Table of Contents
Calvin Klein Imported Products Thailand Social & Cultural Religion Political Economic Geographic Contributing Factors Labor Inputs Products Transportation Business Climate Effects of Quota Removal Country Analysis Strengths Weaknesses Opportunities Threats Calvin Klein: Code of Conduct Country’s Business Etiquette Type of Culture Masculine or Feminine Negotiation Styles & Strategies Type of Communication Social & Cultural Elements Appropriate Business Attire Introductions Greetings Presentation of Business Cards First Name or Title Gestures Colors, Numbers, & Their Meanings Gift Giving Time Joke Telling Business Entertaining Proper Use of Utensils Table Manners Alcoholic Beverages Appropriate Conversation Subjects
Topics to Avoid Importing Trade Agreements, Laws, & Policies Trade Agreements Specific to the Country in their dealings with the U.S. Laws of the U.S. That Affect the Importation of the products Classifying Imports The Harmonized Tariff Schedule Cost Sheets Shipping Route Ocean Freight Importer’s Documents Power of Attorney Entry Summary GSP Form Detail Sheet Freight Carrier’s Documents Ocean bill of Lading Inland bill of Landing Insurance Certificate Arrival Notice Intermodal Bill of Lading Manufacturer’s Documents Packing List Commercial Invoice Pro Forma Invoice Banking Document Letter of Credit Bibliography
Calvin Klein
Calvin Klein Underwear is one of the world’s leading designer underwear brand for men and women, Calvin Klein Underwear is known across the globe for sexy, cutting-edge products and marketing campaigns, consistently delivering innovative designs with superior fit and quality. Offerings under this label include men’s and women’s underwear, sleepwear and loungewear, which are distributed worldwide.
Imported Products Calvin Klein uses many countries for importing their underwear collections. None of the underwear is made in the U.S. The countries that Calvin Klein imports from are Thailand, Vietnam, China, Indonesia, and Egypt.
Social & Cultural
Thailand is a very diverse place. Its culture "incorporates a great deal of influence from India, China, Cambodia, and the rest of Southeast Asia”. It is influenced primarily by animism, Indian culture and Buddhism. Due to Thailand’s diverse, respectful and kind nature, its citizens are very open minded, accepting, and spiritual on a wide variety of things.
One of the most distinctive Thai customs is the “wai.” Used in greetings, leave-taking, or as an acknowledgement, it comes in many forms, reflecting the relative status of those involved. Generally the salutation involves a prayer-like gesture with the hands and it also includes a slight bow of the head. This salutation is often accompanied by a serene smile symbolizing a welcoming disposition and a pleasant attitude.
Religion
Thailand is nearly 95% Theravada Buddhist. Theravada is a branch of Buddhism that uses the teaching of the PÄ li Canon, a collection of the oldest recorded Buddhist texts, as its doctrinal core, but also includes a rich diversity of traditions and practices that have developed over its long history of interactions with various cultures and communities. Thai Theravada Buddhism is supported and overseen by the government, with monks receiving a number of government benefits, such as free use of the public transportation infrastructure.
Political
Until May 22, 2014 the politics of Thailand were conducted within the framework of a constitutional monarchy, whereby the Prime Minister is the head of government and a hereditary monarch is head of state. The judiciary is independent of the executive and the legislative branches. Thai kingdoms and the late Kingdom of Siam were under absolute rule of the kings. However, after the 'democratic revolution' in 1932, led by westernized bureaucrats and traditional-oriented military, the country officially became under a constitutional monarchy with a prime minister as the head of government.
Economic
Thailand is a newly industrialized country. Its economy is heavily exportdependent, with exports accounting for more than two-thirds of its gross domestic product . In 2012, according to the Office of the National Economic and Social Development Board, Thailand had a GDP of $366 billion. The Thai economy grew by 6.5%, with a headline inflation rate of 3.02% and an account surplus of 0.7% of the country's GDP. The industrial and service sectors are the main sectors in the Thai gross domestic product, with the former accounting for 39.2% of GDP. Thailand's agricultural sector produces 8.4% of GDP – lower than the trade and logistics and communication sectors, which account for 13.4% and 9.8% of GDP respectively. The construction and mining sector adds 4.3% to the country’s gross domestic product. Other service sectors (including the financial, education, hotel and restaurant sectors) account for 24.9% of the country's GDP. The nation is recognized by the World Bank as "one of the great development success stories" in social and development indicators. Despite a low per capita gross national income (GNI) of US$5,210 and ranking 89th in the Human Development Index (HDI), the percentage of people below the national poverty line decreased from 65.26% in 1988 to 13.15% in 2011, according to the NESDB's new poverty baseline. Thailand's unemployment rate is low, reported as 0.9% for the first quarter of 2014. This is due to a large proportion of population working in subsistence agriculture or on other vulnerable employment (own-account work and unpaid family work). Thailand’s local currency is the Thai baht. According to SWIFT, as of October 2014, the Thai baht ranked as the tenth most frequently used world payment currency.
Geographic
Thailand's 514,000 square kilometers lie in the middle of mainland Southeast Asia. The nation's axial position influenced many aspects of Thailand's society and culture—it controls the only land route from Asia to Malaysia and Singapore. The fertile floodplain and tropical monsoon climate, ideally suited to wet-rice cultivation, attracted settlers to this central area over to the marginal uplands and the highlands of the northern region or the Khorat Plateau to the northeast.
Contributing Factors
Labor
According to the World Bank, the total size of the labor force in Thailand was 39.8 million in 2013 which comprises people ages 15 and older. About 49% were employed in agriculture, 37% in the service sector and 14% in industry. In 2005 women constituted 48% of the labor force, and held an increased share of professional jobs. Less than 4% of the total workforce is unionized, but these percentages rise to 11% in industry and 50% in the public sector.
Inputs
Thailand is rich in natural resources. Thailand’s natural resources include: tin, rubber, natural gas, tungsten, tantalum, timber, lead, fish, gypsum, lignite, fluorite, and arable land.
Products
In 2013 Thailand exported $238B, making it the 23rd largest exporter in the world. The top exports of Thailand are computers ($18.2B), delivery trucks ($11.1B), refined petroleum ($10.2B), rubber ($8.47B) and integrated circuits ($8.33B), using the 1992 revision of the Harmonized System classification. Thailand is number 1 in hard drives and frozen shrimp, high in frozen chicken and number 1 in SEAsia in automobiles. Additionally, Thai silk has become popular worldwide.
Transportation
Transport in Thailand is varied and chaotic, with no one dominant means of transport. Bus transport dominates in long distances and Bangkok, with motorbikes dominating in rural areas for short trips, supplanting bicycles. Road transportation is the primary form of freight transport across the country. Slow rail travel has long been a rural long-distance transport mechanism, though plans are underway to expand services with high-speed rail lines extending to several major regions of Thailand. Domestic air transport, which until recently had been dominated by a select few air carriers, has recently seen a surge in popularity due in large part to the expanding services of low cost carriers. In Bangkok, Pattaya, and other large cities, public motorbike taxis take people door to door. An overwhelming number of taxis can also be found in Bangkok. Since the country's first rapid rail transit line opened in 1999 in Bangkok, daily ridership on Bangkok's various transit lines has risen to over 800,000, with multiple additional lines either under construction or being proposed.
Business Climate
A positive regulatory business environment and a welcoming culture clearly sets Thailand apart from its competitors. Despite the May 2014 coup and installation of an interim military-led government, Thailand continues to maintain an open market-oriented economy and encourages foreign direct investment as a means of promoting economic development, employment, and technology transfer. In recent decades, Thailand has been a major destination for foreign direct investment, and hundreds of U.S. companies have successfully invested in Thailand. Thailand continues to welcome investment from all countries and seeks to avoid dependence on any one country as a source of investment.
Effects of Quota Removal With the quota elimination, it will help importers and retailers to lower their administrative costs by sourcing their product or services from specific locations. It will allow manufacturers to access limited markets that they could not before and stay competitive at different sites and control market pressures that would otherwise drive them out of the market and be less competitive on the price of textile and apparel goods.
Country Analysis
Calvin Klein is committed to producing high quality products at attractive prices for its consumers. In their sourcing efforts, Calvin Klein must follow the letter and spirit of all applicable laws and maintain a high standard of business ethics and regard for human rights. Moreover, we must require sound business ethics from contractors, suppliers and licensees. All of the contractors and suppliers and all of our licensees and their contractors and suppliers must observe all applicable laws of their country, including laws relating to employment, child labor, discrimination, the environment, and safety in their industry-related fields. Our contractors, suppliers, and licensees must also comply with applicable United States laws relating to the imports of products, including country of origin labeling, product labeling and fabric and product testing. If local or industry practice exceeds local legal requirements, the higher standard applies. Our Standards of Engagement set forth the standards we expect to be followed by all of our contractors, suppliers, and licensees.
SWOT Strengths
Free Trade Low taxation Good location (deep-sea port) Good infrastructure Manufacture variety of goods High dispersion of productivity across sectors
Weaknesses
Opportunities
Newly developing country Closer ties between nations
Hub of ASEAN
Natural inputs shortage Cheap labor costs The need to improve goods
Threats
Current minimum wages Local production may suffer Local industry over shadowed
Calvin Klein: Code of Conduct
• • •
Through Calvin Klein’s officers and directors, they recognize that it has inherent responsibilities to its stockholders, employees and the general public. These responsibilities go beyond the mere reporting of performance and results and include high standards of corporate ethics and integrity. To ensure these standards, the Company’s Board of Directors has adopted this Code of Business Conduct, which is based on the following general principles of conduct: Maintaining high moral and ethical standards that reflect honesty, integrity and reliability in every situation. Respecting the dignity and rights of all persons, regardless of race, color, or creed, and conducting itself with decency and common courtesy in all its relationships. Properly balancing the interests of all groups (stockholders, employees and the general public) in the conduct of its business. This Code of Business Conduct and Ethics covers a wide range of business practices and procedures. It does not cover every issue that may arise, but it sets out basic principles to guide all employees of the Company. Many of these principles are further detailed in the Associate Handbook provided to all directors, officers and associates, in which the Company’s policies and procedures are set forth. All of our associates, officers and directors must conduct themselves accordingly and seek to avoid even the appearance of improper behavior. This Code should also be provided to and followed by the Company’s agents and representatives, including consultants. If a law conflicts with a policy in this Code, you must comply with the law. If you have any questions about these conflicts, you should ask your supervisor how to handle the situation. Those who violate the standards in this Code will be subject to disciplinary action, up to and including termination of employment. If you are in a situation which you believe may violate or lead to a violation of this Code, please follow the guidelines described in Section 14 of this Code. Compliance with Laws, Rules and Regulations Obeying the law, both in letter and in spirit, is the foundation on which this Company’s ethical standards are built. All associates must respect and obey the laws of the cities, states and countries in which we operate. Although not all employees are expected to know the details of these laws, it is important to know enough to determine when to seek advice from supervisors, managers or other appropriate personnel. If requested, the Company will hold information and training sessions to promote compliance with laws, rules and regulations, including insider-trading laws.
Business Etiquette
Type of Culture
The wai is the common form of greeting and adheres to strict rules of protocol. Raising both hands, palms joined with the fingers pointing upwards as if in prayer, lightly touching the body somewhere between the chest and the forehead, is the standard form. The wai is both a sign of respect as well as a greeting. Respect and courtesy are demonstrated by the height at which the hands are held and how low the head comes down to meet the thumbs of both hands. The wai may be made while sitting, walking, or standing. The person who is junior in age or status is the first one to offer the wai. The senior person returns the wai, generally with their hands raised to somewhere around their chest. If a junior person is standing and wants to wai a senior person who is seated, the junior person will bow their head while making the wai. If there is a great social distance between two people, the wai will not be returned.
Masculine or Feminine According to the Hofstede Centre, Thailand scores 34 on this dimension and is thus considered a Feminine society. Thailand has the lowest Masculinity ranking among the average Asian countries of 53 and the World average of 50. This lower level is indicative of a society with less assertiveness and competitiveness, as compared to one where these values are considered more important and significant. This situation also reinforces more traditional male and female roles within the population.
Negotiation Styles & Strategies
Before initiating business negotiations in Thailand, it is highly advantageous to identify and engage a local representative who can make the initial contact. This person will help bridge the cultural and communications gap, allowing you to conduct business with greater effectiveness. Without such an agent or business partner, even seemingly simple things such as getting items through customs can become very difficult and frustrating. Choose your representation carefully to ensure that they can accomplish what you expect them to do. Conducting negotiations in Thailand with a team of negotiators instead of relying on a single individual may speed up the negotiation process. It is vital that teams be well aligned, with roles clearly assigned to each member. Changing a team member may require the relationship building process to start over and should therefore be avoided. Worst case, such a change can bring negotiations to a complete halt. Leveraging relationships is an important element when negotiating in Thailand. To Thai business people, negotiating is usually a joint problemsolving process. While the buyer is in a superior position, both sides in a business deal own the responsibility to reach agreement. They expect longterm commitments from their business partners and will focus mostly on long-term benefits. The primary negotiation style is cooperative and people may be open to compromising if viewed helpful in order to move the negotiation forward. Maintaining harmonious relationships throughout the process is vitally important. While each party is expected to pursue their best interests, Thais disapprove of competitiveness and strive to find winwin solutions, avoiding confrontation and always leaving a way out for the other. In fact, Thais may prefer compromising even if there is no real need to compromise. However, keep in mind that there are often Chinese cultural influences that can affect negotiation styles.
Types of Communication
Many businesspeople speak English, although not always well. It may be useful to have an interpreter. To avoid offending the other side, ask beforehand whether an interpreter should be present at a meeting. When communicating in English, speak in short, simple sentences and avoid using jargon and slang. It will help people with a limited command of English if you speak slowly, summarize your key points often, and pause frequently to allow for interpretation. Thai people usually speak in quiet, gentle tones. Conversations may include periods of silence, which do not necessarily convey a negative message. Loud and boisterous behavior is perceived as a lack of self-control. People generally converse while standing around three feet apart. Because being friendly and saving face are so important in this culture, communication is generally indirect, though slightly less so than in other Asian countries. Direct confrontation is inappropriate, and it is better to ask open questions instead of closed ones. When responding to a direct question, Thai people may answer ‘yes’ only to signal that they heard what you said, not that they agree with it. You rarely hear a direct ‘no.’ Instead, they may give seemingly ambiguous answers such as ‘I am not sure,’ ‘we will think about it,’ or ‘maybe.’ Each of these could mean ‘no,’ as does a ‘yes’ that sounds hesitant or weak. Alternatively, a respondent may deliberately ignore your question or pretend that he or she does not understand English. It is beneficial to use a similarly indirect approach when dealing with Thais, as they may perceive you as rude and pushy if you are too direct.
Social & Culture Elements
Appropriate Business Attire Business attire is conservative. Men should wear dark colored conservative business suits. Women should wear conservative business suits or dresses. Women need not wear hosiery. Since Thai's judge you on your clothing and accessories, ensure that your shoes are always highly polished.
Introductions Introduce and greet older people first. Thais use handshakes only to greet foreigners. The local greeting is the wai: the hands are held together as if praying, touching your body lightly somewhere between your chest and forehead.
Greetings The wai is the common form of greeting and adheres to strict rules of protocol. Raising both hands, palms joined with the fingers pointing upwards as if in prayer, lightly touching the body somewhere between the chest and the forehead, is the standard form. The wai is both a sign of respect as well as a greeting. Respect and courtesy are demonstrated by the height at which the hands are held and how low the head comes down to meet the thumbs of both hands. The wai may be made while sitting, walking, or standing. The person who is junior in age or status is the first one to offer the wai. The senior person returns the wai, generally with their hands raised to somewhere around their chest. If a junior person is standing and wants to wai a senior person who is seated, the junior person will stoop or bow their head while making the wai. If there is a great social distance between two people, the wai will not be returned.
Presentation of Business Cards Business cards are given out after the initial handshake and greeting. In theory, you should give your card to the most senior person first. . It is advisable to have one side of your business card translated into Thai. Using your right hand, deliver your business card so the Thai side faces the recipient. Look at a business card for a few seconds before placing it on the table or in a business card case. As in most Asian countries, it is polite to make some comment about the card, even if it is only to acknowledge the address.
First Name or Title Ethnic Thai names are traditionally given in the order of first name, family name. Addressing them with Khun plus the first name is perfectly acceptable. Using Mr. /Ms. plus the family name may confuse people who had little exposure to foreign cultures. Some Thais may actually call you Mr. /Ms., followed by your first name. Chinese people usually give their names in the order of family name, first name, where the latter consists of two names, the generational name, and the given name. These two are usually hyphenated but may be spoken (and sometimes written) as one. Some people use assumed western first names, in which case they give theirs in the order of first name followed by family name. Properly pronouncing your
counterparts’ names is very important. Academic and professional titles are highly valued and must be used.
Gestures Gestures are usually subtle. It is advisable to restrict your body language. Non-verbal communication is important, though, and you should carefully watch for others’ small hints, just as they will be watching you. Avoid any physical contact with Thai people except for handshakes. Never touch someone’s head, not even that of a child. Since Thais consider the left hand unclean, use it only if inevitable. Pointing with the index finger or the full hand is considered rude. Instead, gesticulate in the general direction of whatever you are referring to or point with your chin. Eye contact should be very infrequent. Thai people rarely look the other straight in the eye. Restrain your emotions and avoid any facial expressions that may suggest disagreement, such as grimacing or shaking your head. Thai people do not expect foreigners to smile as often as they do. Smiles and laughter do not always indicate amusement or approval. Frequently, they may mask embarrassment, disapproval, and other feelings of distress. Accordingly, Westerners may sometimes observe Thai people smiling or laughing at what they might consider inappropriate moments.
Colors, Numbers, and Their Meanings In Thai traditions, there is an astrological rule, which has influence from Hindu mythology that assigns color for each day of the week. The color is assigned based on the color of the God who protects the day or Navagraha. The colors of Thai people are set out as follows: Day
Color of the Day
Unlucky Color
Celestial Body
God of the Day
Sunday
Red
Blue
Sun
Surya
Monday
Yellow
Red
Moon
Chandra
Tuesday
Pink
Yellow & White
Mars
Mangala
Wednesday (day)
Green
Pink
Mercury
Budha
Wednesday (night)
Grey
Orange-red
None
Rahu
Thursday
Orange
Purple
Jupiter
Brihaspati
Friday
Light Blue
Black & Dark Blue
Venus
Shukra
Saturday
Purple
Green
Saturn
Shani
Each color will normally be worn by the people on the specific days, particularly in the governmental office scenario. Although in modern Thailand this is not as strict as it was, it is still important to remember two particular colors about Thai culture. These are the colors of the birthdays for the King and Queen of Thailand. This is connected with the Buddhist Thai calendar and as the country loves the royal family here, they are keen to show this through the wearing of their Birthday colors. Hence, the wearing of yellow for the King and blue for the Queen are the most commonly honored across Thailand for this color system and Thai people love it when they see visitors wearing the special royal yellow or blue shirts.
Gift Giving If invited to a Thai's home, a gift is not expected, although it will be appreciated. Gifts should be wrapped attractively, since appearance matters. Bows and ribbons add to the sense of festivity. Appropriate gifts are flowers, good quality chocolates or fruit. Do not give marigolds or carnations, as they are associated with funerals. Try to avoid wrapping a gift in green, black or blue as these are used at funerals and in mourning. Gold and yellow are considered royal colors, so they make good wrapping paper. Only use red
wrapping paper if giving a gift to a Chinese Thai. Gifts are not opened when received. Money is the usual gift for weddings and ordination parties.
Time If possible, schedule meetings at least four weeks in advance. Since people want to know whom they will be meeting, provide details on titles, positions, and responsibilities of attendees ahead of time. While meetings may start considerably late, Thai’s generally expect foreign visitors to be punctual. In Bangkok with its often-chaotic traffic and resulting considerable delays, allow plenty of time to get to an appointment. Avoid being more than 10 to 15 minutes late. Displaying anger if you have to wait, which happens often, reflects very poorly on you.
Joke Telling Telling jokes in informal situations is acceptable, but don’t do that when you are in a group instead of just with an individual. Moreover, be aware that cross-cultural jokes are hard to understand because the point of a joke is different and might be lost in translation.
Business Entertaining
Proper Use of Utensils A fork and spoon are the usual eating utensils. However, noodles are often eaten with chopsticks. The spoon is held in the right hand and the fork in the left. The fork is used to guide food onto the spoon. Sticky rice, a northern Thai delicacy, is often eaten with the fingers of the right hand.
Table Manners Most meals are served as buffets or with serving platters in the center of the table family-style. You may begin eating as soon as you are served. Leave a little food on your plate after you have eaten to show that you are full. Finishing everything indicates that you are still hungry. Never leave rice on your plate as it is considered wasteful. The words for food and rice are the same. Rice has an almost mystical significance in addition to its humdrum 'daily bread' function. Never take the last bite from the serving bowl. Wait to be asked before taking a second helping. Do not lick your fingers.
Alcoholic Beverages Dining and entertainment after work with your guest is important and it will help you to relax the host and build a relationship with your partner. The guest of honor is allowed to make the first toast. If you do not drink, you will still accept the toast although refusing to drink is impolite. The bill will be paid by the host who invited their counterpart, general alcohol beverages are beer, wine, liquor, and champagne.
Appropriate Conversation Subjects Maintain a good conversation with your counterpart with four elements. Think deeply before you speak it out, pay attention to the person’s facial
movement that you are interacting with, be a good listener and do not interrupt his or her sentences, and lastly, make eye contact during the conversation. Do not talk too much because they might think you are taking over the conversation. Keep the subject universal, such as music, performance, news events, technology, hobby and travel.
Topics to Avoid Try to avoid topics, which lead you to a disagreement or offensiveness such as politics, money, religion, health, relationships, ages, as well as gossip, racial, sexual topics or social problems.
Importing Trade Agreements, Laws, & Policies
Trade Agreements specific to the country in their dealings with the US The US and Thailand started negotiations on a comprehensive bilateral free trade agreement in June 2004. Like other recent bilateral free trade agreements with the US, the US-Thailand FTA will cover investment, services, government procurement, intellectual property, as well as agriculture. Many expect it to be modeled on the US-Singapore FTA. The negotiations have attracted strong opposition and concern among many Thai social movements, farmers to people with HIV/AIDS. A broad civil society coalition, FTA Watch, was formed at the outset to closely monitor the process from a public interest perspective. (Likewise, business interests set up their own US-Thai FTA Coalition.) Under the banner of "sovereignty not for sale!�, key issues of popular concern include access to medicine, GMOs in agriculture and patents on life. The last round of talks took place in Chiang Mai in January 2006 with 10,000 people protesting in the streets and disrupting the meeting. Negotiations have not resumed since. Thailand is an important trading partner and ally of the United States, with the treaty basis to the relationship dating back to the establishment of diplomatic ties in 1833 through the original Treaty of Amity and Commerce.
Under a Trade and Investment Framework Agreement (TIFA) signed in 2002, U.S. and Thai officials engage on trade and investment issues such as intellectual property rights, customs issues, the WTO Doha negotiations, our APEC and ASEAN agendas, and Thailand’s interest in the Trans-Pacific Partnership Agreement (TPP). The United States and Thailand launched Free Trade Agreement negotiations in 2004 but suspended them in 2006 following the dissolution of the Thai Parliament and the subsequent militaryled coup.
Laws of the US that affect the importation of the products Entry of Goods - Process When a shipment reaches the US, the importer of record (i.e., the owner, purchaser, or licensed customs broker designated by the owner, purchaser, or consignee) will file entry documents for the goods with the port director at the goods’ port of entry. Imported goods are not legally entered until after the shipment has arrived within the port of entry, delivery of the merchandise has been authorized by CBP, and estimated duties have been paid. It is the importer of record’s responsibility to arrange for examination and release of the goods. Pursuant to 19 U.S.C. 1484, the importer of record must use reasonable care in making entry. Entry Documents Within 15 calendar days of the date that a shipment arrives at a U.S. port of entry, entry documents must be filed at a location specified by the port director. These documents are: ● Entry Manifest (CBP Form 7533) or Application and Special Permit for Immediate Delivery (CBP Form 3461) or other form of merchandise release required by the port director, ● Evidence of right to make entry, ● Commercial invoice or a pro forma invoice when the commercial invoice cannot be produced, ● Packing lists, if appropriate, ● Other documents necessary to determine merchandise admissibility.
If the goods are to be released from CBP custody at the time of entry, an entry summary for consumption must be filed and estimated duties deposited at the port of entry within 10 working days of the goods' entry. Invoices A commercial invoice, signed by the seller or shipper, or his agent, is acceptable for CBP purposes if it is prepared in accordance with Section 141.86 through 141.89 of the CBP Regulations, and in the manner customary for a commercial transaction involving goods of the kind covered by the invoice. Importers and brokers participating in the Automated Broker Interface may elect to transmit invoice data via the Automated Invoice Interface or EDIFACT and eliminate the paper document. The invoice must provide the following information, as required by the Tariff Act: The port of entry to which the merchandise is destined, ● If merchandise is sold or agreed to be sold, the time, place, and names of buyer and seller; is consigned, the time and origin of shipment, and names of shipper and receiver, ● A detailed description of the merchandise, including the name by which each item is known, the grade or quality, and the marks, numbers, and symbols under which it is sold by the seller or manufacturer to the trade in the country of exportation, together with the marks and numbers of the packages in which the merchandise is packed, ● The quantities in weights or measures, ● If sold or agreed to be sold, the purchase price of each item in the currency of the sale, ● If the merchandise if shipped or consignment, the value of each item in the currency in which the transactions are usually made, or, in the absence of such value, the price in such currency that the manufacturer, seller, shipper, or owner would have received, or was willing to receive, for such merchandise if sold in the ordinary course of trade and in the usual wholesale quantities in the country of exportation, ● The kind of currency, All charges upon the merchandise, itemized by name and amount including freight, insurance, commission, cases, containers, coverings, and cost of packing; and, if not included above, all charges, costs,
and expenses incurred in bringing the merchandise from alongside the carrier at the port of exportation in the country of exportation and placing it alongside the carrier at the first US port of entry. The cost of packing, cases, containers, and inland freight to the port of exportation need not be itemized by amount if included in the invoice price and so identified. Where the required information does not appear on the invoice as originally prepared, it shall be shown on an attachment to the invoice, ● All rebates, drawbacks, and bounties, separately itemized, allowed upon the exportation of the merchandise, ● The country of origin, ● All goods or services furnished for the production of the merchandise not included in the invoice price. Assessment of Duties All goods imported into the US are subject to a duty or duty free entry that is in accordance to the Harmonized Tariff Schedule of the US Roles of Origins Commercial shipments from designated beneficiary countries that require formal entry may make a claim for preferential tariff treatment under ATPA/ATPDEA by entering the letter “J” on CBP Form 7501 (the entry summary) as a prefix to the appropriate tariff schedule number. Classification and Value Section 637 of the Customs Modernization Act imposes the requirement that importers exercise reasonable care when classifying and appraising merchandise.
Classifying Imports
The Harmonized Tariff Schedule The Harmonized System (HS) is an international goods nomenclature consisting of General Rules of Interpretation (GRI's), Section and Chapter legal notes, and the 4-digit Heading and 6-digit Subheading numerical codes. U.S. import duty rates and making trade agreements with trading partners worldwide that can confer preferential import rates. Numbers are organized by chapters, beginning with 01 (live animals and animal products) and ending at 97 (works of art, collectors' pieces, and antiques). The United States and certain other countries also use chapters 98 and 99 to cover special categories of products, such as goods temporarily imported for repair or alteration (United States), donations of clothing and books for charitable purposes (Canada), and household and other goods imported by someone resuming residence in the country (New Zealand). Under each chapter is a heading and then a subheading that further describes the product. HTS numbers for various products break down in the order out lined below: Chapter = first 2 digits Heading = first 4 digits Subheading = first 6 digits Tariff item = up to 10 digits total The breakdown of our product is Chapter: 61 Heading: 6108 Subheading: 6108.99 Tariff item: 6108.99.5013
Cost Sheet
Cost Sheet
Shipping Route
Ocean Freight Type of box used – Cardboard carton (single wall corrugated) Number of Case Packs (boxes): 88 boxes Type of container: Dry cargo container Space needed in container: 1755 Cubic feet (39’x6x6’) Cost to ship the merchandise: Thailand to New York $3644.05-$4027.64 plus duty of 32.82.
Shipping: It will take 32 days and 14 hours for the merchandise to reach the New York terminal from the Bangkok terminal because the freight is traveling through the Suez Canal. This distance is 20281.63km terminal. Once it reaches the terminal in New York, we will have the products driven by truck to the Calvin Klein headquarters in New York City, New York. It will take an extra four days for the 88 boxes to reach its destination due to regulations and customs.
Importer’s Documents
Power of Attorney
Entry Summary
GSP Form
Detail Sheets
Freight Carrier’s Documents
Ocean Bill of Lading
Inland Bill of Lading
Insurance Certificate
Arrival Notice
Intermodal Bill of Lading
Manufacturers Documents
Packing List
Commercial Invoice
Pro Forma Invoice
Banking Document
Letter of Credit
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