ImportingGreen Tea from China to United States
ImportingGreen Tea from China to United States
Teais the most broadly consumed refreshment on the planet. The businesssector for tea such as the import of green tea from China to UnitedStates is expanding rapidly. The rising consumer awareness concerningthe health dangers of carbonated beverages is prompting a movementtowards Teas of different varieties. Another driver is the growingawareness by consumers that a certain type of Tea can both avert andcure some different types of diseases. Aging populaces in the UnitedStates, Japan, and Europe likewise are increasing demand for Teabecause of its anti-ageing properties (Zhang, 2014).
Becauseof these trends, Tea is now an essential commodity found inrestaurants, health and natural foods stores, medication stores,Tearooms and mass merchandisers, supermarkets among others. New Teabrands and items are emerging week by week. Additionally, researchersare working on pharmaceutical products based on Tea (Foley et al.,2008).
Theworldwide business sector for Tea was substantial and estimated at15.4 billion USD in 2013, in terms of production value.Notwithstanding the blasting interest for Tea, little has beenpublished on this business sector, particularly the Green and Herbalfragments. This report looks in subtle element at the Tea market.Particularly, it gives the analysis of importing green tea from Chinato United State, competitive environment, and the trends prices.
Teaindustry is one of the customary commercial enterprises in China, andit is a basic vocation industry with evident competitive advantagesin China. The China’s economy has grown rapidly in the wake ofsweeping economic reform. These days, the green barriers have turnedinto the most prominent subject in the tea exporting area. No countrygets away from the effect of green barriers. Thus, green barrierswill bring challenges and opportunities at the same time. Currently,China exports 90% of their aggregate tea production to differentcountries. Furthermore, China is the biggest tea exporting country,and their aggregate sum on trading tea is positioned as third of theworld.
Duringthe domestic procedures of exporting the green tea, domesticProducers meet opportunities and challenges in the tea tradingprocess. The research that states the green barriers theory focuseson the barriers faced by the medium and small sized companies duringtheir exporting procedure of the green tea from China to the UnitedStates. Moreover, the point of the thesis also states that similarfindings can be applied on China`s tea export to the European market.Furthermore, the point of the theory is to enhance Domestic Producersexporting strategy and conquer the challenges such as theinternational tea trade process (Foley et al., 2008).
TheChinese requirements are not high because of the variation ofpurchasing behavior. Exporting organizations can easily benefit fromexporting their green tea to the United States and find a broadinternational market. Exporting is very profitable for exportingorganizations when compared to non-exporting organizations. Hence, agood business relation and the international trading policies benefitthe green tea exporting companies since exporting their products tothe United States creates greater profits. In most cases, thenon-exporting organizations face more dangers, for instance, currencyfluctuation (Miller, 2012).
Interms of exporting methodology, direct and indirect exporting ofgreen tea both fits in with any other exporting procedure. Directexporters are responsible for exporting companies and the businesssector. The sales representatives ought to finish the pertinenceassignment of ensuring that the green tea exported from China to theUnited States meets quality standards. Exporters also control theindirect exporting, and the methodology is simple. Many companiesrely on upon exporting the green tea to strengthen theirinternational relations that facilitate a good atmosphere to conductother international businesses. Exporting also helps the exportingorganizations to meet less risk in other international market niches.
Exportingorganizations dependably gain more benefits when contrasted andnon-exporting organizations. Exporting organizations get differentbenefits from exporting process. Exporting procedure helps theorganization to do deep processing and developing the economic scale.Companies become more flexible and gain adaptability from theexporting experience (Miller, 2012).
Exportinggreen tea can enhance the entire business performance and gainincredible notoriety in the United States and around the world.Domestic producers in China are demonstrating their enthusiasmtowards exporting the green tea to the United States. The exportinggroups dependably take after by positive approach to choosing theirglobal business. As a rule, the exporting organizations in China do amarket research as a part of their procedure and do estimation aboutcompetition and the potential business opportunities in the UnitedStates. After those steps, exporting groups choose the gateway anddraw up the commitment to supply their new market with green tea.Sometimes, exporting companies are concentrated on technologicalproblems and distributing issues. Exporting groups in China pay moreeffort on marketing plan (Foley et al., 2008).
Inthe contemporary society, the business competition is not just toenhance the further improvement of the developed economies. However,it is also to promote the financial advancement of the developingnations. Conversely, international trade and exporting createemployments and opportunities, more families get out of povertythrough finding new employment. Moreover, more organizations enhancetheir competitiveness by offering better services and products (Katz& Weaver 2013).
Inrecent years, the worldwide economy situations are demonstratingdifferent circumstance. The competitions in international businesssector are more perplexing and complicated. Trade has been consideredas an indispensable part in the universal business. Another certaintyshould be brought up here is that developing nations constantly meetissues in the global market due to poor quality of green tea and theshortage of strategy (Ni, 2012).
Internationalbusiness implies the purchasers and dealers are not from the samecountry. In late decades, the serious levies are identified with theinternational community and these tariffs are focus against for theinternational competition. For example, the GATT (also known asGeneral Agreement on Tariffs and Trade) and HST are established bynations to put regulations to the international businesses such asthe green tea export trade from China to the United States (Parker,2009). The HST aims to talk about removing barriers in internationalbusiness sector. GATT did prominent negotiations in 1993, and thesenegotiations were named Uruguay Round. The Uruguay Round hasfabricated the WTO. The primary reason for WTO is diminishingbarriers (Foley et al., 2008).
Nowadays,the global trade depends on sophisticated transportation andcommunication skills to conduct business. Nevertheless, since thebuyers and sellers are from different parts of the world, thedifferent cultural-background can lead to barriers when it comes todoing international trade. Thus, every person can see thesignificance of eliminating barriers from the global market (GlobalTrade Perspective, 2014).
Barriersinfluence the entire exporting procedure of green tea. The exportmethodology and the regulations for exporting are not quite the sameas from a nation to nation. To help meet the needs that caused fromexporting nation, the exporting organizations need to invest theirtime to prepare export documents. As a rule, competition helps theexporting organizations to export high quality of green tea to gainmarket competitiveness and prevalent in the United States market.Trade barriers have diverse structures, for instance, legitimate andillegal. On the other hand, customers’ protection will producebarriers as well.
Moreover,the worldwide markets are complicated and complex. Unfair competitionand unfair law likewise can be recognized as an obstruction in thegreen tea export from China. it is obvious that barriers affectingthe export of green tea from China can create a positive environmentfor other competitors or local producers who are not affected by theinternational tax rules. Social, cultural and political componentsare additionally cause challenges. Then again, those barriers thatassociate with society and political are termed as non-tariffbarriers. These exporting barriers intrigue business representativesof green tea from China. Distinctive barriers have their ownparticular characteristics. In the international trade sector, thegreen tea exporting agencies from China are always having the sameissues like lacking certification difficult for conducting foreignoperations and misunderstanding with overseas’ customer.
Generally,if domestic producers or the green tea exporters have insufficientfinance, their company will face barriers in international market dueto the Import Duty for HST 0902.10 of the green tea and other costsincurred in the export process (Foley et al., 2008). Moreover, if theChinese exporting agency lacks connection in the United Statesforeign market or the certification of exporting, it can causeconfusion between buyer and seller.
Inrecent years, some green tea exporting companies argued that thecorporation companies such as the HST and the government regulationsare just focusing on the improving domestic market, this situationwould cause obstructions in the green tea exporting business as well.Moreover, due to the strict Chinese regulations and high cost ofmanufacturing, exporting, distribution and financing costs, somecompanies from china have lost interest in the export business ofgreen tea (Smith, 2012).
Tradebarriers typically focus on different rules that are established byimport nation, as a rule, the mistaken thoughts regarding potentialmarket as an essence hindrance in the global market. As far as importtariffs, now and then, the exorbitant spending results from lack ofexamination (Foley et al., 2008).
Therivalries in worldwide business sector are unpredictable. Anextraordinary number of organizations are demonstrating theirenthusiasm toward exporting. Organizations dependably have numerousinconveniences in the starting part. The barriers are live in themuddled worldwide business sector. To aggregate up, the barriers arecontinually encompassing fund and society. Case in point, the UnitedStates confronted some inconvenience in exporting process because ofneeding of assets and new about outside government lead previously.Henceforth, basic barriers of exporting can be separated into threegatherings: general business sector dangers, business dangers andpolitical dangers.
Simply,the business is unpredictable and entangled. To begin with, theseparation and rivalry can be viewed as the principle issue in theexporting methodology. Besides, the distinction thoughts regardingitem and society foundation additionally considered as an issue inthe exporting methodology. Thirdly, delivering administrations areconsidered as a general issue in the exporting, in light of the factthat dispatching can be imaged as an extension between exportingorganization and importing organization (Katz & Weaver 2013).
Thebusiness dangers incorporate discriminating barriers. At first, thevariance of conversion standard was considered as principle dangeramong exporting methodology. The change of swapping scale some of thetime may bring about losing of trusts. Next, the transmissionadditionally cannot be overlooked.
Thus,the correspondence issues realize generation disturbances. As oflate, an imperative gathering which gathered by WTO is discussdiminishing barriers and distributed related laws. It is effectivelyto presume that this focus of the gathering is extending another lifefor exporting organization. More exporting organizations are givingcareful consideration on the development as opposed to consideringbarriers.
Outsideexchange of the United States contains the worldwide imports andfares of the United States, one of the world`s most noteworthyfinancial markets. The nation is among the main three worldwidemerchants and exporters. HTS Code: 0902.10.0000 – saw exports of$1,907,066 in August of Green Tea (non-fermented produce) InImmediate Packings Of A Content Not Exceeding 3kilograms (GlobalTrade Perspective, 2014).
Inconclusion, at times, a few inconveniences are uniting with pickingup the fare fund in exporting methodology. The dangers normally shutto the interceding of household government. The dangers incorporatethe limitations of remote government, national export approach, tradecontrols and common strife, insurgency and wars. As per the someexporting case, it is effortlessly to presume that silly data is theprinciple deterrent in the universal business. The purchaser andvender ought to gather more assets, for example, shares, principles.Off and on again, the purchaser and merchant differ about points ofinterest.
Foley,K., Zakharov, P., Hoaas, S., Ronin Films., Goshu Films., & HosoBunka Kikin. (2008). Greentea and cherry ripe.Canberra: Ronin Films [distributor.
GlobalTrade Perspective 2005 – Packaged Green Tea Weighing Up to 3 Kg.(2014). S.l: ICON Group International, Inc.
Katz,S. H., & Weaver, W. W. (2013). Encyclopediaof food and culture.New York: Scribner.
Miller,D. A. (2012). Importingfrom China.Detroit: Greenhaven Press.
Ni,F. (2012). China- America relations: Review and analysis.Reading: Paths International.
Parker,P. M. (2009). 2009import and export market for packaged green tea weighing up to 3kilograms in China, the.ICON Group.
Smith,M. A. (2012). Powerin the changing global order: The US, Russia and China.Cambridge, UK: Polity.
Zhang,J. (2014). Puertea: Ancient caravans and urban chic.