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Free trade through technology

Logistics - Getting Products to Amazon:

Horror Stories and Best Practices

Anthony Chen – ac@flexport.com - @_chenac

Content presented during the Smart China Sourcing Summit Apr 17-19, 2016. Organized by

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My Background

Director of Special Projects

1st Employee

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Agenda

• Freight Forwarding

• Horror Stories

• Best Practices

• Amazon FBA

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Shipping Product

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Freight Forwarding

> 100 kgs

Express Shipping

< 100 kgs

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Freight Forwarding

The coordination and shipment of goods from one place to

another, “forwarded” through various methods of transportation

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Shipping Methods

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LCL FCL

20’

40’

40’ HQ

100kg +

300kg +

500kg +

1,000kg +

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Shipping Methods

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Faster

$$$

Less Examinations*

Slower

$

More Examinations*

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Horror Story #1

Original Bill of Lading U.S. Customs Broker Demurrage

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Best Practices #1

Telex Release HTS Codes & Shipment Documents

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Horror Story #2

Export License

CPSC

Batteries

Magnets

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Best Practices #2

Supplier Diligence Regulatory Diligence Pilot Shipment

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Horror Story #3

Customs Examination

Incomplete Freight Quote

Damages

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Best Practices #3

Line Items & Insurance!

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Best Practices #3

Packaging Shrink Wrapped Pallets

Time Management

Chinese New Year (7+)

Chinese National Day (7+)

Non-Instrusive (X-ray)

Examination (3-5)

Intensive Examination (5+)

Production Ramp (7+)

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Common Mistakes

Mentioned…

• Original Bill of Lading

• Forgotten Customs Broker

• Missing Documentation

• Export License

• Product Testing

• Regulatory Documents

• Time Allocation

• Incomplete Freight Quote

• Packaging

Additionally…

• U.S. Customs Bond

• Importer Security Filing

• Customs Duties

• Value-Add Taxes

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Best Practices

Mentioned…

• Telex Release

• HS Code Classification

• Shipment Document Prep

• Supplier Diligence

• Product & Regulatory

Diligence

• Pilot Shipment

• Comprehensive Freight

Quote

• Insurance

• Thicker Packaging & Shrink

Wrapped Pallets

Additionally…

• HTS Customs Binding

Ruling

• Advanced Shipment Notice

• Delivery Appointments

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Amazon FBA

Fantastic Service – Play By Their Rules:

• Prior to Delivery:

– All packages must be pre-sorted and pre-labeled (x4 for

pallets)

– Shipments require FBA labels and must be palletized

• Delivery:

– 1) Your Choice – requires Amazon appointment

– 2) Amazon’s Choice – via Amazon SPD (UPS) or

Amazon’s Partner Carrier Network (contracted terms)

• Cargo < 150 lbs Amazon recommends not palletizing cargo

and using UPS for pickup

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94 FBA Centers in North America

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Modern Freight Forwarding - Flexport

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Modern Freight Forwarding - Flexport

https://www.flexport.com/learn/guide-sending-products-amazon-fulfillment/

https://www.flexport.com/learn/

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Modern Freight Forwarding - Flexport

https://www.flexport.com/blog/panama-canal-expansion/

https://www.flexport.com/blog/

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Questions?

Anthony Chen – ac@flexport.com - @_chenac