october 14, 2010 city of los angeles, port of los angeles, los angeles world airports procon &...

October 14, 2010

City of Los Angeles, Port of Los Angeles, Los Angeles World Airports

PROCON & ASIAN GLOBAL SOURCING CONFERENCE

Southern California Trade Gateway

Panel II: Global Trade, Operations & Legal

Logistics challenges & solutions in trade Mitigating risk in global business Legal and IP issues in the US & abroad

Moderator: Norman Arikawa, Port of Los Angeles Panelists:

Jim MacLellan, Director, Trade Services, Port of Los AngelesLowell Anderson, Attorney, Stetina Brunda Garred & BruckerRoger Clarke, Chair, L.A. Customs Brokers & Freight

Forwarders AssociationRosia Senh, International Sales, UPS

• Exports of goods from the L.A. Customs District surpassed $86 Billion in 2009

The Time is Right to Export !The Time is Right to Export !

Why Export?Why Export?• The U.S. Dollar has been steadily

weakening for the past few years• Asian demand for basic U.S. products

such as waste paper, metal scrap & plastic resins has been strong for years

• However, manufactured exports have been increasing strongly in the last two years

Why Export?Why Export?• Demand for California agriculture

products such as cotton, citrus products, almonds, dairy products & wine has been strong

• High value exports such as computer chips, communications equipment, medical / dental equipment, aircraft & machinery parts has increased

• Computers, chips & elect. circuits• Aircraft & parts• Cotton• Vehicles & parts• Machinery parts• Medical & Dental equipment• Cellular & communication equip. parts• Polymers

TOP EXPORT COMMODITIES L.A. Customs District (2009)TOP EXPORT COMMODITIES L.A. Customs District (2009)

Top 10 L.A. Trading PartnersTop 10 L.A. Trading Partners

1. China ($115 billion)

2. Japan ($32 billion)

3. Korea ($15 billion)

4. Taiwan ($11 billion)

5. Thailand ($8 billion)

6. Australia ($7 billion)

7. Malaysia ($7 billion)

8. Singapore ($6 billion)

9. Vietnam ($5 billion)

10. Hong Kong ($6.9 billion)

Cargo Value (2006)

Export Document FlowExport Document FlowA. Commercial

• Commercial InvoiceB. Financial

• Letter of CreditC. Shipping

• Bill of Lading (or Air Way Bill)

Terms of Sale Terms of Sale “ How Do I Minimize Risk ? “

• What are INCOTERMS; can they reduce risk ?

• How do they relate to Terms of Sale ?

• Control & define the point where ownership of the cargo transfers to the buyer !

• Trade Insurance

• Certificate of Inspection

Ocean Carriers

• Original Bill Of Lading• Intermodal Bill of Lading• Door – to – Door Lading

Export Responsibilities Export Responsibilities