Going to start selling Indian  wears and version in Canada

As a small business owner, having roots from Canada. I have noticed an existing market in Canada. We have many Indian in Canada. They are very store in their culture; many will want to wear their traditional clothes. In most of times, they import their wear from India. This could be time consuming and expensive to many. Mostly the international students in Canada have come to Canada for education and work. Like a basic need the students may feel uncomfortable if they do not wear the decent traditional Indian wear. Most of the markets here and the textile industry does not majorly produces or see the Indian clothes.

After noticing an existing market opportunity and ready market, I have decided to start an Indian wear store. I will defiantly be exporting my products and the raw material from India to Canada.

The Indian wear, is highly demanded by the people from India they would love to show their cultural ,identity. As an entrepreneur, I understand that using, the appropriate marketing strategies, this business sins going to attract many people. Not only from Canada but also from the international market. It is vital to factor out the era material required and the cost of their transportation too, inventory plan will be devolved to ensure that every activity right from, the outsourcing to the distribution to the consumers is considered. It is important to note that, many of the small business may be faced by competition from he already established or bigger companies distributing retailing the same or alternative products. To mitigate such competitions, our company is going to be very focused on meeting the need in the market.Sustianabilty concept will be applied  this business. Many people out there are buying sustainable products, I would like to integrate this concept in the fashion designing and making the clothes.

Getting ecofriendly, is a better, stop of making the business known in the community, for instance , I am planning to plant 50 thousand tress in the Canadian urban centers .This will be after I partner with the organization advocating for environmental protection, I will therefore be able to

Which foreign currency do you wish to target?

In all that business operation, I am targeting to be using the American dollar .Since this has been a stable currency in the globe .I prefer using it to market and distribute my products. Additionally the target market will require to have fixed and fair prices that could help in bring competition. It is important to choose a stable currency in my business because I will be able to know, fix the prices of different items based on the, need and quality. Most of the Indian clothes are not so much expensive, I will sell them at favorable prices.

After analyzing my business competitive a in the Canadian  market ,I ill be able to know the potential threats risks and possible challenges to my business ,like any other business a small business also faces challenges .

What is the level of risk associated with the country?

Cost of raw materials

Everything has to be made from something, and clothing is no exception.

Cotton, silk, wool, and leather all need to be farmed, and that takes time, work, and money. They may all be farmed differently, but all these processes have one thing in common; fresh water.

As a raw material, there is an abundance of water on the planet, but fresh water is a different story. 97.5% of the Earth’s water is undrinkable, which leaves only a small amount for everything we use it for.

Global demand for freshwater is predicted to increase by 55% by 2050, most of which is coming from agriculture.

Farming accounts for 70% of all fresh water use, and according to a Nasa-led study, many of the world’s freshwater sources are being drained faster than they are being replenished.

The World Wildlife Fund estimates that it takes 20,000 litres of fresh water to make one kilogram of cotton; enough for a pair of jeans and a t-shirt. This simply means that things cannot continue at this rate, and that something has got to give.

We may see dramatic changes to the industry in the next 10-20 years as crops fail, and with 40% of all our clothes made from cotton, we will start to see the results sooner rather than later.

Transportation costs

We face a future in which the coal and oil industries are moribund.

Renewable energy like solar and wind are becoming cheaper and more efficient each year, and soon they will produce more Kw per dollar than fossil fuels.

Once that happens, the free market will take over and more investment will be put into renewables, making them even cheaper, while coal and oil will fall behind and become more expensive to manufacture.

Now, this is great news for the planet, and everyone will soon have electric cars and home solar systems, but it’s not necessarily good for the apparel industry.

No matter how efficient solar panels are, they are nowhere near powerful enough to drive a container ship. Transporting product around the world will still rely on enormous diesel chugging ships, but with the price of oil going through the roof, it going to be a luxury only the top brands may be able to afford.

Rising labour costs

Climate change is the culprit again here, with rising sea levels to blame.

According to a report by the Organisation for Economic Co-operation and Development, four out of the five countries most affected by rising sea levels are China, Vietnam, Bangladesh and India. These four countries also happen to be the apparel industry’s biggest manufacturers.

Extreme weather conditions mean that these counties may not be able to continue with their textile production, and if they do, at the very least the cost of running these factories will increase.

If the labour force is changed to a different area or country, this again will have a knock-on effect, raising prices across the globe.

Millennials becoming the largest market

Millennials will soon be the biggest demographic in the workforce, which means the industry will need to change their approach to suit.

While they are amongst the fashion industry’s biggest spenders, they are also very different in their shopping habits.

Two thirds of Millennials prefer to shop online, meaning a digital presence is not only essential, but it needs to be up with current practices, standards and trends.

Sustainability is also a major factor in Millennial shopping decisions, with a third claiming they are more likely to buy from brands which are dedicated to social responsibilities.

With this change in the marketing demographic, companies need to adapt with the times or fall behind.

Cyber attacks

The arrival of the internet has changed everything, especially when it comes to business. And with billions of dollars being spent online every day, it’s a tempting target for criminals.

With ransomware on the rise, a company needs to be prepared in case of a cyber-attack, yet very few are. As technology and software grow and become increasingly intelligent, harder to detect, and more dangerous, one person can bring down an entire supply chain.

And it’s not necessarily for financial gain either. Some hackers simply want to create as much destruction to a company as possible – for no other reason than – they can!

Modern business, both large and small, need to be prepared for a digital attack, which can have very real consequences on the ground, from factories shutting down to customers’ information being stolen.

Looking towards the future

No matter what challenges lie ahead for the apparel industry, we will be here to meet them face-on.

Times are changing, and those companies that don’t change with them will surely be left behind.

That’s why we constantly keep up with the latest news, trends and technologies, which enables us to tackle any threats that may appear on the horizon.

Contact us today if you have any questions about how we can help your business meet the challenges of the future. Our friendly and helpful stall will be happy to answer any questions you may have.

How long will it take for product to reach Canada

How to Import Goods Into Canada

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BY SUSAN WARD

Updated November 16, 2018

Maybe you’ve been on a business trip and have collected unique items that you want to sell in Canada. Or, without even leaving your desk, you’ve discovered a more inexpensive source of supplies for your business out of the country. Now you want to know how to start an import business. If you don’t already have a business, you will need to start a business before you can start importing into Canada.

Get a Business Number

A business number registers you for an import/export tax account with the Canada Revenue Agency (CRA). Do I Need a Business Number? tells how to get one.

While you are registering for a business number for an import/export account, you should also register for your GST/HST, corporate income tax, and payroll tax accounts if you need them. (You will definitely need to register for the GST/HST as well as for importing/exporting. GST (5%) is payable on most goods at the time of importation.)

Get Information About the Goods You’re Going to Import

Besides having an accurate description of the goods you plan to import, you also need to be sure that they can even be imported into Canada. This Step-by-Step Guide to Importing from the Canada Border Services Agency (CBSA) gives details on how to find out if the goods you want to import are prohibited or restricted.

Calculate How Much Duty and Tax You’ll Have to Pay

To do this, you need to know:

• The tariff classification;
• Applicable tariff treatment;
• Rates of duty;
• Tax payable when importing goods.

A tariff classification is a ten-digit number used to determine the rate of duty payable when importing. You can find both the tariff classification number and the rate of duty by consulting the Customs Tariff.

The “tax payable when importing goods” refers to GST, excise tax and excise duty (which may or may not apply to the goods you wish to import). Note that for imported goods you only pay the federal portion (GST) of taxes even if you reside in a province that charges HST (e.g. has harmonized the provincial sales taxes with GST). Note also that no GST is charged on imported goods that are zero-rated in Canada, such as medical devices or prescription drugs.

The Step-by-Step Guide to Importing from the Canada Border Services Agency gives details on all of these and an example of how to calculate duties and taxes.

Get a Customs Broker

While this step is entirely optional, many small businesses find it convenient to hire a customs broker to facilitate the import process. A customs broker will obtain and prepare the customs release documents needed by the CBSA, arrange payment of customs duties and taxes, obtain the release of imported goods and generally make it easier to navigate the customs maze.

Place Your Order With Your Chosen Exporter

A chosen exporter is also known as the shipper or vendor. Besides shipping the goods, the exporter is responsible for getting the documentation together for sending the goods to Canada:

• Packing List – Prepared by the exporter, this describes the goods in detail.
• Bill of Lading – Issued by the exporter to a carrier, this describes the goods to be shipped, acknowledges their receipt and sets out the contract for the goods’ transport.
• Commercial Invoice – The document from which you pay the exporter.
• Canada Customs Invoice – A document used to declare your good to Customs when importing into Canada (CI1 – Canada Customs Invoice).
• Certificates of Origin (If Necessary) – These verify where various materials and parts originated and are necessary for goods eligible for favorable tariff treatment under particular trade agreements.

These documents are given to the carrier. Note that if the value of your shipment is less than $1600 CAN, you don’t need a separate Canada Customs Invoice as well as a Commercial Invoice, as long as your Commercial Invoice has all the necessary details for declaring your good to Customs.

You will also want to be sure that your chosen exporter is able to comply with the requirements for the Marking of Imported Goods and Canada’s Labeling Requirements (Canada Competition Bureau).

Choose a Carrier to Transport Your Goods

The carrier is responsible for preparing a Cargo Control Document. This document (also known as a manifest or waybill) is prepared from the exporter’s Bill of Lading and is used to report the shipment to the Canada Border Services Agency (CBSA). Cargo may also be reported through the Electronic Data Interchange (EDI) system.

If the value of your shipment is less than $1600 CAN, you will be notified by Canada Post or by the courier company that has forwarded the shipment when your shipment arrives.

If the value of your shipment is over $1600 CAN, you will be notified by your carrier, by the CBSA, or by the courier company.

The CBSA may choose to inspect your shipment.

 Obtain the Release of Your Goods

To get your goods released, you can either present a full accounting and pay all duties or get your goods released prior to the payment of duties.

Presenting a full accounting means to have all your paperwork present and in good order. The B3-3 Canada Customs Coding Form is the main accounting document you need to fill out. For instructions, see the CBSA’s Importing Commercial Goods Into Canada – How to complete Form B3 when importing commercial goods (RC4229).

You will also need:

• Two copies of the Cargo Control Document (CCD), which will be provided by your carrier.
• Two copies of the Canada Customs Invoice (or the commercial invoice that contains the data).
• A paper copy of all import permits, certificates, licenses, or required documents from other government departments and agencies or an electronic copy for EDI participants with other government departments.

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How to mitigate  foreign exchange risk

What Is Exchange Rate Risk?

Exchange rate risk, or foreign exchange (forex) risk, is an unavoidable risk of foreign investment, but it can be mitigated considerably through hedging techniques. To eliminate forex risk, an investor would have to avoid investing in overseas assets altogether. However, exchange rate risk can be mitigated with currency forwards or futures.

• The exchange rate risk is caused by fluctuations in the investor’s local currency compared to the foreign-investment currency.
• These risks can be mitigated through the use of a hedged exchange-traded fund or by the individual investor using various investment instruments, such as currency forwards or futures, or options.
• Exchange rate risk isn’t completely avoidable but it can be mitigated.

How Exchange Rate Risk Works

For the U.S. investor, hedging exchange rate risk is particularly important when the U.S. dollar is surging since the risk can erode returns from overseas investments. For overseas investors, the reverse is true, particularly when U.S. investments are performing. This is because the depreciation of the local currency against the USD can provide an additional boost to returns. In such situations, since the exchange rate movement is working in the investor’s favor, the appropriate course of action is to go unhedged.

The rule-of-thumb, with regard to foreign investments, is to leave the exchange rate risk unhedged when the local currency is depreciating against the foreign-investment currency but to hedge this risk when the local currency is appreciating against the foreign-investment currency.

Here are two ways to mitigate forex risk:

• Invest in hedged assets: The easiest solution is to invest in hedged overseas assets, such as hedged exchange-traded funds (ETFs). ETFs are available for a wide range of underlying assets traded in most major markets. Many ETF providers offer hedged and unhedged versions of their funds that track popular investment benchmarks or indexes. Although the hedged fund will generally have a slightly higher expense ratio than its unhedged counterpart due to the cost of hedging, large ETFs can hedge currency risk at a fraction of the hedging cost incurred by an individual investor. For example, for the MSCI EAFE index—the primary benchmark for U.S. investors to measure international equity performance—the expense ratio for the iShares MSCI EAFE ETF (EFA) is 0.31%. The expense ratio for the iShares Currency Hedged MSCI EAFE ETF (HEFA) is 0.69.
• Hedge exchange rate risk yourself: Investors most likely have some forex exposure if their portfolio contains foreign-currency stocks or bonds or American depositary receipts (ADRs). A common misconception is that their currency risk is hedged, but that is not the case.

Special Considerations

You can hedge currency risk using one or more of the following instruments:

• Currency forwards: Currency forwards can be effectively used to hedge currency risk. For example, assume a U.S. investor has a euro-denominated bond maturing in a year’s time and is concerned about the risk of the euro declining against the U.S. dollar in that time frame. The investor can enter into a forward contract to sell euros (in an amount equal to the maturity value of the bond) and buy U.S. dollars at the one-year forward rate. While the advantage of forward contracts is that they can be customized to specific amounts and maturities, a major drawback is that they are not readily accessible to individual investors. An alternative way to hedge currency risk is to construct a synthetic forward contract using the money market hedge.
• Currency futures: Currency futures are used to hedge exchange rate risk because they trade on an exchange and need only a small amount of upfront margin. The disadvantages are that they cannot be customized and are only available for fixed dates.
• Currency ETFs: The availability of ETFs that have a specific currency as the underlying asset means that currency ETFs can be used to hedge exchange rate risk. This is probably not the most effective way to hedge exchange risk for larger amounts. However, for individual investors, their ability to be used for small amounts and the fact that they are margin-eligible and can be traded on the long or short side leads them to provide major benefits.
• Currency Options: Currency options offer another feasible alternative to hedging exchange rate risk. Currency options give an investor or trader the right to buy or sell a specific currency in a specified amount on or before the expiration date at the strike price. For example, currency options traded on the Nasdaq are available in denominations of EUR 10,000, GBP 10,000, CAD 10,000 or JPY 1,000,000, making them well-suited for the individual investor.

Exchange rate risk cannot be avoided altogether when investing overseas, but it can be mitigated considerably through the use of hedging techniques. The easiest solution is to invest in hedged investments such as hedged ETFs.

The fund manager of a hedged ETF can hedge forex risk at a relatively lower cost. However, an investor who holds foreign-currency stocks or bonds, or even American depository receipts (ADRs) should consider hedging exchange rate risk using one of the many avenues available such as currency forwards, futures, ETFs or options.

What is your contingency plans

An Overview of Business Contingency Plans

Posted By: Lucidchart Content Team

July102018

Natural disasters, data hacking, theft—your organization has likely prepared for catastrophes of this nature.

But what about smaller events? Like your biggest customer suddenly switching to a competitor? Or your entire sales staff getting food poisoning at their annual retreat?

Many circumstances have the potential to disrupt your business, or worse, shut your business down. A business contingency plan can save the day. The steps listed below will help you develop business contingency plans so you can prepare for the worst.

What is a contingency plan?

A contingency is defined as “a future event or circumstance that is possible but cannot be predicted with certainty,” either on a large scale, such as a natural disaster, or a small scale, such as employee theft.

A contingency plan is a roadmap created by management to help an organization respond to an event that may or may not happen in the future.

The purpose of a business contingency plan is to help your business resume normal business operations after a disruptive event. A contingency plan can also help organizations recover from disasters, manage risk, avoid negative publicity, and handle employee injuries.

By developing a contingency plan, your business can react faster to unexpected events. The faster your organization is able to get back up and running, the less damage your profits and revenues will take.

How to write a contingency plan

Thinking about all the possible risks to your organization can be overwhelming, but you can reduce that anxiety as you develop contingency plans. The four steps below show you how to develop a business contingency plan to help you prepare for the unexpected.

1. Identify the risks

Before you can prepare for a disaster, you need to know what disasters you’re preparing for. Think about all the possible risks to your organization, including natural disasters, sudden changes to revenue or personnel, or security threats.

As you’re brainstorming, involve individuals from other teams to ensure you’re preparing for risks to your entire organization and not just your department.

2. Prioritize the risks

Make sure you spend your time and resources preparing for events that have a high chance of occurring as you write and develop your contingency plan. For example, you may have listed earthquakes as a possible risk. However, if your area doesn’t experience many earthquakes, you wouldn’t want to spend all your time preparing for this event. If your area is prone to flooding, you should spend more of your resources preparing for floods.

To determine which risks are more likely to occur, use a risk impact scale. These charts will help you to estimate the likelihood that an event will occur and determine where to focus your efforts.

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