Sii Canada is a reseller of goods to the North American market. Sii was introduced to a product that appears to have higher long-term demand than current supply in North America. Sii operates from a single location that acts as the distribution centre and office. The firm purchases goods at large quantities and resells these direct to large regional retail operations.

Sii has found a niche market in the supply of the product direct to non-national retail firms that have been underserved by resellers who focus directly on big box and national retailers. Sii has been in business for fifteen years however has not yet imported product from outside of North America to resell to the North American market.

The firm has located numerous potential suppliers and opportunities abroad to choose from. These products all offer unique qualities or pricing not found within North America and must be sourced from the location indicated.

Sii has a logistics team internally that handles the overall transportation requirements of the firm. In some instances, Sii arranges for inbound product to be picked up at the manufacturer directly and in some instances the products are purchased with delivery of freight to the Canadian DC/office location. The logistics team manages all of the outbound logistics to its customers using third party carries. Sii does not operate a private fleet. This logistics team currently uses rail, road, intermodal and smalls transportation modes.

Sii has one individual that operates as their Compliance Manager, responsible for ensuring all trade compliance documentation and requirements are fulfilled. The compliance manager works with an external Canadian Customs Broker for the clearance of shipments to, from and between Canada, US, and Mexico as they are purchased, warehoused and delivered.

Your firm has been hired as consultants to prepare and logistics plan that will highlight the available options for importing the new product to Canada. Sii anticipates that it will be able to integrate the outbound transportation requirements to its existing clients using the logistics team currently at Sii. Your firm is to make recommendations to Sii and should consider this an opportunity to educate Sii on the requirements of performing international logistics.

The President of Sii has asked specifically that you provide the following:

1. A recommendation on the best Incoterm for Sii to select on this project. Sii is unfamiliar with using incoterms and the seller has indicated that their price to Sii will be adjusted based on the incoterm selected. The seller indicates that they will only ship under FCA, CPT, CIP, or EXW terms. You must provide an analysis of these terms including the risk to Sii for the use of each incoterm and a recommendation on which term Sii and the impact of selecting this term (risks and requirements for Sii).

2. The President has also asked that you provide a summary any other potential risks or opportunities related to the project. Specifically, the President is asking your firm to identify any other factors that Sii should be aware or consider pertaining to the logistics-related functions of this project.

Our product is - PASTA ( Spaghetti, Macaroni, Noodle)

Origin Country- Korea

Destination Country- Canada

---Please provide a detailed explanation