We are a British company specialized in luxurious umbrellas. Our turnover was of £845,000 in 2007. Nowadays we export our products in all of Western Europe; our biggest customers are France and Italy. Our firm is now a big company and it is carrying on to growth. We wish to extend our market and to conquer emerging markets and more precisely, for a beginning in Russia. We believe in the future of Russia, above all, for luxurious products because the luxury market is progressively developing in Moscow. The economic growth is not stopping to increase. The choice to export abroad is a strategic choice and in order to avoid mistakes, the export manager has to work on all the details of this new challenge. The main objective we have, is to work with a supplier of luxury shops of Moscow, thus our products will be in all luxurious places of Moscow. Hence it is important for us to be responsible for the majority of the process because in our firm policy our future supplier will have the role to introduce our product and hence participate in the brand development.
[...] In the same manner, the alphabetic code for United Kingdom according the Russian classification is GB or GBR, the digital code stays 826 as currency code. That is important to fill the different papers. Customs tariff of Russian federation The rates for the import customs duties depend on the type of product. For our products with the commodity code 6601, the rate of the import custom duty is 20 (in percentage of customs costs or in EURO) according Russian customs website. [...]
[...] The origin is from United Kingdom because our factory is in Edinburgh. The value of our first order is of £3000. Thanks to internet, nowadays this document can be submitted electronically with National Export System (NES). The export declaration we need is the form C88, it is the more common export form (see it in annex). The export goods which have strategic or cultural values such as military equipment or products can be used for military uses, nuclear related goods or a technological transfer or information are submitted at more control and need a license. [...]
[...] My choice for this export is to choose a freight forwarder. Thus, we minimize the costs and make sure that all the processes will be in the norms. The incoterms has an important role, it allows us to define the responsibility of buyer or seller for the cost, the delivery and the risks. The choice of incoterms depends of the contract we have for each particular case it corresponds one incoterms. In our case the incoterms CIP to Moscow is the more appropriate because we want to take the more responsibilities as possible towards our customer. [...]
[...] Incoterms The incoterms define three points: the point of delivery, the transfer of risk and the contractual obligations. The incoterms the most adapted in our situation is the Carriage and Insurance Paid (CIP) to Moscow. This incoterms means, as a seller, we are responsible for arranging and paying for the main carriage, hence for delivering the goods from our warehouse to the warehouse of our customer, in a particular place of Moscow as a carrier, by any means of transport. [...]
[...] Our customer is responsible for the transport from this point up to the different shops. He is also responsible for all the eventual risks, once the goods are delivered and the eventual costs. Hence it should subscribe an insurance toward the delivery. Cargo insurance Cargo insurance is important for both : the exporter and the importer. It protects us against the loss or the damage of the cargo. I advice the Open Policy insurance which brings a lot of advantages for our company. [...]
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