Exports to the United States Marketing Research Paper (Research Paper Sample)

Exports to the United States
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Exports to the United States
Business is a rewarding yet risky discourse. Organizations and individuals alike enter business deals and activities to make profits. The profits are not always guaranteed. A strategy is needed for continuous profits for players in the business world. The business realm is full of competition and dishonest parties. These are challenging facets of business that should always be taken care of. Herein, an exporting company called Sight Group is expected to export goods to a company in the USA. The export evidently involves countries in different continents. London trade police’s as well as those of USA will be used to inform this report. Countries utilize the trade law to prevent things like dumping, unfair competition, substandard product importation as well as exploitation. When transacting business should also ensure they are protected from any possible loss as this might bankrupt them leading to business closure. This paper discusses the trade law to inform Sight group’s decisions when exporting by providing an exhaustive checklist while comparing different regulations, costs and offers that might make the export business more profitable and consistent.
Sight Group is based in London and was established in 2009. The company has nine years in the shipping sector, a subsidiary of the transport industry. Sight Group has one hundred and fifty-seven employees. The company exports different commodities such as metal, pharmaceuticals, cars and machinery. Sight Group exports anything that is legal and acceptable by marine standards. The name of the company was derived from its visionary approach of satisfying the markets and ability to predict what the markets need.
The Trade Law and its Maxims
According to Roberts (2016), trading within the European Union region attracts no tariffs and trade regulations are lenient. Currently, Brexit might affect the way exports are done from London since Britain is still in talks for exiting the EU or choosing to remain as members (Ehrlich & Ziegert., 2017). Trading with countries outside the EU will have sterner regulations. EU trade laws require the following to be observed:
* Restriction of hazardous materials
* Product safety
* Labelling and marking
* Tariff classification
Trade in the EU is highly controlled and expects companies to strictly adhere to the set regulations or suffer hefty fines. Indulgence in illegal behavior leads to the revoking of a company’s trading license. Therefore, Sight Group will need to be versatile with the trade law that affects exports from EU and imports that US receives. There is no country or trading region that allows for exportation or importation of hazardous materials. Hazardous materials include unhealthy products, weapons of mass destruction and pollutants (Biskup & Kohlrausch, 2016). The EU is clear in its policy to safeguard the interests of its people and environs. As such, Sight group is left with the options of strict adherence to the law and diligent business dealings.
Product safety is also an important requirement for the EU trade law. Products are expected to checked and assessed whether they are fit for exportation or importation (Ducruet, 2016). For instance, contaminated products or substandard items should not be exported and if found they should be confiscated. US importation laws also expect that certain products have a full report of how they were grown or developed. This applies to food products for the purposes of transparency and traceability. Some products end up causing disease outbreaks. It is only fair if such laws are observed to help trace the cause of an outbreak if happens.
Labelling and marking is a standard requirement. Exporters should ensure that products are aptly marked for identification and knowledge purposes (Goswami & Jones, 2016). The name of the product should be clear. The country of origin should be indicated and their description given. This explains why some products such as pharmaceuticals are exported with manuals and more descriptions that include their ingredients. Importantly, tariffs are very important for EU’s checks and balances. Products meant for exports should be taken to the customs departments for weights and measures, which also determines the tariffs that will be imposed on the goods for adroit revenue collection. An obvious prerequisite to the exports and international trade is documentation and licensing hence Sight Group the exporter in this case, will have to take note of the same.
Specific options regarding carriers, banks and insurance companies
Europe has carriers such as Maersk, Evergreen Marine, China Open Shipping Company (COSCO) and Hapag-Lloyd. These are renowned companies that have been in existence for over a decade. They are reputable and very competitive. This gives Sight Group a selection variety which assures the company of the best deal in the market. Europe has many able banks that can fund exporting activities. The options provided by carriers are different and given in varying packages. A shipping transaction with carries includes the clearance for exports, insurance for the transportation and cost facilitation (Kavussanos & Visvikis, 2017).
Maersk helps its client process the clearance of goods and bills the clients before everything has been done and goods are ready for exportation. Maersk is highly equipped and reliable as it and a large pool of employees. It also has a wide visibility across the globe, giving the exporter the convenience of using one carries when exporting and receiving goods on the other end. In fact, many carriers have partnered with Maersk for increased performance which makes an exporting company more reliable and convenient. Maersk is also highly automated and recently partnered with IBM for increased efficacy (Poole, 2016).
Evergreen Marine is not highly visible across the globe but has a strong presence in the USA. Its European subsidiary ships low volumes compared to Maersk. The automation at the company is average. The pricing is affordable but the client has to work hard to have his or her goods transport. The support at the company is not as reliable as Maersk’s. China Open Shipping Company highly transports its products to and from China. The charges for shipping are slightly less compared to the aforementioned carriers. A few of its shipping orders are done to USA which makes it’s a less convenient option for Sight Group. Hapag Lloyd is German based but has bureaus in London. The carrier has a huge global presence and serves the markets efficiently due to its high volume transactions (Qin & Xu, 2016). The company has convenient tracking as well as sailing schedules. The order rank of convenience and reliability for the carriers as concerns Sight Group’s shipping is Maersk, Hapag Lloyd, Evergreen Marine then COSCO.
Banks in London that can help with funding are several. They include Deutsche Bank, Barclays, Standard Chartered and HSBC UK. Some of these banks are good in credit letter facilitation as will be seen later on in this cause. The funding is strictly policy based and as normal bank regulations require, collateral should be given. Other exporters use their good credit score and their rich revenues sources to get funding. Sight group will have to use its asset portfolio to get some little funding to add on the current funds it has for export business. Insurance companies such as AIG need the exporter to specify which package he or she is insuring. There are three shipping maxims that insurance companies insure. These are marine air, marine cargo and marine hull (Song, Lyons & Sharifi, 2016).
Marine air is irrelevant to this case as it is shipping through flights that is often done for light and other perishable goods. Marine cargo covers the damage that happens to goods while on transit while marine hull covers any damage to a vessel, its equipment or machinery. Things that are included in the insurance package include administration levies, war and transshipment (Verhetsel, Vanelslander & Balliauw, 2016). Administration levies are for the normal insurance company operations which include tax charges. War is cost added to insure the goods if there is any war that harms the goods while on transit. Further, transshipment is a cost charged for shipping that takes another route that was not intended. Sometimes, a ship can change its route because of security reasons or troubled waters such as places experiencing abrupt earthquake effects. The insurance companies cover the accrued extra costs.
Shipping by sea outside the EU especially to different continents has to meet the following requirements:
* Value Added Tax (VAT) on exports
* Zero rating which gives the time limit goods should be in a country before they are exported.
* Common Agricultural Policy expects levies to be paid for agricultural produce and a license might be needed if products exceed a certain amount
* Origin Rules define where the product has been produced or manufactured.
* Export declaration where an electronic submission of goods being permanently exported out of the EU should be made to the customs body via NES CITATION HMR16 \l 1033 (HM Revenue and Customs, 2016).
Trader’s Checklist
When exporting, a trader should always have checklist. It will save him or her from unnecessary mishaps which professionals term as ignorance (Drahos & Braithwaite, 2017). Knowledge is part of success and as such, it has to be sought. The items that define an exporters checklist include: a license, packaging, ability to satisfy the markets, cost efficiency, currency exchange, acceptable terms of payment, insurance for protection, managing risks and incoterms. It is a normal that any business shoul...