Logistic/Regulatory Project for Solar Panel Import from South Korea to the US

Logistic/Regulatory Project
Product name – Solar Panel
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Table of Contents
Introduction.................................................................................................................................................2
Project description.......................................................................................................................................2
Country of origin and destination............................................................................................................2
Product....................................................................................................................................................3
Trade overview............................................................................................................................................4
Trade Barriers..........................................................................................................................................4
Other trade requirements.........................................................................................................................5
INCOTERMS selections.........................................................................................................................5
FTZ and Bonded Warehouses..................................................................................................................6
Use of Freight Forwarders and Customs Brokers....................................................................................7
Self filing.................................................................................................................................................8
Cargo security/Supply chain management security.................................................................................8
Volumes..................................................................................................................................................9
People......................................................................................................................................................9
Trade Automation..................................................................................................................................10
Risk Management......................................................................................................................................10
Political risk...........................................................................................................................................10
Technological risk.................................................................................................................................11
Environmental risk................................................................................................................................11
Technology and regulatory management...................................................................................................12
Cost estimation..........................................................................................................................................13
Conclusion.................................................................................................................................................14
Sample Exhibits.........................................................................................................................................15
References.................................................................................................................................................16
Appendix...................................................................................................................................................18
Table 1: Incoterms.................................................................................................................................18
Table 2: Cost estimation........................................................................................................................19
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Introduction
The primary purpose of the paper is to provide an effective view of international logistics. To
understand the international logistics process the trade between South Korea and the US took
place where Solar Panel has been imported from South Korea to the US. The paper eventually
discusses the country of origin than the destination and also about the product. The paper also
discusses the trade barriers, trade requirements, incoterms selection, a free trade agreement, and
bonded warehouse and also the use of freight forwarder and customs brokers. The paper also
discusses the risk management then the technology and regulatory management and cost
estimation for the project.
Project description
Country of origin and destination
The proposed logistics project effectively implies the importing of solar panels from South
Korea to the United States. It is one of the renowned Asian countries in term of electronic
products. There are numerous companies like the BJ Power, CMD Korea, Eco Power, and
SolarPark is some of the companies that manufacture solar panel in Korea (South Korea’s solar
industry recovers its glow, 2019). It is one of the biggest parts of country economic factor. It can
also be depicted that Korea is supporting its exporting industries for stimulating the economy of
the country. The major driver of Korean economic development is considered to be export-
driven growth. The country primarily relies on the free trade policy that eventually helps them to
promote the export from South Korea. It is the fact that the country is a member of WTO as well
as they have free trade agreements with numerous countries. The country is considered to be the
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5th largest export country in the world with more than 500 billion dollars in total export. The
country is already known as the world leader for renewable energy technologies and solar panels.
The USA is considered to be the second largest destination that has Korean products. The US
marketing is facing the increasing demand in term of the solar panels, and it can be estimated
that by the year 2025 the solar panel market size in the US will reach by 22.90 billion USD
(Felton, 2018). In the year 2016 there was significant growth in term of installation of the solar
panel within the country, and for that, it is expected that in the coming years' people will get
more addicted towards the solar panel. This is because people are becoming more
environmentally conscious and also being the highest economic country the USA provides a
suitable opportunity for their people for developing.
Product
The proposed products that are to be imported by the US market are the solar panels. It is the
device that generally converts the light in the electricity. It is called a solar panel because the
panel uses to grab the light from the most powerful source that is Sun. It is also known as
photovoltaic which mean light-electricity (Kawamoto, & Shibata, 2015). The technology behind
this product is relatively old though it has the futuristic appeal. The basis of this system is the
same, but the efficiency of the solar panel has developed over the years. This product has
suitable craze all over the world among the people due to the increase in environmental
awareness.
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