What’s in a Name? That Which We Call Sales Tax

Posted on December 18, 2019. Category: Tax Publications

Sales Tax is defined as a tax on the sale, transfer, or exchange of a taxable item or service. It is generally added to the sales price and charged to the purchaser or ultimate consumer. This form of taxation can be traced back to the 1930’s as a way for states to increase their revenues, the first state being Mississippi. Currently, 45 states as well as the District of Columbia, impose sales and use taxes in one form or another. There are two implications of sales tax to be most aware of when considering who is ultimately liable for the...

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What to Expect for Trade Compliance in 2020

Posted on December 17, 2019. Category: Trade Publications

The world of international trade continues to be in a state of constant change. Here are a few topics that will help shape the international trade landscape in 2020.1. Regional Comprehensive Economic Partnership: The RCEP is a trade agreement launched in 2012 in Cambodia, that involves 16 Asian countries that together make one third of the entire world’s Gross Domestic Product. However, since launched, the agreement has never been signed.All countries part of the Association of Southeast Asian Nations (ASEAN) and other major economies such as China, Japan, and South Korea commonly decide to finally commit to signing the agreement...

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Changes in the ELD Era

Posted on December 17, 2019. Category: Logistics Publications

In December 2017, the U.S. trucking industry was faced with a tough transition. Truck drivers were required to replace their existing paper logs with electronic logs under the new Electronic Logging Device (ELD) rule established by the Federal Motor Carrier Safety Administration (FMCSA). The goal of the ruling was to improve road safety and minimize road accidents. The final phase of the ELD mandate was set to go into effect on December 16th, 2019, which will require motor carriers to switch their old automatic onboard recording devices (AOBRDs) to ones that will meet the ELD certification standards set by the FMCSA. ...

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The Ailing Shipping Industry: Container Fire Incident

Posted on December 17, 2019. Category: Logistics Publications

Container ship's fire incidents have been frequently covered in the news over the course of 2019. In order to decrease the number of incidents, the supply chain industry has established the Cargo Incident Notification System (CINS) in 2011 with approximately 17 shipowners. The most recent major cases fire incidents have occurred on Herbert, Maersk, and MSC container ships. According to a report by TT Club, container ship fire incidents occur every 60 days or so, highlighting a serious problem that has puzzled the industry – improper stowage/cargo declaration.  The National Cargo Bureau (NCB), a non-profit organization, has been assisting shipowners since...

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WTO Approves Additional Tariffs on EU Aircraft

Posted on December 17, 2019. Category: Trade Publications

A trade battle that has spanned over a decade, the United States has been given the OK from the World Trade Organization to impose tariffs on European made aircraft. The main target is the aircraft manufacturer Airbus, the biggest competitor of the United States aircraft manufacturer Boeing. The United States has imposed a 10% rate on all aircraft imported into the United States, along with a 25% tariff on other items. The issue came from both aircraft manufactures accepting illegal subsidies worth billions of dollars. With the approval of the World Trade Organization, outside countries cannot retaliate against the US for...

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Section 301 Tariff Update

Posted on December 16, 2019. Category: Trade Publications

On December 13th President Trump reduced and suspended tariff changes that were due to take place on December 15th.  The other 301 tariff lists are to remain at the current rate that they are in and will not be changed.The list 4b which includes all goods that were not on any previous 301 tariffs increase list is going to be suspended until further notice due to an agreement that the United States made with China. This agreement will also reduce the tariffs on list 4a from 15% to 7.5% the effective date of the reduction is not yet announced.In this...

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Maersk Line Changes for 2020

Posted on December 16, 2019. Category: Logistics Publications

Maersk Line, one of the largest container shipping companies in the world, has announced they will stop buying vessels (for now) and plan on expanding their scope to inland services (warehouses/customs house clearing services) as part of their long-term growth. They are already three years into this venture and have invested close to $1 billion, with plans to invest on even more in the future. Since they started, inland sales are still only a small portion compared to the profit from their ocean services.  Maersk’s goal will be to have their inland (non-ocean services) profit to be...

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The Future is 5G

Posted on December 12, 2019. Category: Logistics Publications

As major telecom equipment manufacturers begin the next phase of 5G cellular network testing, companies need to be aware of the new technology’s effects on logistical and procurement work environments.5G is a new telecommunication standard that takes advantage of newly allocated wireless frequencies - providing much higher speeds and larger user capacity. The main benefit for the logistics sector is that companies will be able to deploy more tracking devices for improved visibility into the supply chain. IoT devices, scanners, and small communication chips can now all use cellular connectivity more liberally without significant degradation of network...

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Airfreight - A Key Indicator of Economic Activity

Posted on December 11, 2019. Category: Logistics Publications

Economic activity and airfreight development are closely intertwined. Logistics executives closely follow the development of airfreight trends to manage and plan supply chain strategies, as do economists and market analysts - because airfreight trends are a key indicator of economic activity overall.By researching the global airfreight trends, we can conclude that airfreight has been declining year over year in both volume and demand levels in 2019. The majority of international airlines reported declines in cargo traffic in October 2019 and the overall 2019 year to date.After a period of noticeable growth in 2017, and moderate growth in 2018; the 2019...

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Simply SIMI – Importing in Argentina

Posted on December 10, 2019. Category: Logistics Publications

For those with experience exporting goods to Argentina, you may know all too well how challenging customs clearance can be with the required prior approval by the Administración Federal de Ingresos Públicos (Argentine Tax and Customs Authority). Fortunately, a new system, SIMI, has been developed to simplify the process.The Comprehensive Import Monitoring System, SIMI (Sistema Integral de Monitoreo de Importaciones), is a tool built to monitor imports in Argentina. Through this system, import licenses are processed electronically, in advance, and free of charge. The declarations made are valid for 180 calendar days from the date of...

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