The Definition of Global Entrepreneurship

Section 2.4- Cost Reduction: Advantages to the ImporterBulk buyingGetting discounts from the exporterDemanding promotional materials from the supplier or vendorDeferred shipment discountChoosing product leaderUsing free trade zoneExamining the CBSA rulesChecking various free trade agreementsChecking the freight quotes from the exporter DemurrageDispatch

Section 2.4- Cost Reduction: Advantages to the Importer (Continued)Asking the exporter to break costs properlyTrying to use exporters assistanceAsking the exporter to share the exporters countries drawback incentivesChoosing a proper sales and payment termsProviding the entire shipment file for the customs brokerChoosing the proper insurance clauseChecking the advanced ruling from the customsInventory managementChecking bank charges

Section 2.4- Cost Reduction: Advantages to the Importer (Continued)Using Countertrade if possibleProper packing and packagingChecking the current and future currency ratesChecking gray marketsMaking sure the information is updatedInspecting the shipmentHaving a back-up source of supply (next slide)

Section 2.4- Cost Reduction: Advantages to the Importer (Continued)Always have a back-up source of supply:For up to date information by comparing prices within suppliers.Having access to two lines of credit instead of onePurchasing split shipments from bothIf something happens between the importer and the supplier, business can still continue with the alternate supplier.The importer may play one supplier against the other and reduce the price

Section 2.5 Topics/Issues of ImportancePackaging GuidelinesLetter of IntentCheck your trade finance issues Choose your strategic PlanningChoose between consumer or industrial goodsCheck rules and regulations regarding marketingStudy the import process in detailExamine the Performa invoice and the purchase order Department of Finance Canada

Section 2.5 Topics/Issues of Importance (continued)Checking AMPS, the Administrative Monetary Penalty SystemChecking all commercial, financial and transport documentsPaying attention to the marketThe mode of distribution, level of patterns of domestic distributorsIssues of translation between Importer and ExporterUnderstanding the difference between the Acts of God and Force MajeureUnderstanding Non-Customs law

Section 2.6 Modes of TransportationRailroad: dependability is average, cost-average, speed-moderate, accessibility and capability-high, suitability-heavy bulk goodsOcean vessel: dependability is low, cost-low, speed-slow, accessibility-low, capabilities-moderate, suitability-bulk goods and non-perishable productsTrucks: dependability-high, cost-high for long distances and low for short distances, speed-fast, accessibility-high, capabilities-high, suitability-for wide range of productsAir: dependability-high, cost-high, speed-very fast, accessibility-low, capability-moderate suitability-for valuable and perishable productsInternet: dependability-high, cost-very low, speed-very fast, accessibility-very high, capabilities-low, suitability-for offering services and banking productsPipeline: dependability-high, cost-high, speed-fast, accessibility-low, capabilities-low, suitability-oil and gas

Section 2.7 Importers and Intermediaries 1) Independent Intermediaries: Transact business with many importers Do not have inventory Buy and Sell directly Sell the product as is2) Merchant Wholesalers:Take ownership of the shipment from the importer, and distribute the productWork on volumeMinimize costsWork on low pricesDo not finance All CashCarry Inventory

Section 2.7 Importers and Intermediaries (continued)Rack Jobbers: Work with and provide services to retailers directlyHave the Highest MarginsTake Inventory but small amountKeep almost one week creditCash and Carry Wholesalers:Their interest is in turnover and high volumeTruck Jobbers:Deliver items from importer to market Known for prompt deliveryMail Order Importers:Send customers catalogues, they choose items and purchase them.

Section 2.7 Importers and Intermediaries (continued)Sales Brokers: Maintain low inventory in different geographic regions Get brokerage from the seller and buyerImport Sale Offices:Maintain no inventory The purpose is to reduce selling costsUsually book orders on behalf of clients in their import marketImporter/ManufacturerKnown for displaying products for customers in show rooms. The advantage here is that customers can examine the product directly before confirming the purchase.

Section 2.7 Importers and Intermediaries (continued)Manufacturers Representatives:Mostly for Industry and pharmacy samplesSell products made by manufacturers without conflict

Section 2.8 Non-Customs Laws: Influence on ImportersAnimal Disease and Protection Act:Covers animal products meat, meat products and import of animalsCanada Agricultural products and Standards Act:Legislates dairy products, process poultry, wool, fresh fruits and vegetables, honey and maple products etc.Consumer packaging and labelling Act:Prints on all packages should be in English and French, no requirements for printing origin of products, but the importers name should be clearly mentionedCopyright Act:For books, architectural work, painting, drawings, photographs, sculptures, tapes etc.

Section 2.8 Non-Customs Laws: Influence on Importers (continued)Explosives Act:Importers and exporters of explosives need explosive importation permit, issued by the department of Energy, Mines and Resources.Fishing Inspections Act:Covers seafood products, shellfish, marine animal; importers must have the department of fisheries and ocean license.Food and Drugs Act: Covers import and sales of all food products or ingredients, drink, drugs, cosmetics and medical devices.Precious metals markings Act: Articles containing gold, silver and platinum, these metals must be marked in order to indicate the quality of the metals being imported, as well as the name or initials of the dealer.

Section 2.8 Non-Customs Laws: Influence on Importers (continued)Textile labelling Act:All consumer textiles sold in Canada must have approved labels in English or French, and describe fiber contents and also identify the label in shirt (tags). This Act is using for labels on books, toys, pictures, lamps, sports equipment and belts, etc.Canadian Food Inspection Agency:For food and all wooden furniture

Section 2.9 Importers and the Customs ChecklistKnow the accurate description of the goodsChose a proper HS codeCheck the D-Memo regularly for certain rules, HS codes changes, quotas requirements, and trade barriersHave all documentations with youCheck all shipping documentsAlways check with commodity specialist, trade consultants, customs brokers and customs specialists; customs specialists deal with advance rulings, and proper HS codesMake sure you have all certifications and specs analysisMake sure you have proper Transaction Value Method Make sure you have proper tariff treatment

Section 2.10 Final Act of WTOShort History:GATT, General Agreement Tariff and Trade, was established in 1948 after World War II. GATT was replaced by WTO , the World Trade Organization, because GATT did not have enough power. WTO is located in Geneva, Switzerland, and established on Jan 1, 1995.The purpose of WTO is to reduce tariffs and non-tariff barriers. The number of members as of June 2014 is 160, and 24 observer governments.World Trade Organization

Section 2.10 Final Act of WTO (continued)WTO Agreements and Responsibilities:Agreement on AgricultureAgreement on Sanitary and Phytosanitary Textile and Clothing AgreementAgreement on Technical Barriers to TradeTrade Related Investment Measures (TRIMs)Trade Related Intellectual Property Rights (TRIPs)Examines Anti-dumpingEndorses Customs ValuationIssues policies on Preshipment Inspection

Section 2.10 Final Act of WTO (continued)WTO Agreements and Responsibilities: (continued)Issues Policies and Formats on Rules of OriginsAgreement on Subsidies and Countervailing Measure Child Labour IssuesSupports Trade and EnvironmentSafeguard Measures/ Escape Clause:Balance of payment accounts is weakenCause of massive unemploymentCause of business to shutdown