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Table of Contents Company Overview-Ugg Boots................................................................................. 6
Corporate History.................................................................................................... 7 Product Overview.................................................................................................... 10
Eight Steps of Import Buying:................................................................................. Step I: Profile of New Zealand.....................................................................13 Step II: Analysis of New Zealand-Strategies Used for Importing...............27
Step III: Business Etiquette of New Zealand...............................................36
Step IV: Importing Trade Agreements, Laws, and Policies........................43 Step V: Classifying the Import....................................................................45 Step VI: Cost Sheet......................................................................................47 Step VII: Shipping Route............................................................................. 49 Step VIII. Entry Process for Imports to New Zealand................................52
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Company Overview: UGG Australia Ugg is an American footwear company and is a division of the Deckers Outdoor Corporation. UGG is
a registered trademark in the United States and over 130 other countries for their brand of sheepskin boots and other footwear, as well as bags, clothing, outerwear and other goods. Before they became a fashion phenomenon, the purpose of the original Australian sheepskin boot was for surfers to keep their feet warm after catching a few waves. In 1978 Australian surfer, Brian Smith, arrived in Southern California with a few dozen pairs of his sheepskin, Ugg Australia-brand boots. He founded the UGG brand and began selling his boots which became and over-night sensation and by the mid 1980’s became the epitome of the relaxed southern California culture. By the end of the 90”s celebrities and fashion icons took notice of the UGG brand and it became increasingly more popular across the nation.
In 1995, the UGG brand was bought by Deckers Outdoor Corporation for $15 million dollars. The com-
pany founder wanted a product he was able to sell in winter to complement their already successful Teva sandal business. By the mid 2000’s, the desire for premium casual fashion was becoming dominant and UGG boots became a staple in many people’s wardrobes. The evolution of UGG from a brand that made sheepskin boots, slippers, clogs and sandals for an active, outdoor lifestyle to a brand that was now being touted as a symbol of a stylish, casual and luxurious lifestyle was swift. UGG began offering numerous color and style variations on their sheepskin boots and slippers. Cold weather boots for women and men and leather casuals were added with great success. More UGG collections followed, showcasing everything from knit boots to sneakers to wedges, all the while maintaining that luxurious feel UGG is known for all over the world. The range has expanded to include not only footwear, but UGG brand bags, clothing, outerwear, hats, gloves and other goods. Deckers has reported sales of US$ 689 million under the UGG brand in 2008, an increase from US $14.5 million in 1995. In 2012, sales of the UGG brand worldwide were over US $1 billion.
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Corporate Timeline for UGG Austrailia
At Byron Beach Bay in Australia, surfer Shane Stedman invents a new type of shoe made of sheepskin that is used to help surfers warm their feet after getting out of the ocean.
Austrailian surfer Brian Smith moves to Southern California with a few pairs of UGG boots. He founded the UGG brand and began selling his boots.
The UGG brand is acquired by Deckers Outdoor Corporation for $15 million dollars.
UGG expands their product assorment into bags, clothing, and other goods. The brand begins to obtain global recognition, especially in Europe.
Sales of the UGG brand worldwide were over US $1 billion.
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Product Overview: Sheepskin Boot
ABOUT SHEEPSKIN: COMFORT AND FIT • UGG Australia footwear should be snug – but not uncomfortable. • UGG Australia footwear is designed to be worn barefoot to maximize the cushioning and warmth of the sheepskin. • Our fleece foot bed will mold to the natural contours of your foot, creating a personalized arch support. • The natural properties of wool will wick moisture away to ensure dry and cozy feet. Wool fleece helps maintain body temperature, making UGG Australia footwear appropriate for all climates. In fact, the wool will keep your feet warm down to -30 F and cool up to 80 F • UGG Australia uses only the highest-grade sheepskin available. Twin-face sheepskin is used in many of our core products. A piece of twin-face sheepskin has been treated on both the fleece side, and the skin side, providing the soft comfort UGG Australia is famous for. • Grade-A sheepskin is extremely dense and soft, which provides a more comfortable and durable material. Lesser quality material and synthetics can be coarse, scratchy and non-breathable. Grade-A sheepskin breathes naturally, wicking away moisture, and allowing air to circulate freely. • Fleece breathes, wicks away moisture and allows air to circulate keeping feet dry. • Sheepskin is naturally thermostatic thus keeping bare feet close to your natural body temperature regardless of the temperature outside.
30 BELOW – THE SCIENCE BEHIND THERMOSTATIC FOOTWEAR • Our fine woolen sheepskin breathes, wicking heat and moisture away to keep your feet dry and at body temperature indoors and out. • Sheepskin is a naturally thermostatic material. This means that while you’re wearing sheepskin, it’s automatically regulating your body temperature through the day. Because of this, UGG Australia sheepskin footwear can be worn all year round.
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Product Assortment
UGG Products Made in the USA -Qoddy slipper moccasins:100% hand-sewn and made from hand-finished leather -Classic Collection: pillows and poufs in neutral tones that add a sense of modern design and decadent softness to any room
UGG Products Made Outside the USA
Women’ Product Categories:
Boots, Slippers, Casual Shoes, Fashion Shoes, Loungewear, Handbags, Hats, Gloves and Mittens, Scarves, Earmuffs, Key Charms, Tech Accessories
Men’s Product Categories:
Boots, Slippers, Sandals, Loungewear, Gloves and Mittens, Hats, Wallets
Kid’s Product Categories:
Big Kids: Boots, Slippers, Casuals, Sandals Little Kids: Boots, Slippers, Casuals, Sandals Baby Shoes Key Chains and Accessories
UGG Home:
Rugs Pillows and Poufs
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Step I: Profile of New Zealand Traits and Contributing Factors
Social and Cultural Traits
• New Zealand has a population of slightly less than 4 million people with most living in the key cities. • The standard of living is high and their literacy rate is 100%. The state provides extensive social services for the welfare of its citizens, and has one of the most comprehensive health care programs in the world. • People from New Zealand are referred to as Kiwis. • 89% of the population has a European heritage, primarily English. Therefore, English is the predominant language and Christianity is the largest religion. • The Maori, a Polynesian people who were the earliest inhabitants of New Zealand make up the remaining population. There is little racial tension between the Maori and the predominately European/English people. • Though Maori and Europeans freely intermarry and have similar ways of life, each maintains its identity, so social and cultural aspects remain distinct for each group.
The Maori People
• Today Maori people live throughout New Zealand, and many are actively involved with keeping their culture and language alive. Within any Maori community, the marae provides a focus for social, cultural and spiritual life. • Maori people define themselves by their iwi (tribe), hapu (sub-tribe), maunga (mountain) and awa (river). Whanau is the name given to family - the term embraces immediate family, in-laws and all those connected by blood ties. • In recent years, the introduction of Maori language nests (kohanga reo) has revived the Maori language. At kohanga reo, preschool children are encouraged to speak in Maori. Primary and secondary schools build on this early immersion by including Maori in the curriculum. • Traditional carvers also help to keep Maori culture alive by creating intricate works that pay respect to the past. Every piece carved tells a story, which can be read by those who know how. The shape of the heads, position of the body as well as the surface patterns work together to record and remember events. 13
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Ethnic Groups
European- 71.2% Maori- 14.1% Asian- 11.3% Pacific peoples- 7.6% Middle Eastern, Latin American, Africn- 1.1%
Other- 7.0%
Languages
English-89.8% Maori- 3.5% Samoan- 2.0% Hindi- 1.6% French- 1.2% Northern Chinese- 1.2% Yue- 1.0%
Other- 20.5%
Age Structure
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0-14 years- 20.1% (male 449,850/female 427,934) 15-24 years- 14.1% (male 314,262/female 299,693) 25-54 years- 40.6% (male 887,060/female 885,421) 55-64 years- 11.3% (male 240,854/female 250,635) 65 years and over- 14% (male 280,569/female 328,835)
Political Traits
Government Type • Parliamentary Democracy and Commonwealth Realm
Capital Info
• • • •
ame:Wellington N Coordinates: 41 18 S, 174 47 E Time Difference: UTC+12 (17 hours ahead of Washington, DC during Standard Time) Daylight Saving Time: +1hr, begins last Sunday in September; ends first Sunday in April
**New Zealand is divided into two time zones - New Zealand standard time (12 hours in ad vance of UTC), and Chatham Islands time
Legal Systems Common law system, based on English model, with special legislation and land courts for the Maori
Political parties and leaders: -ACT New Zealand -Green Party -Mana Party -Maori Party -New Zealand National Party -New Zealand First Party or NZ First -New Zealand Labor Party -Jim Anderton’s Progressive Party -United Future New Zealand
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Flag Blue with the flag of the UK in the upper hoist-side quadrant with four red five-pointed stars edged in white centered in the outer half of the flag; the stars represent the Southern Cross constellation
National Symbol • Southern Cross Contellation • Kiwi Bird
National Anthem
“God Defends New Zealand”
National Colors • Black • White or Silver • Red Ochre
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Economic Traits
Currency • 1 New Zealand Dollar (NZD$)=100 cents
Statistics • • • • • • • • • • •
GDP- $181.1 billion GDP Growth- 2.7% GDP per capita- $30,396 GDP by sector- Agriculture (4.7%) Industry (24%) Services (71.3%) Inflation- 0.7% Gini coefficient- 36.2 Labor Force- 2.042 million people Unemployment Rate- 8.5% Main Industries: food processing, textiles, machinery, finance, tourism, and mining
Standard of Living • New Zealand has 0.1% of the world’s population • Economy produces 0.3% of the world’s material output • New Zealanders are generally well educated, healthy, and have a comfortable standard of living External
Factors
• Exports- $37.73 billion Export goods: dairy products, meat, wood and wood products, fish, machinery Main Export Partners: Australia, China, United States, Japan • Imports- $35.65 billion Import Goods- machinery, equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics Main Import Partners: China, Australia, United States, Japan, Singapore, Germany
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Public
• • • • •
Finances
ublic debt - 41.8% of GDP P Revenues - $62.64 billion Expenses - $72.71 billion Economic aid donor- $99.7 million Foreign reserves- US$20.626 billion
Other Economic Indicators
• Industrial production growth rate: 5.9% (2004) / 1.5% (2007) • Household income or consumption by percentage share: -Lowest 10%: 0.3% (1991) -Highest 10%: 29.8% (1991) • Agriculture – products: wheat, barley, potatoes, pulses, fruits, vegetables; wool, beef, dairy products; fish • Exports – commodities: dairy products, meat, wood and wood products, fish, machinery • Imports – commodities: machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics
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Geographical Traits
Location
• Oceania, islands in the South Pacific Ocean, southeast of Australia • Coordinates: 41 00 S, 174 00 E
Characterisitics • • • • • •
Population: 4,154,311 Capital: Wellington Area: 103,737 square miles (268,680 sq km) Coastline: 9,404 miles (15,134 km) Official languages: English and Maori Highest point: Mount Cook (Aoraki) at 12,349 ft (3,764 m)
Industry and Land Use • Grazing and agriculture • Produces- kiwi, apples, and grapes • Exports- wool, cheese, butter, and meat
Geography and Climate
• Mild temperatures with high rainfall • Two main portions of the island: North and South -North: 44,281 sq mi; low, volcanic mountains containing hot springs and geysers -South: 58,093 sq mi; Southern Alps, Mount Cook, Canterbury Plains, Fiordland
Biodiversity
• Biodiversity hotspot- most of the species are endemic • Eco-Tourism
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Contributing Factors of New Zealand
Labor New Zealand had the 4th highest rate of labor force participation in the OECD in 2008 with a 68.6% labor force participation rate. The abor market participation has increased from 63.8% to 68.2% over the last 20 years from 1989–2009. This increase was driven by females, for whom participation rose from 53.2% to 62.2% over the period, while male participation fell slightly from 75.1% to 74.6%. The unemployment rate in New Zealand is 7.3%. The December 2013 quarterly labor report showed: • the number employed increased by 24,000 and the number unemployed fell by 2,000 • the unemployment rate fell from 6.2% to 6.0% • the labour force participation rate increased 0.3 percentage points to 68.9%
Inputs (Natural Resources) The World Bank estimates that New Zealand ranks eighth out of 120 countries, and second out of OECD countries, in natural capital per capita. New Zealand has plentiful, clean water; clean air; productive soil and a climate well-suited to humans, trees, livestock, and agriculture; long coastlines and significant aquaculture resources; significant mineral and petroleum reserves; and extraordinary biodiversity on our land and in our water bodies. The country is also resourceful in natural gas, iron ore, sand, coal, timber, hydropower, gold, and limestone.
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Companies in New Zealand • Countdown • Telecom Coprporation of New Zealand Limited • The Warehouse Group • Canterbury of New Zealand • Lancorp • Grove Mills • Goodman Fielder Limited (NZX: GFF), food • Hubbard Foods • Blis Technologies • Fisher & Paykel Healthcare Corporation Limited (NZX: FPH) • Auckland Airport Limited • Designline • Mainfreight Limited • Northport, • PGG Wrightson Limited • Ports of Auckland • Port of Tauranga Limited • Skellerup Holdings Limited • Toll NZ, transport • Traffic Design Group • Kordia • Sky Network Television Limited • Foodstuffs Co-operative Group • Progressive Enterprises • Pumpkin Patch Limited • The Warehouse Group 24
Transportation Getting around can be accessible by either car or by foot. 90% of all households at least have one motor vehicle, and one out of twenty will run or walk to work. Only 20% of the journeys are made by buses and for long-distance trips, air-plane is commonly used rather than trains, ferries, or buses.
Business Climate As of 2014, New Zealand ranks first on the list of the Best Countries for Business, up from No. 2 last year. This is due to a transparent and stable business climate that encourages entrepreneurship. New Zealand’s economy is closely tied to Australia’s, and both held up better than most during the global financial crisis. The downside to the resilience of its economy is that the New Zealand dollar has appreciated, making the country’s agricultural exports more expensive. The higher prices have helped to push up unemployment to 7.3%—the highest level since 1999.
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Code of Conduct Introduction PURPOSE AND APPLICATION Deckers has created this Code of Business Conduct and Ethics (the “Code”) to ensure that our employees’ business decisions follow our commitment to the highest ethical standards and comply with domestic and global laws in the jurisdictions where we do business. Adherence to this Code and to our other official policies is essential to maintaining and furthering our reputation for fair and ethical practices among our customers, shareholders, employees, regulators, and communities. The principles guiding the Code are: •
Ethical behavior is the basis for everything we do
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We are committed to treating our employees fairly and providing them with opportunity for advancement and growth
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Teamwork, mutual respect and trust, and open communication are the foundations of Deckers’ corporate culture
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We strive to be a responsible corporate citizen in the communities in which we operate
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We are committed to compliance with the laws, rules, and regulations applicable everywhere we do business
The Code has been created to provide guidance regarding these principles. It does not, however, address every law, rule or policy. It also is not a substitute for each employee’s responsibility to exercise intelligence, common sense, and good judgment, and to obtain guidance when needed. If you have any questions about this Code or any doubt as to the propriety of a course of action, you should consult with your supervisor, Human Resources, the Legal Department, or call the Anonymous Reporting Hotline. Outside the U.S. you may also consult with the appropriate resource or representative, in accordance with the existing policy of your division. The Code applies to all company employees, officers and members of the Board of Directors. There are instances where some matters may be superseded by specific terms of a valid contract between you and the Company or a valid collective bargaining agreement. In the event that this Code conflicts with the Deckers Employee Handbook or any other Company policy, you must contact the appropriate person as described below in the section entitled “Asking for Help and Reporting Concerns”. If you have any questions regarding the interpretation of this Code or in the event you believe that an actual or apparent conflict exists between this Code and the Employee Handbook or any contractual arrangement, contact the appropriate person as described below in the section entitled “Asking for Help and Reporting Concerns”.
PERSONAL RESPONSIBILITY AND ACCOUNTABILITY
The Code helps us create the appropriate ethical tone for the company and uphold Deckers’ reputation and brand. Each of us has the responsibility to abide by the Code, both by understanding the letter and spirit of its guidance, and by applying sound personal judgment. Each of the Company’s directors, officers, employees, and agents must: •
Personally abide by the Code;
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Not assist others in violating the Code; and
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Report any perceived violation and/or request that might constitute a violation, utilizing the procedures outlined in the “Asking for Help and Reporting Concerns” section found on page 11.
When you are faced with a situation and you are not clear as to what action you should take, ask the following questions: •
Is the action legal?
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Does the action comply with this Code?
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How will your decision affect others, including our customers, shareholders, employees and the community?
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How will your decision look to others? If your action is legal but can result in the appearance of wrongdoing, consider taking alternative steps.
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How would you feel if your decision were made public? Could the decision be honestly explained and defended?
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Have you followed the procedures described below in the section entitled “Asking for Help and Reporting Concerns” regarding the action?
When in doubt, ask.
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Fairness and Safety in the Workplace EQUAL EMPLOYMENT OPPORTUNITY Deckers is committed to treating all employees with dignity and respect and to providing equal employment opportunities for all individuals. Employment practices shall adhere to all applicable laws in the places we do business. Such laws, depending on locale, prohibit discrimination based on age, ancestry, color, gender, HIV status, marital status, medical condition, national origin, physical or mental disability, race, religion, sexual orientation, veteran status, family leave status, citizenship status, or any other protected group status as defined by applicable law. Our Directors, Officers, Managers, and Supervisors at all levels are responsible for ensuring that the spirit and intent of this policy is, in fact, consistently practiced. Moreover, each employee has the responsibility to treat every colleague or applicant for employment with respect and in a fair, non-discriminatory manner.
HARASSMENT-FREE WORKPLACE It is Deckers’ policy to provide and maintain a productive atmosphere that is characterized by mutual respect. Deckers is committed to maintaining a work environment in which every employee is treated with respect and which is free from any type of harassment, including but not limited to that of a sexual nature or otherwise intimidating behavior, threat or assault. Deckers does not condone harmful conduct or comments which, although not severe enough to violate local laws, are still inappropriate in the workplace.
SAFETY AND HEALTH Each of us must make every effort to comply with applicable laws, regulations and Deckers’ policies, programs or procedures involving health and safety. A safe and secure work environment also means a workplace free from violence. Employees must also be mindful of and comply with Deckers’ policies regarding emergency preparedness and the security of our facilities and worksites. We are all responsible for maintaining a safe workplace by following safety and health rules and practices. We must immediately report accidents, injuries and unsafe equipment, practices or conditions to a supervisor or other designated person. Deckers is committed to keeping its workplaces free from hazards. Deckers policy prohibits employees from being under the influence of alcohol or drugs or improperly using medication in any way that could diminish, or even raise questions concerning an employee’s ability to perform at his or her best.
GLOBAL EMPLOYMENT LAW STANDARDS Deckers follows the employment law standards of all locations in which we do business. When operating in a country where we do not have a permanent presence, managers should seek any necessary guidance from the Legal Department regarding the employment law standards governing such operations.
PRIVACY We follow the applicable data privacy laws of all countries in which we operate, and even in the absence of such laws seek to respect employee privacy to the extent consistent with the sound operation of our business. Employees with access to personal information about other employees must act diligently to safeguard the confidentiality of such information and to provide that information to others only when based upon a business need to do so.
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Compliance with Laws and Fair Dealing ANTITRUST AND FAIR COMPETITION LAWS Deckers is committed to conducting its business in compliance with the letter and spirit of all applicable antitrust laws and other laws that protect competition. Antitrust laws are designed to ensure a fair and competitive marketplace by prohibiting various types of anticompetitive behavior. The antitrust laws can be complex, and it is impossible to describe them fully in any code of conduct and ethics. Accordingly, any question regarding compliance with antitrust laws or your responsibilities under this policy should be directed to the Legal Department. Deckers will not engage in or support activities that improperly restrain trade or that constitute unfair business practices or predatory economic conduct and will abstain from any activity that may violate or give the appearance of violating competition laws. Below are some scenarios that are prohibited and scenarios that could be prohibited for antitrust reasons. These scenarios are not an exhaustive list of all prohibited or possibly prohibited antitrust conduct. When in doubt about any situation, whether it is discussed below or not, you should consult with the Legal department. The following scenarios are prohibited for antitrust or anti-competition reasons: •
Proposals or agreements or understanding with any competitor regarding any aspect of competition between the Company and the competitor for sales to third parties;
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Proposals or agreements or understanding with customers which restrict the price or other terms at which the customer may resell any product to a third party;
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Dividing or allocating customers, bids, markets or territories for competing services or products with other competitors;
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Refusing to sell to particular buyers or to buy from particular suppliers.
The following business arrangements could raise anti-competition or antitrust law issues: •
Exclusive arrangements for the purchase and sale of products or services;
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Bundling of goods and services;
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Agreements to add an employee of the Company to another entity’s board of directors.
Unlawful agreements need not take the form of a written contract or even express commitments or mutual assurances. Courts can — and do — infer agreements based on “loose talk,” informal discussions or the mere exchange between competitors of information from which pricing or other collusion could result. You should take care to avoid involving yourself in such situations. The Company depends on its reputation, and the way we deal with our customers, suppliers and competitors molds that reputation. You must deal fairly with Deckers’ customers, suppliers, competitors and employees. You may not take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair-dealing practice. The antitrust laws can be complex, and it is impossible to describe them fully in any code of conduct and ethics. If you have any questions with regard to anti-trust laws, you should contact the Legal Department.
DECKERS ETHICAL SUPPLY CHAIN GUIDELINES Deckers Outdoor Corporation respects internationally recognized human rights and environmental standards and places them at the core of our business practices. We believe that no business should ever be complicit in human rights abuses. We promote greater environmental responsibility and we encourage the development and use of environmentally friendly technologies. See Ethical Supply Chain Guidelines at http://www.deckers.com/about/CorporateSocialResponsibility.
FOREIGN CORRUPT PRACTICES ACT AND ANTICORRUPTION LAWS If you are involved in transactions with foreign government officials, you must comply with not only the laws of the country with which you are involved but also with the U.S. Foreign Corrupt Practices Act. The United States Foreign Corrupt Practices Act prohibits giving anything of value, directly or indirectly, to foreign government officials or foreign political candidates in order to obtain, retain or direct business. Accordingly, corporate funds, property or anything of value may not be, directly or indirectly, offered or given by you or an agent acting on our behalf, to a foreign official, foreign political party or official thereof or any candidate for a foreign political office for the purpose of influencing any act or decision of such foreign person or inducing such person to use his influence or in order to assist in obtaining or retaining business for, or directing business to, any person.
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You are also prohibited from offering or paying anything of value to any foreign person if it is known or there is a reason to know that all or part of such payment will be used for the above-described prohibited actions. This provision includes situations when intermediaries, such as affiliates, or agents, are used to channel payoffs to foreign officials. The Foreign Corrupt Practices Act also contains significant internal accounting control and record-keeping requirements that apply to the Company's domestic and international operations.
POLITICAL ACTIVITIES Corporate political activities are governed by federal, state and local laws and regulations that limit expenditures and require record keeping and public disclosure. The Vice President of Legal must approve, in advance and in writing, any corporate contributions to political parties or candidates, lobbying of legislators or public officials and other political activities on behalf of the Company. The Company is prohibited from contributing to federal candidates for office or federal political parties. Your work time and your use of Company resources and equipment may be considered the equivalent of a contribution by the Company. Therefore, the Company will not pay employees for time spent campaigning or fundraising for a federal political candidate or party. If a manager or co-worker asks you to contribute to a federal candidate using Company resources — including your work time or work phone — politely refuse and refer the person to this section of the Code of Business Ethics and Conduct. You may not use Company resources for the purpose of campaigning or fundraising unless such use is permitted under applicable law and approved in writing in advance by the Legal Department. The Company will not compensate or reimburse you, in any form, for a political contribution that you intend to make or have made. Federal and state laws may require registration and reporting by anyone who engages in a lobbying activity on behalf of Deckers. Generally, lobbying includes: 1)
communicating with any member or employee of a legislative branch of government for the purpose of influencing legislation;
2)
communicating with certain government officials for the purpose of influencing government action; or
3)
engaging in research or other activities to support or prepare for such communication.
So that the Company may comply with lobbying laws, you must notify the Legal Department before you, or any consultant or other person you have retained, engages in any activity on behalf of the Company that might be considered lobbying as described above.
SECURITIES LAWS AND INSIDER TRADING The Company has adopted an Insider Trading Policy applicable to all employees, directors and officers which proscribes the unauthorized disclosure of any nonpublic information acquired in the course of your service with the Company and the misuse of material nonpublic information in securities trading. The Insider Trading Policy is circulated at least annually, and the distribution of the policy is part of the employee orientation process. A copy of this policy can be found on the Company’s intranet page under the Legal Department.
ACCURATE REPRESENTATIONS We will be truthful when representing our capabilities, credentials or qualifications and corporate history in all written and oral communications. We will not make false statements about our competitors or their services or use unfair practices against competitors, such as obtaining their confidential information.
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December 19, 2008, as amended May 26, 2010
Avoiding Conflicts of Interest GENERAL GUIDANCE Conflicts of interest can arise in virtually every area of our operations. A “conflict of interest” exists whenever an individual’s private interest interfere or conflict in any way (or even appear to interfere or conflict) with the interests of the Company. We must strive to avoid conflicts of interest. We must each make decisions solely in the best interest of the Company. Any business, financial or other relationship with suppliers, customers or competitors that might impair or appear to impair the exercise of our judgment solely for the benefit of the Company is prohibited. We are required to disclose any situation that may be or appear to be a conflict of interest. When in doubt, report a potential conflict of interest to management, the Legal Department, or using the Anonymous Reporting Hotline. The following are some examples of conflicts of interest:
FAMILY MEMBERS AND CLOSE PERSONAL RELATIONSHIPS A conflict of interest may arise if family members or someone you have a close personal relationship with work for a supplier, customer or other third party with whom we do business. It also may be a conflict if a family member has a significant financial interest in a supplier, customer or other third party with whom we do business. A “significant financial interest” is defined below under the heading “Ownership in Other Businesses”. Before doing business on our behalf with an organization in which a family member works or has a significant financial interest, you must disclose the situation and obtain approval from your immediate supervisor. Document the approval if it is granted. Actions of family members also may create a conflict of interest. For example, gifts to family members, or a trust or estate from which you or family members benefit, by a supplier of the Company are considered gifts to you and must be reported Family members and close personal relationships include, but not limited to, your spouse, siblings, parents, in-laws (e.g. mother, father, brother, sister, nephews, nieces, etc.), children, life partner, adoptive relationships, and those with whom you have a personal debt or investment interest. Employing relatives or close friends who report directly to you (i.e. for whom you can influence their pay or performance evaluation) are also a conflict of interest. Although our Company encourages employees to refer candidates for job openings, employees who may influence a hiring decision must avoid being involved with the hiring of anyone with whom they have a family or personal relationship without written approval in advance from the Legal Department.
OUTSIDE EMPLOYMENT Officers and employees may not participate in outside employment, self-employment, or serve as officers, directors, partners or consultants for outside organizations, if such activity: •
Reduces work efficiency;
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Interferes with your ability to act conscientiously in our best interest; or
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Requires you to utilize or disclose our proprietary or confidential procedures, plans or techniques.
You should inform your supervisor and Human Resources in writing and in advance of any outside employment, including the employer’s name and expected work hours.
OWNERSHIP IN OTHER BUSINESSES Any direct or indirect significant financial interest in one of our competitors, suppliers, customers or other third parties with whom we do business creates a potential conflict of interest. You should not allow your investments to influence, or appear to influence, your independent judgment. In general, you should not own, directly or indirectly, a significant financial interest in any company that competes with our Company or that does, or seeks to do, business with us. Tests to help you determine if a “significant financial interest” exists include: •
You or a family member owns more than 5% of the outstanding stock of a business or you or a family member has or shares discretionary authority with respect to the decisions made by that business,
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You depend on the income to support your current lifestyle, or
•
The investment represents more than 5% of your total assets or of your family member’s total assets.
If you or a family member has a significant financial interest in a company with whom we do business or propose to do business, that interest must be approved by your immediate supervisor prior to the transaction.
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Creating and Maintaining Accurate and Complete Records Our reputation depends on the confidence others have in us, which is partly based on the accuracy of our written records and verbal statements.
CONSIDERATIONS REGARDING FINANCIAL RECORDS All payments and other transactions must be properly authorized by management and be accurately and completely recorded in the books and records of Deckers consistent with generally accepted accounting principles and established Deckers policies and procedures. All transactions must be supported by appropriate documentation. Deckers records must not be misleading in any respect. No undisclosed or unrecorded funds may be established for any purpose, nor may Deckers funds be placed in any personal or non-corporate account. All employees with financial or accounting responsibilities have additional responsibilities arising from their positions. They must maintain awareness of and perform their duties consistent with financial and accounting related laws, regulations, and professional standards and request appropriate professional advice as required. Senior financial management must also ensure that financial and accounting staffs have the appropriate level of functional expertise and resources to accomplish operational objectives and maintain professional standards, and prevent any pressure on accounting personnel for the purpose of inflating or otherwise misstating reported financial results.
THE IMPORTANCE OF ACCURACY WITH ALL RECORDS Every employee must help ensure that reporting of business information, computerized, paper or otherwise, is accurate, honest, and timely. This policy includes not only financial records but all records of Deckers including, but not limited to, time sheets, inspection reports, plans and specifications, expense reports, vouchers, client billings, other bills, payroll and benefits records, regulatory data, performance evaluations and other essential Deckers information or information provided to clients or other third parties.
INTERNAL CONTROLS Deckers has a system of internal controls sufficient to provide reasonable assurance that transactions are executed and recorded in accordance with management authorization and Deckers policy, to permit preparation of reliable financial statements and to maintain financial control overall. Employees must never mislead Deckers’ internal or external auditors through false, misleading, incomplete or non-responsive information. All employees must: •
Follow all laws, external accounting requirements and Deckers procedures and standards for recording and reporting information;
•
Never make a false or misleading entry in a report or record;
•
Never destroy Deckers records unless pursuant to appropriate authorization and in accordance applicable laws and regulations;
•
Never destroy Deckers records that relate to open legal issues or claims without first consulting with the Legal Department;
•
Never copy, disclose, sell, transfer or dispose of Deckers assets without proper documentation of authorization from the Legal Department.
•
Use care in creating all correspondence, voice mail, email, and written documents on behalf of Deckers to avoid inaccuracy, exaggeration, or offensive language.
RECORD RETENTION A record is any information, regardless of physical format, which has been created or received in the transaction of the Company's business. Physical format of a record includes hard copy, electronic, magnetic tape, disk, audio, video, optical image, etc. Each corporate department is responsible for the maintenance, retrieval, transfer, and destruction of its records in accordance with appropriate procedures and schedules in accordance applicable laws and regulations. The alteration, destruction, withholding, or falsification of corporate documents or records may constitute a criminal act. Intentionally destroying or altering documents with the intent to obstruct a pending or anticipated official government proceeding is a criminal act and could result in large fines and a prison sentence of up to 20 years. Document destruction or falsification in other contexts can result in a violation of the federal securities laws or the obstruction of justice laws. Before any destruction of any documents or records, you must consult the applicable laws and regulations. You are required to review, follow and abide by the terms of those procedures. If the procedure is not clear, questions arise, or there is a pending or anticipated official proceeding, then the Legal Department and Finance Department must approve any document destruction. Page 12
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December 19, 2008, as amended May 26, 2010
Confidential Information and Other Corporate Assets COMPANY INFORMATION
It is the Company’s policy to ensure that all operations, activities and business affairs of the Company and our business associates are kept confidential to the greatest extent possible. Confidential information includes all non-public information that might be of use to competitors, or that might be harmful to the Company or its customers if disclosed, such as: •
Non-public information about the Company’s financial condition, prospects or plans, its marketing and sales programs and research and development information, as well as information relating to mergers and acquisitions, stock splits and divestitures;
•
Non-public information concerning possible transactions with other companies or information about the Company’s customers, suppliers or joint venture partners, which the Company is under an obligation to maintain as confidential; and
•
Non-public information about discussions and deliberations relating to business issues and decisions, between and among employees, officers and Directors.
Confidential and proprietary information about the Company or its business associates belongs to the Company, must be treated with strictest confidence and is not to be disclosed or discussed with others. All employees must comply with the Deckers’ Trade Secret and Confidentiality Policy. Pursuant to their fiduciary duties of loyalty and care, Directors are required to protect and hold confidential all non-public information obtained due to their directorship position absent the express or implied permission of the Board of Directors to disclose such information. Accordingly: •
No Director shall use Confidential information for his or her own personal benefit or to benefit persons or entities outside the Company; and
•
Except with authorization of the Board of Directors or as may be otherwise required by law, no Director shall disclose Confidential Information outside the Company, either during or after his or her service as a Director of the Company, including, without limitation, disclosure to principals or employees of any business entity which employs the Director or which has sponsored the Director’s election to the Board of Directors.
CORPORATE OPPORTUNITIES AND USE AND PROTECTION OF COMPANY ASSETS You are prohibited from: 1)
taking for yourself, personally, opportunities that are discovered through the use of Company property, information or position;
2)
using Company property, information or position for personal gain; or
3)
competing with the Company.
You are personally responsible and accountable for the proper expenditure of Company funds, including money spent for travel expenses or for customer entertainment. You are also responsible for the proper use of property over which you have control, including both Company property and funds and property that customers or others have entrusted to your custody. Company assets must be used only for proper purposes. Company property should not be misused. Company property may not be sold, loaned or given away regardless of condition or value, without proper authorization. Each director, officer and employee should protect our assets and ensure their efficient use. Theft, carelessness and waste have a direct impact on the Company’s profitability. Company assets should be used only for legitimate business purposes.
COMPUTERS, INTERNET AND E-MAIL For business purposes, officers and employees are provided telephones and computer workstations and software, including network access to computer systems such as the Internet and e-mail to improve personal productivity and to efficiently manage proprietary information in secure and reliable manner. All employees must comply with the Deckers’ IT Acceptable Use Policy.
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SWOT Analysis of New Zealand
Strengths • Considered to have a low population with 4 million people, they are geographically isolated and have a stable democratic political system. They take pride in their agricultural advantage, they grow a lot of their own food and export than they import. New Zealand appears to be a great land resource, with fresh water and a minor but decent amount of oil and natural gases. Approximately 60% of electricity is renewably generated. New Zealand is also fairly advanced. They have a very high literacry rate and are a very socially progressive culture.
Weaknesses • Transportation is an issue because of their dispersed population in both rural and suburban areas. Being geographically isolated makes those at the end of the supply chain and little manufacturing exist around them which makes them have to get health and medical supplies are imported. They have to import a great amount of staple foods like grains, and places that use to grow grains is now being turned into lands utilized for dairy production.
Opportunities • They have the chance to redesign their lands and incorporate water management and food production farming strategies because of their pastoral agriculture. This will reduce the impact on natural systems. New Zealand has a great opportunity to continue renewable generation with the wind and tidal systems to spread out the electricity grid. They have the potential to use solar power but because of current policies, housing regulations and other government laws, they do not encourage the use of solar energy.
Threats • Most of the population lives close to the coast and are not above sea-level, making these areas vulnerable to rapid sea level rise. The spread of harmful plant weeds have the possibilities to transform their ecosystems and landscapes, which could also affect their fresh water supply also causing harm to New Zealand’s native plants and animals.
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Competitive Advantages • • • • • • • • • • • • • •
Low population (not that many mouths to feed) We grow a lot of food. NZ exports more food than we import. Abundant fresh water Geographically isolated Decent soil for good agriculture Stable democratic political system Minor but good quality reserves of oil and natural gas Good cool temperate to warm temperate climate Approximately 60% of electricity generated from renewable New Zealand is a very good place for growing things. At present, much of what we grow is on the basis of potential export receipts (cows, pines), but there is a lot of potential to grow other things Nowhere in New Zealand is too far from the sea, which tends to buffer temperature extremes The country has a good amount of experience with alternative currency systems They are ranked the number one best country to start a business in They are ranked the third best country to do business with
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Step III: Business Etiquette of New Zealand
Business Etiquette Culture Overview
• Normal business hours are Monday – Friday 8:30am-5:00pm and Saturday 9:00am-12:30pm. • Appointments are necessary and should typically be made at least one week in advance. It is easy to schedule meetings with senior level managers if you are coming from another country as long the meeting is planned well in advanced. • Summer vacation months are December and January and during these times it is difficult schedule meetings. • Arrive at meetings on time or even a few minutes early. Being tardy or late can be interpreted as unreliable and rude. • Meetings are typically relaxed and generally start off with casual small talk. • For a meeting with clients you tend to shake hands with the clients but not necessarily your colleagues (whom you have probably greeted earlier). • Depending on the nature of the meeting, who called it etc., there will be an appointed representative from one side who starts it, follows the agenda, and concludes it. • It is important to maintain a reserved, formal demeanor, especially when first meeting someone. Take your lead to become more relaxed by following the behavior of your New Zealand hosts. • During a presentation, it is best to get to the point. “New Zealanders are interested in what people 'can do' not what they say they can do.” • Make sure to present your business case with facts and figures. Emotions and feelings are not important in the New Zealand business climate. • Eye contact is very important. • New Zealanders prefer to keep a few feet of personal space • At any kind of meeting of function there will almost always be light snacks and refreshments.
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Masculine or Feminine • New Zealand scores 58 on this dimension and is considered a “masculine” society. • Behavior in school, work, and play are based on the shared values that people should “strive to be the best they can be” and that “the winner takes all”. • New Zealanders are proud of their successes and achievements in life, and it offers a basis for hiring and promotion decisions in the workplace. • Conflicts are resolved at the individual level and the goal is to win. • The country has no formal class structure. • Wealth and social status are not important to Kiwis. • They take pride in individual achievements and believe that opportunities are available to all. • As a 'welfare state' unemployment benefits, housing and access to health is all available free of charge to those who can't afford it. • Maori have a hierarchy especially apparent in formal situations.. For example, the elder (male or female) is seated in a specific area and will be asked to open or close a meeting. Mostly they are men but not always.
37
Negotiation Styles and Strategies
• The negotiating process takes time, so do not be in a hurry. High-pressure sales tactics is frowned upon. •
Demonstrations of your services and/or products is preferred over talking about them.
•
New Zealanders don’t like to bargain and haggle. Negotiations should be started with realistic figures.
•
Kiwis don’t trust people who oversell by giving unrealistic proposals or promises.
•
Kiwis are very direct and expect the same. Agreements and proposals must state all points clearly. All terms and conditions should be explained in detail.
•
Kiwis expect business to be handled with honesty and directness. Stick to the point
when speaking.
Types of Communication
• New Zealanders can appear reserved and stand-offish when meeting people they don’t know for the first time. Once they become familiar and get to know someone, they becoming increasingly friendly, outgoing and social. • They don’t respond well to people who are too overtly friendly. • They value people who are honest, direct, and demonstrate a sense of humor. • They are very open-minded and have a genuine overall trust for people. Once that trust has been broken, it is most likely that the relationship, personal or professional, will be damaged. This leads to the halting and or ceasing in business deals.
38
Social and Cultural Elements
A. Appropriate Business Attire • For men attending a meeting for the first time, a relatively conservative business suit is a good idea. Many companies allow business casual dress, which is usually nice pants and a collared shirt with or without a jacket. For women dresses, pantsuits, or business suits are a appropriate. Limited accessories are fine and it is best to avoid overly revealing clothing. • Umbrellas and raincoats are necessary most of the year because of the climate and rainfall. The climate is temperate, not tropical. A medium weight wool gabardine would be a good choice of fabric for your basic wardrobe. • Being clean and well-groomed is generally appreciated.
B. Introductions • Introductions are done with appropriate titles and last name. Calling each other on a first name bases only occurs once the invitation is extended. To be polite and not self-promote one’s self, it is important to not announce your job titles.
C. Greetings • Most of the time, greetings are very casual and consist of a handshake and a smile. The smile is indicative of the pleasure at meeting the other person. If greeting a women, one should wait for her to extend her hand first before shaking. Business cards are usually exchanged after the greeting. • Although it is common for New Zealanders to move onto a first name basis very quickly, it is always best to address them by their honorific title and surname until they suggest moving to a more familiar level or begin calling you by your first name. • The Maori people of New Zealand have a much more formal way of greeting. They follow a ceremony and have distinct protocols regarding how visitors should be welcomed and seen off. If the business dealings are with a tribal group (Iwi) the welcoming protocols may be practiced through the process of Powhiri – a formal welcome that takes place on a Marae. A Powhiri can take between 30 minutes to 2-3 hours depending on how important the event is. A Powhiri dictates where people sit, in what position in their group, and who speaks. In most cases the men are seated forward and only males speak. The welcoming speeches are given by the agreed speakers of the home people and always end with the most revered speaker or elder. Speeches are given in the Maori language and accompanied by traditional song. The visitors are expected to have at least one speaker reply on their behalf. Once the last elder of the home people has spoken, they will gesture the visitors to come forward in a line to shake hands, kiss (once) on the cheek or hongi (touch noses) with the home people. After this, the people are called to eat and then the proper meeting will begin. 39
• While Europeans New Zealanders use the English language, the Maori people use a language called Te Treo Maori. This language has a logical structure and very consistent rules of pronunciation. • Below are some of the Maori greetings: Kia ora - Hello Kia ora tatou - Hello everyone Tena koe - Greetings to you (said to one person) Tena koutou - Greeting to you all Haere mai - Welcome Nau mai - Welcome Kei te pehea koe? - How’s it going? Kei te pai - Good Tino pai - Really good Haere ra - Farewell Ka kite ano - Until I see you again (Bye) Hei konei ra - See you later
D. Presentation of Business Cards • There is no specific protocol surrounding the giving and receiving of business cards, but they are commonly exchanged after the intial greeting and introduction.
E. First Name of Title • Most people will want to interact on a first name basis as quickly as possible. It's best to begin addressing people using, Mr., Mrs. or Miss, followed by the full name or surname. Follow the lead of your host regarding how and when they use first names.
F. Gestures • • • •
40
Raising of the eyebrows can be considered an informal greeting. Beckoning with index finger Thumbs up is used to show when something is good. Middle finger is used to express anger and rage. It can also be used as a way of saying “whatever” between friends.
G. Colors, Numbers, and Their Meanings • White: peace and honesty • Red: hardiness, strength, bravery, and valour • Blue: vigilance, truth, loyalty, perseverance, and justice
H. Gift Giving • Gifts are not generally exchanged in business situations. • However if an extended invitation is giving to someone house it is polite to bring a small gift, such as chocolate, wine or pastries. • Gifts are opened when received.
I. Time • Normal business hours are Monday – Friday 8:30am-5:00pm and Saturday 9:00am-12:30pm. • Punctuality is important for many and tardiness is often seen as a form of rudeness or disrespect. • Always be on time or early for all appointments. Punctuality is part of the culture and most social event starts on time. • Buses and trains are expected to be 5-10 minutes early. • People are expected to give notice when running late. • Most people will give time their fairly freely to help out others.
J. Joke Telling • Australians tend to be the butt of New Zealand humor. They are stereotyped as being brash, boorish, and lazy. • There are a large number of sheep jokes, they are mainly crude. • Many regional stereotypes have arisen over the years and jokes are told about other regions based on these stereotypes. -Auckland -Southland -Wellington
41
Elements of Business Entertaining
A. Proper Use of Utensils • Hold the fork in the left hand and the knife in the right while eating. • New Zealanders will understand if another cultures eating habits are adopted during the meal. • Indicate you have finished eating by laying your knife and fork parallel on your plate with the handles facing to the right.
B. Table Manners • • • • •
New Zealanders are fairly casual and their table manners reflect as much. The more formal the occasion, the more strict the protocol. Wait to be told where to sit. Meals are often served family-style. Keep your elbows off the table and your hands above the table when eating.
C. Alcoholic Beverages • • •
Alcohol consumption plays a very large role in New Zealander’s lives It is common to serve or consume acohol during business dinners and functions The legal drinking age in New Zealand is 18
D. Appropriate Converstaiion Subjects • Politics, sports, and weather are good conversational topics, and may be hotly debated. In order to be a good conversationalist, stay current and informed on critical topics.
E. Topics to Avoid • Avoid confusing or comparing New Zealand with Australia. New Zealanders are both very sensitive and competitive when it comes to Australia, They may get offended.
42
Step IV: Importing Trade Agreements, Laws, and Policies Part 1: Trade Agreements of New Zelands
Agreements in Force • • • • • • • •
New Zealand-Hong Kong, China Closer Economic Partnership entered into force on 1 January 2011 New Zealand-Malaysia Free Trade Agreement entered into force on 1 August 2010 ASEAN-Australia-New Zealand Free Trade Agreement - 2010 New Zealand-China Free Trade Agreement - 2008 Trans-Pacific Strategic Economic Partnership (P4) - 2005 New Zealand-Thailand Closer Economic Partnership - 2005 New Zealand-Singapore Closer Economic Partnership - 2001 Australia-New Zealand Closer Economic Relationship - 1983
Agreements Under Negotiation • Anti-Counterfeiting Trade Agreement (Concluded and signed, but not yet ratified) • New Zealand-Australia Closer Economic Relations Investment Protocol Subject to Parliamentary Treaty Examination, expected to enter into force in 2012 • New Zealand-Gulf Cooperation Council Free Trade Agreement (concluded but not yet signed) • New Zealand-Russia-Belarus-Kazakhstan Free Trade Agreement • New Zealand-India Free Trade Agreement • New Zealand-Korea Free Trade Agreement • Trans-Pacific Strategic Economic Partnership • New Zealand-Hong Kong, Closer Economic Partnership Investment Protocol • Regional Comprehensive Economic Partnership (RCEP) • Trade in Services Agreement
Agreements Being Considered • New Zealand and Japan 43
Part 2: Laws of the U.S. Affecting Imports
• New Zealand's recent unilateral reduction of trade barriers has made it one of the most open economies in the world. Just three years after announcing in 1984 that all tariffs would be cut to zero, the government reported that 93 percent of its proposed reforms had been completed, and instituted a multi-year program to address the remaining reforms.Due to a relatively small domestic market and the structural impacts of the reforms, trade is foremost among New Zealand's political interests and comprehensive market access for agricultural goods a top priority in multilateral negotiations. While its economy has traditionally been dominated by agriculture, the market reforms have highlighted the importance of agricultural export performance in determining New Zealand's economic success. New Zealand's small size presents limitations in building economies of scale, thus the pressures imposed by liberalization have forced New Zealand to exploit a niche cost and quantity advantages, particularly in meat and dairy production. While this increased specialization has made New Zealand's exports more robust in the face of competition posed by world markets, such focused dependence has increased its vulnerability to sluggish growth in demand for primary agricultural commodities. It is clear from the case of New Zealand that the full benefits of reform require a long period of adjustment, the support of the multilateral system - particularly through market access and a sustained effort.
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Step V: Classifying the Import The Harmonized Tariff Schedule (HTS) • One item that Uggs are known for is their sheepskin boots. Their boot are contains sheepskin, fur or wool lining, and molded EVA soles. They can be produced for men and women. For a pair of women’s basic Uggs boots, the Harmonized Tariff Code is: -Section XII - Footwear -Chapter 64 - Under the HTS, Uggs are shoes with uppers made of animal skin with a molded bottom. It is not a sports shoe. -Tariff Item 6403.91.90
45
46
Cost Sheet
COST SHEET Style# 5825
Size range: 0-11 Season: F/W13
COMPONENT COSTS: Fabrics: Sheepskin
YdslQty Unit Pre $ Amt 1yd 19.10 $19.10
Lining:Fur
.5 yd
6.50
$3.25
1 2 2
.50 1.50 1.50
.50 3.00 3.00
Description: Classic Short
Front Sketch
Other: (TOTAL Trims: (use back for Thread Label Outsole Insole
(TOTAL CMT COSTS: TRIMS) Grading: Marking : Cutting: Sewing (Gluing):
6.50 1 hr 1 hr 3hrs 3 hrs
2.00 2.00 1.00 1.00
Wash/Type Press/Trim QEIBag & Tag
(TOTAL PACKING MATERIALS: Tissue Polybag Inner Box Outer Box (TOTAL (TOTAL WHOLESALE PRICE WHOLESALE MARGIN RETAIL PRICE RETAIL MARGIN
2 2 3 3
10.00 4 2
0.10 2.00
1
2.00
.40 2.00 2.00 6.40 45.25 69.75 Comments: 35% SEAMS : $155.00 55%
47
Cost Sheet
COST SHEET Style # 1003511 COMPONENT COSTS:
Size Range: 5-11
1yds 1 yds .5 yds
Sequin/Satin
19.10 7.50 6.50
(TOTAL Trims: (use back for Thread Label Outsole Insole
1 2 2
.50 1.50 1.50
(TOTAL TRIMS)
19.10 7.50 3.25
(TOTAL PACKING MATERIALS: Tissue Polybag Inner Box Outer Box (TOTAL (TOTAL WHOLESALE PRICE WHOLESALE MARGIN RETAIL PRICE RETAIL MARGIN
.50 3 3
6.50 1 hr 1 hr 1 hr 7.5 hr
2.00 2.00 2.00 1.10
Wash/Type Press/Trim QEIBag & Tag
48
Front Sketch
29.85
Other:
CMT COSTS: Grading: Marking : Cutting: Sewing
Description: Sparkles I DO
YdslQty Unit Pre $ Amt
Fabrics: Sheepskin
Lining:
Season: F/W 2013
2.00 2.00 2.00 8.25
14.25 4 2 1
.10 2.00 2.00
.40 4.00 2.00 57.04 87.75 35% $195.00 55%
Comments: SEAMS :
Step VII: Shipping Routes
• • • • •
Part 1: Ocean Freight
A. Type of Boxes: Cardboard boxes put inside of metal containers B. Number of Boxes: 58 C. Type of Container: Metal, equipped with steel skeletons called “cell guide” D. Space Needed in container: 20ft x 40ft E. Cost to ship the merchandise: $4,900- $5,500
49
Part 2: Air Freight
• • • •
A. Type of Garment Carrier: N/A B. Number of garment carriers: N/A C. Space: N/A D. Cost: N/A
Part 3: Timelines
• Ocean Freight Shipping • • • • • • • • • • • • • • • • • • • • • • • • •
**Delivery Time 90 Days** Decker’s Outdoor Corporations makes order for sheep skin Production Reservations (7 Days) • Grading • Marking • Cutting Pack and Prepare for shipping (7 days) Pick-up Cubed Units (Depending on Reservations) Roadway Truck Shipment Taken to Port (5 days) Shipment Loaded to Container at Port (1 week) Go through Customs **On water for 2-3 weeks Arrive in Singapore Unloaded Go through Customs Driven to Factory **Attach Soles Reload onto shipping containers Driven to Port Go through Customs Loaded onto Boat **On Water for 30days Arrive in Long Beach, California U.S Customers (7-10 Days)
• ***Distributed to Final Destination*** 50
Part 4: Maps
51
Step VIII: Forms for the Entry Process Importer’s Documents
52
53
54
Freight Carrier’s Documents
55
56
57
58
59
Manufacturer’s Documents
60
61
62
Banking Documents
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Bibliography
• • Badenhausen, Kurt. “New Zealand Tops Our List of the Best Countries for Business.” Forbes. Forbes Inc., 14 Nov 2012. Web. 6 Mar 2014. < http://www.forbes.com/sites/kurtbadenhausen/2012/11/14/new-zealand-tops-list-of-the-best-countries-forbusiness/>. • • “Economy Profile: New Zealand.” Doing Business. The International Bank for Reconstruction and Development. Web. 6 Mar 2014. <.doingbusiness.org/~/media/giawb/doing business/documents/profiles/country/NZL.pdf>. • • “Household Labour Force Survery: December 2013 quarter.” Statistics New Zealand. Newzealand.govt.nz. Web. 6 Mar 2014. <http://www.stats.govt.nz/browse_for_stats/income-andwork/employment_and_unemployment/HouseholdLabourForceSurvey_HOTPDec13qtr.asp&xgt;. • • “List of Companies in New Zealand.” Wikipedia. Wikipedia, 14 Feb 2014. Web. 6 Mar 2014. <http://en.wikipedia.org/wiki/ List_of_companies_of_New_Zealand>. • • “Maori Culture.” New Zealand Tourism Guide. New Zealand Tourism. Web. 6 Mar 2014. <http://www.tourism.net.nz/newzealand/about-new-zealand/maori-culture.html>. • • “Natural Resources.” Ministry of Business Innovation & Employment. Newzealand.govt.nz. Web. 6 Mar 2014. <http://www. med.govt.nz/sectors-industries/natural-resources>. • • “New Zealand’s Business Etiquette.” Just Landed. Just Landed, n.d. Web. 6 Mar 2014. <http://www.justlanded.com/english/ New-Zealand/New-Zealand-Guide/Business/New-Zealand-business-etiquette>. • • “New Zealand Humor.” Wikipedia. Wikipedia, 14 Feb 2014. Web. 6 Mar 2014. <http://en.wikipedia.org/wiki/New_ Zealand_humour>. • • “New Zealand Social Values.” The University of Auckland. The University of Auckland, n.d. Web. 6 Mar 2014. < https:// www.auckland.ac.nz/en/for/international-students/is-life-at-auckland/is-living-in-auckland-and-new-zealand/is-newzealand-social-values.html>. • • “Panjiva.” Panjiva. Panjiva. Web. 6 Mar 2014. <http://panjiva.com/shipment_search/results?q=new zealand&q_adv=ugg&type=us_imports&x_history=eJxtT8tuAjEM_BefOSxoocCvVFVkJYa1mmRT24uEEP9eB4GqVr3NwzMa3yDOeSlVQxNSqgbHG-jErThWOMIa7qvXzR_vHdJSyhVWgCJ8wRwSGjn9WrAaW3cKWpxIOyI5Uwo930h-hDhX5XOlHnRsyJXE1VLm5B0hkUbhZjzXXxcF5VPhw9clLgFzDvthO_jiE2btZUInfmhh3BzGw-5tvds-HvrH2gzj08J0wRopOTVZeo8SSpyCXRu5-Pof7t9XempG>. • • “Quarterly Labour Market Scorecard-February 2014.”Ministry of Business Innovation. Newzealand.govt.nz. Web. 6 Mar 2014. <http://www.dol.govt.nz/publications/lmr/scorecard/feb-2014/index.asp>. • • “Trade Relationship and Agreements.” New Zealand Ministry of Foreign Affairs and Trade. N.p.. Web. 6 Mar 2014. <http:// mfat.govt.nz/Trade-and-Economic-Relations/2-Trade-Relationships-and-Agreements/index.php>.
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Prep are d by L in it a Jones , Je ss i c a S ol e s , and Tor i L aw re nce
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