Logistics and DFI

Logistics and international distribution

Marine transport

• Origin: Buenaventura, Valle del Cauca, Colombia
• Connection: Busan, South Korea
• Destination: Jurong Port, Jurong, Singapore

Packaging and labeling:

• Glass jars of 12cm x 6 cm and 370 ml, for the preservation of the product, separated by corrugated cardboard to avoid friction, the box must be made of double corrugated cardboard (10 per box), protected by polyethylene sheets or air bubbles , these boxes will be transported on pallets (10 boxes per pallet)

The food label should contain the following information in English:

• Food name or description: a common name or description that is sufficient to indicate the nature of the food product.
• Ingredient List: Complete list of ingredients used in food.
• The net quantity: the quantity of food must be expressed in terms of volumetric measure (for example: ml, liters) or the net weight (for example: g, kg).
• Name and address of the manufacturer or importer.
• Country of origin of the food. Some foods will need to have the expiration date marked as "best use by", "best before" or other words of similar meaning.

Incoterms

CFR (Cost and Freight)

CFR, is generally used for the transport of goods in bulk carriers and general cargo ships, also including pieces of large dimensions or a high weight.

This Incoterm is used in maritime transport, although, if the merchandise is to be transported in a container, it is much more advisable to use the CPT Incoterm.

• The 2020 CFR Incoterm can be advantageous for the seller, as they are the one who organizes the transport, often renting the boat, and must pay the cost of the transport.
• Since the cost of transportation is an input to the selling price, the seller will most likely add a margin of error and a markup, all built into their CFR price.
• Like FOB, the seller's risk of bearing loss or damage to the cargo disappears once the merchandise is on board the ship.
• And as happens in FOB, it would be advisable for the seller and the buyer to reflect in the contract how the merchandise is going to be stored.

Documents required for the entry of merchandise:

• 2 commercial invoices.
• Import license.
• Registration in the AVA
• Central Registration Number (CR) of the Singapore Customs Department.
• Bill of landing.
• Proforma Invoice (Invoice) with the value of merchandise to import.
• Declaration of customs value.