EEI, AES, ACE, SED

By now most exporters are quite familiar with electronic export information filing. The old yellow paper SEDs are long gone. Some shippers self file but many rely on their freight forwarders. In either case it is a best practice to audit your submissions on a regular basis to ensure accuracy and avoid fines and penalties.

A common misconception is that EEI and Commercial Invoice value should match. This is actually not correct unless inland freight costs are added to both. Here is the relevant language from 15CFR Part 30.6

(17) Value. In general, the value to be reported in the EEI shall be the value of the goods at the U.S. port of export in U.S. dollars. The value shall be the selling price (or the cost, if the goods are not sold), plus inland or domestic freight, insurance, and other charges to the U.S. seaport, airport, or land border port of export. Cost of goods is the sum of expenses incurred in the USPPI’s acquisition or production of the goods. Report the value to the nearest dollar, omit cents. Fractions of a dollar less than 50 cents should be ignored, and fractions of 50 cents or more should be rounded up to the next dollar.

Ad Hoc Logistics can audit your filings, checking all elements of the EEI for errors. A confidential report will be provided for internal follow up. Contact mitch@52.91.45.227 for immediate assistance.

Pandemic Driven Change in the Workplace: More to Come – Newegg Logistics

https://logistics.newegg.com/intro/2021/03/18/pandemic-driven-change-in-the-workplace-more-to-come/

Mitch Kostoulakos, LCB  Licensed Customs Broker, International Logistics Consultant

The new sales model cuts back on “customer entertainment” as a sales tool. Lunches, dinners, sporting events have always been used to retain market share especially in the LTL sector. I have written that clients should not allow their carriers to “reward” them for their business. Remote sales calls can be focused on adding value, problem solving, and pricing when appropriate. Although I’m sure plenty of golf is being played!

Canada Border Services Agency | Agence des services frontaliers du Canada Are you a new commercial importer/exporter looking for more helpful information to get you started?

Check out the Reference Tools section on our website ⬇️

Mitch Kostoulakos, LCB  Licensed Customs Broker, International Logistics Consultant

CBSA website is very user friendly

When business slowed down in early 2020 and continuing into 2021, Logistics Service Providers (LSPs) were forced to adjust staffing levels to match reduced volume. This has certainly presented challenges for both providers and their clients. Trusted LSPs and 3PLs are valuable resources for any business. They are the arteries through which supply chains function. Hopefully staffing cuts are temporary but, for now, they do add risk for clients.

Exporters, not LSPs, bear primary responsibility for compliance with regulations. In reality, though, many exporters rely on their freight forwarders to manage compliance for them. This has always been a mistake but even more so when the LSP reduces staffing. Documentation errors, misclassification, and failure to check licensing requirements are examples of the risk for exporters. Best practices in this area would be to review all documentation produced by LSPs, check shipments for “red flags”, and consider establishing a formal Export Compliance Program for the future.

Basic service levels are also impacted by LSP staffing cuts. Pick up and delivery routes will be combined so drivers are covering wider zones. This can mean late deliveries, missed pick ups, or late pick ups requiring overtime for the client. Remaining clerical staff may struggle to field customer service requests on a timely basis. Best practices here include gaining a comfort level with your providers’ on-line resources and developing problem solving protocols to save time.

Whether your logistics provider is a motor carrier, freight forwarder, customs broker, or warehouse, good customer service is essential. While information is almost always available at your fingertips, action requiring human intervention can be elusive. Logistics managers deal with changing schedules, equipment failures, weather delays, regulatory issues, and miscommunication on a daily basis. Most problems, however, are not new. The same situations tend to repeat themselves so they can be anticipated. Developing a set of problem solving protocols for the most common issues in your supply chain will save you time since you will not be starting from scratch when a problem arises. It will also enable your colleagues to act in your absence.

A basic protocol defines the problem and lists steps to be followed as well as the resources involved. Your logistics providers can help by providing relevant operations contact info for the identified problem areas. Your account rep should welcome the opportunity as it will save them time as well. Update protocols as needed and make them part of your account review meetings. Finally, if your account rep says “Just call me” don’t accept this response.

Need Help? contact mitch@52.91.45.227

Posted on LinkedIn

A Little Respect…

Let’s face it, warehouse operations don’t get much C level attention unless there are major failures. Even the label “warehouse” sounds old school. In fact, most facilities are now known as distribution or fulfillment centers. Management training in this function is hard to find. Here is an overview from a course I taught a few years ago.

Supply chain strategy has been designed to eliminate or reduce warehousing although E- commerce and forward stocking locations are disrupting this trend. In any case lower total costs, improved efficiency, and adding value are still the goals. Here are some key areas for managers to consider in improving warehouse operations:

read the full post
https://lnkd.in/eHANem2

Comments on LikedIn

John D. Schulz• 2ndTrucking Industry Expert – Contributing Editor – Logistics Management Magazine6d • 6 days agoIf lawmakers in Washington needed any more incentive to go big in their pending infrastructure package, the nation’s preeminent group of engineers is giving it to them. The nation’s infrastructure gets a ‘C-‘ grade from a preeminent group of civil engineers. It’s the latest in the battle over how to shore up America’s crumbling roads, bridges, airports and other assets. Read my latest take.

Mitch Kostoulakos, LCB  Licensed Customs Broker, International Logistics Consultant

We need to listen to the engineers. This report is disgraceful especially for the richest country in the world. Borrowing costs are low and many people need the work. Go big now!

I’ve been a baseball fan for many years and attribute my math skills to studying the back of favorite players’ cards. The basic statistics were batting average, home runs, and rbi for hitters. For pitchers it was wins-losses and earned run average. These measures don’t even scratch the surface compared to the sabermetrics used in today’s game.

Logistics and baseball have some common features. We play every day, errors can have a big impact , managers get criticized, and there are plenty of rules and regulations. Like sabermetrics in baseball, we can measure logistics performance in many different ways.

Measuring and managing logistics performance is a full time job for logistics professionals and the volume of data can be daunting. Managers in other functions such as finance, marketing, or manufacturing may need a quick view of logistics data as it relates to their responsibilities.

Here are a few general measures for the dashboard:

Absolute Performance- monitor absolute logistics failures rather than averages. For example, 99.5% on time performance appears very good. However, in a high volume operation, it could mean hundreds or thousands of late orders per day.

Inventory Turnover- common measurement in asset mgt.

Order Fill Rate- customer service and warehouse productivity measurement. Can also use item, line, or value fill rate.

Warehouse Utilization %- indicator of good asset mgt.

Warehouse Productivity- measure of units received, stored, picked, packed, and shipped per hour.

Order Cycle – reduced order cycle means less inventory in the system and greater customer satisfaction. Longer order cycle means more inventory in the system and reduced customer satisfaction.

Lost Sales- inverse relationship with inventory. Higher inventory costs, lower risk of lost sales. Lower inventory costs, higher risk of lost sales.

Transportation costs- always a trade off….bulk shipments can reduce transportation costs but leads to higher inventory levels in system. Higher transportation costs due to mode shift (air vs. ground or air vs. ocean) can reduce inventory in system by shortening the order cycle.

Commodity value- higher dollar value means increased transportation, inventory, and packaging costs.

Density of product- High density (lbs/ cubic ft or kgs/ cubic meter) means lower transportation and inventory costs since the product takes up less space in containers or warehouse.

Loss and Damage- greater susceptibility to loss or damage means higher transportation rates and higher warehousing costs due to special handling.

Location Decision- Distance from sources or markets = relative advantage or disadvantage vs. competitors. This is an upper mgt responsibility.

Need help? contact mitch@52.91.45.227

Snyder• 1stUS Army Retired/Veteran Advocate/Logistics Careers/Mentoring President, Troops2Logistics.org, Board Member LTNA.org

Had an excellent conversation today with Mitch Kostoulakos, LCB, of Ad Hoc Logistics. Mitch has been in the customs compliance arena for over 20 years and is also a former Army Reservist. Mitch has offered to provide his expert guidance to our veteran candidates interested in becoming Licensed Customs Brokers and/or Export Compliance Specialist.

On behalf of the veteran community of Troops2Logistics.org, we thank Mitch for his support!

Mitch Kostoulakos, LCB  

Thanks Scot…enjoyed our conversation and learning about your mission

From the CBP website

Customs Brokers License Exam Information

The bi-annual Customs broker license exam (CBLE) was administered on October 8, 2020 resulting in a 37% pass rate prior to appeal decisions.  The electronic exam was held nationwide at over 120 testing locations.

This is a much higher pass rate than for previous exams.

Here is one of the questions from the Entry section of the exam. Answer below.

17. The importation to the United States of cats, dogs, and monkeys are subject to Foreign Quarantine Regulations of which agency(s) ________?

A. United States Fish and Wildlife Service

B. Custom and Border Protection Agriculture

C. United States Public Health Service

D. Animal Plant Health Inspection Service

E. All of the Above

Answer: C

Customs Broker License Examination

Announcement – Remote Proctored Exam Delivery Option

The next Exam will be held on Wednesday, April 21, 2021. Exam Registration will open on February 22, 2021 and close on March 22, 2021.

U.S. Customs and Border Protection (CBP) is offering a remote proctored exam delivery option for the April 21, 2021 Customs Broker License Exam (CBLE) available to a limited number of examinees. 

Check the CBP website for details