Assignment task:
Having experienced firsthand the many product shortages Canadians endured during the COVID-19 pandemic, you decided to start your own business and began researching opportunities for importing healthcare-related products. You registered a company name, Canadian Healthcare Imports, and rented 1,000 square feet of warehouse space at 299 Doon Valley Drive in Kitchener, Ontario.
During your online research, you contacted Loyal Textile Mills Ltd., a large manufacturer of PPE, textiles, and garments headquartered in Chennai, India. Your initial inquiry drew a response from the Manager of International Sales for Loyal Textile Mills, Mr. Balakrishnan, who advised they were not shipping PPE products to Canada because of domestic regulatory issues but hoped to do so in the near future. However, Loyal Textile manufactured other healthcare garments, including medical scrubs and doctor's coats that you felt could be successful as imports (See Appendix A).
During your online conversations with Mr. Balakrishnan, he mentioned that Loyal Textile would be very interested in selling its garment line in Canada since they hoped to secure permission from the Indian government to export their proprietary PPE products within the next twelve months. Mr. Balakrishnan felt it would be easier to sell their PPE products in Canada if you could first establish their line of healthcare garments in the Canadian market while they waited for regulatory approval. Once Loyal Textile Mills received permission to export PPE products, Mr. Balakrishnan suggested they would be open to discussing a licensing arrangement with you for the Canadian market.
As a further incentive, Mr. Balakrishnan offered to ship your first garment order without any advance payment or deposit, stating Loyal Textile Mills would wait for payment until 30 days after you sold their products in Canada. The company would protect its receivable and only require that you arrange and be responsible for delivering the shipment to Canada.
These were very favorable terms, and you expressed your agreement to Mr. Balakrishnan subject to signing a sales contract that you would prepare and forward within the next two weeks. Now that you had secured a supplier, you concentrated your efforts on finding Canadian customers for Loyal Textile's line of healthcare garments.
Question: Draw a commercial invoice to represent the first shipment?