Understanding the ins and outs of international logistics is becoming increasingly important as supply chains and cross-border commerce continue to expand globally.
DHL, CFDA’s Official Logistics Partner, designed a DHL Master Class to help fashion brands navigate their supply chains – from materials and samples, to production, wholesale and e-commerce orders. Here, you will find a curated list of some of DHL’s top tips for smooth sailing.
Know your product. To ensure your shipment arrives on time, it’s important to provide detailed information regarding its contents. Proper invoicing is essential to accurately predicting costs, taxes and applicable duties, as well as determining tariff codes and ensuring a smooth clearance process.
Fish and Wildlife Service (FWS) products For shipments containing any living or dead wild animal, its parts and/or products made from them, you must always secure all relevant permits and certificates prior to shipping. You’ll have to notify your carrier prior to booking an FWS shipment and also provide your permit to the applicable broker before shipping. In addition, establish a process for shipment preparation and pre-alerts to ensure visibility and control over special clearance processes and access to original paperwork in transit (i.e. CITIES). Here are the top four FWS products:
Leather
Exotic
Feathers
Endangered species
Mutilated samples A mutilated sample must have a hole or cut of at least 26 mm. in diameter, and it must be in a prominent area that cannot be covered by a patch, pocket or emblem. The cut should not be near the seam, border or pocket.
Note: Mutilated samples are typically considered non-commercial. Using this classification is often the only way to gain duty-free entry into most countries.
Textile swatches Unfinished textile samples less than 8 x 8 inches in size can be shipped without marking or mutilation and should be sent in the form of a book.
Note: Guidelines vary by country of destination.
Non-mutilated samples & bulk stock For shipments of non-mutilated samples and stock, normal import and export procedures apply. Do your homework and follow the proper Customer Invoice guidelines for your destination country.
Note:Understand the terms of trade for your shipment, as that will impact your bottom-line cost.
Proper classification Specific details are needed to ensure the proper classification of textiles, apparel and footwear. Textiles generally require more data elements due to the complexity of the corresponding tariff codes associated with these commodities (i.e. denim, knit, lace, gender, color, value per piece).
Note:Improper classification can lead to shipping delays.
Fill out the necessary documentation. Proper paperwork is key!
A Proforma Invoice is a document provided by a supplier before shipping merchandise. It informs the buyer about the types and quantities of goods being sent, as well as their value and specifications (weight, size, etc.).
A Commercial Invoice must be included with a shipment when a transaction has occurred. It is often used by governments to determine the true value of goods when assessing Customs duties.
Waybills (also known as Bills of Lading) provide the data used by Customs to perform security screens on shipments.
Shipping internationally on a temporary basis? If so, there are two basic options:
Under specific conditions, goods may be admitted into the United States under TIB (Temporary Import Bond) without payment of duty.
These conditions include shipment of: samples for soliciting orders, items imported to be repaired or processed, and tools of trade.
If you didn’t qualify for a TIB, you’ll want to look into getting an ATA Carnet. Generally speaking, this will provide an easier import/export process, as countries tend to prefer this international Customs document.
Be detail-oriented – Improperly classified items may delay shipments and possibly cause future issues when being re-exported.
Do your research – Reference the following websites to help guide you through product classification, tariff codes, Customs regulations and much more. Shipping rules vary country to country, so make sure you do your research, pay attention to details and know your product.
Want to learn more? Visit the DHL Express blog and find informative tips for small and medium businesses, webinars and events, trade terms, country guides and advice on the basics of international shipping. Ready to go global? Sit down with an international logistics specialist at DHL Express by contacting the CFDA at SupplyChain@cfda.com.
