Customs Brokers Exam- October 2014

Are you thinking about taking the Customs Brokers Exam? If so think about baseball or something pleasant until the urge passes. The exam is given in April and October. Next exam date is October 6, 2014 and registration will open on the CBP website in July.  The brokers exam has proven to be more difficult to pass than the bar exam. Typical passing rates range from 3-11% nationally. Results have not yet been posted for the April 2014 exam but the passing rate for October 2013 was 11%. If you plan to take the October exam my advice is to start preparing now. I described the techniques that worked for me in a November 2013 post archived under “Nuts and Bolts”.

 

Contact Ad Hoc Logistics for help with logistics or regulatory issues  

 

http://www.cbp.gov/trade/broker/exam/announcement

Recent Projects

Two recent projects involved a review of the parcel industry and an analysis of the customs broker industry with a focus on remote location filing. Both projects were for a major consulting firm.

 

 

Ad Hoc Logistics can help you control logistics costs and compliance with export and import regulations. Call 978 241-0324 or e mail mitch@52.91.45.227

Old Dog Learns New Tricks

I am well organized but I did pick up some new techniques at a Southern New Hampshire University seminar on 6/10. The seminar was “Managing Multiple Priorities and Projects” (National Seminars Training) and the presenter was Laura Simms of ProfessorDoctorMom LLC.

My background includes stints as a corporate trainer and training supervisor so I know good training when I see it. This was definitely good training. Laura is dynamic, knowledgeable, and thorough. Some of the topics covered were: Fast planning, establishing priorities, time management, and Outlook tips. Highly recommended.

Contact me for help with export compliance, customs issues, or to analyze your logistics costs.

Export Compliance

Implementing a formal Export Management Compliance Program can be quite intimidating especially for small and medium sized companies. An EMCP requires a significant commitment of time  on the part of management and usually involves hiring an outside consultant for the initial set up. There is no question that a written EMCP is a good investment for any company to make. An EMCP establishes clear accountability, written instructions, and reduces risk of non compliance. If the exporter has not experienced problems or incurred any fines it is easy to make an EMCP a “back burner” issue. If your company has not implemented an EMCP it is still good business practice to take some basic compliance steps. While these steps cannot take the place of a written EMCP they will help reduce risk of non compliance.  To get started I suggest the following:

  • Review and confirm correct Harmonized and Schedule B codes
  • Check EAR regulations for correct exemption codes and license or NLR designations
  • If exporting under ITAR you need a responsible trained officer
  • Check common “Red Flags” such as denied parties lists, entities lists, and unverified lists
  • Review export documentation for possible improvements

 

Contact Mitch at Ad Hoc Logistics to get started.

emcp_guidelines

 

 

Logistics Consulting Comments

Mitch Kostoulakos commented on a discussion in Logistics Consulting.

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  • Mitch KostoulakosMitch Kostoulakos When considering overall costs the tradeoff between transportation and inventory has big impact. Reducing transportation costs can lead to increased inventory in the pipeline. 24s ago

Logistics Performance Index (Part 2)

In a recent post I discussed the World Bank Logistics Performance Index for 2014. Here is a follow up which includes the index for the years 2007, 2010, 2012 and 2014. The rankings indicate that the US lags behind EU trading partners as well as Hong Kong, Singapore, and Japan. Lowest scores are in the areas of  Customs Clearance and Ease of International Shipments. US ranks fairly high in Infrastructure which is surprising.

The category Ease of Shipments refers to the ease of arranging international shipments.  Ad Hoc Logistics can handle the quoting, documentation, and follow up of international shipments  for your company. Contact mitch@52.91.45.227 for a free initial consultation.

International_LPI_from_2007_to_2014

Wicked Problems

I came across the term “wicked problem” in the text that I am using for my SNHU course International Supply Chain Management.* A wicked problem involves multiple stakeholders, each with different interests and values. As a result there is no single common goal , no clear mission, and no universal solution. Any solution, after being implemented, will generate waves of consequences and can result in making the problem worse.  A suggested framework for tackling a wicked problem consists of 4 levels of increasing complexity:

Level 1- Process Engineering and inventory management– This is the engineering approach focusing on what is being carried (work, cash, information) and process design within and between organizations. Risk management is about improved visibility and control.
Level 2- Assets and Infrastructure- This is the insurance and financial approach. Nodes and links are examined and strengthened to avoid disruptions along the supply chain.
Level 3- Organizations and Inter-organizational networks– this is strategic level problem solving involving outsourcing, partnering, and offshoring.

Level 4- the Macro Environment- This level uses PEST  (Political, Economic, Social, and Technological) analysis of environmental changes. Issues include green and legal/regulatory as well as geo political factors.

Fortunately, not all logistics problems are wicked problems. If you need help with international logistics contact Ad Hoc Logistics.

*Global Logistics & Supply Chain Management by John Mangan, Chandra Lalwani, Tim Butcher, and Roya Javadpour

World Bank Logistics Performance Index

The World Bank has posted their Logistics Performance Index for 2014. The index benchmarks 6 areas of performance and gives nations a score from 1-5 for each area. The benchmarks are 1) Efficiency of customs clearance process, 2) Quality of trade related infrastructure,  3) Ease of arranging competitive pricing for shipments,  4) Competence and quality of logistics services,  5) Ability to track and trace shipments,  and 6) Timeliness of shipments in reaching destination within scheduled time of arrival.

For 2014 the US ranks 9th overall with an average score of 3.92 for the 6 benchmarks. Surprisingly, the highest US score is 4.18 for infrastructure, and the lowest is 3.73 for customs clearance.

The 8 nations ranking higher than the US are:

Germany

Netherlands

Belgium

United Kingdom

Singapore

Sweden

Norway

Luxembourg

 

Details @

http://lpi.worldbank.org/international/global/2014

 

Need help with logistics? Contact mitch@52.91.45.227 for a complementary consultation.

Is Importing/Exporting For You?

In the years that I have taught Supply Chain courses, many students have expressed the desire to start their own importing or exporting business. In some cases they were motivated by an interest in a particular product they encountered on an international trip. Others wanted to turn a hobby into a business. In these early stages the nuts and bolts of international logistics are less important than the product, the markets, and realistic expectations on the part of the student. As an instructor I always want to provide guidance and assistance along with real world business facts. The attached Twenty Questions are a good way to start the process,

IS THIS BUSINESS FOR YOU

US Customs Brokers info

Mitch Kostoulakos

Mitch Kostoulakos commented on a discussion in U S Customs Brokers.

 

  • Mitch KostoulakosMitch Kostoulakos Raul, I had the same question for the port of Boston a few months ago. You can apply for a permit as an individual license holder. If you have an individual license but want a permit in a company name you first need to apply for a license as a corp, partnership, or association. You need to complete CF314 License App, and supply articles of incorporation, credit report, and fingerprints. You should check with your port but hope this helps.

International Logistics Consulting; Licensed Customs Brokers