Simplifying Incoterms 2020

Posted on December 10, 2019. Category: Logistics Publications, Trade Publications

International commercial terms (incoterms), are the guidelines for global trade around the world. To provide clarity in the contractual flow, we must understand the incoterms that are being used in the contract between the buyer and the seller for each transaction. Correctly understood incoterms ensure a smoother and effective process. The most recent edition was presented by the International Chamber of Commerce, Incoterms 2020. This is the ninth version of incoterms since they were first introduced in 1936. One major change is Delivered At Place (DAP, 2010) was renamed Delivered at Place Unloaded (DPU, 2020). DAP was renamed to DPU to make it distinctly...

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Posted on December 09, 2019. Category: Tax Publications

 Unclaimed Property (also known as abandoned or escheat property) is exactly that – money or tangible assets that belong to you, but are viewed as “abandoned” because there has been no activity or contact with you by the holder for one year or longer.  There are a myriad of types, but the most common for individuals are uncashed payroll checks, forgotten bank accounts, and non-refunded utility security deposits.  For businesses, uncollected vendor payments and tax refunds top the list. Every U.S. state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands,...

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Last Mile Deliveries

Posted on December 06, 2019. Category: Logistics Publications

In this era of online shopping, consumers are wanting their deliveries faster and faster. Companies that are selling goods directly to individual consumers simply cannot be competitive unless they can deliver said goods in a timely fashion. Companies like FedEx, UPS, and now Amazon can ship almost anywhere in the US overnight.Last Mile Delivery by definition is the final leg of a shipment (from destination airport/warehouse to final destination, which is usually a personal residence.) This has become a key part in the transportation of goods, but is also the most expensive to the seller. There are several...

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Latest Tariff News

Posted on December 05, 2019. Category: Logistics Publications, Trade Publications

On Monday December 2, President Trump advised that his administration is considering tariffs as high as 100% on French goods in retaliation for a new Tax on digital services, greatly impacting U.S technology companies. The office of the U.S. Trade Representative deemed the tax discriminatory against U.S. companies. The estimated value of imported goods impacted could be up to $2.4 Billion U.S. and includes cheese, beauty products, handbags and certain wines.Trump also advised new tariffs on steel (25%) and aluminum (10%) from Brazil and Argentina, in retaliation for what he claims is currency devaluation on their part. These tariffs will...

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Logistic Challenges in India

Posted on December 03, 2019. Category: Logistics Publications

Due to Trump-era tariffs, many manufacturers are exploring options for their supply chains. India is a low-cost country alternative, however, there are some challenges regarding logistics that need to be reviewed in detail.Ground transportation accounts for 65% of intra-India cargo movement according to the National Highways Authority of India.  The large network of highway and road systems connecting India are of inconsistent quality, dangerous and prone to persistent traffic delays.  The heavy reliance and demands of the ground transportation infrastructure, especially for long hauls, propel costs higher than in other countries.Ocean transport for international freight is dominated...

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Section 301 News: Progress on Trade Talks

Posted on October 14, 2019. Category: Trade Publications

After negotiations last, week the U.S. and China have agreed on the first steps to de-escalate the trade war. The results of this talks are the following:Lists 1, 2, and 3 will not increase to 30% on October 15th, 2019 but will stay at 25%. As of right now, list 4B is still scheduled to go into effect on December 15th, 2019. China has committed to buying $40 to $50 billion worth of U.S. agriculture annually. There was also reported progress on intellectual property, currency manipulation and tech transfer, among other things, but the details have not yet been provided.Latest Tariff Increase Schedule...

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MPF Increase in 2019

Posted on October 10, 2019. Category: Trade Publications

To account for inflation, US Customs and Border Protection (CBP) adjusted certain user fees on October 1, 2019. The minimum merchandise processing fee (MPF) will be increased to $26.79 from $25 and the maximum will be raised to $519.76 from $485. MPF is assessed by CPB for most imports into the US on an ad valorem basis, with the percentage being used to calculate MPF remaining at .3464%. MPF will be waived for goods that qualify for certain free trade agreements, such as NAFTA. The MPF for entries under $2,500 will remain at the $2 flat rate.Contributor: Matt Dreckman About Allyn International Allyn International...

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Northeast Passage Benefits

Posted on September 25, 2019. Category: Logistics Publications

With the increase of global warming, it is possible to connect European and Asian seaports along the Russian Arctic Coast. This is called “Northeast Passage” or “Nothern searoute."  This route reduces distances by 30% on average and transit times by 40% on average. Consequently, it also reduces the fuel needs and costs. Ice breaking ships are usually needed to transit, but it is significantly less useful due to global warming. Now vessels with reinforced bows are enough. China and North European countries are very interested by this new option. However,...

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A Global HTS Solution

Posted on September 12, 2019. Category: Trade Publications

The World Customs Organization is represented by 183 customs administrations and represents 98% of the world’s trade. When goods are shipped internationally, they must be classified for customs purposes using a Harmonized Tariff Schedule Number (HTS). Each separate product is assigned a classification code and amongst other things, the HTS number is used to determine the applicable duty rates. One of Allyn International’s core competencies is HTS classification, with services offered on a local or global level. Regardless of country of import, Allyn can provide correct HTS number(s) for your products to ensure compliance with applicable...

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Incoterms 2020

Posted on September 11, 2019. Category: Trade Publications

On September 10, 2019 the International Chamber of Commerce launched Incoterms® 2020. Incoterms® rules on the use of domestic and international trade terms and facilite the conduct of global trade.In order to be effective, contracts will have to specify that Incoterms® 2020 are being used. This updated edition of trade terms seeks to provide clarity to companies in several areas:Key Changes for 2020Change in the three-letter name from DAT to DPUIncoterms® 2020 replaces DAT (Delivered at Terminal) with DPU (Delivered at Place Unloaded). This broadens delivery to places other than a terminal. DPU is the only...

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