Customs, Logistics and Supply Chain

Presented By Ahmed Moustafa Hamed Master of International Transport & Logistics ( AASTMT + Molde unversity Norway ) Safety Link Shipping & Trade Co.,-

E.I.F.F.A.

F.I.A.T.A

. International Federation of Freight

Forwarders Associations Fdration Internationale des Associations de Transitaires et
3

FIATA was founded in 1926,

and is today the worlds largest non-governmental freight organization which represents, promotes and protects the interest of the forwarding industry.

Members are coming fro 150 countries all over the world.

F.I.A.T.A
4

Studies have shown that logistics costs can amount up to 30% of the delivered costs insome economies, whereas in efficient economies it can be below 10%!

Freight Forwarding and logistics efficiency:

5

Logistics Defined

Logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from the point of origin to point of consumption for the purpose of conforming to customer requirements. Council of Logistics Management
CR (2004) Prentice Hall, Inc.
6

SCM is the integration of all activities associated with the flow and transformation of goods from raw materials through to end user, as well as information flows, through improved supply chain relationships, to achieve a sustainable competitive advantage. Handfield and Nichols
Supply Chain Management Defined

Getting the right goods or services to the right place, at the right time, and in the desired condition at the lowest cost and highest return on investment.
8

The Logistics/SC Mission

_________________________________________ __________

"Freight Forwarding and Logistic Services" means services of any kind relating to the carriage (performed by single mode or multimodal transport means), consolidation, storage, handling, packing or distribution of the Goods as well as ancillary & advisory services in connection therewith, including but not limited to customs and fiscal matters, declaring the Goods for official purposes, procuring insurance of the Goods & collecting or procuring payment or documents relating _________________________________________ _______________ to the Goods
9

__________________________________________ _________

Freight Forwarding Services also include logistical services with modern information and communication technology in connection with the carriage, handling or storage of the Goods, and de facto total supply chain management. These services can be tailored to meet the flexible application of the services provided.
- description can also be found when visiting the FIATA website : www.fiata.com Downloads.

________________________________________ ________________

10

Evolutionary Path of Our _____________________________________________ Industry ______

11

Order

Overseas Consignor
Overseas Port

Loading

Carrying Vessel Departure From Export Port Port arrival

Definition of Japanese Lead Time in

Domestic Port

1
Start of Unloading

Start of Unloading
Time reduction through higher Efficiency among Terminal Operator Introduction of Sea-NACCS & Terminal Operator

Bonded Storage Area

End of Unloading

3
Unloading Confirmation registration

(Container Yard)
General Definition of lead Time

Unloading Confirmation

Customs Brokers , New Customs Clearway System

Import Declaration

Documentary Examination Cargo Inspection Determination of Customs Duty

Definition of Lead Time in This Presentatio n

Efficiency of Customs Authority and Customs Brokers

Payment of Customs Duty

Import Permit Carrying Out of Cargo

Consignee
Delivery

12

Any international transaction enjoy at least 2 Customs operations.

Customs operations

13

Customs Modernization and TF Evolution of Customs

Revenue Collection of Import Taxes (duties & excise)

Customs function

Protection of Economic Interests (domestic industry)

Protection of Society <health, safety> (drug trafficking, firearms, environment, etc.)

Economic Development <trade, investment> (trade facilitation)

Security <terrorism> (shifting focus to the entire supply chain)

Framework of Standards

14

WCO Tools for TF

World Customs Organization: Sole inter-governmental organization competent in Customs matters with 174 member administrations.

Single Window

SAFE Framework of

Standards (AEO)

Guideline on application of ICT WCO Data Model, UCR

Time Release Study, Risk Management Guide Integrated Supply Chain Management Guide
Revised Kyoto Convention, Mutual Administrative Assistance, Harmonized System, Rules of Origin, WTO Valuation, Istanbul/ATA, Container Convention, etc.
15

C.C
CRM

TF

16

Actual
Port Gate Terminal Terminal Shipping Line inside Port Customs Customs Customs GOIEC Container Terminal Customs Shipping Line Banks

Working Hours of governmental and non governmental agent

24

Trucks For Carrying in / Carrying Out For Carrying Out For Release , Payment Of Charges

22 20

Litter For Delivery

16
15 15 15 15 15 15 16 16

Duty Payments & Obtaining Release

Scan Inspection Report To Date Center For Customs Valuation

Inspection Stations Preparing File For Sampling Purposes Confirmation of Container Discharge
Register of 46 and Scanning Documents

Obtaining Delivery Order or Payment of Demurrage &Storage Payment

Getting Documents From Banks

16:00 17:00 20:00 21:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 18:00 19:00 22:0023:00 24:00

Actual Time Frame Work

24:00
Port Gate

Trucks For Carring in / Carring Out For Carrying Out For Release , Paym ent Of Charges Litter For Deleivery

22:00 20:00 16:00 15:00 15:00 15:00 15:00 15:00 15:0 0 16:00 16:00
PROCEDURES

Terminal Terminal Shipping Customs Customs Customs GOIEC Containe Customs Shipping Banks 9

Duty Paym ents & Obtining Release Scan Inspection Report To Date Center For Custom s Valuation Inspection Stations Preparing File For Sam pling Purposes

dd
Confirm ation of Container Discharge Rgistery of 46 and Scanning Docum ents Obtaining Deleivery Order or Paym ent ofDem urrage &Storrage Paym ent

Ge tting Docume nts From Banks

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

HOURS

Figure 4 -18 / Actual Time Frame Work Of Gavernmental and NonGavernmental Agux In With Import Clearing Processes
17

Source ! Designed By Researcher

Suggesting Extended Of Working Hours

Port Gate Terminal Terminal Shipping Line inside Port Customs Customs Customs GOIEC Container Terminal Customs Shipping Line Banks
Trucks For Carrying in / Carrying Out For Carrying Out For Release , Payment Of Charges

24

22 21

Litter For Delivery

20
20 20 20 18 20 24 18

Duty Payments & Obtaining Release

Scan Inspection Report To Date Center For Customs Valuation

Inspection Stations Preparing File For Sampling Purposes Confirmation of Container Discharge
Register of 46 and Scanning Documents Obtaining Delivery Order or Payment of Demurrage &Storage Payment

Getting Documents From Banks

16

09:0010:00 11:00 12:00 13:00 14:00 15:0016:0017:0018:0019:00 20:00 21:0022:0023:00 24:00

Actual Time Frame Work

24:00
Port Gate Trucks For Carring in / Carring Ou

22:00
Term inal For Carrying Out

21:00 20:00 20:00 15:00 20:00 20:00 18:00 20:0 0

PROCEDURES
Term inal For Release , Paym ent Of Charges Litter For Deleivery Shipping Line inside Port

Custom s

Duty Paym ents & Obtining Release

Custom s

Scan Inspection Report To Date Center For Custom s Valuation Inspection Stations

Custom s

GOIEC

Preparing File For Sam pling Purposes

Container Term inal

Confirm ation of Container

Discharge

24:0 0 18:00

Custom s

Rgistery of 46 and Scanning Documents

Shipping Line

Obtaining Deleivery Order or Payment ofDemurrage &Storrage Payment

Banks

Getting Docum ents From Banks

16:00

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

HOURS

Figure 4 -18 / Actual Time Frame Work Of Governmental and Nongovernmental Agux In With Import Clearing Processes
18

Source ! Designed By Researcher

Out of 123.1 Million Tons, including 56.7 MT. = 46.1% of containerized cargo. Total local Import 58.4 Million Tons, Incl. 19.6 Million Tons represented 22.8% are containerized cargo 6.2 million TEUs Handled by Egyptian ports during the year 2009

2.3 million TEUs handled as local cargos

Some economic data

1.2 Million TEUs. Handled by Alex. Ports Including 51.6% local inward cargo about 630000TEUs. @ Egp 30.00/Day/TE = 18900000.00Egp. @ USD.15.00/Day/TEUS= USD. 9450000

19

Egypt, Arab Rep.'s ranking in Ease Doing Business 2009/2010.

Ease of.

Doing Business 2010 rank 106 24 156 120 87 71 73 140 29 148 132

Doing Business 2009 rank 116 43 165 119 84 84 70 142 27 154 130

Change in rank

Doing Business Starting a Business Dealing with Construction Permits Employing Workers Registering Property Getting Credit Protecting Investors Paying Taxes Trading Across Borders Enforcing Contracts Closing a Business

+10 +19 +9 -1 -3 +13 -3 +2 -2 +6 -2

20

21

Thanks.

For

Your

Attention

22