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Subject: FW: International Trade

Title: Hello
here are the minutes of the meeting that took place last Thursday on "International Trade".
[Sharma, Nita] 
Netfish Technologies 
Agenda Item : Identification Of Core Processes for International Trade
Attendees: Dave Welsh
                 Edwin Young
                 Nita Sharma

Background and Goal:

International Trade includes lots of broken processes and barriers. Bring awareness of this issue.

Dave Welsh : that  international trade includes Deep sea, rail roads, air transport, barging, cross border traffic , customs. Preparation for cross borders and issues for achieving this. Some of the various business  flows
    - B2B type of flow
      - Exchange
    - Fulfillment vendors
    - Negotiation with Carriers
Some questions that require to be answered by this team are:
How does one flow products across borders?
What are the restrictions (import restrictions?)
Edwin presented a scenario:
Buyer would contact a merchant . The merchant would go to validating company and screen this process. What is the cost value and restriction?  If they say O.K. then they will present a bill payment process and send it to payment company. Then merchant will send to the manufacturer for fulfillment.
Issue is that in B2C scenario the buyer upfront does not know what total cost involved is. DHL/UPS facing same issue.
Edwin: Require to consider Freight Charge, Insurance cost, Landing Tariff, Duty Fee, Broker Charge etc.
Dave: Require consolidator at the other end for paper work.
Classification of Business processes:
Compliance – Export and Import
Landed cost – Freight Charge / Insurance/Landing Tariff/Duty Fee/Broker Charge
Cross border Return Handling – return might go to clearing house. Not to country of origin as did not make sense cost wise. Reverse flow. Duty paid has to be reflected. (Under movement of goods)
Regulatory aspects
Duty drawback
Dave: Disposition process -  Shipper does not see it. The Freight absorbs it. Dave to further investigate it. – Goes into embargo
Dave and Edwin identified various parties and roles for international trade:
-          Shipper 
-          Receiver Company
         End User (Bill Of Ladling will be open bill of some sort and will be in transit and dynamic. As there might be multiple buyers and sellers )
-          Forwarder(optional) –
         Consolidator or paper work handler.
-          Regulatory Authority (Government / UN )
-          Carrier
-          Financial Institution
There were discussion on classification of business processes in context of International trade and how landed cost can be identified.  
Various process flows identified were:
  • international order is booked.  The process flow is to have the order screened for compliance and to quote the total landed cost
  • order is purchased.  The payment will be initiated/processed
  • order is picked and packed.  Need shipping documents.
  • order is shipped. Need export documents.
  • order arrives at destination port. Need import documents.
Action Items:
        - Dave and Edwin will compile lists of core processes for international trade.
        - On Tuesday there will be another conference call between Dave, Edwin and Nita.
        - On Wednesday this consolidated list will be presented to the ebXML Core Process Team

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