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Int dist tenta Flashcards

1
Q

Tariffs of overseas has decreased over time? T/F

A

TRUE

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2
Q

A quota is?

A

When there is a restriction of how much volume that can be imported.

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3
Q

Local Content requirements

A

Certain portion of value added must be produced inside the country.

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4
Q

Trade bloc of North america?

A

NAFTA

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5
Q

Trade bloc of South america?

A

MERCOSUR

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6
Q

Trade bloc of South east asia

A

ASEAN

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7
Q

Local manufacturing, Local sourcing means

A

Produce products in sweden and sell them in sweden, like heieneken beer for example. Only trademark is foreign.

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8
Q

Local sourcing, Global manufacturing

A

Every factory gets its raw materials/commodities in the local area where they operate.

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9
Q

Global sourcing, global manufacturing

A

Buy materials from different trade blocs and sell the end product globally.

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10
Q

Lift and shift means?

A

That you try a product in one country, if it works here, try to introduce it to a new market.

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11
Q

Tariff rate quota

A

Possible to import a quantity of goods to a low duty rate. When reaching the quantity a much higher rate will be applied.

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12
Q

Absolute quota

A

Places a yearly limit on the number of items entering a country under a specific product.

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13
Q

Main goals of customs

A

Revenue collection, Promote nation’s competitive ness (to avoid dumping), National Security, Protection of national interests.

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14
Q

4 types of control for customs:

A

Red, Orange, Yellow, Green

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15
Q

Red custom inspection

A

Means physical inspection, used on high risk companies.

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16
Q

Orange custom inspection

A

Scanning by xray

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17
Q

Yellow custom inspection

A

Check of documents

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18
Q

Green custom inspection

A

Automated control

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19
Q

Free Trade Zone

A

Import under beneficial circumstances to perform assembly within the certain zone. Ex Panama and Guanzhou are FTZ’s.

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20
Q

Duties are based on 3 factors :

A

Classification of goods, Value of goods, Country of origin.

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21
Q

Cost of inspection is paid by the….

A

Shipper often, dependent on Incoterms

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22
Q

Commodity code & Origin will give you the=

A

Duty rate.

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23
Q

If putting the wrong classification code…

A

you might need to overpay for the import of the goods in the destination country. Delays etc may occur.

24
Q

Origin of coffee is

A

where we roast and blend the coffee.

25
Packaging will not be a substantial change to the product, therefore...
The origin of the product will not be changed if the coffee is packaged in the consuming country.
26
Operators with International geographic scope and simple complexity of functions are called?
Freight forwarders
27
Domestic simple functions freight solutions are called?
Road freight operators
28
Complex function of logistics operating in the domestic market
Contract logistics/3PL
29
Ad valorem duty?
Dependent on the value of the good
30
Specific duty
A concrete sum is charged for a quantitative description of the good
31
Explain some Non-tariff barriers
Quota, embargo, document complexity, technical standards, health regulations, certain ports and airports are the only paths into the country.
32
Inward Processing Relief
Used by EU countries to import resources and manufacture in EU then further sell without paying excessive duties
33
Outward Processing Relief
Returns of products from outside EU to inside, you are allowed to skip duties for service etc.
34
What is AEO
Authorized Economic Operator: is a certification used by customs agencies for the purpose of traffic security.
35
What requirements are needed to have a AEO certification
Compliance with customs requirements Traceability of financial flows Financial solvency Security level of information, logistics and personnel
36
What is included in the purchase order?
specification of products Quantitiy Delivery date and location Dispute and pnalties Prices
37
Group E Incoterms
EX works: only packaging is handled by the seller, everything else is handled by the buyer
38
Group F Incoterms
Main carriage unpaid: EFCD Free carrier (FCA- name place) Free Alongside Ship (FAS – Name port) Free on Board (FOB – Name Port)
39
Group C Incoterms
Main carriage paid: EFCD - Carriage Paid To (CPT – Name place) - Carriage and Insurance Paid To (CIP – Name place)
40
Group D Incoterms
Arrival: - Delivered At Place (DAP – name place): - Delivered At Place Unloaded (DPU – name place): - Deliver Duty Paid (DDP – Name place):
41
Terms of payment is important, what is 4 common options for this?
Cash in Advance Letters of Credit Progress of payment Open account
42
What is the difference between direct and indirect exporting
Indirect may use supporting salesmen, retailers and intermediaries. Direct exporting is similar to direct selling.
43
Export trading company difference to Export management corporation
INDIRECT ETC is an intermediary that buys the goods in the exporting country and transfers the goods to the importing country. EMC located in exporting country, takes care of the exporters sales through a commission.
44
Distributor
INDIRECT Typically located in importing country Taking title to goods and earning profit on the sales Carry inventory of exporters goods Often maintenance and support services
45
Sales Agents
DIRECT Small firm or individual in importing country Terms of sales is acc to exporter After sales, exporter takes care of any maintenance etc Often expensive and not stock items Often small in terms of volume sales
46
Sales subsidiary
Foreign office staffed by exporter Two legal entities Costs high Good when wanting to have control of sales
47
Joint Venture
DIRECT EXPORTING Exporter finds one or more partners to share costs Creation of a new corporation Minimize exposure when going abroad Minority local partner Legally required to find local partner
48
Licensing
DIRECT EXPORTING Two companies Importing company takes royalty No capital lay outs to perform Not always protected intellectual prop
49
3 Selection criteria for the Trade Channel
Market Characteristics Product characteristic Exporter Characteristics
50
Consignment stock
Consignment stock is the vendor supplied stock. Ownership of the stock is passed only when it is used.
51
What are the traditional functions of the Logistics Channel
Consolidation and transport optimization Product mixing-gathering Customer service Efficiency inventory holding
52
Direct Shipment is...
Straight from plant to the customer
53
1-Echelon network
Plant-Local warehouse-Customer
54
2-Echelon network
Plant-Central Warehouse-Local Warehouse-Customer
55
Consolidation hub
Supplier in China may have a consolidation hub in china to repack products and send it to local warehouses

International Distribution (2 decks)

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