Exports/Imports Logistics and Legislation
Report 1: Logistics supply chain
1.1NewZealand Wooden product 1.2Destination Country (China) 1.3 Supply chain Logistics 1.4 Warehousing and Distribution 1.5 Freight Forwarders and customs 1.6 Physical Distribution Services 1.7 Product Finishing Operations 1.8 Freight and delivery option
Regulation of destination country regarding specific transport packaging and labelling of goods
Essential components of the export contract
3.1 Headings 3.2 Names and addresses of both the parties 3.3 Representation 3.4 Product, standards and specifications 3.5 Quantity/Quality 3.6 Inspection 3.7 Terms of delivery 3.8 Terms of payment, and amount 3.9 Taxes, duties and charges 3.10 Period of delivery and shipment 3.11 Licenses and permits 3.12 Insurance 3.13 Product Guarantee 3.14 Applicable law 3.15 Minimum orders 3.16 Signature of the parties References:
Logistics supply chain Supply chain management
) is the management of the flow of goods. It includes the movement and storage ofraw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. What is Supply Chain? Supplier
Introduction of product
- New Zealand Forest Product Exports
Our success is not a matter of luck. We have combined hard work and high quality to build a world ranking company. New Zealand is a great place to grow trees and produce timber. The climate is mild, we get plenty of sun, plenty of rain and we enjoy long growing seasons that are uninterrupted by cold winters. At Southern Cross Lumber we have grown by building a reputation for supplying consistently high quality product. Our customers know and trust our integrity when it comes to doing business and so we enjoy a great deal of customer loyalty. From our base in New Zealand we are able to supply customers throughout the world. We have a dedicated team of professionals whose role in life is to help satisfy your needs. We are driven by a passion to supply quality product to all our customers. NZ Wood is a major promotional and development programme to promote New Zealand forests and wood resources to improve our economy, society and our whole way of life. It was launched in 2008.The forestry and wood industry is New Zealandâ€™s third largest industry, contributing an enormous amount to our economy and making up over 12% of New Zealandâ€™s export earnings. Public interest in climate change and the environment has never been higher which makes it a great time to highlight to all New Zealanders the benefits of growing forests and using wood. Growing forests absorb CO2 from the atmosphere and by choosing wood over other products we reduce the amount of CO2 emissions. Forests and wood fight global climate change. New Zealandâ€™s forest products exports have grown considerably over the past 2 decades, from less than 1 billion USD in 1990 to nearly 3 billion USD in 2010.Major export Items include logs, lumber, paper/paperboard, chemical pulp and MDF. 1.2 Destination country (China)
China is New Zealand's second-largest trading partner, as well as a major source of migrants, students and tourists. In 2008, New Zealand became the first and only OECD country to conclude a Free Trade Agreement (FTA) with China. Since the signing of the FTA, New Zealand's exports to China have grown significantly, from NZ$2.3 billion (2008) to NZ$6.7 billion (2012). Dairy products account for over a third of all exports to China, with other key exports being wood, wool, seafood and meat. The export profile is diversifying, with machinery, aluminium, plastics, wine and high technology products (especially telecommunications) featuring in New Zealand's non-agricultural exports to China. New Zealand's largest imports from China include electronics, clothing, furniture and toys. 1.3 Supply chain Logistics
The supply chain incorporates all aspects of moving material from the vendor through the manufacturing process to the final customer. The supply chain focuses on vendors, manufacturers, intermediaries, logistical services and the customer.Supply Chain and Logistics Technology is managing (planning and executing) the flow of materials, their transformation into finished goods, and their ultimate delivery as finished goods to the final buyer. Global business is becoming ever more reliant on logistics and supply chain management in order to keep pace with the demands of an increasingly global economy. This is why business leaders acknowledge that the supply chain can be a value creator and a source of competitive advantage. As the global supply chain becomes more complex with every passing year, companies must adapt to this change and incorporate them into their supply chain strategies. This change could mean using vendors from developing nations or exporting goods to new markets. Overall, changes are aimed at delivering greater benefits for both Fonterra and our Vendors. This includes more efficient Management of critical activities such as ordering, planning and managing inventory â€“ and processing of payments! The changes will only involve our ANZ business units. 1.4 Warehousing and Distribution
To achieve consistency of quality and supply our processing facilities are amongst the best New Zealand has to offer. By controlling the process every step of the way from the arrival of fresh cut longs through to shipping as high quality timber products we guarantee your satisfaction. We are so proud of our facilities that we encourage and welcome customers to visit us in New Zealand and see for yourself that our service and products are second to none. 1.5 Freight Forwardersand customs
The freight forwarder is concerned with organizing transportation for companies. Their primary task is to combine smaller shipments to create a single large shipment to minimize the shipping costs. Companies using a freight forwarder will benefit as they are charged a much smaller shipping cost than if they had shipped their product independently. The freight forwarder provides other services which are beneficial to the exporting company. The services include documentation, payment and carrier selection. International freight forwarders handle both direct and consolidated shipments. Services of an International Freight Forwarder
Freight forwarders facilitate shipments by air, vessel or other common carrier. Their services may include, but are not limited to:
- Ordering cargo to the port of export
- Preparing export declarations
- Booking, arranging for and confirming cargo space
- Preparing delivery orders or dock receipts
- Preparing ocean bills of lading
- Preparing consular documents or arranging for their certification
- Preparing and processing letters of credit
- Arranging for warehouse storage
- Clearing shipments in accordance with U.S. government export regulations
- Preparing and sending advance notifications of shipments or other documents to banks, shippers, consignees or agents as needed
- Handling freight or other monies advanced by shippers
- Remitting or advancing freight, monies or credit in connection with the dispatching of shipments
Southern cross lumber ltd. has join the World Customs Organizationâ€™s Private Sector Consultative Group (PSCG). Our experience in shipping worldwide allows us to offer you a complete service, this means we take care of all the paper work. This means you know that dealing with us means you will have no stress, no hassle and no worries (no worries is a kiwi expression meaning everything is good) We have stocks of timber waiting to be shipped, this means that we can fulfill your order and start the transport process almost immediately. The time it will take to get to you does depend on your location, however to give you an idea we normally supply within the following timescales. USA West coast - 3 weeks USA East Coast â€“ 6 weeks by sea (4 weeks by sea/land) China - 3 weeks UK & Europe â€“ 8 weeks 1.6 Physical Distribution Services
Export distribution involves the physical act of moving products and is an integral part of international trade. Companies of all sizes should become familiar with the distribution systems between the origin manufacturing location and the targeted markets. While many aspects of international marketing allow an exporter to be creative and unique, there is little room for error in export mechanics. The role of service providers in international logistics and transportation cannot be underestimated. It is best to leave this process to the experts, who make their living by learning the most efficient and ethical transportation methods available. Numerous variables impact shipment logistics and distribution. Transportation modes impact the total cost of the goods, which may fluctuate between nations in regards to requirements on packaging, labeling, transit times, perishability, and damage or loss of cargo. Mistakes in this process lead to increased labor costs. Many hours of work can go into solving problems that could have been avoided by taking the time to learn the process in the first place.
1.7 Product Finishing Operations
All the timber treatments we offer are designed to preserve the timber in the use to which it is being put. All treatments are safe and we pride ourselves on being environmentally friendly. We can offer a wide variety of treatments including H1,H2,H3,H4,H5 and LOSP. We not only offer cca treatments but we can also provide Pre-Priming in a large variety of colours. All timber is
1.8 Freight and delivery option
- Inspected for quality
- Correctly dried at 8-12%
- Checked for measurement tolerance
- Knot free and clean
All our timber is packaged and shipped within containers that ensure that the moisture content and quality of the product remain at optimum levels. All wood is inspected manually whilst shipping and in this way we retain quality.Banded together to prevent movement and damage during transit, you can be assured that every piece of lumber you receive will be usable. No mess, no fuss, no waste. New Zealand's ports are in operation 365 days per year and we have constant shipments being exported to the USA, Asia and Europe. As a global business we understand the process of shipping around the world. For this reason we offer a complete service. We are able to offer a 'to your door' service that removes the need to do any of the paperwork yourself, we do it all.
Regulation of destination country regarding specific transport packaging and labelling of goods
Packaging is used to protect our product, minimize damage and plays an important role throughout lifecycle of the product. it protects the product from the atmosphere, micro-organisms and pests from the time of packing until it is consumed and it also the first perception the customer has of the product. This requires packaging to be both functional and aesthetically pleasing. Chinaâ€™s Importation Requirements for Wooden Packaging Materials
With an increasing number of factories moving to China, importation of cargoes into China is becoming more common. What follows are some useful tipsfor Chinaâ€™s importation requirements for wooden packaging materials. In order to fulfill the requirements for importing into China, Mr. Chan has sent his cargo packed in wooden crates for fumigation and has obtained a fumigation certificate from the fumigation company. After that, Mr. Chan sent all relevant documents together with the fumigation certificate to the corresponding department of the Chinese government for approval of importation. Quite beyond Mr. Chanâ€™s expectations, it took 3 months for him to get the approval needed to import his cargo into China as the IPPC stamps were incorrectly applied to the wooden packaging materials by the fumigation company. The Chinese government will check the details of the fumigation certificate for each importation. According to Notice No. 84 issued by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) of China on 1st
January 2006, the importation requirements for wooden packaging materials include: Â·All wooden materials which make up a shipping package must be fumigated / treated according to the International Plant Protection Convention (IPPC) by the agents whom are certified by the government of the country from which the goods were exported Â·IPPC stamps should be placed on the wooden materials / packaging materials by the above-mentioned agents Â·The treatment and the stamps should also conform to AQSIQ requirements
Essential components of the export contract
A contract is an agreement that creates an obligation that is a binding, legally enforceable agreement between two or morecompetent parties.A contract can be worked out either by the seller or the buyer, and it is called a sales contract or purchase contract respectively. But it is difficult to draw up a comprehensive contract that can be standardized for all export transaction. However, the exporter and importer should be aware of certain minimum general requirements when drawing up an export sales contract. From a more practical perspective, a contract may be summarized in the following fourbasic points:
- It is anagreement, generally in writing,between two ormore parties.
- It contains rights and obligations. The contract document establishes the rules that are to be followed by the parties.
- It servesto regulate business relations
- It is generally for a specifcperiod of time.
Content of a contract
This is thetitle of thecontract; for example: â€œSales Agreementâ€, â€œDistributorship Agreementâ€, â€œBrokerage Agreementâ€, etc. Our Contracts heading is Export Contract.
3.2 Names and addresses of both the parties This content identifies anddescribes the parties, i.e. the persons and/or companies signingthe contract. The parties to the contract should be clearly stated. For example: Exporterâ€™s address: Southern Cross lumber co.ltd 45 Bryant road Te Rapa Hamilton 3200 Phone:078497056 Importerâ€™s address: Anhui import and export co. ltd,
107 Science road Hefei, Anhui, China Phone: 0086-551-5338900 Fax: 0086-551-5338855 5338800 Website: http://www.aniec.com Ningbo cixi import and export corp ltd
Sishan road 269,cixi,ningbo, Zhejiang Phone:0086-574-63886702 Fax:0086-574-63813763 E-mail:[email protected]
Website: http://www.cncie.com 3.3Representation:
This clause follows immediately after the naming of the parties and states the attributes of the person, who appears to sign the contract,
3.4 Product, standards and specifications
This content is about the product means which type of product we are going to export. It includes the product name. If there are any size in which the product is to be supplied; the applicable national or international standards and specifications are needed.
For example Wood product (lumber)
This clause describes thetype of goods to be delivered, aswell as the quantity, size, weight, quality standards and other specifications. In this units of measures should be clearly specified.
This clause is about inspection of the product before exporting it to the market. There are some agencies that do this kind of inspection when product is ready to export from Manufacture Company. Therefore, the parties should clearly state the nature of the inspection process.
3.7 Terms of delivery
Terms of delivery should be clearly specified in contract. It just determine the time required in which the goods are to be delivered.
3.8Terms of payment, and amount
This clause determines the method of payment, the amount, the frequency and theplace where payment will be received for the transactions carried out.
3.9 Taxes, duties and charges
Taxes charged applied under the common agricultural policy. If any, in the country of importation may be the buyerâ€™s responsibility. So it should be clearly defined.
3.10 Period of delivery and shipment
It specifies the period in which the product is delivered to his destination i.e China. It also defines about the shipment.
All shipping documents must be presented to customs officials by the importer or their agent upon the entry of goods into China. The following documents are mandatory: Customs Entry or Informal Clearance Document (ICD) Air waybill (AWB) or bill of lading (BLAD) Commercial invoice Packing list, and Other documents relating to the importation and requested by the importer.
3.11 Licenses and permits
We have to disclose documents regarding to Export license and permit to export dairy product. Chinaâ€™s Customs does not require companies or individuals to hold licenses to import goods. However, depending on the nature of the commodity, permits may be required to clear the goods.
A contract should provide for the insurance of goods against loss, damage or destruction during transportation. 3.13 Product Guarantee
The length of the period of guarantee should be fixed.
3.14 Applicable law
In this clause both parties have to disclose and agree with the law is going to applicable means if something goes wrong in trade then we have to define in the contract before trade that which countries law will apply. 3.15 Minimum orders:
This clause may serve to compensate for the assignation of territory and the granting or not of exclusivity. It generally establishes an initial minimum order or the products of the principal/exporter. It may also determine subsequent minimum orders, which, ingeneral, will be submitted in a phased manner and in accordance with a reference schedule
3.16 Signature of the parties
This is the last stage of contract where Exporter and Importer are agreed and sign with all above steps and they are responsible for any dispute in trade. Refrences:
http://www.southerncrosslumber.co.nz/ http://www.biosecurity.govt.nz/exports/forests/standards/china.htm http://en.wikipedia.org/wiki/Ministry_of_Commerce_of_the_People's_Republic_of_China http://english.mofcom.gov.cn/ https://www.nzte.govt.nz/en/export/export-markets/greater-china/china/ http://www.tradecommissioner.gc.ca/eng/document.jsp?did=125684&cid=512&oid=32 http://www.cncie.com/en/profile.asp