Jasmine Gladstone

Transit time is one of the most critical factors in logistics as goods must be delivered at their intended destination at the right time. Shipment delays are caused by various factors. Some of the reasons include vessel delays, logistic constraints and lack of proper coordination of the freights. Vessel delays occur due to factors such as port congestion, bad weather, changes in service schedules and shortage of equipment and space in the vessel. Lack of storage equipment such as containers lead to delayed delivery times as it is critical that service providers wait until appropriate space is attained. Changes in service can be noted in the deviation from the routine routes and if the vessel has to make additional stops. Port congestion leads to delays due to slow movement and handling of the containers. In other cases a delay may arise when the client’s container cannot be located or when the shipment is lost or stolen. Lack of space can result in the event that the vessels are overbooked the client may thus be forced to roll the transportation to the next shipment in which case the client must wait for longer periods. In order to avoid cargo delays It is essential to check and consider the expected weather conditions, holidays in various parts of the world and make a plan based on the evaluated factors. Necessary documentation is key to solving any problem caused by delay as the destinations and routes are taken into consideration.

Standard International Trade Classification is a classification of goods used to classify the exports and imports of a country to enable comparing different countries and years. The classification system is maintained by the United Nations. The SITC classification, is currently at revision four, which was promulgated in 2006. The SITC is recommended only for analytical purposes - trade statistics are recommended to be collected and compiled in the Harmonized System instead. United Nations Statistics Division states : For compiling international trade statistics on all merchandise entering international trade, and to promote international comparability of international trade statistics. The commodity groupings of SITC reflect the materials used in production, the processing stage, market practices and uses of the products, the importance of the commodities in terms of world trade, and technological changes.

The DDU is also called as ‘Delivery Duty Unpaid’ or ‘Door delivery Duty Unpaid”. Delivered Duty Unpaid (DDU) is an old international trade term indicating that the seller is responsible for the safe delivery of goods to a named destination, paying all transportation expenses and assuming all risks during transport. Once the goods arrive at the agreed-upon location, the buyer becomes responsible for paying import duties, as well as further transport costs. I will explain DDU terms of delivery with a simple example. You are a Machinery seller situated near Mumbai, India. The buyer is situated in New York. You are the seller of goods and you have contracted with the buyer and agreed to sell the goods on DDU New York price of USD 6050. Here the selling cost of goods is USD 6050 DDU New York. You (the seller) arrange to carry the goods to Mumbai port, meet expenses including customs clearance in Mumbai, pays the ocean freight or airfreight up to New York, appoint a freight forwarder to customs clear the cargo at New York and deliver the goods at the door step of buyer’s place . In other words, as per DDU terms of delivery, all delivery expenses up to the door step of buyers place in New York is borne by the seller except duty or tax of importing country. DDU terms of delivery has been removed from international commercial terms 2010. DAP has been added which means Delivered at Place.

As soon as entrepreneurs start or plan to start a new business, they begin to hear these terms like VAT, TIN,CST. There are also legal requirements that the business must fulfill. These legalities are important at every step of setting up the business. VAT: Value Added Tax or VAT is a type of tax that is assessed on the increased value of product and service. It is levied on the sale of goods and services such that though it is paid by the producers to the government, the burden of tax ultimately falls on the consumers. TIN: Taxpayer Identification Number (TIN number) is also referred to as Value Added Tax (VAT) Number or CST Number. Allotted by the Commercial Tax Department of respective state governments, this eleven-digit number is mandatory to mention on all VAT related transactions. Therefore, registration for VAT or TIN is a must for any businesses dealing in the sale of goods or products, manufacturing, export, shop-keeping, dealing, e-commerce, etc. CST (Central Sales Tax) ) is a form of indirect tax imposed only on goods sold from one state to another state, which particularly takes into account that the buyer and the seller needs to be in two different states.

Germany is truly recognized as Europe's industrial powerhouse and the world's second largest exporter. The significance of the German marketplace goes well beyond its borders. German market - the largest in the EU - continues to be attractive in numerous sectors and remains an important element of any comprehensive export strategy to Europe. This country provides from its high levels of productivity, a highly skilled labor force, quality engineering, good infrastructure and a location in the center of Europe. The most successful market entrants are those that offer innovative products featuring high quality and modern styling. Germany offers competitive tax regulations, investment incentives and a secure, highly developed political and economic framework. This is supported by excellent infrastructure, good educational system, a highly qualified workforce and a legal system that protects property and individual rights. Germany is one of Europe’s leading automotive manufacturers and exported .