How to Import into the USA
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How to Import into the USA

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How to import into the USA

How to import into the USA

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    How to Import into the USA How to Import into the USA Presentation Transcript

    • About Me
      About CITD
      About You
      How to Import into the USA
    • Basic Business Practices
      Have fun
      Apply common sense
      Define what you want to be
      Is importing a different business?
      Can I sell imported products at a profit?
      Keep records. Count everything
      Expect to keep different hours. Be Flexible
    • IMPORTING IS DIFFERENT
      Logistics
      Change
      Effort
      Time
      Travel
      Money
      Payments
      Commitment
      Culture
      Buyer Needs
      Channels of Distribution
      Regulations
      Time Zones
      Language
    • OR IS IT?
      Still need to sell product procured abroad at a profit
      Do not discount domestic capabilities
      Get quotes from domestic producers
      Compare. Add the time, effort, uncertainty and relative lack of recourse of foreign sourced goods
      Do I need license to import
    • What is an HS Number and How do I get one
      Harmonized Tariff Systems
      http://dataweb.usitc.gov/
      http://dataweb.usitc.gov/scripts/tariff2001.asp
    • WHY IMPORT
      To buy directly from the source abroad
      To acquire products not manufactured in own country
      Cost benefits , cost quality considerations
      Made to order flexibility
      Take advantages of other countries export promotions
      To expand, enhance your business line
      To offset export operation
      To travel abroad
      Minimize taxes, travel abroad
      To make a profit
      Establish business credibility
    • Basics business practices
      Is it legal
      Knowledge of the business
      Knowledge of the Import Process
      Business etiquette as applied to source country
      Accept verbal commitments as stated in a written fully executed contract (in English)
      Trust is nice but ………...
      Be flexible
      Use professionals
    • More ………...
      Keep it simple
      Know your market
      Define limitations
      Make a cold financial assessment
      Is it worth it?
      Has it been worth it?
      Why pay?
    • Sourcing your product
      I have the ideal product/service
      I will be able to sell it at a PROFIT.
      I know that someone somewhere has sourced a product similar to mine at a lower price and that someone is selling it at a higher price. I just need to find the source
      Do not wait for perfection. Settle for pass
      Always seek U.S. sources for comparison
    • WHERE TO SOURCE YOUR PRODUCT
      Embassies/
      Consulates Commercial Attaches
      Associations
      AMCHAMS
      ASK THE SELLERS
      alibaba.com
      taiwantrade.com
      proeastwest.com
      tradeline.com.br
      asiansources.com
      eurotradeleads.com
      busytrade.com
      buysellex.com
      cometotrade.com
      globalspec,.com
    • MORE WEBSITES
      imex.com
      microline.com
      trade-circuit.cov
      vendorbase.comlabl.com
      ectrade.com
      europages.com
      5five.tv/tradeleads.htm
    • Sourcing, defining your needs
      Define your needs
      Have them in writing
      Are they reasonable
      Is there a mutually beneficial relationship between yours and your potential supplier needs.
    • Sourcing, on business relations
      Define relationship
      Recognize imports = different culture
      Quality issues
      Production issues
      Logistical issues
      Payment concerns
      Be prepared to do business
      Have adequate working capital
    • Import Products
      Easy to Import:
      Crafts/Artwork/Glass
      Gems/Semi-precious
      Household appliances
      Tools/Sporting goods
      Musical instruments
      Leather goods
      Stationery / Paper goods
      Difficult:
      Drugs/Spirits
      Aerospace/Radioactive
      Animal live
      Used merchandise
      Foods/Cosmetics
      Chemicals/Combustibles
      Weapons/Explosives
      Vehicles
    • Commonly Prohibited
      Embargoed Countries
      ustreas.gov/ofac
      National treasures, archeological finds
      Material considered pornographic
      Food or products raised in infected countries (foot & mouth; mad cow)
      Products that violate intellectual or industrial right laws
      Products from endangered species
      Drugs not approved by FDA
      Other
    • DO I NEED A LICENSE TO IMPORT GOODS
      U.S. Customs Service does not require an import license for goods brought into the United States. However, other agencies may require a license or certification.
      FDA, DOE, DOJ, EPA, , Textiles, Federal Trade Commission, Wildlife Dep. Of Interior
    • Due diligence
      Check your potential supplier
      Talk to competitors
      Distributors
      Equivalent BBB
      Check with the US Embassy
      Inquire with friends and acquaintances
      Check with Intl. Clubs (Moose, Elk, Lions, Rotary, Masons & other fauna)
    • More on due diligence
      Secure suppliers start small
      Common sense vs genius
      Federal, state, county and city agencies
      Check, recheck your assumptions
      Remember cultural, linguistics and geographical differences
      Use plain, simple, idiom-free language.
    • How Do I Get Started?
      Select a product or service:
      Apply common sense
      Stick with what you know
      Use your cultural knowledge
      Perform marketing research
      Niche product, in niche market
      Management Commitment
    • WHAT AM I?
      IMPORT TRADING COMPANY? (Manufacturing Rep)
      IMPORT MANAGEMENT? (Wholesaler/Distributor)
      MANUFACTURER? – Value Added Reseller (Inputs transformed into goods)
      RETAILER?
    • Import Trading:Primary Activity: Sell products to domestic buyers
      Take title to goods
      Buy product from the manufacturer & resell
      Arrange for shipping and payment
      Advantages:
      You determine price; can make more money
      Long term relationship with both manufacturer and foreign buyer
      Overall, have more control in the marketplace
      Disadvantages:
      More liability
    • IMPORT MANAGEMENTPrimary Activity: Sell foreign goods to domestic buyers
      Don’t take title, put buyer & manufacturer together
      Receive Commission
      Shipping arranged by manufacturer
      Payment arranged by manufacturer
      Advantage: Less liability
      Disadvantages:
      Manufacturer could determine price
      Manufacturer will try to terminate relationship
      Less control
    • Once a product is selected..
      What do we want (as company) to gain from importing
      Is importing consistent with company goals?
      What demands will importing place on key resources? How will they be met
      Are the expected benefits worth the costs or should the resources better used in new domestic business?
    • Perform Market Research Questions To Ask:
      Manufactured in country?
      Is other competition there?
      What price is product being sold at?
      Is there cultural applicability?
      Product meet USA standards?
      Can it be adapted to standards? If so, $
      Restrictions or regulations?
      What are the different markets for your products?
      Who are the distributors?
      Who are the final consumers
    • How To Perform Marketing Research
      TALK TO YOUR COMPETITORS
      WWW.STATS-USA.GOV
      USE ASSOCIATION
      USE INTERNET
      Call End Users
      Visit the BRC!!!
      http://dataweb.usitc.gov
      USE OTHER COUNTRIES RESEARCH!!!
      I.E., http://www.atn-riae.agr.ca
    • How do I get an HTS Number
      Harmonized Tariff # Search http://www.census.gov/foreign-trade/schedules/b/index.html
      2. Entire HTS usitc.gov/tata/hts/bychapter/index.htm
      3. http://rulings.customs.gov/
    • Your Partners
      Your clients
      Your procurement source
      Custom Broker
      Freight Forwarder
      International Banker
      Attorney
      Custom Lawyer
      Certified Public Accountant
    • Freight Forwarder
      They move freight internationally
      Don’t confuse with a custom broker
      Information you need:
      Weight of shipment
      Dimensions of shipment
      Where it is being shipped from
      Where it is being shipped to
      Collect or prepaid
    • CUSTOM BROKER
      Efficiently & legally obtain clearance through customs
    • Incoterms 2000
      EXW: City, State, Country
      CIF
      CFR
      FOB
      DDP
      International
      Commercial
      Terms
    • Pricing Products
      Cost from foreign manufacturer
      Freight /Insurance
      Duty / Custom Broker
      Other Costs /Indirect Costs
      Profit
      Distributor mark-up
      Retail mark-up
      Cost comparison – Competition Price
      Common sense test
    • Documentation
      SLI: Shippers Import Declaration/Bill of Lading/Carrier Certificate naming consignee
      Commercial Invoice from Exporter, showing value & describing merchandise
      Packing List
      Certificate of Origin
      Entry Manifest Customs Form 7533 or Entry Immediate Delivery (Customs Form 3461)
      Rely on your custom broker
    • Contact The Manufacturer
      Obtain exclusivity
      Right to commercialize product
      Check USPTO
      Brochures
      Samples
      Warranties – Guaranties
      Marketing Allocation
    • How Will You Pay The Manufacturer?
      Terms
      Letter of Credit
      Wire Transfer
      Payment in advance
    • Purchase OrderProvide Information For Seller to Make a Sales Decision
      Your Company Name
      Buyers Name
      Date
      Reference Number
      Quantity
      Description
      Unit Price
      Extended Price
      Currency
      Weight of Product
      Dimensions of Product Packed
      Country of Origin
      Point of Delivery
      Payment Terms
      Request Valid For
    • Intellectual Property – Contractual Obligations
      Trademarks – Who owns what
      Exclusive Distribution Arrangements
      Warranties -
      Replacements
      Shared Marketing Costs
      Royalties
    • Getting Paid
      USD Dollars
      Do not sell on open terms or consignment
      Credit Card
      Industry Payment Terms
      Checks
      PAYPAL..COM
      ESCROW.COM
    • Information
      Commercial Attaches
      Business Associations (I.e, Korean/America, Hungarian American, etc)
      AMCHAM
      US Embassy
      Web - Thousands of organizations
      Friends, acquaintances, PXs, churches, etc.
    • More
      Go to fairs, network
      Keep proper records
      When is best to use a wholesaler rather than the source
      Ask your competitors
      International yellow pages
      Settle on pass not A++
    • A few websites
      www.citd.org/trade_info/index.cfm
      calcitd.ning.com
      thomasregister.com
      http://www.cbp.gov/ US Customs
      http://global.broad.msu.edu/ibc/
    • On contracts, trademarks, distribution agreements, pro forma invoices, and ….
      Understand the terms as understood by others
      Contracts should always be in English
      Do not agree to something you do not fully understand
      Leverage available resources
      Take your time
      Persevere
    • BUSINESS PLAN - FIRST DRAFT
      Primary objective is to develop a Draft
      Will indicate what next steps to take
      Quick & dirty
      Overall guide
      Reality test
    • Draft Business Plan must address
      Product selection and modifications if any.
      What source countries are targeted
      For each product what is the basic costumer profile
      What marketing and channels
      What special challenges to each and how to overcome them
      How will the products’ import sales price be determined
      What specific operational steps must be taken and
    • Customer Service
      You must service your accounts!!!
      Customer Service Academy
    • Q & A
      Riverside CITD
      Robert Corona
      (951) 571 -6443
      (909) 486-3344
      www.citd.org