Transportation and Logistics | Aurelien Millot | Skillshare

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

15 Lessons (2h 23m)
    • 1. 1 syllabus

      2:48
    • 2. 2 what is transportation

      7:47
    • 3. 3 how to organize a shipment

      4:48
    • 4. 4 case study

      8:21
    • 5. 5 how to prepare a booking

      12:00
    • 6. 6 summary of Incoterms

      3:08
    • 7. 7 mean of transportation

      10:14
    • 8. 8 sea freigt volume calc

      10:50
    • 9. 9 lcl or fcl

      8:10
    • 10. 10 air freigt volume calc

      12:18
    • 11. 11 price breakdown

      17:53
    • 12. 12 casestudy

      7:15
    • 13. 13 rfq

      16:13
    • 14. 14 how to handle a shpmnt

      18:15
    • 15. 15 conclusion

      3:11
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About This Class

Hello,

This course will allow you to have a big picture of the orchestration of logistics/transportation presenting the different means of transportation. 

This is my humble experience of 16 years as CEO of my company of export/import in China and Professor for several MBA business schools throughout the world. It means this is concrete and not purely theoretical but down to earth and practical!

You will know how to define the responsibilities by using the proper incoterms.

You will learn how to book a shipment, what are the customs duties (HS codes) and thereby how to calculate the logistic costs.

You will learn how to manage the key documents required to export/import.

We will cover a maximum of examples with simulations, case studies, and real testimonies. Therefore you will have at the end a maximum of operational tools and templates to use for your own business.

NB: This course can be seen as the part of the big picture "International Trade Import and Export" which includes 3 other courses of mine;

1- Sourcing and buying 

2- Production follow-up and quality assurance

3- Prospection and negotiation

4- Transportation and logistics

Wishing you a nice journey with this course, of course! 

Sincerely yours,

AM

Meet Your Teacher

Teacher Profile Image

Aurelien Millot

Entrepreneur, Holistic Life Coach

Teacher

Hello there,

I'm Aurelien!

My life revolves around the same axis, with a common thread/word: EXCHANGE

NB: my motto is "The exchange of ideas is as indispensable to the people as the exchange of substances." Anatole France

1.       CEO of a fashion garment company of import/export in Shanghai of 12 people, MADE IN,

exchange : import/export - trade

2.       Co-creator of a holistic wellbeing center in Bali, SHAMBALI,

exchange : helping people to find themselves and to be happy in their daily life

3.       Professor for 5 different prestigious business & fashion schools in the world-MBA & Master degrees,

exchange : transmission

See full profile

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Transcripts

1. 1 syllabus: all right. Hello, everybody today have the change to propose to you a Kurds regarding shipping? Transportacion. Actually, this is, um, a curse, which is a part off a big A course, which is, um the theme is international trade export import with a focus on China. Actually, the first part was eso seeing purchasing the 2nd 1 was prospection negotiation. The surge one was protection for Europe. And the last one is Transportacion. This four different toe pics chapter whatever independents, and are so obviously I recommend highly to visualize all of them of the big picture off course, but ah, this one can be ah appreciated independently. Okay, So today we cannot spend time by expanding you after shots, but are so consequent introduction How to organize a shipments. Secondly, how to prepare a parishioner Lee a booking in with explaining you first. What is the responsibilities? True and ink attempts. What are the ink attemps? Um, expanding you and simply the functioning. The find the different ink attempts with the main words. They find the different means of transportation and then how to calculates the volume off vessel for sea freight and or so to calculate the volume and the wait for a flights and to see which one we're taking to calculate the costs. Then after that, the certain aspect will be two to know with the big picture the price breakdown off logistic coasts. Okay. Integrating the fright itself, then the custom duties and then the or evil George. We will do some some case to this. Okay? For you to understand very well and easily. How does it work? And last stage, the four phone we will do. We will see how to handle a shipments. How too. It's a book, A shipments. Ah, and or so what are the different documents you need toe to show to the customs? 2. 2 what is transportation: Okay, so let's talk about shipping. But before that, I would like to take a little bit time as an introduction to a book. What's really Transportacion is transportation. Actually, it's like a battle against space and time, okay? And this, actually it is old as history. Here's okay. You have the big planet here. And actually there is an evolution through the history about space and time. If we come back in the past. Okay. Ah, for example, um in the period off the silk roads, the Silk Road's actually was a path that we add in between China and Europe. Okay, He was in between the second century before Jesus Christ of to 15 15th century. And I will explain you the reason why after well, actually, China was the main producer off seeks. That's why the Silk Road and that this period was very let's say, where item and very valuable items and the words exchange itself like this different exchange in between two words. Why am insisting on that is because it's interesting to see the perspective at this periods , actually the time because the Silk Road there is a battery in between the origen, but normally officially is in Shanshan is in the center off China. Some people say that is in Su Zhou, which is here close to Shangai. Okay, so it between here and Europe Vinnie's, for instance. At this period, we needed them in between nine months and one year. Let's imagine now the perspective why I'm talking about that is because now they ah, the Chinese government, um, implemented back this silk roots. Okay, so and it is interesting because it is exactly some geopolitics dimension because the old countries crossed by the new seek roads we've trained now is with the country where Westerners are not really Ah, best friend, Let's say due to different reasons But this other countries like, um Afghanistan, Iran, Iraq, Syria. Okay, so this is geopolitics because this is the That's a the new word. Okay, The new older with from one side, China and Russia and the wrists off the word. Okay, let's say United States and Europe. So this is the interesting part, and I will explain you later on. How long does it take? Now's days and the the forecast for the future. So let's come back just before the notion off the Silk Road. So at this period, up to the 50 off 50 century, let's say just before the decided the century of discoveries, he was almost one year to go there. Okay, By this time we discover states, other states, no America, let's say the span eras, the Portuguese and the long discovered the word for going there. Your street month. Okay. And then Vasco da Gama discovered the roads to India, and to go there at this period was something like six months. So you see, for two reason, he was the ends off the silk roads. Ah, First, because off the threats off the mongers and or so off the, um the Turkish Okay, so the roads will more and more dangerous. That's why and are sort of competition with the sea. Okay, so you understand that we reduce the perspective off space time and you will see afterwards how it is important. So by this moments, it is only in Kota Mark. Six months. Let's imagine now the days okay, we reduce drastic the dimension because the Sunni, um from Europe living here I have an office here in Bangladesh. I have, or so opening a new office in Myanmar and I ever living in between Bali and China, ever holistic center off while being there. So let's imagine I'm like, crossing the word in, like, everybody 12 hours to do the equivalent off 12 months in the past. And actually, when I'm saying that the perspective completely changed with the notion off globalization because the word became this one can take it as a symbol in the hands. Um, the world became a village, and this is really interesting. I'm gonna tell you, um, personal story that I really like, Which is for you to see the perspective off change. When I was younger, remember, my my father was always explained me a personal story of my family. He was the grand grand two times grand grand grand grandfather. Okay, so the grandfather off my grandfather, Actually, it was there were farmers, and he was in the east of fronts, and he was they were living in a valley where we add or ah, family house there. And it was five kilometers off the value. Okay. And my grand grand grand father, I was suppose to go when he was 18 years old. He was just before the first world world. So it was something like 1910 something like this and it was supposed to go to do is military ah, service for France. And actually he had two knew that he was not in his Ah, let's say vision. So he knew that he was in another very so five kilometers once again so enriched this point . And he has been surprised because that at the any was not in the other valley. It was in the surgery and I remember when we was young we were going by foot up to this fourth fortress, still existing. And he was exactly 13 kilometers. And this person, So my grand grand Grand father sends a letter to his mother saying because he was like, amazed. He sent the letter saying How big the word is. Imagine the perspective. It was 100 years ago. Now I'm living at the Ozer extremity of the planets were in a crossword country. And this is just for me. Fantastic. We can even dream about the next steps. Maybe my grant Children will talk about the people from different presents. Anyway, just let's come back to down to earth on the reality off the shipment. Well, let's continue with this demotion, this dimension off perspective because I will explain you then, for instance, the Silk Road. Now the days is only two weeks and you will understand when we'll see the shipment by sea and are so by air. How long does it take? Thank you for your attention. 3. 3 how to organize a shipment: Okay, so now we're gonna see how to organize a shipments. This is very important for me to present you the different terminology that you have to take into account. The 1st 1 is Eunice. Units means entreats summary declaration. It is once your production is finished. Okay, This is the deadline for the factory, or according to your agreements, the Inco terms that we would see later on. But let's say most of the time, this is the factory. The deadline for the factory to do the system declaration. We have the government. Okay, So this is the deadline of that, then the kiting or closing date, which is the same. It is the deadline to bring the gut's toe the port off destination. Okay, then the E t. D is estimated time departure corresponding to the real departure off Davison Ord flight. Whatever means of transportation, the E. T. A. Is the estimate Estimated time arrival corresponding to the arrival off the goods in the port off destination and last points is the delivery. The final deal is er the final delivery three toe the warehouse, which is equivalent of 35 days after the A. Because in between that and here, you have to custom parents with the customs. Okay, You have the tricking in between the ports up to the final destination for you to really understand better. That's lets me to take, um, more. Let's say easier way off presenting debts when you take a flight. Personal flight, for example. These could be an equivalent. For example, you have a flights personal flight from Shanghai toe London, for instance. You have a personal flight at 10 a.m. In the morning. Okay, so our Francis became Ah, 10 o'clock in the morning. All right. So you can imagine then, um, normally, you're supposed to arrive two hours before, and the limits is one hour before. So in that case, we were considered that e t. As the official departure off your flight. So it's 10 o'clock. Okay. This the cutting is the end off the checking. Okay, So is the deadline for you toe present Ula gauge. And you're a passport. So you would be something like nine oclock. The nearness would be the deadline for you to take online. You tickets. Something like seven o'clock. Okay. In two hours before the deadline for the chicken. Okay, then the E. T. A is the arrival at the final destination in the airport. Off shoulder goal, for instance. So you started at 10 o'clock. It's 12 hour. Ah, transit time. Then you have six hour difference. So you would arrive something like for a m in the morning. Okay, then you don't leave, I imagine In in shall Tegel Airport. So then you need to first to take your leg age. Okay, So this is the custom clearance. When you goods arrive in the port off, I'm still them or ah ah, wherever you have to take your leg age. So you have to take your goods to do you the custom declaration. And then you need to take the trek from the port of destination up to the warehouse. And the warehouse would be you home, for example. And former for France. I'm living in a in a little valencienne. I would say the trainer or in my parents are coming to pick me up, and I need still two hours. So at the end, I would be at home final destination at seven o'clock in the morning. You see a little bits, power it is organized and for you to understand better this notion off preparation for the difference deadline. So let's have a look within the production, the big picture off the production. 4. 4 case study: All right. So let's have a look on the big picture off a production, Let's say ends integrating the Transportacion If we take the example that I pots and we will see later on, which is the documents, Um, the documents. Eight. The example off the air if Q with the bath gold. Okay, there is a so explanation off the notes, documents a beasts. Okay, so in this case study, we have a new order. Meade's off July. Okay, then we have to integrate. And this is exactly what we do once we have another. And even when we have a quotation before okay, to make sure that everything will be on time. So, um, the sampling part. Okay? The development part, referring to the curse I gave for protection for Europe is roughly three weeks. Okay, so three weeks, it will be at the beginning of the production. So you have three weeks for protection. Sorry. Sampling process. Okay. This is just before lunching the prediction. You have the older here and you launch the, uh, sampling process. So seventh off August, You can start beginning off prediction. Okay. On this case study it is if we take China. It is 45 days off production. So 45 day off production will be at the end of the production will be 22 off August 22 of September. Okay, so this is the end off the production then. And why I insist on that? Because a lot of people are thinking end of production, E t. Then I put, for example, the delivery A can deliver 22 off off active a lot 80% of the buyers and dimension Isar I'm doing this mistake is not like this a toll. Okay, first, this is the end of the production. Okay? So you can be sure. Then you will check you in your production. You inspect the day after. So 23 do a first inspection final inspection. Most of the time you have some corrective actions, okay? And you have to let them revise the product and so on. Even if we are optimists. Okay. One day after you do a second inspection to make sure that they respect the the corrective action. And at least this is the 24 off. Ah, August. Then you have this two or three days for doing the DNs. OK, the decl. Erection toe the local government to declare the goods that you would ship. Okay, so it's 23 more days, so let's say 27. 27 off September with that. Okay, you have to had again. Three dates stream old days. So here is three days. Then you have stream old days for the kiting. Okay, so we have 13 off September. So it is E n s. And here is the kitchen getting once again This is the deadline for you to bring your goods to the port off departure. Okay, then. In between the getting day, the closing date is the same. You still have, Let's say a few days. Five days for the official real departure. Okay, so now this is the official E t. D. We aren't 10 5 Fif off October. Then you have the transit time. If it's by, see, for example, from Shanghai up to Europe is 30 days. Then it arrive. OK is not a good proportion, but it doesn't matter. Just for you to understand, you will arrive in in ah, travel. For instance, in our case, five off November 88. Then you still have um, let's say 35 days to do the custom declaration remained. Remember, The chicken you particular gauge back is not because the plane just arrived at four o'clock in the morning that you you go immediately and you arrive at home. No, you need to do the custom declaration. You need to take your luggage back and you need or so to go to your home with your train with your with the car. So this is roughly five days. Five Mondays, So at the end, you aren't. You delivered the warehouse off your clients 10th off, um, dance off November. Okay. So why am precise ing? That is because in this case, study, that's ah. Invites you to have a look, and we will way. We learn tickets for the for the calculation off the logistic costs. But just for you recalled in our case is the demand of the client was to be delivered meat off November. Let's send the paper. You gonna tell me that's fine? Okay, that's fine. In a China, okay, because he's 45 days, okay, But we have in our cases to option Option one was China An option two is Bangladesh okay. And China is 45 days, but in a Bangladeshi 60 days. In addition of that, always referring to the production dimension and recommendation Fresh reminder for the other months full above curse. But just for you, it's very important to take at least two or three weeks buffer. When you produce in China, there is always some delays. Even with the best factory and in Bangladesh at least one month. And else in the heart, sir, it means six weeks birth for what does it mean concretely here? Honestly, if I have this case okay, I will not take the order. Why? Because it's too dangerous. Then you have big change. You only have five days, Bill Buffer. You have a lot of chance than they ask you to pay. They're afraid and we're gonna see a few minutes. How much is different in between the air freight and the sea freight just for you to have Ah, without suspense, it is 16 time. Ah, More expensive on. Ah, the equivalence off twenties, six CBM cubic meter will explain you how big a tease area what it represents. So just to tell you on this case, study it is very dangerous. And what I wanted to mention here was this box. Okay. These parts, which she's okay. In between the end of production and the official departure, you have an equivalent off to ST Weeks. Okay, So the confusion, the mistake that most of the professional buyers everywhere in the where in the best Brown's best at quarter end of production doesn't correspond to departure. Okay, so this is very important to take into accounts, and I really wanted to precise it. 5. 5 how to prepare a booking: Okay. So very important. Step for the preparation off. A booking is to define the responsibility off the shipments. These a cure before signing a contract once again, if we're trading like mine. Okay, This is a trip, I think, in between two words. The demons. Okay, your clients, you consumer, you brown's whatever. And you factory the visibility, the production and so on. And you're in the middle of both sides. Okay, so now the question is gonna be with your clients, the responsibility, What you proposed to them. What's your agreements with them regarding the shipment? Are you managing it? You're not obliged. If so, what will be the scope? How big will be the part off the off the work and same question towards you. A factory. Okay, so for defining this kind of off responsibilities, there is a term. Okay, The name the international name is Inco Terms, which means international commercial terms. This is an official international lows. Referring toa certain different, um, steps off the responsibility. So now we're gonna defined the different Equal Inc attempts with the total the least. And I would say you which one aren't the most let's say used and the most abuse. Okay, so but concretely, what does this? Okay, it's a question of responsibility. But just in the few words the key point is the duties the right and the duties in between your buyer. Okay, your clients and you the sailor You are you factory. Ok, so let's have a look. You I put four different documents. The 1st 1 is really Ah ah summarize. Very short. Brief summarized. The 2nd 1 is more detail. The certain one. It is the exhaustive least off the responsibilities and the meanings off each in coup attempts. And the 4th 1 is differently. Ah, bigger. It's a big documents off 30 different pages if you really want to deepen thes dimension. But I'm gonna try to simplify and to make it very simple. So here it is the we can I go step by step? Okay, but let's say this is ink attempts because a lot of people are afraid about this term in Khatib's nothing very complex. Once again, it is a notion off responsibility. I voluntarily here in the middle, as am a trading. So I am in the middle in the terms off responsibility. In between the sailor so the factory and might buyer my clients. So then we gonna see where we put the tuner off the responsibility towards my ah, my my factory and then with my clients. Okay, so let's take a short example. Okay? If my factory doesn't do anything regarding the transportation, this is the minimum of the minimum, is what we are calling ex works. What does it mean? It means that the factory produced that sets. Okay, They just produce you, you inspect the goods, and then you ended everything. So they are not in charge of the custom declaration. They're not in charge of bringing the goods to the part of the culture. For example, in a bow in Shanghai, wherever they're not insurer of that at home. Okay, So you under everything your responsibility as a trader. Okay, The intermediary that I am, my company is in charge of everything, and my my factory doesn't that any responsibility regarding that's okay. Then I choose what's the responsibility I want, But most of the time with the factories, that X work or second option, what we're calling f f o b means freight on board. Concretely, what is it Two things if finished to produce. He organized the shipment upto the port of destination and is and feeling the the tracking up to the port of destination is in charge as well off the system declaration. Okay, so he's doing the custom declaration with the local governments as my concern in all the cases I'm working in F o B. It is the easiest way. Okay, I'm never walking in ex works, not because I cannot. I don't have ah export license, but isn't a big deal. I could use my transporter, my four other three to under it or using an is a factory. But his question off time consuming So I don't want I prefer to use and I invite you to do it fo be by in f will be buying in f A B is better. Okay, So the responsibility off my factory If there is a knacks ident trick, The trash of the trick here on the road is responsible. Okay, so the Inco terms is also notion off insurance. Okay, so I'm not in charge of that. I have no responsibility. No right. No duties off the goods. I become the owner of the goods Only here at this moment. Okay. On board. Okay then. So my responsibility starts here When came then. This is the old discussion with the responsibility towards my buyer, my clients, some clients andal and organized their own shipments. Okay, a lot of big groups are doing that so they can consolidate and and so you buy with your factory in fo be okay and you sell them in f o B. What does it mean? It is the easiest to ah possible. It means that you take the goods here via actually and that you give to your clients. Make it concretely. What does it mean? You have no responsibility. You're not in charge of anything. Okay, so this is easiest way. But the reason notion off service by n dealing the transportacion in the very most of the case often let's say for small companies medium company, they prefer we managed the transportation so the most known are safe and DDP Oddo Okay. What does correspond to that? See if it is the cost insurance and freight, it means that your responsibility the responsibility is finished here at the port off. Um revel. Okay, so the handling here. The custom declaration and bringing the good after the custom up to the warehouse is not your responsibility. Okay? Your clients take this responsibility sihf to be frank. Ah, few clients as that's except in certain markets, a lot in Africa, they prefer to use their own. Ah, they prefer doing their own custom declaration for different reasons. Sometimes they change a little bit. The commercial invoice. We don't know. Maybe sometimes some of them, anyway, just isn't it our business? But just the second most let the Inca Thames used is the DDP. It means that you're taking the goods here. Okay. For example, if you buy in f A B and your responsibilities upto year plus the custom declaration So you present to the customs different documents that we will see at the end. Three documents. See, I This is commercial invoice. We will see you some example and I put some examples here, but we will see in detail commercial invoice, the packing least the details off. What is which Garten's? The volume, the weight and so one and then Derby l. The bill off lady, which is an equivalent off the idee off you goes or a visa off you goes OK, so it is not very complex. It just administrative and just something that you will learn very easily with the course. So you present this documents and then you take the goods once they are custom cleared and you take the goods with track most of the time from the port off our evil up to the final destination the warehouse of the clients. If it's deliver in Amsterdam and your client is, I don't know in a Frankfort you still love from the two or three days off, tricking on two days off, tricking and you revert them Here it is the big picture off the responsibility off the major ones. Okay, so once again, there is five if you have to, if you want to deepen everything and we're gonna see more in detail. But just if I don't want to lose you there is five main ones. Toe keep in mind. Ex works. OK, you keep in mind that the factories is not doing anything, okay, is not in charge of anything, is not bringing the goods upto the final destination. The the port of departure is not end Dealing the notion off custom declaration with the local country is not okay, then The second very used in court Thames is f o B freight on board. This is most common responsibility is in charge off finishing the goods, bringing to with a truck up to the port of destination and then underling the system declaration. Then the served most known is C I f Okay, you're in charge off the old process, I said before, plus the transportacion that transits Ah, transit in between the departure and your evil. Then you don't manage the custom parents nor the tricking up to the final destination. The fourth most important is did you deeply basically, for this two cases you take the goods and you bring to the final destination. And the only exception from 12 years a one and paid and paid and paid. That means the customs. You don't pay the customs and for this one you pay the customs. Then is a question off agreements with your clients prefer toe Enderle and to do it is not a big deal. You including the price. By the way, I will show you how to calculate the custom duties afterwards. Here it is the big picture for globally speaking, summarized what aren't the Inca times 6. 6 summary of Incoterms: Okay, let's continue our journey on the road Off Inc attemps. So just to deepen a little bit more. And this is the document number two that you have, this is a little bit more precise and you can see differently. The organization is a notion of responsibility. Okay, so in arrange is the responsibility of the factory in blue. This is the responsibility off the buyer. Okay, But you can be in between. Okay. So let's say that's for each lovers. Of course, there is an impact on the price. As I said to you just when I finished before, If you are, you give a price to you to your client in you are in GDP. You include, for instance, for ah, don't textile 12% in Europe from China, we'll see the difference. Ah, different custom duties. Ah, let's say that it is included in your price. Ah e for example, you, by f will be Shanghai. Okay, including the declaration. Maybe your price would be $5. They can give you a price off X work. Maybe Will be, I don't know, 4.5. Okay, but it is important to be clear and to define at the beginning. Ok, once again, make it things easy. Walkway factory. I invite you toe work with factory in f o B. This is the easiest way. But don't I mean do that work with the factory eve? They're not able to export. U can has to your for weather to manage that or to give you a cheap Everything is possible . Okay, so this is the notion of responsibilities we can least all of them you can deepen read by your own. This is really not the goal. To be completely Anek spirit off. Um Off Inc attempts there is searching to be frank with you. Ah, this is really not complex. And this is something that you re learn with time. Okay, You will integrate the most important one. And you person am always using the same ones. I told you x work f will be safe. Did you ended that evidence of form? If you wants, which is slightly different once again. Is the notion off responsibilities? We've the different, um explanation off the ah acronym. Um, Makayla FC is a free career Freelon sheep and so one. So far so and once again the last documents is Document four is sooty pages on that I wrote a long time ago. So invite you if you really want to be a neck spirit Off Inc attempts, but the goal is not necessary to spend hours and hours on that. I just want that you have an insight off orders, its function. It works, okay? 7. 7 mean of transportation: Okay. Now you understood how it's the Inco terms. What? Harding Customs. How does it work? Now we're gonna see the difference. Means of transportation is important at the beginning. Off your older agreement with your clients to know which kind of transportation you want. So it's a very complex theories. Three kinds off means of transportation. Then there is mix. Okay, so the 1st 1 is by, you see? Okay. You used to see the 2nd 1 is by air, and the served one is by road. Okay, so by road, you have two different ways. You have by truck, okay. And by train. And then you have some mix. The most known mix is CNN Air. Okay. You use at the beginning most of the time, use you use C and then by air. I'm gonna give you some examples. Then you have some other Meeks like CNN Arop Restrict like can be year, so Ah, trick train. Ah, air. All the combination are possible. But just for you to visualize. And if we come back on you remember what I said to you? Let's focus on the distance in between China and Europe. Okay. You remember? I told you. Ah, let's say six centuries ago, before the sea transportation and the discovery period, he was roughly one year, 12 months in between China to Europe. Okay, then after the discovery century, it from Europe toe you toe China was six months now the days in between Shanghai and Europa Amsterdam or and 12 it is roughly 30 days depend off the company's but citizen between 20 the minimum of the minimum is 26 day, but 26 day, up to 34 days. But let's say roughly we say 30 days, one month. OK, then by air bite hair. It is two days. Okay. Why? Because it's taking more time toe to charge toe the witht flight. Then when it's arrived Custom clearance since one. So it is minimum two days. It is in between two days and five days. Okay, five days. You can imagine that it is not quickest one. It exactly the same principle than what do you use express? Okay, express. We vote doing advertising, but DHL or FedEx or whatever you pass, um, you can be delivery 24 days after and is more expensive than if you take the slowest 13 or 41 week after. Okay, So it is the same principle, then by road, just for you to keep in mind. Here is one month, for example, from Shanghai to China to Europe and by air is in between two and five. You see that you gain at least ah or most one month for weeks by roads. Ah, by trick trick is really used for lettuce. Small distance, I mean, not more than 3000 kilometers Trek is used from ah for Europe from Turkey maximum up to, um to Europe, Belgium or UK. It's taking seven or 57 or eight days. Okay, but not more. You don't do Ah, Shanghai to ah to hero by turkey with two. You would take probably three or four months and it will be danger. It would be dangerous. Vida Mala Yeah, this one is too dangerous. So it's only for in Quetta Marc Short distance Maximum street house train. I told you the train now's the days and this is really a key points. Ah, the Silk Road in Britain, China and Europe. The silk rose, regenerated by China is taking two weeks now okay, ends the plan for 2020. So in less than two years they plan to be quicker and to take in between seven and eight days. Okay, seven and eight days. You see, What's the perspective? The reason off my introduction with my grub. And to see that in the past from Shanghai to, um, China. We were using 111 year and now the train is seven and eight ah, days. And why I'm insisting on that is because in terms off transportacion, which is linked to the sourcing because everything is tangled Um, actually, we are competiting essentially with for Europe, with countries like Tok and Nose in Africa and Thurk A, for example in China were different, the cheaper but our So this is our competitive advantage. Whoever no later nohl agents who want let's say the quality now is equivalent in between Turkey in China ends. But the main advantage off China is the price. We're cheaper, definitely than tok. But in Tok, normally there differently. Ah, more rapid. Okay, it's 78 days and for by sea is one month for China. But now, with the new deal off, the train is exactly the same distance it still 3000 kilometers and 10 thousands and kilometers between Europe and China. But thanks to this new way of transportation, they reduce drastically the distance. Okay, then and I will give you Ah, it's a ratio off the difference off prices. Then we will calculate more deeply. But just in between all of them. And then you have CNN. CNN is a mix. The most known CN air from China toe to Europe, for instance, is we were stop in the Middle East, which is Dubai, Dubai or Doha most of the time. So it is, for example, Shanghai by sea of two door or to Dubai and then from there to Europe. It is by plane to e throw London or toe Amsterdam to Paris. Whatever. But in total, this season there is two weeks. Okay, so is a good deal in between sea and air because this is less expensive in the past. In 10 4012 let's say, than the difference in between sea and air was the half. Now, the days seeing there is 10% cheaper than air. It's not really a big deal, but if you have a lot of if you have a big delay and you have a big quantum Older, for example. 50,000 PC's off? I don't know. Ah, big product. I said to you that 10% is not neglectful. OK, so is the intermediary solution. If you have ah, consequence consequence. Um, volume and weight to ship and you have, for example, only two weeks delay. Okay, so just let's have a look on the proportion. The portion the parts off. I mean, the difference off the price If we based on the FCS 20 feet, I'm gonna explain you in a few minutes. What is 20 feet? 20 feet is a container? Um, not the biggest one. It is. Ah, small container. We've, ah capacity off 26 27 cubic meter. So for you to visualize it is 2.5 meters lengths, 2.5 meters here and the length is 6.5 meters. Okay, Just to visualize the volume that you can put inside, this is the equivalent off a family off four people. Ah, living in the 100 square meters. Okay, If they move out the old furnitures, the whole thing, they have in the house. The can puts in a container off 20 feet. Okay, so now you visualize better. How big it is a container opportunity. So if we have this to ship, Okay, it has a certain amounts. Roughly the coast is something like $2000 but by air is 16 times more expensive. So you see How much is it? You see, that is differently. More CNN is something like, ah, 11. Okay, depending Which company in so one. And the training is five times more expensive than okay, but it's still very interesting. And very it's a interesting It's better to ship by train off course by done by air. 8. 8 sea freigt volume calc: OK? No. Let's have a look on how to calculate the volume off. You see freight. Why? Because after that's we will be able to calculate the coast off your freight. So we have two options. Okay, I perform Shin is because there is some substance. The 1st 1 is L C L. It means low container loads. And the second option is an f c l f C. L means full container loads. Okay, this one concretely, you are, um you share the space off the big container with other brands of the companies and so on. It is not your own container for this three options, because this is a notion of sizes in this options. You, you you share, you don't share. It is your only you container. Okay, for the transit. Okay. So I will explain you the difference. Um, the different dimension. But I already told you so, um, 20 feet is a nick with violence off. I told you. Ah, 2.5 meters and haIf is 2.5 meters as well, and the length is six meters. Okay, so I told you just to visualize, you can put the equivalent off a house off four people saving 100 square meters. Okay, so this is the reference off. A container? 20 feet. Um, the major in container. Here it is. An equivalence off. Um, same portion. 2.42 point 52.5. And it is 12 meters. So you have an equivalence off. Ah, 60 cubic meters. And for this one, you have then cubic meters. So for you to visualize what's corresponding to that. Here it is. Uh um, You see the vessel. You can imagine how many species I mean container 20 feet. You can put on that. I let you think about that. I imagine some people think you can put 1000. Some people, maybe 5000. Some people will risk up to 10,000 containers on a big container like this. You can see exactly maximum 20,000 containers. OK, so for you to visualize 20,000 containers. I told you that 1 20 feet 1 20 containers. You can put the equivalent off the whole house off. Four people moving out here is an equivalent off a city off 80,000 people moving out. This is unequal. Equivalent off the study of homes in Paris or big statue room like in Madrid or wherever Wembley in in them London's. And if you want to visualize our big cities again, this place this multiply by two. It's street 323,000 people moving out. This is the equivalent off the old population off one country Iceland. Okay, so now we have the big picture and you can see how big it is. So most seriously, even if it's very serious what I'm saying, that's Ah, let's say let's continue with the calculation. So LCL I told you this is a big container. Okay, then you share the NFC l is with three options. So here is a 20 feet year, 40 feet And here h Q high typist. Okay, so 20 feet. I told you, Dimension here it is. 2.5 meter here, 2.5 and here is 66.5 meters. Okay, here it is an equivalent off 12 meters and hear something like 15 16 meters. How many? Ah, what's the volume you can put here is a bit less than 27 cubic meter. What are you a family off? Four people here is less than 60 cubic meter. And here is 70. Less than 70 cubic meter is important to integrate that dimension. Okay, so here you have. Why it is like this. And then I will um, gonna explain you how to calculates the volume. Okay, So you have Ah, let's say your students and you only have 10 captains 10 captains to move out to you. Goto, you're from London and you want to study one year in in Shanghai, for example. And you need you 10 cartons. Do you take this one? Okay, equivalent off 100 square meters. No, you will take this one. So this one, you will have an equivalence off 10 different cartons. Okay, so you little curtains are here. Okay? You have 10 captains here. Okay, it's here. And then here maybe, is h and M Here is Ah, I don't know. I Kia here is Ah, I don't know. Uh ah, no one there long. Okay. Anyway, so you share. Okay. The container Here. You hard. Okay. So now it is important to know how to calculate a volume. Okay, So volume, for instance, very often. And this is operational experience. This we take and I take personally an export caftan. Okay, off 60 centimeter by 40 by four p. Okay, so these multi all points seeks multiply by Oh, point for multiplied by open for music equivalent off all point. So Oh, point or 96 we can round up of two 4.1. Okay, so one cotton is one CBM. Okay, So it means that you have 10 captains, which dry by 10. You have one CBM. So you see that you are far for feeling. Ah ah, total container evil. A small hole in here. You would have bean the same here. Okay. You just fulfill here. Okay. Is nothing. Almost nothing. That's why you share here. Okay? Now is interesting once you know that, that we calculates and we're gonna do some examples. Okay? My first example is I have 10,000 pieces. Okay, 10,000 pieces and ah, I can put 12 pieces here. 12345 And so on. 12 pieces. Okay. I can put the packing least is 12 pieces per cattle. Okay, So with 10,000 pieces, what is my volume? Okay. So simple. I divide 10,000 pieces divided by 12. It is 800 something is 834 captains. Okay. Ah, I take your point. 0 96 for each. Carlton. My total volume is eight. Roughly 80 c n. I have 80 CBM where I put my 80 CBM simple. I will check because 80 CBM is quite evey Um, I can put here. Yeah, I can feel feel one container here. Yes, I can. Okay. I can put the equivalent of 70. Okay. So I will use one here and then I see left 10 CBN. Where should I put it? May be here. We I would share with another one. Okay, let's take an example. Another example. You have Ah, 3000 sets off three pieces off. What? I don't know what You sure pulled or whatever. And you can put 18 species there, Captain. 18 pc's forgotten or six sets per cattle. Okay. Here. How do I calculates? I calculate 3000 pieces multiplied by three. Okay. Divided by six. Okay. And I obtain Ah, an equivalence off. 40 c b. M. So in that case, where should I put my volume? I share with some people Know. Do I take a big one here? 48. Yeah, I can take this one, but to be frank, I will fulfill up to here. Okay, So the little bits Ah, useless. And I'm gonna pay more. Expensive him for something I don't need. 60 is less than 16. So the maximum you 60. Yeah. Sounds good. I have an extra 10 for nothing, but at least here I cannot. This is not enough. Okay? I don't have enough space, so I will take this one. Okay. So I hope it's clear for you now. Um, I'm gonna show you right now different options to know what is the most interesting and in terms off break even point. 9. 9 lcl or fcl: Okay, So the example I just wrote before you have them in the documents. 10. Ah, basic basics. Shipping. So now what we're gonna see is the break even points in between LCL and FC L. At which moment is the limit for which it is more interesting to go toe hcl Or else Yet? So first, the notion off. How does it work to calculates? Okay, so first example, I have 500 laser jackets, okay? And I puts 10 pieces per cartons. Okay. Saying dimension, 60 centimeters by 40 by forties is exactly the same. The same science that you use for your personal moving. Okay. So you can put you can visualize how many pieces you can purchase. Laser jacket is quite TV. You can put 10 pieces. So we around that open one for 1.1 cubic meter cattle. Okay, so I have 500 pieces. Okay. Not complicated. You divided 500 by 10 cc's per captain, you have 50 captains, 50 captains multiplied by the U. Needs volume off cartoon open one. It is five CBM. Let's have a look. A container of 20 feats costs the fixed cost. I mean that the fix goes because it's changing every month. But for these quotation, it is 1500 for a small container, only for U F C L. A. 40 feet is 20,000 and h Q is 2100. I just make you the remarks. You remember the proportion DC's 27 maximum. Here it is a 60 CBN maximum. And here is 70. Just a short remark it between both of them. There is only $100. Okay, and this is often the case. The difference in between both is not really important. Despite the fact that it is then CBN more. It means that when you optimize and this is all the question about optimization in logistics, if you have more volume, you deal utes the you need cost off transportation. That's very important to mass. If I and to consider the dates with other client that you have this is extremely important for this point. So for this one, if we take ah, our private small container only for us, we will pay 1500 here If we have LCL. It's all most of the time. Is working like this in between is like a cage in between one and five CBM, you will pay $60 per CBM. Okay, you need price in between Sikhs and 10 CBM, you will pay 55 is the greasy and then in between 11 to 20 you will pay 50. So in our case, we're here. In between we have five. So we are paying $60. Okay, but there is for l feel you have always been a charge off. Five fix coast $500. Why? You remember? You have here else yell you have you 10 PC's, You tend Captain Serie sharing with her pkr Ah, a woman. Ah, and Swan. Hmm. So is more complex. Okay, if you have a final delivery with your own container Ah, you don't have to unload the container into shape because probably that's the delivery off your own. 10 captains, maybe you you leave. I don't know the Nofal fronts or in Belgium. Zara needs to be or an h in. It needs to be the river. And I'm still down. Ah, and so far so? So all of them. You need to split up at the end. So once you have your own container. It is less complex. So that's why there is an up charge Fixed coast and it is usually taking more time. But just for you to know that systematically, you have enough charge. But even that with that's okay, So you pay per CBM So five CBM military like that 60 it is 300 CBM press A 500. It is 800. So you cost of shipment here will be 800 compared to 1500. So it means that you cost unique course will be these divided by this is something like 1.25 okay for pieces This is the first example. My second example is exactly the same except that here we have 11,000 pieces Same principle we divided 10,000, 1000 divided by 10 We have 100 captains supplied by the U need volume It is open one it is 10 CBM Let's have a look. We still paying Ah 1501st option If we have our own container If we share the container this time we are not paying 60 per CBM We're here in between six and 10. We are paying 50 and $55. The CBM who came to light by 10 CBM 550 plus $500 which is 1050 which is still less expensive than 1500. So that's why I put in red and year in the green is more interesting to keep for 10 CBM a else here and last option can imagine that he's gonna be violence. Ah, not big suspense. So here we have 2000 jackets. Okay, so 2000 divided by 10. We have 200 captains open one Ah, you need volume is 20 CBM In my case, if you are taking f series 1500 here we are You were paying per CBM $50.50 dollars mistreated by 20 Ys 1000 pressed 500 is 1500 voluntarily is equal So it means that the break even point at this stage is 20 CPM is not always The case is changing every mounts on most but is around that is in between 18 up to 20 CBM But conclusion for that I would take obviously this one Even if I have $50 difference, I will take this one, because here it is quicker You don't have any Ah, load to do you Container arrived in you port off destination and immediately is not opened . It is image likely shipped to your final destination here It arrived in a in the port off Revel It is open. They take the goods your goods to take the goods off. Czar off. Ah, Ikeya and so on. And there Putting in another container so it takes more time is more risky. The more you Enderle things, the more you have a chance of them. Age for you, Captain. Essentially, if they're not good quality, So I will preferred the option. This option, okay? 10. 10 air freigt volume calc: all right. I hope it's clear for you now how to calculate the volume off use. Afraid. Now we're going to see how to calculate the volume and the weight off the flight. Okay for you. Ah, transportation by air. So here it is to visualize how it is organized. This is Ah, small books that you have and you cannot ship the same. Let's say volume. Okay, But the in Quetta mark the difficulties To calculate the afraid is the fact that we choose Isar the volume Isar the weights. Why? Let's have a look on an example if you're shipping a pillows. Okay, The wait is nothing. Okay, Because in a plane off course there is a limitation but pillows taking a lot of space and it doesn't. There is no wait almost. But if you compare at the other extremity, if you're shipping some tiles, sometimes it is very heavy and it is not taking a lot of space. So it means that's the low off the calculation for Ah, the air freight is always like this. We check both the volume and the weight volume. Okay? There is a formula to convert and we take the most expensive is not sure. You have tow the choice. This is the company the air freight company was calculating for you or you calculate. But at least the charge you with the more expensive. So there is to me, thirds. The 1st 1 is dividing. Um, your volume by six. And the 2nd 1 is to multiplying by 160 seven. So let's have a look right now with the calculation, But just for you to have a look on the freight so you can imagine this little plane. It is Boeing 7 747 or an Airbus 100 surrendered 80. This is a big cargo freight, so you can imagine how big it is is in almost Okay, you can put a lot off. Ah, it's a goods inside. Well, let's have a look on the calculation for with these two techniques, once again regarding the documents 10 yet that you can visualize quietly. I mean, and afterwards, so dividing by six. Actually, when you divide by six, it is when you talk about, um, the EMAS cubic. Okay. Either you divide the C m to beak by 6000 or ah, cubic meter divided by open 06 Its return year. The calculate ERM formula. So let's take an example Wave meat necessary Minibar. OK, Mini about the weight is 80 kilos. The dimension is 50 centimeter by 50 centimeter by 50 The cube. Okay, the actual weight is 80 and it is Ireland. We're going to calculate the volume weight. The volume weight is 2020 kilos. Okay, How we do we can create the volume which is 50 by 50 by 50. So 125 cubic centimeters or 125 cubic meter and divided by ifit's centimeter cubic centimeters divided by six 1000. We obtained 20 point. It's a 21 and the same for the calculation. If you divide 125 divided by six you think 21 What will be because we're always calculating According to the the weight multiplied by Ah, the unit price off a que Okay. But on this on on this calculation, we will not take the volume weight. We will take the real rate. Why? Because here is 21 this one is more important. So we will calculate 80. So it will be our reference. Okay, so, 80 we will We will pay on this basis. Second example is you have eight books is with a total weight off 45 kilos. Okay, so, um, the old eBooks ease off the same size. Each boxes 60 centimeters, multiplied by 40 by 20 centimeters. The real waits. Sorry. The volume weight is 64 which is higher than the real weight 40 45. So we will take that as a basis to calculate. So how we obtained that we obtained by misapplying and eight books is multiplied by You need volume. So 60 by 40 by 40 you obtain, um, street under 84,000. Cubic. Sentimental divided by six is 64 64 being more important than the real Wait. We'll take that as a basis. And maybe the rate visa. I don't know. $10 per kilo. And so you cost will be $10 multiplied by 64. You will pay 640 not to really wait 45. Why? Because once again, this is a notion off volume and weight. What is the most important? Because if I take the example off the ah, you take a big container equivalent of container off pillows. The wait is nothing but the volume is enormous. So it will take the space for other products. You understand the point, but this is the point. ERM the principal. The second method is to multiplied by 167 your volume. So I take voluntarily this notion of pillows and ties for you to understand better. So the price off, Um, the price of the freight airfreight is 3.4 per kilo. Okay, so I have another off 10,000 preseason and won. Captain is 60 centimeters by 40 by 40. Okay, it is my stander. It is open. 0 96 cubic meter or CBS. We put 10 pieces per capita. So what is our volume? 10,000 pc's divided by 10 1000 captains multiplied by open or 96. We obtain of total volume off 96.4 CBS which is for you to visualize it an equivalent off one h two plus O. K. So these miners this it is Chris, another container, 20 feet. So is a lot off things to ship by air. The rial weight off this pillow is 300 grams. Okay. 0.1. Open 33 kilos. Total weight is, um 0.3 kilos. Midst, probably 10,000 street, 1000 pillows or three tones. Now we're gonna see what will be used as basis. OK? My real price is 3000 kilos. Should I multiply 3000 multiplied by this? Let's have a look. So if we multiply this by this, we obtained 10,200. Do you think you're gonna pay? You gonna pay that? We get a check. 10,000. We will take the more expensive you remember. So my volume is this 96.4 that I will multiply it by 167. And if I multiply these by this, I up 10 16 1099 in terms off volume weight. And this is my basis to calculate my air costs. So I will calculate this multiplied by SRI 0.4, which is an amount or 14,000 something conclusion. It is definitely more expensive. And we will take for this example not at all the weight but the real weight. We will take the volume rate because once again, pillows are not he. But they're taking a lot of space. Okay, so that's why I invite you to read from your site. Second extreme example for you to understand that really well. Ah, is tiles okay? So times I have another off 2000 times. Um, the volume of them off one tile is one meter by one meters, a one meter by one meter and it is only open. One is 10 centimeters. You put 10 tiles per cotton. Okay, you can put five captain on a pallet. One pallet. Volume is one meter by one meter by ah one. Return open. Fight the volume. We don't talk about pallets. The volume is 10,000 times divided by 10 2000 captains. Okay. Divided by five. We obtained 40 pallets. Okay. And okay, so it is 40 pallets multiplied by opened five CBM. We obtain 20 CVM. My total volume for that is 20 CBM. Okay, but what about the weight of that? The weight off a single tire is 2.5 kilos. Okay, So 2.5 minutes fly by 2000 PC's 5000 kilos or five tones. Okay, So is it my basis 5000 to calculate the cost? OK, it's 3.4 per kilo. So should I calculate, Dismissed. Supplied by the real rate All the volume. Okay, the volume he was with. So he was Ah, 3000. The weight, the weight volume. Ah, it is street 1000 street 144. Ok, Why? Because we multiplied 20 CBM multiplied by 167. This is the formula. You multiplied your volume by 167 urban 67 end, you obtained the basis of 3300. So it is less than this. So in that case, as it is Ive year, we will take this as a basis to calculate our real coast off airfreight. That's to say, 5000 multiplying kilos multiplied by 3.4 and we will pay $17,000 for the freight. Here it is the calculation for a efforts 11. 11 price breakdown: All right. So for the moment we saw the the freight, the freight coasts for transportation by sea. Oh, by air for you to have the big picture off the price breakdown for the logistic coast, there is ST parts, the shipping coasts, which is what we so for the moment the freight off the French coast President insurance that I'm gonna present you in a few minutes. Arable charge. Same. And then the custom duties explaining you the principal, the reason why and secondly, how to calculate and the impact on your final price. So why an insurance at this stage? This is not compulsory, but it is highly recommended. So so far, You know how to to calculate that at the end, I explain you. And then we will do two different case study for you to really see, um, the big picture within a riel case. So the freights and why an insurance, Actually, I told you is not compulsory, but highly recommended. You can understand the reason why if you don't take insurance, you're not reimbursed at horse, so it means that it is a complete loss for you. Okay, So how does it work? A any m the coast off in insurance An insurance hume. You take the basis of what you want to ensure, but it is not compulsory. Once again, the basis can be either the buying price or the setting price. Meaning that's it would be up to you to decide what you want to be. Rambles knowing that's take an example if you buy 10 from you factory and you re set Swinney for you on to your clients. If you ensure on the basis of 20 you pay more expensive your insurance. But you're more reim. Boast if you ah take the basis off $10 it's still possible you are paying less insurance, but you're less remembers. So now I'm gonna show you how much concretely it is. And how is the calculation? You take the amount you want to insure, Maj. Ords by 10 percents. Okay, and you multiplied by 0.35 person or humid. Bye bye. Oh, point double o 35 Okay. And you obtain the amounts just for you to have ah 90 if you have another with your clients off $100,000. So in DDP, for example, the you want to ensure that's OK. It will cost you $1000. 100,000 residents supplied by the Madrid by 10%. It means multiplied by 101.1. It is 13 111,000. Multiply by 0.35%. At the end, you will pay street $185. Okay, so here it is important for compared to that, yes, but not that much. I really advise you never take the risk toe, make some economies and to save money without taking a knee insurance. Then why choosing these basis off your clients or the basis with your supplier? So I sell $100,000 with my client and I about 50,000. OK, why, um is better Thio thio to ensured on the basis of you sitting price because otherwise, if you're just re import, if your rim boosts by $100,000 if you're reinforce off $50,000 it means that you don't do your marching. Okay, so it means that you work for nothing. Your rain bows about the purchasing price and the purchasing value, but you're you just work for three or four months, maybe, but for nothing. So why is important to take the basis off? You're sitting price. It's because it is taking into account your margin. Okay, So very important. Now, if you come back on this previous slide here. So now you have the shipping coast, the freight itself. Okay, the container coasts or you airfreight as we so plus your insurance. Okay, this is your shipping coasts. Now, if we want to have the total allergic logistic coast, you have to add your origin. Origin are evil three charge, press you custom duties. What aren't You are evil Charge. I'm asking to go on the document. The same documents I am. I gave you the number. This is the dog. 10 which the name is basics Ship ing's. Okay, so this one corporately what are the arable charge? This is some charge that you pay in the country of destination. So there is different charge. OK, so ah bl Phoebe l is what We will see one off the document you have toe to show to the customs when you arrive. I'm always comparing toe a visa. You have nothing to declare to negotiate with the authorities. When you arrive with the customs, you have to pay the visa. Otherwise, you don't enter in the country. Same for exportation. Importation. You have to to pay this fees. So there is fees. So, Ariga charge you have released of different fees. BL fees. You have the end ending fees. It means that, sir, Just the fact that they take you container, you know, and the part independently off the research there is a coasts. Then you have some immobilization because they put you container in a certain space, and then maybe it's gonna be taken two or three days for the custom to check your container . Okay, so you're chewing. And this immobilization cause someone is like a hot fell for your container. So there is some fees. Okay. The and stuffing. Same. The fact to handle the thing as an impact the politization is optional, but some clients retry it to take you goods and to put on pallets and so on. There is ah cost. Then the tricking. Because once everything is done from the ports off a revolt, for instance, I'm still done or ah, and felt. For example, if you have to deliver Frankfort. You still have some trick to pay. Okay? From this port off rebel up to the final deliver. So all this there is a least of different coasts that you will be charged at the end. So now we're gonna see how it is as a total impact just after the fact to talk about the custom duties. Okay, so, third, step off the calculation of the logistic Coast. We have the shipping coasts, which is made off freight plus insurance. We have the original charge. Now I'm going to define what is the custom duties. What are the kiss, Tim DT's. What's the principle in and how to make the calculation? So what is the principal of the custom duties is simple. Basically, it is linked to some agreements in between the countries. And very often it is linked to the notion off protectionism. Okay, you have some, Let's say, a commercial area, for example. Uh, in North knows. In America you have Ah, here in Asia you have Asian. You have Ah, in Europe, the European Community. There is no tax. I mean, the custom duties in between the countries produce seeing ah in Portugal or in Romania and you can export to Germany or to Poland or wherever within the sea. European community You don't pay any custom duties. Why? It is essentially protectionism. For instance, if I take my background, my sector industry Europe is a continent off textile in in Portugal and in Spade in Italy, in front hysterically in Eastern Europe. So if we don't have this industry in this area, off course, the rate will be super Liu OK, And according to the agreements and what you have in this area, the country are increasing the rates. Okay, so there is, ah notion off hs code and they shades code. It means the harmonized system code which is on them there is Ah, it's a different released completely that I don't know by hurt off course that you asked to your foe other Ah, and you check according to the product you want to export. You want to export that you want to export Dutch want to explode? That's or close its referring toe a certain HS gone and these hs codes giving you the rates , the custom rates and the system rates depends on Sri aspect. The 1st 1 is the product itself. Okay, The 2nd 1 is, um, according to the place off production. Okay. The country off production exportation and certain This is depending on the importation country. The location off the, um, the market. Okay, So sri aspect is depending on the product itself is depending on the location off production and is depending on the country off the market off the reception. Okay, let's take some examples. Um, let's take four. Once again, my my sector industry exciting industry. For instance, if I produce year in china as T shirts, Okay, it t shirts. Um, in a 100% cotton. Okay, um, I producing China. I export to Europe. It's 12 persons. Okay, then. The same T shirts it is produced in India, for instance, and its export to the same country in Europe, for instance, Belgium, it is nine persons you see is different. I could insane product, same destination, but different place of protection. The friend system rates If I produce in Bangladesh the same product towards Belgium, it is zero g sp free. It is zero custom duties. If I produce the same products, um, in Myanmar toe words exporting toward Belgium. It is zero persons same example with, um with those same polo producing Bangladesh exports to Belgium might argue is zero persons . But if we produce the same polo and we export to United States, it is nine persons two years back, United States and Bangladesh at some agreements and he was just be free. He was zero persons resident e for geopolitics reasons and states in Bangladesh at some dispute. Let's say, because let's say Bangladesh's giving more, um, business with China. So ah, states blame them and the soak it stop. We stop now and you will have you custom duties. And please um well, they have been invited to Regis the business with them. So what did states concretely the air establish some special agreements with another country which is Vietnam? If Vietnam, if you produce the same polo ah, in Vietnam and you export to state is zero presents And if you produce the same T shirts off same patisserie and you export to Europe, it sees 9%. Why? Because they visit some special agreements. So you will have understand. That is depending on the place off production and also the place off destination. The market of destination according to some political reasons, and are so it is linked to the product itself. Okay, if I take my man Poteau, it's 12% from China to to Europe. OK, but if I'm still in textiles or jacket coats, it's 12 persons. But if it's we've if we changed the product and the composition if it's leather jackets. Okay, leather coats produced in China export to Europe it is 5%. Why? Notion of protectionism? I told you because in Europe we don't have so much leather. Okay, so we need this kind off items were not producing so much. So this is the reason why the rate is less important. There is no merch barrier at the entrance off the continent and at least 5% like this is the business. But anyway, if less important Ah, it is composition. But or so the product itself Um, the same jacket produce okay in China, export to Europe. It's 5% I told you. But the same Ah, romantic. Here, for instance, is a bufalo. Ah, follow leather 5%. If you take the same skin soba fellow leather for wallets, you will be not 5% anymore. It will be 4% by protection examiners. So probably there is still less. Ah, this kindof product. So to resume, I can give you much more example. I don't know them off course by her to just question of experience and is changing or so over the time, but three things to keep in mind. The HS code is the code ah, linked to different product itself. But the system rate is based is due to the product itself the country of production and the country off destination. Now we're gonna see how to calculate to custom rate according to these vipers and 12% yes, but on which basis simple. It is based on the seafood. Ah, cost. See if cost it is referring to the Inco terms receive. It is cost. Ah, Costa Freight and insurance. Okay, cost insurance and freight. Okay, so it is. You have your purchasing price. You buying price from your factory. I buy 10. Ah, you add you transport Transportacion cost you container coast plus your insurance And this is your basis to multiply by the custom rates. Okay, so this is only death and not more complicated than this. We can, ah, look on the big picture and then we will see an example. So if you want to see the big picture for in between you purchasing price and you sitting price of purchasing price from the factory and you sitting price is the price that you have with your clients. So it's a I had here the coast of quality control. For example, if you outsource referring to the curse I gave for protection. Well, you have. You had this coast to purchasing price, plus the transportation cost. That's to say, a freight are evil charge, plus the custom duties. Press your mountain, of course, and you have Thank you. Setting price. Here it is the big picture off their let's say, shipping costs. 12. 12 casestudy: Okay, so now let's take a simple example for you to calculate a parish in elite your margin or you sitting price short. Example. You have photo 5000 on PC's that you by $10. You, um you sell its 20. You're setting price will be $20. Okay, so now we're gonna calculate our margin. Okay? You're starting by $20. Included the transportacion to custom. You imagine? It's one. This is the targets price from the plants. So you know that you need to buy ou by basically at $10 then we're gonna see what's different. Size, break, price breakdown. And you would see your multi Well, so you can put Ah, the different species are for instance. Ah, I don't know. Pull over. So you can put 20% per captain 60 centimeter by 40 by 40. Okay, so we took it easy. We round up at open one CBM for a captain. Okay, So 5000 pc's divided by 20. Pc is the captain. We have 250 captains. Okay, so we have 2250 captains Mitt supplied by open one CBM. You need volume off. Gotten. We have Think 25 CBM 25 CBM. Where do we put we use? No need to calculate. We know that it is close to the maximum off one full container. Full container load. F C l the smallest one, which is 20 feet. Okay, maximum is being 27 So that's perfect. We will use a container off 20 feet. The amounts the shipment for the container is 1800. Okay, because it is the peak season is a little bit more expensive. My setting value is I said to my client, I said to you $20. Okay, so my volume mayor total invoice will be 20 multiplying by 5000. It means that I will shape $100,000. Why? I'm calculating. That's you. Remember what I said to you for the insurance? I will calculate this multiplied by 1.1. Okay. Multiplied by 0.35 person to calculate. My, uh, my insurance. I know by experience that this is one street 185. So what will be my basis to calculate my custom duties? Simple. It is my purchasing value. Okay, I by, um Ah, 5000 pc's at $10. So it is 10 multiplied by $55,000. My shipments. One container is 20 feet feet. Three. He's at 1800 my Insurance Coast. I told you, based on the sitting price setting value that I sell $20 to my clients. But probably the quantities 5000 PC's. It is $100,000.100,000 dollars, multiplied by 1.1 but supplied by full points 35%. It is ST 185. I add the's pres Desprez. This is my safe s I f cost and this will be my basis to calculate my custom duties if my product, because I produce in China, I export to Europe for so tonight them it is text item is 12% or if I produce in China as well to, ah, Europe as well. But if if it's different, I terms is a lesser it would be 5% so 12% on the basis of 52,185 it is $6262 that I will pay to the customs. And here, if it's the basis off a leather jacket for instance, it would be 5% on this basis, which is 2609. So if we want the big picture, I can tell you, you know, the different arable charged a bl fees the and staffing the Politization tricking. And so when I give you the full back age and you for water can give you the foot by cage, Um, it's for instance, $8000. So now we have the old information to calculate all Margie, we said $20 multiplied by the quantities off 5000 PC's. It means $100,000 miners your purchasing value minus your freight coast. That's to say you container minor issue insurance 385 miners The custom duties in the option you're doing, for instance, textile in producing in in China. Exporting toe to Europe Hype it That amounts to the customs Miners. My arable charge so thes minus these miners, these minorities minorities minded this IAB 10 37,553 which is what my margin. This is my marching. These divided by this might rate off margin is 37.5% second option, same story. Except that year I pay ah 5% off custom duties on dis items. My margin Indian will be tricky. 1000 something So my rate is the rate of margin. Is this divided? By this? It will be $41.2 If you are producing in Bangladesh you remember what I say to you. There is no custom duties. Okay, so you arrived this to pay. So you see that if you buy the same price in Bangladesh or in China since to be the same thing but that the air evil is absolutely not the same Because you will gain 6200 or something more in terms off marching. So here you will mass If I Your margin Ah, it will be something like $45,000. Instead of gaining $37,000 in China, you see a little bit the big picture here. It is the first example 13. 13 rfq: Okay, so now let's have a look on. Um, err if you request for quotation that I started with another course, Um, for Soucy. Okay, So you have the old simply year. You have also the old literature to explain the reason why we choose thes or this supplier . I can just do very short summarize for you to understand. But at the end, what will be interesting is to calculate with this template the final cost. Okay, so just let's try to do a short, um, summarize off. This documents the documents give you different quantities on that You have weaver targets . Okay, so you have three options off requests for new clients. Okay, It is produce eyes during putting them in china. Isar in, um, China. Okay, this is a textile product. You have first option 50,000 pc's 75,000 PC's or option three, you have 100,000 pieces. The target price of the clients DDP. It means the final with this at the final destination is 4.5 euros. But you will pay in dollars and the equivalence with the forex. I mean, exchange rates dollar euros is 1.23. So This is just the mortification it is. You need to to reach $5.54. So we use our product sheets. We check the different quotation off the different suppliers. And in final, we obtain this one and this one the best one. Okay, it is more details in the documents I put which is the document? A bee's nuts off the case study. But just for you to understand more the logistic expects. Okay, so But anyway, two finalist. The 1st 1 is in China $3.7 the 2nd 1 is in Bangladesh. Okay, apparently doesn't mean I mean doesn't seems to be so different in terms off price and the through that is only $0.5. All right, so Ah, the stage. If we have 50,000 pieces, we could say that it doesn't forfeit because is only $2500 different in terms off marching at first sight. We think like this. We will see later on that it is absolutely not the case. Here is the metrics to take a final decision really well explained in the documents. But we are not here to see the sourcing part. What's is important here is to calculate the coasts off the shipments and the custom duties . So here we are in China. Okay, so we just take the first example off 50,000 pieces. Just a remark. You have also the documents completely commented. Okay, what is referring? Toa what? These quantities and so one. Okay, So you have different documents. Document on the D one d two. Okay. This re explaining exactly and precisely what he's corresponding. Toe. What with colors. We cannot be more precise. But now I'm gonna explain you early. So here it is, the quantities that we will have in the first option. 50,000 pieces I buy in china with the supplier in China. The fabric done the factor in China $3.7. Okay, so the metrics is calculating. I put a template for you too. Toe in pilot of that, the this metrics for you toe template for you to calculate by your own. Okay, So this calculating immediately according to the quantity you put in the price. So it's calculating the amount, the buying, the total buying amounts. Okay, So these motivated by this, then you can had to that some fixed coast or different valuable cause that you will have no , simply in Khost. Here you have. You plan toe send. Maybe I don or 10 different express with the h l o r. Whatever. And you plan to spend $200. Okay, so you put it here. Is the cost off? Um QC quality Control. This is referring to the course I gave for Ah, Chapter three, Let's say which is one Monday. One Monday is Ah, an inspection. When you outsource Weaver served party like as gs. Like bureau veritas. Like Jude, this is different bodies, different organism that you can find on Internets and you book online and they do your inspection and you pay roughly 250 up to $300. So I know that I will need DP I means during production inspection. So it will be a need in line inspection. It means that during my production, I plan to do four different Monday's. It means that I will do four different inspection and for the P s I P size. At the last stage of the production, it is pre shipment inspection. I plan to do two or to send to people because it will be a lot off quantities. 50,000 pieces. Okay, so in all I will have six inspection six infection which supplied by the coast off. One inspection is 2050. I will pay and spend $1500 for the Que Si part. So these plus my purchasing costs. That's Osama unit price multiplied by my quantities. They attend this amount. This is the first step then. Harmon, What's my volume? For us, it's carried calculating or so automatically here. According to the pieces you can put in this shipments. This is Ah, Bath Goan. You can pert in accountant export off 60 centimeters by 40 by 40. That's to sit just under an open 0 96 CVM in I round up toe open one you can put 10 PC's. Okay, so what's My volume is not complicated. It is 50,000 PC's divided by 10. I have 500. Ah, 500 captains year divided by 10. Do you get by open? You want? Sorry, I have 550,000 CBM 500 CBN. How many container do I need? Simple. How do I do? I do 500 divided by, um 70. Okay. Or 69 Let's say. And our obtain seven point something 7.20 or between seven points. Two and 7.3. So I have 17 big containers. This is a point. And then I still have left some extra CBM for which I choose to take a small container. And with this eight containers. Okay, a small one plus seven big ones. I can covert and integrate and sheep. My five hundreds. Okay, the coast off a container here. A small container is 2100. The coasts for a medium container is 3904 big containers is 5 4000 Actually, it is regarding the quotation I received from my my, um, logistic partner. So this is a document I gave you, which is document for explanation off An example off logistic costs. Okay, so this is according to the destination, the departure. So here is from Shanghai for Ningbo pump tions N for Chittagong going is in Bangladesh. Okay, so I know that I will shape from Ningbo. Okay, because my production is in Ningbo. I ship two from Ningbo to the final destination off my client in France. Okay. Through lab. So here I choose. I have the choice. I preferred this company. So the price off one container of the small one is 2100 major. Morning, 3000. Ah, 3900. And for this big 1 4000 this is exactly what I put here. Okay, 2000 2000, 104,000. So it's calculating automatically. These men right by this is 2100. And for this one, it's seven minutes played by 4000. It is 28. So 28 2100. This is my cost off shipment. Okay, it is. Ah, 30,100. Plus my insurance, my insurance. It is my finally setting cost. I told you a my sitting costs were supplied by 1.1, but right by four points, 35% or or point or city five. Okay, is automatic. And so no need to calculate by your own, but my amounts off insurance is 1064 dollars. So these pissed afraid will be my basis to calculate my duties. Okay. My custom duties are 12 persons and it is calculated on this basis, dismissed right by 12 80 years or it dese plus. Excuse me. This amount the purchasing coasts will be my basis to calculate my custom duties. Then this is second step. This is the calculation off the d u charged arable charge. OK, so BL fees handling fees and so on. Actually, if I'm referring to the costs off, um, are evil charge here? The DP charge are evil charge I ever FC L Okay, so I need to check all what I have to pay. Um, arable charge per container is $200. Okay. My THC. The city's tax. I have to paper continue is $180 then the delivery from my port off our evil. Up to the final destination is 450 per container. Place a service charge off 17.5% off you. You have only three things to calculate. $200 for euros per container are evil. Charge plus THC 180 plus 450 per container placed a charge. So charge. So here it is. We have eight containers. You remember a small one and 71 So we have eight containers here we can calculate 200 euros plus 180 euros. The rates dollar euro is 1.23 so 200 euros multiplied by 1.23 to get the price in euro in dollars or plus 180 euro McBride by 1.23 multiplied by eight containers. Totowa charge is 3739. Then the tricking you remember tricking was 400 in between Abbott to ah a vortices know monte it is 450 euros per container plus the charge of 17 point fight person Simple. What is it? 400 euro 150 year olds multiplied by 1.23 for the exchange rates dollar euro misapplying by the maturation off 17.5 for the so charge off fuel multiplied by AIDS because I have eight containers in my total arable charge Or did you charges this prison is 9842. Then I obtain I have my basis to calculates the total. So this is the purchasing price that I have previously here plus my shipping coast plus my custom custom duties and this is my basis all included. It is paying 258th. If I want to reach the target price off my clients, which is 4.5 euros equivalent toe, 5.53 dollars. I June. We've my gross margin percent percent age. Okay, So I puts and to finding the good I do find tuning. And so I obtained 6.3 percents off Margene to obtain the target price which generates for disorder $17,000. Okay, if I take the example off Bangladesh, I invite you to do it. Um, you obtained the difference. The consequent difference because you don't have custom duties. So if you want the big pictures at the end, Okay, at the end, if we have 100,000 PC's, you see the difference in China. You will bring me, um, a margin value or $30,000 compared to Bangladesh because of the duties off 100 $1000. Conclusion of the story simple. The impact on the custom rate is animus, and you will understand the reason why we are producing and I have an office in Bangladesh and why we open up a sweat in Myanmar in because there is GSB free zero custom duties. So is the same reason for that. I hope you understand the example which is quite TV. I understand differently. But I invite you to revive and to see and to watch different times this video this moment and to see quietly with the notes and up to the moment you understand. Well, this example. 14. 14 how to handle a shpmnt: Okay, so now how to handle a shipments? Very easy. How to book? Basically, you contact you for water and you give the information. I will have finished my production at this moment. These dates. Ah, I want to ship by air or by sea. You give the volume or the weights and you ask, for example, for delivery at the certain dates in the aerial place. Okay, so you just have to give the ski information. Then you have to give the contact a few factory, of course. Ah. And then they contact them directly, and they organize. Okay, so this is the first step. Just operational Aegis to take to book an air freight or issue freight. Okay, then watch what aren't sorry. The different documents you need to do an exportation or importation, you need normally street documents. But I put for it because it depends on the country off or evil. But let's say that's the three men wants art, this one. Okay, so you need I'm gonna show you some example, but the 1st 1 you need is a commercial invoice, basically, is an invoice. Okay, we're gonna see what to put inside, and we're gonna see some example you have here. It's and played that you can. You re use for your own shipments. A commercial invoice. A second important document in a camper. Saurian is not optional is a packing list. Packing list is how many captains you have. How many PC's you have in the Carson? What is inside the Carlton? The weight off the total over shipment, the, um, total volume, the total weight, the number off the container, the number off the bl and so on. So far, the bl the bill off lady ing, You have an example as well in the up endings I gave you and we're gonna see together. He is basically what I told you already is it is an equivalence off a visa. Okay, Is a visa from for you shipment for your goods, for the transportation and for the arrival in the country off destination? The street main. Important documents. See, I commission invoice backing lease and bl bill off, lady. And the four form is depending on the case, depending on the country's. I cannot say it's optional, but is not always Ah, let's say, um compulsory. For example, you produce in China. You export to Europe you don't need. Okay, so but for the country, you need to provide it. What is it? A seal is a certificates off Origen. Why? Because it's proving officially that you produce this goods in the country. Why? Basic example And very simple. You gonna understand rapidly I produce in China. And, um I think I'm a little bit smart and I export first toe to Bangladesh and I say it has been produced in Bangladesh and I take this goods and I export to Europe What's happening? But what's happening if I pretend that it has been producing Bangladesh, remember my example. It is 0% custom duties. Okay, this is absolutely illegal. Okay. Ah, and you have to show this certificates off Origen. Otherwise you're out off. Look, do you have some specific away k? Some specific case for reach the fabric is coming from is importing from China end Roma to , for example, for Tex I, for instance um prettiest earns one importing from China and assembling in Bangladesh again . I think what's is the custom duties for that? And do we need that? We don't need that. And this is still 0% duties. This is the majority off the product which has been produced. Okay, if you produce, for instance in shine now, okay, and you exposed to your rope Normally 12 persons if you produce in China and you export first in Italy and then you want to take this good from Italy and to, um, to export toe I don't know Neverland, thinking that you can just ah, at some some buttons in Italy pretending that because I did some manufacturing in Italy, it becomes a married in Italy, meaning thereby that we've in the c e um, the necessary the European Community producing Italy. I can export in a tow Neverland for free and zero person systems. Duty eats wrong. It is illegal. To do that, you have to provide the certificates off a region and the certificate off gingers will prove that you just put your little buttons in Italy and he is not the majority off your product. Okay, so it is. It is exactly the same principle. Then you have to pay some tax somewhere in the word. And if you don't, you don't. If you bring back some money from outside that you did in in China that you're eating under in Indonesia, whatever the country and you bring back to your country of origin in Europe and so want they ask you where this money is coming from? Did you pay some tax over there? You can be out of tax off course, but at least you have to provide the origin off this. Ah, this product. So this is the certificates off Origen. It is not compulsory, but a lot of countries I ask heats. So now we're gonna see the different documents in. Really? That you have enough endings and how to record this. Um this shipments. So, um, you have this documents in, um, the document five c I end p l So see, NPL is here. Okay, So commercial invoice is not more complicated than this. OK, so concretely what art? The key elements. So I use that for you to understand every time Here is the your company. Okay. The name off your company. Usually we add a logo. Okay. Here. This is here. The address off you ed quarter the place you are financing. So here is in Hong Kong. You have address off from Come the registration address. You have the contact number, the phone number. And here is the commercial invoice number. Then here is the proforma invoice. Okay. U P I with the client. The numbers for that you add for your olders. Here is, for example, the old off other reference of the clients and then the dates. Then here it is the client itself. So rail er lump Ramadan. Okay, The French company. And here is the address off the ed quarter. Okay, it's in various in France. Then if there is a difference off the delivery address, you have to precise it. This is the contact, then the Thames off payments, the L C number, the currency, and prepared. This is more internal information. Then you can see that here you have the description of the goods. But really briefly, we just want to know the composition, the title of fewer product and the order number and the composition. Why? Because I told you the composition as in impact on the custom duties. So, you know, here, that's we shipped some pajamas. Okay, we ship for this. Order 1190 PC's in order, and we know that's we have 200 toe under the nine size M. And so one. Okay, we know the unit price. Okay, It's 12 points, $15 per pc's. Okay, so 12.15 multiplied by this total quantity off. He's I'm shipping 14,458 $0.5 you are doing that and you precise you hs code. Okay? And then you are doing that for the old product. You ship, Then you preside. The transportacion mean here it is by seasonal by air. The ink attempts is a DDP. If whole every is the final destination, what time it has been shipped? He was 15 of July. The BL number is the same than the visa number. The L C number for this one. It is because it was under certain terms off payments. Elsie's a liter of credits. I invite you toe refer to the curse I gave regarding the sourcing ends. The negotiation and they see is a letter of credit is on agreement in between bank, and it is a new insurance off payment. It's quite costly, quite easy in terms off administration. But at least it is grantee of payment for anyway, you put and you indicate it's on your shipment documents. If it's Anel, see, or if it's a titty titi is just a basic swift. Then you put year you bang details. Ok, uh, bank details. Okay. And then you beneficiary name for you to be paid. Basically, you have the total value here. So we are shipping year for this example. 100. Uh, sorry. 100. Ah, 100 11,000. Almost dollars. Okay. And you have your stamp systematically. And the signature normally. So this templates this is only that for a commercial invoice, you can see that is not complicated. I put this template for you to re use for your own shipments. Obviously, this is in excel for you to change the information. But you never send an Excel document you convert, obviously, in pdf. Okay, like this, nobody can change it. This is the first documents the C I. Then the second document is a P l perch packing list. Okay, So is almost the same principle you have here. Your own information from your own company with the logo is better. Usually. Then you have the packing list number, which is the same the C I number. You have the proforma invoice numbers. It's exactly the same done this year. The consign e is the name off the clients. Okay. And then the, um you have the documents, so I invite you. If you cannot see on the blackboard off the white board, you have the documents, which is once again, I repeat myself. Documents. Seven. It's probably easier for you to photo, but anyway, so the consigning is the clients, okay? And the nutty fight party is the same gun, the consent. The final delivery is not the same than the headquarter is in. No Monday. Okay, No money then. Concretely, you have the description off the difference items and the quantities. Okay. How many cartons you have? This is more detailed than in the commission invoice. In addition of that, you have the container number. Okay. For the tracking, it is important. And then same You precise. Which type off transportacion mean? I see for this one, the dates shipped on both and then the BL number referring to your visa number equivalent for this one. You have the total number. I mean, how many captains you have year You have 630 different captains. The total volume is 60.40 47 CBM, and the total weight is seven tones, 134 kilos. You stamp, you sign and then you can convert this document in pdf, that's or you have your own main documents. Now you're just missing the bl. Why? I'm showing this document because this is for you to register and to keep a record off. You different them Your difference documents. So here is just a 90 off your shipment like this. You know, when it has been shaped, you know, more or less when he will be delivered for you, for your record. And here is different. Documents you. But you be air. You can put your city Kate off insurance. You can better So you CEO commercial. It's a teepee gauge off origin. Then last documents is the l. The bl is presenting like this is not you who is making it? It is your training, your four order. But it is just asking you some basic information. So you have the shipper. It is your company When you under sit. So this is your company then? This is the B L number. This is the visa number and basically is not subject to you. This is just given by the government. Then you have the forwarding agents. So here was the factory. Ningbo. Okay. This is private on this. The client will not seats. Okay. Is a private document or otherwise about you deliver you You give Your sourcing would be too dangerous. Ok, so they respect you privacy. Then you have the notify party. That's to say Ah ah Address off the 1/4 off your clients if you have a different Oops. Sorry. A different Ah, address of delivery. You indicated here. Then you have the vessel. So you have the name off the company. Like if you take Delta Airlines for your private. This one is m at sea Aryan. Okay? Referring toe. The certain vessel the port offloading is Ningbo and the port of discharge off. I mean, the part off our evil is Lula in France, and the place of delivery is ever in Normandy. It is not more complex than this. You only have the same information that you put in your packing least or C I Okay. What? He's what he's concretely shipped year the different pajamas and so on the older number and so on. The gross rate here, 7000. And you have to pay attention on the fact that it has to be same information here than on UBL. You don't invent. This is the information. Then it is officially declared by your factory declared to the government in China. And with this information, you're forward. There is creating this year and you take this information from the bail on you packing list . So here it is. The growth. Gross Rates 7134 kilos. And you volume 60 for 60 points. 47. Okay, so this is basically and the number of cartons you have the type of container for this one . He was Nhu. Okay, The biggest one. And you have the seal number. Did you remember the identification off the freight off the container like you have the flight number when you take a personal flight and that's basically only the only information that you have, then it's temp, and that sets you, have you own deal. So let's come back to here. We have everything the way off recording, and I put person example of see you for you to check from your own. But the most important and the compulsory documents are C i p l N B L. 15. 15 conclusion: All right. We arrive in every reach The ends off our journey on the road of Transportacion Here it is the conclusion. So here is the big picture off. What we learn to gether regarding this course off shipping and transportation. The first step, I tried to explain you how toe organize a shipments. Okay, How to prepare a booking through different techniques. But the 1st 1 is to define the response 70 do agreements that you have with your clients from you on one side. And we've you supplier your factory from yours Aside and to see through that the ICO attempts the global international responsibility right? And just ease off who is responsible off what? At which moments. Okay, we saw the different least off the ankle turns. Then we defined the different at least the different Transportacion means there three once by sea, by air or by roads. And then you have some mix. You mix different ones. We saw how to calculate the volume or the volume rate toe calculates your freight coast. Then I tried to explain the price breakdown for your logistic coast. Once again you have your shipping costs. That's to say the freight plus the insurance realized the arable charge plus the duties. And then you have the old information to calculate your marching. And at the end, we saw the different documents that you need for doing your system a clearance a d are evil with three or four documents according to the different countries which are commercial invoice backing least bl bill of lading. And in certain case, they re cried Some country ask for seo certificates off origin. Well, I hope things so clear and now for you. Once again, this is the last stage off, um, shipping, which is a curse I gave independently of the other ones. But it is a link toe big cursed that I am, for which I gave the title off international trade export import with the first part we've so seeing. And by ings, the second part, which is prospection negotiation the sir part which is protection follow up and the soul part which is shipping, so invites you if you can afford. And if you're interested, too to have a look on this other course. I was very happy to spend time with you, and I really hope data and this course has bean useful for you. Thank you for your attention. And I remain at your entire disposal if you have some more questions.