Dch Logistics

Topics: International trade, Management, Supply chain management Pages: 4 (1058 words) Published: November 12, 2012
DCH Logistics
Planning for La Cafetière
What are the advantages of having a bonded Warehouse and how can it help in doing international business?

A Bonded Warehousing can be defined as storage, manipulation, or further manufacturing of dutiable goods in a building or other secured area without the payment of duty on it.

Advantage:

Goods can stay in a bonded warehouse for an unlimited period of time, and no import duties and VAT will have to be paid until the moment they are actually imported into free circulation in the EU, e.g. to be transported to a customer. - You get the possible suspension of certain trade policy measure (license, ID, ...) - You get a significant cash advantage, because the fees and charges are payable only when goods are released for consumption, - Your competitiveness is increased in the case of re-export to third countries, since tariffs have not affected the cost. Customs duties and VAT at import are only paid in the country of destination, and double payment is avoided -Goods kept in bonded warehouse are used as collateral security for bank loan. -Goods kept in bonded warehouse are safe and are free from the fear of being stolen or damaged.

All those advantages are useful to do international business

What are the common logistics issues faced by multinational companies?

Common logistic issues that multinational companies often have to cope with : * Late delivery
* Bad or poor infrastructure in some countries: to receive the goods, road, hardboard…

* Environmental/political issues in the host country, Regional trade agreements * Legal : trade regulation & standars
* Trade protection mechanisms, Tariffs , Quotas, Voluntary export restriction, Local content requirements, Health/environmental regulations, Government procurement policies * Customs procedures and regulations as well as cross-border points infrastructure and operations * Quality management is often done in the origin...
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