Logistics, Trade Administration and Supply Chain

Form Utility . It refers to the value added to goods through a manufacturing, production or assembling process. For example, form utility results when raw materials are combined in some predetermined manner to make a finished product. This is the case, for instance, when a bottling company adds together syrup, water and carbonation to make a soft drink. The simple process of adding the raw materials together to produce the soft drink represents a change in product form that adds value to the product. In today's economic environment, certain logistics activities can also provide form utility. For example, breaking bulk and product mixing, which typically take place at distribution centres, change a product's form by changing its shipment size and packaging characteristics. Thus, unpacking a pallet of breakfast cereal into individual customer size boxes form utility to the product. However, the two principal methods in which logistics adds value are in place and time utility...

The definition of supply chain management (SCM) presented previously suggested a number of key factors and related characteristics that are the key to successful implementation.. Those key factors are inventory, cost, information, customer service and collaborative relationships. Each of these deserves some special consideration. Inventory Managing the flow and level of inventory is a central focus of SCM and a major performance metrric to gauge success. In simplistic terms, the inventory level must be sufficient to provide acceptable customer service but low enough to minimize SCM costs. To maintain the balance between supply of and demand for inventory stock, the supply chain requires integrated management to avoid duplication among members of the supply chain. Inventory visibility as it move through the supply chain is necessary to reduce or eliminate uncertainty, which eliminates safety stocks. This includes visibility of invotry being held in warehouses and other storage ...

If a LMW finished goods are of a class prohibited on import/export he will be allowed to carry on with the manufacturing but the finished goods when released to domestic market or exported will have to be subjected to the prohibition orders. Import or export license, whichever applicable must be obtained from the International Trade and Industry Ministry and the approval must presented to the Customs at the port/place of import/export. Control on Premises Generally, LMW are documentary controlled by the Customs. As such, customs officers will not be stationed at the licensed premises. Manufacturing process can be carried out without limitation to the time but no dutiable goods shall be brought in or taken out of the licensed premises outside the normal opening hours without due written permission from the State Customs Director where the LMW is located or based at. Valuation Dutiable value of the manufactured goods released for home consumption will be determined on the ...

From licensed of raw materials/components, duty free for approved manufacturing purposes in the LWW warehouse and transfer of goods to Free Zones or to another LMW warehouse, the following formalities must be complied: Movement of goods (involving passage in transit through Principal Customs Area) must be covered by Customs Form 8. This statutory form 8 must be submitted by the importer or his agent at the first port/place of import. Customs Import Declaration 1 duly completed must be submitted by the importer (licensee) to the customs station responsible for the supervision and administration of the LMW concerned (This applies only to LMW from overseas). The goods must be transported in locked van or truck approved b y the Director Genera of Customs. Security in the form of Bank Guarantee is required to safeguard against any loss of revenue of goods carried in transit. Removal of Goods for Export The licensee or his agent is required to submit Customs Form 8 duly complete...

Raw material and components eligible for duty exemption are as follows: Customs duty exemption to all raw materials and components used directly in the manufacturing process of approved produce from the initial stage of manufacture until finished goods products is finally packed ready for export. This includes packaging materials and casings. The list of raw materials and components that can be imported and taken to LMW without payment of customs duty is issued together with the LMW license. Addition or deletion to the list can be made from time to time; Goods subject to excise duty incorporated in the final product, e.g. dry cell batteries may be exempted from excise duty. Application for such excise duty exemption should be made to the Treasury for consideration under Section 10 (a) of the Excise Act 1976. Materials or goods that are not eligible for duty or tax exemptions are as follows: Fuel Oil; Building and construction materials; Office equipment; Furniture; Mat...

CTPAT stands for Customs-Trade Partnership Against Terrorism is a US Customs and Border Protection (CBP) voluntary business initiative designed to build cooperative relationships that strengthen overall supply chain and border security. The CTPAT initiatives recognizes that CBP can provide the highest level of security to the public and to other stakeholders only through close cooperation with the ultimate owners of the supply chain i.e. importers, carriers, brokers, warehouse operators and manufacturers. With this initiatives, the Customs is asking businesses to ensure integrity of their security practices and communicate their security guidelines to their business partners within the supply chain. Benefits of Participating in CTPAT CTPAT offers trade related businesses an opportunity to play an active role in war against terrorism or any possible threat that may sabotage any countries. By participating in this first ever worldwide supply chain security initiative, companie...

The purpose of incorporating Section 65A in addition to Section 65 of the Customs Act 1967 is to allow 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 (LMW) can be set up speedily and anywhere in the Principal Customs Area without any need to be near to ports of entry unlike Free Zones which is 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 LMW facilities should be located in less developed area so as to in line with the government's policy to disperse export oriented and labour intensive industries to less developed areas. However in this respect, a certain degree to...