Global Sourcing Logistics: How to Manage Risk and Gain Competitive Advantage in a Worldwide Marketplace

DOCUMENTATION DETAIL

Documentation detail became much more critical after

9/11. Freight to and from the United States underwent new

documentation and procedures before allowing to transit.

The government’s response to control inbound freight was

the 24 Hour Manifest Rule. This regulation required carriers

to transfer detailed manifests to CBP on inbound ocean

freight 24 hours before the vessel sails from the foreign port.

The 24 Hour Rule placed very tight communication and

information transfer responsibilities on overseas suppliers,

inbound carriers, and importers in the United States.

Some regulations already in place were modified and

pursued. One such regulation concerned deemed exports.

The deemed export regulations redefine exports to include

the transfer of information, capability, and wherewithal to

foreign nationals to be handled as if it was a physical export.

For example, a U.S. company developing foreign capability

has a foreign national visit the United States to train. The

U.S. company would have to review the export regulations

to determine whether that learning process can be deemed

exported legitimately. The nature of the knowledge transfer,

the specific individual, and the county of utilization, along

with the end use of the information, would all be taken into

consideration before the training could even begin, if it

could be implemented at all.

INBOUND SUPPLY CHAINS REQUIRED

CHANGES

Logistics and purchasing managers had to examine the

inbound processes and modify them to conform to the new

regulations. The regulations increased for more difficult im-

ports, such as with hazmat materials, chemicals, pharma-

ceuticals, and energy-related goods. Identifying suppliers

and products before arrival, increased documentation, and

increased CBP scrutiny were also consequences of 9/11

regulation changes.

102 GLOBAL SOURCING LOGISTICS