GLOBAL SOURCING GUIDELINE
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INDEX H IST ORY IMP OR TED PR ODUCTS COUNTRY PR OF ILE
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SPECS GEOGRAPHY FAMILY SOCIAL LIFE RELIGON REGINAL LIFE POLITICS ECONOMY
SWOT ANALYS IS CONTR IBUT ING FACT OR S
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TRANSPORTATION LABOR PRODUCTS BUSINESS CLIMATE
BUS INESS ETT IQUETTE TRADE LAWS P OL IT ICS and AGREEMENTS
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TRADE PROTOCOL
• RELATIONS
LAWS OF THE US THAT AFFECT THE IMP OR TAT ION OF PR ODUCTS CLASSIFYING THE IMPORTS FREIGHT SHIPMENT ROUTE COST SHEET IMPORT DOCUMENT FREIGHT CARRIERS DOCUMENT MANUFACTURING DOCUMENT BANKING DOCUMENT
“We side with style over fashion, think timelessness is underrated and find that clothes look best when they’re lived in. We love color-blocking and pattern mixingand temper tomboy with heels. We’re fans of tousled hair and think everything’s right when something’s left just a little imperfect. “........
xoxo,
J. Crew
History 1947
1985
Popular Merchandise, Inc. is founded by Clifford Wills women’s clothing Mitchell Cinader and Saul Charles to catalog was launched sell low-priced women’s clothing through
1983
The first J. Crew catalog is mailed to customers.
in-home demonstrations.
1989
Company changes its name to J. Crew Group, Inc. The first J. Crew retail outlet opens; deal to sell Popular
1997
J.Crew is sold to Texas Pacific Group
Club Plan falls through.
2000
100th retail store opens
1993
Through a joint venture, J. Crew retail stores begin appearing in Japan.
2008
J. Crew women’s first collection store opens
2011
J. Crew went global with the opening of their first Canadian store.
Imported Products
Made in California Cotton T-shirts Denim Belts Swimwear
Made In Italy Shoes cashmere sweaters leather outerwear
Made in Ireland Linen
Country Profile Specs and Geography Official Name: Italian Republic 2 legislative houses: Senate (320)Chamber of Deputies (630) Head of State: President Sergio Mattarella Head of government: Prime Minister Matteo Renzi Capital: Rome Official Language: Italian Monetary unit: Euro Population: 59,993,000 people The Alps separate Italy from France, Switzerland, Austria, and Slovenia. The Mediterranean Sea surrounds Italy: in particular, the Adriatic Sea to the Northeast, the Ionian Sea to the southeast, the Tyrrhenian Sea to the southwest, and the Ligurian Sea to the northwest. Areas of plain cover about one-fifth of the total area of the country; the remainder is filled with hilly, mountainous land, which provides variations in the temperate climated.Throughout it’s history one element that has changed drastically in the role that women play in society. There is more of a prevalence of their participation in various professions, the most popular being the education system. “One aspect of this changed role is that Italy records one of the lowest average numbers of children per woman in the world, as well as some of the lowest birth and fertility rates. The declining number of births was a subject of much concern in the first years of the 21st century, and some towns and villages, particularly in the depopulated rural south, were offering cash premiums and tax incentives for newborns. ”1 Alongside, an equally concerning characteristic of Italy is that one fifth of the population is over the age of 65 as of 2010. With technological advances providing the opportunity for home and wireless entertainment to develop, public, face-toface interactions are still valued. Social media doesn’t necessarily replace but facilitates interaction. ‘Hangouts’, as one may call it, are located at your fingertips: piazzas, bars, cinemas, pizzerias, and discos are all ideal places to gather and socialize.
Family and Social Life Family bonding is experienced through daily activities. The most popular being watching television, listening to the radio, reading newspapers, and going to the cinema; reading books and engaging in sports are less common among the majority of the population. Although most are satisfied with their home life, contradicting feelings are reflected towards the current economic status and their working positions. Within the southern hemisphere of Italy, there are fewer job opportunities resulting in higher unemployment rates.
Religion and Regional Life
In today’s society, religion plays a much smaller role in day-to-day life; however, older generations, especially in rural settlements, tend to be more involved and may attend mass every day. “The majority of religious festivals are Roman Catholic, dedicated to the Madonna or to different saints. The feast of the Epiphany on January 6 exemplifies religious diversification as well as the pagan elements present in some of these celebrations. Traditionally, a witch called the Befana brings gifts to children on this day. However, in Italy’s strong agricultural tradition, it gives rise to a multitude of festivals celebrating the harvest, food, country, and seafaring pursuits. These festivals reflect the 2 traditional activities of the area in which they are held.”
P OL IT ICS
In 1848, the Italian state grew out of the kingdom of Sardinia-Piedmont under the leadership of King Charles Albert. He introduced a constitution that remained the basic law for nearly 100 years under a bicameral parliament. Over time, ministers became responsible to parliament rather than to the king. After World War II, on June 2, 1946, monarchy was replaced with a republic as ruled by popular vote and a new constitution was enforced. The constitution is upheld by the Constitutional Court, which is composed of 15 judges, of whom the president of the republic nominates five, five are elected by parliament, and five are elected by judges from other courts. Members must have certain legal qualifications and experience. The term of office is nine years, and Constitutional Court judges are not eligible for reappointment. The court performs four major functions: I. Judges the constitutionality of state and regional laws and law enforcement abilities II. Resolves jurisdictional conflicts of the central government or between two regions iii. Judges indictments instituted by parliament !v. Determines permission to hold referenda on particular topics
The statement of certain basic principles precedes the constitution: AR T ICLE 1 The definition of Italy as a democratic republic,in which sovereignty belongs to the people AR T ICLE 2 and 3 the inviolable rights of man, the equality of all citizens before the law, and the obligation of the state to abolish social and economic obstacles that limit the freedom and equality of citizens and hinder the full development of individuals AR T ICLE 6 The abolition of husband’s status as head of the household and the legalization of divorce and abortion. AR T ICLE 7 Recognizes the special status granted the Roman Catholic Church by the Lateran Treaty in 1929 AR T ICLE 8 The constitution establishes the liberty of all religions before the law AR T ICLE 15 Many forms of personal freedom are guaranteed by the constitution: the privacy of correspondence AR T ICLE 16 the right to travel at home and abroad AR T ICLE 17 The right to hold public meetings, if these are consistent with security and public safety AR T ICLE 18 The right of association for all purposes that are legal, except in secret or paramilitary societies AR T ICLE 21 No press censorship, and freedom of speech and writing is limited only by standards of public morality AR T ICLE 29 and 30 The equality of spouses in marriage and the equality of their children to each other
ECONOMY
Italy has managed to catapult from being one of the weakest European economies to being one of the most powerful in recent years. Its strengths are in metal, chemical, and engineering industries and weaknesses are a lack of raw materials and energy sources. More than four-fifths of Italy’s energy requirements are imported. To date, textiles constitute one of Italy’s largest industries. Strong entrepreneurial influence and liberal trade policies enabled manufacturing exports to expand at an expediential rate. Business in the north of the country caught up with and overtook many of its western European neighbors/competitors; however, southern Italy continues to lag behind. The percentage of the labor force working in agriculture is an indication of the rate of industrialization and wealth of a nation, and in Italy’s case imbalances exists between north and south. “Against an EU average of 4.7 percent in 2008, 3.6 percent of the Italian population worked on the land, with as many agricultural laborers from the 8 regions in the south as from the 12 regions in the north 3 and center. ” Italy may not be self-sufficient agriculturally, but commodities form an important part of the export market; the country is a world leader in olive oil production and a major exporter of rice, tomatoes, and wine. Cattle raising, however, is less advanced with imported meat and dairy products.
S W Strengths
Weaknesses
Italian exports translates to roughly $8,393 for every person in the country, which compares to a benchmark 2,545 in exports per person for the world
1/5th of the population is over the age of 65
The United States and Italy are North Atlantic Treaty Organization (NATO) allies and cooperate in the United Nations
Due to lack of raw materials, more than 4/5th of Italy’s energy requirements are imported
Italy has similar government regulations in comparison to the United States
Declining number of births have an affect on declining population
O T Opportunities Italy’s economy is dominated by small sized firms, which comprise 99.9% of Italian businesses Italy is the 7th largest economy in the world and the 19th largest market for U.S. exports Strong entrepreneurial influence and liberal trade politics enable manufacturing exports to expand at an expedential rate
Threats Italy’s high debt level is deterring the government Negotiations are conducted slowly The hassle from government regarding termination often prevents employers from hiring even when times are good
CONTR IBUT ING FACT OR S
TRANSP OR TAT ION
Driving licenses issued by any of the EU member states are valid throughout the European Union. Those in possession of a license issued by any EU country do not require an international driving permit or a sworn translation of their own license. The automobile retains a strong hold on daily life. Ownership levels are high; therefore, many cities and towns suffer severe congestion and pollution as a result. Civil Liability insurance is compulsory. For visitors arriving from abroad, the best option is the Green Card, an insurance policy that can even be taken out at the border and is valid for 15, 30 or 45 days.
LABOR
Italy describes themselves as “a democratic republic, founded on labor” according to the first sentence of its constitution. With their foundation beginning to crumble, “Italy’s economy can no longer afford the generous benefits it showered on its workers in the 1960s (when the country grew 5 percent to 6 percent a year). Measures put in place years ago to protect workers aren’t just slowing down the economy now, they’re perversely hurting the very workers they’re meant to protect.” Italy’s unemployment rate was relatively high at 12.4% in 2013, which is a further deterioration from 10.9% in 2012.
How serious is the labor issue
The country has an astounding 2,700 pages of opaque and capricious labor laws. The laws are so unclear that many dismissals of workers end up in the country’s dysfunctional court system, where if a judge decides a worker was let go unfairly, he will likely rule that the employer has to reinstate him with back pay for the time he was gone. The hassle of firing often prevents employers from hiring, even when times are good. Union leaders and employer federations, who set pay scales, benefits packages, and employment conditions for the entire class of workers - from metal mechanics to nannies - negotiate contracts for Italian laborers on a national scale. Workers are guaranteed the same wage wherever they live, regardless of the fact that living in Milan is 10 percent more expensive than Naples.
Negotiating labor contracts at the national level also removes nearly any ability for employers to compromise. The World Economic Forum ranks Italy 123rd out of 142 countries in the efficiency of its labor market. Employers are robbed of their ability to innovate, from experimenting with hours of operations to introducing new forms of wage structures. Meanwhile, national strikes roll around like federal holidays—one every month or so and almost always on a Monday or Friday to guarantee participants a three-day weekend. On average, Italian workers spend almost six times as many hours on strike as their German counterparts. In the past decade productivity has remained flat, even as its neighbors to the north have continued to work more efficiently. Italy’s legislation and industrial relations are responsible for many absurdities. Some employers have offered workers who take early retirement an opportunity to nominate a family member to replace them. Companies and workers often try to get around these laws. Italian companies are famously tiny—some 95 percent of the country’s businesses employ fewer than 10 workers. One reason they stay so small is that at that size they are exempt from the provisions of national union contracts. Another way for a worker or small entrepreneur to avoid becoming entangled in legalities is to opt out of the formal economy altogether. Anywhere from 15 percent to 27 percent of economic activity is underground, where receipts are unheard of, taxes unpaid, and union rules don’t apply. Employers have battled for years with the unions for greater flexibility.
PR ODUCTS
Exports from Italy amounted to US$517.7 billion in 2013, up 27.2% since 2009. Italy’s top 10 exports accounted for 58.7% of the overall value of its global shipments. In regards to Italian economy, exports account for about 28.7% of total output. Given Italy’s population of about 60 million people, the total $517.7 billion in 2013 Italian exports translates to roughly $8,393 for every person in the country, which compares with a benchmark $2,545 in exports per person for the world’s total exports.
ITALYS T OP 10 EXP OR TS The following export product groups represent the highest dollar value in Italian global shipments during 2013 and the percentage share each export category represents in terms of overall exports from Italy.
i. Machinery: $104,077,982,000 (20.1% of total exports) ii. Vehicles excluding trains and streetcars: $37,402,449,000 (7.2%) iii.. Electronic equipment: $29,212,503,000 (5.6%) iv. Mineral fuels including oil: $24,936,355,000 (4.8%) v. Pharmaceutical products: $23,582,149,000 (4.6%) vi. lastics: $20,907,414,000 (4%) vii. Iron or steel products: $20,543,248,000 (4%) viii Pearls, precious stones metals and coins: $15,622,918,000 (3%) ix.. Furniture, lighting, signs & prefabricated buildings: $13,986,910,000 (2.7%) x. Iron and steel: $13,644,399,000 (2.6%)
BUS INESS CL IMATE
“Italy’s economy is fully diversified and dominated by small and medium-sized firms, which comprise 99.9 percent of Italian businesses. Italy is an original member of the 18-nation Eurozone. Germany, France, the United States, Spain, Switzerland, and the United Kingdom are Italy’s most important trading partners, with China gaining ground. Tourism is an important source of external revenue, as are exports of engineering products, mechanical machinery, and textiles/fashion. Italy continues to lag behind many industrialized nations as a recipient of direct foreign investment, and Italy does not have a bilateral investment treaty with the United States. Italy’s affluent domestic market remains attractive to many investors. The government in 2013 remained open to specific foreign sovereign wealth funds to invest in shares of Italian companies and banks and continued to make information available online to prospective investors. The Italian government’s efforts to implement new investment promotion policy that would paint Italy as a desirable direct investment destination were overshadowed in large part by Italy’s ongoing economic weakness, setbacks to reform initiatives, and lack of concrete action on structural reforms that could repair the lengthy and often inconsistent legal and regulatory systems, unpredictable tax structure, and layered bureaucracy. However, Italy’s economy is moving into fragile recovery after its longest recession in recent memory and this could provide 4 political momentum for improvements to Italy’s investment climate. ”
BUS INESS ET IQUETTE TYPE OF CUL TURE
Italians are relationship-oriented. Italians prefer to establish direct relationships, before
“getting down” to business.
MASCUL INE and FEMIN INE ‘In Italy the country’s business etiquette is more of a masculine role at 70% where the 5 women’s involvement is 30% but increasing”.
NEGOT IAT ION STYLES and STRATEGIES
“Negotiations are conducted slowly because Italians tend to carefully evaluate advantages and risks, and because of the hierarchical decision-making process of Italian companies. During the negotiations, you might be contacting and/or providing information to different people with specific roles (technical, financial, market oriented) who have limited decisional authority on the 6 matter being negotiated.” Moreover, they will report to their boss to take a specific decision, thus slowing down the process. Final decisions, due to stiff ranked management structures are centralized and taken by the chairman.
TYPE OF COMMUN ICAT ION
The ability to use the right language and the right gestures when communicating is very important, especially in Italy. Along with face-to- face communication, hand gestures and personal contacts are features of Italian conversations. If you move away or keep your distance, this can be considered unfriendly. Italians are often guided by their feelings and trust is very important in establishing a good business relationship. During a meeting, try not to create a sense of urgency since this can appear rude or a weakness. One should make small talk and display interest in Italian food, art, fashion or sports.
SOCIAL and CUL TURAL ELEMENTS
“In regards to appropriate business attire, dressing formally to make a serious, practical impression. Italians give importance to visual appearances and are accustomed to very high quality 7 clothing and accessories.” Introductions are made through physical contact. A handshake should be firm but not too long between all members of a group in a business meeting. Specific roles have limited decisional authority. Final decisions, due to stiff ranked management structures are centralized and taken by the chairman.
GREET INGS
Handshaking is common on all business and social occasions. “A daily greeting such as “buongiorno” or “buonasera” (i.e. good morning, good evening) is generally expected upon arrival and 8 when entering an office.” Presentation of Business Cards can be exchanged at any time during a meeting. Italian business cards normally contain all important business information including: c also very tactile: upon meeting and leaving, embraces and “kisses” are common between close 9 friends and relatives.” ontact details, business position, education degree and/or professiona
COMMON COUR TESY Businessmen should wear a dark well tailored suit, Italian brand tie, and colored or pattered shirt. Businesswomen should dress elegantly in a dark pant or skirt suit, neutral blouse, and heels. Business gifts are not a common practice in Italy. Company logoed items will be deemed as tacky. Punctuality is not a priority, but as a guest to Italy, you will make a far better impression if you are on time. Italians are typically not easily offended and you can criticize them jokingly A sense of humor may well be appreciated by Italians.
BUS INESS ENTER TA IN ING “Italians do not switch knives and forks. The knife remains in the right hand, and the fork remains in the left. When the meal is finished, the knife and fork are laid parallel to each other across the right side of the plate, with the tines of the fork facing downward. If you put both utensils down on the plate for any real length of time, it is a sign to the wait staff that you are finished, and your plate may be taken away from you. Alternately, if you lay your cutlery down on either side of the plate, it means you haven’t finished.”“Dining etiquette for beginning to eat. Do not begin eating until the host says. “Burn appetito!” “Cocktails are not common in Italy. Drinking without eating is rare. Hard drinking is unusual and not appreciated. Even mild intoxication is considered ill mannered. Women drink very little in Italy.” Good topics of conversation are art and films, sports, current events and opera. Topics to avoid include negative stereotypes about Italians, personal family matters, saying anything bad about the local soccer team and World War II.
TRADE LAWS P OL ICIES and AGREEMENTS
Why have policies 1. 2. 3. 4.
Create a global system for fair and open trade Open up markets with key partner countries Make sure others play by the rules Ensure trade is a force for sustainable development
What is the proper protocol
• Exports to countries outside the EU must submits an export declaration and obtain a current export license from the relevant government organization • Pay custom duties and taxes in the destination country • A commodity code is needed for all exports outside the EU. The code classifies your goods for duty, tax rates, and regulations. • Check if you need a strategic export license for some controlled goods and apply using SPIRE. “ ‘It’s essential that all goods classified in order to identify what duties and controls apply and ensure a correct customs declaration. Whether or not you have an agent who handles customs entries on your behalf, you have a legal responsibility to ensure that the correct classification is applied. Incorrect classification can lead to delays in clearing goods, overpayment of duty, & 10 potential penalties.”
Classify your goods correctly as it will help to ensure • • • • • • •
-pay the correct amount of duty and VAT (if applicable) -know if duty is suspended on any of your goods -know if any preferential duty rates can be applied -know whether you need to obtain an import or export license -know whether excise or anti-dumping duties apply -avoid paying interest on back-payments for incorrect classification -avoid seizure of your goods or delays to their movement
“The Tariff is published as a whole every year is updated monthly and is based on EU legislation It is made up of three volumes: VOLUME i
Contains essential background information for importers and exporters. it covers duty relief schemes, contact addresses for organizations such as the Department for Business Enterprise & Regulatory Reform, the Defra, and the Forestry Commission. It also contains an explanation of excise duty,Tariff quotas and many similar topics
VOLUME ii
Contains a schedule of duty rates and trade statistical descriptions on 16,600 commodity codes
VOLUME iii
Contains a box-by-box completion guide for import and export entries - theSingle Administrative Document (SAD), or form C88, the complete list of Customs Procedure Codes for importing and exporting, the country codes for the world, lists of UK docks and airports both alphabetically and by their Entry Processing Unit numbers, and further general information about 11 importing or exporting�
TRADE PR OT OCOL To find the correct code for your goods, use the General Rules contained in the Tariff. There are six rules, which should be applied in order: i. Covers the main headings under which goods are classed ii.. Covers incomplete or unfinished articles and articles of mixed materials iii. Covers goods, which can be classified under more than one description iv. Covers goods which can’t be classified using the first three rules v. Covers packaging items that come with the goods vi. Covers subheadings under which goods are classed If it’s desired to export goods to a third country, you must submit an electronic export declaration. Many businesses use a freight forwarder to handle these declarations for them. This is done by • • •
-Registering for an Economic Operator Registration Identification number -Registering for the Customs Handling of Import and Export Freight system -Submitting your export declaration through the National Export System
Most goods exported to non EU countries have a zero rate so you must: •-get evidence that the goods have left the EU •-keep a record of the export in VAT account “ iItaly does not charge VAT (value added tax) for services exported outside the EU. All UK businesses must declare any imports or exports to HM Revenue and Customs (HMRC) to ensure that any import VAT, duty, excise, or levies due on them under UK and European law are collected. The way different goods are classified largely determines what duties and controls apply to them. HMRC uses commodity codes found in the UK Integrated.12 Trade Tariff to classify
individual products. Classification of commodities is necessary for imports, exports, declarations, as well as returns.”
RELAT IONS
Following the unification of Italy into one state, The United States established diplomatic relations. In 1941, Italy declared war on the United States, but relations were reestablished in 1944. Today, the United States and Italy enjoy friendly business relations, both being active, strong transatlantic partners. “The two countries have sought to foster democratic ideals and international cooperation, especially in areas of strife and civil conflict. The United States and Italy are North Atlantic Treaty Organization (NATO) allies and cooperate in the United Nations, various regional organizations, and bilaterally for peace, prosperity, and security. Italy has worked closely with the United States and others on such issues as NATO and UN operations, peacekeeping, combating trafficking, and counter-terrorism. Relationship development yielded Italy to host U.S. military forces: Sigonella, Gaeta, and Naples being homeport for the U.S. Navy Sixth Fleet. Also, Italy hosts 13 the NATO Defense College in Rome.” The United States and Italy cooperate closely on not only major economic issues, but also with trade. The United States is one of Italy’s most important trade partners., Italy is bound by EU treaties and laws due to Italy being a member of the European Union (EU). This includes those directly governing or indirectly impacting business investments. Under the EU Treaty’s Right of Establishment and the Friendship, Commerce, and Navigation Treaty with the United States, Italy is generally obliged to provide national treatment to U.S. investors established in Italy or in another EU member state. To prevent double taxation, the two countries have enacted an income tax agreement to prevent double taxation.
BILATERAL REPRESENTAT ION
Italy maintains an embassy in the United States at 3000 Whitehaven Street, NW, Washington, DC 20008. The U.S. Ambassador to Italy is John R. Phillips.
DIPLOMAT IC RELAT IONS
The United States established diplomatic relations with the Kingdom of Italy in 1861 when it accepted the credentials of Chevalier Joseph Bertinatti as Minister Plenipotentiary of the Kingdom of Italy on April 11th Soon to follow, The U.S. established a presence at virtually every seaport because trade, shipping, and seamen protection were all major functions in protecting and enhancing American interests. Prior to the 1861 unification of Italy, the Italian peninsula was fragmented into several kingdoms, duchies, and city-states. As such, since the early nineteenth century, the United States maintained several legations which served the larger Italian states.
T IMEL INE 1831- the U.S. established a legation to the Two Sicilies at Naples 1840- the U.S. established a legation to the Kingdom of Sardinia at Turin 1848- the U.S. established a legation to the Papal States in Rome 1861- Kingdom of Sardinia becomes the legation of the Kingdom of Italy 1865-1871- U.S. Italian legation moves to Florence(1865) and then Rome(1871) 1893- An embassy was established when Ambassador Van Allen was appointed 1894- Wayne MacVeagh became the 1st U.S. Ambassador to Italy 1941- Italy declared war on the U.S. and the American Embassy in Rome closed 1944- Diplomatic relations were reestablished on October 16 1945- Ambassador Alexander C. Kirk re-opened the U.S. Embassy in Rome
Laws of The US That Affect The Importation of Products P OR TS OF ENTRY
Ports of entry conduct the daily, port-specific operations. Port personnel are the face at the border for nearly all cargo carriers and people entering the United States. Ports of entry are the level at which CBP enforces import and export laws and regulations and implements immigration policies and programs. Port officers also perform agricultural inspections to protect the USA from potential carriers of animal and plant pests or diseases that could cause serious damage to America’s crops, livestock, pets, and the environment.
ENTRY PR OCESS
When a shipment reaches the United States, the importer of record (i.e., the owner, purchaser, or licensed customs broker designated by the owner, purchaser, or consignee) will file entry documents. Imported goods are not legally entered until after the shipment has arrived within the port of entry, delivery of the merchandise has been authorized, and estimated duties have been paid. It is the importer of record’s responsibility to arrange for examination and release of the goods. Goods may be entered for consumption, for warehouse at the port of arrival, or transported in-bond to another port of entry and entered there under the same conditions. “Arrangements for transporting the merchandise in-bond to an in-land port may be made by the consignee or by a customs broker or by any other person with an interest in the goods for that purpose. Unless your merchandise arrives directly at the port where you wish to enter it, the carrier may charge 14 you additional fees, unless other arrangements have been made for its transportation.“ The owner, purchaser, or a licensed customs broker is the only individual who is authorized to enter goods. When the goods are consigned “to order,” the bill of landing must be properly endorsed by the consignor, which serves as evidence of the right to make entry. An air way bill may be used for merchandise arriving through air freight. In some cases, entry may be made using a duplicate bill of lading or a shipping receipt. When the goods are not imported by a common carrier, possession of the goods by the importer at the time of arrival shall be deemed sufficient evidence of the right to make entry. Within 15 calendar days of the date that a shipment arrives, entry documents must be filed. These document include: •
• • • •
Entry Manifest and Special Permit for Immediate Delivery -Evidence of right to make entry -Commercial invoice or a pro forma invoice -Packing lists -Other documents necessary to determine merchandise admissibility
‘If the goods are to be released from custody at the time of entry, an entry summary for consumption must be filed and estimated duties paid within 10 working days. If one wishes to postpone release of the goods, they may be placed in a CBP bonded warehouse. The goods may remain in the bonded warehouse up to five years from the date of importation. At any time during that period, warehoused goods may be re-exported without paying duty. While the goods are in the bonded warehouse, they maybe manipulated by cleaning, sorting, repacking, or otherwise changing their condition. Perishable goods, explosive substances, or prohibited importations may not be 15 placed in a bonded warehouse.”
CLASS IFYING THE MERCHANDISE The HTS Numbers are organized into 21 sections and 96 chapters, that include general rules of interpretation and explanatory notes. The system is organized in sections with headings and subheading for each chapter.
Chapter: 64- Footwear, gaiters, and the like; parts of such articles Heading: 6404- Footwear with outer soles of leather or composition leather Subheading: 6404.20- leather Tariff item: 6404.20.60- women
FREIGHT Freight: OCEAN
Type of Box Used: 5 PLY CARDBOARD CARTON- 61X48X28 Number of Case Packs boxes): 48 BOXES (10 CARTONS) Type of Container: STANDARD 20’ X 8’ X 8’6 Space needed in container: 1165 CUBIC FEET Cost to ship the merchandise: $1,742 Shipping timeline: 3-4 WEEKS
02964 Fall 2015
Leather
1.5 yds.
Leather
Collection Rory Ankle Boots
$29
$43.50
1 yd.
$5.00
$5.00
Sole:Leather
2 yds.
$4.00
$8.00 $56.50
Zipper
2
$2.00
$4
$4.00 $0.50 $0.50 $0.50 Top Stitching Thread Labor Sewing
$.0.50 $2.00 $0.25 $2.00
0 0 $0.50 $6.75 $0.10 $0.15 $1.25 $1.25 $2.75 $70.00 $98.00 40% $328.00 70%
5-12
15030 Fall 2015
Viscose/silk
1 yd.
Everly Satin Pumps
$35
$35.00
Leather
.5 yd
$7
$3.50
Sole: Leather
1 yd.
$9.00
$9.00 $47.50
$0.00 $0.50 $0.50 $0.50 Back and sole stitching Thread Labor Sewing
$0.50 $2.00 $0.25 $2.00
0 0 $0.50 $6.75 $0.10 $0.15 $1.25 $1.25 $2.75 $57.00 $79.00 40% $265.00 70%
Women
5-12
Bibliography 1 http://www.britannica.com/EBchecked/topic/297474/Italy/27025/Daily-life-and-social-customs 2 http://www.britannica.com/EBchecked/topic/297474/Italy/27025/Daily-life-and-social-customs 3 http://www.britannica.com/EBchecked/topic/297474/Italy/26980/Emigration-and-immigration 4 http://www.state.gov/e/eb/rls/othr/ics/2014/228875.htm 5 http://www.kpmg.com/US/en/IssuesAndInsights/ArticlesPublications/flash-internationalexecutive-alert/Docu 6 http://businessculture.org/southern-europe/business-culture-in-italy/meeting-etiquettein-italy/ 7 http://businessculture.org/southern-europe/business-culture-in-italy/meeting-etiquettein-italy/ 8 http://www.cloud9living.com/blog/stockings-filled-witch-italian-gift-givingetiquette-101/ 9 http://www.transitionsabroad.com/listings/living/articles/business-etiquette-abroad.shtml 10 http://businessculture.org/southern-europe/business-culture-in-italy/ 11 http://www.ediplomat.com/np/cultural_etiquette/ce_it.htm 12 http://business.uni.edu/buscomm/internationalbuscomm/world/europe/italy/italy_printable.htm 13 http://history.state.gov/countries/italy 14 https://www.gov.uk/classification-of-goods 15 http://www.cbp.gov/sites/default/files/documents/Importing%20into%20the%20U.S.pdf http://www.worldstopexports.com/italys-top-10-exports/2420 http://www.bloomberg.com/bw/magazine/italys-labor-pains-11162011.html http://www.britannica.com/EBchecked/topic/297474/Italy/27025/Daily-life-and-social-customs http://www.italia.it/en/useful-info/rules-to-drive-in-italy.html http://www.tradecommissioner.gc.ca/eng/document.jsp?did=61478&cid=117&oid=34 http://ec.europa.eu/trade/ http://country.alibaba.com/profiles/IT/Italy/market_access.htm https://people.hofstra.edu/geotrans/eng/ch7en/conc7en/map_cost_import_teu.html http://www.austrade.gov.au/Export/Export-Markets/Countries/Italy/Doing-business/Tariffs-andregulations#.VOZ9xfnF98E
w e r C . J
Shanel Wolf and Jordyn Simpson Professor Kiine FASM 410 Global Sourcing and Import Buyi for Fashion