Retail trade Zone study

Audiovox Foreign Trade Zone Case Study

May 10, 2023 – 11:56 am

Malls, retailers focus on mobile phones to reach shoppers, boost

MD Logistics provides foreign trade zone services to consumer electronics manufacturer Audiovox

BACKGROUND Printer Friendly (PDF File)
Audiovox is a leading global supplier of mobile and consumer electronics products. MD Logistics has partnered with Audiovox since 2007, when a newly acquired product line prompted the company to seek third party logistics (3PL) services. MD Logistics now handles Audiovox’s retail compliance and manages the company’s inventory, order processing and distribution.

A majority of Audiovox products originate overseas and therefore require numerous customs filings as well as costly annual duty and brokerage fees. When exported goods require drawbacks, the cumbersome process could take up to nine months.

MD Logistics and Audiovox realized that a Foreign Trade Zone (FTZ) would streamline the 250, 000 to 300, 000 cartons of Audiovox product that MD Logistics handles every month. An FTZ allows goods to be imported and warehoused duty-free until they are consumed or re-exported, and also allows for duty-free transferring to other FTZs in the United States, Canada and Mexico. By expanding its FTZ distribution network to the Midwest, Audiovox could realize a significant cost savings and increase the ease by which their goods flow to market.

MD Logistics embraced the chance to provide enhanced services to Audiovox and other customers and immediately reached out to the local FTZ Authority.

Becoming an FTZ grantee would be a complex process, requiring start-up and operating costs as well as regulatory and administrative requirements. MD Logistics retained a well-respected expert to ensure the project was accurately completed under a strict timeline.

MD Logistics navigated the application process to become a general-purpose zone operator. Formal applications had to be submitted in Washington, D.C., bonds needed to be put in place and site inspections by U.S. Customs and Border Patrol had to be passed.

Everything went according to plan. Upon approval, MD Logistics entered into a contract with the Indianapolis Airport Authority as an FTZ grantee.



Unemployment rose in May

The unemployment rate rose from 5.0 to 5.5 percent in May, and nonfarm
payroll employment continued to trend down (-49,000), the Bureau of Labor
Statistics of the U.S. Department of Labor reported today. In May, employ-
ment continued to fall in construction, manufacturing, retail trade, and
temporary help services, while health care continued to add jobs. Average
hourly earnings rose by 5 cents, or 0.3 percent, over the month.

The only sector that saw a rise in employment was Health Care, which means we are getting poorer AND sicker.

They should take this further:

Three researchers at the University of California, Irvine Greg Linden, Kenneth L. Kraemer and Jason Dedrick applied some investigative cost accounting to this question, using a report from Portelligent Inc. that examined all the parts that went into the iPod.
Their study, sponsored by the Sloan Foundation, offers a fascinating illustration of the complexity of the global economy, and how difficult it is to understand that complexity by using only conventional trade statistics.
The researchers estimated that $163 of the iPods $299 retail value in the United States was captured by American companies and workers, breaking it down to $75 for distribution and retail costs, $80 to Apple, and $8 to various domestic component makers

Money market fund assets fall to $2.639 trillion  — Anchorage Daily News
Assets in the nation's retail money market mutual funds rose $1.91 billion to $934.25 billion, the Washington-based mutual fund trade group said Thursday. Assets of taxable money market funds in the retail category rose $1.3 billion to $739.03 billion.

US service sector picks up in August  — Mizo News
The NMI survey covers all sectors outside of manufacturing. A reading above ..

CORRECTED-Central banks, SWFs make up less than 1 pct of FX trade -BIS  — Reuters
New data in the 2013 survey also showed 16 percent of dealers' global FX transactions were conducted by a prime brokerage.

World Bank Publications Special Economic Zones in Africa: Comparing Performance and Learning from Global Experiences (Directions in Development)
Book (World Bank Publications)
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Fire Engineering Books & Videos Collapse of Burning Buildings: A Guide to Fireground Safety
Book (Fire Engineering Books & Videos)

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  • Avatar Freely Why are the new bird flu cases concentrated in Shanghai and neighboring areas?
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    By SHANGHAI (Reuters)

    Two more people have contracted bird flu in Shanghai, China's health ministry said on Saturday, as authorities closed live poultry markets and culled birds to combat a new virus strain …lure potential foreign clients and to promote his peanut business on here.

    @ Thanks to Dog Lover's answer. DL sounds more rational in her answers lately. After living in a free and liberal city?

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      It simply could be down to the randomness of evolution an …inted out birds from local bird markets were tested +ve for the virus.

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