Welcome back to Business English Pod for the third lesson in our series on English for logistics. In this lesson, we’ll focus on duties, tariffs, and other cost factors.

There was a time when logistics was a lot simpler than it is today, when economies were not nearly so interconnected. But in the second half of the 20th century, governments took down barriers to international trade. Soon companies were relying on complex supply chains stretching around the world, as they outsourced production and sold their goods abroad.

With so many moving parts to these modern supply chains, it can be challenging to control costs. You’re likely paying several different companies involved in moving and storing goods across oceans and continents and through the air. Each of those companies is trying to make a buck. And in many cases, you’re also moving things across borders, which means you need to consider duties and tariffs – the taxes governments charge on imported goods.

Talking about costs involves specific terminology used in logistics. But you’ll need to know about more than just tariffs, duties, and other taxes. You’ll also have to speak about regulations and compliance. And any conversation about costs will likely involve the vocabulary of risk, as you try to minimize the chances of something going wrong.

In today’s dialog, we’ll rejoin a conversation between Cam and Anna. Cam is a production manager with a clothing company, while Anna works for a logistics firm. Cam is getting Anna’s support with moving their clothing lines from manufacturers in Eastern Europe to markets in the United States.

Listening Questions

1. What does Anna say are the biggest factors in discussing customs?

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