Upcoming Webinar: Building an Export Management Program
American Shipper is hosting an upcoming webinar, “Building an Export Management and Compliance Program.” Sponsored by Management Dynamics (in partnership with BPE), the webinar will take place on July 28th at 2 pm ET. The hour-long round table discussion will include the following expert panelists:
- Beth Peterson, President of BPE
- Joe Burks, Director of Trade Compliance for Cooper Industries
- Nathan Pieri, VP of Product Development and Marketing for Management Dynamics
These experts will discuss best practices for developing your company’s Export Management and Compliance Programs, including:
- Strategic value of your EMCP
- The core elements of an effective EMCP
- The steps required to build an EMCP
- Sharing your strategy with your C-level superiors
Learn how your company can implement processes and systems that ensure compliance with the Export Administration Regulations (EAR). Best of all – it’s FREE! Sign up today.
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Big Retailers, Wal-Mart and Tesco Go Above and Beyond For India
What are your corporate strategies during the recession and afterwards? According to ABC News, large retailers, such as Wal-Mart, Tesco and Carrefour, it is to merge into the Indian market…but for what price?
The poor infrastructure, vast regional differences and laws limiting foreign firms to cash-and-carry wholesale outlets and franchise tie-ups with local partners in the $450 billion retail market, it’s been a challenge all three large retailers have agreed to take. Since the recession has begun and Westerners are slow to pick-up their spending, these retailers believe it’s crucial to expand into the Indian marketplace.
“The supply chain is one of the big challenges,” Raj Jain, chief of Wal-Mart India. “We are willing to invest whatever it takes in the supply chain, the back-end. But that in itself won’t deliver all the efficiencies,” he said, arguing for fully opening up the sector.
Carrefour also struggles to maintain it’s supply chain.
“There are many, many layers, with commission agents, wholesale markets, distribution agents which increase time to market and costs,” said Yannick Douville, a Carrefour director.
Even the wealtiest of the world’s top retailer, India is a challenging market to step into because of things such as tiny farms and differential policies and taxes in every state.
ABC News gave a example of what the retailers are doing to ensure quality and accuracy in their supply chain and business plan. In the village of Haider Nagar in Punjab state, where Wal-Mart sources vegetables such as cauliflower and gourd, the retailer built toilets to prevent soil contamination, and teaches farmers about transplanting and nutrient management and the use of low-cost innovations to get a higher, better yield.
Recently, the government unveiled concessional duties and tax exemptions for refrigeration units and allowed external commercial borrowings for cold storage facilities.
But, is it enough to invest?
“Unless there is a big front-end no one’s going to invest billions of dollars in a cold chain or supply chain just to sell to some mom-and-pop stores,” said Technopak’s Singhal.
New Management Dynamics, FTZ Corp. Partnership to Save Companies Millions
Management Dynamics and FTZ Corporation Announce Strategic Partnership
Alliance will Integrate and Expand the Use of Foreign Trade Zones in Global Trade Management
EAST RUTHERFORD, NJ, May 12, 2010 – Management Dynamics, a leading provider of Global Trade Management solutions, today announced a strategic partnership with FTZ Corporation, a leading provider of Foreign-Trade Zone consulting services and developer of the SmartZone Premier application. The partnership seeks to expand the use of foreign-trade zones integrated with core Global Trade Management (GTM) processes of import, export and trade agreement management.
Foreign-Trade Zones have been in use for nearly seventy six years with the passage of the Foreign-Trade Zones Act of 1934 to expedite and encourage foreign commerce. Foreign-Trade Zones are now a key component of U.S. trade policy and offer companies several opportunities to reduce costs with:
- Exemption of duty payment upon re-export of goods
- Relief from inverted tariffs where raw materials with high duty rates can be transformed to an end product with a low duty rate
- Use of consolidated weekly entries to reduce merchandise processing fees (MPFs)
- Deferral of duty on any inventory stored within an FTZ
For many companies these benefits can justify the investment in a Foreign-Trade Zone in the first year of operation.
“Foreign-trade zones are becoming an integral part of a company’s GTM strategy and their use is expanding given the strong value proposition and fast pay back,” said Craig Pool, President, FTZ Corporation. “Our customers are looking to integrate foreign-trade zones across their GTM processes and we look forward to working with Management Dynamics to deliver this solution.”
FTZ Corporation has extensive experience, having implemented over two hundred and fifty Foreign-Trade Zone projects. The company is also active in Washington D.C. with involvement in recent industry advancements including the passage of Weekly Entry legislation and opening up the benefits of Foreign-Trade Zones to new industries. FTZ Corporation offers a complete set of implementation services including the application to the FTZ Board and activation of the zone with Customs and Border Protection. Combined with the implementation of SmartZone Premier software, FTZ Corporation can cut the time to first benefit with a “turnkey” implementation.
“Implementing a foreign-trade zone program can generate millions in recurring savings and is a key initiative for companies as the global economy is rebuilding,” said Jim Preuninger, CEO, Management Dynamics. “FTZ Corporation has a tremendous track record of success in this industry and we look forward to working together to expand the GTM market.”
About FTZ Corporation
The Foreign-Trade Zone Corporation is the only nationally recognized consulting firm with a practice focused on Foreign Trade-Zone consulting. The firm provides a wide range of consulting work from Foreign-Trade Zones Board applications to activations with Customs and Border Protection, and administers nine foreign-trade zone projects. Its management of these projects is in keeping with the Foreign-Trade Zone Corporation’s philosophy that there is no substitute for hands-on-experience.
RILA: Tariffs on Chinese Goods Would Negatively Effect U.S. Businesses
The Retail Industry Leaders Association reacts after a hearing about China’s exchange rate policy and the current trade imbalance that went before the Senate Banking Subcommittee on Economic Policy, states the American Shipper magazine. The hearing discussed legislation that would allow duties to be imposed on Chinese imports to address currency undervaluation allegations.
“Higher tariffs have never proven to be a wise solution for American economic growth,” said Stephanie Lester, RILA vice president for international trade. “RILA supports economic engagement with China and addressing our trade gap with China. We firmly oppose legislation that threatens to cut off access to the U.S. market and drive up prices for consumers.”
RILA has warned that higher tariffs would negatively effect U.S. businesses and its consumers.
To read more about RILA’s reaction, click here.
Free Direct Import Webinar May 25th: Register Now
Presented by Management Dynamics and World Trade Magazine, expert speakers from Ocean World Lines and Management Dynamics will take a look at the foundation technologies for a direct import program, explore the implementation options by working with a global logistics provider, and discuss a number of successful case studies.
Link to register: http://ow.ly/1wDDg
Thanks to Shoppers, Retailers Imports are Up
The National Retail Federation (NRF) reports that retail imports have increased and will continue to increase for the next several months, states the International Freighting Weekly magazine. Febuary was the first month in 2010 that reported an increase in imports, followed by predictions of about a 2 to 10 percent increase each month following.
“We expect these numbers to continue to climb as merchants and their customers move away from recession and back toward normal shopping habits,” states Jonathan Gold, NRF VP for supply chain and customs policy.
In March, US container ports handled more than 1 million teu, up 6% year-on-year. April is expects about an 8 percent gain then from last year.
Hackett Associates founder Ben Hackett said: “Retailers were maintaining lean inventories during the recession, but are carefully building back up.”
Encouraged Bilateral Trade for Small to Mid-sized U.S.Companies to India
According to American Shipper magazine, both the U.S. and Indian government has announced an incentive to encourage small to mid-sized companies to trade bilaterally between the two countries.
“There is almost limitless potential for growth in trade between our two countries, and that can contribute to economic recovery and job creation in the United States and continued economic growth in India,” Ron Kirk, U.S. Trade Representative said in a statement.
In October 2009, Mr. Kirk and Anand Sharma, Indian Minister of Commerce and Industry met at the Trade Policy Forum meeting to create the necessary framework to support small to mid-sized companies and encourage trade. This week the two representatives will met again to host an advisory meeting of American and Indian trade experts to enhance their efforts for this new program.
“We can realize that potential by working together toward the goals set forth in the framework agreement, such as developing and enforcing policies that encourage technological innovation; increasing agriculture, services, and industrial goods; and increasing investment flows,” Ron Kirk added.
“China’s Imports is a Source of Support for the Global Economy”
BusinessWeek reports that China Trade surplus fell making many believe that China is not just an exporting country anymore.
Imports rose a more than 44.7 percent from a year ago, the Chinese customs bureau reported on its Web site today. The surplus was $7.61 billion, and exports gained 45.7 percent.
“The sustained strength in China’s imports is a source of support for the global economy,” said David Cohen, an economist with Action Economics in Singapore.
On March 6th, Commerce Minister Chen Deming said that the trade surplus fell 50.2 percent in January and February from a year earlier, adding that domestic demand had boosted imports. He said it was too early to say if exports had recovered from the global financial crisis.
To continue reading, click here.
Download Whitepaper: Automate Your Supply Chain for 10 + 2
How have you managed your first week since complying with 10+2?
U.S. importers face significant increases in the cost of doing business and potentially higher penalty fines for non-compliance. Yet, according to recent Gartner research, few importers have systems or processes that can capture and disseminate the required information for 10+2 compliance.
Management Dynamics offers a whitepaper, “Automating the Import Supply Chain,” detailing best practices in international compliance, your business will soon move goods across borders in a cost – efficient, centralized manner with complete readiness to support 10+2
Find out more information on Management Dynamics’ solution, Customs 10+2.
Register to received this complimentary Management Dynamics’ whitepaper.
High Levels of Cadmium Raise Import Standards to Help with Health Risk
American Shipper magazine reports U.S. Customs and Border Protection will enforce stricter standards with products that contain metal. Numerous toys and women’s hand bags have been pulled from shelves after testing reveals dangerously high levels of cadmium.
Sufficient exposure from regularly sucking or biting jewelry with high cadmium content can hinder brain development in children. Wal-Mart has pulled several jewelry items after reports indicated cadmium. Furthermore, H&M has taken action after some of its hand bags had been tested and came back positive for this type of metal. The concern is that the metal can rub off on hands and can get in the mouths of children. H&M will enforce higher lead standards in the future.
Import safety has become a greater priority for CBP following recent scares of tainted products from China and other countries. CBP and CPSC inspectors are co-located at several locations now, including at a container examination station near the ports of Los Angeles and Long Beach.
For more information about the American Shipper article.