Overseas Manufacturing and Clearing Goods Through Customs

When importing into a country, there are a number of terms, regulations and procedures an importer should be familiar with. The following is a guide of different issues to be aware of when importing.

For first time importers, it is highly advisable to pay a customs broker to enter and clear goods through customs. Customs brokers are licensed by the countries in which they operate, and they act on behalf of the importer to file the necessary documents for products to enter a country at the port-of-entry. Depending on their relationship with their client, they may also pay customs duties and other importing expenses on their client's behalf. Finally, they advise importers about issues of which they may need to be aware such as country or origin marks and other issues importers need to be aware of.

When choosing a customs broker, the importer should first make sure they can enter goods at the arrival port. In the US, customs brokers are licensed by the US Customs and Border Protection Service.

Prior to placing an order with a manufacturer, the relevant nation's customs agency and the importer's customs broker should be consulted to avoid possible problems such as the following:

  • Any legal issues that may exist with the product in the country of import.
  • Finding out after the product arrives at port that the it is subject to import quotas.
  • Possible health, safety or other regulations which apply to the product to be imported.

One easy to avoid, but common problem encountered when importing is the failure to mark the product in compliance with country of origin regulations. To avoid this, contact the relevant customs agency of the nation where the merchandise will be imported to ensure the goods are in compliance. For example, custom laws in the US require each imported good be marked with the English name of the country of origin (eg China) as reasonably, indelibly, and permanently as the nature of the article permits. Furthermore, this marking must be visible to the ultimate purchaser of the product.

The tariff rate levied by customs must be paid before the importer can take possession of the goods. While tariff rates in countries like the US average around 5% for most products, they can be significantly higher for some goods, particularly those with higher labor content. Therefore, it is important to know the rate before product arrives at port.

Before the goods are shipped, ensure the packing regulations for the destination country have been adhered. For example, every box, bale or case may need to be numbered with the exact quantity in each.

Other regulations include the type of pallets that can be used.

Problems with customs clearance often center around paperwork. Different goods often require different types of documentation, but the three major types of documentation the shipper must prepare include the following:

1. A bill of lading: This document, issued by the carrier or shipper, is basically a receipt of the goods acknowledging that they have been received on the vessel for shipment. This document indicates the particular vessel on which the goods have been placed, the destination of the goods, and the terms for transporting the goods to their final destination.

2. A commercial invoice: This is used as a customs declaration by the entity that is exporting an item across international borders. This document is required by customs to determine the value of the goods to assess duties and taxes, and goods must be invoiced in a systematic manner.

3. Packing list: This document is an itemized detail of the merchandise in a particular shipment. A copy is usually attached to the outside of the shipping container or inside the container itself so the merchandise may be counted by the person opening it.

It is crucial to make sure these documents, and any others that may be needed for a particular shipment, are carefully completed and reviewed before the goods arrive.

To avoid excess storage fees, arrange for a freight forwarder or some other type of transporter to ship the goods to their final destination as soon as they have cleared customs.

Being aware of these points, as well working closely with customs and a customs broker, will make the importing process smoother and will reduce the possibility of unnecessary difficulty or expense.

Entrepreneurship: What does it REALLY mean?

Introduction:

In a world where ideas drive economies, it is no wonder that innovation and entrepreneurship are often seen as inseparable bedfellows. The governments around the world are starting to realize that in order to sustain progress and improve a country’s economy, the people have to be encouraged and trained to think out-of-the-box and be constantly developing innovative products and services. The once feasible ways of doing business are no longer guarantees for future economic success!

In response to this inevitable change, some governments are rethinking the way the young are educated by infusing creative thinking and innovation in their nation’s educational curriculum. In the same vein, they are putting much emphasis on the need to train future entrepreneurs through infusing entrepreneurship components within the educational system, especially at the tertiary level.

Some countries have taken this initiative to a higher level by introducing entrepreneurship education at elementary schools and encouraging them to be future entrepreneurs when they are of age. In a series of survey funded by Kauffman Center for Entrepreneurial Leadership, it was found that nearly seven out of 10 youths (aged 14-19) were interested in becoming entrepreneurs.

Being an entrepreneur is now the choice of the new generation as compared to the preferred career choices of yesteryears such as being a doctor, lawyer or a fighter pilot. In a recent visit to the bustling city of Shanghai in China, an informal survey was carried out among Chinese youths by the author. The results of the survey showed that being an entrepreneur, especially in the field of computer and e-commerce, is perceived as a ‘cool’ career and is an aspiration for many Chinese youths Prior to the ‘opening up’ of modern China, being an entrepreneur was perceived as the outcome of one’s inability to hold a good government job and those who dared to venture, were often scorned at by their peers. Times have indeed changed.

With this change in mindset and the relative knowledge that entrepreneurs bring forth increased job creations, the awareness and academic studies of entrepreneurship have also heightened. In many tertiary institutes, many courses of entrepreneurship and innovation are being developed and offered to cater to the increasing demand. The term “entrepreneurship” has also evolved with numerous variations. The proliferation of jargons such as netpreneur, biotechpreneur, technopreneur and multipreneur are coined to keep up with the ever-changing times and business conditions that surround us.

In view of these changes, it is important that the definition of entrepreneurship be refined or redefined to enable its application in this 21st century. To put it succinctly, “Good science has to begin with good definitions (Bygrave & Hofer, 1991, p13).” Without the proper definition, it will be laborious for policymakers to develop successful programs to inculcate entrepreneurial qualities in their people and organizations within their country.

The paper will provide a summary of the definitions of entrepreneurship provided by scholars in this subject area. The author will also expand on one of the definitions by Joseph Schumpeter to create a better understanding of the definition of the term “entrepreneurship” as applied in today’s business world.

Entrepreneurship through the Years:

It was discovered that the term ‘entrepreneurship’ could be found from the French verb ‘entreprende’ in the twelfth century though the meaning may not be that applicable today. This meaning of the word then was to do something without any link to economic profits, which is the antithesis of what entrepreneurship is all about today. It was only in the early 1700′s, when French economist, Richard Cantillon, described an entrepreneur as one who bears risks by buying at certain prices and selling at uncertain prices (Barreto, 1989, Casson 1982) which is probably closer to the term as applied today.

In the 1776 thought-provoking book ‘The Wealth of Nations’, Adam Smith explained clearly that it was not the benevolence of the baker but self-interest that motivated him to provide bread. From Smith’s standpoint, entrepreneurs were the economic agents who transformed demand into supply for profits.

In 1848, the famous economist John Stuart Mill described entrepreneurship as the founding of a private enterprise. This encompassed the risk takers, the decision makers, and the individuals who desire wealth by managing limited resources to create new business ventures.

One of the definitions that the author feels best exemplifies entrepreneurship was coined by Joseph Schumpeter (1934). He stated that the entrepreneur is one who applies “innovation” within the context of the business to satisfy unfulfilled market demand (Liebenstein, 1995). In elaboration, he saw an entrepreneur as an innovator who implements change within markets through the carrying out of new combinations. The carrying out of new combinations can take several forms:

The introduction of a new good or standard of quality;

  • The introduction of a novel method of production;
  • The opening of a new market;
  • The acquisition of a new source of new materials supply; and
  • The carrying out of the new organization in any industry.

Though the term ‘innovation’ has different meanings to different people, several writers tended to see “innovation” in the form of entrepreneurship as one not of incremental change but quantum change in the new business start-ups and the goods/services that they provide (egs, Bygrave, 1995; Bygrave & Hofer, 1991).

In the view of Drucker (1985), he perceived entrepreneurship as the creation of a new organization, regardless of its ability to sustain itself, let alone make a profit. The notion of an individual who starts a new business venture would be sufficient for him/her to be labeled as an entrepreneur. It is this characteristic that distinguishes entrepreneurship from the routine management tasks of allocating resources in an already established business organization. Though the definition tends to be somewhat simplistic in nature, it firmly attaches the nature of entrepreneurial action with risk-taking and the bearing of uncertainty by the individual (Swoboda, 1983)

In a Delphi study, Gartner (1990) found eight themes expressed by the participants that constitute the nature of entrepreneurship. They were the entrepreneur, innovation, organization creation, creating value, profit or non-profit, growth, uniqueness, and the owner-manager. The themes could be seen as a derivative and expansion of Schumpter’s earlier concept.

Expanding on Schumpeter’s Definition:

After digesting the numerous definitions of entrepreneurship, one would tend to see a strong link between these two terms: entrepreneurship and innovation. In retrospect, most of the definitions tended to be, to some extent, a re-work and expansion of Schumpeter’s definition of entrepreneurship (which is that of innovation being applied in a business context).

As defining the term of ‘innovation’ is highly debatable and would merit a paper on its own, the author has thus, for convenience, summarised the definition of innovation. Innovation can be perceived simply as the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or improved products, technology, or services.

In the author’s opinion, the difficulties of defining “innovation” could be the reason for the quandary one finds in attempting to arrive at a clear-cut definition of the term ” Entrepreneurship”.

Take for example, if someone starts another run-of-the-mill hot dog stand in the streets of New York, will he termed as an entrepreneur? According to Drucker’s definition, he will be seen as one. However, if the above definition by Schumpeter was used as a guideline, the answer is probably ‘NO’.

Why? The core of the matter lies in what is so innovative about setting up another hot-dog stand which are in abundance in New York. On the contrary, if he is the first one to start a stand selling hot-dogs with Oriental Sweet and Sour sauce topping; he could be termed as an entrepreneur (even based on Schumpeter’s requirement) as he has done what others have not done before. In the context of entrepreneurship, creativity and innovation are key points in the whole scheme of things.

In this manner, by adding “innovative” features to a product or services and setting up a business based on these additional features to compete in the existing market, new entrants may be able to gain this competitive advantage over existing market players.

In the case of the hot-dog seller, it may be argued that his addition of Oriental Sweet and Sour sauce toppings may be seen as nondescript. This runs in contrary to some scholars’ definition of entrepreneurship as requiring quantum changes in the products/ services to be justified as being entrepreneurial (Bygrave, 1985; Bygrave & Hofer, 1991).

Consistent with creating new products for sale, someone who starts a business by providing a totally new way of serving his customers/ clients is considered to be entrepreneurial too. Though, it is often argued that there are no real new products or services in a case where one does not look to the past products and services for ideas for improvements. Thus, the notion of incremental improvements should be accepted as being innovative too.

Innovation in the business sense may not necessarily involve, in the physical sense, the introduction of a new product or service. It can be in the form of what is commonly known as creative imitations. For example, if an individual starts selling a product that is already common in his area or country, he will not be seen as being entrepreneurial. However, if he is the first to sell the same product in a virgin locale or to an untouched market segment, he will be seen as an entrepreneur in his own rights.

Take Muhammad Yunus, for example. Yunus became an entrepreneur when he started a micro-loan program for the poor villagers in a rural part of Bangladesh named Grameen, with only US$26. The loan was divided among 42 villagers to assist them to buy small items such as combs, scissors, needles and other necessities to start their own home businesses. In the past 22 years, Grameen Bank has grown with over $2 billion loans granted. It has now become a model for several micro-loan facilities.

>From the following example, Yunus created banking and lending facilities in Grameen specifically for the poor villagers. Banking and lending money activities are not new but Yunus was the first to provide such facilities in a rural part of Bangladesh and that is definitely innovation and risk-bearing on his part as a social entrepreneur. In short, innovation need not arise mainly from a new product or service but it could be an old product or service finding a new market for penetration.

An individual could be termed as an entrepreneur if he or she sells a product or service using new systems and/ or mediums of marketing, distribution or production methods as a basis for a new business venture. A good example will be Jeff Bezos, the founder of Amazon, the successful Web-based bookstore. He was one of the first to sell books on a large scale using an online store and also patented the one-click system for online buying. Though selling books is not an innovation in itself, Jeff Bezos was innovative in the use of the Internet then as a viable marketing and sales channel for selling books.

Another example from the field of e-commerce is Stuart Skorman, the founder of Reel.com [http://Reel.com]. Reel.com [http://Reel.com] is essentially one of the first cyber movie store with a very large inventory of over a 100 000 videos. Though setting a movie store was revolutionary then, Reel.com [http://Reel.com] main distinction was being known as the first online store to expand by opening an offline store. The founder felt that by doing so, the online store could be an advertisement for the offline store and vice versa, thus strengthening this click and mortar business venture- an example of creativity and innovation applied in a profitable business context.

Conclusion:

This paper has started as an attempt to redefine the term of entrepreneurship but ended up ‘updating’ the wheel, based on the definition as proposed by Schumpeter. The paper expanded on this influential work by giving examples to illustrate what innovation in entrepreneurship was and hope that along the way, new insights were unearthed in the study of defining entrepreneurship.

In summary, the author hopes that this paper would further encourage the infusion of creative thinking and innovation within the educational system to nurture future entrepreneurs with a competitive edge. In the author’s view, the characteristics and capabilities to set up a new business venture based on doing things that have not done before should be encouraged. Innovation needs to be the cornerstone of entrepreneurship as opposed to the mere setting up of another new enterprise without implementing changes or adding features of improvements to the products and services provided and/ or its business processes.

Shanghai Hotels – Hot Holiday Destination!

If you are planning to spend your next holiday vacation in a colorful city where you can perfectly enjoy the combination of Eastern and Western cultures then, without an iota of doubt, Shanghai would be your perfect destination. The largest city of China has all, which you, while being a modern person, would love to see and spend time with.

For its wonderful weather, excellent city beauties and natural attractions, Shanghai has always been a central of attractions for the travel enthusiasts of all around the globe; records say that eminent personalities like Bernard Shaw, Albert Einstein and Tagore visited this place a number of times.

With the growing popularity of Shanghai, travel and tourism industry has been massively developed in the city. According to a recent data, the tourism industry earns billions of dollars every year, so you can understand how demanding the city is in terms of a hot travel destination.

You see, in highly demanding travel destination it often becomes difficult to find great quality hotels at cheap price; but fortunately Shanghai is a place where you will not encounter the same problem. The Shanghai hotels industry offers you the facility to live comfortably while giving less pressure on your accounts book.

Cheap hotels not always mean dirty and unclean environment, if you stay at a small inn then you can experience Shanghai’s local food and discover its warmth culture with ease. If you are an avid traveler then you know that the small lodges will help you to get introduced with the local people, food and culture.

At the affordable Shanghai hotels you might not find the Three Star and Five Star luxury, but you will definitely experience the comfort and friendly people which will ensure that you have a pleasant holiday vacation. You will find each and every room and bathroom of these affordable Shanghai hotels very clean and hygienic. In a calm environment you will be offered good quality foods at very affordable prices. In short, the affordable Shanghai hotels will reduce your accommodation and food expenses and you can easily use the money for other activities like traveling and shopping.

The smartest way to look and book an affordable Shanghai hotel is doing so through an online portal. Over the internet, you will find a number of travel portals and traveling service providers and from there you can easily book your ticket to Shanghai and Shanghai hotels.

How Do Chef Schools Work?

Culinary schools give aspiring chefs their best shot at making it to the big time, especially those admitted by the American Culinary Federation. Just like any other profession, many of the better hospitality establishments base their hiring practices not only upon the length of education the applicant provides, but also where that education was obtained. Tuition runs the gamut from relatively inexpensive courses offered by local community colleges all the way to the Culinary Institute of America's breathtaking $ 40,000 price tag. And what does not tuition cover? Oh, just uniforms, textbooks, cutlery, and other necessary kitchen equipment.

Curriculum different from school to school, but most of the culinary student's time is consumed in learning the ins and outs of cooking by actually doing it under close supervision. Participants not only prepare food, but also learn how to plan menus, minimize food costs, buy food and supplies in quantities, and how to appropriately choose and store food. Learning proper hygiene and local public health rules also play a large part in a culinary student's education.

Classes are sometimes offered all day, taking a complete eight hours, while at some schools, classes are broken into morning and afternoon sessions. There are usually lectures, and then demonstrations followed by hands-on practice time with students applying the techniques demonstrated earlier. Some schools even offer part-time professional classes to accomodate working cooks wanting to increase their formal education.

A number of educational seminars are available, among them:

The American Academy of Chefs Chair's Scholarship – Ten $ 1,000 scholarships awarded each year

The American Academy of Chefs Chaine des Rotisseurs Scholarship – Twenty $ 1,000 scholarships awarded annually

National Restaurant Association Educational Foundation (NRAEF) – Three annual $ 2,000 scholarships for high school seniors and undergraduate students

Because years of training and experience are needed to reach the level of executive chef in most well-paying restaurants, many students are serious about this profession beginning their training in high school through voluntary programs, then go on to a two- or four-year college or university. Apprenticeship programs offer more training afterward, and these come from individual eating establishments and are given by a personal mentor or from professional institutions and associations such as the American Culinary Federation.

Apprenticeship lasts usually about three years and is most often known as the years of "grunt work" – doing all the chopping, grating, peeling, slicing, and washing necessary to prepare the ingredients for the chefs. Even cleaning appliances, sweeping and mopping floors, and other seemingly unaffiliated "chef" work gets done by the apprentice as part of his or her learning experience. Often this "trial-by-fire" period separates the truly devoted caf├ęs-to-be from those who are merely good cooks.

It is not impossible to attain the status of executive chef without the benefit of formal education, but in today's job market, most establishments (especially the finer hotels and restaurants) now require some type of certification to work in this capacity. Like a degree of any sort, formal training in the culinary arts may not mean you are another Julia Child or Paul Prudhomme, but it does at least signify that you've got what it takes to get through the school. So stop trying to think of ways to take shortcuts, get your tuition together, and go learn what you need to attain your dream!