Having experienced first-hand the major product shortages Canadians experienced during the COVID-19 pandemic, he decided to start
Question:
Having experienced first-hand the major product shortages Canadians experienced during the COVID-19 pandemic, he decided to start his own business and began researching opportunities to import healthcare-related products. You registered a company name, Canadian Healthcare Imports, and leased 1,000 square feet of warehouse space at 299 Doon Valley Drive in Kitchener, Ontario.
During his online research, he contacted Loyal Textile Mills Ltd., a large PPE, textile and apparel manufacturer based in Chennai, India. His initial inquiry garnered a response from Loyal Textile Mills International Sales Manager, Mr. Balakrishnan, who advised that they would not be shipping PPE products to Canada due to domestic regulatory issues, but hoped to do so in the near future. However, Loyal Textile made other healthcare garments, including medical uniforms and doctor's coats that you felt could be successful as imports (see Appendix A).
During his online conversations with Mr. Balakrishnan, he mentioned that Loyal Textile would be very interested in selling its clothing line in Canada as it hoped to obtain permission from the Indian government to export its patented PPE products within the next twelve months. Mr. Balakrishnan felt it would be easier to sell his PPE products in Canada if he could first establish his healthcare apparel line in the Canadian market while awaiting regulatory approval. Once Loyal Textile Mills received permission to export PPE products, Mr. Balakrishnan suggested that they would be open to discussing a licensing agreement with you for the Canadian market.
As an added incentive, Mr. Balakrishnan offered to ship your first garment order without any advance payment or deposit, stating that Loyal Textile Mills would expect payment up to 30 days after you sold your products in Canada. The company would protect your account receivable and would only require you to arrange and deliver the shipment to Canada.
These were very favorable terms, and you expressed your agreement to Mr. Balakrishnan subject to the signing of a contract of sale which you would prepare and submit within the next two weeks. Now that he had secured a supplier, he focused his efforts on finding Canadian customers for Loyal Textile's healthcare apparel line.
Over the next few days, he was able to convince a large purchasing group at an Ontario hospital to place an order for medical apparel with a 50% deposit upfront to secure their order. Two weeks later, he placed his first order with Loyal Textile Mills Ltd., which consisted of 1,000 scrub tops (250 each of four colors), 1,000 pairs of scrub pants (250 each of four colors), and 500 doctor's coats. (250 of four colors). long-sleeved coats and 250 long-sleeved coats). Scrub tops are packed at 20 per box, scrub pants are packed at 10 per box, and scrubs are packed at 5 per box.
A week later, the local sales representative of their freight forwarder, OMG Logistics, reported that they would pick up their order at the Loyal Textiles plant in Venkateswarapuram, India. Your order would be consolidated into a sea container and shipped by road to Chennai port. Its shipment was booked on the Evergreen Ever Given ship, which departed Yantian, China, on March 8 en route to Halifax, Canada. The Ever Given was scheduled to arrive in Chennai on March 14 and depart on March 16.
The average sailing time from Chennai to Halifax was approximately 35 days, but the sales representative promised to provide regular updates on the ship's progress and estimated time of arrival in Halifax. Although almost 40% of ocean shipments were routinely delayed, his sales representative said that he had a good feeling about this trip and that he was confident that it would be a smooth trip throughout.
Project Scope:
Each Group must consider themselves entrepreneurs, responsible for all facets of importing products into Canada for distribution. The scope of your role is to investigate and analyze the responsibilities and obligations of your company and answer the following question, which makes up this Project Term.
Answer the Question:
Classify the inventory in this sales transaction (5 points) and prepare a commercial invoice to represent the first shipment.
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr