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02_07 - Logistics Flow(TBD)

02_07 - Logistics Flow(TBD)
Business Management and Finance Courses » Udemy - International Logistics & Transportation in Supply Chain. 2023-5
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02 - What is Export Import and How to Plan a Shipment Udemy - International Logistics & Transportation in Supply Chain. 2023-5




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International logistics flow.

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Now we have learned about different modes of transport from trucking, railways to ocean shipping.

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But when all this mode of transport combined together, it becomes a logistics flow.

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So to move your goods from the factory of the exporter to the warehouse of the importer you need, different

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modes of transport, right?

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So to understand the logistics floor, we will refer to this graphic on the screen.

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So the no.1 represents the factory of the exporter that is the seller, where the goods are manufactured

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and stored.

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It can be a warehouse, but in this case we will consider it as a factory.

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So as the seller is going to sell the goods internationally, the country where the goods are originating

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is known as exporting country

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So number one is the factory of the exporter.

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The number two represents the pre-carriage that is trucking the goods from the factory of the exporter,

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the customs representative.

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Number three now custom is the government body who checks the incoming and outgoing cargo.

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And they also make sure that the goods are safe to be exported and all the necessary documents are in

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order.

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And they also check whether the taxes, to the government for exporting the goods have been paid or

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not.

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So once the customs clears the goods, the goods are ready to be loaded onto the ship or aircraft.

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And in the case of landlocked country, the goods are different.

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So the customs, in case of landlocked countries, will be presented differently, whereas in case of

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ocean or as shipping, it will be at the port or the airport.

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So number four represents the port of loading and airport of loading.

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Now, once the goods are loaded on the ship or the aircraft, the voyage of goods starts and the time it

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takes for the ship or aircraft to reach from the port.

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Of loading the port of discharge is known as transit time.

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So as the ship or aircraft arrive, the port of discharge or airport of discharge represented as number 5

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plate, the goods will be unloaded from the aircraft or the ship and it will be again checked by the

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importing countries customs, whether the goods entering their country are legal or not.

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Once the customs checks the gold and the import duty is paid to the customs, the custom clears the

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cargo for import.

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Now what if import customs duty?

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See, every country want their manufacturing.

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to be promoted and prioritize rather than buying the goods from another country.

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So to protect the local manufacturing, the customs charge a customs duty on the goods which are imported

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from another country.

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This demoralizes the people who buy goods from other countries, and the customs duties differ from

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product to product.

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If that product is not manufactured in your country, the import duty will be considerably lower compared

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to the products being manufactured in your country.

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So if a mobile phone is manufactured in your country, but still you import the mobile phones from the

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other country, then the customs duty will be higher.

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So number six represents the importing customs who will take the incoming cargo and once the checking

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is done, the customs clearance for the goods entering the country is given.

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Now the cleared groups are loaded on to the representative number seven.

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So the movement of goods from the port or airport of loading to the importers warehouse is known as on-carriage.

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So when it comes to movement from the factory of the exporter to the port of loading, it is known as pre-carriage.

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.

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But the movement from the port of discharge to the importers warehouse is known as on-carriage. The pre-carriage

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and on-carriage can also be done by the rail mode of transport depending on the available facilities.

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So I hope this flow is clear.

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