Conditions of import of wine and re-export of beer

The Government has issued Directive 23/CT-TTg on the enhancement of State management of the business of temporary import for re-export, transit, and bonded warehouse.

 

Under the Directive, traders must operate in goods export and import, or temporary import for re-export of goods, for at least two years from the date of establishment to be eligible for doing business of temporary import for re-export and transit of goods having the special consumption tax rate such as wine, beer, cigarettes and cigars.

Besides, the Prime Minister also announced some regulations on the business of temporary import for re-export and transit of goods subject to special excise duty (wine, beer, cigarettes and cigars) and goods temporarily imported for re-export under the licenses issued by the Ministry of Industry and Trade. 

Specifically, traders doing temporary import for re-export and transit of goods must notify the delivery plan and the details related to the consignments temporarily imported for re-export or transited to the licensing agencies, customs, and port authorities at least seven days before the goods arrive at Vietnam’s port; the trader must leave a deposit of at least VND5 billion for environmental treatment and destruction of dead stock, of goods imported inconsistently with the declaration that must be destroyed.

Under this Directive, the goods must not stay in Vietnam more than 45 days. This period can only be extended once, and the extension can not exceed 15 days. After this period, the trader must export the goods from Vietnam within 15 days through the border-gate of temporary import.

What is an Import Export business

Import export businesses, also known as international trading, are one of the hottest commercial trends of this decade. American companies trade in over 2.5 trillion dollars a year in merchandise, of which small businesses control over 95 percent. As the owner of an import export enterprise, you can work as a distributor by focusing on exporting and importing goods and services that cannot be obtained on national soil (e.g., Russian caviar and French perfumes) or those that are cheaper when imported from other countries (e.g., Chinese electronics). In addition, you can also open an export management company (EMC), where you can help an existing corporation market its products in a foreign country by arranging the shipping and storing of the merchandise for them without doing the actual selling. EMCs can specialize in one industry or work with different types of import export manufacturers. It is also possible to act as a broker for a company, working on commission over the actual sales. This is a great choice for products that are guaranteed to sell because of high demand or an established brand name.

While basically any country can offer opportunities for import export trade, Canada, Mexico, Japan, and China have topped the trading chart for the past two decades. In the last few years, countries in the former Soviet Union and South America have become major players, but there's still much to learn about trading with these new markets. 

Opening an import export business requires an initial investment of $5,000 or more, depending not only on the type of merchandise you're setting up to market, but also on whether you plan on working from home or renting an office, hiring employees, etc. Compared to other businesses, however, import export companies have a very low startup cost. While most products can be exported without the need for licenses, some specialty products or high-risk items, such as firearms or pharmaceuticals, may require special government permits. If that's the case, costs may run considerably higher.

To get started, it may be sensible to consult with the local Board of Trade (or the Chamber of Commerce in smaller cities) or call Consulates and Embassies to find out if they have import export programs set up. Many embassies even have a special department to promote the export of their goods to other countries and are more than happy to help potential import export traders. 

China Export Growth Slides as World Recovery Slows

China’s export growth collapsed and imports and new yuan loans trailed estimates in July, adding to signs the global economy is weakening and raising the odds the government will step up measures to support expansion.

Outbound shipments increased 1 percent from a year earlier, the customs bureau said today in Beijing, after an 11.3 percent rise in June. New local-currency lending was 540.1 billion yuan ($85 billion), the central bank said, lower than all 30 estimates in a Bloomberg News survey, compared with 919.8 billion yuan in June.

Stocks slid as the data boosted evidence that China’s interest-rate cuts and accelerated approval of investment projects have yet to propel growth, after a report yesterday showed industrial output rose the least since 2009. The slowdown intensifies risks of a seventh quarter of deceleration in the world’s second-largest economy.

“Monetary policy easing has to be more aggressive in the remainder of the year,” said Liu Li-Gang, Hong Kong-based head of Greater China economics at Australia & New Zealand Banking Group Ltd. He said there’s a risk of a “hard landing” and the government may lower banks’ reserve requirements as soon as today.

The MSCI All-Country World Index (SHCOMP) of global stocks fell 0.3 percent as of 11:02 a.m. in London. China’s Shanghai Composite Index dropped 0.2 percent, the first decline in six days.

Separate reports showed industrial output growth unexpectedly slowed last month to 9.2 percent from a year earlier and retail sales rose 13.1 percent, trailing analysts’ forecasts.

Money Supply

New yuan lending in July compared with the median estimate of 700 billion yuan in a Bloomberg survey. It was the lowest monthly figure since September 2011. Growth in M2, the broadest measure of money supply, was 13.9 percent last month, compared with the median forecast for a 13.8 percent gain.

The growth in July exports compared with the 8 percent median estimate in a Bloomberg News survey. Imports rose 4.7 percent, versus the survey estimate for 7 percent and a 6.3 percent increase in June.

The trade surplus was $25.1 billion in July compared with $31.5 billion a year earlier. The median projection was $35.1 billion.

Excluding distortions caused by the timing of the Lunar New Year holiday, it was the worst export growth since 2009. The figures put China further at risk of missing its 10 percent goal of trade expansion for the year. China is still “confident” of achieving the target, Gao Hucheng, a vice commerce minister, said at a briefing today.

EU Sales

China’s sales to European Union countries fell 16.2 percent last month and growth in U.S. exports slowed to 0.6 percent from 10.6 percent in June, customs data showed.

The odds the government will “greatly step up” policy easing or stimulus are “surely on the rise,” Lu Ting, head of Greater China economics at Bank of America Corp. in Hong Kong, said in a note today. The central bank may cut banks’ reserve requirements “soon” and another interest-rate reduction is “in the pipeline,” Lu said, after two so far this year.

Barclays Plc yesterday cut its estimate for third-quarter growth to 7.7 percent from 8.2 percent while Deutsche Bank AG lowered its forecast to 7.5 percent from 7.9 percent.

China’s central bank halted gains in the yuan in the first half of the year, providing some help to exporters amid deteriorating global demand. The currency has fallen 1 percent against the U.S. dollar this year.

The yuan was little changed against the dollar today at 6.3600, according to the China Foreign Exchange Trade System.

Clothing Supplier

Li & Fung Ltd., the world’s largest supplier of clothes and toys to retailers, plunged in Hong Kong trading by the most since listing in 1992 after slowdowns in the U.S. and Europe caused a slump in first-half operating profit. The company, whose customers include Wal-Mart Stores Inc. and Target Corp., sells goods that are made in China.

Separately today, the Ministry of Finance said fiscal spending rose 37 percent in July from a year earlier, while fiscal revenue rose 8.2 percent.

Elsewhere in the Asia-Pacific region, Singapore said its economy shrank an annualized 0.7 percent last quarter, less than the preliminary reading of a 1.1 percent contraction. Hong Kong said gross domestic product expanded 1.1 percent in the second quarter from a year earlier, compared with the median estimate for a 1.2 percent rise.

German inflation unexpectedly slowed in July to 1.9 percent from 2 percent in June. French industrial production stagnated in June, the latest sign that the euro area’s second-largest economy may be heading for its first recession in three years.

Russian Rates

The Russian central bank refrained from raising borrowing costs for an eighth month, highlighting “significant” inflation risks from a weaker harvest and higher interbank rates that constrain lending growth.

Brazil’s unemployment rate probably fell to 5.7 percent in June, the third monthly decline, based on the median estimate of 35 economists. Canada’s jobless rate may have been unchanged at 7.2 percent in July.

Exports present the biggest uncertainty to China’s outlook, Song Guoqing, an adviser to the People’s Bank of China, said last month. He estimated economic growth may slow to 7.4 percent this quarter.

In its second-quarter monetary policy report released Aug. 2, the central bank said the “primary risk for the global economy is still the European debt crisis,” and that the possibility of Europe “triggering a double dip in the global economy can’t be ruled out.”

What Does an Export Agent Do?

An export agent is a person who acts as a middleman between a company that has a product it wants to export and a foreign company that would like to import that product. He helps set up the transaction and make sure that everything goes smoothly, which often includes the shipment of the product. In exchange for his help with these transactions, he usually receives a commission. This can translate into a significant amount of money when a person is working with multiple companies or even a single company that has many products to export.

There are many types of products an export agent may handle. For example, he may deal in the exportation of everything from light bulbs to furnishings. Some people in this field help companies export a wide range of products while others may specialize in a single type of product. The choice is usually up to the agent, with one exception. If exporting a particular product is prohibited by law, he cannot legally help to arrange its exportation.

An export agent also has some choices in how involved he is in the export process. For example, some are minimally involved. They match buyers with sellers and help to make sure the sale is complete. Then, they collect their commission. Others, on the other hand, handle not only the the transaction, but also the shipping of the product from one country to another. In many cases, this involves arranging freight with a company that handles overseas shipments.

Often, export agents spend a significant amount of time performing research. This may involve finding new markets in need of products and companies capable of producing large quantities of in-demand items. Many join trade organizations and export associations to stay abreast of the business, network, and get leads. Additionally, an export agent may spend a significant amount of time studying export laws and creating contracts and invoices for his clients.

To become an export agent, a person may train himself by reading books about the business; some may take courses or go to work for established exporters in order to gain experience. In most cases, a person who wants to start this business also needs business licensing. He usually needs an office or at least a space to work and keep records as well. This doesn’t have to be a commercial space, however. Many export agents work from home.

Customs Procedure for Export

In India custom clearance is a complex and time taking procedure that every export face in his export business. Physical control is still the basis of custom clearance in India where each consignment is manually examined in order to impose various types of export duties. High import tariffs and multiplicity of exemptions and export promotion schemes also contribute in complicating the documentation and procedures. So, a proper knowledge of the custom rules and regulation becomes important for the exporter. For clearance of export goods, the exporter or export agent has to undertake the following formalities:

Registration

Any exporter who wants to export his good need to obtain PAN based Business Identification Number (BIN) from the Directorate General of Foreign Trade prior to filing of shipping bill for clearance of export goods. The exporters must also register themselves to the authorised foreign exchange dealer code and open a current account in the designated bank for credit of any drawback incentive.
Registration in the case of export under export promotion schemes:
All the exporters intending to export under the export promotion scheme need to get their licences / DEEC book etc.

Processing of Shipping Bill - Non-EDI:

In case of Non-EDI, the shipping bills or bills of export are required to be filled in the format as prescribed in the Shipping Bill and Bill of Export (Form) regulations, 1991. An exporter need to apply different forms of shipping bill/ bill of export for export of duty free goods, export of dutiable goods and export under drawback etc.

Processing of Shipping Bill - EDI:

Under EDI System, declarations in prescribed format are to be filed through the Service Centers of Customs. A checklist is generated for verification of data by the exporter/CHA. After verification, the data is submitted to the System by the Service Center operator and the System generates a Shipping Bill Number, which is endorsed on the printed checklist and returned to the exporter/CHA. For export items which are subject to export cess, the TR-6 challans for cess is printed and given by the Service Center to the exporter/CHA immediately after submission of shipping bill. The cess can be paid on the strength of the challan at the designated bank. No copy of shipping bill is made available to exporter/CHA at this stage.
Quota Allocation

The quota allocation label is required to be pasted on the export invoice. The allocation number of AEPC (Apparel Export Promotion Council) is to be entered in the system at the time of shipping bill entry. The quota certification of export invoice needs to be submitted to Customs along-with other original documents at the time of examination of the export cargo. For determining the validity date of the quota, the relevant date needs to be the date on which the full consignment is presented to the Customs for examination and duly recorded in the Computer System.

Arrival of Goods at Docks:

On the basis of examination and inspection goods are allowed enter into the Dock. At this stage the port authorities check the quantity of the goods with the documents.

System Appraisal of Shipping Bills:

In most of the cases, a Shipping Bill is processed by the system on the basis of declarations made by the exporters without any human intervention. Sometimes the Shipping Bill is also processed on screen by the Customs Officer.

Customs Examination of Export Cargo:

Customs Officer may verify the quantity of the goods actually received and enter into the system and thereafter mark the Electronic Shipping Bill and also hand over all original documents to the Dock Appraiser of the Dock who many assign a Customs Officer for the examination and intimate the officers’ name and the packages to be examined, if any, on the check list and return it to the exporter or his agent.

The Customs Officer may inspect/examine the shipment along with the Dock Appraiser. The Customs Officer enters the examination report in the system. He then marks the Electronic Bill along with all original documents and check list to the Dock Appraiser. If the Dock Appraiser is satisfied that the particulars entered in the system conform to the description given in the original documents and as seen in the physical examination, he may proceed to allow "let export" for the shipment and inform the exporter or his agent.
Stuffing / Loading of Goods in Containers

The exporter or export agent hand over the exporter’s copy of the shipping bill signed by the Appraiser “Let Export" to the steamer agent. The agent then approaches the proper officer for allowing the shipment. The Customs Preventive Officer supervising the loading of container and general cargo in to the vessel may give "Shipped on Board" approval on the exporter’s copy of the shipping bill.

Drawal of Samples:

Where the Appraiser Dock (export) orders for samples to be drawn and tested, the Customs Officer may proceed to draw two samples from the consignment and enter the particulars thereof along with details of the testing agency in the ICES/E system. There is no separate register for recording dates of samples drawn. Three copies of the test memo are prepared by the Customs Officer and are signed by the Customs Officer and Appraising Officer on behalf of Customs and the exporter or his agent. The disposal of the three copies of the test memo is as follows:-

• Original – to be sent along with the sample to the test agency.
• Duplicate – Customs copy to be retained with the 2^nd sample.
• Triplicate – Exporter’s copy.

The Assistant Commissioner/Deputy Commissioner if he considers necessary, may also order for sample to be drawn for purpose other than testing such as visual inspection and verification of description, market value inquiry, etc.

Amendments:

Any correction/amendments in the check list generated after filing of declaration can be made at the service center, if the documents have not yet been submitted in the system and the shipping bill number has not been generated. In situations, where corrections are required to be made after the generation of the shipping bill number or after the goods have been brought into the Export Dock, amendments is carried out in the following manners.

1. The goods have not yet been allowed "let export" amendments may be permitted by the Assistant Commissioner (Exports).
2.  Where the "Let Export" order has already been given, amendments may be permitted only by the Additional/Joint Commissioner, Custom House, in charge of export section.

In both the cases, after the permission for amendments has been granted, the Assistant Commissioner / Deputy Commissioner (Export) may approve the amendments on the system on behalf of the Additional /Joint Commissioner. Where the print out of the Shipping Bill has already been generated, the exporter may first surrender all copies of the shipping bill to the Dock Appraiser for cancellation before amendment is approved on the system.


Export of Goods under Claim for Drawback:

After actual export of the goods, the Drawback claim is processed through EDI system by the officers of Drawback Branch on first come first served basis without feeling any separate form.

Generation of Shipping Bills:

The Shipping Bill is generated by the system in two copies- one as Custom copy and one as exporter copy. Both the copies are then signed by the Custom officer and the Custom House Agent.

4 Reasons Why Your Small Business Should Never Use Wordpress Groupon

I’ll confess, I’ve never been a fan of Wordpress Groupon and I’ve never bought one daily deal from their service.  I do think it is an interesting business idea and four years ago I realized that the word coupon was being searched for more than sex and can see why the creators of Groupon launched the service.

In theory it is a great idea, have a central hub in which you can offer products and services to local business for a discounted rate.

Except its not working.  Groupons stock has taken an 82% nose dive since it went public and its rival "Living Social" is doing no better.

Investors are trying to get out as fast as they can ad its proven to be a poor business model and a bad idea for small business owners.

I would never, ever, ever, ever, ever, ever, ever, ever consult a small business to invest in a Groupon deal and here are four reasons why.

1.  Its expensive.

Groupon sells the offer and keeps 50% of the profits while the business owner is left holding the bag and having to deliver the services.

Just ask the owner of a restaurant in Portland Oregon as he says it was the worst business decision he ever made.  It cost him $8000 and his restaurant was flooded with customers, stressed out his staff, received poor service and will probably never return ever again.  And, according to the New York Times, Muddy’s Coffee House – which serves coffee and granola – had to take out a loan to cover its Groupon losses otherwise it would have went out of business.  Another bakery in UK had to take out a loan to cover the cost of the extra workers she had to hire to make the 102 000 cup cakes that were required to fulfill the Groupon offer.  She too says it was the the “worst business decision she has ever made” as she lost 12 000 pounds ($20 000 US) on the deal. 

According to a survey done last year by Business Insider, more than 50% of Groupon’s Small business Customers said that they would never use the service ever again nor would they recommend using it to other small business owners.

I consulted with the owner of a local cleaning company who used Groupon and Daily Deal and other such services and nearly lost his shirt and had to cancel a lot of the deals as he lost a lot of money in trying to fulfill the amount of individuals that were looking for cheap cleaning services.

2. You Get One Time Customers

A lot of the customers who buy Groupon offers never return.  They simply come in for the discounted offer never to visit the establishment again. Again, this is what happened with the local cleaning company.  A lot of the people who took him up on his Groupon offer were simply wanting one time cleaning services for a cheap price and were not interested in becoming long term customers. As Eric V. Holtzclaw shares on Inc.com; “the Groupon customer will not return just to “get a deal” or “because of a deal.”   You will regain their loyalty by delivering a great product and or service”. According to a Rice University study done by Dr. Utpal M. Dholakia, an Associate Professor at the Jones Graduating School of Business, Rice University, found that just 36% of customers buy goods or services beyond what was offered in the deal. Worse, less than 20% return to the business for full-price purchases.

3.  Its a Poor Return on Investment (ROI)

I hope you can see by now that not only is Groupon a poor choice to use for your business but it will also offer a poor return on investment as you will end up losing money and not making money.  No matter what marketing campaign you implement for your small business you need to make sure that you are going to get a positive return on investment.  That is that the advertising dollars should make you money and not cost you money.  I myself would not spend $1 on advertising if it was not going to make me more than $1 coming back and believe it or not there are marketing strategies which can do this for you. 

4.  Groupon Ends Up With The List

There is a saying you may not have heard but should know if you are in business and that is, the money is in the list.  The basis of any business should be to build a list of customers that you can continue to market to on an ongoing basis.  This is how a business can continue to thrive and make profits on an on going basis.  Most business owners think that the only way to acquire new business or increase profits is by acquiring new customers rather than marketing to the ones they already have but the problem with most small business’ is that they don’t keep a record of the customers that they already have.  And in this instance the list of customers goes to Groupon first rather than the small business owner (if they even get a list of customers at all)

I could probably come up with a plethora of other reasons why you shouldn’t use Groupon to market your small business but I don’t want to be seen as Groupon bashing.  Sure the service is great for the company but I hope you can see it is bad for your small business.

There are plethora of other effective and low cost ways in which you can market your small business. I happen to be a Hidden Marketing Assets Consultant which is a system based on the teachings of legendary marketer Jay Abraham and has a 100% guarantee of increasing the sales of your business. 

How to Exit Your Export Business

If you’ve decided to exit your export business, or cease exporting your products, be sure to:

1. Close Your Export Account

If you decide that you’ll no longer be selling your goods abroad, you should contact Canada Revenue Agency to close your export account.

2. Review Your Contractual Obligations to Your Customers

Make sure you do not have any outstanding obligations to your customers, and that you have received final payment for your last shipment. If you have questions about your contracts, you should have a lawyer review them.

3. Understand the Legalities of Closing Your Business

If you’re exiting your business altogether, whether by selling your business, passing it on to your family or others, or through dissolution or bankruptcy, it’s important to consider the legalities of relinquishing ownership.