPTION OF COMMODITIES (Use columns 2224)

)42()32()22()12(

D/For M

SCHEDULE B NUMBERQUANTITY

SCHEDULE B UNIT(S)SHIPPING WEIGHT

(Kilograms)

(25)

VIN/PRODUCT NUMBER/VEHICLE TITLE NUMBER

(26)

VALUE (U.S. dollars,omit cents)

(Selling price or cost if notsold)

27. LICENSE NO./LICENSE EXCEPTION SYMBOL/AUTHORIZATION 28. ECCN (When required)

29. Duly authorized officer or employee The USPPI authorizes the forwarder named above toact as forwarding agent for export control andcustoms purposes.

I certify that all statements made and all information contained herein are true and correct and that I have readand understand the instructions for preparation of this document, set forth in the "Correct Way to Fill Outthe Shippers Export Declaration." I understand that civil and criminal penalties, including forfeiture andsale, may be imposed for making false or fraudulent statements herein, failing to provide the requestedinformation or for violation of U.S. laws on exportation (13 U.S.C. Sec. 305; 22 U.S.C. Sec. 401; 18 U.S.C. Sec.1001; 50 U.S.C. App. 2410).

30.

Signature

Title

Date

Telephone No. (Include Area Code)

31. AUTHENTICATION (When required)

E-mail address

Confidential Shippers Export Declarations (or any successordocument) wherever located, shall be exempt from public disclosure unlessthe Secretary determines that such exemption would be contrary to thenational interest (Title 13, Chapter 9, Section 301 (g)).

Export shipments are subject to inspection by U.S. Customs Serviceand/or Office of Export Enforcement.

This form may be printed by private parties provided it conforms to the official form. For sale by the Superintendent of Documents, GovernmentPrinting Office, Washington, DC 20402, and local Customs District Directors. The "Correct Way to Fill Out the Shippers ExportDeclaration" is available from the U.S. Census Bureau, Washington, DC 20233.

(Complete name and address)


5b. FORWARDING AGENTS EIN (IRS) NO.

ZIP CODE

Source: U.S. Department of Commerce.

153


19/26

154

SAMPLE FORM 12.7 SHIPPERS LETTER OF INSTRUCTIONS

1a. U.S. PRINCIPAL PARTY IN INTEREST (USPPI)(Complete name and address)

b. USPPIS EIN (IRS) OR ID NO. c. PARTIES TO TRANSACTION

4a. ULTIMATE CONSIGNEE

b. INTERMEDIATE CONSIGNEE

5a. FORWARDING AGENT (Complete name and address)

8. LOADING PIER (Vessel only)

10. EXPORTING CARRIER

12. PORT OF UNLOADING (Vessel and air only)

9. METHOD OF TRANSPORTATION (Specify)

11. PORT OF EXPORT

13. CONTAINERIZED (Vessel only)

2. DATE OF EXPORTATION

INLAND CARRIER

SHIP VIA

AIR OCEAN

SHIPPERS LETTER

OF INSTRUCTIONS

CONSOLIDATE DIRECT

SPECIAL INSTRUCTIONS

SHIP DATE PRO NO.

3. TRANSPORTATION REFERENCE NO.

6. POINT (STATE) OF ORIGIN OR FTZ NO. 7. COUNTRY OF ULTIMATE DESTINATION

14. CARRIER IDENTIFICATION CODE 15. SHIPMENT REFERENCE NO.

16. ENTRY NUMBER 17. HAZARDOUS MATERIALS

18. IN BOND CODE 19. ROUTED EXPORT TRANSACTION

Related Non-related

Yes No Yes No

Yes No

20. SCHEDULE B DESCRIPTION OF COMMODITIES (Use columns 2224)

)42()32()22()12(

D/For M

SCHEDULE B NUMBERQUANTITY

SCHEDULE B UNIT(S)SHIPPING WEIGHT

(Kilograms)

(25)

VIN/PRODUCT NUMBER/VEHICLE TITLE NUMBER

(26)

VALUE (U.S. dollars,omit cents)

(Selling price or cost if notsold)

27. LICENSE NO./LICENSE EXCEPTION SYMBOL/AUTHORIZATION 28. ECCN SHIPPER MUST CHECK

C.O.D. AMOUNT $

SHIPPERS INSTRUCTIONS IN CASE OF INABILITY

TO DELIVER CONSIGNMENT AS CONSIGNED:

ABANDON

DELIVER TO

BE SURE TO PICK UP TOP SHEET AND SIGN THE FIRST

BUFF EXPORT DECLARATION WITH PEN & INK.

SHIPPERS REQUESTS INSURANCE

YesIf Shipper has requested insurance as provided for at the left hereof, shipmentis insured in the amount indicated (recovery is liited to actual loss) in accor-dance with the provisions as specified in the Carriers Tariffs. Insurance is pay-able to Shipper unless payee is designated in writing by the shipper.

$ No

RETURN TO SHIPPER

PREPAID ORCOLLECT

(When required)

29. Duly authorized officer or employee The USPPI authorizes the forwarder named above toact as forwarding agent for export control andcustoms purposes.

I certify that all statements made and all information contained herein are true and correct and that I have readand understand the instructions for preparation of this document, set forth in the "Correct Way to Fill Outthe Shippers Export Declaration." I understand that civil and criminal penalties, including forfeiture andsale, may be imposed for making false or fraudulent statements herein, failing to provide the requestedinformation or for violation of U.S. laws on exportation (13 U.S.C. Sec. 305; 22 U.S.C. Sec. 401; 18 U.S.C. Sec.1001; 50 U.S.C. App. 2410).

30.

Signature

Title

Date

Telephone No. (Include Area Code)

31. AUTHENTICATION (When required)

E-mail address

Confidential Shippers Export Declarations (or any successordocument) wherever located, shall be exempt from public disclosure unlessthe Secretary determines that such exemption would be contrary to the

national interest (Title 13, Chapter 9, Section 301 (g)).

Export shipments are subject to inspection by U.S. Customs Serviceand/or Office of Export Enforcement.



5b. FORWARDING AGENTS EIN (IRS) NO.

ZIP CODE

Form 19-305 Printe d and Sold by 201 Circle Drive N, Suite 104, Piscataway, NJ 08854

(800) 631-3098 www.unzco.com

34

5 6

7

8

9

10 11

2

1

14

15 16

17 18

19 20

21 22

13

12

25 26

27

28 29 31

2423

30

32 33 34

35

36 37

38

Source: Un & Co.


20/26

155

1(a). u.S. al ay ees

(uSppi). Provide the name and address

o the USPPI. The USPPI is the person

in the United States that receives the

primary benet, monetary or otherwise,

o the export transaction. Generally

that person is the U.S. seller, manu-

acturer, order party, or oreign entity.

The oreign entity must be listed as the

USPPI i in the United States when the

items are purchased or obtained or

export. Report only the rst ve digits

o the ZIP code.

1(b). uSppis elye efabe (Ein) id be. Enter the

USPPIs Internal Revenue Service EIN,

or Social Security Number (SSN) i no

EIN has been assigned.

1(). paes asa. Indicate

i this is a related or non-related party

transaction. A related party transac-

tion is a transaction between a USPPI

and a oreign consignee (or example,

a parent company or sister company),

where there is at least 10 percent

ownership o each by the same U.S. or

oreign person or business enterprise.

2. ila ae. I you have shipped

this material to the United States by

inland carrier, provide the inland car-

riers name, shipping date, and receipt

or progressive number (pro. no.), i

available.

3. dae exa. Enter the date

on which the merchandise is sched-

uled to leave the United States or all

methods o transportation. I the actual

date is not known, report the best

estimate o departure. The date ormat

should be MM/DD/YYYY.

4. tasa eeee be.Report the booking number or ocean

shipments. The booking number is the

reservation number assigned by the

carrier to hold space on the vessel

or the cargo being shipped. For air

shipments, the air waybill number

must be reported. For other methods o

transportation, leave blank.

5. S va a ea. Indicate the

mode o shipment.

6. cslae e s. Indi-

cate how the orwarder is to instruct

the carrier to ship the goods.

7. ulae see. Enter the

name and address o the oreign party

actually receiving the merchandise or

the designated end use or the party

so designated on the export license.

For overland shipments to Mexico,also include the Mexican state in the

address.

8. ieeae see. Enter

the name and address o the party

in a oreign country that delivers the

merchandise to the ultimate consignee

or the party so named on the export

license.

9. wa ae. Enter the name

and address o the orwarding or other

agent authorized by a principal party

in interest.

10. wa aes Ein idbe. Enter the orwarding agents

Internal Revenue Service EIN. Ender

the nine-digit numerical code as

reported on the latest employers

quarterly ederal tax return (Treasury

Form 941).

11. p (sae) e-

ae ze (tZ) be. I rom

an FTZ, enter the FTZ number or

exports; otherwise enter the two-digit

U.S. Postal Service abbreviation o

the state in which the merchandise

actually starts its journey to the port

o export, the state o the commodityo the greatest value, or the state o

consolidation.

12. cy lae esa.

Enter the country in which the mer-

chandise is to be consumed, urther

processed, or manuactured; the nal

country o destination as known to the

exporter at the time o shipment; or

the country o ultimate destination as

shown on the export license. Two-digit

(alpha character) International Organi-

zation or Standardization (ISO) codes

may also be used.

13. La e. For vessel shipments

only, enter the number or name o the

pier at which the merchandise is laden

aboard the exporting vessel.

14. me asa. Enter the

method o transportation by which themerchandise is exported (or exits the

border o the United States). Speciy

the method by name, such as vessel,

air, rail, or truck.

15. Ex ae. Enter the name o

the carrier transporting the merchan-

dise out o the United States. For

vessel shipments, give the name o the

vessel.

16. p ex. For overland ship-

ments, enter the name o the U.S. Cus-

toms port at which the surace carrier

(truck or railcar) crosses the border.

For vessel and air shipments, enter thename o the U.S. Customs port where

the merchandise is loaded on the

carrier (airplane or ocean vessel) that

is taking the merchandise out o the

United States. For postal shipments,

enter the U.S. post oce rom which

the merchandise is mailed.

17. p la. For vessel

shipments between the United States

and oreign countries, enter the

oreign port and country at which the

merchandise will be unloaded rom the

exporting earner. For vessel and air

shipments between the United Statesand Puerto Rico, enter the Schedule C

code, U.S. Customs District and Port

Code.

155

instructions For samPLe Form 12.7,

shiPPers Letter oF instructions


21/26

156

18. caeze a. For vessel

shipments only, check the Yes box

or cargo originally booked as contain-

erized cargo and or cargo that hasbeen placed in containers at the vessel

operators option.

19. cae efa e. For

vessel, rail, and truck shipments, enter

the our-character Standard Carrier

Alpha Code (SCAC) o the carrier.

For air shipments, enter the two- or

three-character International Air

Transport Association (IATA) code o

the carrier. In a consolidated shipment,

i the ultimate carrier is unknown, the

consolidators carrier ID code may be

reported.

20. Se eeee be. Enterthe unique reerence number assigned

by the ler o the Shippers Export

Declaration (or SED; see Sample Form

12.6) or identication purposes. This

shipment reerence number must be

unique or ve years.

21. Ey be. Enter the import entry

number when the export transaction

is used as proo o export or import

transactions such as in-bond, tempo-

rary import bond, drawbacks, and so

orth. Also, an entry number is required

or merchandise that is entered as an

import (CF 7501 or Automated Broker

Interace entries) and is then exported

out o the United States.

22. hazas aeals. Check the

appropriate Yes or No indicator

that identies the shipment as hazard-

ous as dened by the U.S. Department

o Transportation.

23. i-b e. Report one o the

two-character in-bond codes listed in

Part IV o Appendix C o the Foreign

Trade Statistics Regulations (15 CFR

Part 30) to indicate whether the ship-

ment is being transported under bond.

24. re ex asa. Check

the appropriate Yes or No indica-

tor that identies the transaction as

a routed export transaction. A routedexport transaction is one in which

the oreign principal party in interest

authorizes a U.S. orwarding or other

agent to export the merchandise out o

the Uni ted States.

25. d (es), (e),

m (e lay sales). Domestic

exports (D) consist o merchandise that

is grown, produced, or manuactured in

the Uni ted States (including imported

merchandise that has been enhanced

in value or changed rom the orm in

which imported by urther manuacture

or processing in the United States).Foreign exports (F) consist o merchan-

dise that has entered the United States

and is being reexported in the same

condition as when imported. Foreign

military sales (M) consist o exports o

merchandise that are sold under the

oreign military sales program.

26. Sele B be. Enter the

commercial description o the com-

modity being exported and the 10-digit

commodity number as provided by the

Census Bureau in Schedule B, Sta-

tistical Classication o Domestic and

Foreign Commodities Exported rom theUnited States.

27. Sele B es -

es. Use columns 2224 to enter

the commercial descript ion o the com-

modity being exported, its Schedule

B number, the quantity in Schedule B

units, and the shipping weight in kilo-

grams. Enter a sucient description o

the commodity as to permit verication

o the Schedule B commodity number

or the commodity description as shown

on the validated export license. Include

marks, numbers, or other identica-

tion shown on the packages and thenumbers and kinds o packages (boxes,

barrels, baskets, etc.).

28. Qay (Sele B s). Report

whole units as specied in the Sched-

ule B commodity classication code.

Report also the unit specied on theexport license i the units dier.

29. S we. For all methods

o transportation, enter the gross

shipping weight in kilograms or each

Schedule B number, including the

weight o containers, but excluding

carrier equipment.

30. Vele efa be (Vin)

be, a vele le

be. Report the ollowing items

o inormation or used sel-propelled

vehicles as dened in Customs regula-

tions 19 CFR 192.1: (a) the unique VIN

in the proper ormat, or the productidentication number (PIN) or those

used sel-propelled vehicles or which

there are no VINs, and (b) the vehicle

title number.

31. Vale (u.S. llas). Enter the

selling priceor, i not sold, cost

including reight, insurance, and other

charges to U.S. port o export, but

excluding unconditional discounts and

commissions (nearest whole dollar;

omit cents). The value to be reported

on the SED is the USPPIs priceor, i

not sold, costto the oreign principal

party in interest. Report one value or

each Schedule B number.

32. Lese be, lese exe

sybl, a aza. Whenever

an SED or Automated Export System

(AES) record is required, do the

ollowing:

(a) Enter the license number on the

SED or AES record when you are

exporting under the authority o a

Department o the Treasury, Oce o

Foreign Assets Control (OFAC) license

(enter either the general or specic

OFAC license number); a Departmento Justice, Drug Enorcement Agency

(DEA) permit; or any other export

license number issued by a ederal

government agency. Export inormation

or items identied on the Commerce

Departments Commerce Control List

156


22/26

157

(CCL) or the State Department, Oce o

Deense Trade Controls, U.S. Munitions

List, must be led through the AES.

(b) Enter the correct license exception

symbol (or example, LVS, GBS, or CIV)

on the SED or AES record when you

are exporting under the authority o a

license exception. See 740.1, 740.2,

and 758.1 o the Export Administration

Regulations (EAR) or an explanation o

the LVS, GBS, and CIV symbols .

(c) Enter the no license required

(NLR) designator when you are export-

ing items under the NLR provisions o

the EAR and the items being exported

are subject to the EAR but are not

listed on the CCL (that is, items that areclassied as EAR99).

33. Ex cl classfa

nbe (Eccn). Whenever an SED or

AES record is required, you must enter

the correct ECCN on the SED or AES

record or all exports authorized under

a license or license exception, as well

as items being exported under the NLR

provisions o the EAR that are listed

on the CCL and that are controlled or

reasons other than antiterrorism.

34. Se s e ea

lle. This eld species whether

the shipper (prepaid) or the consignee(collect) will pay reight charges. I

the shipment is to be paid or C.O.D. by

the consignee, speciy amount in the

C.O.D. Amount eld.

35. dly aze fe

elyee. Provide the signature

o the USPPI authorizing the named

orwarding or agent to eect the

export when that agent does not have

a ormal power o attorney or written

authorization.

36. Sae a efa.

Provide the signature o the USPPI or

authorized orwarding or other agent

certiying the truth and accuracy o theinormation on the SED, the title o the

USPPI or authorized agent, the date

o signature, the telephone number

o the USPPI or authorized agent who

prepared the SED and can best answer

questions regarding the SED, and the

e-mail address o the USPPI or autho-

rized agent.

37. Ses ss. This eld

instructs the orwarder how to dispose

o the shipment in the event it proves to

be undeliverable abroad.

38. isae. Use this eld when

insurance is required and the shipperwishes to use an insurer chosen by the

orwarder. The amount insured is usu-

ally 110 percent o the shipment value.

157


23/26

158

SAMPLE FORM 12.8 ExPORT PACkINg LIST

PACKING LIST

19

Place and Date of Shipment

To

Gentlemen:

Under your Order No. ___________________________________________________________ the material listed below

was shipped via

To

Shipment consists of:

CasesPackages

CratesCartons

Bbls.Drums

Packages

Cartons

Drums

Reels

Marks

* LEGAL WEIGHT IS WEIGHT OF ARTICLE PLUS PAPER, BOX, BOTTLE, ETC., CONTAINING THE ARTICLE AS USUALLY CARRIED IN STOCK.

PACKAGENUMBER

GROSSWEIGHT

EACH

*LEGALWEIGHT

EACH

NETWEIGHT

EACHHEIGHT WIDTH LENGTH

QUANTITY

WEIGHTS IN LBS. or KILOSDIMENSIONSCLEARLY STATE CONTENTS

OF EACH PACKAGE

Form No. 30-036 Printed and Sold by 201 Circle Drive N, Suite 104, Piscataway, NJ 08854 (800) 631-3098 www.unzco.com

Copyright 2001 Unz & Co.

Source: Un & Co.

158


24/26

159

SAMPLE FORM 12.9 INSURANCE CERTIFICATE

ORIGINAL OPEN POLICY NO. CERTIFICATE NO.

A2310 2952305

FOREMANS FUND INSURANCE COMPANYSAN FRANCISCO, CALIFORNIA

ATLANTIC DIVISION, 110 WILLIAM STREETNEW YORK, NEW YORK 10038

The company named above in consideration of premium in the amount of and at rates as arranged and subject to the Conditions and Warranties specified and/or attached hereto, does by this

policy insure

$ 125,000.000

ASSURED Metalworking Machines, Inc.

as well in their own name as in that of those to whomsoever the subject matter of this Policy does, may, or shall appertain.

IN THE SUM OF One hundred twenty-five thousand and 00/100---------------------------------

UPON steel grinders with accessories CONTAINER-HOUSE/HOUSECONTAINER-PORT/PORTCONTAINER-OTHERNON-CONTAINER

VALUED AT SUM OR SUMS INSURED

LADEN (UNDER DECK) ON BOARD THE VESSEL/AIRLINE: S/L Adventurer(LOST OR NOT LOST) ATAND FROM (INITIAL POINT/PORT): Interior USA via Baltimore

LOSS IF ANY PAYABLE TO THE ORDER OF THE ASSURED AT: destination

B/L OR SAILING DATE: 9-30-2006TO (FINAL POINT/PORT): Taipei Taiwan via Kaoshiung

Insured against all risks of physical loss or damage from any external cause irrespective of percentage, but excluding the risks excluded by the F.C.&S. and/or S.R.&C.C. warranties on the

reverse side of this policy except to the extent that such risks may be specifically covered by endorsement also warranted free from any claim arising out of the inherent price of the goods insured or

consequent upon loss of time or market.

This insurance attaches from the time the goods leave the warehouse at the place named in the policy for the commencement of the transit and continues during the ordinary course of transit

until the goods are delivered to the final warehouse at the destination named in the policy.

It is a condition of this insurance that there shall be no interruption or suspension of transit unless due to circumstances beyond the control of the Assured.

The risks covered by this policy include loss, damage, or expense resulting from explosion howsoever or wheresoever occurring, irrespective of percentage, but it is especially understood and

agreed that this wording is not intended to cover any of the risks excluded by the F.C.&S. and/or S.R.&C.C. Warranties set forth elsewhere in the policy.

In the event of the vessel, wharf, warehouse, conveyance, or other cargo being fumigated by order of property constituted authority and damage arises therefrom to the goods insured hereunder,

this Company agrees to indemnify the Assured for such damage irrespective of percentage.

General Average and Salvage Charges payable according to United States laws and usage and/or as per Foreign Statement and/or as per York-Antwerp Rules (as prescribed in whole or in part)

in accordance with the Contract of Affreightment.

In cases of any loss or misfortune, it shall be lawful and necessary for the Assured, his or their factors, servants and assigns, to sue, labor, and travel for, in, and about the defense, safeguard,

and recovery of the interest insured, or any part thereof, without prejudice to this insurance; to the charges whereof this Company shall contribute according to the rate and quantity of the sum hereby

insured; nor shall the acts of the Assured or the Company in recovering, saving, or preserving the property insured, in case of disaster, be considered as a waiver or acceptance of abandonment.

In case of any agreement, act, or omission of the Assured, prior or subsequent to loss, whereby any right of recovery of the Assured for loss or damage to any property insured hereunder against

any Carrier or Bailee, is released, impaired, or lost, which would on acceptance of abandonment or payment of loss by this Company have inured to its benefit, but for such agreement, act, or omission,

this Company shall pay for the loss only to the extent its right of recovery was not released, impaired, or lost.

This insurance is subject to the American Institute Marine Extension Clauses (1943) and the following American Institute Clauses as if the current form of each were

endorsed hereon:ecnarusnIksiRraWtnemesrodnE.C.C&.R.SesualCyaD-06aciremAhtuoS

It is hereby understood and agreed that in case of loss and damage to the property insured under this policy, same shall be immediately reported as soon as the goods are landed, or the loss is

known or expected, to the nearest agent of this Company as designated on the reverse side hereof.

(See reverse side for further terms and conditions which are hereby made a part of this Policy.)

NOTEIt is necessary for the assured to give prompt notice to underwriters when he becomes aware of an event for which he is held covered under this policy and the right to such cover is

dependent on compliance with this obligation.

In witness whereof the company named above has caused this policy to be signed by its duty authorized officers, but this policy shall not be valid unless countersigned by an authorized repre-

sentative of this Company or the Assured.

Secretary President

Endorsement Counteragreed at Baltimore MD 9-30-2006Date

159

Source: U.S. Department of Commerce.


25/26

160

c A S E S t u d Y :

thE compAnY

Did you have a strenuous and tiring

work week? Then maybe you could usesome nutritional supplements. Certied

Worldwide LLC (CW) has made health

and nutrition its business. Hal Selim,

director o business development or CW,

says his companys success doesnt just

hinge on the more than 10,000 products

and 500 lines o over-the-counter

medicines, vitamins, supplements, and

sports nutrition; it also depends on great

worldwide customer service.

Located in Moorpark, Caliornia,CW started in 1999 with sales to

distributors and to online customers in

the United States through its e-commerce

Web site (www.medicalprovisions.

com). CW then began to pursue

international opportunities by identiying

overseas distributors who could help

streamline the selling process abroad.

We recognized that by not exporting,

we were not tapping our ull sales

potentialsort o like leaving money onthe table, says Selim.

thE chALLEngE

Equipped with reight orwarders and

potential overseas buyers, Selim ocused

his attention on making export sales

a reality. He soon began learning the

ins and outs o import regulations ororeign countries and Food and Drug

Administration (FDA) export certication

issues, such as obtaining the health

certicates that many oreign countries

require or health-related products.

Addressing these issues was key to

navigating the export process.

Selling health-related products in

the international market also requires

extensive market and economic research.

Each market has its own consumer tastesand ways o doing business. For example,

in Asia, people might want joint pain and

muscle relie, whereas in other countries,

people might have heart-related needs.

To supplement his marketing strategy,

Selim tracked down specic inormation

on health industries in Europe, the Far

East, the Middle East, and other regions.

When you think about the docu-

mentation required and other areas

where we needed assistance, it wassort o daunting as to where we would

begin, Selim says. But we knew

through our business acquaintances that

we could count on the U.S. Commercial

Service to help.

thE SoLution

During his initial meeting with Selim,

Gerald Vaughn, director o the U.S. ExportAssistance Center in Ventura, set up a

plan to assist CW. First, Vaughn contacted

key Commercial Service trade specialists

on the Health Care Technologies Team.

Tony Michalski and Julieanne Hennessy

were amiliar with FDA and could connect

with the right people. Next, Vaughn

gained insight into the FDA approval

process. Shortly thereater, Vaughn

contacted the Commercial Services

health care trade specialists overseasand discussed certicate issues, thus

laying the oundation or obtaining the

required health documents. Vaughn then

introduced Selim to the Commercial

Services Country Commercial Guides,

which provide detailed market research

on dierent industries and countries.

Without the experience and

on-the-ground support o the U.S.

Commercial Service, we would not have

surpassed the export challenges that wemet early on when we began exporting,

Selim says. Had we tried this on our

own, we would not be as well positioned

in international markets as we are today.

keepin the World Healthy

cee Wlwe LLcc A S E S t u d Y :

We recognized that by not exporting, we were not tapping our

full sales potentialsort of like leaving money on the table.

Hal Selim, director o business development, Certied Worldwide, LLC


26/26

LESSonS LEArnEd

Early on, CW learned that the best

way to build a good business is to get

background inormation on potential

distributors beorehand. CW receives

payment up ront in the orm o bankwire transer or letter o credit. A typical

scenario is to receive a 30 percent

deposit when the customer places the

order and the remaining 70 percent

balance beore shipping the order.

Getting paid is a key part to running

a business, and unless a company has

the right payment polic ies in place, that

company is more likely to be subjected

to payment scams, says Selim.

CW also learned that the cost o

reight can make or break a deal. Selim

has worked extensively on building key

relationships with reight orwarders.

His eorts have resulted in great air and

ocean rates or customers. CWs reight

orwarders can ship almost anywhere.

Seek out your local Commercial Service

oce, contact and interview dierent

reight orwarders, and remember that

the company chosen will be responsible

or shipping your product, says

Selim. Airlines are a great source or

nding reight orwarders. Their cargo

departments work directly with reight

orwarders and can recommend which

ones to use or the product line. Also,

Selim advises, depending on the size o

the shipment, reight damage and thet

insurance is vital.

The more business you give your

reight orwarder, the more valuable

you become. As shipments grow, you

can set up agreements to obtain better

rates. Also, you can shop or competitive

rates. I you nd a better rate than what

you already have, see i your reight

orwarder can match it. Your customer

overseas may also be able to nd a better

rate. The better the rate, the better

the savings or your customer, which

translates into more business in the

uture, says Selim.

Selim says the ollowing elements

are crucial in an export operation:

Large selection o competitively priced

products

Fresh products with a long expiration

date

Continuous promotions and discounts

Competitive reight charges

Quick lead time or shipments

Thorough product inspection beore

shipping

Quick response to customer demands

or additional documentation

Quick response to new customer

inquiries and ollow-up ater delivery

Feasibility studies are vital as you

develop overseas markets. When

conducting the

study, address

actors such as

market size, market

growth, accessibility,competition, business

practices, and

economic stability.

Exporting overseas

has introduced CW to

many dierent cultures,

business practices, and

legal systems and has

made CWs management

team more fexible and

creative.

Action

Are you ready to promote your product

in other countries? Here are some tips:

Bl a w y ses.

Smaller orders will build rapport

and give you a eel or the market.

Orders will increase as your company

progresses.

paae ae sws. Trade

shows are one o the best ways to

generate trade leads. Walk the show

foor and observe exhibitors and

buyersand ater attending a ew

shows, you might be ready to set up

an exhibit o your own and pursue new

market opportunities, Selim advises.

tae avaae seas. Selim says

that seminars are where businesses

can learn the rules, regulations, and

policies associated with export controls,

nancing, customs, and other issues.

HalSelimisdirectorof

businessdevelopment

for

CertiedWorldwideLL

C.BasedinMoorpark,

California,

thecompanyisamajo

rdistributorandexpo

rterofvita-

mins,supplements,an

dover-the-counterme

dicines.