Import Feasibility Study September 27, 2013 Andrea Stockl Jonas Soltero Outline • • • • • • • Product Description Pricing (Duty & Taxes) Cost Elements Contacts Place Promotion SWOT Analysis Product Clay Cooking Pots Brand name: Brazilian Cooking Pots. Slogan: “When warmth comes with art.” Differencial Advantage: • Eco-friendly • Keep the food warm for about 30 minutes. Description Product Association: Associação das Paneleiras de Goiabeiras. Materials: Clay, silt, and sand. Impact:Impulse Economy of a Poor Region Market: CAD$65 billion Canadian Restaurant and Foodservices Association Manufacturing Pricing FOB (Free on Board): value of the imported goods. GST (General Sales Tax) PST (Provincial Sales Tax) HST (Harmonized Sales Tax): a combination of both. Duty & Taxes Pricing Duty & Taxes Code Sales tax type British Colombia BC HST 0% 5% New Brunswick Nova Scotia Ontario NB NS ON HST HST HST 8% 10% 8% 13% 15% 13% Quebec QC GST + PST 8.50% 14.98% Province Provincial Combined rate effective rate Pricing Cost Elements Import c/u Export c/u Factory Cost $1.00 Landed Cost $1.49 Export Packing $0.08 Duty 8.56% $0.12 Freight to Port $0.10 Tax 5% $0.07 Marine Insurance $0.11 Custom Broker $0.10 Transportation $0.20 Expenses $0.20 Landed Cost $1.49 Unit Cost $1.98 Selling Price $3.96 Profit $1.98 Making Contacts Bilateral trade: increased by more than 25% (5yrs) reaching $6.6 billion in 2012. Services: •Export and Import Controls •Exporting •Importing •Systems •Controlled Products •Resources •Trade Negotiations and Agreements •Invest in Canada Parnership Making Contacts Documentation: Canada Customs Invoice (CCI) Confirmation of Sale (COS) Free Trade Agreement (FTA) Exporter's Statement of Origin Import Declaration Form Place Distributor Competitors Promotion Trade Shows • Show product • Samples Specialize Magazines Social Media Gourmet Events SWOT Analysis • Eco-friendly culture • Geographical Location • Price • Quality • Increasing Market 4.2% • New Markets • Diversify • Extreme Weather (cold) • Lack of modern technology • Financial Reserves • Lack of Experience Strengths Weaknesses Opportunities Threats • NOT Free trade Agreement • Competitors • Innovative Products (electric) Sources http://www.dutycalculator.com/help_center/Import-duty-taxes-when-importinginto-Canada/ http://www.pcb.ca/brokerage-canada.cfm http://www.canadainternational.gc.ca/brazil-bresil/ http://www.alibaba.com/trade/search?fsb=y&IndexArea=product_en&CatId=& SearchText=clay+cooking+pot+usaommerce_international/index.aspx?lang=en g&menu_id=16 Thank You