Import and Export Regulations

The assignment provides a detailed overview of the import and export regulations in the UK and Algeria. It covers topics such as conformity assessment, certification, and restricted goods, including weapons, personal imports of meat and dairy products, CS gas sprays, rough diamonds, and illicit drugs. The document also touches on the legislations related to port performance in the UK, customs duties, and VAT. A key takeaway is that exporting companies must be aware of these regulations to avoid restrictions and fines when shipping goods between the two countries.

Managing Logistics and
Negotiations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASKS.............................................................................................................................................3
1 Market outlook, market channels and trends in hair care products..........................................3
2 Procuring the hair care products form the two countries.........................................................6
3. Suppliers port of Origin and shopping online:........................................................................7
4. List of customs regulations.....................................................................................................7
5. Risk Management Plan...........................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
APPENDICES...............................................................................................................................12

INTRODUCTION
Managing business logistics is an important part of an organisation as it allows the flow
of things from point of origin to the point of consumption due which the requirements of
corporations and customers are met (Sengupta, Niranjan and Krishnamoorthy, 2018). Various
resources are to be managed logistics which includes various physical items like food item,
liquids as well as non tangible items such as information. Logistic management is related to the
supply chain management which helps in meeting the customer's demand through effective
planning of the effective movement as well as storage of information related to goods and
services from point of origin to destination. Present report based upon product Argan oil and
supply chain management and negotiations related to it. This report discusses about the outlook
of the market, the market channels and trends in hair care products (Felicio and Sharma, 2018).
Present report also includes the decision of the best supplier for the products and customs
regulation associated to it. In this risk management plan is also prepared to minimise the risks
associated to with the supply chain and logistics.
TASKS
1 Market outlook, market channels and trends in hair care products
Professionally hair care is a term which is associated with the cosmetology and hygiene
which involves the treatment of the hair toot, hair follicle and sebaceous gland through
electrolysis and other methods. In UK hair care market is seeing upsurge due to increase in the
population and the total value of the professional hair care products is £463.9 million and is
growing at a CAGR of 1.84% and is estimated to reach up to £517.53 million by 2023. Majorly
hair colouring products accounts for the largest market share of 52% in UK markets in 2017.
Total revenue generated is £242.22 million in 2017 is expected to grow in the future. As there
has been a drive towards premiumisation and personalisation but the hair care category in UK
has been continuously dominated by the various hair care brands which are perceived to offer
better value for the customers. Most of the premium hair care brands which are sold in UK's
pharmacies or chemists are organic soaps and shampoos which are dominating the markets of
UK especially the customers which prefer natural products (Barone, 2016). UK is considered as
the most dynamic market for the hair care products and it is experiencing high growth in the
future.

Illustration 1: Market Growth
Source: UK's Professional Hair Care Market, 2019
Based on the different findings it has been observed that rise in median disposable
incomes in UK is about 2.3% which raised as compared to previous year. A rise in the disposable
income in UK has expanded the prospects of hair markets in UK. There has been a rise in the
hair care products and services in UK and is flourishing in the markets, a professional hair care
markets have a size of 600 million to 650 million in 2018. It is also estimated that UK market
will witness a compound annual growth rate of 2% to 3% within the forecasted period of 2019 to
2025. There are various factors which predict the growth of hair care products like online drivers
which has increased a good portion of purchases of hair care products, sales outside saloon is
also increasing, demand for the natural care products is also increasing in the markets of UK
(Gath and Herzog, 2015). Entire UK market has been divided in to two major segments i.e. men
and women. The hair cares sales for the men's in UK alone was estimated to be worth of £60
million in 2014 and have increased up to £68 million in 2019. A men's hair care market is
continuously seeing a rapid growth especially for the products of hair treatment and scalp
treatments which also suggest that there is a future opportunity for growth in the markets.

Illustration 2: Sales value of men's hair care
(Source: Sales value of hair care products for men in the UK in 2013,2014 and 2019,
2019)
There has also a continuous growth in the women hair care which has been driven
continuously by focusing on the caring needs and conditioning treatments. Regardless of price
many hair care brands have successfully adopted women's hair care concerns, however most of
the powerful brands is developing their own versions of their saloon regimes. There is huge
competition in the hair care markets of UK, which is mainly between shampoo brands, hair
saloons and hair care companies. Increase in the growth of hair products in UK has mainly due to
the change in the lifestyles and increase in the disposable incomes (Mangan, Lalwani and
Lalwani, 2016.). Also, increase in the health standards has also resulted in the growth of markets
in UK. Usage of the organic hair care products which is trending in UK markets will potentially
give rise to the markets and increased awareness among the people will also affect the hair care
markets.

2 Procuring the hair care products form the two countries
Argon oil is also referred as liquid gold which is produced from the nut of Argan tree
which is only grown in Southwestern of Morocco. It is a 100% pure hair oil with no additives or
preservatives. It is the oil which is free of fragrance and can be used for all types of hair and skin.
It is a high quality oil which is basically been originated from the trees of argan in Morocco. It
has got various benefits and Argan Oil can become beauty elixir for a customer from head to toe
including all hair types. It is basically full of antioxidants, fatty acids, vitamins (especially
Vitamin E and Vitamin A) and also consists of the minerals which softens and moisturizes skin
and also protects hair from damage and hair loss. It comes in size of 30 ml bottle with highly
attractive packaging from outside which consists of essential details like the ingredients, date of
manufacture, price etc. but the bottle is transparent so that customers can see golden color liquid
oil. Argan oil 30 ml is priced at £15 which is good and affordable price for the customers which
is providing huge benefits to customers. As Argan oil is prepared from the nuts of Argan tree
which only grows in the Southern, Morocco so, first major country from which resources will be
bought from will be Morocco and another country from where resource can be procure will be
Algeria. These are the two major countries in which Argan tree grows so these will be the two
countries from were the resources can be procured in order to prepare Argan Oil. In order to
procure the resources from these two countries a company has to set the rules which will define
the responsibilities between buyer and sellers which is essential for delivering the goods under
the contracts of sales (Rzevski and et.al., 2016). An organisation has to establish international
commercial terms which is also called as incoterms which is published by International Chamber
of Commerce. Incoterms which will best for the company are described below:
 Seller has to make the good available at the company's premises or any other named
place. The goods that would be made available by the seller to the company will be base
upon the order made by the buyer.
 Seller has to deliver the goods to the premises that should be cleared from exports and
should be delivered to the carrier which is nominated by the buyer.
 Cost Payed To (CPT) and Council on Foreign relations (CFR) terms for all modes of
shipping should be set which includes that seller has to pay for the carriage of good and
goods will be considered as delivered when goods are handed over to buyer.
 Seller has to insure the goods for 110% of the contract value.

3. Suppliers port of Origin and shopping online:
The supplier which supplies the resource from Morocco is Argan Whole Sale which
supplies the products at the price of £8 per 30 ml bottle with the high quality. This supplier has
been chosen it provides items for preparing Argon Oil which is of the best quality and in
affordable price (Ross, 2015). Supplier chosen from Algeria is Arganix and it sells the products
at £7.50 the price is certainly low because there is a less quality involved as compared to Argan
Whole Sale. This supplier has been chosen because it supplies the fines quality of argan in
Algeria. The port from where the products will be sent from are Port of Hociema Morocco and
Alger port, Algeria which are the famous and busiest ports in these two countries from where
product can be distributed to UK.
The logistics company chosen in the two different countries are IPSEN Logistics,
Morocco which is a famous logistic company of Morocco and is the oldest. In Algeria Logistic
company chosen is TIBA international which is operating in UK.
List of export documentation for both countries:
Morocco Algeria
Commercial Invoice Commercial Invoice
Package List Package List
Port bill Certificate of origin
Bill of exchange Shipping Bill
Insurance certificate Export order
GR form PP form
Performa Invoice Performa Invoice
4. List of customs regulations
Each and every country has got its own laws and regulations in order to import and
export goods in an out of the country to which customs authority enforces. While entering UK
for any non European country like Morocco and Algeria which are North African Countries have
to make declarations to the customs. Both the countries has to abide and follow a list of UK's
customs regulations such as:

 Custom procedures: While importing the goods in UK exporters have to complete the
intrastat declaration which is an individual declaration that must be completed when the
value of the good is subjected to custom duties if it exceeds more than 6,000 GBP.
 Custom Freight Simplified Procedures (CFSP): It is an electronic declaration method
which is designed to simplify the custom procedures in order to clear the imported duties
either at the border of the country or at custom warehouse (Park and Roome, 2017). It
includes the limited range of goods which requires the license like explosives, controlled
drugs, military equipment which excludes Argan products.
 It is possible for the exporting to import goods which is deemed to be of commercial
value like samples which becomes free of duty and VAT.
 Custom Duties and Taxes on imports: Custom duties and VAT on imported good is
payable only when the value of the goods in more than 132 GBP. Average rate which is
effective applied on goods mineral etc was evaluated by UNCTAD was 1.4% which is
for European countries (Donato, Parry and Roth, 2016). For non European countries are
relatively low especially for manufactured goods.
5. Risk Management Plan
Risk management plan is a special document which a manager has to prepare in order to
foresee the risks and estimate the impacts of the risk and have to define the response in order to
minimise the risk. The risk assessment plan is given in a table below:
Risk Impact Mitigate against Manage
Logistic team risks:
 lack of security
procedure.
 Mergers and
Acquisitions.
It may result in the
loss of the business
profits and delay of
procurement of the
goods.
Abiding the safety
regulations. Framing
new incoterms
(Luncean, Mocanu
and Becheru, 2016).
Keeping track on the
entire logistic function
of the goods to be
imported.
Producer's risk:
 Lack of
quality.
 Stopping of
supplying
These risks will have
huge impact on the
performance of the
sales of Argan Oil. If
the goods delivered by
These risks can be
minimised by
establishing a good
relation with the
producers.
Working with the
producer according to
rules and regulations
(Fründt, 2016).

goods.
 Delay from
producers.
the producers is of less
quality and producer
company stops
delivering the goods it
will result in the huge
loss of business.
Transports Risk:
 Accidents
 Delivering the
good at wrong
premises
It will prove costly for
the organisation and
delivering of the goods
at the wrong address
will result in the
delays (Iskra, 2015).
Making the drivers to
follow the safety rules
and instructing how to
deliver the goods at
right address.
It can be managed by
formulating the
transportation plan.
Customs errors or
risks:
 Losing of
import or
exporter
authorisation.
 Shipments
getting stuck
into customs.
 Fines.
Loosing of
authorisation will
hamper the business or
even may result in
closure of the
business.
Fulfilling entire
custom standards.
Remaining up to date
with policies and
change in custom
duties (Moreno
Moreno, 2018).
External Factors:
 Natural
disasters.
 Change in
government
policies.
 Brexit
It will result in loss of
the business which
have negative impact
on the economy of the
organisation.
Keeping the policies
of the organisation
flexible.
Developing a suitable
strategy to overcome
the issue.

Recommendations:
 An organisation should make proper research about the risks which are associated with
entire program i.e. from selection of the producer to the delivery of the products.
 An organisation should keep a track on each and every steps involved in logistics and
customs.
 Company should make the producer to work on the quality standard and abide the
responsibilities that are mentioned in Incoterms.
 Company should keep records of the customs duties like imports and exports and keep on
continuously revising it. It should remain up to date with government policies.
 Proper logistic programme should be set by the organisation in order to minimise the
risks of logistics.
 An organisation should make proper risk analysis of the various risks which are
associated with the business like custom risks, logistics and transport, external risks.
CONCLUSION
It can be concluded from the report that for any business supply chain and logistics
management is a vital part. For starting a business it is important for the organisation to market
analysis like market outlook of the product, market channels and trends related to the products. It
can also be concluded from the report for import and export business it is essential for both
supplier and buyer to understand and abide the custom rules and regulations of the country in
which items is imported. Present report also concludes that it is important to choose the best
supplier of the product and to choose the port and logistics which will be best for the company. It
can also be concluded that there are list of custom regulation which suppliers have to follow in
order to export the goods to different countries.

REFERENCES
Books and Journals
Barone, A., 2016. Managing Global Logistics for Business Growth: A guide for small to medium
enterprises pursuing the global market growth through cross-border trade
(export/import). Buoyant Capital.
Donato, S., Parry, J. and Roth, S., 2016. Strong Supply Chains Transform Public Health: By
ensuring the efficient and effective delivery of medicines and commodities, supply
chains support healthy populations and regional health security.
Fründt, S., 2016. 8 Return logistics–repatriation business. Cultural Property and Contested
Ownership: The trafficking of artefacts and the quest for restitution, p.178.
Gath, M. and Herzog, O., 2015. Intelligent Logistics 2.0. German Research. 37(1). pp.26-29.
Iskra, M., 2015, October. The importance of logistics costs in enterprises. In Conference
Proceedings of the 3rd International Scientific Conference. (p. 781).
Luncean, L., Mocanu, A. and Becheru, A. P., 2016, September. Automated Negotiation
Framework for the Transport Logistics Service. In 2016 18th International Symposium
on Symbolic and Numeric Algorithms for Scientific Computing (SYNASC)(pp. 387-394).
IEEE.
Mangan, J., Lalwani, C. and Lalwani, C. L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Moreno Moreno, C.T., 2018. Logistics and sustainability.
Park, J. and Roome, N., 2017. E-logistics and the natural environment. In The Ecology of the
New Economy (pp. 35-51). Routledge.
Ross, D. F., 2015. Distribution Planning and control: managing in the era of supply chain
management. Springer.
Rzevski, G and et.al., 2016. Complex adaptive logistics for the international space
station. International Journal of Design & Nature and Ecodynamics. 11(3). pp.459-472.
Online
Kline, T. 2019. Top Five Dynamics to Watch in the U.K. Salon Hair Care Market. [Online].
Available Through: b<https://www.klinegroup.com/?
author_name=[e-mail]>.
UK's Professional Hair Care Market. 2019 [Online]. Available Through:
<https://industryarc.com/Report/7419/united-kingdom-professional-hair-care-market-
report.html>.

APPENDICES
Morocco is one of the largest country which exports inorganic, textiles, phosphates, citrus
fruits and other products to different countries. Its main export partners are European countries
including United Kingdom. Products exported from the Morocco has to go through various
custom procedures. Exporting companies has avail export certificate as well as exchange
commitment which needs to be presented to the custom office so that export title can be
achieved. An export certificates should be accompanied with the final invoice, commercial
documents like shipping and insurance documents and commercial contract. Exporting
companies has to maintain the quality standards of its products according to the Moroccan
Standardisation Department.
Algerian Ministry of Commerce in March 2011 published a note in order to remind the
There are various legislations which the exporters from Algeria has to follow and has to submit
the proof of conformity for the all shipments which enter and leaves the Algerian territory.
Country is assuring that they meet the regulatory and legal requirements which have a effect on
the exporters. Exporter has to submit the request for certification and other supporting
documents. The country's office reviews the information provided by the exporter and does
preliminary check in order to check documents submitted by the exporter. The consignment
inspection and testing is done by the appointed Inspector which inspects the consignment.
Inspector inspects verify whether the products inclined for the export are the same as detailed in
the documents which were submitted for certification. The quantity of the products are also
checked as per the invoice as well as the physical conditions are checked. After the successful
review and conformity assessment is done by the inspector, intertek will issue the certificate of
conformity. The exporting party which is acquiring the certification is accountable for the
charges of conformity which are related to the service performed by the conformity assessment
company. There are certain rules and regulations which the exporting companies of Algeria has
to keep in to consideration. Algeria government restricts certain products to be exported which
fail to get clearance from the custom departments.
Legislations which are related to the performance of port in UK, the custom duties which
are exercised at the UK port is assessed on the fair market value whenever the exported goods
arrives at the port. There are the various documents which are required to present at the port.
Various documents includes insurance, legal invoices, etc. UK imposes the prices for the

products which enter UK especially from the non European countries they have to face Freight
and excise duties with the standard VAT of 20% which is levied on the aggregate value. Also,
there are certain goods which are restricted to bring in UK and are blocked at the port. This is
done for the security purposes to protect from crimes, diseases, pests etc. The goods which are
banned in any circumstances regardless that products belongs to any country are weapons,
personal imports of meat and dairy products, CS gas sprays, rough diamonds, illicit drugs etc.
The countries which want to export their products to UK should know about the import duties of
UK, the VAT, minimum thresholds, product's payment invoices and international payments. So ,
they should have the knowledge of legislations of importing the goods in UK in order they face
the smooth entry of goods in to the borders of UK.
So these are the legislations of the different countries which the exporting country and
importing country imposes on the companies and shipments of the products. These legislations
are very important to be followed in order to avoid restriction and fines.