Compliance assignment #4
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Dec 6, 2023
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SCM 5503 – International Logistics
Assignment 4 – Compliance
Value: 10%
Please read the following instructions carefully before starting:
This assignment is to be completed independently
. The normal policy on plagiarism applies.
You
must
submit
your assignment
using SafeAssign
.
The report must use correct sentence structure and spelling.
As a guideline, assignments should
be approximately 1,000 words in total. There is no need to include a title page, executive
summary, table of contents, or appendices.
Provide your answer in essay format (full sentence
form, no bullets, lists or point form abbreviations).
APA 6
th
Edition citations are required for
external references. Your submission must be submitted in Microsoft word format.
Challenge 1:
Shine steels is a well-established Canadian
metals trade company with large market share.
They have a good record as an importer and never had a problem with clearing goods. In the
past, Shine steels imported
Corrosion-resistant steel sheet
from India
but an anti-dumping
rate of 40% for all Corrosion-resistant steel sheet from India was introduced in 2019.
To avoid the anti-dumping duty, Shine steels started a search for a new supplier and landed on
one in Bangladesh. Executives from Shine steels visited the factory in Bangladesh and met the
owner. They were invited for a tour and inspection of the factory. No issues were found during the
onboarding of the new supplier.
Shine steels started importing steel sheets from the new supplier from Bangladesh. Soon after,
they received several communications from an industry expert warning that factories operating in
countries nearby India may be importing
Corrosion-resistant steel sheet
from India and
exporting
as products of Bangladesh. The industry association has since also released a
statement warning about the issue. Shine steels sent representatives to visit the factory to verify
the claims, but they were prevented from entering the factory due to construction.
In May 2023, CBSA announced that Shine steels was under investigation for anti-dumping
because of possible of fraudulent claims of country of origin. During the CBSA investigation, they
did not observe any manufacturing activities at the factory location.
The registered address of the
factory in Bangladesh was found to be a vacant warehouse. After the investigation, it was
concluded that the majority of steel sheets Steel shines imported were indeed manufactured in
India and relabeled in Bangladesh and then shipped to Canada.
Shine steels paid over 1 million dollars for unpaid antidumping duties and penalties.
During the investigation, the following was identified:
Shine steels knew that the supplier in Bangladesh was owned by a Indian company.
The new supplier did not have production capacity to fill Shine steels order.
There were many warning signs within the industry about potential dumping of steel
originating from India through Bangladesh..
A person from the logistics team at Shine steels made their manager aware that some of
the documents contain Hindi writing and suspected that steel may be originating from
India. This information was never escalated to the upper management.
Some employees were assigned to manage trade compliance and were aware of the
potential dumping issue but due to turnover the information was never transferred to the
new employees.
The executives of the Shine steels hired you as a compliance consultant to provide insight into
the following:
1)
Contributing factors that caused Shine steels to be in this position even though they are a
well-established company with experience in the industry?
2)
What Steel shines could have done to prevent this from happening and suggest how
Steel shines could prevent a similar situation from happening in the future.
3)
Will it impact supplier located in Bangladesh and how?
4)
Shine steels using same practice since 2019 so almost 4 years, explain impacts of this
practice on Canadian steels industry and economy.
You may add any other comments to CEO how they can move forward as a company after this
incident.
Relate your report to this specific case. You are presenting your report to the CEO of Sleepy
Comfort. Do not offer general discussion. Be specific and apply the given information in the
scenario.
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