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This report discusses about the import and export operations related to the Haitian Mangoes from Haiti to the US

Home, - Haitian Mangoes to the US

 

Introduction

Today, with increased globalization, majority of the companies are looking for trade expansion in other parts of the world. It can be achieved through performing the import and export operations in a given environment. However, the organization that is planning for exporting the products needs to first determine the demand of the products and carry out needs analysis in the exporting nation (McKenzie, 2013). For this purpose, they can even conduct SWOT analysis so that it will help them determine their strengths, weaknesses, opportunities, and threats in a given operational environment. They can later focus on the product and prepare the strategies for exporting the product in the new foreign location. They, however, need to determine the transportation and logistics costs, distribution costs, shipment costs, and warehousing costs as well. Further, they need to follow the norms of both the domestic and international nations to adhere to the rules and regulations of these operations (McKenzie, 2013). This report will focus on exporting Haitian mangoes to the United States. It will include different details on the export regulations, method of transportation and the costs associated with it, expert declaration details, other required documentation, distribution channels, risk management, funding for each of these operations, packaging and labelling, advertising and promotions, and finally will provide a roadmap on how to sell these products to the end customer in the US. Harmonized Commodity Description and Coding System Classification The Harmonized Commodity Description for the mangoes is Fresh Fruits and as per the Coding System Classification, the code for this product is 080450. It is also found that, majority of the mangoes are imported from Mexico, Canada, and few Asian nations. Thus, the distributors and suppliers of the Haitian Mangoes need to first determine the demand of this product in the US market (Cerritos, 2015). The supply volume behavior and expected average prices per month for imported fresh mango in the US are shown below: They can conduct a market research and accordingly estimate the demand of this product over a given period. They can accordingly plan their distribution, logistics, transportation, and other supplementary activities accordingly in a given working environment. They also need to obtain clearances at both the levels so that they will get the required permission of selling Haitian Mangoes in the US market (Cerritos, 2015). They also need to check for their profitability margins so that they can remain competitive and ensure sustainability in a given competitive market. This product is easily available from Mexico and Canada; thus, the suppliers of Haitian Mangoes need to focus mainly on the product features and the taste of the product. It will allow them to capture more customers and subsequently achieve the desired objectives of expansion in a given market environment.

Product Description

Haiti is considered to be among the 20 largest mango producers on a global basis. They are producing around 200,000-400,000 metric tons of mangoes on per annum basis. However, India is the largest producer of mangoes with a capacity of more than 13 million metric tonnes on annual basis followed by China, Mexico, Thailand, and Indonesia. As per the governmental reports, the US government is importing around 300,000 metric tonnes of mangoes on a daily basis. However, they are looking for the best quality products that will satisfy the needs of the local customers. The export of the Haitian Mangoes will help nearly 200,000 farmers to overcome their economic problems and also help in contributing to the growth of the economy of the nation (Trantin, 2017). Haiti does not have any other major developmental factors through which it can increase the total GDP (Gross Domestic Product0 of the entire nation. Hence, they are focusing more on the agricultural and such mango products that will assist in improving the economy of the nation. For this purpose, the government of Haiti has initiated different programs to support the export operations of Haitian Mangoes. These include = the Haiti Hope Project, Mouvman Moun Mango, and even collaborated with governments of the neighboring countries (Trantin, 2017). It will thereby help them increase the production of mangoes and subsequently sell them in different parts of the world.

Export and Import Regulations

There are different norms and regulations formulated for the purpose of importing and exporting a particular item from one nation to another. It is important for the respective organization or the authority to follow to it before directly selling those items to another nation. From the import regulations perspective, they need to follow the tariff schedule, ensure that they are selling the item that is allowed to be sold in the foreign nation, receives customs clearance, has commercial invoice, also adheres to the foreign exchange regulations, and will be following the logistics schedule as per the authorized planning (Trantin, 2017). The buyer and the seller, however, need to enter into an agreement with each other wherein they will be under-signing each of these laws and norms before initializing their trade operations. Further, they need to inspect the relevant documents as required and submit to the respective government in a given environment. The governmental authorities need to carry out physical inspection of the exported items before they are imported at the port of the trading nation. It will thereby make sure that the Haitian Mangoes are eligible to be sold in the United States and the customers will be able to receive it after the customs clearance department of the US accepts it.

Method of Transportation

The modes and channels of transportation will depend on the type of products sold and the level of connectivity between the two nations. In some of the cases, the two nations will be not being linked through land boundaries. In other cases, they will be linked and hence the participating entities will decide the mode of transport. The major ways through which transportation of goods will take place in the case of Haitian Mangoes include - road transport, sea transport, and air transport as well. The buyer and the seller, however, need to conduct an analysis regarding the transportation costs and also determine the transportation protocols in a given environment (Loh, 2014).They will accordingly set up the trading operations and finalize on the trade routes between Haiti and United States. Also, they need to make sure that they have received the transport clearance form from the respective government so that they do not face any further hurdles in carrying out the required trade operations. At the receiver’s end, the companies that will be importing the Haitian Mangoes need to have a clearance form from the customs so that they can import these products and then transport it to the respective distribution centers.

Cost of Transportation, Payment and Financing Methods

There are different types of transportation costs associated with the goods that will be exported and imported between two nations. These include - transportation costs of the vehicle or the mode selected, terminal handling charges, port dues, local and intercity transportation costs, logistics administration costs, customs costs, freight costs, insurance costs, and other safety costs as required by the two entities in a given environment (Goldar, 2013). The mode of payment will further depend on the terms and conditions agreed upon. On a general basis the Letter of Credit issued by the bank works best in such operations. The bank on behalf of the buyer will be making the payment to the seller once the products are received at the port. The funding for these costs will depend on the business entities that are participating in these trading operations. They will decide in a particular ratio regarding how much costs should be shared between them; accordingly, they will decide on the actual transportation costs that will incurred from the source center to the destination location in a given environment. It is important to make sure that these products are covered under Insurance so that any damages, if found will be paid by the insurance company in given conditions. Certificate of Origin, Insurance Certificate, Shipper's Export Declaration and other required Documentation. For selling the Haitian mangoes, it is important for the seller of the Haitian Mangoes to obtain the license to sell them overseas. He needs to buy license for import-export operations, needs to obtain the license of sales and only then he will get eligible to sell them in the external locations as shown below in figure-3. In addition, from the legal perspective, he needs to show the filing wherein all the export figures will be mentioned. It will thereby help him overcome the legal perspectives related to taxation in a given environment. Further, he needs to fill in the export declaration form and obtain the approval from the customs' office so that his shipment can be shipped to the US.Also, at the US, he needs to have approval letter of the seller so that he unload hisshipment and the seller can receive the Haitian Mangoes at the receiver's end. In addition, both the buyer and the seller need to purchase the insurance of this shipment to overcome the damages and other risk factors associated with the transportation in a given process. It will thereby ensure safe transport of these products from Haiti to US in a given selling channel and in a given operational environment (Aristei, Castellani, & Franco, 2013).

Distribution Channels

It is first important to have contracts with the importers and thereby decide the mode of transportation and the mode of selling these mangoes in the US. The entire supply chain of the distribution function will initiate with the operations between the importer and the exporter. They will be entering into a trade agreement and after obtaining necessary approval they will be looking on the distribution operations (Amiti, Itskhoki, & Konings, 2014). The distribution function will include - transportation of the Haitian Mangoes from the Haitian port to the US port, packing the products at the exports end in different boxes and then shipping them through local transportation channels to the port, unloading of the products and the entire shipment at the receiver’s end and shifting the shipment to the warehouse, and other supporting transportation (Amiti, Itskhoki, & Konings, 2014). The purpose of distributing is not only to ship the products from Haiti to US but also to manage the entire shipment along with mentioned quantity and in proper box packaging. Further, they need to move the entire container in the local cities to the respective ports and to the inventory management center (Amiti, Itskhoki, & Konings, 2014). Thus, the logistics costs and the entire supply chain function needs to be managed in a proper way. It will thereby make sure of properly delivering the products from one end to the other.

Risk Management

There are several risk factors associated with the import and export operations. These include - risks related with consignment, documentary issues, letter of credit problems, payment problems, damaging of the goods during transit of goods, goods getting lost or stolen during different transportation cycles, product liability risk, and also foreign exchange risk that could imbalance the total payment in a given payment cycle (Dixon & Panico, 2013). It is thereby recommended to the top-level management at both the ends to prepare the risk mitigation plan that will assist them in overcoming the major risk factors in a given working environment. Further, the banks and other financial institutions involved need to focus on the credit risk factors and foreign exchange risk factors so that they can overcome the payment imbalance issues in a given situation. Also, the insurance companies need to provide required support in the case of physical risk, cargo risk, transit risk, and other risks identified in a given environment. There is a need of a risk management team to be formulated that will assist in overcoming these issues and subsequently ensure successful transmission of Haitian Mangoes in a given process.

Warehouse Management and Inventory Control System

The warehouse management will include multiple functions to manage in the transit process of the Haitian Mangoes from Haiti to US. These include - inbound and outbound logistics operations, analyzing the demand of the customers and accordingly managing the inventory, interacting with the marketing department for promotions, managing orders with the help of technological platforms, purchasing functions such as analyzing customer orders, determining purchases, replenishment process, negotiations, and also managing records of merchandise delivery, and finally will be managing shipping functions to ensure streamlining of all the business processes associated with warehouse management (Dixon & Panico, 2013). The buyer and seller will be required to manage this function in the most optimal way to improve the working efficiency and also to manage reorders in a better way. Further, the seller also needs to manage inventory management functions such as - inventory status, cycle count, picking the products whenever required, and replenishing the items from safety stock to prime bins as per the requirements and demands during different seasons. It will thereby ensure a smooth functioning of the processes in a given environment. The role of technological platforms such as Enterprise Resource Planning (ERP) solution at this juncture will be important as it will assist the employees of these firms to manage all these functions in a better way.

Packaging Management, Labelling, and Advertising

The packaging management team needs to first determine the total quantities that they will be shipping from Haiti to US after considering the demand estimates and also after agreeing with the buyer of the products. Further, the packaging team also needs to determine the total number of mangoes that need to be put in one box and then decide total number of such boxes that need to be put in one pallet (Dou & Li, 2015). It will accordingly help them in fulfilling the entire container that will be alter shipped from Haiti to US. There are also crate options available but it will depend on the total demand estimates and quantities ordered by the buyer in a given environment. The labelling will follow the packaging process; however, the seller needs to provide the best labelling to create the brand name in the US market. It will not only ensure capturing the attention of the customers but will also create an impression of good quality and branded mangoes in the US market. The seller thereby can focus on their advertising and promotional campaigns both through online and offline channels to increase the customer base, to develop their brand name, and also to create awareness in the new US territories where they can aim to sell these Haitian Mangoes in the near future.

Accounts Management and Capacity Utilization

The role of the accounting department will be most vital as they will be handling all the books of account related to all the business processes and activities in a given firm. They will be recording all the transactions, preparing the balance sheet, profit and loss statements, and will also look on the accounts payable and accounts receivable sections. It will thereby allow them to determine bottom-lines and the profitability margins in a given working environment. They can also conduct costs-benefits analysis to determine the break-even as well as determine the total profits that they will gain from their transaction of selling Haitian Mangoes to the US market (Dou & Li, 2015). It might happen that the transportation costs will increase and hence the sellers of Haitian Mangoes will be forced to increase the prices of their products. However, during the time of such price rise they need to determine whether there will be demand of these products at given price limits in the US. Only then they will be able to move forward with their export operations in a given US market. They can however take initiative to increase production limits through different agro- based technological solutions. It will reduce their manufacturing costs but they also need to look for trade agreements that can get settled in the US market.

Strategic Recommendations

Researchers are proving several recommendations to not only improve the import export operations but also focus on - establishing new mango fields in Haiti that will yield more products, evaluate technology for the purpose of improving agricultural practices, train producers and middlemen in best harvest and post-harvest techniques, improve transportation and logistics services to serve as per the needs of a given environment, and further focus on seeking new markets that will improve the relations to the next level in a given environment (Feenstra et al.,2013). It is important for the producers of Haiti to implement technologies that will not only yield better products but will also help them in reducing the overall costs associated with these trade operations. They along with the buyers from the US need to connect with the US government for free trade zone so that the overall costs can be decreased.It will subsequently help them achieve the economic goals of the nation and later will improve the economic conditions of the nation in a given environment (Feenstra et al., 2013). It will further strengthen the organizational relationships between the two nations and they can further work on other modules to achieve better outcomes in the near future.

Conclusion

This report discusses about the import and export operations related to the HaitianMangoes from Haiti to the US. It describes the different processes, the procedures involved, the legal norms to be followed, and the transit processes that take place in a given transaction. Further, it is important for the buyers and sellers to collaborate with each other follow all the legal norms and thereby trade Haitian Mangoes in a given transaction (Gilio & Sanfilippo, 2014). There is a need to reinforce technical support services that will transfer knowledge to farmers regarding the management of technology in different process, promote livestock best practices, extend fruit fly detection program, deploy quality management initiatives, improve current co-ops infrastructure, and also improve the entire supply chain in a given operational environment. It will thereby help both the entities to carry out a smooth and streamline transaction in a given environment. The top-level management at both the ends however needs to monitor the practices and analyze the overall performance. They can subsequently take steps for future improvement and increasing the overall trade in a given process.

 

 

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