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Introduction to International Business

Final Project Export Plan

Business name: Cocolezian

Product Type: Chocolate based cleaning/bathing soap

Submitted to: Ms. Audrey Pascascio

Submission by: Kenroy Wagner, Oscar Hernandez

Argenis Bobadilla, Dale Baltazar,
Gabriel Ramos, Jason Rusell, Angel Blanco

University of Belize

October, 9th 2020

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Contents

4
Introduction 5
Selection of Product and Market 6
Product Selection and Description: 7
Selection of Market for Export 8
Free Trade Agreement Between United Kingdom and Belize 10
Harmonization Coding 11
Laws and Regulations 12
Exportation Process 12
Payment and Financing 21
References 22
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Introduction

According to recent online reports from a study carried by CNBC reveals that the
chocolate market rose approximately by 13% between 2010-2017. Therefore, earning a 101
Billion USD in revenue (Gospotcheckblock, n.d.). In 2020, the chocolate industry continues to
globally expand and is rapidly growing as the demand for such a commodity continues to rise.
The versatility of the cocoa seeds (main ingredient of chocolate) allows producers to create and
sell various types of products like lotions, skin care products, beverages, medicines, cake
toppings, and candies. The seeds which are the main ingredient when producing any chocolate
commodity are usually grown in hot and humid climates.
Countries such as Ivory Coast and Ghana accounts
for almost 70% of all the number of cocoa beans produced
(Chocolate fair, 2015). Belize has just the right climate
and land fertility to grow cocoa as well; in fact, it has been
grown by our indigenous ancestors in the country since the
great Mayan civilizations. However, commercial activities
of the beans only started a couple of years ago. While
Belize does export some chocolate related products, it is
usually a minuscule amount compared to other cocoa growing nations. According to Beltraide,
there are currently 9 small chocolate producers in Belize who market locally while some ship
tiny batches of exports (CopyCocoa mission, n.d.). These exports are usually the raw ingredient
itself (grinded cocoa seeds) which importing countries use to manufacture finished goods. These
commodities are then sold back to us at high prices. Nevertheless, the use of chocolate in Belize
seems to be limited in making only chocolate candies, powders and drinks. Although these are
perfectly great ways of modifying cocoa beans into a product, Cocolezian wants to show how
versatile and profitable chocolate can be for Belize.
Cocolezian is looking to change the local and international chocolate industry by
revealing something unusual, a soap made purely out of rich, dark Belizean grown chocolate.
This chocolate soap will be made out of pure, locally grown and natural chocolate cocoa beans.
There will be countless benefits with the introduction of this soap. First of all, it will show that
Belize is more than just primary producers and that it is capable of mass producing manufactured
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goods as well. More importantly, Cocolezian will compete internationally by setting its sights on
the United Kingdom. Great Britain has always been close partners with Belize when it comes to
foreign trade, making it an ideal environment for exporting Cocolezian. A study in 2017
uncovered that the United Kingdom was the 4th highest consumer of chocolate related products in
Europe and 7th in the world (Chocolate facts and Figures, 2017). A chocolate loving country like
the United Kingdom will certainly be a market for Cocolezian to intervene and target.
Cocolezian chocolate bathing soap will compete against Dove soaps, Rosa Venus, Zest
and a few other cleaning and bathing soaps that exist in the market. The health benefits of
Cocolezian alone will be a product strength; distinguishing itself from the competition in order to
capture market attention. This soap will be gentle on skin but effective against the unseen
enemies; germs and bacteria. During the COVID pandemic, to stay safe, you must stay clean and
health authorities remind the public of the importance of practicing good hygiene. In fact, being
clean can be the difference between getting sick and staying healthy in times like these.
Moreover, apart from being an effective cleaning agent, Cocolezian will also boast a sweet,
earthy, natural chocolate scented aroma unlike any other.
In general, for all these things to be done, mass farming of the cocoa trees will be
fundamental and extremely necessary for Cocolezian to produce soap on a large scale. The
business will invest money, gain capital and utilize various accounting and financial methods to
ensure investments are used efficiently. Extensive market research will also be a key determinant
of how successful this business will become. Through these efforts, Cocolezian will become a
product that proudly boasts the title of being the finest chocolate product of Belize and the
Caribbean. Cocolezian, a sensational clean!
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Selection of Product and Market

Product Selection and Description:

Cocozelian is a new company infiltrating the cocoa industry
by exporting a luxury handcrafted cocoa soap that is set to conquer
the chocolate market. Cocozelian aims to mass produce local
organic cocoa soap for export in order to satisfy the craving
demands of the populace due to its rich benefits. According to
research conducted by Dr. Latif, from the Clinical Nutrition and
Metabolic Care, cocoa products have a variety of benefits as it can
be used for skin care, hair care, bath and body products. In addition,
it can also be used for medicinal purposes soaping, food and
beverages.

Cocolezian competes with the common bath and body products that include cocoa
ingredients such as soap, shampoos and conditioners. However, Cocolezian will be at a
comparative advantage as our product will be made of
organic, timely fermented, and dry cocoa beans with the
highest quality available under the cocoa trade industry.

Cocozelian decided to manufacture soaps from

organically grown cocoa that aims to not only increase the
awareness of skin care soaps but also to promote medical
care through its diverse benefits. According to Dr. Megha
Patel (2017), “ raw cocoa beans contain many healthy
qualities that are good for your body.” Furthermore,
cocoa beans contain many vitamins and minerals such as vitamin A, calcium, potassium,
magnesium, iron, and phosphorus. All which our skin needs to maintain its soft and gentle
texture. Moreover, Cocozelian decided in manufacturing and exporting cocoa soap as cocoa
itself is “high in antioxidants and contains various bioactive phytochemical” (Patel, 2017).
Therefore, it blocks atrocious oxidizing agents from the body which prevent many underlying
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conditions. Studies published in the Journal of Investigating Dermatology, indicates that one of
the greatest benefits of cocoa is skin hydration and nourishment which aids in the increase of
blood flow, skin glow and aging (Patel, 2017).

Lastly, Cocozelain cocoa soap bar product selection also takes into consideration the raw
resources that can easily be allocated within the Toledo district from the local cocoa growers.
This will then serve to establish a proud product representing the indigenous people of our
country, expressing a piece of our history and how the cocoa beans served as a valuable fruit
during the Maya Civilization as it was used for more than just monetary representation.
Additionally, our product selection also creates a business relationship with our local farmers by
ensuring their livelihood and consequently increasing the company’s revenue and Belize’s
economy at large.

Selection of Market for Export

Cocolezian will be exporting its soap

made purely out of rich, dark Belizean grown

chocolate to the United Kingdom. The United Kingdom is one of the main chocolate consumers
in Europe whereby the United Kingdom has an average consumption of 7.5kg of chocolate per
capita and increasing (CBI: Cocoa Barometer 2015). Additionally, their market has also shown
an increase in cocoa cosmetic consumption as seen on the chart beside.

The European cosmetics market presents good opportunities for Cocolezian products of
natural ingredients. Demand for natural ingredients from the European cosmetics sector is
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increasing. The main drivers of this demand are the growing consumer awareness for natural
cosmetics and the desire of cosmetics companies to replace synthetic ingredients with natural
variants. Because, of consumer demand and partly because of a move towards sustainable raw
materials. This trend is described in the CBI trends report on natural ingredients for cosmetics.

According to Cosmetics Europe, the European cosmetics market was valued at €78.6
billion in 2018, the largest in the world, followed by the US, China, and Japan. Figure 1 Shows
the importance of the European market in the world. Thanks to its large consumer population,
Europe’s cosmetics market is expected to continue to grow in the future and maintain its leading
position in the coming years. However, the cosmetics market in Asia and Latin America are also
showing significant market growth. Germany and France are considered the best prospective
European markets for exporters of natural ingredients. This is because these two countries have
the largest consumer markets for cosmetics in Europe and they are also major production centers.
Many conventional and natural cosmetics companies are based in Germany and France. After
these two countries, the UK and Italy are the most attractive markets. The European cosmetics
market is quite diverse. Demand for natural ingredients comes from large conventional cosmetics
companies, contract manufacturers, dedicated natural cosmetics companies, as well as
formulators and product developers. European consumers spend, on average, €135 per year
purchasing cosmetic products.
Many may ask why the United Kingdom? The response is then why not the United
Kingdom as they have tied partnership in products and other state affairs. The United Kingdom
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is the ideal place for Cocolezian, there are no specified import

regulations in the United Kingdom because from January of
2021 they will no longer fall under the umbrella of the
European Union. Sooner than later all that needs to be done to
export Cocolezian to the United Kingdom is to meet
international quality standards. The following factors define the
quality of cocoa the United kingdom are expecting: Good trees (genetics), Well cared for and
grown in a suitable environment, Pods correctly harvested, Good practices to keep the trees
healthy and free of pests and diseases and to optimum fermentation and drying protocols specific
to the type of beans. Cocolizean being from Belize where we have nice tropical weather cocoa
grows best, no doubt the United Kingdom will accept Cocolezian in their market. Therefore,
making Great Britain, Cocozelian’s target market, especially with their high demand for cocoa
products. Research has shown that the United Kingdom is one of the largest cosmetic
consumption countries with cosmetic products such as cocoa butter creams and soaps. The
United Kingdom is an important importer and process of cocoa beans, and additionally, a huge
importer of cocoa products.

During this pandemic, staying safe, clean, and healthy should be our prime focus
practicing good hygiene. Cocolezian consists of essential items for treatment processes such as
enzymes and hygiene products such as liquid soap and hand sanitizers used to battle the nova
coronavirus.

It is also in the United Kingdom that fair trade

finds its largest global market. Economically, the
United Kingdom has one of the world's most expensive
cities. The people who live there have sufficient
purchasing power also if you look at the population its
very large and diverse. Lastly, to address the crisis, key
medical supplies and other crucial COVID-19 products
are flowing freely from producers to where they are needed. Export restrictions and import
protection are collectively inefficient especially for developing countries like Belize.
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Free Trade Agreement Between United Kingdom and Belize

Currently there is no Free Trade Agreement between both countries. In March 28,2019
the CEO of the Ministry of Investment, Trade and Commerce, Mr. Duane Belisle along with the
Directorate General for Foreign Trade (DGFT) joined eight other CARIFORUM Countries along
with the UK’s Minister for Trade Policy, Mr. George Hollingbery, in signing the CARIFORUM-
UK Economic Partnership Agreement. The Economic Partnership Agreement with the United
Kingdom preserves existing preferential trade terms and safeguards current and future trade flow
between the countries of the region and the UK. The Agreement lays out a framework that
eliminates barriers and tariffs on goods exported to the UK. It is being said that the deal comes
into effect at the end of January 2021, or as soon as possible after the UK leaves the EU in a no-
deal scenario.

This Economic Partnership Agreement with the United Kingdom will facilitate
exportation of goods to enter the country without any type of barriers and tariffs added to the
products. This Agreement is a tremendous opportunity for Belize because Belize will not be
spending a lot of money on tariff changers from the product being exported to the United
Kingdom. Belize as yet does not have a free trade
agreement with the United Kingdom but preparation has
begun and by late January 2021 or as soon as possible
after the United Kingdom leaves the United States there
will be no barriers and no tariffs added to the products
exported to the UK. The business owner will benefit from
the trade agreement with the duty-free entry to the
country. This would be a cheaper exportation to the
United Kingdom which would allow this company to use
these savings to further invest in the company in order to
export more products.
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Harmonization Coding
Harmonized System Codes are commonly used throughout the export process for goods.
The Harmonized System is a standardized numerical method of classifying traded products. It is
used by customs authorities around the world to identify products when assessing duties and
taxes and for gathering statistics.

Our Product: Chocolate based cleaning/bathing soap

Harmonization Code : 1806.20.00

● Chapter 18- Cocoa and cocoa preparations

● heading 06- chocolate and other food preparation containing cocoa
● subheading 20- Preparations in blocks, slabs or bars weighing more than 2 kg or in
liquid, paste, powder, granular or other bulk form in containers or immediate packing, of
a content exceeding 2 kg Other, in blocks, slabs or bars.

Laws and Regulations

The UK has several bans and restrictions on the importation of different goods but luckily
none of these apply to our product that we are exporting. Also because of the CARIFORUM-UK
Economic Partnership Agreement the United Kingdom will facilitate exportation of goods to
enter the country without any type of barriers and tariffs added to the products. 12 CARIFORUM
states including Belize have signed on to this agreement. It will be the basis of economic and
trade relations once the EPA enters into effect. This EPA
replaces the CARIFORUM-EU EPA.

In exchange, these 12 CARIFORUM states commit to

gradual tariff liberalisation of goods. Some domestically
sensitive products in these CARIFORUM states are excluded
from tariff liberalisation. The UK is set to withdraw from the EU
on the 31st December, 2020 and The UK-CARIFORUM
agreement is expected to take effect from 1 January 2021.
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Therefore, very minimal regulations need to be met in order to export to the UK. The
product only needs to meet international standards in order to be exported and also for food and
plant products to be imported by the United Kingdom it needs to be pest and disease free.

Exportation Process

The purpose of the exporting process is to outline the points of current practice and
management that need to be addressed to ensure efficient shipment of Cocolezian from the
factory to the United Kingdom. The main areas covered are: From factory to export point;
Supervision at departure; Assurance of contractual performance by a shipping agency; Marine
transport; Marine insurance; Cooperation between exporter and importer at various points and
Supervision on arrival. There are no shortcuts to a successful commodity export business.
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The first thing for Cocolezian was to enlist the company as a taxpayer with Belize Tax
Agency. A registered trade with concerned license, as per the business, it is a must for the
exporting and importing of commercial products from and into Belize. All documentation must
accompany every shipment and be completed accurately. Cocolezian to the United Kingdom
must meet all required documentation. If the documents are not complete, or inaccurately filled
out, it can create delays at customs and can have more unwanted fees added to the product which
will negatively impact Cocolezian and the United Kingdom. In doing so, no importer would want
to continue doing much business with a company who does not follow correct procedures or
paperwork in place that can lead to the product losing value. For exporting procedures, it is of
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vital importance that one learns the procedures, even though licensed agents/customs brokers can
be used at the customs place.

Belize Customs & Excise Department is the authority who is responsible for:

● The assessment and collection of Customs Revenue on commodities imported into and
exported out of the State
● Interpretation and application of local and external tariffs and customs conventions
● Customs Enforcement - detection and interception of uncustomed goods
● Supervision of distilleries and breweries etc.

Cocolezian will obtain a code from the Customs and Excise Department, which is issued
automatically by the Comptroller of Customs, prior to clearing goods through customs.
Cocolezian are required to present to customs officials the Single Administrative Document
(SAD) that can be obtained from printers authorized by the Ministry of Finance along with other
necessary documents.

All export documentation must be completed

correctly to avoid any missed shipments, port demurrage
charges or fines to the business. The efficiency of the
Customs Clearance process is depending on having the
valid documents, the accuracy of the information
provided in the documents as well as the promptness in
submitting the documents and filing the necessary
applications for the Customs Clearance. The exporter
should make sure that they made all of the accurate export documents that are required to get the
goods delivered through the port, cleared customs, satisfy all compliance and regulations, then
loaded on board the predetermined carrier.

The Major Documents

The major documents required to export Cocolezian from Belize to United Kingdom includes:
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● Export License: this is the first document an exporter must obtain firsthand
since it is dealing with cosmetics. Export licenses are issued by the Ministry of
Industry, but a consultation must be done with the exporter and ministry
personnel before license is issued and granted. License for Cacao products in this
case is automatic. A sample of the export license can be found in the annexed
section of this document.

● Customs Entry Forms: when exporting any type of product from Belize, this
form is required. This is collected at the port of export. This is used to compile
statistics on the volume and value of a country’s exports. This is known as the
Customs Declaration Form (import/export) FORM C100. This form must be
prepared by a licensed customs broker. For every shipment going out, 4 of these
forms are filled. These forms can be purchased at bookstores within Belize. A
sample is annexed to this document.

● Commercial Invoices: this document gives the information on which duty will
be assessed. The owner of the business can prepare this on their own, but the
contents must comply with regulations of the United Kingdom. The cost of goods
must be clearly shown separately from the cost of transport and insurance. A
declaration form can be sent along with this invoice that the exporter made the
invoice and signs it which is called a certified invoice.

Export Invoice is a basic document in exporting and preparation of such invoice is

the first step in getting paid for products exported. This is the bill for the goods
and had a wider use than just any invoice. This is used by the customer to obtain
custom clearance of products once they reach the United Kingdom. This can also
be used to make insurance claims. This is sent to the customer as soon as the
goods are shipped out. This can also be sent with the B/L if they are sent with the
product.

● Consular Invoices: this type of invoice is a specific invoice used by the consul of
the importing country. Many importing countries, mainly less developed
countries, have already phased out the use of this invoice. It is used for customs
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clearance and other purposes, and as such any errors or omissions on the invoice
may cause problems and fines at customs in the importing country. These forms
can be acquired from the consular office of the importing country, that is the
United Kingdom. The consul must authenticate the forms to be valid. When
consular invoices need to be validated, a fee is usually charged for the service.

A document required by some foreign countries, showing shipment information

such as consignor, consignee, and value description, etc. Certified by a consular
official of the importing country stationed in the foreign country, it is used by the
country's customs officials to verify the value, quantity, and nature of the
shipment.

● Certificate of Origin: this is also the Customs Entry form filled out on a
FORMC100. It is to establish the right of the product to preferential duties to
which it may be entitled in the importing country. It may contain information of
local materials and labor used in its production. This is to show that it is not from
another country. There are other certificates of origin used such as Generalized
System of Preferences (GSP) Annexed to this document. These certificates can be
acquired by the Chamber of Commerce at BZ$15.00.

● Certificate of Value: this is an official declaration stating the value of a shipment

of goods and normally included in the insular invoice. It is a document to confirm
the value already set out in the previous document and that there is no other
agreement made between the importer and the exporter.

● Compliance Agreement: the health department must sign this document with the
producer whereby the owner agrees to keep his/business area or work area at a
certain prescribed standard and then register the business. Data on each business
or area of production is well kept with the following information:
○ Owner’s name
○ GPS location of business
○ Cleanliness
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Frequent visits are done at the site by certifying officers to verify and record
present and to keep them as low as possible. A sample of the compliance form is
annexed to this document.

Packaging House Specifications: a packaging

facility must meet the following criteria or
specifications for exporting

○ The packaging house doors and

windows must have proper screening to
prevent the entrance of pests.
○ The entrance and exits must have an
inner and outer door with a dead space in between. Both doors should not be open at the
time of packaging. Air curtains must be used at the first entrance.
○ Adequate space must be provided for all operations (unloading, washing, inspections
and packaging)
○ The unloading area must not be the same as the packaging area
○ Unauthorized fruit and culled fruits must not be kept or stored in the packaging area
while export commodities are being packed.
○ Herbicides, insecticides, fuels, and other hazardous substances must not be kept or
stored in or near packing area
○ Storage spaces for supplies (boxes, flats) should not be kept in the packaging area
○ The perimeter of the packing house must be free of weeds, insects, mammalian pests
○ The packing house must follow every procedure that prevents insects from getting into
the packing area, into areas where boxes and wooden pallets are stored.
○ The packing house must have an employee who can implement and enforce the above
guidelines.
○ Rejected fruits must be removed from the packing house compound within 24 hours.

Packing List: packaging area must always be kept clean and organized which the certifying
officer must observe. The inspecting officer will inspect one of the export items so that it is free
of pests, properly sealed and labeled, labeling must comply with the importing country. When
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this is met, then the phytosanitary certificate is issued of which samples can be found annexed to
this document. The following are included on the certificate:

○ Name and address of the exporter

○ Name and address of the importer
○ Name of the product
○ Batch number
○ Quantity of the product
○ Phytosanitary status
○ Treatment
○ Date of treatment and packaging
○ Name and signature of certifying officer
○ Number of the container
○ Origin of the product

XCH2 Form: the XCH2 Form is a type of monitoring mechanism the Central Bank of Belize
uses to facilitate the exporter. Through this form, the Central Bank of Belize monitors or keeps
track of foreign currency coming into and leaving Belize. It also states that all Belizean exporters
must be paid in US dollars or a currency easily converted into US currency. Payments being
made to exporters cannot be delayed for more than 6 months without the permission of the
Central Bank. These forms are completed in duplicate. A sample of this form is annexed to this
document.

Procedures during transport: the certifying officer will ensure that the exporting product’s
container must be clean, free of pests, properly sealed, all proper documentation is in place and
be transported to the point of export. These are some of the data included at this point:

○ Container number
○ Vehicle license number
○ Stops to be taken route to the port of exit
○ Contents of the container
○ Route(s) to be used.
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Procedures at the port of export: At the port, a

quarantine officer will verify that the
documentation is in line with the status of the
product being exported. Data that will be cross-
checked will be date of export, existence of the
product, number of the container, seal, stamp of
the exporting company. These will be logged at
the port so that the product can be traced.

Port Authority Officials are responsible for securing the shipment to be exported in a safe,
secure, and meet the sanitary conditions and then shipped to the United Kingdom. BAHA
registers packing houses and provides trained officials to assist any exporter in maintaining area
sound for export. Compliance forms are signed with them to follow are procedures.

Ocean Freight: this is the most widely used mode of transport in international business because
it is cheap for delivering large quantities of goods over long distances. However, the procedures
and arrangements can be complex, hence, Cocolezian will be aided by a shipping agent and
forwarding agent. These are some steps that will be carried at this point.

a. Determine freight rates

b. Select a shipping line and particular vessel
c. Book shipping space
d. Register cargo on a bill of lading (B/L) and send this to shipping company
e. Register details of products to be shipped on customs entries forms and send to customs
f. Arrange adequate packing for products
g. Receive notice from shipping company to deliver goods to port
h. Send goods to port authority
i. Receive bill of lading from shipping company
j. Pay freight bill
k. Endorse the B/L and send copies to the shipping line and customer or to a bank that
might act as an intermediary.
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Considering this is still a small company, we can determine that we should use the
services of an International Freight Forwarder. His role will be to do all the documentation in
the exporting overseas. He will book the space, collect the product from the packing house to
port, deal with customs entries, arrange payment for freight charges, insurance. A vessel that can
be used in this case will be a Conference Line Vessel since they provide regular travels and do
discounts.

At this stage, payment for cargo will be based on weight or volume or cost. One common
company that will be used is Belize Estate Company Limited.

The Bill of Lading (B/L) is a somewhat of a contract signed between the exporter and the
shipping company so that the product reaches from the port of exit to the port of entry into the
United Kingdom. This is also to state that the products received are of quality as delivered and
must be delivered as such unless there was fire, pirates or shipwreck that did not allow him to do
so. This document is made in triplicate. The B/L can travel with the goods, mailed, or deposited
at the bank.

Delivery of the product is important since there will be more expenses to be dealt with
since profit and loss are important to continue doing business. It is important that the right terms
and conditions are agreed upon. It is important to know what the buyer and seller agrees to pay
in terms of getting the product there, which documents are covered by either of the parties and
who pays for them, when the title of goods are transferred from the seller to the buyer and finally
when and where will they be delivered? The method that will be used is the International
Commercial Terms (INCOTERMS), a universally recognized set of definitions of trade terms
such as FOB, CFR and CIF developed by International chamber of commerce in Paris, France.
This defines the trade contract responsibilities and liabilities between the buyer and the seller. It
is important that the seller is aware of these expenses such as clearance from customs for
importing the product into the United Kingdom (such as DEQ, FOB, DES, EXW, FCA, etc).

Payment and Financing

Exporting is more difficult than just
selling locally, especially when dealing with
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payments. Reasons vary due to the languages spoken, exchange rates, different regulations, other
customs and so on. The distance between the seller and the buyer contributes to setbacks.

Payment methods vary according to the buyer, seller, bank, or a combination of all
parties. Methods are like prepayment; this is when goods are sent after payment was made.
Letters of Credit (L/C) usually or commonly used by the bank on behalf of the importer to pay
the exporter upon presentation of the shipping documents. These are documents needed for an
L/C: Bill of lading, insurance policy or certificate, commercial invoice, payment draft. These
other documents might be needed: consular invoice, certificate of origin, phyto-sanitary
certificate, weight, packing list. Types of L/C are revocable letter of credit, irrevocable letter of
credit confirmed letter of credit and unconfirmed letter of credit. Consignment payment
method, the exporter retains actual title to the goods that are shipped to the buyer and will be
paid as soon as the importer sells the products to a third party. Open account, the exporter ships
the merchandise and expects the buyer to remit payment according to the agreed upon terms.
This is riskier since the buyer can do almost anything with the product and trust that the exporter
is paid in full.

Market Analysis
The United Kingdom has an estimated GDP of 2.6 trillion USD making them a major
trading powerhouse. In 2018, the
United Kingdom was the 5th largest
economy in the world and second
largest in Europe. With these
staggeringly high indicators of the
UK’s economic performance
Cocolezian will continue its efforts in
exporting chocolate soap to England.
The United Kingdom is relatively small geographically but has a population of more than
65 million people. Positioned on the north western coast of the European continent, the United
Kingdom has easy access to the sea which means that trading directly via ships will be the most
effective means of exporting Cocolezian products to the United Kingdom. With such a trading
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route and few trade barriers, exporting costs will be cheaper allowing Cocolezian to export a
larger number of chocolate soaps to supply the high demand of chocolate-based commodities in
the UK.

Target Market

The Target market will consist of major grocery stores, restaurants, health facilities,
hotels, resorts and educational facilities. This target market was chosen in order to highlight the
importance of keeping hands and skin clean. Notice that majority of the target market cover
places where a lot of human interaction takes place. With the novel Covid-19 in effect, it will be
indispensable for these establishments to ensure they purchase Cocolezian natural chocolate
soap. Apart from being effective against bacteria, this soap will be gentle and healthy for the skin
and face by gently cleansing dirty pores. Since this is one of the many benefits of using such a
soap, other establishments that will be targeted includes Spas and businesses that specializes in
skin treatment.

Competitors

There are many other bar soaps in the market including Rosa Venus, Dove, Olay, Zest,
Dettol. Each of these products have a unique attribute that keeps customers coming back for
more. For example, Dove is very gentle, smooth on skin and provides comfortable feel after
bathing. Dettol on the other hand may not have such a mellifluous scent but it is definitely
effective against bacteria. Rosa Venus has neither the best scent nor is it the most effective,
however, it is much cheaper than the remaining competitors. These are some of the best products
in the market presently, but none will boast the versatility of Cocolezian chocolate bar soap.
Cocolezian will provide a better soft and gentle feeling on skin than Dove. This is only possible
because of the natural oil found in the cocoa seeds.

The scent of chocolate is like no other. Cocolezian chocolate soap will give off a natural and
earthy chocolate scented aroma that will last for hours with every use. Lastly, Cocolezian will be
sold at a very reasonable and easily affordable price. Overall, this product will have everything
that customers are looking for: affordability, healthy on skin, effective against bacteria and
overall great look and aroma.
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Major Economic/Political Events

On June 23, 2016, the UK voted to leave the European Union (EU), ushering in a period

of economic and political uncertainty that persists as the UK seeks to define a new, post-Brexit,

relationship with the EU and its other key trading partners. As part of the Brexit process, the UK

Government triggered the two-year exit process by invoking Article 50 of the Lisbon Treaty in

March 2017. The UK was initially scheduled to depart from the EU on March 29, 2019. After

subsequent negotiations, the Brexit departure date was delayed and is now set for January 1st,

2021.  Prime Minister Boris Johnson assumed office on July 24, 2019, setting out to continue

negotiations with the EU on the Withdrawal Agreement or determining whether or not the UK

will pursue a “hard” (or “no deal”) Brexit on October 31, 2019.

Economic Indicators

1. GDP Growth

Every quarter, the ONS issues three releases – a preliminary first estimate, a revised second

estimate, and a third and final estimate – of the quarterly change in the gross domestic product

(GDP). The reports show GDP change, which is the main indicator of economic growth, as well

as the contribution to the growth of the four main sectors of the economy: agriculture,

construction, production, and services.

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Figure 1 The Gross domestic product of the United Kingdom in 2019 was 2.21 trillion

2. Labor Market Statistics

Key data on the employment market in the UK, such as the net change in employment,
unemployment rate, economic inactivity, claimant count, average weekly earnings, labor
productivity, and vacancies, are contained in the Labor Market Statistics report released monthly
by the ONS. These estimates are derived from the Labor Force Survey (LFS), which is
representative of the UK population over a three-month period, rather than a single month.

Figure 2 Record quarterly decrease for self-employed workers

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3. CPI Inflation Indicator

The ONS releases monthly reports on the Consumer Price Inflation Index (CPI) and Producer
Price Index (PPI), which measure inflation at the consumer and producer levels, respectively.
The CPI is constructed by comparing the changes over time in the cost of a fixed basket of goods
and services purchased by consumers. The monthly report shows the change in CPI monthly and
over the past 12 months. The CPI is the inflation measure used in the British government's target
for inflation and is also used for indexing pensions, as well as wages and benefits.

Figure 3 Consumer Prices Index (CPI) 12-month inflation rate was 1.0% in July 2020, up from 0.6% in June.
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Cocoa production in a nutshell. (2015, October 07). Retrieved September 25, 2020, from
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CopyCacao Mission. (n.d.). Retrieved September 25, 2020, from

https://www.belizeinvest.org.bz/cacaomission-164356.html

Department of International Trade (2019) Sumary of the CARIFORUM-UK economic

partnership agreement (EPA). Retrieved from: https://www.gov.uk/guidance/summary-of-
the-cariforum-uk-economic-partnership-agreement-epa

Exporting cocoa to the United Kingdom. (n.d.). Retrieved October 07, 2020, from
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Latif, R. (2013). Health benefits of cocoa. Current Opinion in Clinical Nutrition &
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clinicalnutrition/Abstract/2013/11000/Health_benefits_of_cocoa.11.aspx

Office, G. O. (2019, March 28). Government Of Belize Press Office. Retrieved from
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economic-partnership-agreement-to-preserve-trade-interest-with-the-
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%20Partnership%20Agreement%20to%20Preserve%20Trade,March%2028%2C%202019

Patel M. (2017). Benefits of Cocoa for the Skin and Health. retrieved from
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The Chocolate Market is Growing, and Your Competition is Hungry - GoSpotCheck Blog.
(n.d.). Retrieved September 25, 2020, from https://www.gospotcheck.com/blog/the-
chocolate-market-is-growing-and-your-competition-is-hungry

What is the demand for natural ingredients for cosmetics on the European market? (n.d.).
Retrieved October 07, 2020, from https://www.cbi.eu/market-information/natural-
ingredients-cosmetics/what-demand

Leaker, D. (2020, August 10). Labour market overview, UK: August 2020. Retrieved October
20, 2020, from
https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemplo
yeetypes/bulletins/uklabourmarket/august2020

Picardo, E. (2020, September 16). The Top 10 Economic Indicators in The U.K. Retrieved
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finance/030515/top-ten-economic-indicators-uk.asp
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