To freight or not to freight...

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Permalink Reply by Anthony Lange on November 21, 2010 at 8:11am

Thanks Brian, I suppose the purpose of my post was for people like myself who are still going through the learning curve of importing cacao. Thank you for you reply. I cannot answer it cause for the most part, what you ask would be location specific. But your questions do serve as a guide as to the TYPE of questions, people like myself should be asking when considering the import option. Thanks again. T

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Permalink Reply by Jim on November 21, 2010 at 5:16am

Anthony,
The single largest problem I have is "Transportation". In addition to the items you listed, you need to explore

Cost of staging to the point of FOB
If you are considering bean shipment, the point of FOB is normally remotely located from the origin of beans and can be substantial. Shipment in excess of 20kg are not normally handled by postal services and requires alternate types of commercial movement. This entails additional steps which include added paperwork and possibly government regulations. Free movement of goods are normally controlled by lots of forms, inspections and controls $$$$$

Fees and Taxes
The simple act of commercial transfer between parties brings out another host of 3rd party blood suckers that add to the misery of buyers/shippers. In Brazil, you must have an official "Export Specialist" (Despechante) in order to process a shipment through the Government Export Process. On reality, you must prepare all documentation and possess an export license prior to submitting goods for export. This "rubber stamp" process cost 1 minimum salary (Today is +- US$ 300. You are also legally bound to contribute 1/2 minimum salary to the union to which the 3rd party "Export Specialist" belongs.

Sanitation Control
All goods shipped normally require "Inspection and Certification" that the goods are free of diseases and are worthy of shipment. This requires plastic pallets or fumigated wooden pallets. another +- US$150. Inspection and subsequent documentation adds another +- US$ 50.00. Specific types of packaging normally apply which in the case of beans, include requirements for unused sacks with very specific information printed ( Origin, product enclosed, Tax ID number, weight and Shipper name). Depending on the importing destination, possible fumigation and other tasks)

Costs of commercial transport....Expensive!!!!
Depending on Origin and Destination and method of transport. Typically out of Brazil this amounts to +_ US$ 1.00 per kg and Full container 20' (15000kg} +_US# 4500.

Since most bean sources originate in 3rd world countries the options for undeclared costs to remove "bumps in the road" from corrupt officials depend on the location and whether the inspector needs additional cash for vacation expenses.

Without any doubt, this subject is well worth extensive research before seller or buyer enters into an agreement. Most of the hassles encountered by individuals are avoided by multinational giants as they maintain large staffs and bank accounts to subvert the problem.

In all cases...BUYER AND SELLER BEWARE....

Jim Lucas

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Permalink Reply by Anthony Lange on November 21, 2010 at 6:23am

My reply is humbled by your response. Wow, Jim. Your post deserves a couple of 'exalts'. Thanks. T

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