Transcript CFNA-Organic

Quality Services International GmbH
How to export
Honey
from Argentina to the world?
General Information
provided by:
20 July 2015
Dr. Cord Lüllmann
Quality Services GmbH
Flughafendamm 9a
28199 Bremen
Germany
©2006 by QSI
Quality Services International GmbH
• General Information
• Legal Framework in Foreign Trade
• Transport Facilities in Foreign Trade
• Foreign Trade Calculation
• Foreign Trade Risks
• International Payments
20 July 2015
Agenda
©2006 by QSI
Quality Services International GmbH
• Argentina
Number of Beekeepers: 18.000
50% less than 50 hives,
biggest one near 10.000 hives
Number of Beehives:
1.800.000 to 2.000.000
Honey Production:
70.000 Tons / Year
Av. Production / Year:
35 to 40 Kg of Honey / Beehive
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Argentina
• 97% of all harvested Honey is exported
• Approximately 98% as bulk Honey in steel drums,
only 2% as packed Honey
• 95% of all Honey is exported by only 10 companies
• Main clients are Germany, USA, Italy, Spain, United
Kingdom, Japan
 Argentina is the second largest World Honey Exporter
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
Honey Exports from Argentina to (May 2003):
Buyer
Net Kilograms
Germany
FOB Price US$ Supply
per Kilogram
Percentage
4.050.334
2,35
44
Italy
985.530
2,40
11
United Kingdom
944.546
2,28
10
Saudi Arabia
892.532
2,57
10
9.262.417
2,38
100
.....
TOTAL
Source:
www.beekeeping.com
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Foreign Trade:
Includes all management
activities to ob-/maintain
economic relations to foreign
countries
• Export:
Basic activity for foreign trade
 cross-border provision of
economic services and goods to
foreign countries
• Differentiation:
20 July 2015
Direct vs. Indirect Export
General Information
©2006 by QSI
Quality Services International GmbH
• Direct Export:
Argentinean Beekeepers sell
straight to foreign countries
Beekeeper
Frontier
Processing Party
Import Community
Wholesale
End Buyer
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Direct Export - Notes:
• Direct contact to customers
• More capital demand for foreign activities
• Good acknowledgement of foreign markets
• Own responsibility for acquisition
• Extended distribution/sales channels
• Higher credit / financial risk
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Indirect Export: Argentinean Beekeepers sell to
s.o. National  Export activity
reduced to packaging and
provision of goods
Beekeeper
Processing Party
Export Community
Wholesale
Processing Party
Import Community
Wholesale
Frontier
End Buyers
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Indirect Export - Notes:
• Distribution through specialised foreign trade company
• Often foreign trade company has specific experiences
on foreign markets
• No capital demand for inventories and distribution
• Preferred by small-/ medium-sized companies
• Less control on foreign markets
• Possibility to extend sales rapidly
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Argentina
• Average FOB-Price of
Argentinean Honey in 2003:
2,21 USD / Kg
• Average Prices paid to
Argentinean Beekeepers (2003):
1,30 USD / Kg
• Average Prices obtained by
Argentinean Exporters (Wholesale): 1,40 USD / Kg
Price-gap between Direct and Indirect Export Prices
of approximately 0,10 USD / Kg of Honey!
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Foreign Trade Institutions:
• Chambers of Commerce / Industry in Argentina
provide information, support and consulting
• International Chamber of Commerce (ICC, Paris)
 Institution to support foreign trade
• International Beekeeper Associations
• Credit Institutions (foreign departments)
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Foreign Trade Institutions (example):
CÁMARA ARGENTINO ALEMANA
Av. Corrientes 327, 23° C1043AAD Buenos Aires, Argentina
Tel.
Fax.
+54-11-5219-400
+54-11-5219-4001
[email protected]
www.cadicaa.com.ar
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Foreign Trade Institutions (example):
C.E.R.A. – Argentine Chamber of Exporters
Av. Roque Sáenz Pena 740, piso 1° 1035 Buenos Aires, Argentina
Tel.
Fax.
+54-11-4394-4482
+54-11-4394-4351
[email protected]
www.cera.org.ar
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Customs Authority in Argentina:
 In case of uncertainties, e.g. Export Customs
Duties / Licences, please contact:
National Tax and Customs Administration
Azopardo 350
1107 Buenos Aires, Argentina
Tel.
Fax.
+54-11-4343-0661
+54-11-4343-9881
www.afip.gov.ar
20 July 2015
General Information
©2006 by QSI
Quality Services International GmbH
• Legal Framework for Foreign Trade is controlled by
the WTO (World Trade Organisation)
• WTO is a sub-organisation of the UN (United Nations)
• Most important institution for handling international
economic affairs
• WTOs‘ tasks are: - Liberalisation of International Trade
- Reduction of Customs Duties
- Control International Trade- and
Service-Agreements
20 July 2015
Legal Framework
©2006 by QSI
Quality Services International GmbH
• International Sales Contracts: Applicable Law
• Main problem: different legal conceptions for foreign
trade in various countries
 International agreements have privilege against
national laws!
 National laws cannot violate international
agreements!
20 July 2015
Legal Framework
©2006 by QSI
Quality Services International GmbH
• International Sales Contracts: Applicable Law
• Principally: Free selection of applicable law
 Contracting parties have to decide which laws
are taken as basis
 Recommendation: Choice of law to be fixed
in written contract
20 July 2015
Legal Framework
©2006 by QSI
Quality Services International GmbH
• International Sales Contracts: Goods contract
• Foreign trade contracts are not bound to any form
 Contractual agreements can be met orally!
• In order to ensure legal certainty and evidences for
prices, terms of payment etc., written contracts should
be signed by both parties
20 July 2015
Legal Framework
©2006 by QSI
Quality Services International GmbH
• Transportation:
 Mode of Transport
 Ocean-freight
 Air-freight
 Packaging
20 July 2015
Transport Facilities in Foreign Trade
©2006 by QSI
Quality Services International GmbH
• Ocean-freight:
 Advantages:
- Regular schedules
- Favourable Freight Rates
- Safety Transport
- Delivery of large
quantities possible
 Disadvantages:
- Less Speed
- Less Flexibility
20 July 2015
Transport Facilities in Foreign Trade
©2006 by QSI
Quality Services International GmbH
• Air-freight:
 Advantages:
- Regular schedules
- Safety Transport
- High Speed
- High Flexibility
 Disadvantages:
- Expensive Freight Rates
- Small quantities
20 July 2015
Transport Facilities in Foreign Trade
©2006 by QSI
Quality Services International GmbH
• (Transport) Packaging:
- Facilitate the Transport
- Protect Goods against
Loss / Damage
- Ensure safe Transports
Examples:
- Pallets
- Cartons
- Drums
- etc...
20 July 2015
Transport Facilities in Foreign Trade
©2006 by QSI
Quality Services International GmbH
• Trade and Customs Documents:
Commercial Invoice:
Contents:
most important certificate
for fulfilment of contract
Description of goods, Weight, Quantity of
Goods/Packages, Price per Unit, Total Price,
Currency, Terms of Delivery, Marks,
Contracting Parties, Freight Costs
In dependency on Destination further details may be
required:
 Discounts, Vessels‘ Name, Customs Tariff
Number, Terms of Payment, Signature...
20 July 2015
Transport Facilities in Foreign Trade
©2006 by QSI
Quality Services International GmbH
• In dependence on Destination further documents
may be required:
• Consular Invoice
• Customs Invoice
• Certificate of Origin
• Health- and Analyses-Certificate
• Export- / and Import-Licence
20 July 2015
Transport Facilities in Foreign Trade
©2006 by QSI
Quality Services International GmbH
• Contacts:
Kühne & Nagel S.A.
National Headoffice
Avda. Corrientes 316 – EP
C1043AAQ Buenos Aires
Phone: +54-11-5556-6200
Fax:
+54-11-5556-6223
[email protected]
Hellmann Worldwide Logistics S.A.
Avda. Corrientes 531 Piso 6
C1043AAF Buenos Aires
Phone: +54-11-5552-2000
Fax:
+54-11-5552-2099
[email protected]
Panalpina Transportes Mundiales S.A.
Avda. Paseo Colón 728 Piso 9
C1063ACU Buenos Aires
Phone: +54-11-4348-4500
Fax:
+54-11-4348-4510
[email protected]
20 July 2015
Transport Facilities in Foreign Trade
©2006 by QSI
Quality Services International GmbH
• Foreign Trade Calculation is a mathematical
determination of Foreign Trade Prices under
consideration of business and market conditions
• The task at this is to appoint a selling price to
potential buyers, including all variables
• It is necessary to take the so called Incoterms into
account
 Incoterms obtain their authenticity by
implementing them into the sales contract!
20 July 2015
Foreign Trade Calculation
©2006 by QSI
Quality Services International GmbH
• Incoterms – Costs and Responsibilities will be
divided obligatory
• Transport Charges – who pays the freight from
where to where?
• Transport Risk – when does the buyer adopt the
liability for damages / losses?
• Cross-border Processing – who is responsible for
organising and paying
ex-/ import procedures?
• Due Diligence – who provides documents?
20 July 2015
Foreign Trade Calculation
©2006 by QSI
Quality Services International GmbH
• Incoterms – Overview:
20 July 2015
Foreign Trade Calculation
©2006 by QSI
Quality Services International GmbH
• Incoterms - EXW:
• EXW ...(e.g. Buenos Aires) = Ex Works Buenos Aires
• The exporter has to
- deliver the goods in time to named and agreed
place of delivery
- use and mark appropriate transport packaging
- bear costs and risks up to placing the goods
for transport
- bear costs of checking operations at exporters
premisses (e.g. quality, weight)
20 July 2015
Foreign Trade Calculation
©2006 by QSI
Quality Services International GmbH
• Incoterms - EXW:
• EXW ...(e.g. Buenos Aires) = Ex Works Buenos Aires
• The importer has to
- accept and pay for the goods in time
- bear all costs and risks from place of delivery
up to final destination, esp. export customs
clearance, transport, loading of goods etc.
20 July 2015
Foreign Trade Calculation
©2006 by QSI
Quality Services International GmbH
• Incoterms - FOB:
• FOB ...(e.g. Buenos Aires) = Free on Board B. Aires
• The exporter has to
- deliver the goods in time on ocean vessel at
port of shipment
- bear costs and risks until goods have passed
vessels‘ ceiling
- bear costs and risks of export customs clearance
- to inform the buying party after the goods are
are loaded on vessel
20 July 2015
Foreign Trade Calculation
©2006 by QSI
Quality Services International GmbH
• Incoterms - FOB:
• FOB ...(e.g. Buenos Aires) = Free on Board B. Aires
• The importer has to
- book allocation and to inform selling party
about name, place and departure time of the
ocean vessel
- bear all costs and risks after goods have
passed the ceiling
20 July 2015
Foreign Trade Calculation
©2006 by QSI
Quality Services International GmbH
• Incoterms - CFR:
• CFR ...(e.g. Buenos Aires) = Cost & Freight B. Aires
• The exporter has to
- deliver the goods in time on ocean vessel at
port of shipment
- bear costs and risks until goods have passed
vessels‘ ceiling
- bear costs and risks of export customs clearance
- to inform the buying party after the goods are
are loaded on vessel
20 July 2015
Foreign Trade Calculation
©2006 by QSI
Quality Services International GmbH
• Incoterms - CFR:
• CFR ...(e.g. Buenos Aires) = Cost & Freight B. Aires
• The importer has to
- book allocation and to inform selling party
about name, place and departure time of the
ocean vessel
- bear all costs and risks after goods have
passed the ceiling
20 July 2015
Foreign Trade Calculation
©2006 by QSI
Quality Services International GmbH
Exemplary Export Calculation (Ocean-freight):
+
Usual Price for Honey (X tons)
Costs for export packaging according to
transport mode; Other internal costs; Profits
USD
10.000,00
USD
+ 1.000,00
=
Selling Price - EXW
USD
11.000,00
+
Transport Charges up to Port of Loading; Costs
for Export Clearance; Handling Costs (Loading
Cargo on Vessel)
USD
+ 500,00
=
Selling Price - FOB
USD
11.500,00
+
Ocean-freight up to Port of Destination
USD
+ 500,00
=
Selling Price – CFR
USD
12.000,00
+
Transport Insurance
=
Selling Price – CIF
20 July 2015
USD
+ 100,00
USD
Foreign Trade Calculation
©2006 by QSI
12.100,00
Quality Services International GmbH
• Foreign Trade Risks can be divided:
 Economic Risks
Loss through misjudgement
or economic incidents
 National Risks
Loss through specific
activities within contracting
country
20 July 2015
Foreign Trade Risks
©2006 by QSI
Quality Services International GmbH
• Economic Risks:
 Price Risk
too expensive compared to
competition; Assistance
through contacts to or
agreements with competitors
 Credit Risk
Risk of insolvency / delays
in payment; Assistance
through advance payment
20 July 2015
Foreign Trade Risks
©2006 by QSI
Quality Services International GmbH
• Economic Risks:
 Receiving Risk
Delivery will not be accepted
by consignee
 Exchange Risk
Invoicing in foreign currencies
 Transport Risk
Damage / Loss of Goods;
Assistance through transport insurance / Ex Works
20 July 2015
Foreign Trade Risks
©2006 by QSI
Quality Services International GmbH
• National Risks:
 Political Risk
War, boycott, blockade,
requisitions, etc...
 Risk of prohibited Payments
Through national sanctions;
Payment guarantees
 Risk of changing Laws
Changes of Tax- / CustomsStandards;
Contact to national institutions
20 July 2015
Foreign Trade Risks
©2006 by QSI
Quality Services International GmbH
• International Payments:
• Payments must be received as quick as possible
• Favourable use of Credit Institutions with network of
foreign correspondents
20 July 2015
International Payments
©2006 by QSI
Quality Services International GmbH
• Mode of Payment:
• Payment by Transferrals
• Payment by Cheques
• Payment by Bill of Exchange
20 July 2015
International Payments
©2006 by QSI
Quality Services International GmbH
• Terms of Payment:
• Cash before Delivery / Advance Payment
• C.O.D. = Cash On Delivery
• Clean Payment / Payment On Invoice
• Documents against Payment / inkasso
• Documents against Payment / credit
20 July 2015
International Payments
©2006 by QSI
Quality Services International GmbH
• Contact:
Deutsche Bank S.A.
Av. Leandro N. Alem 855
Piso 29 / 29th Floor
C1001AAD Buenos Aires,
Argentina
Tel.
Fax.
20 July 2015
+54-11-5556-2900
+54-11-5556-2901
International Payments
©2006 by QSI
Quality Services International GmbH
Thank you
for your attention!
Any Questions?
20 July 2015
©2006 by QSI