Since EB started ten years ago, they have used the same raw materials suppliers for the

components of the water bottle. All of the existing raw materials suppliers are located in Canada.

The Director of Operations has been testing a new plastic compound from a supplier in Germany

and is excited about its performance. The advantage of the new plastic is that it can be molded

into shape at a lower temperature, allowing for the time needed to cool the product before

packaging to decrease. The Director of Operations believes that if they were to use the new

plastic, they could increase total production output by 20% using the same machinery they have

today. The plastic is estimated to be about 3% higher overall, even accounting for the additional

transportation cost from Germany. The CEO would like to make the switch to the new plastic and

has engaged each department to develop plans for the transition. Through a freight forwarder,

you have already sourced a competitive ocean carrier that can be used but in the meeting you

discuss the need to purchase marine insurance and arrange for a Customs Broker to import the

product into Canada. You provided a brief overview in the meeting about the differences between

marine insurance from insurance in the other modes and mentioned what a Customs Broker

generally does. The Director of Operations offered that at her previous company, they imported

product themselves without using a Customs Broker and suggested that EB might be able to do

the same. The CEO asked each Director to their own areas that can

be distributed at the next senior management meeting.

Following the meeting, the CEO meets with you to discuss the topics for your report. You have

been asked to provide more information and a recommendation on purchasing marine insurance

and a description of the functions of a Customs Broker and a recommendation on the whether or

not EB should use one for the importation of the new plastic.

Provide a description of the potential marine insurance clauses that could be purchased

and a recommendation on the coverage that EB should purchase for the new German

plastic.

Provide a description of the role and function of a Customs Broker and a

recommendation on using one for the new German plastic.