EXPORT OF SUPER HAIR EXPORTS, INDIA – THEIR RULES, REGULATIONS AND INTERNATIONAL TRADE LAW

Introduction

In the scenario of trade and commerce, export and import business plays a very important role as it generates huge revenue for any business organisation, both for the importer and the exporter. However, the chief concern in the export or import business is to import or export goods a medium is imperative. The medium may be airways, waterways or another form of transport (Murphy, 2018). However, from practical reality, it has been seen that waterways are the prominent and used medium for export or import. In this particular research paper a detailed analysis of export of hairs by Super Hair exporter, India will be discussed in details with additional references of International Trade Law, Trade Contract, waterways regulations and other criteria’s will be illustrated in detail.

Brief Introduction of the company

Super Hair Exporter is an India based reputed hair exporter who exports its products to the United Kingdom. This company was incorporated in the year 1985. On that time both the structure and the capital strength of the company was very small. However due to hard work and good resources of the employees the company gradually grabbed the market and today it is one of the reputed company in India. They have some business operations in India. However, their main portion of the business is the export of hairs in the UK.

In the UK, the company has 4 major importers which are London Hairs, Sunumbonum Hair Trader, Fancy Hair Limited and Henry Hair. At present, the strength of Super hair Exporter is very sound. The company has more than 10 thousand employees with its headquarter in Mumbai. Additionally, the company now intends to expand its business policies in other countries also.

Export Route of Super hair Exporter and the Cargo of the company

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The management of the company after the prolonged discussion started to use the Mumbai Port in South Mumbai in the year 1995. In addition to this they sometimes also use the Jawaharlal Nehru Port for their export purpose. The company has some deployed employees in both these ports. During the loading of the products, these officially recruited employees perform all the activities of export. In the UK all the products of Super Hair Exports are unloaded in the port of Southampton and the port of London.

All the involved companies in business policies have all types of written and valid documents for trading. In addition to this as Super Hair Exports has enough financial and capital strength, therefore, the company has purchased a personal Cargo for executing all the export issues. Thus the company is free from all the troubles of hiring Cargo. The Company has a Cargo named SHE-11220 Ind. In addition to this, the company has more than 200 crew members who efficiently undertake the entire export procedures.

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Mumbai Port at South Mumbai

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Jawaharlal Nehru Port, Mumbai

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 Southampton Port, United Kingdom

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London Port, United Kingdom

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Cargo of Super hair Exporter “SHE-11220 IND”

Requirements of carrier by Super hair Exports

To ensure effective export carriers are mandatory. As the company exports hairs which are very sensitive products the company has appointed carrier handling manager for ensuring efficient loading and unloading of the hairs (Richardson, 2017). In case of bad weather or any sea storm or torrential rain, the hairs may get severely damaged. The company has more than 500 pieces carriers as in a single journey the company exports hairs to four companies of the UK. For good keeping of the hairs, the company has a temperature controller apparatus by which the hairs remain intact and it creates not sort of damage of the hairs. In this company metal containers are used because the first thing is its weight is light. In addition to this it saves the hairs from being wet and subsequent damage if any type of unfavorable issues happens in the sea.

Things used for packaging for export through waterways

For the purpose of ensuring good export of the products packaging plays a very important role. If proper and efficient packaging cab be ensured then it is better for the company to ensure good exports. For the purpose of packaging the things that are required are:

  1. Boxes or crates- Boxes or crates are required for the purpose of packaging in shipping exports or imports. For the good keeping of the products it is important for the boxes to be wooden (Ojala and Tenold, 2017).
  2. Containers- containers are required for the purpose of exporting the hairs. It is better for the container boxes to be made of metal so that it should have the capability to withstand the weight of the cargo. In addition to this as the products that is exported here is hair it is very important for the boxes to be water proof. In sea anytime any sort of winds or torrential rains may take place. Thus it is important for the containers to be waterproof. One thing is important to mention here is that as per the terms and conditions of the containers the company has no personal containers for the purpose of exporting. In this regard in every export out of the total costs of the containers half of the amount is paid by the Super Hair Exporter and the rest half are paid by the ally companies of the UK.
  3. Pallets- Pallets are required for the purpose of grouping the cartons and the boxes together. Pallets make the process of loading and unloading very easy. In addition to this it makes the warehousing process easier (Hossain, 2017). It is important for the company to use pallets as it enhances the efficiency of the export at low costs.

Dimension and the attributes of the containers

In order to make the containers looking attractive as it is also a business strategy, Super Hair Exporters used red coloured containers. However for the purpose of making the export procedure easy for the clients of the company of the UK the company uses three types of containers whose sizes and quantities are same but colours for the three importers are different. This helps the importers of the UK immensely. The colours which are used are Red, Blue and Violet. All these containers are made of metal boxes and the weights are very light which makes the process of loading and unloading easier. Inside the containers the wooden boxes with hairs are kept which ensures safe exports of the hairs. (For images please refer to appendices section)

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Carrier Image

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Loading of Carriers in Cargo

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Efficient Carrier Management

Rules and Regulations of Export through waterways

International Trade Law (World Trade Organisation)

For international trade of any types between two countries, some rules and regulations are imperative for their purpose. Understanding the requirement of this, the government of all the countries approached to WTO and after this with detail analysis of all the issues some international trade laws have been formulated to reduce the possibility of all sorts of tussles (Pauwelyn, Guzman and Hillman, 2016). International trade laws formulated several regulations and it is mandatory for all the business organisations who intend to operate to international business (Chow and Schoenbaum,  2017).

Another purpose of the International Trade Law is to educate the business organisations about several rules and regulations and in this regard, they also make understand the organisations what is the requirement of adhering to the rules.

Coming to the discussion of Super Hair Exporter and the business allies of the UK they are also under the part of International Trade Law. The fact is all the countries have several and individualistic trade laws. However, the fact is that due to immense differences all the countries and their business organisations will have to follow the rules imposed and framed by International Trade Law of WTO (González, 2017). In the case of the mentioned company, they have to also to follow the guidelines of International Trade Law.

If they follow the guidelines of WTO, if they confront any sort of dispute, loss or problems then WTO will take all sorts of initiatives to provide the required assistance to the company. In addition to this WTO will provide compensation to the company for any sort of severe loss. In the next section, all the laws of International Trade law will be illustrated in details concerning Super Hair Exporter.

Trade Contract of Super Hair Exporter in adherence to International Trade Law

For efficient trade policy, a good contract is very imperative. If there is now valid agreement of trade then at any time the company may fall in a severe loss. However, in the case of architect or Construction Company, some other laws are there which do not match with general trade contract criteria’s. Before starting a trade policy, the company needs to come with some agreements. In this regard, a joint meeting of all the companies is of very importance (Chow and Schoenbaum, 2017). In a joint meeting, all the issues are to be discussed. Now all the prevalent rules of International Trade Law and the trade contract will be discussed in details and how it is followed in the company will also be elaborated.

Trade Contract of Super Hair Exports, India

Name of the Trade Agreement Document Significance of the trade agreement document How it works for Super Hair Exporter How beneficial for the company
Personal Company Laws All the companies need to formulate some individualistic personal company laws. This will help the company to carry out the activities as per that law. Now the fact is after the formulation of the laws the company needs to share those laws with the World Trade Organisation to make the WTO acquainted with the laws of the company (Botha, J., Grobler, Hahn and Eloff,  2017). Super Hair Exports have some entirely personal Company law which is shared with International Trade Law that is WTO (Gani, 2018). In addition to this, it has also been shared with the ally companies in the UK. It helps the company to arrange the clients especially the trading partners. In addition to this, the client companies will also know about the types and nature of business of the company. From this, the company gets immense benefits in several issues like making the ally companies acquainted with the rules and nature of Super Hair Trader. In addition to this, the company will get all sorts of security coverage from the WTO
Employment Documents The fact is that besides the official employees of the company, some additional employees are also imperative for the company. The fact is in the process boxing and unboxing the carriers some additional labours are imperative. In this regard it is a document is to be prepared so that all types of additional employment issues will be covered in it. The company has some employees who are recruited before every export journey. However, in the employment document, it has been mentioned clearly that all the responsibilities of unloading will be done by the ally companies of the UK This has reduced the additional expenses of the company as the responsibility of unloading the carriers will be done by some other companies (allies of the UK). In addition to this, the company is safe from all sorts of problem-related with employment.
Minutes of the meeting and joint meeting before the export It is very important to conduct a joint meeting before every export journey where the representatives of all the trading party need to be there. In this meeting, all the representatives of the companies need to be present. In that meeting, all the issues will be discussed in details. In addition to this, all the companies need to prepare minutes of the meeting which is to be shared (Nahi,  2018.). With the minutes of the meeting and the signature of all the trading companies, all types of disputes and possibilities of disputes can be resolved.
Document of Time management For any type of activity, time plays a very important role. If all the works can be executed within the stipulated time, then it will generate better income and revenue for the company. However, if all the activities can be executed within the stipulated time then the possibility of success will get diminished. Before very export, the company prepares a timeline. That timeline is shared with the ally companies. That timeline is prepared to keep in mind the possibility of all types of damages or delays in the sea. The management of the company tries its hard and soul to execute all the activities within the timeline. This policy generates better revenue for the company. In addition to this, the trust of the ally companies and the market will also also be in favour of Super Hair Exporter.
Proper planning of business Any business organisation needs to prepare proper planning. However, it is important to make planning flexible. Before every export journey, the prospects of the plan will have some changes, so that it needs to be flexible. If there is no planning then it will ultimately result in the loss of the company. The management of the company always prepares effective plan keeping in mind the market and the current scenario of the export market and trade laws. Planning is important for all sorts of business. Especially in sensitive types of trade like import and export good planning is of high importance. This will be beneficial for the company to stick to the plans and if the company can stick to the plans then it will be better for the company to complete all the activities efficiently and smoothly.
Insurance Document Insurance is a vital document for the purpose of safe delivery of the hairs to the UK. If any kind of unforeseen things happen in the sea then it is a sort of compensation for the losses (Shi and Wang,  2018). Super Hair Exporters always comes into new insurances whenever they start a new export journey. In this issue the company has an India based insurance client with whom the management of the company comes into new contracts. Insurance is highly beneficial for the company as without insurance if any sort of unexpected severe damages take place especially in case of export through waterways then the company will be in unrepeatable loss.

 

Documents mandatory for waterways Export

For the purpose, some documents are imperative for exports through waterways and all the companies must have it (McNicholas, 2016).

The documents are as follows:

Bills of Exchange

It is a written agreement and a document between the buyer and the seller. In it, all details of agreement starting from the date of delivery, period, damage issues and all other issues are mentioned. This bill of exchange is between the exporter and the importers as well.

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A demo of Bills of Exchange

Commercial Invoice

This is a bill for the products from the sellers to the buyers. The main requirement of the commercial invoice is it includes all the details of the expenses from the beginning to the end. In it, all the amounts in the management of carriers, cargo, wages of the labours and other details are mentioned.

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Image of a Commercial Invoice

Proforma Invoice

Proforma Invoice is a type of records of all the details from the beginning to the end. In the Proforma Invoice, all the issues are a description of all the good and the products are mentioned. In addition to this, all the details between the exporting and importing companies are also mentioned. Finally to avoid all sorts of tussles in the Proforma Invoice the ways and details of the delivery are also mentioned. One thing is important to note here that in the Proforma Invoice the signatories of both Super Hair Exporters and their buyers in the UK are mandatory.

Origination Certificate

Origination certificate is very important as in it the details of the transportation route remains mentioned. In addition to this, the details of ports are also specified in it. It is, in fact, a sort of approval letter which is also required for export.

Details of the Packaging

In this, the records of the details of the packaging are maintained. It is maintained because in this way all the possibilities of misuse or damage of the products are minimized. Besides, it will be easier for unloading persons to count the details of the products.

Shipper’s Letter of Instruction

It means to instruct the crew manager and the other employees of the crew the details of the journey and the details of the products. Through this letter of instruction, it will be easier for the crew members to make the export procedure much easier and effective.

Ocean Bill of Landing

It is a very important document for shipping and exportation through waterways as in it some basic ways is served. It remains as a document so that if any sort of difficulties arises it will serve as a valid document. In addition to this, it also serves the purpose of a pass in the seas.

Letter of Credits:

For the purpose of export, letter of credits is another most significant document. It is a assurance provided by the bank of the buyer to remit the amount to the bank of the seller as per the agreements and the contracts between the buyer and the seller (Jones, 2019).

Recommendation

After details of the discussion, some recommendations are provided to the company implementation of which will be better for them.

  • It will important for the company to develop some technological applications through which the time limit can be increased and in addition to this better services can be provided to the importers and the market of the UK.
  • Apart from the UK, it will also be better for the company to start exporting hairs to other companies also because through that process the company will be able to understand the needs and demands of the other markets and the countries.
  • It is recommended to the company to import some products from the UK. In this way, the business flows of the company will increase with diversified products. In addition to this when the cargo comes back vacant it is a loss for the company. This if some products can be loaded in the cargo it will be an additional profit for the company.
  • The final recommendation which is provided to the company is if the company provides motivations and pieces of training to the crew members then it will be good for the growth and wealth of the company. In addition to this it will be better for the company to appoint some law advisors who can make the management of the company acquainted with the changes in the laws of exports.

Conclusion

Finally, it is concluded the discussion that being Indian Hair exporter Super Hair Exporter is a successful company in this field. The company legally follows all the guidelines of ITO and World Trade Law. In addition to this, the company has personal laws. However, there is limitation pointed out in the discussion section. For resolving all the problems some recommendations have been provided to the company and it is expected that if the company follows all the proposals then it will be better for the company.

Reference List

Amaruchkul, K., 2018, January. Optimal Air-Cargo Allotment Contract with Multiple Freight Forwarders. In International Conference on Operations Research and Enterprise Systems (pp. 177-197). Springer, Cham.

Chow, D.C. and Schoenbaum, T.J., 2017. International Trade Law: Problems, Cases, and Materials. Wolters Kluwer Law & Business.

McNicholas, M., 2016. Maritime security: an introduction. Butterworth-Heinemann.

Murphy, G., 2018. Log Level Chain of Custody Tag, Track and Trace Systems: From Harvester Head Through to Ship Loading. Forest Industries Research Centre Bulletin2.

Pauwelyn, J.H., Guzman, A. and Hillman, J.A., 2016. International trade law. Wolters Kluwer Law & Business.

Richardson, D., 2017. Increasing Supply Chain Security: The Requirement for RFID Technology on Containerized Cargo [graduate project].

Ojala, J. and Tenold, S., 2017. Maritime trade and merchant shipping: The shipping/trade ratio since the 1870s. International Journal of Maritime History29(4), pp.838-854.

Hossain, M., 2017. Sea freight import and export operations of Kuehne+ Nagel Bangladesh Limited.

Chow, D.C. and Schoenbaum, T.J., 2017. International Trade Law: Problems, Cases, and Materials. Wolters Kluwer Law & Business.

González, A., 2017. Reaping and sharing the benefits of global trade. In International Trade Forum (No. 4, pp. 3-3). International Trade Centre.

Gani, A., 2018. Contract enforcement and trade. Journal of Industry, Competition and Trade18(1), pp.107-119.

Botha, J., Grobler, M.M., Hahn, J. and Eloff, M., 2017. A high-level comparison between the South African protection of personal information act and international data protection laws. In International Conference on Cyber Warfare and Security Conference Proceedings (p. 57).

Nahi, T., 2018. Co‐creation for sustainable development: The bounds of NGO contributions to inclusive business. Business Strategy & Development1(2), pp.88-102.

Shi, Y. and Wang, H., 2018. Game Analysis of Risk Factors under Export Credit Insurance Finance. Asia-Pacific Journal of Risk and Insurance12(2).

Jones, S.A., 2019. Letters of Credit for Export. In The Trade and Receivables Finance Companion (pp. 73-94). Palgrave Macmillan, Cham.

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