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International Distribution > Int dist tenta > Flashcards

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
Q

Packaging will not be a substantial change to the product, therefore…

A

The origin of the product will not be changed if the coffee is packaged in the consuming country.

26
Q

Operators with International geographic scope and simple complexity of functions are called?

A

Freight forwarders

27
Q

Domestic simple functions freight solutions are called?

A

Road freight operators

28
Q

Complex function of logistics operating in the domestic market

A

Contract logistics/3PL

29
Q

Ad valorem duty?

A

Dependent on the value of the good

30
Q

Specific duty

A

A concrete sum is charged for a quantitative description of the good

31
Q

Explain some Non-tariff barriers

A

Quota, embargo, document complexity, technical standards, health regulations, certain ports and airports are the only paths into the country.

32
Q

Inward Processing Relief

A

Used by EU countries to import resources and manufacture in EU then further sell without paying excessive duties

33
Q

Outward Processing Relief

A

Returns of products from outside EU to inside, you are allowed to skip duties for service etc.

34
Q

What is AEO

A

Authorized Economic Operator: is a certification used by customs agencies for the purpose of traffic security.

35
Q

What requirements are needed to have a AEO certification

A

Compliance with customs requirements
Traceability of financial flows
Financial solvency
Security level of information, logistics and personnel

36
Q

What is included in the purchase order?

A

specification of products
Quantitiy
Delivery date and location
Dispute and pnalties
Prices

37
Q

Group E Incoterms

A

EX works: only packaging is handled by the seller, everything else is handled by the buyer

38
Q

Group F Incoterms

A

Main carriage unpaid: EFCD

Free carrier (FCA- name place)
Free Alongside Ship (FAS – Name port)
Free on Board (FOB – Name Port)

39
Q

Group C Incoterms

A

Main carriage paid: EFCD

  • Carriage Paid To (CPT – Name place)
  • Carriage and Insurance Paid To (CIP – Name place)
40
Q

Group D Incoterms

A

Arrival:

  • Delivered At Place (DAP – name place):
  • Delivered At Place Unloaded (DPU – name place):
  • Deliver Duty Paid (DDP – Name place):
41
Q

Terms of payment is important, what is 4 common options for this?

A

Cash in Advance
Letters of Credit
Progress of payment
Open account

42
Q

What is the difference between direct and indirect exporting

A

Indirect may use supporting salesmen, retailers and intermediaries. Direct exporting is similar to direct selling.

43
Q

Export trading company difference to Export management corporation

A

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
Q

Distributor

A

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
Q

Sales Agents

A

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
Q

Sales subsidiary

A

Foreign office staffed by exporter
Two legal entities
Costs high
Good when wanting to have control of sales

47
Q

Joint Venture

A

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
Q

Licensing

A

DIRECT EXPORTING
Two companies
Importing company takes royalty
No capital lay outs to perform
Not always protected intellectual prop

49
Q

3 Selection criteria for the Trade Channel

A

Market Characteristics
Product characteristic
Exporter Characteristics

50
Q

Consignment stock

A

Consignment stock is the vendor supplied stock.
Ownership of the stock is passed only when it is used.

51
Q

What are the traditional functions of the Logistics Channel

A

Consolidation and transport optimization
Product mixing-gathering
Customer service
Efficiency inventory holding

52
Q

Direct Shipment is…

A

Straight from plant to the customer

53
Q

1-Echelon network

A

Plant-Local warehouse-Customer

54
Q

2-Echelon network

A

Plant-Central Warehouse-Local Warehouse-Customer

55
Q

Consolidation hub

A

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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