X I N D I A
ABOUT J.CREW J.Crew is an American multi-brand, multi-channel, specialty retail. J.Crew was founded in 1989 when it was re-branded from its previous identity Popular Merchandise. J.Crew is known for their preppy, trend driven, and fast fashion merchandise. They are also the parent company to Madewell, which shares a similar preppy aesthetic. Madewell was founded in 2006 in effort to create a modern day interpretation of an American denim company. J.Crew operates more than 300 retail stores in the United States. They have collaborated with designers like Prabal Gurung and Eddie Borgo in partnership with the CFDA / Vogue Fashion Fund. J.Crew sources their products from companies such as India, Italy, Vietnam, the Philippines, and Taiwan. Their top products are leather products and cotton wovens. - 1947: Mitchell Cinader adn Saul Charles found J.Crew predecessor Popular Club Plan - 1983: J. Crew brand begins as a catalogue operation
- 1989: First store opens at South Street Seaport, in NY; company renamed as J.Crew - 1992: Expands catalogue operations to Japan and Europe after move into Canada - 1996: J.Crew.com launches - 2000: 100th retail store opens - 2002: Ken Piliot from Gap is named CEO - 2003: Mickery Drexler joins as chairman and CEO, and takes equity stake in the firm - 2006: Madewell divison founded - 2007: 86% of merchandise is produced in Asia and only 4% is made in America - 2011: J.Crew becomes a private company and opens its first Canadian store in Toronto
- 2014: J.Crew’s top sourcing country is China 2
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GET TO KNOW
INDIA Social/Cultural Traits
India is a highly religious and diverse country, and is the birthplace of Hinduism, Sikhism, Buddhism, and Jainism. Hinduism is followed by 80% of the country. Historically, India has been know for its cast system which would separate people into occupation’s by birth. Although it is now illegal to discriminate a person based on their caste, it can still be found in rural areas. English is widely used as the associate official languages in India, but there are 18 languages that can be found in India. Some of the 18 languages are Assamese, Bengali, Hindi, Kashmiri, and Konkani. In rural parts of India, the join family system is stil highly in place. In the joint family system, families often live together, rather than separating into homes by immediate family. In a joint family system you can expect to find the father, mother, grandparents, children, in-laws, brothers, and sisters all in one household. The Patriarchal system is still followed throughout India, but in some states like Arunachal Pradesh, which is in North West India, the matriarchal system is in place. The Indian system of education for those who are able to receive it is one the best in the world. India’s education is places an equal importance on physical education as well as mental. The literacy rate in India is at 60% which is much higher than it was a decade ago. India is one of the countries that suffers from the “brain drain” with its competitive pay and perks. Indian dressing style is one of the most unique and beautiful traits of the country. The dressings can be categorized by region and religion. When looking at an Indian garments one can expect to see a variety of colors, textures, and styles, but with globalization western style dressing is starting to have a higher influence than traditional dress. Sari’s are the most recognizable clothing item, and is a dress worn by women. It is a rectangular piece of cloth about 5-6 years in length and there are not stitches. Depending on how a sari is worn it can reveal a women’s age, status, occupation, religion, or region. There are at least 10-15 common ways to drape a sari. Indian cuisine is as diverse or as its culture. The cuisine can depend on climate or region. Rice and wheat are staple foods for South India, and North Indian meals mainly consist of dals, vegetables, curd, and rotis. Vegetarian dishes are not hard to find while in India for religious purposes.
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Political Traits
India is a Union of States and, is a Sovereign Democratic Republic, governed by a Constitution which was put into place in 1950. The President of India is the constitutional head of the executive of the Union. The President makes decisions based on advice from the Council of Ministers with the Prime Minister. The Prime Minister is the one who is responsible to the Parliament consisting of two houses, the Lok sabha and the Rajya Sabha. The Prime Minister and his Cabinet can be removed by a vote of no confidence passed by the House. Parliament and the Supreme court provide a system of checks and balances for the executive authority. The Vice-President of India is elected by the member of the Parliament and is the Chairman of the Rajya Sabha. The Vice President also acts as the President during the absence of the President. The President of India is also the Supreme commander of their 3 armed forces.
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GET TO KNOW
INDIA Economic Traits
India’s economy is the 3rd largest economy in the world, and keeps increasing each year. It is projected that India will grow to 60% of size to the US economy. India’s economy can be divided into 3 phases: Precolonial, and Post Colonial. During Precolonial India had good trade relations with other parts of the world, and it was evident by the coins from various civilizations found in the Indus Valley. Before the advent of the East India Company, each Indian village was self sufficient and was economically independent from other parts of India. During the Colonial Period, the arrival of the East India Company occurred. The East India Company caused huge hardships to India and depleted their resources. What happened was that the British would come in and buy raw materials from India at much cheaper rates than what the finished goods would sell for. During this period India’s economy declined from 22.3% to 3.8% in 1952. In 1947 India gained independence, and this rebuilt their economy. Trade liberalization, financial liberalization, tax reforms, and opening up to foreign investments have been key factors in India’s recent economic growth. Man Mohan Singh and Narsimha Rao introduced the Economic Liberalization that has been the core to the reform movements. Challenges to India’s economy are the population boom, the 36% poverty population, unemployment, and a divide between the rural and urban communities.
Geographic Traits
India is the 7th largest country in the world, and its capital is New Delhi. India has a variety of types of land, it contains lofty mountains, deep valleys, extensive plains, and numerous islands. Its major geographic features are The Great Mountains of the North, The North Indian Plain, The Peninsular Plateau, The Coastal Plains, and The Islands. India contains 29 states, the largest of which is Rajasthan. There are 7 union territories: Delhi, Chandigarh, Dadra, Nagar Haveli, Daman, Diu, Lakshadweep, Puducherry, the Andaman islands, and the Nicobar Islands. Some of India’s important rivers are The River Brahmaputra, The River Ganga, The River Chambal, and the Narmada River. India’s climate varies by region, but for the most part can be categorized as tropical in the south and temperate in the north. Southern India experiences as monsoon season from June to September. 6
Labor Factors
In 2012 there were around 487 million workers in India, which is the second largest after China. Of the 487 million 94% of the work is unincorporated businesses such as push cart vendors. As of 2008 27.5 million were involved with organized businesses and 17.3 million worked for the government, or government owned entities. Agriculture, dairy, and horticulture occupations make up 52% of the workforce. About 30 million workers are migrant workers because of the lack of local stable employment in their home cities. The Trade Union Act occurred in 1926 in India, this provided protection for a nascent Indian labor union movement. In 1997 India had about 59,000 trade unions registered with the government. Child and women’s labor are two concerns when it comes to India’s workforce. In 2010 around 4.98 million children (ages 5-14) in India were involved in Child Labor. India’s constitution prohibits child labor but only in factories, mines, and other dangerous work environments. The Indian Penal Code, the Juvenile Justice of Children Act, and the Child Labor Act, provide a basis to stop child labor in India, but it is still an on going problem. Some blame the lack of structure of India’s workforce, size of the economy, and legal issues as to reasons why companies can not obtain manufacturing technology that could help put an end to the demand for child labor. Women make up around 30% of the workforce and it’s a percentage that falls every year. Indian women earn 62% of men’s salary for equal work. Out of 136 countries India ranks at 124 for women’s economic involvement. Major laws that regulate labor in India are: the Minimum Wages Act of 1948, Industrial Employment Act of 1946, Industrial Disputes Act of 1947, Employees Provident Fund and Miscellaneous Provisions Act of 1952, the Maternity Benefit Act of 1961, Payment of Bonus Act of 1965, and Payment of Gratuity Act of 1972. Because, India has so many labor laws, it can cause slow employment growth in high paying and organized companies.
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GET TO KNOW
INDIA Input Factors
India’s vast mineral resources give it a unique advantage when looking at the world market. Iron, zinc, gold, silver, lead, manganese, diamonds, rock phosphate, ceramic clays, limestone, building stones, and chromite are just some examples of the many natural resources that can be found in India. Fuel minerals and coal are the minerals that bring in India the most finical rewards. The coal in India can come from around 500 different mines, both deep-put and surface. The bulk of India’s electricity is powered by coal-powered thermal plans, and a few hydroelectric plants. More than half of the electricity consumed in India is for industrial needs, mainly agriculture. Their agriculture workforce needs the electricity for raising irrigation water from deep wells, and this is exceeds in home consumption.
Products Factors
Some of the major industries that import from India are the textile, telecommunications, chemicals, pharmaceuticals, biotech, food processing, sell, transport equipment, cement, mining, petroleum, machinery, and software industries. Between 2001 and 2011 the petrochemical and engineering goods went from 14% of India’s exports to the 42%. India’s automotive industry is the world’s 2nd fastest growing automotive sector. In 2011 India’s IT industry employed 2.8 million citizens and generated around $100 billion from the US, this made up 26% of India’s merchandise exports. It is predicted that by 2020 India’s pharmaceutical market will reach $48.5 billion.
Transportation Factors
India has a variety of transportation methods. The main transportation methods are rail way, roads, coastal shipping, and air transport. Because of the development in India over the past years their transportation has really grown. India’s Ministry of Shipping, Road Transport, and Highways is responsible for new policies and programs that have contributed to the development. Railways are India’s primary mode transportation for both freight and passengers. India’s roads are one of the largest in the world. Their road network consists of National Highways, State Highways, and roads in the rural regions of India. Around 90% of the India’s trade goes by sea, and India has the largest merchant shipping fleet among developing countries, and is the 20th largest among developed countries. India’s coastline has 12 major ports and 200 nonmajor seaports. 8
Business Climate Factors
Prime Minister Manmohan Singh, who acted as finance minister in 1991 is the one to be credited for India’s macro-stability. He responded to the balance of payments crisis by restoring fiscal discipline and liberating trade and the foreign investment policy. This is what has caused India’s economic growth. On the other side Mumbai terrorist attacks and scandals are the responsible for most of India’s recent economic issues with outsourcing. According to the World Bank, India ranks 180 out of 181 economies for contract enforceability. India’s government is currently working on developing a series of steps to improve the climate. Some steps being discussed as reducing the time for registration of business to 1 day compared to the current 27 days, single registration of all labor laws, and a cute in the of taxes to make doing business in India less complicated. The Department of Industry Policy and Promotion (DIPP) have listed as many as 46 action points for different central government ministries and state governments in hopes of improving the climate. There are also talks of introducing a Bankruptcy Law, Unified Insolvency to the National Company Law Tribunal. The World Bank also ranks India as the 134th easiest country to do business in. India needs large investments to improve it’s climate and job market.
Effects of the Quota Removal
The quota removal has benefited India’s economy. For instance once the textile quota was removed more textiles started to be sourced from India, compared to a country that the U.S. would have been required to a quota with. Since production costs for textiles are so much lower in Asian countries, their market share in the US has greatly increased. Asia has displaced Mexico, Costa Rica, and the Dominican Republic as the top textile production countries. China has safeguard measures in place to protect the US economy from being flooded with Chinese products, but these do not apply to India, Vietnam, or Bangladesh. Wool and silk are two textiles that are produced in India that have really benefited from the quota removal. 9
S . W . O . T .
A N A L Y S I S STRENGTHS J.Crew partners with the
WEAKNESSES
OPPORTUNITIES
No Worldwide store loca- New acquisitions tions, so it cannot tap into other markets
and craftsmen, as well as Jack Purcell, Timex, Thomas Mason, and Red Wing. Madewell, an American Since its major stores are Venturing into new denim label introduced women and kids the costs incurred in shipwell and is quite success- ping to other locations ful Ships to a total of 100+ Competition with estab- J.Crew plans to add destinations through its lished brand names deluxe shoe and handbag e-commerce website salons in existing stores to invite more customers J.Crew has around 13000 Competitive market Global expansion into newer markets 320+ stores Small business units Increasing brand awareness through social media J.Crew issues more than Tax Structure N/A 80 million catalogues to its vast consumer base High growth rate
Costs
Domestic Market tial customers - N/A tablished a less-than-designer price point Existing distribution and N/A sales networks
N/A
- N/A
THREATS Growing competition and
Government regulations
Tax changes
Rising cost of raw materials Increase in labor costs Rapid changing fashion trends
Competition offering more fashionable clothing and a more affordable price N/A
N/A
N/A
N/A
N/A 10
Code J. CREW‘S of Conduct
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Bribes & Improper Payments ment. There are strict laws that govern providing or offering to provide gifts, including meals, entertainment, -
Conformity with Import/Export, Labeling, Advertising, Credit, and Other Regulations
ulations. Each associate whose duties relate to the import or export of goods is responsible for informing him or herself of applicable laws and regulations and acting in accordance with and promoting compliance with those and remitted in connection with sales of merchandise.
consult with the Legal Department, as appropriate.
Contacts with Competitors Examples of prohibited agreements include agreements or understandings between competitors concerning prices or other sales terms, such as the timing or amount of price changes, dates of special sales or promotions -
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Contacts with Competitors Infer illegal agreements based on “loose talk,� informal discussions, or the exchange of information between similar meetings where competitors are brought together, be mindful of the difference between permitted and prohibited discussions.
subjects and be mindful of this Code. ates who are uncertain about how the legal rules in this area might be relevant to their duties should consult the immediate report this contact to the Legal Department.
Product Integrity
compliance with applicable legal requirements and our marketing and advertising must be truthful. Intellectual Property cepts, improvements, discoveries, and ideas an associate conceives or makes during the course of his or her
J.Crew Trademarks
Loss Prevention Department.
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Fair Dealing -
practice.
• Normal business courtesies involving no more than amenities, such as a meal or occasional tickets to sporting or cultural events.
prevailing rates. -
Doing business in an honest and fair manner with our vendors and suppliers means that associates responsible
order to continue their relationship with us, unless there is a legitimate business purpose for doing so. Failure to Signature: Name: Date:
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I N D IA ’S
BUSINES S ETIQUET TE Type of culture - Indian etiquette is quite formal, a mix of both Western and Asian culture. The Indian population have been influenced by the British style of etiquette, formal and somewhat conservative.
- 80% Hindu - 14% Muslim - 2.4% Christian - 2% Sikh - 0.7% Buddhist - 0.5% Jains - 0.4% Other Masculine or Feminine - Male-dominated society - Tough for women to do business - Western women may be accepted, but they must establish their title and authority immediately to be accepted - Women may not be included in social events or conversation - Western women may invite an Indian man to a business lunch and pay the tab without embarrassment Type of communication - Hindi is the official language of India - When doing business in India, English is the language of international commerce - English is the preferred language in business, politics, and education - There are more than fourteen major and three hundred minor languages spoken in India
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Negotiation styles or strategies - It is difficult to do business in India - Business is slow and difficult in India. Be polite, but persistent - They use intuition, feeling and faith to guide them when making business decisions - Do not get angry if you are told something “can’t be done.” Instead, restate your request firmly but with a smile - Plan on several visits before you reach an agreement - Dinner appointments for business purposes are rare. Lunch meetings are more popular - Breakfast meeting can often happen without the breakfast - Indian counterparts may not show up for scheduled meetings. Be prepared to reschedule - Decisions are always made at the highest level. If the owner or Director of the company is not present, the chances are these are early stage negotiations - Avoid high pressure tactics -Do not be confrontational or forceful Be prepared for some distractions and disturbances during the meeting - If terms such as “We’ll see”, “I will try” or “possibly” are used in conversation then the chances are that they are saying ‘no’ - Indian society has an aversion to saying “no” as it is considered rude due to the possibility of causing disappointment or offense - Once terms have been agreed you will be expected to honor them
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I N D IA ’S
BUSINES S ETIQUET TE Social and Cultural Elements A. Appropriate Business Attire - Men are expected to wear a suit and tie for business - Women should wear pantsuits or a conservative dress - Exposed flesh suggests that you’re too poor to dress properly, or that you’re shameless about flaunting your body - The more you can disguise your shape, the better - It is best to select neutral colors - For foreign women, pant-suits or long skirts, which cover the knees, are more acceptable to wear - The neckline of your blouse or top should be high
B. Introductions - When entering a meeting room you must always approach and greet the most senior figure first - Meetings should always begin with some conversation - It is considered rude if you jump directly into the conversation of business. Ask about their family, interests, or hobbies before engaging in such conversation - You may be offered a sugary, milky tea, coffee or a soft drink. Don’t refuse. Be mindful that your glass or cup may be refilled as soon as it is emptied
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C. Greetings - When entering a meeting room, you should approach and greet the most senior figure first - Namaste, placing both hands together with a slight bow, as it shows appreciation for Indian customs - Stand up when an elder or a guest enters the room and don’t sit until you’ve offered them a seat - Men shake hands with men when meeting or leaving - Men do not touch women when meeting or greeting - Western women may offer their hand to a westernized Indian man, but not normally to others - Traditional Indian women may shake hands with foreign women but not usually with men
D. Presentation of Business Cards - Business cards should be exchanged at the first meeting - It is a good idea, but not necessary, to have it translated on one side into Hindi as a sign of respect - Do not rush the card into your trouser pocket, put the card away respectfully - Do not assume that the mobile phone number of your counterpart will be on the card. check for it and ask for it if it is not there
E. First Name or Title - Knowing the position of the person one is dealing with is vitally important - Names tell about an Indian’s background - Be aware that government employment is considered to be more prestigious than private business
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I N D IA ’S
BUSINES S ETIQUET TE Social and Cultural Elements F. Gestures - When an Indian smiles and jerks his/her head backward, a gesture that looks somewhat like a Western “no,” or moves his head in a figure 8, this means “yes.” - The Western side-to-side hand wave for “hello” is frequently interpreted by Indians as “no” or “go away” - Use your right hand only to touch someone, pass money or pick up merchandise. The left hand is considered unclean. - Do not touch anyone’s head. The head is considered sensitive - Pointing footwear at people is considered an insult - Never point with a single finger or two fingers, it is used only with inferiors. - Point with your chin, whole hand or thumb. The chin is not used to point at superiors - Whistling is impolite and winking may be interpreted as either an insult or a sexual proposition - Apologize immediately if your feet or shoes touch another person - Ask permission before smoking. It is considered rude to smoke in the presence of elders - Never keep your purse or wallet in your back pocket - Standing tall with your hands on your hips is perceived as aggressive - Grasping the ears signifies sincerity or repentance, since ears are considered sacred, pulling or boxing ones ears is a grave insult
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G. Colors, Numbers, and Their Meanings - White is the absence of color, and is the only color widows are allowed to wear. It is the acceptable color at funerals and ceremonies that mark death in the family - Black in India has connotations with lack of desirability, evil, negativity, and inertia. It represents anger and darkness and is associated with the absence of energy, barrenness, and death. Black is used as a representation of evil and is often used to ward off evil - Red is dynamic and constantly breathing fire in the eyes of the beholder. It incites fear and is the color associated with one of the most revered goddesses in Hindu mythology. - Red also stands for purity and is the preferred color for a bride’s garment - Red and ochre that symbolize wealth and grandeur - Saffron represents impurities burnt by fire. It is the color of holy men and ascetics who have renounced the world. Wearing the color symbolizes the quest for light - Green symbolizes nature and therefore is a manifestation of God himself. It also represents light and happiness. A widow does not wear green - Yellow is the color of knowledge and learning. It also represents happiness, peace, meditation, competence, and mental development
- Zero: Shunya- indivisible, without form, without quality, without beginning or end - One: Eka- the individual soul, the state of nonduality, the oneness of existence hidden in all of creation beyond the veil of delusion - Two: Divi- the state of duality achieved through our minds and the senses - Three: Triah- Universal rhythm and order, representation of the Trinity, the three layers of fire, light, and darkness, the division of past, present, and future - Four: Chatur- the solution to the problem of the ego, the four aims of life: dharma, artha, kama, and moksha (righteousness, wealth, desire, and salvation) - Five: Panchan- the physical body and the planet Earth, the earth is the fifth element, five means to know, to do, to experience - Six: Shashtan- representation of the human mind, the six faculties: reason, emotion, thought, awareness, knowledge, and intelligence - Seven: Saptan- the earthly plane, seven sacred places, seven battlefields - Eight: Ashtan- division of space and divinities into their constituent parts - Nine: Navan- the highest, nine forms of devotion, nine gates to the human body: eyes, two ears, mouth, two nostrils, navel, and excretory openings - Ten: Dasan- the incarnation of God, the conscious and willful coming together of the transcendent and the imminent, of the mortal and the immortal, with God manifesting 21 himself fully in his earthly form with his splendor and energies
I N D IA ’S
BUSINES S ETIQUET TE Social and Cultural Elements H. Gift Giving - Give gifts with both hands - Gifts are not opened in the presence of the giver. If you receive a wrapped gift, set it aside until the giver leaves - Gifts from your country are appreciated - Gifts are not usually given at the first meeting, but rather as your relationship has developed a bit - If you are visiting during a festival, it is customary to carry a box of sweets - Different flowers have different connotations across India. If you are planning to give flowers, check with the florist as to what would be appropriate Indian etiquette - Be selective in giving a leather item as a gift. Many Hindus are vegetarians, and part of a dead animal would definitely be an unsuitable gift
I.Time - Punctuality is key, although being 10 minutes late will not be detrimental to your meeting - Avoid scheduling during national holidays such as Diwali or either of the two Eids - Flexibility is of great importance. Family responsibilities take precedence over business so last minute cancellations are possible when doing business
J. Joke Telling - It is preferred to hear a joke told in private rather than the work setting
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Business Entertaining A. Proper Use of Utensils - It is considered proper Indian etiquette to eat with your hands - If dining with Indian people who do not use cutlery, at least try to eat in the traditional Indian way and fit in with Indian etiquette - If hosts eat with hands, assure them you enjoy doing the same - If utensils are not used, use your right hand and your first three fingers and thumb only - If you do join in and eat with your hands, try not to use your left hand. This is usually considered ‘unclean’ and quite offensive - In North India it is impolite to dirty more than the first two segments of your fingers - In the South it is permitted to use your whole hand - If you really cannot participate, restaurants usually will be able to provide a spoon for you to use - Take food from communal dish with a spoon; never your fingers. Use chappati or poori (bread) torn into small chunks to scoop up food
B. Table Manners - Dinners are mostly hosted as large gatherings, and are mainly meant for socializing and getting to know each other - Arrive 15-30 minutes later than the stated time for a dinner party - At a social gathering a garland of flowers is often placed around a guest’s neck. Remove it after a few minutes and carry it in your hand to show humility - Allow hosts to serve you - Never refuse food - Do do feel obligated to empty your plate. Hindu hosts are never supposed to let their guests’ plates be empty - Never offer anyone food from your thali, even if you haven’t touched it - Traditional Indian etiquette and culture is to share food - Even when only two people are dining in a restaurant it is customary to order two different dishes and share the dishes - It is poor and offensive etiquette to share a fork or spoon or to drink from someone’s glass - Do not take a bit of someone else’s sandwich, ice cream, or chocolate 23
I N D IA ’S
BUSINES S ETIQUET TE Business Entertaining B. Table Manners - Do not double dip - The host pays for guests in a restaurant - Do not thank your hosts at the end of a meal. “Thank you” is considered a form of payment and therefore insulting - Guests give gifts to the host and the host’s children as a “thank you” - You should reciprocate invitations with a meal of comparable value. Never invite someone to a far more lavish dinner as it might embarrass them
C. Alcoholic Beverages - Most Westerners assume that India is a vegetarian country and that most Indians do not drink alcohol - Drinking alcohol is culturally not accepted in most parts of India - Keep in mind that Traditional Indian women do not typically drink - The best way to handle the issue is to ask “what would you like to drink?” as opposed to asking “would you like a glass of wine or beer?” - Alcohol is typically taken before and not with a meal - Wine culture is growing fast but it is a beer and hard drinks country
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D. Appropriate Conversation Subjects - Popular topics of conversation are the latest business news, the fortunes of the Bombay Stock Exchange, or cricket - It is normal and not invasive to ask about one’s family, home life, flight, etc.
E. Topics to Avoid - Avoid talking about personal matters and matters such as the poverty rate or beggars - Religion - Pakistan - Kashmir
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IMPORTING TRADE AGREEMENTS, LAWS, AND POLICIES Trade Agreements Between the United States and India The U.S. and India Trade Forum is co-chaired by United States Trade Rep and the Indian Minister of Commerce and Industry. The TPF is the premier bilateral forum for the discussion and also the resolution of trade and investment issues that had been going on between the United States and India. The discussions are organized around five focus groups that focus on Agriculture; Innovation and Creativity; Investment; Services; Tariffs and Non-Tariff Barriers. The TPF provides the venue for monitoring the progress that has been made on the trade and investment issues that have faced the two countries.
Import Laws That Affect the United States The following products require licenses or permits before being brought into the US: Vegetables, fruits, trademarked articles, meat, plants, guns or ammo, alcohol, dairy products, and animals. The Foreign Assets Control ensures that imports are not from commercial entities owned or operated by Cuba’s, Libya’s, North Korea’s, Iran’s, or Iraq’s governments. The entry process for what and how something can enter the US is also something that is monitored. In order for an import to come throw the importer must fill out the proper entry files. Goods can not legally enter the US without first being approved by Customs. Depending on an item’s Harmonized Tariff classification there is a possibility that the importer will not have to pay a duty on the import. But, once again in order for them to be exempted from the duty they must have already filled out the proper paperwork. NAFTA is another law that really affects the US, and its neighboring countries, Mexico and Canada. 26
CLASSIFYING THE IMPORTS The Harmonized Tariff Schedule How are HTS numbers organized?
Pinewood Pullover Sweater HTS Code: 6110.11.0030
Sculptor Cardigan HTS Code: 6110.11.0030
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DETERMINE THE SHIPPING ROUTE: Ocean Freight Summary A. Type of box used: Cardboard B. Number of Case Packs (boxes): 550 C. Type of container: 20’ Standard- steel: 20’ x 8’x 8’6 D. Space needed in container: Total container E. Cost to ship the merchandise: $2,123.96 - $2,347.54
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Shipping Time Line Delivery Time:70 - 80 days 1) Order is placed 2) Production Reservation: 7 days 3) Production: 1-2 weeks 4) Prepping for shipping: 7 days 5) Shipment taken to port: 7 days 6) Shipment loaded into Container: 7 days - Voyage Number: INB09 - Carrier: EFL Container Lines LLC - Port of Lading: Mumbai, India - Port of Unlading: New York, New York - Destination Port: New Yorl, New York - Ocean Travel Time: 15 - 20 days -New York: Shipment unloaded and loaded onto trucks: 7 days - US Customs: 7-10 days - New York, New York to New York, New York: 2 hours - Shipment arrives to it’s destination
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COST SHEETS B5611 FW 14
50% Merino Wool/ 50% Acrylic 1.5 yards
Pinewood Pullover Sweater
$6.73
XXS-XLG
$10.09
$10.09 Buttons Woven Label/ Care
8 1
$0.53 $0.30
$4.24 $0.30
$4.54 $1.00 $0.50 $1.50 Thread Sewing Top-Stitching Labor
$1.00 $2.75 $1.25 $0.45
$0.25 $0.50 $0.50 $9.70 $0.10 $0.15 $0.40 $0.50 $1.15 $25.44 $31.88 20% $79.50 60%
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A9472 FW 14
Merino Wool
2 yards
Scultptor Cardigan
$22.43
XS-LG
$44.85
$44.85 Woven Label/ Care
1
$0.30
$0.30
$0.30 $1.00 $0.50 $1.50 Thread Sewing Top-Stitching Labor
$1.00 $2.75 $1.25 $0.45
$0.25 $0.50 $0.50 $9.70 $0.10 $0.15 $0.40 $0.50 $1.15 $56 $70 20% $175 60%
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