Thursday, June 05, 2008

Rosewood Case Study: Customs Procedures

Rosewood Case Study: Customs Procedures

Should Rosewood find a viable, cost effective and profitable supplier for these wood veneer products automated customs clearances exist such as CADEX and ACROSS which will require considerable examination of permits and certificates issued in Brazil on any CITES listed products let alone wood products concerning agricultural and environmental safety standards.

RMD is available on suitable bonds coverage of taxes and duties, the PARS system provides advance fax or EDI transmission to expedite customs clearances. The most relevant process for a monthly delivery would be the FIRST system where compliance and reliability of importer and carrier are proven over time. It would appear a preferred method of customs clearance which might necessitate transitional processing through the first two steps over a period of time.

However concerning modern day slavery in Brazil, companies like DLH Nordisk Inc., and BR-111, both importers of exotic hardwoods in the US are being pressured by consumers to voluntarily suspend imports without Forest Stewardship Council Certification by consumers and human rights advocacy groups such as: The International Labor Rights Fund, Greenpeace International, Environmental Defense, Rainforest Relief, and the World Wildlife Fund-Brazil. Rosewood could expect similar pressure in Canada.

The discordant voice such as that of Knight Ridder editorials regarding the presence of WMDs in Iraq prior to the second Iraq War, a single voice based upon available data, which provided evidence of business or political cognitive bias in collective decision making and fully recounted at PBS Frontline "News War" is of importance to Rosewood's designation as an importer of a controlled product. New regulations could quickly arrive which cut off any supply from Brazil without Forest Stewardship Council Certification.

Canadian businesses need to be wary of possible liabilities in supplier relationships in Brazil which may effect future delays in free import of Brazilian products to Canada due to public sentiment. Clearances, permits, public information, and consumer sentiment effect regulations in Canada. I wonder how many Chinese toy importers possessed FIRST system privileges prior to the poisoning issues?

No comments: