Wal-Mart to Stop Selling ‘Egyptian Cotton’ Sheets Made by Welspun India
One of the biggest challenge in International business is the Supply chain management. global supply chain management involves coordinating and improving the flow of goods, services and information in companies around the world. Both companies involved in the import/ export contract have a shared responsibility to maximize compliance with laws and regulations.
In this article, Wal-Mart is removing the products because the legitimacy of this product cannot be proven.
In the article, it is said that they had previous doubts about the authenticity of the Egyptian Cotton, but it was cleared out with couple investigations. At this point, they should had been more carefull and paid special attention to the products sold by Welspun.
Before being able to engage in import/export, some basic steps have to be followed. from the document "Importing into the United States A Guide for Commercial Importers", in the section entry of Goods, it is mentioned that documentations are submitted before it is allowed to enter the United States borders. These documentations are given from the exporter country to the importer country.
in order for a foreign country to export to the U.S. these steps have to be followed and being approved by the U.S.
The customs clearance proves that Wal-Mart agreed to the quality of the product before the documentation was released and approved to enter the territory.