Import Regulation and Distribution Essay Example for Free

Import Regulation and Distribution EssayAll goods trade into Canada are subjected to tariffs. For merchandise perfume pens from France, first of all, there must be a registered company in Canada which stub import legally. CBSA, Canada Border Services Agency, has highlighted various steps for trade of goods into Canada. It insists that the company must apply for a Business Number, which is registration for an import-export account with the CRA, Canada Revenue Agency. Further, CBSA suggests that another registration is needed for the GST, Goods and Services Tax. This GST is levied on most of the goods that are imported into Canada, with exception to goods imported under NAFTA, North American Free Trade Agreement. Since perfume pens come under the category of perfumes and cosmetics, it becomes essential to consider the senseless expenditure due to the tariff for importing from a manufacturing country other than the USA (in our case, France). Further, these tariffs will to a fa ult vary with the ingredients of the perfume used in the imported pens.Since, the perfume pens made by the French manufacturer- Sensrise, incur different fruit, oil and chocolate fragrances, it can be deduced from the CBSA tariff schedule that the tariffs will also vary. concord to the IMMR, International Market Reoceanrch Report from Industry Canada, import of perfumes from the USA account for 70% of Canadas total import of these products, while France accounts only 12% of Canadas total imports. Besides, Cosmetic Business (2003) reported that it is also mandatory to submit a Cosmetic Notification Form, CNF, to Product Safety Bureau of health Canada.Further, it can be inferred from the report that it is the responsibility of the importer in Canada to ensure that the perfume pens must comply with the requirements of three legislations The Food and Drug Act, The Consumer Packaging and Labeling Act, and The Canadian publicise Act. Logistics and Distribution Freight charges will be levied for the cargo delivery of packed cartons of perfume pens according to the existing rates, which would depend on the mode of transportation sea or air, the weight, the volume, and whether shipped as a single container or by sharing with other cargo.The perfume pens imported from France can be sold and distributed in the refinement market of Vancouver through various channels. According to the IMMR, about 85% of the sales of cosmetics and toiletries to Canadian consumers are through retail channels like drug stores, departmental stores, mass merchandisers and food stores. A Google search lists some of the perfume distributors serving the retail markets in Vancouver. Distributors The major perfume distributors serving the Vancouver area includeo Cosmolane, which are distributors for brands like Orlane, Annayake and Rubis o Scorpio, which are distributors for Diesel, Emporio Armani, Ralph Lauren, and to global inflight retail market o Globex, which are distributors for Gucci, Do lce Gabanna and Kenzo o Charmei Marketing Corp. and Town Distributors are also in the perfumes distribution business It must be mentioned that e-commerce can also be an effective direct marketing strategy to cater to the internet-savvy consumers.However, the IMMR warns that the consumer would still have to pay Canadian taxes and customs duties if the value of the postal or courier import exceeds the maximum permissible value. Based on the above preliminary research, it can be concluded that the French manufacturer of perfume pens, Sensrise would need a comprehensive research to devise an effective marketing strategy for selling its mod and attractive perfume pens to the Canadian consumers.References Canada Border Services Agency. (n. d. ). A step-by-step guide to importing. Retrieved March 27, 2009, from http//www. cbsa. gc. ca/sme-pme/i-guide-eng. html Cosmetic Business. (2003). The Canadian Cosmetics Market. Retrieved from http//www. cosmetic-business. com/en/showartikel. php? a rt_id=22 Parent, M. (2003). International market research reports. Industry Canada. Retrieved from http//strategis. ic. gc. ca/eic/site/imr-ri. nsf/eng/gr109695. html