German cars like BMW are exported from Germany to markets like the USA. They offer comfort, fuel efficiency, and are symbols of status. To export cars from Germany to the USA, companies must file customs declarations and follow regulations. Imported cars to the USA must meet safety and emissions standards, and proper forms must be filed. BMW uses various distribution channels in the USA, such as independent dealers, brokers, and company-owned showrooms. Communication tactics to customers include social media, videos, emails, and test drives with knowledgeable salespeople.

1. EXPORT AND IMPORT
BUSINESS
Study year: 2019-20 Lecturer: I. bruksle
Prepared by : Umakant ShivprasadYadav (UMA1D22)

2. Brief about
Already
discussed
Target Market: USA
Product: Cars (BMW)
Supplier Market: Germany
Demand: High
Business with USA in 2017 : 21.28 B (USD)
Legal rules for Export and Import: Flexible
Economic relationship between Germany and USA: Now stable and
growing

3. Product
Offering
Comfort is common to all German Cars: BMW and Mercedes
Benz Provides comfortable sedan, along with climate control
systems and noise reduction tools.
Fuel efficiency: German cars are well known for their power,
but nowadays they are concentrating on decrease of overall
fuel consumption.
Style, security and Symbol of status: All the German brands
are symbol of status across the global. Brands like Mercedes,
BMW, Porsche, are the world’s most preferable cars.
Now they have focused on providing electric cars to the world,
due to increasing global warming.

4. Shipping and Formalities
(From Germany)
• Formalities form Germany: When a company imports or exports goods, it
must file a customs declaration with the Customs and Excise Administration.
• The form and content of customs declarations must comply with the Union
Customs Code. All customs declarations must:
• be established using the Single Administrative Document (SAD), a format
that is used to harmonize and standardize customs data
• include all data specified by a European regulation, according to the nature
of the customs declaration
• be filed in a computer format using either the Import/export eDouane system
or the ICS eDouane system. Economic Operator Registration and
Identification (EORI) is mandatory for this step.

5. Shipping and Formalities (For USA)
• Imported motor vehicles are subject to safety standards under the MotorVehicle Safety Act of 1966, and to air pollution control standards
under the Clean Air Act of 1968, as amended in 1977, and 1990.
• For CBP clearance you will need the shipper's or carrier's original bill of lading, the bill of sale, foreign registration, and any other documents
covering the vehicle.You will also be required to complete EPA form 3520-1 and DOT form HS-7, declaring the emissions and safety
provisions under which the vehicle is being imported.Vehicles that meet all U.S. emission requirements will bear manufacturer's label on the
engine compartment in English, attesting to that fact. For vehicles that lack such a label, the CBP inspector at the port of entry may require
proof of eligibility to import under the EPA exemptions or exclusions specified on form 3520-1.
• Vehicles that do not meet all U.S. emission requirements, unless eligible for exemption or exclusion must be imported through an
independent commercial importer (ICI). EPA will not allow the vehicles' release to the vehicle owner until ICI work is complete.The ICI will
perform any EPA-required modifications and be responsible for assuring that all EPA requirements have been met. Some vehicles cannot be
successfully imported or modified by an ICI, however, and in general, ICI fees are very high.

6. EPA 3520 and DOT hs-7 form

7. Distribution
of BMW in
USA
• Most producers use intermediaries to bring their products to market.They try
to develop a distribution channel (marketing channel) to do this.
• Distribution channels perform a number of functions that make possible the
flow of goods from the producer to the customer. Distribution channels
create efficiencies by reducing the number of transactions necessary for
goods to flow from many different manufacturers to large numbers of
customers. This occurs in two ways: First is whole sellers who the product form
producers in large quantity and sell this product time to time. Second one is
creating assortments that is verity of products in one place.
• Distribution Channels: This channel may have different levels ie (Zero level,
One-level) and so on.
• 1) Independent Channel: They have many different brands and many different
customers.
• 2) Merchant Channel: They buy product from manufacturers and sell to
retailers. They take possession of cars and develop their own strategy of
promotion.
• 3) Merchant Broker:They may not take possession of cars but they work on
commission.
• 4) Manufacturers owned intermediates: Owned by manufacturer to have
separate business unit and they have control over distribution channel.
• 5) Sales inventory have inventory of cars and provide sale and services in local
geographic area.
• 6) Manufacturers showroom to display the product permanently to attract
customers.

8. Tactics of
communication
with customer
In order to build trust with customer communication plays the vital roe
followed by the product quality.These days people spent most of their
time facing electronic screens. In order to communicate with customer
more effectively are
• Invest in Social Media promotion.
• Videos promoting the cars on social media and television.
• Advertisement which tell the how the product would look like.
• Sending mails to their potential customers.
• Designing a attractive website.
• Search Engine Optimization.
The above methods have impact of one way communication. To create a
two way communication channel by conducting Car sale events, Car
dealers hire sales person with good education, experience and
negotiation skills so that they can interact with people and can tell about
the product and its specification.

10. References
• https://www.export.gov/article?id=Germany-Import-Requirements-and-
Documentation
• Enhancing Promotional Strategies within Automotive Companies, by Nor Amira
Mohd Alia , Muhammad Hanif Abdul Gafarb , Jamaludin Akbarc.
• https://courses.lumenlearning.com/wm-introductiontobusiness/chapter/common-
marketing-communication-methods/
• https://www.slideshare.net/jasleensabharwal5/distribution-strategies-of-ford-and-
maruti