Import Process of BMW 335 i Drew Andersen
Import Process of BMW 335 i Drew Andersen JJ Cavanaugh Gary Patterson Matthew Petrovich
Overview Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary BMW 335 i Sedan � Part of BMW’s 3 Series � 3. 0 Liter, Twin Power, Turbocharged 6 -cylinder engine � 300 Horsepower � Car & Drivers 10 Best 19 years running
Overview Major Facts and figures Flow of Goods/ Documents Cost Analysis and Payment � Route Liquidation Summary � Transportation Carriers ◦ DTC Transport Logistics ◦ Wallenius Wilhelmsen Logistics ◦ National Transport, LLC � Total Cost - $48, 329. 00 or € 36, 827. 00
Overview Flow of Goods/ Documents Import Process 335 I leaves BMW Plant. Dingolfing, Germany Car is loaded on Inland Freight carrier (DTC Transport Logistics) Car is unloaded at port of export (Bremerhaven, Germany) Car must clear customs at the port before loading Car is unloaded at port of destination (Brunswick, Georgia, USA) Car is loaded on to the ocean carrier (Wallenius. Wilhelmsen Logistics Oberon) Car is loaded on domestic inland freight carrier after clearing customs (National Transport LLC) Car is delivered to Critz BMW. Savannah, Georgia Customer receives car at dealership. Cost Analysis and Payment Liquidation Summary
Overview Letter of Credit Goods Flow of Goods/ Documents Contract Letter of Credit Cost Analysis and Payment Liquidation Documents Summary Documents Letter of Credit Documents Application
Overview Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Letter of Credit
Overview Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary BMW � Based in Germany � One of Top 10 auto manufacturers in the world � Core competencies ◦ Innovation ◦ High performance ◦ Engineering � Critz BMW ◦ Based in Savannah ◦ Serves Savannah, St. Simon’s, Statesboro, Brunswick, Hinesville, and Claxton areas.
Overview Flow of Goods/ Documents Cost Analysis and Payment Foreign Inland Transport � Deutsche Transport Company ◦ Based in Bamberg, Germany ◦ Delivers to 35 European Countries Liquidation � 72 Routes ◦ Handle Intermodal, Warehousing, Customs Summary Clearance and Logistics Consultation
Overview Flow of Goods/ Documents Factory to Port Route Dingolfing, Germany to Bremerhaven, Germany Cost Analysis and Payment Liquidation Summary 7 ½ Hours or 825 km Once in Bremerhaven, shipment is inspected and loaded onto RO-RO carrier
Overview Export Documents Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Bill of Lading Certificate of Inspection
Overview Export Documents Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Certificate of Origin Commercial Invoice
Overview Export Documents Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Packing List
Overview Flow of Goods/ Documents Cost Analysis and Payment Ocean Transport � Wallenius Wilhelmsen Logistics ◦ Intermodal transportation company ◦ Specializes in the shipment of automobiles, agricultural and construction equipment. Liquidation Summary ◦ Ship 2 -3 million vehicles annually ◦ Also handles all vehicle processing, terminal procedures, and distribution to retailers.
Overview Flow of Goods/ Documents Cost Analysis and Payment Port to Port Bremerhaven, Germany To Brunswick, Georgia Lead time for shipping is 19 days Liquidation Summary Once arriving in Brunswick, shipment must clear customs inspection
Overview Flow of Goods/ Documents Cost Analysis and Payment Domestic Inland Transport � National Transport LLC ◦ Specializes in automotive transportation ◦ Offers open/enclosed trailers for vehicle Liquidation Summary transportation
Overview Flow of Goods/ Documents Cost Analysis and Payment Port to Dealership Route Brunswick, Georgia to Savannah, Georgia Lead time is 1 ½ Hours or 78 miles Liquidation Summary Once shipment arrives in Savannah, issuing bank pays advising bank which pays BMW Group.
Overview Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Breakdown of Costs Cost Price Form of Payment BMW 335 i base cost € 28, 125. 45 Insurance € 562. 50 Cash Sales Tax (German) € 4781. 33 Cash Duties (FAS) $984. 38 Cash Domestic Inland Transport (US) $345 Cash Foreign Inland Transport (DEU) € 247. 60 Cash Ocean Carriage € 719. 10 Cash Total Vehicle Cost $48, 329 or € 36, 827 L/C
Overview Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Currency Hedging � Forward Market Hedge was used. Vehicle Price (€) Exchange Rate Vehicle Price ($) € 28, 125. 00 Oct 16 (Spot) $1. 3976/€ $39, 375. 00 € 28, 125. 00 Jan 14 (Forward) - $39, 727. 00 $1. 4125/€ � Savings = $352 by choosing the spot rate and exercising the option on an option contract.
Overview Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Duties Paid � Used Harmonized Tariff Schedule � Germany is a general column 1 trade country � The vehicle falls under heading 8703. 23. 00 ◦ 2. 5% of vehicle cost (FAS) is due for duty paid � Total Duties: (39, 375 x. 025)= $984. 38
Overview Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Harmonized Tariff Schedule
Overview Customs Clearance Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Bill of Lading Certificate of Origin
Overview Customs Clearance Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Certificate of Inspection Import Declaration
Overview Customs Clearance Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary EPA Declaration Commercial Invoice
Overview Customs Clearance Flow of Goods/ Documents Cost Analysis and Payment Liquidation Summary Inward Cargo Manifest Packing List
Overview Customs Clearance Flow of Goods/ Documents Cost Analysis and Payment Liquidation Inward Cargo Declaration Summary Surety Bond
Overview Summary Flow of Goods/ Documents Cost Analysis and Payment BMW 335 i leaves Dingolfing, Germany to Bremerhaven, Germany BMW travels on RORO from Bremerhaven to Brunswick, GA BMW goes through US Customs process Payment is transferred from issuing bank to advising bank. Car is transported from Brunswick to Critz BMW in Savannah, GA Liquidation Summary
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