In an increasingly eco-conscious world, packaging waste management is a relevant issue. Hence, environmental labeling of packaging has been introduced-an important tool for providing customers with increasingly comprehensive information about a given product. In particular, this labeling is used to identify the materials of which the packaging is made and consequently the disposal directions. Let’s take a look together at the guidelines, obligations and what is new under the law.

Environmental labeling of packaging: what it is and what information it contains

How often does it happen that you don’t know where to throw away the packaging of a product? The consumer receives very little information regarding the proper disposal of packaging, and that’s where the environmental labeling of packaging intervenes. This is a label that is applied to packaging placed on the Italian market to facilitate collection and encourage recovery and recycling. The label, in fact, provides information on the exact composition of the packaging and its destination, so that disposal can be properly managed.

The environmental labeling of packaging, in fact, provides information about the packaging so as to properly manage disposal. Specifically, the following information is provided to the consumer:

• Type of packaging, indicated with a graphic or description
• Identification of the material used, indicated by a code established by Decision 97/129/EC
• Family to which the reference material belongs and indications of the type of collection.

Where should environmental labeling be placed?

Environmental labeling must be made on all packaging that can be separated manually. Accordingly, it should be on:

• Individual manually separable components, such as caps
• On the main body of the packaging
• On the component that already bears the label.

What happens when the size of the packaging does not allow for the inclusion of these markings? Fortunately, nowadays technology comes to our rescue with QR codes or applications aimed at providing all the necessary information.

Is environmental labeling mandatory? What the new legislation provides

If you are a producer, you should know that Legislative Decree 152/2006, containing the information of the packaging waste management activity, was amended by Legislative Decree of September 3, 2020, No. 116, introducing a number of new features. The two main ones concern:

• The obligation of environmental labeling of packaging, in the manner prescribed by UNI technical standards and in accordance with the determinations adopted by the EU
• The obligation on the part of producers to indicate the nature of the materials used for packaging in accordance with the provisions of Decision 97/129/EC (European reference legislation)

However, provision is made for the possibility of marketing, while stocks last, products without the labeling requirements, provided that they are already on the market or already provided with a label.

Environmental labeling of packaging: the CONAI guidelines.

However, the new provisions have raised some doubts and uncertainties. For this reason, CONAI (National Packaging Consortium) has provided guidelines and a tool (e-labeling) to provide companies with answers on interpretative doubts related to the new regulations and to guide operators toward the correct implementation.

The document thus represents a clarification regarding:

• The components on which environmental labeling is required
• The applicable UNI technical standards
• The mandatory and optional contents

 

If you have doubts, do not risk putting on the market a product that is not in line with the regulations, but consult the official CONAI Guidelines.

In logistics, the milk run system is a method of shipping goods used to transport stocks and raw materials from different suppliers to a single destination. It is an efficient logistics process, a real strategic tool for managing deliveries, and a great ally of warehouses that will never be overstocked or understocked.

Let’s see together what the term “milk run” means and how the application of this method works in logistics.

What does milk run mean? The “milk run” in contemporary logistics

Nowadays, in a world increasingly focused on production and consumption, the cost of transportation cannot be neglected. For this reason, it is crucial to optimize shipments by organizing trips in such a way as to fully load the vehicle. As a result, more and more companies are working by following the philosophy of full-truck shipping, but without understanding its limitations: on the one hand, the customer may be oversizing his supply needs, and on the other hand, the supplier may only be interested in filling the vehicle.

It is in this context that the milk run, a strategic alternative for replenishment logistics, is developed. To understand what this is all about, however, we need to take a trip back in time, more specifically to the 1960s in the United States. Families used to leave empty milk bottles outside the door, which were promptly refilled with fresh milk so that they would never be without or overstocked. This is the rationale behind the milk run: managing raw materials according to a useful method that allows the real needs of the stock to be met and delivery to be organized from a Just in Time perspective.

How the milk run process works in logistics

The milk run method in logistics allows companies specializing in transportation to make multiple pickups and deliveries to different suppliers. But how does such a process work?

First, to make transportation efficient and avoid loaded vehicles, milk run logistics requires planning that takes into consideration the route to be taken, different intermediate stops, and delivery times. This will help to assess the most efficient route, greatly reducing transportation costs.

Once the planning is defined, the milk run process comes into motion: the vehicle travels to the suppliers’ warehouses to pick up the load, which will then be transported to the various destination areas, according to the defined route and within the established delivery time.

What are the benefits of the milk run system?

The main goal of milk run logistics is to carry out a lean production process that keeps the number of inventories low, limiting waste. Not only that, with this system the benefits are many:

• It improves stock logistics, as having only the right amount of goods on hand saves space and optimizes storage;
• Involves a reduction in transportation costs because it is planned in such a way that one vehicle can pick up different loads and deposit them at the same end point, without each supplier shipping the goods on their own;
• Environmentally friendly because optimizing transportation has a major impact on reducing CO2 emissions.

 

For a business, therefore, implementing milk run management could bring several advantages in terms of economics and coordination of production resources, greatly improving its performance. If you think your business might require such an approach, contact us; we at C.T.I. International Forwarder are available to provide you with the most effective transportation solutions in line with your business.

In international trade, it can happen that goods, before reaching their destination, must go through customs clearance. For this process to take place safely and smoothly, it’s important to know how the procedure works, which documents are required and what costs are involved. In this article, we at C.T.I. International Forwarder will give you all the information you need for your business.

What does customs clearance mean?

While free trade between EU Member States has allowed goods to circulate freely, in non-European countries, such as China and the United States, products must first be cleared through customs. But what does this mean?

In the context of import/export, customs clearance is a process that involves a series of controls to release goods from customs detention. This ensures that the goods comply with the regulations of the destination country and have met all tax obligations. Once these checks have been passed, the goods are ready to cross the border.

Customs clearance process: how it works

The customs clearance process for import involves:

• The arrival of the goods at customs
• The payment of customs duties and taxes
• Control inspections of the goods and related documentation.

At the end of this process, if everything is in order, the goods are released and placed in the country of destination. On the other hand, there are no customs duties and taxes on exports.

 

The customs declaration: the document required for customs clearance

All customs clearance operations obligate the owner of the goods – or his representative – to lodge a customs declaration. This is a unilateral act manifesting the will to place imported or exported goods under a certain customs procedure. This declaration must be made on a special form, the so-called SAD (Single Administrative Document) and must contain the following information:

• The identity and domicile of the owner of the goods
• The place of origin, provenance, and destination
• The number of packages
• The full description indicating the quality, quantity, commercial designation, and customs classification (HS code)
• The value of the goods and the amount of duty.

As soon as the goods arrive at the customs office of destination, the document is presented to the customs authorities, who are responsible for identifying the customs control circuit of the goods, which can be:

• Green channel, indicating that the goods are compliant
• Yellow channel, indicating that the declaration must pass through a further documentary check
• Red channel, indicating that the goods are to be physically inspected.

Once the inspection is complete, if the goods are found to be compliant, the declaration is signed and officially becomes a ‘customs bill‘.

Customs clearance: how much does it cost?

As we stated above, the customs declaration is also the element that gives rise to the tax obligation. Based on Art. 8 paragraph 3 Legislative Decree 374/90, the determination of customs clearance costs is linked to the parameters relating to:

• The quantity of the goods declared
• Their nature
• Their customs origin
• Bilateral agreements between nations
• Their value.

However, it is not so uncommon to run into misunderstandings: it happens that the goods get stuck in customs and a penalty is charged for compliance or, in the worst case, that it is seized and/or destroyed.

That is why it is necessary to inform yourself properly and seek advice from an expert. Rely on us at C.T.I. International Forwarder: we can support your business, offering you comprehensive customs advice to better manage the customs clearance of your shipments, even in countries with more complex customs regimes and processes.

To plan the logistics of a trade fair, it is essential to take many factors into account and to precisely consider the steps to be taken. In fact, organizing these events in detail means to build a strategy to plan the transport and storage operations, which also includes establishing the timing, the most suitable means of transport and understanding the type of goods to be handled.

In recent years, we at C.T.I. International Forwarder have increasingly specialized in the transport of goods in the eyewear sector, including for trade fairs. To do this, we provide vehicles and specialized personnel to guarantee our customers a complete, accurate and personalized product pick-up and delivery service. In short, we take care of the complete logistics management: this is the key to a successful trade fair event.

Let’s look together at what is meant by ‘logistics management’ for events such as trade fairs and what are the most important steps to follow.

Managing trade fair logistics: what is it all about?

Logistics management is a supply chain process, which consists of planning and implementing the transport and storage of goods from the point of departure to the point of arrival, which in this specific case will be the trade fair venue.

Managing this activity in the best possible way ensures the correct handling of goods on time and reduces transport costs, for complete customer satisfaction. However, considering the duration of the process, it is necessary to deal with it in detail: from strategic planning to the supervision of each individual operation.

Logistics at an exhibition event: how to manage it

When organizing an exhibition event, logistics management plays a fundamental role. So it’s a good idea to analyze the main phases on which to focus your attention in order to ensure the success of the event.

Assessment of Technical and Design Requirements

The first step is the assessment of technical and design requirements. It starts with a discussion with the customer to understand together what the customer’s needs and objectives are, in order to offer a customized, fast and efficient service. In this way it is possible to accurately assess:

• The type of goods to be handled
• The most suitable means of transport
• The time required for delivery

Adoption of a logistics strategy

After assessing the technical and design requirements, a strategy is devised. In this phase, tactics must be adopted to organize and optimize distribution processes, with the goal of reducing losses, maximizing profits, and satisfying the customer.

Tracking and tracing all operations

The entire logistics management process is long and complex, which is why it is necessary to track all operations. This makes it possible to manage time schedules and, in the event of unforeseen events, to intervene promptly, without creating difficulties for the customer.

Supervision and Control

Sometimes the customer may require support in setting up the stands. To ensure an all-round service, we work with trusted partners who complete the set-up operations to a high standard, guaranteeing a complete job and maximum customer satisfaction.

 

We at C.T.I. International Forwarder take care of both public and private trade fairs, all over the world, even in the most difficult countries, thanks to a dense network of relationships and the experience and passion that characterizes our staff. If you need support, do not hesitate to contact us, we are here to offer you the best service for your business.

Since England’s exit from the European Union, the free circulation of goods to and from the UK has also changed. Today, importing and exporting to the UK can be more complicated than in the past. In fact, as of January 1^st 2022, a full border control regime will apply. Let’s look at what has changed since Brexit and all the useful information that you may need when importing/exporting to and from the UK.

Shipping to and from England: What’s new?

The trading economy between Italy and England is one of the most flourishing, but with the event of Brexit, shipping goods to and from the UK requires some extra precautions. While Britain’s former EU membership allowed it to enjoy all the benefits of the unified market, the situation has now changed.

In order to ship physical goods to and from the UK, you must now follow the procedure for shipping outside the EU, which involves:

– Completion of documents for customs procedures.

– The assignment of an identification code to the goods, the sender, and the consignee.

Exporting to England: What has changed with Brexit?

Exporting goods to England requires the submission of full customs declarations, which include:

– Invoice for export: this is the most important document for the customs clearance of goods. It should include the sales invoice number, the name of the sender and consignee, a detailed description of the goods and their Tariff Number (i.e. the customs code).

– Declaration of Free Export: a mandatory document for non-European shipments, certifying that the goods in question are not among those prohibited in the UK.

– EORI Code: a code identifying the economic entity that is to ship goods to the UK.

– Waybill in English: a document certifying that the goods have been dispatched and that sets out the contractual terms with the shipper, as well as the tracking code to monitor the shipment.

– Sender’s identity document and recipient’s contact details.

Importing goods from England: How it works after Brexit

In order to import goods from Britain to EU member countries, you need to:

• Obtain an EORI code.
• Submit an electronic declaration to customs in the state you are importing into. Alternatively, you can hire a customs agent to deal with this.
• File an entry summary declaration (ENS) at the customs office where the goods arrive. The document must contain all the necessary information related to the security of goods and persons.

Shipping to and from England: How much does it cost?

As far as costs are concerned, the EU and the UK have a free trade agreement that does not charge customs duties for importing goods to England in the following cases:

• The goods have European or English origins.
• The materials or workmanship come from a European or UK country.

Otherwise, customs duties must be paid if the total value of the goods is greater than £135.

On the other hand, regarding VAT, for the import of goods and subsequent supply of goods from England to an EU Member State, the applicable rate is that of the destination country.

C.T.I., experts in extra-European shipments

Importing and exporting to and from Great Britain is certainly more complicated than in the past, which is why it is a good idea to rely on expert forwarding agents. For many years now, C.T.I. International Forwarder has specialized in the transport of goods to non-European countries. With care, passion, and, above all, experience, and professionalism, we can offer you a complete and safe service for shipping your goods to the UK.

Intermodal transport is one of the main logistics areas that we deal with here at C.T.I. International Forwarder. It is a method of transferring goods that combines several means of transportation and is an interesting system for companies that want to improve the efficiency of their supply chain. Let’s take a detailed look at what intermodal transport is, how it works, and what its advantages are.

What is meant by intermodal freight transport?

The increase in international freight traffic that began in the early 1950s created the need for increasingly efficient transport solutions, standardizing long-distance journeys and minimizing the use of resources. Hence, intermodal transport is being increasingly implemented to achieve this goal.

According to EU Directive No. 92/106/EEC, intermodal transport is defined as the use of maritime or rail services that span a distance of more than 100 km and that are combined with road transportation at the beginning and end of the journey. Through this method it is therefore possible to optimize the loading and unloading of goods, which, being arranged in loading units such as containers, mobile crates, and semi-trailers, can be easily transferred to different means of transport.

The main characteristic of this type of transport is that the goods must be placed in a specific Intermodal Transport Unit (ITU), from which they are never moved until they reach their final destination. In this way, goods do not have to be handled during transshipment. Furthermore, intermodal transport induces one to consider transportation not as a sum of individual and autonomous activities, but as a global goods transfer process in the perspective of an integrated logistics chain.

Why choose intermodal transport? The advantages

The possibility of combining several means of transport, such as ships, trains, trucks, and planes, makes intermodal transport advantageous in many ways. Let’s take a look at the benefits it can offer:

– Efficiency: the intermodal system maximizes the benefits of the different means of transport used, such as the capacity of trains, the convenience of ships, the speed of planes or the flexibility of road transport.

– Convenience: the combined use of several means of transport makes it possible to optimize time and reduce the costs of transferring goods.

– Safety: the products, placed in dedicated loading units, do not have to be handled during shipment, as it is sufficient to transfer the specific ITU to another means of transport. This reduces the risk of damage.

– Control: intermodal transport involves precise planning of movements between the different vehicles, which allows for continuous tracking.

– Sustainability: intermodal transport is one of the most effective ways towards sustainable logistics. In fact, intramodality foresees the use of road transport only in the first and last mile of the entire transport operation, significantly reducing CO2 emissions.

The differences between intermodal, multimodal, and combined transport

In addition to the term ‘intermodal’, one often hears of multimodal and combined transport, but these are not synonyms. Multimodal transport simply intends a service that uses different means of transportation to deliver goods to their destination. Intermodal transport, on the other hand, indicates a specific type of multimodal transport that is carried out using a single load unit. Finally, combined transport is when the mode of transfer is mainly by rail or sea, limiting road transport as much as possible.

Intermodal transport at C.T.I.

At C.T.I. International Forwarder, thanks to a dense network of international relations and many years of experience in the logistics sector, we plan intermodal transport down to the smallest detail, choosing the safest, fastest, and most cost-effective modes. With competence, dedication, and passion, we strive to guarantee a complete service capable of satisfying all our customers’ needs each and every day.

Order picking is one of the most important steps in the order fulfilment process, but it is also one of the expensive as its costs typically amount to more than half of warehouse management costs. This is precisely why it is important to know how it works and how to make it more efficient. At C.T.I. International Forwarder, we have been doing warehouse order picking for many years, let’s take a look at what this concept is all about, how costs may be kept down, and some useful tips to improve business.

The meaning of ‘picking’ in logistics

Warehouse picking consists in the activity of picking, sorting, and distributing materials from one loading unit to others. Every day, customers order goods that are to be shipped, and the objective of warehouse picking is to group all the items in an order with precision, process them, and send them to the recipients.

A properly functioning picking process can act as an effective warehouse management and monitoring strategy, especially if it is efficiently integrated with other warehouse operations, such as:

• Material procurement
• Order preparation and dispatch processes
• Packaging and wrapping of goods
• Storage and depositing

How picking works

The picking activity consists of selecting a type of product according to the picking list. This list organizes and orders the gathering activity, giving useful information on the location of the goods in question, the warehouse layout, and the quantity required. Once the items on the list have been picked, they must be packed and packaged for dispatch.

Particularly when managing large, well-stocked warehouses, it is important that products are efficiently  positioned and organized so as to optimize productivity and reduce the onerous costs of warehouse picking.

Types of picking: manual and automated

Warehouse picking can be done in different ways, from the traditional, manual picking that sees the physical involvement of an operator, to the more innovative picking approach based on a fully automated system. Both types can be effective, however, depending on the need and size of the warehouse, one will bring more advantages than the other.

Manual Picking

Manual picking is a type of warehouse picking that involves an operator selecting and gathering the units of goods on the picking list. This method is subject to the physical limitations of the human body, which is why it is suitable for smaller warehouses.

Mainly, the task of a picker is to identify and select the products on the list, check for damage, pack and label the order. Finally, the picker compiles a series of documents necessary for filing the order.

Automated Picking

Automated picking, on the other hand, involves the use of advanced technology for the picking of goods. Thanks to digitization, this picking method makes it possible to efficiently cope with the criticalities of a warehouse and aids in improving productivity, optimizing time and reducing the risk of errors.

This solution requires a more significant investment than manual picking, but automated warehouses will be increasingly indispensable as we move into the future, especially considering the characteristics of today’s logistics: demanding, flexible and digitized.

How to improve your order picking

Order picking can exceed 60 percent of a warehouse’s operational costs, which is why it is necessary to be able to implement the activity as efficiently as possible, by adopting more and more technological systems, but also through small measures that can make a difference:

• Appropriate training for picking staff
• An optimization of the warehouse layout according to logical parameters
• Investing in the technologies, from warehouse software to innovative tools such as voice picking, which consists of a voice synthesis device capable of sending commands to the picker, indicating the route to be followed and the tasks to be performed.

Obtaining the status of preferential origin for your products is key for exporting companies that wish to take advantage of the benefits that can be obtained from this condition. In general, the origin of your products, i.e. their “economic nationality”, is a fundamental concept to understand when it comes to customs and duty rates as it influences the amount of taxes due upon entering a country and allows you to avoid possible penalties. Here is a detailed explanation of what “preferential origin” means.

What is preferential origin?

Preferential origin is a status granted to goods originating from certain countries and that have fulfilled certain criteria, granting these goods the right to preferential tariff treatment. This status allows the sender to obtain:

– A reduction or exemption of the amounts due for customs duties

– The abolition of quantitative bans or quotas

Declaring preferential origin is certainly an advantage to be exploited when exporting and/or importing, but it is a complex and delicate process. The rules for acquiring preferential origin in EU agreements are set out in Article 64 UNCRC and the Generalised System of Preferences (GSP), a non-reciprocal, non-discriminatory system through which developing countries can gain preferential access to EU markets.

In order to benefit from these preferential agreements, goods must meet specific requirements, which vary depending on the product and the individual agreements between the EU and each foreign country.

The conditions for determining preferential origin

One of the factors determining the preferential origin of a product is whether it has been produced with raw materials originating entirely from its country of production. If this is not the case, to enjoy the benefits of preferential origin, goods must undergo sufficient working or processing in said country.

Alternatively, preferential origin can be obtained if the product meets the “added value” criterion, which can be reached through two possible means:

– if the value of the non-originating components used to make the product is lower than a certain percentage, which is established according to the invoice price of the product

– if the value of the non-originating components used to make the product is higher than the previously mentioned percentage, but remains lower than the value of the originating components.

For each type origin protocol there is a specific list of rules, i.e. all the working operations that must be considered sufficient, and that must be followed in order to confer preferential origin to the product. In addition, all the processes that would immediately disqualify a product from obtaining preferential certification are also listed.

Declaration of preferential origin: certificates and standards

Once you have verified that you meet the necessary conditions to obtain preferential origin status, you can proceed with your application. Until March 2022, preferential origin was guaranteed by the EUR1 pre-validation form for relations between the EU and countries with specific trade agreements. Since April, however, the European Customs Agency has decided that the pre-validation procedure is no longer necessary, favouring a digitalised procedure via the AIDA portal for requesting certificates. This solution aims to streamline the process and improve control.

Another simple solution is self-certification by the exporter, but this possibility is limited to goods with a maximum value of €6,000. Furthermore, this declaration must be completed according to specific wording provided by the customs authorities and presented with an original stamp and signature.

The regional convention on preferential PEM rules of origin

The regional Convention on Pan-Euro-Mediterranean (PEM) preferential rules of origin provides common rules of origin among more than 20 EU partner countries to facilitate trade in the pan-Euro-Mediterranean free trade area. Since 2012, a modernisation process has been taking place and some countries have decided to temporarily apply the revised rules. As of September 1^st, 2021, these changes are applicable in trade between the EU and Albania, the Faroe Islands, Georgia, Iceland, Jordan, Norway, Switzerland, Palestine, and North Macedonia.

Over the years, here at C. T. I. International Forwarder our specialization in the integrated logistics sector has increased as we consistently adapt our approach to ensure that all our customers’ needs are satisfied. But what exactly does this type of logistics entail? This concept is becoming increasingly widespread in the goods transportation sector. Let’s take a closer look at the definition of integrated logistics, how it works, and the advantages it can bring to companies.

What is integrated logistics?

Integrated logistics is an innovative process for planning, implementing and controlling all activities that constitute the transportation and flow of raw materials and semi-finished and finished products from their place of origin to the end customer. These processes include:

• Order management
• Stocking
• Warehouse management
• Shipments
• Goods tracking
• Returns management

In order to provide a complete overview of integrated logistics, it’s necessary to take a step back in time. Up until the 1960s, traditional logistics, that is, all activities required to move a product from the supplier to the consumer, were carried out with a fragmented approach where divisions remained divided and were managed independently. In later years, this approach was replaced by an integrated system based on the strategic co-ordination of all management activities in order to make it more efficient, reduce time and costs, and better satisfy customer needs.

Integrated logistics: how it works

So how does integrated logistics work? First, integrated and flexible logistics require a high degree of digital maturity for all operations, those related to storage and dispatch, as well as the real-time tracking of goods.

To make this complicated system easier to understand, it can be divided into two streams:

– Physical flow, the operational aspect of logistics including procurement, production support, distribution, and eventual recovery;

– Information flow, related to on demand information, logistical planning phases, production schedules, and supply chains.

It is essential to optimize these flows to reach efficiency, profitability, and quality of service objectives, to satisfy new customer needs, and to be competitive in today’s market.

The benefits of integrated logistics

The integrated logistics system, thanks to the synergy that characterizes all phases of the process, creates a series of benefits for both companies and customers:

• Maximizing time and saving money
• Better use of human resources
• Management optimization, given the presence of a single unit to whom the entire process is entrusted
• Greater customization
• Increased competitiveness in the global market

Nowadays, in our fast-paced world, the concept of integrated logistics continues to adapt, changing and adjusting to the evolution of supply chain management, which is being characterized by the improvement of management flows and the collaboration amongst external players. In this context, integrated logistics takes on a new approach in which the company becomes part of a network of players who all work together to provide products and services that create added value for the end customer. And that’s how we work at C.T.I. International Forwarder, guaranteeing that those who rely on us receive a specialized, attentive, and tailor-made service.

Among the various problems triggered by the Coronavirus there are also those related to logistics, such as the shortage of containers worldwide.

This has consequences for both producers and distributors, causing both delays and increases in transport costs, so much so that the Financial Times has called it the biggest crisis since the beginning of shipments by container. This crisis was mainly caused by the pandemic and worsened by adverse events such as the Ever Given grounding, the closure of two Chinese ports, the port of Yantian for a Covid outbreak in May and that of Ningbo-Zhoushan in August for the same causes. These events, however, have only highlighted the preexisting problems as many ports are inefficient and cannot manage the traffic of modern ships, which are too large for the existing infrastructures. Furthermore, the flow is based on a delicate balance of timing to have intermodal flow without delays. The slippage of the arrival of ships leads to slowdowns along the entire chain.

Among the most congested ports are those of Karachi, with an average delay of 27 days (and peaks of almost 90 days), Fos Sur Mer (France) with 16 days, Charleston, Long Beach and Atlanta (USA) with an average of 25 days late, Santos (Brazil) and Tomakomai (Japan) with an average delay of 15 days. To make up for these delays, ships may decide to skip some ports along the route (so called “blank sailing”), resulting in a delay in the delivery of goods that had to be unloaded and loaded in that port, as the routes are “circular” and then the ship returns to the port on the next “lap”.

Furthermore, measures put in place everywhere to counter the pandemic have created further delays, due to closures, buffers to be presented and so on. Secondly, there is the increase in consumption, resulting in an increase in the supply of raw materials / goods. In addition to this, given the collapse of global trade during the lockdown, many shipowners have canceled hundreds of ship trips, both to save on empty trips and because they took advantage of it to refurbish ships, thus leaving empty containers in the ports of destination, without being able to bring them back to the places where they would be needed (in particular the China -> USA route which after the reopening saw a displacement of over 4 million TEUs from September to December, without them returning to China). Consequently, this lack of gaps has created an imbalance between supply and demand, causing freight costs to rise, which have reached record levels with average increases of 800% on all routes.

Over this time horizon, the greatest threat remains the closures due to the outbreaks of Covid, especially in China where stringent rules and maneuvers are implemented, creating greater uncertainty on the timing of resorption of delays and consequent return to normality both in terms of punctuality and costs.

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The subject is highly complex but we will try to provide a basic idea; for a closer look, the CTI staff will be at your full disposal.

Non preferential origin and preferential origin

The concept of “origin” has become important especially for consumer protection. In the customs and excise field, the origin of goods is a complex concept which is of fundamental importance: the exact identification of the origin of goods is essential for a proper settlement of the tax due and to avoid incurring penalties resulting from failure to observe restrictions on import and export.

Non-preferential origin

By “non-preferential origin” we mean, in accordance with the provisions of Community regulations, the place of production of a good or the place where it has undergone its most recent substantial transformation. It can be stated that, for non-preferential origin, it is sufficient (exceptions) that a commodity undergoes substantial transformation on the territory irrespective of any percentage of domestic or foreign commodity used in production. From a customs and excise point of view, it is commonly found in the change of customs heading (the first four digits) a sufficient activity to change the origin of the goods. Establishing the origin can be more complex for a product made in a country using imported raw materials or parts. In principle, it can be stated that all the activities of mere conservation of a product, or which are limited to changing the appearance of the goods (e.g. change of packaging, packing or box) can never be considered sufficient to confer the origin of the goods as they do not materially alter the commodity itself (the good is and remains as it is, albeit with external appearance, although different).

The certificate of origin issued by the competent Chamber of Commerce is the document certifying at international level that the goods have actually been produced (or have undergone “the ultimate substantial transformation”) in a particular country. Therefore, in the case where it is shown that the goods could not receive such a certification, the consequences, which may be of a criminal nature, relate solely to the person who made the declaration and requested that the certificate be issued, incurring in this case a “false declaration of origin”.

Production which, by its nature, must always be considered insufficient to confer the origin:

1. Handling intended to ensure the preservation of the products

2. Simple dusting, sifting, sorting, classifying, assortment, washing, reduction of pieces

3. Packaging changes, divisions or match meeting

4. The affixing of brands, labels or other distinguishing signs on products or their packaging

5. The simple assembly of parts of products to make up a finished product

6. The accumulation of two or more of the above listed operations

 

Preferential origin

For products imported from certain countries and meeting specific requirements, provision may be made for granting “preferential origin”, namely the granting of import duty benefits (reduction or exemption of duties, abolition of quantitative restrictions or with fixed quotas). Basically there is generally an agreement between two countries From a general point of view, a commodity, which does not meet the requirements to be considered “entirely obtained” in a given country, must be “sufficiently” processed to be considered “original”. The identification of the processes that are considered sufficient to grant origin is instead based on the origin protocols of the individual agreements signed by the EU with certain non-EU countries, as sometimes the rules may differ in themselves, even considerably.

If you would like to know more about it and know what CTI could do for you, ask us.

 

MIDO, the international optics, optometry and ophthalmology exhibition that will be in Rho Fiera Milano from April 30^th to May 2^nd 2022, is just around the corner. The eyewear show is organized by ANFAO, the Italian Association of Optical Goods Manufacturers, and we at C.T.I. International Forwarder are the first and only official forwarders to take part in the most important event for the industry.

MIDO is the most complete, fascinating, and avant-garde exhibition of the eyewear world. This event marks an important and exclusive opportunity for the major names in the optical industry to introduce their new products. However, it is also a space designed to discuss the trends of the future and create a network of shared knowledge and innovation. In this way, MIDO is a creative laboratory where participants can explore and test innovative projects. MIDO is an event not to be missed, whether you are a specialized professional in the business or are just looking for innovation and inspiration!

Over the last few years, our teams at C.T.I. International Forwarder have specialized in the transportation of products related to the eyewear sector. We provide vehicles and specialized personnel to guarantee our customers a complete, accurate and personalized package of product pick-up and delivery.

Come and visit us at MIDO, we will be at stand D16 in hall 24 for the whole duration of the fair. And, if you need to send your merchandise to the show, please don’t hesitate to contact us.

 

Groupage transport is a particular type of shipment that consists in combining goods ordered by different customers into a single transport operation. In order to efficiently carry out groupage transport, it is necessary to precisely follow process at all times, that is, reception, storage, order preparation and dispatch of the goods.

This activity has the potential to become rather complex. For this reason, to guarantee an efficient and safe groupage service here at C.T.I. International Forwarder, we put our competent operational staff at your disposal, who are dedicated to managing each operational phase with care, attention, and speed.

 

What is groupage transport in logistics?

Groupage transport is becoming increasingly popular in national and international trade. But what exactly is it? Groupage is a type of transport that consists in grouping and consolidating goods that have the same or similar origins and destinations so that a single means of transport is used.

When a customer needs to ship small consignments of goods that do not take up the entire space of the required vehicle, they can opt for groupage transport by purchasing individual truck lots or containers. The products are then grouped together with those of other senders and shipped in a single loading unit. This optimizes transport management and thus saves shipping costs.

Groupage is therefore the ideal solution for companies that do not have a high volume of shipments, which is often the case for the eyewear sector. CTI has specialized in this growing sector, becoming a point of reference for transportation to hard-to-reach countries, as we also offer our clients a complete service in customs assistance.

 

The stages of the groupage process

The groupage process consists of several stages that must be organized and managed in detail by professionals in order for the shipment to be a success:

• Collection of goods by pre-defined zones
• Consolidation of articles according to destinations
• Transfer of goods, by appropriate means of transport
• Sorting of the packages, which are then grouped according to destinations

Delivery to various destination areas

 

Shipper obligations for groupage transport

The shipper that relies on a groupage transport service must provide the carrier with all the necessary documents for the shipment, especially in the case of dangerous, perishable, or valuable goods. In addition, they must fill out information documentation for the carrier, including:

• Recipient’s delivery address
• Number of packages, weight, volume and maximum overall dimensions
• Name of recipient
• On-call hours and closing times of the institution or establishment of destination

 

Carrier obligations for groupage transport

Once the groupage service has been commissioned, the shipping company commits to dispatching the goods by the deadline set by the customer. However, as far as the provision of the service is concerned, the company is free to choose which routes and means of transport are to be used, as well as the itinerary to be followed. At C.T.I. International Forwarder, having operated in the shipping sector since 1997, we ensure precision and a speedy service thanks to state-of-the-art transportation and, above all, an expert team that studies the best solutions, predicting and preventing possible criticalities to guarantee a successful shipment, whatever the destination.

The cold chain is the process of maintaining the temperature of food or pharmaceutical products throughout their journey from production to sale. Within this cycle, cold logistics play a fundamental role in enabling goods to reach the end consumer intact. The cold chain is one of the most dynamic sectors in which C.T.I. International Forwarder operates, providing our customers with an efficient and cutting-edge service.

What is a cold chain and what are its stages?

For companies working with fresh food, frozen products, or medicines, the cold chain is one of the most crucial aspects of safe and sanitary product delivery as it allows avoiding thermal shocks that may alter product properties. In fact, cold chain is precisely the process of maintaining a constant temperature of these delicate goods throughout their life cycle from production to sale, including transport, storage and loading and unloading.

In order for these products to arrive to the end customer intact, it is therefore necessary to ensure the efficiency of each stage of the cold chain, namely:

• After production, the first storage of the article takes place, with possible rapid blast chilling
• Storage in temperature-controlled cold stores
• Transport from production centres to storage warehouses using suitable vehicles
• Storage in warehouses
• Transport to distribution centres, using vehicles equipped to keep the temperature under control
• Refrigerated point-of-sale storage

Every single step is of fundamental importance to avoid product deterioration. This is why the entire cold chain must be controlled through a quality management system that documents and shares updated data with all operators involved.

Given the care required in this process, our company ethos of compliance with regulations provides a selected and trained staff to deal with every aspect of cold logistics, ensuring the correct storage of products.

Cold chain safety and relevant regulations

The cold chain requires qualifications, precision, and strict compliance with the laws relating to food hygiene, as set out in the HACCP (Hazard Analysis and Critical Control Points). This set of regulations aims at guaranteeing product health and is a true control system that involve all the players in the cold chain: producers, transporters, and distributors.

Therefore, to avoid any contamination or degradation, operators involved in the various cold chain stages are required to meticulously comply with:

• Constant cleanliness and hygiene of premises, equipment and means of transport
• Pre-established critical limits in the various stages of the cold chain
• The temperature capacity of different means of transport

What temperatures should be maintained in the cold chain?

Temperature-sensitive products must therefore follow precise hygiene measures and respect the temperatures laid out by the law. Frozen foods, as declared by Legislative Decree No. 110 of 27 January 1992, must maintain a constant temperature of -18° Celsius, however, during transport, small upward fluctuations of no more than 3°C are permitted. As far as fresh food is concerned, each has its own reference temperature, for example:

• Meat +7° C
• Fish +2° C
• Fresh products +5° C

Finally, the same applies to pharmaceutical products which, depending on their type, are subject to specific temperatures and tolerances. Not only that, in some cases additional parameters such as the level of air quality are also required, which can make the correct cold chain process even more difficult.

It is very important that these temperature limits are respected as the interruption of the cold chain causes the formation of certain micro-organisms that can deteriorate the product and make it harmful to the consumer’s health.

Transport and cold logistics

In regards to cold logistics, the transfer of temperature-sensitive products requires the use of suitable means of transport, manufactured according to European ATP (Accord Transport Perishable) standards. In addition, the transporter is charged with the task of:

• Arranging the goods for proper cold air circulation
• Measuring the temperature of the products during the entire journey
• Documenting the data in order to make it available to regulatory bodies

This is therefore a complex sector that requires experience, expertise and attentive care. For this reason, it is always advisable to rely on expert companies, like us here at C.T.I. International Forwarder. Thanks to a widespread network of operators and state-of-the-art equipment, we guarantee efficient management of the cold chain in both the storage and transport of products at controlled temperatures and ensure maximum protection for our customers and end consumers.

 

The International Transport Forum (an organization operating within the OECD) has for years been warning about the size of container ships which they consider are too large.

Following the blockade of the Suez Canal, the debate entered the public domain, leaving serious doubts on the balance between pros and cons regarding the size of these vessels. According to an analysis by Allianz, the number of 20-foot containers that ships can transport has increased by 1500% over the past 50 years. In 2006 there was a decisive leap when Maersk introduced the first mega-ship which could carry about 15 thousand containers, doubling the previous record. To date, there are about 133 ships with a carrying capacity of between 18 and 24 thousand containers. This development is mainly due to the economy of scale: the use of a single ship instead of two to transport the same cargo saves fuel, significantly reduces the cost of transport per container and reduces the environmental impact of the ship. However, there are also negative aspects, namely the risk of accidents due to the greater risk of losing part of the load because of bad weather, having a larger surface area and consequently more height, and greater manoeuvring difficulties, especially in the narrowest channels such as the Suez and Panama canals. Furthermore, only a few companies own all these giants of the sea, and they can easily meet around a table to define tariffs and service protocols together.

At the same time, there are not very many ports that could be widened and deepened to accommodate such ships and offer shore services and efficient connections. In addition to these complications, we must consider the delocalisation of production with respect to where the consumption will take place, this concerns not only low-tech products, but increasingly semi-finished products. For example, to put together an iPhone, Apple has to count on prompt supplies from 49 countries. Pfizer vaccine has 5,000 suppliers located around the world. It can therefore be said that international economic integration requires efficient supply chains and the only apparent answer at the moment is the use of mega ships.

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Similar to the effects that 9/11 had on air transport, the current pandemic caused by the new Coronavirus has created an unprecedented worldwide crisis and has led to significant changes in cargo shipments.

Transport of goods is a fundamental pillar of the European Union considering that the logistics and transport sector has a value of 675 billion euros and the volume of goods traffic handled within the Union amounts to 3731 billion tkm (tons transported per kilometre) and employs 11.7 million people, suffice it to recall that during lockdown, the flow of food supplies and essential goods was not interrupted, with articulated lorries and trucks crossing along empty highways, and containers and cargo trains in deserted ports. But, despite all this, there have been very serious repercussions on transport, with a collapse of international trade due to a huge fall in supply and demand.

Air cargo sector has been the most affected, with an estimated loss of -16.8% for 2020 in terms of tkm (in the first 5 months of the year it had dropped by -26.7%) due to the significant reduction in flights, with passenger flights decreased by 95%, leading to countless inconveniences, delays and price increases for goods sent by air. Belly capacity, which means hold capacity, has dropped by 70% and is currently seeing a lot of competition, thus compensated by a 32% increase in the use of all cargo aircraft, but without an increased demand.

Furthermore, the decrease in passener flights to certain places such as small cities, makes the shipment of goods to these destinations even more complicated, requiring a multimodal shipping service, or the combination of several services, for example transport by air and land: shipping the goods first by air to larger neighbouring cities and then continuing by truck.

According to studies by McKinsey (a consultancy firm), international freight volumes will take 15 to 48 months to return to the levels of the last trimester of 2019, with some locations more affected than others. Unfortunately, the rush to bring personal protective equipment (PPE) to markets has diminished as supply chains have become regulated.

As international freight forwarders, we at C.T.I. will help you organise new strategies for the transport of your goods, providing the best solutions in terms of scheduling and budget at any time of the day and making the whole operation simple for you.

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The harmonized system (in English Harmonized Commodity Description and Coding System or, simply, Harmonized System – abbreviated as HS code) is a standardized system of nomenclature of customs tariffs that classifies each individual product through the use of a series of numbers.

This numbering is used in trade between nations, both in exports and imports, to allow a clear and rapid identification of goods.

Initially, the harmonized system was introduced by the “Custom Cooperation Council” in 1983, which then evolved into the WCO (World Custom Organization – WCO), a supranational organization based in Brussels (Belgium) and with over 170 member states.

HOW IS THE HARMONIZED HS SYSTEM DIVIDED?

The harmonized system (HS) is divided into 21 sections, subdivided in turn into 99 chapters sorted by type of goods, to reach 5000 groupings of goods.

The basic classifications, harmonized globally, are contained in the first 6 digits of the code (the first 2 digits correspond to the section, the second 2 digits correspond to the chapter and the third 2 digits correspond to the grouping of goods) and each state can divide further the goods included in these items, therefore from the seventh digit onwards the various customs tariffs may differ from each other. This structure is updated every 5 years, to take into account the evolution of the products subject to international exchanges, the last update took place in 2017.

WHAT ARE TARIC CODES?

The TARIC code is a method of classification and identification of goods traded internationally between the member states of the European Community, for the purpose of determining customs tariffs. TARIC codes, that is, the “Community customs tariff” have been applied in the European Union since 1987. TARIC codes are composed of 10 digits and are based on the nomenclature of the Harmonized System (HS) established by the international convention of the same name. They include, in addition to the rates of duties applicable to imports from third countries, the preferential duties applicable to goods originating in the countries to which the European Union has granted special treatment and a whole series of other specific measures.

The correct coding of goods is extremely important as it influences the application of import duties.

Do you want to know more about this topic?

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From January the 1st, for decision of IMO (International Maritime Organization) the “Sulphur Cap” will come into force. The Sulphur limit will then change from actual 3,5% to 0,5%.

According to the study “Global Sulphur Cap 2020”, recently published by DNV GL on the case, more than 70.000 ships will be involved globally. If the ship is not up to code from 1/1/2020 won’t have the permission to sail.

To meet the conditions of the legislation by 2020, shipping companies will have to comply with these by choosing one of the following options:

1. Using new fuel: before the end of the year, all ships of the fleet must have done the tank cleaning from the remainder of the old fuel in order to use the new one. The cost of the “Sulphur compliant” fuel oil is, however, much higher than the standard and the vessel must be stopped to do the cleaning.
2. Installing “Scrubber”: a filtering system for Sulphur oxides, a very expensive process (from 2 to 10 million dollars, depending on ship’s dimensions) without considering that installation requires a dead ship.

Both solutions entail the detention of the vessel and massive extra costs for the companies.

But what happens to me as a customer?

Limited spaces on ships, since they will be stopped in rotation in order to comply with the regulation from January the 1^st, and higher costs for shipping companies will affect end-consumers too.

If you would like to know more about it and know what CTI could do for you, ask us.

 

How many times in your life have you dealt with the topic of the chargeable weight of your shipment with carriers? Everything will not always have been made clear to you, while a considerable weight is covered with taxes and costs that you or your customers face daily

We plan to sort out any concerns you may have by helping you to understand and teaching you to calculate the chargeable weight, depending on the type of shipment you are making so that you are not unaware of the facts in this matter. The premise, although trivial, is that the volumetric space is calculated by multiplying the three measurements length, width and height of each carton or package sent. The result is divided by the ratio applied to the individual type of delivery that varies according to whether it is shipped by air, sea, land or courier.

This result will be compared to the gross weight of the goods. The highest weight between the gross (real) weight and the one obtained from the calculation will be the one taken as the weight to be considered for the shipment.

Here are the weight / volume ratios.

• For air cargo: The volume to weight ratio is very simple, for every cubic metre of space a weight of 167 kg (formula: 1 CBM = 167 kg) is estimated, but if the weight exceeds the estimated weight, taxation will be applied on the actual weight. Example: 5 parcels with a total weight of 250 kg single item size of 60x70x80 cm. Shipment volume will be calculated as 5 x 60 x 70 x 80 = 1.68 m3 The chargeable weight will be 1.68 m3 x 167 = 280.56 Thus the cost of shipping will be calculated on the chargeable weight of 280.56 kg.
• For sea cargo: (In the case of LCL) the tax is applied per cubic metre or per ton according to the ratio: 1 cubic metre = 1 ton, (expressed in W / M formula). That will multiply the rate for the volume if in absolute terms the value in cubic metres is greater than the value in tons and vice versa for the weight if the value in tons is greater than that measured in cubic metres. Example: 8 packages with a total weight of 2200 kg individual packet size 120 x 80 x 150 cm The volume of the shipment will be determined as = 8 x 120 x 80 x 150 = 11.52 m3. The chargeable weight will thus be 11.52 m3 x 1000 kg = 11520 kg that is greater than 2200 kg. Thus the cost of shipping will be calculated on the chargeable weight of 11520 kg.
• For overland transport: In general, in the case of truck shipments, the tax is applied per cubic meter or kilogram according to the ratio:1 cubic metre = 300 kg. That will multiply the rate for the volume if in absolute terms the value in cubic metres is greater than the value in kilograms and vice versa for the weight if the value in kilograms is greater than that measured in cubic metres. Example: 5 parcels with a total weight of 700 kg with the size of each package 120 x 80 x 100 cm The shipment volume is determined as 5 x 120 x80 x 100 = 4.80 m3 The chargeable weight will be 4.80 m3 x 300 = 1,440 kg Thus the cost of shipping will be calculated on the chargeable weight of 1440 kg. Courier shipments need to be considered differently as they often differ depending on the carrier concerned. We hope we were able to make all this all bit less obscure but if you require further clarification, please contact us, our staff are always at your disposal.

The Food and Drug Administration (FDA) is the U.S. government agency that regulates the products that are marketed in the United States, from food to ethical medicines.

The FDA reports to the U.S. Department of Health and Human Services. The primary objective of the Food and Drug Administration (FDA) is to protect and safeguard the safety and health of citizens by issuing rules and principles of control, regarding the marketing of products, which are investigated according to rigorous processes, including: medicines, foods, supplements and food additives, animal feed and veterinary drugs, medical devices and equipment (including glasses), blood and blood products for transfusion, and cosmetics. Instruments used for control include both pre-marketing assessments and postmarketing monitoring.

For this reason, the first step for any company that intends to export to the United States is FDA registration, which is valid for the calendar year (so regardless of the registration date, it runs out on December 31st).
Until 2012, registration for glasses manufacturers had no cost, but in 2013 the Obama administration put glasses on the same level as medical devices. The cost for 2022 was $ 5,546.00. For 2023, the total cost increased to $ 6,493.00 and for 2024 it has been set at $ 7,653.00.

In order to register, companies must appoint a “representative” based in the States, who the FDA will refer to in case of any problems.
At the end of the registration (which can be done online) you will receive your so-called FDA number, which will be specified in the documentation that your US broker will submit to US Customs and allow your good to be cleared.

In addition to the registration of the manufacturer, the recipient must also be registered with the FDA and declare who the manufacturer is.
To date, however, there are some exceptions for authorised practitioners who create or modify a medical device, which is also applied to stores and similar outlets that make direct sales to the final consumer (Direct Sales Under 21 CFR 807.65)

The matter is, however, very complex and intricate, as there are exceptions and inconsistencies depending on the customs officer and the customs through which the goods enter the United States. If you would like any further information, all CTI staff is at your full disposal, including the support of our agent who can also act as an FDA representative.

From 1 October 2018, new regulations will come into force for the import of packaging and wood products from these countries

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