Newsletter ‑ Summer 2010
The Changing Face of the Import Business of Food Additives and Other Related Raw Materials
The import business of food additives and other raw materials has changed significantly over the last 15 years and CAF has evolved with it. Prior to the mid‑90s, our industry was a trader‑oriented business, with most importers selling products made by many different manufacturers, even within their specific product classification. A typical example would be to find an importer who not only sold a product like MSG from Korea, but also from Taiwan and China. At that time, the average customer would not be concerned about the origin of the product or the name of the plant. As long as the product met their in‑house specification and was priced competitively, there would be no further questions or requirements by the customer. The other salient characteristic was the lack of inventory by the importer and/or trader. Sales were generally on a back‑to‑back basis with no back‑up inventory by the importer.
Currently, the industry has changed dramatically and CAF has subsequently changed its business practices to stay ahead of the curve. Due to the plethora of goods made in Asia, and the resultant large number of manufacturers, the business has become more specialized. Not only is origin important to the customer, but the specific name of the overseas factory is often critical. Because there are now so many more producers involved, the industry has become manufacturer specific. Due to the influx of import traders compensating for the increase in product importers, many end users have gravitated towards an import/distribution industry. The flooding of the market with so many products from a multitude of countries has forced the end customer to depend on specific specialized suppliers to make this process easier.
Specialization
is now accentuated as the customer depends on the importer/vendor
to hold inventory, as well as to import larger quantities from
approved sources. The inability of the end customer to individually
qualify each manufacturer has resulted in greater dependency on the
importer and brought a transparency to our business and a resultant
specialization that did not exist 15 years ago. CAF concentrates on
a number of core products that are industry and supplier specific
with inventory for all applicable customers. CAF’s commitment to
our customers is products that are manufactured under the strictest
quality control, competitively priced and delivered on time.
Frequently Asked Questions About Importing
Where can I go to calculate converting
pounds into kilograms?
Try the website
www.calculator‑converter.com. It
will convert either way to three digits after
the decimal point.
You can also use
Google for conversions by entering your request directly into
the search box, like
7600 lbs in kg.
What are the current trade numbers
for the U.S.?
As of April, 2010:
Balance: ‑$40.3 Billion
Exports: $148.8 Billion
Imports: $189.1 Billion1
What are the current top ten countries
that the US imports goods from?
In order of volume they are: China (25.9%
of all imports), Canada (23.7%), Mexico
(18.5%), Japan, Federal Republic of
Germany, Korea, South, United Kingdom,
France, Saudi Arabia, Taiwan, Venezuela,
India, Nigeria, Italy and Ireland.2
Has the US increased the amount of
goods imported from India over the
last 10 years?
In 1999, the US imported more than 9
million dollars worth of goods from India. In
2009, the US imported over 21 million dollars
worth of goods from India, more than
doubling the amount imported from India in
a ten‑year period of time.3
Has the US increased the amount of
goods imported from China over the
last 10 years?
In 1999, the US imported more than 80
million dollars worth of goods from China.
In 2009, the US imported over 296 million
dollars worth of goods from China, an
increase of over 350%.4
What is a bonded warehouse?
An approved private warehouse used
for the storage of goods until duties or
taxes are paid and the goods are properly
released by U.S. Customs and Border Protection
(CBP). Bonds must be posted by the
warehouse proprietor and by the importer
to indemnify the government if the goods
are released improperly. Goods entering a
bonded warehouse are included in General
Imports but not Imports for Consumption.
They are considered Imports for Consumption
when they leave the bonded warehouse
for domestic consumption.5
What is the shipping weight?
The shipping weight represents the gross
weight in kilograms of shipments, including
the weight of moisture content, wrappings,
crates, boxes, and containers (other than
cargo vans and similar substantial outer
containers). Shipping weight data is available
for shipments by vessel and air only.6
What is CIF?
The CIF (cost, insurance, freight) import
value represents the landed value of the
merchandise at the first port of arrival in
the United States. It is computed by adding
import charges to the Customs value and
therefore excludes US import duties.7
What is FOB?
FOB is an initialism which pertains to the
shipping of goods. Depending on specific
usage, it may stand for Free On Board or
Freight On Board, with similar but distinct
implications. FOB specifies which party
(buyer or seller) pays for which shipment
and loading costs, and/or where responsibility
for the goods is transferred. The last
distinction is important for determining
liability for goods lost or damaged in transit
from the seller to the buyer.
Free on board means that the seller delivers
when the goods pass the ship’s rail at
the named port of shipment. This means
that the buyer has to bear all costs and
risks of loss of or damage to the goods
from that point. The FOB term requires
the seller to clear the goods for export.
The buyer is responsible for all the costs
incurred after the cargo has been LOADED
on board.
The meaning and usage of “FOB” can vary
significantly. International shipments typically
use “FOB” as defined by the Incoterm
standards. Domestic shipments within the
US or Canada often use a different meaning,
specific to North America, which is
inconsistent with the Incoterm standards.8
1. U.S. Census Bureau, “Foreign Trade‑Main”, n.d.,
http://www.census.gov/foreign‑trade/index.html (accessed June 16, 2010).
2. U.S. Census Bureau, “Foreign Trade Statistics”, n.d.,
http://www.census.gov/foreign‑trade/statistics/highlights/topcurmon.html
(accessed
June 16,2010).
3. U.S. Census Bureau, “Foreign Trade Statistics”, n.d.,
http://www.census.gov/foreign‑trade/balance/c5330.html (accessed June 16, 2010).
4. U.S. Census Bureau, “Foreign Trade Statistics”, n.d.,
http://www.census.gov/foreign‑trade/balance/c5700.html (accessed June 16, 2010).
5. U.S. Census Bureau, “Foreign Trade‑Definitions”, n.d.,
http://www.census.gov/foreign‑trade/reference/definitions/index.html (accessed
June 16, 2010).
6.
http://www.census.gov/foreign‑trade/reference/definitions/index.html
(accessed June 16, 2010).
7.
http://www.census.gov/foreign‑trade/reference/definitions/index.html
(accessed June 16, 2010).
8. Wikipedia, The Free Encyclopedia, n.d.,
http://www.en.wikipedia.org/wiki/FOB_(shipping) (accessed June 16, 2010)
Interesting Facts About Xylitol
Xylitol is a sugar alcohol used as a naturally occurring sugar substitute. It is found in the fibers of various fruits and vegetables such as plums, berries and mushrooms; as well as the bark of birch trees. What’s so great about it? Xylitol appears to “unstick” the bacteria that adhere to the cells that line the nose and sinuses.
Did you know:
- Some doctors are currently using this sweetener as a nasal spray to help remove allergens that trigger allergic reactions or asthma attacks. In certain asthma patients, an attack can be caused by infection in the back of the nose or sinuses, other upper respiratory infections, chronic sinus problems, and/or allergies. In research done by Dr. Lon Jones, patients were able to control their asthma by the simple means of regularly washing the bacteria and pollutants that may trigger asthma with the xylitol nasal spray. For many of his patients, no other medications were needed.
- The effects of Xylitol are being studied for the use of treatment in childhood ear infections. Acute Otitis Media (AOM) is currently the most frequent cause of childhood visits to physicians. Recurrent AOM infections can lead to serious long‑term problems requiring antibiotics and even surgery. Continued use of antibiotics is not only a problem for the child’s gastrointestinal and immune systems, but it leads to the development of resistant strains of bacteria as well.
- Well‑controlled studies in children demonstrate that using Xylitol sweetened products prevents the recurrence of AOM. In one such study, the children were given gum containing either Xylitol or Sucrose and then watched over a 2‑month period. The Xylitol group showed statistically less ear infections as well as less use of antibiotics (Uhari M, et al, 1996).
- Clinical studies on tooth decay are proving Xylitol a useful substance. When carbohydrate or sugars are consumed, acid is produced in the mouth, and the pH drops rapidly below pH 5.7. This drop causes demineralization of tooth enamel and potential cavities. Oral bacteria are unable to metabolize Xylitol and therefore no acid is produced. When chewing Xylitol gum, for example, the pH balance in the oral cavity is quickly returned to a safe level. The enamel erosion is then minimized which, in turn, enhances the re‑mineralization process. The pleasant sweetness also stimulates saliva flow, which helps to rinse away excess sugar residues and neutralize any acids that have been formed. Xylitol is not only able to prevent or reduce the incidence of cavities, but it reduces the amount of plaque as well. So far, no other sugar substitute has been shown to function in this way.1
1. Allen, Ida, “Exciting News on Xylitol”, Educating Wellness,n.d., http://educatingwellness.com/fit‑and‑fab/12‑diet‑nutrition/81‑exciting‑news‑on‑xylitol (accessed June 16, 2010).
CAF is a leading importer and distributor of high quality Xylitol. Contact us now for a quote.