UK Trade Law, Export/Import Scenario for Jimmy Choo: A Report

This report delves into the complexities of international business, specifically focusing on the UK's trade laws, export and import scenarios, and essential documentation required for global trade. The report uses Jimmy Choo, a luxury accessories brand, as a case study to illustrate the practical app...Read More

International Business Environment
and Trade

Table of Contents
INTRODUCTION...........................................................................................................................1
1) UK's Trade Law related with export and import law..............................................................1
2)‘Export and Import scenario’...................................................................................................2
3) ‘Key documents’ are documents that will come up in any trading........................................3
4. Checklist required in export process ......................................................................................4
5) Different and carrier options and letter of credit....................................................................5
6) Application of law to business................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
International business refers to exchange of services and products between businesses as
well as people in many countries. Multinational enterprise is a main player in an international
business. With difficulties of global operating environments, it is necessary for firms to consider
legal, social, political, environmental and economic factors (Cavusgil and et. al., 2014).
International business environment is multidimensional involving cultural differences, taxation
problems, political risks and exchange risks. This report is based on Jimmy Choo which is
designer and provides luxurious brand of accessories. Under this report mention about Trade law
and import as well as export related scenario.
1) UK's Trade Law related with export and import law
Trade Law of UK is governed by European Union law on the common commercial policy and
custom union at least until the withdrawal from European Union. International trading law is
associated with all rules and customs related with handling trade between two countries. Each
country is having its own distinctive trade policies and they are obliged to follow the same.
International trade law can be define as a body of rules and regulation that regulate the
relationship that exist between domestic market and international trade. This law governs the
global exchange of product or services. It encompasses:-
Free Trade Area: It can be define as a region that includes a trade bloc whose member
countries have enter into contract with other country in order to export or import their product or
services. It help in increasing the import-export tariffs of respective country. Free trade means
more growth and development opportunities for the respective company who is usually either
importing and exporting their goods and services. According to Bureau of Economic Analysis,
at least half of UK imports are not consumer goods they are inputs for UK based producers.
FTA'a not only just eliminate or reduce tariffs and quotas, but they also address barriers that are
present behind the border that prevent the flow of product or services. In addition to that, Free
Trade Agreement also promote investment, improve co-operation and also address other issues
that are prevailing between countries such as intellectual property, government procurement and
e-commerce (Wilson, 2014).
World Trade organisation: It is an inter-governmental organisation that governs international
trade. It was officially commenced on 1 Jan 1995 and signed by 123 nations including India and
UK as well. It is considered as the biggest international economic organisation all across the
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world. It mainly deals with trade regulation concerned with goods, services or intellectual
property from one country to another with an aim of business expansion, extensive market share
and high profitability ratio. Participating countries enter into trade agreement and process of
dispute resolution aimed at encouraging participants adherence to World Trade Agreement
which are also signed by representative of member government and which further sanctioned by
their parliaments.
However there are other laws as well that are related with international trade and which every
company is obliged to follow.
2)‘Export and Import scenario’
Under this, there is an organisation chosen which is Jimmy Choo and provides various
luxurious accessories. This firm formed through Datuk, Jimmy Choo Yeang and he is fashion
designer in Malaysia. The main products in which this company is leading are fragrances, shoes,
accessories and hand bags. This firm provides its good in many of country by following all
legislations as well as rules. Under this, Jimmy Choo provides its goods in India to most popular
retailers of shoes. This firm exports its bran in India to United Kingdom. In all over the world,
India is largest producer of footwear. Jimmy Choo is British retailer whose fans consist Duchess
and also Beyonce of Cambridge which has been snapped off shelf for £896m through United
States. This business firm transport its goods or can say export from ship. There are many
formalities which have to fulfilled through both counties which is doing export and other that
which accept goods (Cantwell, Dunningand Lundan, 2010). In this present time period, exporters
face many issues in United Kingdom. There are various kinds of products which United
Kingdom country export to India. All the procedures as well as formalities both are common in
some of the countries. If United Kingdom country export its good to other country then in this
case it has proper license and also prepare export declarations to the customs with the help of
National Export systems. In addition to this, firm should make sure about the VAT (Value
Added Tax), import duties as well as taxes in destination of a country and follow all the
transportation related procedure in an effective or systematic manner. There are various
procedure of export like for an instance schemes of duty relief which can give advantage to
businesses. In this, there are some VAT and other taxes like for an instance Tariff, Zero rating
goods and many others.
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3) ‘Key documents’ are documents that will come up in any trading
At the time of export of goods, there is a need to follow all legislations and also rules. In
this, there is a need to prepare better document which will helpful in export of goods. On that
document consisting particular term about shipping of goods in an agreement for advantage of
different people as well as firms that will assess to facilitate good movement. Exports of the
physical products which move among the water bodies or though ship (Li, Lai and Wang, 2010).
It can be very risky as well as expensive if it will not be prepare in proper or systematic manner.
So, there is a need to an exporter should be aware of documents of export which are used to ship
products. Some of the essential export documents are given below:
Bill of Lading- It is a common document which is used in an international shipment and
it is also a contract among carrier and also owner of products. Under this document stated about
shipping of goods, where shipment began and where they are going. In context to this, after pick
up of shipment then bill of lading serves as receipt issues through carrier.
Certificate of Manufacturer- It is notarized document which certifying that products
have been manufactures through producer, satisfy needs of general products and also ready for
the shipment.
Certificate of Origin- This type of document is prepared through producer and also
certified through camber of commerce and also government entity. It is used to determine
manufacture of country where food are produced.
Commercial Invoice- When an international sale is finish and products are prepare to
shipped out, commercial invoice is main document which is used to explain whole export
transaction forms starting to the end involving shipping terms (Shenkar, Luo and Chi, 2014). It is
most necessary documents because it gives a critical instructions as well as information to all
involved parties such as freight Forwarder, foreign customs, carrier, import broker etc.
Consular Invoice- It is form which available by consular representative of country in
which supping is happen and it is necessary to certified shipment of products. This is not
necessary in each country but helpful in several emerging nations which facilitate tax collection
and also customs.
Dock Receipts- The main motive of this receipt is to give exporter with the proof that
delivery of products to international carrier was very successful in a proper manner.
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Inspection Certificate- It is done with an industrial equipment, meat goods and also
perishable merchandise. It certifies products which are received in better situations and shipment
contained in better quality.
Insurance Certificate- Regarding export shipments, this type of document certifies that
there is a need to bought an insurance policy related with Cargo on the board. In addition to this,
insurance may be buy because more losses and liability are concern to exporter (Welford, 2013).
Packing List- It is same to shipping list in which lists products being shipping and
information about packaging, hight or weight dimensions. In this, it is required to make bill of
lading and also understand about need of cargo.
Electronic Export Information (EEI)- Government online form for all the exports in
extra of $2,500 which are need a license of export.
Some of the legislation related to export given below as above:
Export Control Act, 2002- This act is introduced that able to control to imposed on
export of goods, provision related to technical assistance, technology transfer and also activities
which is connected with the trade of products.
Import, export and customs power (defence) act 1939- This act gives for controlling
exportation, carriage coast wise and also importation of products and also shipment of goods to
offer for facilitating enforcement of legislation concerning to matters of trade.
4. Checklist required in export process
When a company export or import their product to some other country, there are various rules
and regulation associated with it that every company is obliged to follow. Export Checklists
include certificate of origin, commercial invoice, bill of lading, certificate of inspection,
commercial invoice, generic certificate of origin and various other documents that also needs to
be taken into account while exporting product or services. As per the given case study, Jimmy
Choo is planning to expand their business operation in other overseas market so as to increase its
market base (Frank and Wright, 2013). Therefore, the company has decided to export its product
to other developing countries like India. However for doing this they need to follow proper rules
and regulation related with exporting process. Once the company is done with exporting their
products in other country their role is yet not finished. Their liability remain till the goods reach
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safely with the retailers. But there are certain cases when liability or responsibility of exported
ends once they are done with meeting all legal requirement till the goods are placed in ships.
Once it has been done, the responsibility of importer begins till the goods finally reach at its final
destination. However it is better for Jimmy Choo to take the whole responsibility of their goods
till it finally reaches to the importer. The reason is simple Jimmy Choo is well renowned brand in
the market of UK and there products are too expensive (Welford, 2015). It usually falls in the
category luxurious items, thus it is important to take the whole responsibility till its safely
reaches to importer.
Export Shipment are usually means getting insured against loss, delay or damage in
transit of cargo insurance. In case of international shipments, the liability of exporter is limited
by international agreements and also their coverage is distinct or vary from one country to
another. Damage can take place due to weather condition, rough handling by carriers, other
common hazards that causes breakage in their products. Therefore, it is primarily important for
them to ensure all safety measures and protect product in an appropriate manner.
5) Different and carrier options and letter of credit
There are various ways by which Jimmy Choo can export their product via shipping transport
such as they can effectively export their product through container, boxes, cargo etc. The
company needs to evaluate which among them is convenient for them so that their goods can
reach to importer without any damager or delay. It is better if the company choose exporting
their product through boxes that ensure their safety and prevent them from all external damages.
Since the company deals in offering luxurious goods to customer and that too at higher cost.
Therefore, it is necessary to export them safely without causing any damage. However with each
carrier different contract or terms and conditions are there which they need to follow and
perform accordingly (Briscoe, 2016). Company can enter into contract with more than one
carrier depending upon their goods and various aspects associated with it. For example: In this
case, Jimmy Choo is exporting their product through ships and they prefer to export it by using
boxes because they mainly emphasize on safety and protection of their products.
Letter of credit are mainly comes under payment mechanism and they it taken into
account by many companies where export customer are more concerned towards their products
order which may not be sent if the entire payment is made on cash basis. With the help of this
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payment mechanism, interest of both parties involved in it are protected. Under this method,
Jimmy Choo needs to present all relevant documentation to a nominated bank and confirming
bank before the final payment is made. Both letter of credit and documentary draft must be paid
immediately or at slightly later date (Tarique, 2017). In addition to that exporter also expects that
their payment is made on timely basis without any delay. In addition to that, both confirming
and issuing bank will charge handling cost from them for their letters of draft and credit.
6) Application of law to business
It is an activity related to officials as well as state bodies in legislation acts which
promulgated accordingly and also implementation of edicts, normative acts and also statued
(Dunning, 2013). Under this, it is a responsibility of United Kingdom country to check all the
necessary documents which are beneficial at the time of exporting goods in India. It is also a
duty of United Kingdom to follow all the legislations as well as rules during the exportation of
goods in a systematic or proper manner. According to Export Control Act, 2002 country should
enable export of the goods and also provide technical assistance at the time of export goods from
one country to the another. It is necessary that shipment should be in proper manner. While
United kingdom country export goods to India then all formalities should be done in proper
manner and it should be concerned with controlling of products in better manner (Briscoe,
Tarique and Schuler, 2012). United Kingdom developed many legislations related to export of
goods from one country to the other so it is essential to include all rules or legal system
practically at the time of exporting. It will provide advantage to that country and also shipping
will be done in a better or effective manner.
CONCLUSION
According to the above mentioned report, it can be conclude that in exporting and
importing consider as the most effective way through which the company can gain high
competitive in overseas market. This gives an opportunity to business enterprises to grow and
develop their business in other developing country which assist in making their customer and
market base stronger. There are lots of documentation that needs to be taken into account by a
company so as to export its products from one country to another.
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REFERENCES
Books & Journals
Cavusgil, S.T. and et. al., 2014. International business. Pearson Australia.
Cantwell, J., Dunning, J.H. and Lundan, S.M., 2010. An evolutionary approach to understanding
international business activity: The co-evolution of MNEs and the institutional
environment. Journal of International Business Studies. 41(4). pp.567-586.
Li, D., Lai, F. and Wang, J., 2010. E-business assimilation in China's international trade firms:
The technology-organization-environment framework. Journal of Global Information
Management (JGIM). 18(1). pp.39-65.
Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
Dunning, J.H., 2013. International Production and the Multinational Enterprise (RLE
International Business). Routledge.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Briscoe, D., Tarique, I. and Schuler, R., 2012. International human resource management:
Policies and practices for multinational enterprises. Routledge.
Shahbaz, M., Hye, Q.M.A., Tiwari, A.K. and Leitão, N.C., 2013. Economic growth, energy
consumption, financial development, international trade and CO2 emissions in
Indonesia. Renewable and Sustainable Energy Reviews. 25. pp.109-121.
Rugman, A. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
Kolk, A. and Van Tulder, R., 2010. International business, corporate social responsibility and
sustainable development.International business review. 19(2). pp.119-125.
ZHANG, Y., 2010. Carbon Contents of the Chinese Trade and Their Determinants: An Analysis
Based on Non-competitive (Import) Input-output Tables [J]. China Economic Quarterly. 4.
pp.1287-1310.
Johnson, D. and Turner, C., 2010. International Business: Themes and issues in the modern
global economy. Routledge.
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