NORTH SOUTH

UNIVERSITY
INB-372
International Business
Sec: 02
Assignment #: 05

Concordat with New Zealand

Submitted To:
Farzana Choudhury (FzY)
Lecturer
Department of Marketing and International Business
School of Business & Economics (SBE)
Submitted By:
Group #: 02
Country #: NAURU

1. Naimul Kader
2. Showlin Islam Nova
3. Afra Nawar Chaity
4. Tonmoy Ahammed Tomal

ID: 1310590030
ID: 1420216030
ID: 1230754030
ID: 1411302630

---------- Submission Date: 7th of March, 2016.

UHT MILK
Shelf safe milk is what the industry calls UHT or high temperature, meaning the milk has
been pasteurized, but for a shorter time, to preserve taste and nutrition. Nauru wants to
import UHT cow milk in Tetra pack from New Zealand. We want milk of three flavor- original,
chocolate, strawberry.
Requirements:
1.
2.
3.
4.

The milk must be low fat milk.

It has to contain omega 3.
It must have polyunsaturated fat.
The milk must not contain any sugar. The milk of chocolate and strawberry flavor
must contain sugar-free natural sweetener.
5. The product has to last at least for six months and the nutrition value must be as
same as fresh milk till expire date until opening of the container.
6. The product must last at least for one week after opening the container.
7. After first opening of the container, it must have way to close the cap again and keep
it dry as before.
8. No harmful preservative or chemical substance can be added.
9. PH must be above 4.6.
10.Extra vitamin D has to be added.
11.Cost of transportation has to be paid by the seller.
12.The quality of the chocolate and the strawberries added with the milk must be
standard. All the ingredients must be fresh and harmful chemical or preservative
free.
Processing:
1. The milk must be heated to 280-282 degree Fahrenheit for only 3 seconds.
2. The process of UHT treatment has to take place in a closed system so that it
prevents the product from being contaminated by airborne micro-organisms.
3. Direct UHT heating which means steam is briefly injected into the product, and this is
rapidly followed by flash cooling must be used as brevity of the treatment makes it
possible to achieve very high product quality.
Packaging and Labeling
1. The milk must be in tetra pack of 0.5 litters and 1 litter.
2. The process of packaging must avoid any re-infection.
3. The packets must be airtight and the packets must be recyclable and environment
friendly.
4. Date of manufacturing and expire, ingredients and all other information regarding
the product, processing and packaging must be written on the label.
5. The products must keep away from heat and light.
6. The main material in all packages must be paperboard. It is need to use just enough
to make the package stable, without adding unnecessary weight.
7. The packet must be of different layers just like this picture below-

8. The container must be light and compact. It has to be 2-4% package and at least
96% contents.
Pricing Method:
CFR or C&F - Cost and Freight- the seller must pay the cost and freight necessary to bring
the goods to the named port of destination and the risk of loss or damage to the goods, as
well as any additional cost is transferred to the seller until the goods pass the port of
shipment of the buyer.
Payment Method:
Telegraphic Transfer - the buyer will hand over the payment of the goods to the remitting
bank, which will authorize its branch bank, or correspondent bank in the country of the
beneficiary by telegraphic means to make the payment to him.
Inspection:
Anonymous inspection bi-annually will be done by the buyer country. Its prime function is to
ensure that goods are shipped in a quality condition and in accordance with the terms of
the sales contract.
Insurance Certificate:
An insurance certificate certifying the commodity has been insured is required. If a
documentary credit requires an insurance policy, issuing bank will refuse an insurance
certificate for payment.
Force Majestics:
In case of delayed shipment or non-delivery due to a generally recognized force majeure,
the seller must advise the buyer immediately, and within 15 days thereafter, the seller
must airmail to the buyer a certificate of the incident issued by the competent government
authorities or Chamber of Commerce at the place where the incident occurred. The seller
shall not be absolved from his responsibility unless the buyer acknowledges such an
incident.

Lamb Meat:
Lamb is packed with protein, and nutrients, making it one of the best meats nature can
offer. Protein-rich Lamb contains what our bodies need for growth, maintenance, and repair.
Lamb contains haem iron, which is more readily absorbed by the body than iron in
vegetables. Nauru wants to import Chilled, Frozen, boneless, Bone-in, whole carcass, legs,
middles & shoulders of lamb meat in bulk in vacuum packed and wrapped.
Clauses:
1. All lamb meat must comply with New Zealand Food Regulations Act 1984.
2. All lambs must meet New Zealand Meat Classification Standard (a steer- a male
cattle beast castrated when young, a 270-kilogram carcass, P fatness a light to
medium fat cover, 310 millimeters deep, muscling class 2 good muscle
development.)
3. If subject to New Zealand Lamb Market Diversification Scheme, Nauru shall receive
22% of the imports free.
4. Processing must be done to add value to the product and enable to meet the very
precise specifications of supermarkets, and the requirements of consumers.
5. Must ensure that only low levels of muscle glycogen are present in meat before it is
chilled to prevent cold shortening. This can be easily done by electrical stimulation
of the meat to cause muscle contraction and use up glycogen.
6. Lamb comes from one supplier and the Lamb is prepared and packed by the same
supplier.
7. The farmers must deliver the lambs to the abattoirs themselves, or arrange a hauler
from their farm, and then the lambs are delivered with their paperwork and kept
together in a batch.
8. Must undergo EID (electronic identification) tagging its a tag that farmers can put
on to a lambs ear to give them and us more detailed information on traceability. The
lambs are then processed by batch, and are graded and weighed by an independent
meat classification body.
9. All lamb must be matured on the bone for 24 hours some cuts are matured for
longer to ensure best quality.
10.Must abide by the animal welfare code of practice means that the maximum journey
time for lamb is eight hours.
11.All of the Finest Lamb should be under eight months old and fed on a diet of mainly
grass and milk.
12.The lamb we import from New Zealand will undergo vigorous checks with vets. All
the lamb we buy from New Zealand has to meet the essential code of practice and
quality requirements. The farm that supply the Lambs are visited and audited
without prior notice twice in a year.
13.The farm where Lambs are kept needs to be farm assured. This means they follow an
agricultural code of practice with production standards covering a wide range of
issues such as food safety, environmental protection, and animal welfare plus other
areas that we know is important to our customers.

14.A team of technical managers shall visit without prior notice who spends their time
out in the supply base to ensure the quality of Lamb New Zealand sells.
15.The fat content of Lamb needs to be balanced. So its important that farmers deliver
a Lamb that has been fed properly and is of the right weight. Extra fat content
should be reduced in minced Lamb and diced Lamb so it is all now lean Lamb.
16.Put dividers into packs to make it easier for customers to see individual chops or
steaks at a glance.
17.Smoked meats are not regulated specifically. One of the generic labelling
requirements is that a label on a package of food must include a name or description
of the food sufficient to indicate its true nature, or its prescribed name if there is one.
18.The meat must have undergone a method of processing other than boning, slicing,
dicing, mincing, or freezing. It includes manufactured meat and cured and/or dried
meat flesh in whole cuts or pieces.
19.Processed meat containing between 30% and 66% meat would include some
sausages and some frankfurts, whereas processed meats that contain more than
66% meat would include products like ham or prosciutto.
20.Processed meat may contain other ingredients but must contain no less than 300
g/kg meat, i.e. they must consist of at least 30% meat. Products containing less than
300 g/kg meat are regarded as mixed foods and must comply with the general food
standards and any food product standards that apply to components of the food.
21.Cured and/or dried meat flesh in whole cuts or pieces is meat flesh including
attached bone and must contain at least 160 g/kg meat protein on a fat-free basis,
i.e. it must have at least 16% protein on a fat-free basis.
22.To help prevent deceptive or misleading Meat and meat products Page 9 of 18
practices, the standard requires that fluid loss from frozen thawed poultry be limited
to 60 g/kg.
23.If offal is present in food it must be clearly declared. Where the product is not
required to bear a label, e.g. if the product is sold unpackaged, there is a
requirement that the presence of offal must be declared to the purchaser.
24.Certain types of offal (brain, heart, kidney, liver, tongue and tripe) can be declared
either by the class name, offal, or by the specific name, e.g. liver can be referred to
as offal or as liver. Other types of offal (such as blood, pancreas, spleen and
thymus) are not permitted in meat and meat products unless labelled specifically by
name. That is, their presence may not be declared only by the class name offal.
25.Minced meat may contain significant amounts of fat. The requirement for a
declaration of percentage fat content for packaged or unpackaged minced meat,
where implied or express reference is made in relation to its fat content, allows
consumers to make informed purchasing decisions.
Terms & Conditions:
1. CIF (Cost, Insurance, Freight) means that the seller has the same obligations as
under CFR but with the addition that he has to procure marine insurance against the
buyer's risk of loss of or damage to the goods during the carriage. The seller
contracts for insurance and pays the insurance premium.
2. Irrevocable L/C - can not be withdrawn or amended by the opening bank without the
agreement of the beneficiary. This kind of L/C is more secure and hence is preferred.
It claims our attention that, according to Uniform Customs and Practice of
Commercial Documentary Credits 500, if a L/C is not marked as being irrevocable or
not, it should be taken as irrevocable.

3. Documents Against Acceptance - Under D/A, the buyer can get the shipping
documents from the collecting bank after he has duly accepted the draft. Once the
seller has delivered the shipping documents, he will have lost his title over the
goods.
4. We will require a Consular Invoice to control and identify goods. The invoice must be
purchased from the consulate of the country to which the goods are being shipped
(Nauru) and usually is prepared in the language of that country.
5. Combined Certificate here the insurer lists the risks to be covered, the insured
amount and the policy number on the invoice provided by the insured, and the other
clauses are to be seen on the invoice.
6. Payment for the goods specified herein shall not mean an acceptance thereof by the
Buyer with regard to its quality. All goods shall be accepted only after the Buyer's
inspection.