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Political and Legal Screening Every government in China, Germany, France, UK, USA, and Indonesia are implementing several

import regulation to control every commodities before the goods can enter the country. All of the countries required import licenses and permits for any imported goods (see table policy comparisons for the certain regulations). The quality is becoming a special concern in all of those countries which all imported goods are evaluated by State Administration for Import and Export Commodity Inspection (China), applying Conformity to European Standards Sign (EU), implement Uniform Safety Standard in USA (Winstar Global Logistic Ltd., 2012), while Indonesian government have law (Republic of Indonesia Act No. 7 of 1996) concerning Food that controls the quality of imported product (FAS Jakarta Staff, 2009). Import Tariff is different in each country. In China the tariff is 13 – 17 % (Winstar Global Logistics Ltd., 2012), the average rate in Germany is 16 %, France 19.6%, UK 17.5 % (Winstar Global Logistic Ltd., 2012), USA (2 – 10%) , and Indonesia 5 – 30 % (Encyclopedia of The Nations). European Union countries imposed that every novel food which will enter the EU countries will be assessed first by European Food Safety Authority (EFSA). Furthermore, policies such as food labeling in UK were supervised by The Food Standards Agency which based in EU labeling regulations (Foreign Affairs and International Trade Canada, 2012), the Food and Drug Administration (USA), and in Germany new types of food product have to receive authorization from Federal Office of Consumer Protection and Food Safety. Same condition occurs in Indonesia which foodstuffs have to be registered in Head of National Agency of Food and Drug Control (BPOM) to assess the quality and certified as ‘halal’ food from Majelis Ulama Indonesia (MUI). Both are required in order to obtain approval form (FAS Jakarta Staff, 2009). EU is also implementing the product liability law and phytosanitary standard and requirement, which the importers are responsible for the product they sell, and if the customer were hurt because of the product, the sellers have to provide compensation for the customer. Also product packaging has some restriction in EU countries due to the standard regulation from Environment Protection, Directive on Packaging and Packaging waste (Winstar Global Logistic Ltd., 2012). In France, all product labels have to be in French language and transaction above 12500 Euros must be sent through intermediary banking (due to monetary maximum restriction) and after all administration completed the commodities must be imported not longer than six month (Gauthier, Audran, & Henard, 2009). Importers such as Yamazaki Pan Company have to put several concerns before importing foods, such as receive ‘halal’ certification in Indonesia, minimize the packaging usage in EU countries, and establish product quality/phytosanitary standard in all those countries before it can enter the local market. Yamazaki also have to register first the foodstuff in local food bureau, to make sure that it has fulfilled standard quality and aligned with local regulation.

such as Jamsostek program in Indonesia. ‘unofficial administrative fee’ is needed). and the corruption risk is smaller (see table of policy comparison in appendix 2). the bureaucracy is completed in only one place (New York State Department of State). and company books needed to assessed by commercial court). The business tax issue must have not neglected by entrepreneurs to avoid any fraud among all those countries. because in USA. In Indonesia there are 9 local government bureaus to encounter while in USA about 5 local Government. France and USA implement pretty much the same business regulation. China and Indonesia have complex procedures because we need to go to different departments and have long time to complete the procedure. such as Germany new business need to obtain Gewerbeerlaubnis (trading permit) and register at Commercial Register and the professional association. Summarizing the step by step business regulation procedures in each country. France (put initial capital in Caisse des Dépôt. and Employer Identification Number (USA). such as Importer Identification Number (Indonesia). Insurance and Tax regulation must not be neglected when starting business in each country. Germany. NPWP (registration number of tax payer) is required in paying tax in local tax department. and Indonesia. identification number from Registre Nationale des Entreprise (France). EU countries have simpler step. since it has about 14 steps and have to encounter 12 different local government bureau plus an auditing firm to conduct initial capital audit (The World Bank Group. In all those countries. Indonesia. With the complex procedures. the employees have to be protected by health and social insurance or policy for employee compensation. Yamazaki Pan Company have to consider the local bureaucracy before entering the market. 2012). The similarities among those countries are the new entrepreneurs have to registers the company’s name in local governments department (see table country comparisons) to avoid copyrights and trademark issues from other established local company. 2012). 2012). and business taxes have to be paid in local tax bureau. since all of those countries have law to protect employee with insurance and paying business tax in local tax department.There are also different situation in encountering the business regulations in China. then publish a notice of incorporation of Company to Centre de Formalités des Entreprises (CFE). UK. EU countries and USA have shorter time to complete. . 2012). USA. Starts up business have to face local bureaucracy before running the business. Yamazaki have to be alert to indication of corruption in both countries (In Indonesia. to identify every businessman before import activities can be done (The World Bank Group. China has very complex bureaucracy in starting up new business (see Appendix 1 step by step business procedures). and UK the Company have to register at Companies House and contact HRMC for business tax (The World Bank Group. France. while in UK business have to be registered first in Her Majesty's Revenue and Customs or HMRC (The World Bank Group. In Indonesia.

UK. and technology transfer occured between both sides. China and Indonesia are much recommended for Yamazaki Baking Co to penetrate its market. Germany. 2011). Moreover. Japan – America relationship are in good condition as Japan is backing up USA to finance their national debts and Japan open up to foreign investment from USA (Cooper. have an advantage with the direct currency exchange agreement (See Appendix 3 summary of political condition). and France) have advantage in simpler bureaucracy in starting up new business and the Japanese bilateral climate is not so bad between each country. 2011). 2011). In the other hand. Good relationship also have been built between government of China and Japan. from the IJ-EPA agreement its government has unveil the entry barriers from Japanese product. we believe that importing goods to EU countries are not so rigid. USA. but again Yamazaki Baking Co must not forget the local policy and regulation in each country (see table of policy comparison). The banned policy lifted in May 2011. the political climate of Japan and those countries becoming important things to put concern. The impact of the agreement is that lower tariff is implemented from the product from Japan. France. 2011. UK). 2011). The rest of the countries (Germany. but the tradeoff is the very complex bureaucracy in starting up new business & the additional certification to import food. These also becoming ‘binding agreement’ between two sides as political partners and make the bond stronger (Shiojiri. Japan also participate the Trans-Pacific Partnership.The other consideration is a political relationship between Japan and other countries (UK. without converting into dollar first (BBC. the tsunami disaster in Japan in early 2011 makes China banned food commodities from Japan to avoid nuclear contamination in food. or vice versa. a regional free trade agreement between Asia Pacific and USA (plus Australia & Chile) which reduce trade entry barriers for its member (Cooper. both of EU and Japan were agreed on free trade agreement and economic partnership agreement (European Commission. and Indonesia). Ministry of Foreign Affairs of Japan. Since Yamazaki Baking Co is Japanese corporation. 2011). . While Indonesia. China. One of the results is ‘agreement of direct currency exchange’ means that the transaction can be conducted directly from Yuan to Yen. because of the good relationship between two of them. China. Indonesia have good bilateral relationship to Japan since the Indonesia-Japan Economic Partnership Agreement (IJ-EPA) were signed in 2008 (Yulisman. started with the discussion between Vice Premier China and Japan’s foreign minister which aim is to toughen economic cooperation and trade issues between both sides. From the European Union Countries (Germany. 2012). France. but some of prefectures in Japan have to attach certification of safety inspection for radioactive materials for foodstuffs (Xinhua. 2011). In the future. USA. Recently.

Retrieved February 23. (2011. Retrieved February 19. X. Bilateral Relations.gc.). Audran. France Food and Agricultural Import Regulations and Standards .).tradecommissioner. from Encyclopedia of The Nations: http://www. Retrieved February 24.nationsencyclopedia. (2012. Indonesia . (2009). 2012. FAS Jakarta ures_in_Chin_11792. (2011.wikia. from Foreign Affairs and International Trade Canada Web site: http://www. February 16). Encyclopedia of The Nations. French Political and Legal System--Import Laws/Regulations.html Gauthier. 2012.). International Business Wikia. from European Commission Web Site: http://ec. Ministry of Foreign Affairs of Indonesian Customs Guide. 2012. Import Regulations : Packaging. Summit Meeting (Summary). Import Regulations . Retrieved February Cooper. & Henard..chinaassistor. August 5).Bibliography BBC. (2010). from guide. from Ministry of Foreign . M. (2009).d. and Policy Options.html#b European Commission. R.Customs and duties. Countries and Region : Japan. 2012.S. from International Business Wikia: http://internationalbusiness. Prospects. China and Japan plan direct currency exchange agreement. Deloitte. (n. Retrieved February (n.chinaassistor. Federal Ministry of Economics and Technology.d. (n. June 7).html Foreign Affairs and International Trade Canada. Import restrictions & licensing procedures in China. from German Business Portal: Retrieved February 20. Global Agricultural Network. (2011).com: http://guide. (2011.United Kingdom. Indonesia Food and Agricultural Import Regulations and Standards – Narrative (Indonesia). Global Agricultural Information Network.jsp?did=40706 foreignercn. 2012.S. 2012. from BBC News : Business: http://www. Congressional Research Service.-Japan Economic Relations : Significance.Narrative.d. November 18).europa. 2012. Retrieved February 24.german-business-portal. December 26). U. Retrieved February 18.. (2008.

Retrieved February 19.wsgl. Retrieved February 24. Retrieved February China loosens import restrictions on food. 2012.html Shiojiri. (2012).doingbusiness. 2012.doingbusiness. Retrieved February 18. Customer Guideline : EU Import Requirements. farm produce from Japan.go. from Winstar Global Logistic: www.go.html The World Bank Group. 2012.wsgl. (2012). Starting a Business in United The World Bank Group. from Doing Business : Measuring Business Regulation: http://www. 2012. from Doing Business : Measuring Business Regulations: http://www. (2012). (2011. 2012. Retrieved February 18. The World Bank Group.mofa. Retrieved February 18. Retrieved February 20. (2012). (2012). (2012).org/data/exploreeconomies/unitedkingdom/starting-abusiness The World Bank Group.emb-japan.htm Winstar Global Logistics Ltd. Customer Guideline : USA Import Requirements. 2012. Starting a Business in Germany. June 21). (2012).htm Xinhua. Time to Deepen EU-Japan Relations. K. from Doing Business : Measuring Business Regulations: http://www. Retrieved February 20. Starting a Business in China. from Winstar Global Logistic: The World Bank Group. from Doing Business : Measuring Business Regulations: http://www.doingbusiness. from English People's Daily Online: http://english. Starting a Business in United States. from Doing Business : Measuring Business Regulations: http://www. Retrieved February 19. (2011. from Winstar Global Logistic: http://www. The World Bank Group. Starting a Business in Indonesia. November 24). Retrieved February 18.Affairs of Japan Web Site: http://www.htm Winstar Global Logistic Ltd. 2012. Customer Guideline : China Import Requirement. from Doing Business : Measuring Business Regulations: http://www. (2012).cn/90001/90776/90883/ .org/data/exploreeconomies/unitedstates/starting-abusiness Winstar Global Logistic from The Mission of Japan to the European Union: http://www. Starting a Business in Retrieved February 18. (2012).

Register for both state and local tax with the tax bureau 9. Apply for the authorization to print or purchase financial invoices/receipts 12. China. govt at odds on RI-Japan partnership. from The Jakarta Post: http://www.Open a formal bank account of the company and transfer the registered capital (after verified by auditing firm to the account 11. there are step by step business regulations procedures in Germany. then deposit initial capital in the account in order to obtain the certificate of deposit 3. and Indonesia. China The Procedure is (The World Bank Group. Open a preliminary bank account. UK.html Appendix 1 Bureaucratic and Legal Considerations in Opening Business in Several Countries Every country has regulation in controlling the business to make sure the business is legal and not against the law. Apply with the local statistic bureau 10. Approval from police department is needed to make a company seal 6. 2012. 2012): 1. Obtain a notice of pre-approval of the company name 2. France. Obtain registration certification “business license of enterprise legal person” with State Administration of Industry and Commerce 5.Yulisman. United States. L. (2012. In this appendix. Business February 2). Retrieved February 20. Attain the organization code certification issued by the Quality and Technology Supervision Bureau 8.Pay for uniform invoices . Obtain capital verification report from an auditing firm 4. Make a company seal 7.

pay money for company books (minute books. apply request for a company’s registration by the Centre de Formalités des Entreprises (CFE) 5. Mail out the documentation to the Tax Office France The Procedure is (The World Bank Group. Check uniqueness of company name at the local chamber of industry and commerce to avoid copyright 2. Apply with the relevant trade of professional association 7. Notify the local labor office of the establishment of the company 8. 2012): . issue a notice of incorporation of the company 4. Register employees for health and social insurance 9. 2012): 1. Report the local office of business and standards of the establishment of the company 6. A notary is needed to notarizes the articles of association and memorandum of association 3. Register with Social Welfare Insurance Center Germany The Procedure is (The World Bank Group.13. local bank. or Caisse des Dépôt 3.Contact local career service center to apply for recruitment registration 14. Check uniqueness of company name by the Institut National de la Propriété Industrielle (INPI) to avoid copyright 2. Open a bank account to deposit initial capital 4. ledgers) in order to be stamped and initialed by the clerk of the commercial court Indonesia The Procedure is (The World Bank Group. which then will be set aside at local courts 5. 2012): 1. inventory books. Deposit the initial capital through notary. Notary public files the articles of association with the local commercial register.

SIUP) and the company registration certificate (Tanda Daftar Perusahaan/TDP) in Ministry of Trade 6. 2012): 1. obtain a taxpayer registration number (NPWP) and a VAT collector number (NPPKP) United Kingdom The Procedure is (The World Bank Apply document of incorporation by the Registrar of Companies at Companies House 4. 2012): 1. Register as an employer with the Unemployment Insurance Division of the state Department of Labor 5. Apply for the permanent business trading license (Surat Izin Usaha Perdagangan. Arrange for workers' compensation insurance and disability insurance . Contact HMRC (Her Majesty's Revenue and Customs ) to apply for VAT (value added tax) 5. Apply to the Ministry of Law and Human Rights for approval of the deed of establishment 5. Check name for uniqueness to avoid copyright at companieshouse. Apply for the Workers Social Security Program (Jamsostek Program) or independent social security program agency web site 2. Obtain the standard form of the company deed (need local notary to reserve electronically) and company name have to be checked first at Ministry of Law and Human Rights to avoid copyright 2. Reserve the company's name and file the organizational company articles in New York State Department of State (Division of Corporation) 2.1. Notarize company documents before a notary public 3. Contact HMRC (Her Majesty's Revenue and Customs ) and register for PAYE (pay-as-youearn) 6. Sign up for employer’s liability insurance United States The Procedure is (The World Bank Group. then fill out and sign Form IN01 (application for registration) which can be obtain in the same web site 3. Register to collect State sales tax in New York State Department of Taxation and Finance 4. Apply for federal identification number (EIN) for tax and employer principle 3. Prepare memorandum and articles of association. Register with the Ministry of Manpower (company that employed > 10 person have to be registered) 7. Pay the State Treasury for the non-tax state revenue (PNBP) through notary 4.

6. Arrange for publication and submit certificate and confirmation of publication Appendix 2 .

Table of Policy Comparison between Countries * depends on every cities and states around USA ^ Value is depends on amount of the share capital .

Appendix 3 Summary of Political Condition .