Mastering the Business of Global Trade: Negotiating Competitive Advantage Contractual Best Practices, Incoterms, and Leveraging Supply Chain Options, 1st Edition (Hardback) book cover

Mastering the Business of Global Trade

Negotiating Competitive Advantage Contractual Best Practices, Incoterms, and Leveraging Supply Chain Options, 1st Edition

By Thomas A. Cook

CRC Press

405 pages | 102 B/W Illus.

Purchasing Options:$ = USD
Hardback: 9781466595781
pub: 2014-02-05
SAVE ~$22.00
$110.00
$88.00
x
eBook (VitalSource) : 9780429255069
pub: 2014-02-05
from $55.00


FREE Standard Shipping!

Description

Much of your company’s success in global trade will be determined by how well you manage contracts and agreements for sale or purchase. Mastering the Business of Global Trade: Negotiating Competitive Advantage Contractual Best Practices, Incoterms, and Leveraging Supply Chain Options explains the key elements any international business person must know, but more importantly, it also describes how to use negotiation skills, leveraged options, and Incoterms to extract the maximum benefits from your supply chain.

At the end of the day, landed costs determine pricing and profits. As such, the book clearly explains how landed cost modeling works and how you can use these business models to leverage supply chain options. Illustrating how Inco terms impact compliance and risk, it details options to help you reduce your exposure to risk as well as best practices to help you steer clear of compliance issues that can cause costly delays.

Managing global supply chains is about constantly striving for efficiency, driving down costs, and increasing profits. With this book, you will not only learn how to negotiate better contracts, but you will also learn how to manage relationships with freight forwarders and customhouse brokers in a manner that will help you get the most value from your service agreements.

The book establishes a very simple, yet comprehensive, roadmap that both the neophyte and the more experienced global supply chain executive can easily follow and master. By following the time-proven advice and roadmap detailed in these pages, you will learn that it is possible to engage in more deals and increase your returns, while reducing your overall risk exposure.

This book is part of The Global Warrior series.

Table of Contents

The Role of Contracts in Global Trade

Contracts in Global Trade

Case Study: When Contracts (or Lack of) Fail

Transparency of What Both Parties Are Trying to Accomplish

Trust

Capabilities that Can Be Delivered

Responsible Structure

Managing International Contracts: Best Practices and Necessary Deliverables

Third-Party Options

Consultants

Law Firms

Freight, Logistics, and the Global Supply Chain

Freight, Logistics, and the Global Supply Chain

Managing Incoterm Options with Freight Forwarders, Customhouse Brokers, and Transportation Intermediaries

Advanced Knowledge of Incoterms

Global Reach through Office or Agency Network for Local Incoterms Knowledge and Applications

Global Resources to Execute Various Incoterms Options

Incoterms: Foundation of Global Trade

Functional Definition and Use

Terms of Sale

Terms of Payment

How Freight Is Handled

How Insurance and Risk Are Managed

When and How Title or Ownership Is Transferred

How and When Revenue Gets Recognized

Who Is Responsible for Trade Compliance Issues

Legal Jurisdiction

How Disputes Are Settled

How Company Tax Issues (IRS or Equivalent) Are Mitigated

Packaging, Marking, and Labeling

Intellectual Property Rights

What We Need to Know about Incoterms to Obtain Better Commercial Advantages

Background and History

Incoterm Member Countries

The UN Convention on Contracts for the International Sale of Goods

Issues in World Governance

Governmental Profiles

World Customs Organization (WCO)

Organization for the Prohibition of Chemical Weapons (OPCW)

Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES)

Montreal Protocol

Organisation for Economic Co-operation and Development (OECD)

Wassenaar Arrangement

The Lacey Act

Nuclear Non-Proliferation Treaty (NPT)

Australian Quarantine and Inspection Service (AQIS) Laws

Items You Must Declare When Importing or Traveling or Shipping to Australia

Global Governance Guidelines for Incoterms

What We Need to Know about Incoterms 2010

Rules for Any Modes of Transport

Rules for Sea and Inland Waterway Transport

2000 versus 2010

Placing the Book into Two Sections

FOB On-Board

Domestic Use

Security-Related Clearances and Information Are Addressed

Terminal Handling Charges Responsibility Clearly Defined

"Goods Sold in Transit" Transactions Addressed

Ocean Freight and FOB Responsibilities of Seller and Buyer Redefined

Cargo Insurance Better Defined

Specific Incoterms Nuance Changes

Best Practices: Making the Right Choices

10 Action Steps

Engage Senior Management

Establish a Point Person and a Team Approach

Learn Incoterms and Establish an Incoterms Guru!

Integrate Incoterms in Every Corner of the Organization

Partner with Providers

Plan the Best Options and Leverage Sales and Purchases

Foreign Inland Freight Can Be a Nondutiable Charge

Educate Suppliers, Customers, and Vendors

Do Not Operate in a Vacuum

Develop and Use Technology Options

Develop Competitor-Friendly Options; Network

Networking

Develop Resources

Key U.S. and Globally Based Associations

Global Examples

Key Periodicals

Senior Management: Executing a Best Practice Strategy

Incoterms Management

Develop ITM into Your Business Processes

Learn the Basics of Incoterms

Develop Resources for Incoterms Expertise

Understand How Incoterms Decisions Impact the Global Supply Chain and Break Down Fiefdoms

Create Integration Management into Incoterms Decision-Making

Learn Leverage Options in General, and Then Apply to the Specific Scenarios in Your Global Supply Chain Metrics

Establish Service Provider, Supplier, Vendor, and Other Business Relationship Communications and Standard Operating Procedures

Integrate Technology into the Incoterms Management Process

Create Policy Guidelines for Incoterms Options and Trade Compliance Management. For Public Companies, SOX Incoterms Management Is Critical

Engage Incoterms Lobbying to Increase and Enhance Change to Your Company’s Benefit

Government Security Programs

C-TPAT and AEO

United States: C-TPAT

Europe: AEO

The AEO Guidelines

Japan

Canada Partners in Protection

Landed Cost Modeling

Definition of Landed Costs

Cost to Export from the Originating Country: $$$

Inland Freight from Origin to Outbound Gateway: $$

Foreign Freight from Gateway to Gateway: $$$$

Marine Cargo Insurance: $

Warehousing: $

Inland Freight from Inbound Gateway to the Final Destination: $$$

Customs Clearance: $$

Required Documents in Mexico

Import Licenses, Permits, and Registrations: $$

Bottom of Form

Preshipment Inspection

Ancillary Freight Charges, Demurrage, Etc.: $

Duties, Taxes, VAT, or GST, Etc., … $$$$

Government Inspection Requirements $

Handling and Related Services … $$

Case Studies

Landed Duty Paid: Import Case Study #1

Landed Cost CIF: Case Study #2

Reducing Costs: Case Study #3

Small U.S. Exporter, Changing the Incoterms Choice: Case Study #4

Chinese Exports to the United States: Case Study #5

Trade Compliance Issue: Case Study #6

German Optics Company, the DDP Advantage: Case Study #7

Global Regulation and Compliance Management

Overview

Trade Compliance and Regulation Impact Incoterm Options

Exports

U.S. Government Resources for AES

North American Free Trade Agreement (NAFTA)

Pedimento Form

United States Foreign Trade Regulations

Foreign Trade Regulations 15 CFR Part 30, Incoterms, and Routed Transactions

Asia Reviewed

Importing into China

General Documents

Specific Documentary Requirements

Australia

Korea

Europe

France

Examples of Value-Added Taxes

Canada, United Kingdom, Australia, New Zealand, Europe

Canada

United Kingdom

Australia

New Zealand

Europe

German Export Control

Objectives of Export Control

International Export Control Bodies

Licensing Procedure

Developing Nation: Importing into Nigeria

Import Guidelines

Latin America

Brazil

Mexico

Argentina

Imports

Importing into the United States

Basic Guidelines for Importing into the United States

Arrival of Goods

Entry of Goods

Other Types of Entry

Customs (CBP) Examination of Goods

Importer’s Security Filing and Incoterms in the United States

Powers of Attorney and Incoterms

Customs Powers of Attorney

Revocation of a Power of Attorney

Customs Bonds

Types of Bonds

Amount of Bond

Breach of Bond

Managing INCO Trade Compliance Issues: USPPI and Ultimate Consignee

USPPI: United States Principal Party In Interest

Exporter of Record Replaced by U.S. Principal in Interest (USPPI)

Responsibility of USPPI and Forwarding Agent in a Normal Export Transaction

Responsibility of USPPI and Forwarding Agent in a Routed Export Transaction

Ultimate Consignee

Best Practices: Making the Right Choices

Ten Action Steps

Senior Management Engaged and Executive Best Practices in Incoterms

Establish a Point Person and a Team Approach

Learn Incoterms and Establish an Incoterms Guru

Integrate Incoterms in Every Corner of the Organization

Partner with Providers

Plan the Best Options and Leverage Sales and Purchases

Foreign Inland Freight Can Be a Non-Dutiable Charge

Educate Suppliers, Customers, and Vendors!

Do not operate in a vacuum!

Develop and Utilize Technology Options!

Develop competitor friendly options … Network!

Networking

Develop Resources

Key U.S. and Globally Based Associations

Global Examples

Key Periodicals

Education, Training, and Skill Set Development

Internal Training Options: Connectivity in Your Company

Senior Management Overview

Middle Management Oversight

Operational Level Functionality

Training Skill Set Agenda

Risk Management and Insurance Controls

Risk Management in the Global Supply Chain: A 10-Step Primer

Overview

Ensure Senior Management Commitment

Establish a Risk Management Focus

Complete a Global Risk Management Assessment and Benchmarking

Identify the Three Key Risk Providers

Profile the Major Areas of Risk and Establish Risk Strategies

Decide Risk Retentions and Transference Policies

Identify the Benefits of Loss Control Management

Establish Trade Compliance Protocols

Use Technology in Risk Mitigation

Training Is a Work-in-Process

Risk Management Case Study

Terms of Sale versus Terms of Payment

Marine Cargo Insurance and Incoterms

Transfer of Title and Revenue Recognition

Transfer of Title or Ownership

Revenue Recognition

Evidence of Arrangement

Delivery or Services Rendered

Price Is Fixed or Determinable

Collectability Is Reasonably Assured

Sale of Goods

Incoterms and Sarbanes–Oxley

Tax Considerations

Additional Tax Issues

Ad Valorem

Value-added (2)

Supplemental Taxes

Summary

IPR, Trademarks, Patents, and Other Intellectual Property Rights

Carnets and Incoterms

Carnet Use

Bonded Warehouses and Foreign Trade Zones

Bonded Warehouses

General Provisions in Vietnam for Bonded Warehouses

India

United Kingdom

Definition of a Customs Warehouse

United States

What Is a U.S. Customs Bonded Warehouse?

What Are Its Advantages?

Mexico

Packing, Marking, and Labeling

Global Supply Chain: Best Practices

Senior Management: Executing a Best Practice Strategy

Incoterms Management

Develop ITM into Your Business Processes

Learn the Basics of Incoterms

Develop Resources for Incoterms Expertise

Understand How Incoterms Decisions Impact the Global Supply Chain and Break Down Fiefdoms

Create Integration Management into Incoterms Decision-Making

Learn Leverage Options in General, and Then Apply to the Specific Scenarios in Your Global Supply Chain Metrics

Establish Service Provider, Supplier, Vendor, and Other Business Relationship Communications and Standard Operating Procedures

Integrate Technology into the Incoterms Management Process

Create Policy Guidelines for Incoterms Options and Trade Compliance Management. For Public Companies, SOX Incoterms Management Is Critical

Engage Incoterms Lobbying to Increase and Enhance Change to Your Company’s Benefit

Government Security Programs

C-TPAT and AEO

United States: C-TPAT

Europe: AEO

The AEO Guidelines

Japan

Canada Partners in Protection

Summary

Appendix

Copyright and Trademark Policy

Trademarks

Copyright

Glossary

U.S. Trade Terms

U.S. Free Trade Agreements

Why Should You Care About Free Trade Agreements (FTAs)?

What is An FTA Negotiated by the United States?

What Types of Behaviors Are Addressed in a U.S. FTA?

With Which Countries Does the United States Have An FTA?

U.S. FTA Partner Countries

How Can U.S. Companies Identify Tariffs On Exports to FTA Partner Countries?

Ultimate Consignee Verification

Overview

Objective

Definition

Verification Questions as Affirmation of Ultimate Consignee Designation

U.S. Customs and Border Protection Office of Strategic Trade Regulatory Audit Division Treatment of Ultimate Consignee Transactions in a Focused Assessment

Introduction

Background

Procedures

Consolidated Entries with Multiple Ultimate Consignees

Unsolicited Merchandise on Entries Listing a Company as UC

Entries Initiated by the UC but Another Entity is IOR

Routed Freight Transactions

Routed and Non-Routed Export Transactions

Tax Rates

EU Countries

Non-EU Countries

VAT Registered

Index

About the Author

Thomas A. Cook is a seasoned logistics, international trade and supply chain executive. Tom is the author of more than 300 articles and 12 published books on global trade and related subjects. Tom’s reach into global corporations is deep, with extensive experience in guiding companies on supply chain management and Incoterms. Tom's work is internationally recognized with a global reach spanning six continents.

Tom is Managing Director of Blue Tiger International in New York, a prominent and exclusive management consulting firm specializing in customized supply chain and management solutions. (www.bluetigerintl.com).

Tom’s bestseller, Managing Global Supply Chains (Auerbach2008) … is considered by many to be one of the most comprehensive guides to best practices in global supply chain management in both the academic and commercial world. It’s focus on trade compliance, security and dealing with Terrorism, became the ‘go to’ reference guide for trade practitioners, following the Events of 9/11. Tom is available for inquiries at thomasalancook@gmail.com or aritac4@aol.com.

About the Series

The Global Warrior Series

Learn more…

Subject Categories

BISAC Subject Codes/Headings:
BUS042000
BUSINESS & ECONOMICS / Management Science
BUS076000
BUSINESS & ECONOMICS / Purchasing & Buying