The document discusses various considerations for importing and exporting goods internationally. It covers shipping methods like air, sea, and ground freight; customs clearance processes; tariffs and duties; hazardous material restrictions; and parcel shipment options. John Monarch, CEO of Direct Outbound, provides an overview of key logistics and compliance factors to successfully trade goods across borders.

2. THE DIRECTION OF THE INDUSTRY
§ Experienced marketers launching products and stores.
§ Product Funnels, general eCommerce, F+S.
§ More control - more headaches.
§ Simplifying the process.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

4. BULK SHIPPING
§ Express for smaller shipments
§ Air Cargo
§ Sea freight
§ Road + Rail
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

5. EXPRESS
§ DHL, FedEx, UPS
§ Expensive – but fast.
§ DDP – Customs pre-cleared, duties paid.
§ Door-to-door.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

6. AIR CARGO
§ Passenger Airline cargo vs Cargo Only planes
§ Hazardous considerations
§ FOB – Not pre-cleared by Customs, duties unpaid.
§ Relatively fast – Expensive but less than Express.
§ Up to you to get it from Airport to Destination (FOB).
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

7. SEA FREIGHT
§ LCL, FCL, TEU pricing
§ Slow – but cheap. 30 days avg transit.
§ Port locations – ocean port, inland/dry port
§ FOB - Not pre-cleared by Customs, duties unpaid.
§ Up to you to get it from Port to Destination (FOB).
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

8. SEA FREIGHT – EAST COAST/WEST COAST CONSIDERATIONS
§ Panama Canal usage
§ Labor strike potential
§ Cost differential
§ Customer access
§ New Panamax/Panama Canal
deepening and cost impact
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

9. ROAD & RAIL
§ Imports from Canada and Mexico commonly use
§ “Intermodal” – Rail for part, Truck for part
§ LTL, FTL, Drayage
§ NAFTA
§ Use post-sea/air freight for delivery from port
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

10. CLEARING CUSTOMS
§ Customs Broker is an independent expert licensed with the U.S.
Department of Homeland Security
§ Duties based on country of origin and Harmonized System code
(HS Code)
§ Inspection for contraband, improper shipment materials (soft
woods without pest spray), quarantines, etc. X-Ray and manual
inspections, including full containers.
§ Other regulatory agencies such as USDA and FDA may be a part
of the clearance process, i.e. for food, agricultural products,
drugs, and cosmetics.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

11. HAZMAT CONSIDERATIONS
• Lithium Batteries (FAA Fines)
• Flammable liquids
• Toxic substances (EPA/TSCA)
• Aerosols
• MSDS Requirements
• UN Numbers
• Labeling requirements
• DOT/IATA Certifications
• Limited Quantity Exceptions
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

12. UNITED STATES TARIFFS, DUTIES, AND FEES
§ HS Code information and classification
§ Anti-Dumping duty (steel, solar panels, etc)
§ $800 “De Minimis Exemption”
§ Customs processing fees
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

13. DECLARED VALUES
§ Under-declaring values to US
Customs is a Crime.
§ Massive Fines and seizure of product
are possible.
§ Factories may attempt to declare low
values or quantities in an attempt to
circumvent laws and be under De
Minimis.
§ US CBP does investigate suspicious
shipments for declared value.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

15. PARCEL SHIPMENT METHODS
§ Express carriers
§ USPS International
§ Consolidators
§ Packaging considerations
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

16. EXPRESS CARRIERS
§ DHL, FedEx, UPS
§ Expensive – but fast. Potentially extremely expensive. DDP,
Customs and Duties prepaid often.
§ Ground options to Canada
§ Cargo air only typically
§ Always fully tracked. No other carrier handles.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

17. USPS INTERNATIONAL
§ International postal agreements. USPS carries out, local postal
carrier in country of destination delivers.
§ Not always fully tracked. Scan errors more likely, particularly
during postal handoff.
§ Express options via “EMS” consortium, organized by Universal
Postal Union (UPU). This will be tracked fully.
§ Typically less expensive than private express carriers, but with
more limitations.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

18. MAIL CONSOLIDATORS
§ Private carrier sort, brought to passenger airlines, delivered by local national
postal carrier.
§ Typically partnered with USPS for tracking and entering mail stream.
§ Cheapest option when shipping volume is high. Rates can be negotiated.
Fulfillment centers an option for negotiated rates.
§ May not always be fully tracked. Tracked options available such as ePacket
and equivalent services.
§ Delivery time slightly higher than USPS direct. Also depends on destination.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

19. HAZARDOUS CONSIDERATIONS
§ Only express carriers and freight will allow for
dangerous cargo – special contracts often required.
§ Heavy fines for dangerous cargo making it on a
passenger airplane. (Domestic and International)
§ Lithium battery exceptions for when within the device
– individual cells not shippable without contract.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

20. DUTIES, TAXES, AND MORE
§ VAT/GST Considerations per country.
§ De Minimis exemptions vary per country or unified
economic zone (such as the E.U.).
§ DDP/FOB shipments – package can be held for unpaid
taxes and duties, until paid by your customer to their
local postal service.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

21. SAMPLE DE MINIMIS EXEMPTIONS
§ Canada - $20 CAD
§ E.U. – Under 22, exempt from VAT/Duties. 22-150 EUR,
Exempt from duty, VAT is due. 150+ EUR, both due.
§ Japan – 10,000¥
§ Brazil – 50 USD only for Postal shipments. Express carriers
not exempt.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND

22. DECLARED VALUES
§ Under-declaring values risks
being banned from shipping
goods to that country.
§ Customs of country may adjust
declared value based on their
research, and charge customer
higher taxes.
§ Criminal penalties and fines may
apply for countries in treaty with
the United States.
IMPORT/EXPORT – JOHN MONARCH – CEO, DIRECT OUTBOUND