Logistics, Trade Administration and Supply Chain

Objective Basically, the purpose of introducing Section 65A in addition to Section 65 of the Customs Act 1967, is to enable manufacturing process to be carried out in licensed warehouses. Manufacturing operation therein is subjected to minimal customs procedures. It is primarily intended to cater for export oriented industries. The Licensed Manufacturing Warehouse or better known as LMW can be set up speedily and anywhere in the Principal Customs Area without any need to be near to ports of entry unlike the Free Trade Zones established under the Free Zones Act 1990. Industries may thus be induced to be located in rural areas. Raw materials or components directly used in the manufacturing process are exempted from payment of customs duty and sales tax. Location of LMW A company wishing to have LWM facilities should be located in less developed area so as to be in line with the government policy to disperse export oriented and labour intensive industries to less developed areas. However,

Customs Definition Premise granted a license by the Director-General of Customs to store goods liable to customs duties and any other goods as approved by the Director-General of Customs under Section 65 of the Customs Act 1967. The establishment of a warehouse is based on the concept of a central storage and distribution of goods in this country and international trade. Objectives a) To reduce congestion at the port/airport b) To expedite the movement of goods c) To reduce financial liability on importers by allowing a partial payment of customs duty d) To reduce cost and allow importers to import larger quantity e) To encourage entreport trading There are few categories of bonded warehouse in this country which are listed as follows: a) Public Bonded Warehouse b) Private Bonded Warehouse c) Agent Bonded Warehouse d) Inland Clearance Depot e) Pekema Bonded Warehouse Application for License to establish a bonded warehouse: a) Letter of Application b) JKED No. 1 Form c) Application Form

The transportation of goods by road can be divided into its component elements which include some or all of the following: a) the manufacturer or owner of goods (importer, exporter, factory, buyer), b) in-house, transport operator (that is transporting own goods only), c) the for hire transport operators (who are common carriers) which include ... - container haulier - conventional trucker - tanker truck operator, both dry and liquid - other bulk carrier i.e. cement, sand, grain, powder - heavy haulage operator for overweight, overweight and over width cargo - agents or other service procurer or provider (forwarding agent, shipping agent, cargo agent)

Road transport form first and last link of any journey whether it involve pure road movement or a multiple of modes such as air, sea or rail. In fact road transport vehicles can even deliver cargo to areas where roads has not being built yet. For the purpose of trading where goods are exported, road transport form the feeder between the site of production and the ports of exit. For imports too, road transport form the feeder linking the ports, etc to the consignee. With this important role, road transport becomes the catalyst for economic growth. The faster the economy is growing, the bigger is the capacity required to move goods from where they are produced to where they are needed. Any shortage of capacity will result in a slow down of gods flow and finally affect the economic growth. Capacity in terms of road transport is in the total capability to haul in tonnage calculated as the tonnage of various vehicles multiplied by the total vehicle in each category.

Between the end of the production line and the retailer or final buyer, the goods or item undergoes several more value added processes. These values are added due to the movement or transfers of the goods along its chain of events. As each transfer costs money, it also adds to the value of the goods being placing it in a more accessible position for its final buyer. Among elements in the value chain processes are:- a) storage at factory or warehouse, b) loading and stuffing, c) transport by land, d) storage at port, e) documentations and clearance, f) loading onto vessels, g) transit by sea or air to the next port, h) storage at port, i) storage, j) further transport and finally reaching the detail outlet. Each component of the chain described above will incur a cost to the owner of the goods. However, with each additional element and cost increase, the value of the goods also increase. For example, the goods increase in its value if after being manufactured at the factory it is moved