Import Feasibility Study

Andrea StocklJonas Soltero

September 27, 2013

Outline• Product Description• Pricing (Duty & Taxes)• Cost Elements• Contacts• Place• Promotion• SWOT Analysis

Product Description Clay Cooking PotsBrand name: Brazilian Cooking Pots.Slogan: “When warmth comes with art.”Differencial Advantage:• Eco-friendly• Keep the food warm for about

30 minutes.

Product Manufacturing 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

Pricing Duty & Taxes

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.

Pricing Duty & Taxes

Province CodeSales 

tax typeProvincial

rate

Combined effective

rateBritish Colombia BC HST 0% 5%New Brunswick NB HST 8% 13%Nova Scotia NS HST 10% 15%Ontario ON HST 8% 13%Quebec QC GST + PST 8.50% 14.98%

 

Pricing Cost Elements

Export c/uFactory Cost $1.00Export Packing $0.08Freight to Port $0.10Marine Insurance

$0.11

Transportation $0.20Landed Cost $1.49

Import c/uLanded Cost $1.49Duty 8.56% $0.12Tax 5% $0.07Custom Broker $0.10Expenses $0.20Unit Cost $1.98Selling Price $3.96Profit $1.98

Making Contacts Parnership 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

Documentation:Canada Customs Invoice (CCI)Confirmation of Sale (COS)Free Trade Agreement (FTA)Exporter's Statement of OriginImport Declaration Form

Making Contacts

Place Distributor Competitors

Promotion Trade Shows• Show product• Samples

Specialize Magazines

Social Media

Gourmet Events

SWOT Analysis• Eco-friendly

culture• Geographical

Location• Price• Quality

• Lack of modern technology

• Financial Reserves

• Lack of Experience

• NOT Free trade Agreement

• Competitors• Innovative

Products (electric)

• Increasing Market 4.2%

• New Markets• Diversify • Extreme

Weather (cold)

Strengths Weaknesses

ThreatsOpportunities

Sourceshttp://www.dutycalculator.com/help_center/Import-duty-taxes-when-importing-into-Canada/http://www.pcb.ca/brokerage-canada.cfmhttp://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=eng&menu_id=16

Thank You