Product

Product Name: Aguadeño Hat.

Product Description: A hat is a piece of clothing, which is used specifically to cover the
head and protect it from the sun, the cold or even mark the wearer's social status, which
consists of a crown and a brim.

Component Description: The raw material to make the hat is extracted from a palm called
“Palm Iraca”, the fiber with which it is made is extracted from the heart of the plant, the
fiber is extracted, and then it is cooked and dried in the shade.

Target Market

Chile is a country rich in handicrafts due to its culture, these work in artisan haute couture,
in the South West of America today there is a desire to recover, defend and promote the
magic of handicrafts in designers and in consumers, who see the contribution of ancestral
wealth and fashion from a broader and more diversified concept.

Target Market Demographics (For Example, Age, Income, Interest): Our export of
Aguadeño Hat was carried out by a fashion manufacturing company, which is in charge of
making garments, these garments are unique since their specialty is handmade haute
couture.

Conveyance

Type Of Transportation: Two means of transport were taken, the Terrestrial and Maritime.

Packaging: The product must be packed in cardboard boxes, these will have a capacity for
75 Aguadeños Hats.
Film paper: It´s used to cover cardboard boxes, which will give them resistance and greater
coverage.

Transport Cost: For the export of the hat product, three types of transport were carried out
and their costs were as follows:

1. The shipment from Quindío to Buenaventura by land, had a cost of USD 793.40.

2. The shipment from the port of "Agua Dulce-Buenaventura" to the "Port of San Antonio-
Chile", was by sea, at a cost of USD 1,405.

3. The shipment from the "port of San Antonio-Chile" to "Santiago de Chile" was made by
land, had a cost of USD 230.46.

Transportation Reliability: Shipping has become increasingly reliable as containerization,

intermodal shipping, double stacking, and larger vessels have reduced the cost of moving
goods. At the same time, as the information age offers data almost instantaneously, high
manufacturing can include the quotation of freight rates and the scheduling of incoming
and outgoing shipments in the negotiation of contracts.

TRANSPORT SPEED: Transportation from its point of origin to the destination point lasts
a total of 15 days.

Shipping Company

Name Of The Shipping Company: For this export we will take the shipping company
HAPAG-LLOYD, since it is the most qualified and reliable in the market.

Target Market Experience: The Sombreriando Company has been established for two years
in the department of Quindío - Colombia, for the handling of raw materials and the
manufacture of hats, during this time we have had good experience in exports, as follows:

 Export history.
 Age of the company in the current business.

 Scope of your current market: local, regional, international.

 Evolution of turnover in recent years.

 Typical sales formula: representative, sales team, combination of both, distributors.

 Experience or training in international trade in the management team.

 Level of professional knowledge in international trade.

Documentation Provided For Customs Clearance:

• Registration of a special program of samples without commercial value

• The PEX (Special Export Programs) certificate, at this point it is important to take into
account that with the new customs statute 390/2017 the Authorized Economic Operator-
OEA enters into force (a topic that will be discussed in more detail later).

• The energy or gas supply contract.

Shipping Terms

Liability For Transportation Costs:

Operating costs, travel costs, capital costs.

Liability For The Insurance: Covers the contractual and non-contractual legal liability of
the insured for patrimonial and non-patrimonial damages, arising from its activity for
claims that it may receive from third parties in the course of its operations.

Liability For Customs Tariffs: Tariffs give domestically produced goods a price advantage
over similar imported goods, and are a source of revenue for governments.

Container Information (Size, Load, Etc.): A container or container is a cargo container

intended for both international and national transport by sea, fluvial, land and/or air routes,
which is identified by an alphanumeric number "HP VU0126140”, denomination of 20 feet,
which inside transports 200 cardboard boxes with 75 hats each for a total of 15,000 units of
hats.
Customs Clearance

Customs Regulations In The Destination Market:

• Shipping document.

• The original commercial invoice.

• Assurance certificate.

• Sworn statement on the price of the merchandise.

• Mandate.

•Certificate of origin.

•Packing list.

•Note of expenses.

• Permits, visas, certifications or approvals.

Necessary Documentation For Customs Clearance:

Commercial invoice.

•Transport document.

• Declaration of customs value.

• Proof of origin.

• Import licenses.

• Inspection certificates (sanitary, veterinary and phytosanitary).

Product Import Requirements

• Original shipping paper: Original bill of lading (by sea), international bill of lading (by
land), or air waybill (by air).

•Commercial invoice.

• Certificate of insurance with the amount of the premium paid.

• Power of attorney: In case the process is handled by a third party.

• Certifications or approvals when necessary for a particular merchandise.

Distribution Channel

Direct Sales, Distributor, Agent:

• Companies producing hats.

• Importers wholesalers distributors.

• Retailers: -specialized handicraft stores, -clothing chains, -independent stores, -

department stores, -stalls in artisan squares.

Advantages And Disadvantages Of Each Distribution Channel:

Direct Channel

Advantages

• It has a relatively low cost.

• Possible global reach.

• No profit sharing with a distributor.

• 24-hour availability (in the case of internet sales).

• Immediate sensitivity of consumer reaction.

Disadvantages

• Competition gains strength at the regional level.

• Low volume in sales.

• Mistrust of online buyers.

Indirect Channel

Advantages

• Own financing and sales organization.

• Make the product known faster in the market.

• Stock maintenance.

• Management of different product lines.

Disadvantages

• Competition at the point of sale.

• Greater investment in advertising.

• Purchase volumes established by the distributor.

Distribution Plan

Storage And Transportation Of The Product: The product is manufactured in the

department of Quindío, from there it is transported in a 20-foot container, by land to the
Port of Aguadulce in the city of Buenaventura; It is then sent by sea to the "Puerto de San
Antonio" in Chile.

Delivery To The Final Customer: While in the port of Chile, the merchandise is
nationalized and then transferred by land to the buyer's warehouses where it is delivered
there so that it can be disposed of and sold to the final consumer.

Monitor And Adjust

Logistics And Distribution Monitoring Plan: Distribution logistics is an area that requires
very detailed and meticulous strategic planning. It is not only about taking it from point to
point, but also about designing a delivery process based on the maximum saving of
resources, rapidity in transport times.

Bibliography

https://www.hapag-lloyd.com/es/home.html

https://www.sbseguros.co/empresas/seguro-transporte-maritimo/rc-maritima

https://www.bizlatinhub.com/es/importacion-exportacion-chile/
http://adcasa.com.gt/publicaciones/33-canales

https://www.embalajesterra.com/blog/cajas-de-carton-industria-embalaje/

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