Drew Andersen JJ Cavanaugh Gary Patterson Matthew Petrovich

Import Process of BMW 335i

Drew AndersenJJ Cavanaugh

Gary PattersonMatthew Petrovich

Part of BMW’s 3 Series 3.0 Liter, Twin Power, Turbocharged

6-cylinder engine 300 Horsepower Car & Drivers 10Best 19 years running

BMW 335i SedanOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Overview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Route Transportation Carriers

◦ DTC Transport Logistics◦ Wallenius Wilhelmsen Logistics◦ National Transport, LLC

Total Cost - $48,329.00 or €36,827.00

Major Facts and figures

Import ProcessOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

335 I leaves BMW Plant-Dingolfing, Germany

Car is loaded on Inland Freight carrier

(DTC Transport Logistics)

Car is unloaded at port of export (Bremerhaven,

Germany)

Car is loaded on to the ocean carrier (Wallenius-

Wilhelmsen Logistics Oberon)

Car is unloaded at port of destination

(Brunswick, Georgia, USA)

Car must clear customs at the port before loading

Car is loaded on domestic inland freight carrier after

clearing customs(National Transport LLC)

Car is delivered to Critz BMW. Savannah, Georgia

Customer receives car at dealership.

Letter of CreditGoods

Contract

Application

Documents

Letter of Credit

Documents

Documents

Letter of

Credit

Overview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

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Letter of CreditOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Based in Germany One of Top 10 auto manufacturers in

the world Core competencies

◦ Innovation◦ High performance◦ Engineering

Critz BMW◦ Based in Savannah◦ Serves Savannah, St. Simon’s, Statesboro,

Brunswick, Hinesville, and Claxton areas.

BMWOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Deutsche Transport Company

◦ Based in Bamberg, Germany

◦ Delivers to 35 European Countries

72 Routes

◦ Handle Intermodal, Warehousing, Customs

Clearance and Logistics Consultation

Foreign Inland TransportOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Dingolfing, Germany to Bremerhaven, Germany

Factory to Port RouteOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

7 ½ Hours or 825 km

Once in Bremerhaven, shipment is inspected and loaded onto RO-RO carrier

Export DocumentsOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Bill of Lading Certificate of Inspection


Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Certificate of Origin

Commercial Invoice


Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Packing List

Wallenius Wilhelmsen Logistics

◦ Intermodal transportation company

◦ Specializes in the shipment of automobiles,

agricultural and construction equipment.

◦ Ship 2-3 million vehicles annually

◦ Also handles all vehicle processing, terminal

procedures, and distribution to retailers.

Ocean TransportOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Bremerhaven, Germany ToBrunswick, Georgia

Port to PortOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Lead time for shipping is 19 days

Once arriving in Brunswick, shipment must clear customs inspection

National Transport LLC

◦ Specializes in automotive transportation

◦ Offers open/enclosed trailers for vehicle

transportation

Domestic Inland Transport

Overview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Port to Dealership RouteBrunswick, Georgia to Savannah, Georgia

Lead time is 1 ½ Hours or 78 miles

Once shipment arrives in Savannah, issuing bank pays advising bank which pays BMW Group.

Overview

Flow of Goods/

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Cost Analysis

and Payment

Liquidation

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Breakdown of CostsOverview

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Cost Analysis

and Payment

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Cost Price Form of Payment

BMW 335i base cost

€28,125.45 L/C

Insurance €562.50 Cash

Sales Tax (German)

€4781.33 Cash

Duties (FAS) $984.38 Cash

Domestic Inland Transport (US)

$345 Cash

Foreign Inland Transport (DEU)

€247.60 Cash

Ocean Carriage €719.10 Cash

Total Vehicle Cost

$48,329 or €36,827

Forward Market Hedge was used.

Savings = $352 by choosing the spot rate and exercising the option on an option contract.

Currency HedgingOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

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Vehicle Price (€)

Exchange Rate Vehicle Price ($)

€28,125.00 Oct 16 (Spot) - $1.3976/€

$39,375.00

€28,125.00 Jan 14 (Forward) - $1.4125/€

$39,727.00

Used Harmonized Tariff Schedule Germany is a general column 1 trade

country The vehicle falls under heading

8703.23.00◦ 2.5% of vehicle cost (FAS) is due for duty

paid Total Duties: (39,375 x .025)= $984.38

Duties PaidOverview

Flow of Goods/

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Cost Analysis

and Payment

Liquidation

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Harmonized Tariff Schedule

Overview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

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Customs ClearanceOverview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

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Bill of Lading Certificate of Origin


Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Certificate of Inspection Import Declaration


Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

EPA Declaration

Commercial Invoice


Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Inward Cargo Manifest

Packing List


Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Surety Bond

Inward Cargo Declaration

BMW 335i leaves Dingolfing, Germany

to Bremerhaven, Germany

BMW travels on RORO from

Bremerhaven to Brunswick, GA

BMW goes through US Customs process

Car is transported from Brunswick to

Critz BMW in Savannah, GA

Payment is transferred from issuing bank to advising bank.

Summary Overview

Flow of Goods/

Documents

Cost Analysis

and Payment

Liquidation

Summary

Questions??