Interview with the Head of International Transport

For many people, navigating headache-inducing customs procedures sounds like a cruel and unusual form of torture. For Jiří Šťastný, Preciosa’s head of international transport and customs services, it sounds like an exciting day at the office.

Interview about crystal stones and rhinestones custom procedures and logistics

We got together with Jiří after the summer holidays to learn more about just what goes into shipping thousands of tons of glass to over 100 different countries around the world every single year.

Preciosa: Let’s begin with the basics. Can you briefly describe your role and what type of export Preciosa does?

JS: Even though I work for Preciosa Components, my team and I oversee transport and customs services for the entire Group, including our Lighting division. The first thing to understand about what we do is that Preciosa mainly does what we call “direct export,” meaning that the goods we ship—in our case, crystals—stay within the country to which they were exported. They are produced in one place and exported to another place, and that is it. The export/import process is completed in a single step. Mind you, this is an oversimplification; however, it is important to say that this type of export is in many ways easier than if, for example, we needed to export our crystals to another country to receive some sort of finishing treatment, from which they would be exported again to the customer. Even one more step in this process complicates the procedure quite a bit. The fact that Preciosa is a direct exporter also serves as proof that 100% of our production process takes place here.

Preciosa: To where and how are the crystals shipped?

JS: We are in touch with more than fifty forwarders, or transportation companies. When it comes to what we would call “couriers,” we typically use one of three big-name companies. In addition to Europe, Preciosa also ships to around a dozen regular destinations outside of the EU, like the USA, United Arab Emirates and China. Then come less frequently shipped-to destinations, like say Myanmar or Indonesia, which sometimes require us to use specific, highly specialized forwarders. Air transport accounts for about 90% of Preciosa’s components export business. We also occasionally use sea transport, which is more common for the Group’s other divisions, namely Vinolok and Lighting. We almost never ship by ground transport because it is too slow for our customers who require much faster delivery times. Within Europe, major cities can expect our goods by the next business day, while smaller towns receive them within two. Even for more distant destinations, like China, our efficiency is exceptional. If we dispatch crystals from Prague on a Friday, they are with our Dongguan affiliate by Tuesday. This is partly possible due to our long-term relationships with the transportation companies we use. This same route, from Prague to Dongguan, may take up to two weeks for other companies.

Preciosa: How many people are in your team?

JS: We are a small but effective team of four. It is crucial that everything, every process, every detail is entered correctly, otherwise we may incur additional fees and of course the dissatisfaction of important business partners. Transport and logistics is one of the most important functions of the company and I am very proud of what we are able to achieve such outstanding results with just a few talented people.

Direct export means that the goods are shipped and produced within the same country.

"Even for more distant destinations, like China, our efficiency is exceptional. If we dispatch crystals from Prague on a Friday, they are with our Dongguan affiliate by Tuesday. This same route, from

Prague to Dongguan, may take up to two weeks for other companies," says Jiří.

Preciosa's direct export also serves as proof that 100% of our production process takes place in the Czech Republic.

When Jiří started at Preciosa as a junior customs agent in 1996 he did most of his job on a typewriter and submitted physical paperwork. In the nearly thirty years since, Jiří has led the digitization of the entire Group’s customs procedures, navigated major changes to international export after the Czech Republic joined the European Union in 2004 and successfully steered the company’s worldwide shipping through a global pandemic.

Preciosa: What is the biggest challenge in export?

JS: Customs procedures. The administration requirements vary from country to country. Sometimes the process is straightforward, and sometimes it is not. Myanmar, for example, has what is known as a “full customs procedure,” which means you must show the goods in physical form (not just a description or an image) to the customs officer. Fortunately, these requirements are rare. Preciosa holds EUs Authorized Economic Operator (AEO) status, meaning we enjoy the benefits of simplified customs procedures and electronic customs clearance. This not only expedites the customs process for our customers but also underlines Preciosas dedication to upholding the rigorous AEO standards centered on safety, security, adherence to customs protocols and impeccable record-keeping. The most difficult countries to export to are Lebanon, Iran, certain African and south American countries, plus India and China, which are two very important markets. Our biggest advantage in China is our affiliations there; our Chinese colleagues are a tremendous help when it comes to communication and expediting customs clearance procedures.

Preciosa: What were the most significant changes brought on by Covid-19 and other geopolitical events?

JS: Every year, our couriers present us with revised sales conditions for the new calendar year. Most often, these adjustments mean only marginal percentage hikes. Yet, in the face of unforeseen global events or natural disasters—be it the war in Ukraine or an unexpected volcanic eruption—these increments can become quite significant. This was precisely our reality at the beginning of 2023, when a 10% surge was announced. Such shifts are inherently unpredictable. Shipping prices of air cargo are determined by the cost of fuel, a security sur-change and air fare. In the past, air fare was always fixed for a given period, say up to a year, while the other two variables could change in real time according to worldwide events. Now, post-pandemic, fixed prices for air fare are not given for nearly as long – it is getting shorter and shorter, sometimes as short as one month. This means that a large part of my job now is the constant renegotiation of conditions from air cargo providers.

Preciosa: How do you approach these negotiations? What is your primary aim?

JS: We always consider what is most economical for the customer. The goal is to negotiate better conditions for them than they could ever negotiate themselves. And we are constantly checking this, both through automated processes and direct communication with our customers. Luckily for them, Preciosa is a long-term partner of many of these providers and we are a big customer. We ship a lot of goods by both weight and volume, so the transport companies are usually willing to negotiate.

Preciosa: What do you enjoy most about your job?

JS: My team. And that I do not do the same thing every day. Transportation and customs services are like a puzzle - there is always one right answer, but each puzzle is different, so it can be both challenging and rewarding.