Case Study – INTERNATIONAL SHIPPING
Executive Summary
In this report, the business opportunities and challenges related to the vehicle exports from the UK to the US is conducted.
The report evaluates the banking sectors, insurance sectors, and others that are necessary for properly organizing the operations. A detailed discussion on the need of the papers required for export documents are included in the evaluation part.
Business conduct rules and regulations in regards to the international trade practices in the UK are being conducted to find the related challenges expected to be faced while conducting the operational works in the US.
At the end a detailed recommendation is done on finding how the exports could be introduced by the management.
In this report, the business requirements to conduct the shipping trade practices two powerful nations of the US and the UK are carried out.
This case study is conducted on the UK’s shipping exports of vehicle needed products (cars) to the US market. The shipping process and the options, along the information on the shipping documents and the legal system to be followed are included in this report.
The options are investigated on the basis of the banks, insurance companies and carrier service providers and their roles.
This analysis helps in developing a proper shipping scenario where the required recommendations for the shipping options are highlighted. Detailed information on the legal system is also included in this analysis (Fung et al., 2014).
Shipping industry has highly contributed towards the trade development and improvement in different regions.
Most of the trading activities across the world are conducted through the sea mode, as it is reliable and sellers could sell the products in bulk. A well organized shipping industry improves the trade practices between the two different regions, where the relevant changes are customized to meet the trader’s requirements.
Shipping trading activities has promoted the bulk transport of the raw materials, import and export of the materials, and in promoting the intercontinental trade practices.
The US is the biggest and most successful trade partners of the UK traders. The US is one of the biggest and largest exporters of the products to the UK market. This study is conducted to find the shipping practices followed for exporting of the car components to the US.
The trade practices or this product is considered to be quite complex and a time consuming process (Huang et al., 2018).
Majority of the products are exported through the shipping process, where the needs and preferences of the clients are considered.
However, it is essential to choose a proper carrier services for shipping the products to the clients. The selection of the carrier in the existing market is considered to be quite complicated and a lengthy decision making process, but has a positive impact on the trade practices.
It is necessary to conduct the evaluation of the options of the carrier services as it assists in evaluating the requirements and demands required for the businesses.
The selection is done for appropriately conducting the shipping factors like quality, cost, time, and varieties of services, safety measures, capacity, and stability.
These are the important factors that are focused on by the company while selecting the right option.
Carrier services for exporting of the goods are done to pay the right price. Besides this, the delivery time and quality plays an important role in selecting the right way for properly and effectively conducting the business activities.
An exporter has to choose the right carriers that would be based on cheaper costs but without compromising with the delivery time and quality of the products (Maragkogianni, Papaefthimiou, 2015).
The other factor that needs to be selected is the service that would be needed in the shipping carrier option.
Vehicle exports needs different types of the transportation services, wherein there are enough space to retain the quality of the products. There are multiple companies that provide reliable services and on time deliverances.
Thus, the selection of the carriers is quite important and this provides different services that directly satisfy the needs and demands of the business activities.
Transportation services are also selected based on the capacity that determines the factors that impacts the business conduct needed for the conduct of the operational works.
By selecting a proper carrier the higher volume of the capacity of the components could be transported without spending more time. Not all the carriers are recommended for the business, as it depends upon the size of the components and the quantity that is intended to be transported.
A carrier service that has a higher networking system is selected for venturing in different markets in the USA. It is necessary to develop and implement a profitable relationship between the importers and exporters of the products.
Shipping trade practices is based on the safety measures where the potentiality of the carriers is examined.
This analysis is conducted to find the issues like the ability to avert the accidents and ability of the company to maintain the law and order system are maintained. An electronic log device is maintained to improve the safety measures and control the risks that could impact the car export process to the US.
A safe measure is properly followed to deliver the products on time.
In the stability factor, the carrier is needed to properly focus on selecting the better carrier that would be used for transporting the products. The time needed for transporting the carriers to the targeted market is considered.
This is then related with the stable and reliable warehousing space that is needed for storing the exported products.
A relationship between the product carriers is maintained by maintaining the service offered and to control the rates (Norlund; Gribkovskaia, 2013).
Financial decisions are the most important aspect that is considered while deciding the sustainability values needed for developing the business activities.
A strong financial support is needed for properly investing in the conduct of the export business activities. The exporters of different nations are supported by the government and it ensures that there is a proper method followed for foreign exchange.
This is an important factor that is considered in the UK. In the import and export of the services are important as it contributes to 32% and 30% of the GDP rates in the UK market.
The UK export finance credit agency operating in the UK highly supports the import and exports that are conducted in the industry.
This agency in the last 5 years has provided a strong financial support to around 14 billion pounds to improve the export activities.
The process also provides strong insurances to effectively conduct the business activities, where the products exported to different regions are properly secured. Shipping activities conducted through the sea faces a huge challenge like cyclones, typhoons, and others.
Insurance is needed to project the goods shipped to the clients from different parts of the world. The insurance process helps in securing the products that would be exported to different places (Tsai et al., 2018).
Vehicles are shipped to different foreign region is always considered to be high risk based, where exporters have to make different needed decisions by the exporters. A proper export procedure has to be decided as it would help in positively conducting the business or the trading activities.
It is necessary to highlight the needed safety needs where the exhale registration is conducted so as to protect the goods that are exporters. While exporting the products to different regions the exporters have to retain the right documents and implement the legal system.
This assists in properly conducting the business activities and n avoiding any sort of challenges that could impact the exporters and importers.
The business of product imports and exports is quite crucial and challenging and needs the exporters to strictly follow the paper requirements.
Any documents that are included at the time of shipping the products could cause a serious loss to the business and in certain cases the exports of the products could be delayed.
A set of the needed documents needs to be presented at the time of exporting the products as this would help in dealing with the requirements of the paperwork based challenges and others that directly impact the business conduct.
Freight forwarders are used for delivering the products and these agents are expected to provide the details of the paperwork that is needed for conducting the trade practices.
Reliable documents are needed for reducing the risks that causes delays or could increase the costs of the transportations (Wenet al., 2017).
A written contract is an essential document that is expected between the buyer and seller of the products.
This contract would include the necessary information like the time, place, and other relevant information on the delver of the products to the targeted market.
The contract also addresses the future needs of the conflicts, where the information on the taxation, direct charges, and others are also included in the proper conduct of the export and import of the products.
With the right set of legal documents, the company could avoid the risks associated with the insurance decline or other based challenges that directly affects the business conduct. The needed set of the documents are properly included at the time of the export of the products.
Export Declaration
Exports of car from the UK needs the company to provide a license as this would enable the sales of the products.
The documents declare the export products to the HM revenues and customs. This declaration is done through the electronic process to the national export system.
In this declaration the goods are classified and the nations involved in the trade practices are clearly defined.
Transport documentation
Transport documentation outlines the details of the tasks that a carriers need to do while exporting the products. This process follows through the ownership of goods during the overall shipping journey.
The export of the products is examined to complete the process of the expert cargo shipping instructions where the management of the goods that would be included in the fact presentation.
The standard shipping notes are needed to be followed by the businesses are done and it defines how the products would be handled.
A CIM consignment note is needed to render the details of the products and goods that are being exported to different nations (Corbett et al., 2009).
Trade and payment documentation
It is necessary to have a proper paperwork where the payments are recovered and made in accordance to the international trade practices.
In the documentary credit process, a need to adopt the documentary collections are decided to choose the better payment method that would be applicable in different international trade practices.
By following a proper paperwork system, the payment based risks are avoided, which usually creates higher risks for the businesses.
A bill of exchange is implemented so that the payments are made within the stated period of time. This bill is also included at the time of transporting the products.
The UK market is one of the important traders in the international trade market. There are different reliable rules and regulations that are implemented in the import and export of the products that are handled by the HMRC.
The rules are drafted by the government agencies and it provides a payment support that is includes the minimum wages regulation process. It is necessary to include the necessary information in regards to the import and export of the HMRC where the document titled as “UK trade tariff: Volume 1” is presented.
The document provides the relevant details about the value added tax, duties, and others that are important for the conduct of the trade practices (Bouman et al., 2017).
Section 15 to 1 of the VAT act 1994, an exclusive tax rates are implemented on different products and services that are exported.
As mentioned in the customs and excise management act of 1979 and community custom code are implemented to the VAT.
Additional excise charges are accurately paid by the importers and exporters in special conditions, where the products are highly demanded by the customers.
The details of the dutiable consignments are also found, and this helps in implementing the distance selling process where the help of the brokers are availed.
Payable excise duty charges are assigned to the business houses and individuals u/s 47 of the UK tariff trade practices. Besides this, the areas of restrictions on the export and import of the goods are determined in accordance to the UK trade tariffs.
The business restrictions are implied on different product categories like the strategic goods, controlled drugs, and strategic goods. The licenses that are implied are open export general licenses, open individual export licenses, community general export authorization, and standard individual export licenses.
These rules are properly understood in accordance to the UK, where the needed knowledge related to the import laws and regulation followed in the US are properly defined and implemented.
In the import of the products and services from the foreign nation, the buyers are needed to follow the stated regulations included in the US custom border protection.
This helps in regularizing the goods imported from the foreign nation. It is necessary for the buyers to present the licenses and other certificates that are issued by the CBP (Chatzinikolaou et al., 2015).
The exporters from the UK need to strictly follow the rules and terms and conditions of the HMRC.
These rules are designed for promoting the international trade practices, where the foreign trade practices are positively promoted. It is necessary to avoid the unethical practices that are usually experienced in case of the import and export of the products and services.
The exempted goods and services in certain cases are highlighted. The customer duties are highlighted and it intends to increase the cost burden on the exporters. This relief is done from the duties and it is implied in the costs reduction process (Chang, et al., 2017).
The best carrier services for shipping the products has to be selected, as it would assure the costs, timely deliverance, service rendering, safety measures, stability and quality assurances.
These aspects focus on different aspects that would be used for transporting the products to different regions. The financial or the insurances are needed for securing the financial losses that are possible to be incurred while exporting the products.
The document declaration is the other aspects that are needed and this would be done through the CIM consignment notes, documentary credits, and others. The documents are quite important as it would avoid future losses and differences that arise from the trading practices.
These paper works cannot be missed out by the management for a simple reason that it allows the leaders to positively conduct the business activities.
The legal system has to be followed for conducting the international trading practices that are involved in the exports and imports of the products to different region.
These products have to be effectively handled by the HMRC companies, where the rules and regulations are properly introduced by the UK trade tariff volume.
Exploration of the car s to the US is done after implying the VAT where the necessary charges are paid.
CGEA rules and regulations are properly followed as it helps in implementing the changes needed for properly conducting the business activities.
Any information that is not included could lead to a major trouble where the exporters would face a huge challenge in the business conduct.
The HMRC are designed to develop the better documentation that would enable the traders to conduct the works.
The defined rules and regulations followed in the UK are also important as it helps in positively conducting the business works. Documents that are needed are licenses, permits, and certificates that enable the leaders to positively conduct the works.
The international trade practices and legal system are essentially followed for improving the process of import and export of the products in the targeted market.
Insurance is needed as this would be useful in effectively conducting the tasks, and in avoiding any sort of delays that could directly affect the business conduct. The success of the business activities depends upon the carrier selections.
Documents are properly organized by the management as it helps in reducing the differences that arises due to the improper documents that are presented in an organized manner.
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