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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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  • 1. About Me
    About CITD
    About You
    How to Import into the USA
  • 2. 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
  • 3. IMPORTING IS DIFFERENT
    Logistics
    Change
    Effort
    Time
    Travel
    Money
    Payments
    Commitment
    Culture
    Buyer Needs
    Channels of Distribution
    Regulations
    Time Zones
    Language
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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?
  • 9. 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
  • 10. 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
  • 11. MORE WEBSITES
    imex.com
    microline.com
    trade-circuit.cov
    vendorbase.comlabl.com
    ectrade.com
    europages.com
    5five.tv/tradeleads.htm
  • 12. 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.
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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)
  • 18. 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.
  • 19. 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
  • 20. WHAT AM I?
    IMPORT TRADING COMPANY? (Manufacturing Rep)
    IMPORT MANAGEMENT? (Wholesaler/Distributor)
    MANUFACTURER? – Value Added Reseller (Inputs transformed into goods)
    RETAILER?
  • 21. 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
  • 22. 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
  • 23. 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?
  • 24. 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
  • 25. 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
  • 26. 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/
  • 27. Your Partners
    Your clients
    Your procurement source
    Custom Broker
    Freight Forwarder
    International Banker
    Attorney
    Custom Lawyer
    Certified Public Accountant
  • 28. 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
  • 29. CUSTOM BROKER
    Efficiently & legally obtain clearance through customs
  • 30. Incoterms 2000
    EXW: City, State, Country
    CIF
    CFR
    FOB
    DDP
    International
    Commercial
    Terms
  • 31. 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
  • 32. 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
  • 33. Contact The Manufacturer
    Obtain exclusivity
    Right to commercialize product
    Check USPTO
    Brochures
    Samples
    Warranties – Guaranties
    Marketing Allocation
  • 34. How Will You Pay The Manufacturer?
    Terms
    Letter of Credit
    Wire Transfer
    Payment in advance
  • 35. 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
  • 36. Intellectual Property – Contractual Obligations
    Trademarks – Who owns what
    Exclusive Distribution Arrangements
    Warranties -
    Replacements
    Shared Marketing Costs
    Royalties
  • 37. Getting Paid
    USD Dollars
    Do not sell on open terms or consignment
    Credit Card
    Industry Payment Terms
    Checks
    PAYPAL..COM
    ESCROW.COM
  • 38. Information
    Commercial Attaches
    Business Associations (I.e, Korean/America, Hungarian American, etc)
    AMCHAM
    US Embassy
    Web - Thousands of organizations
    Friends, acquaintances, PXs, churches, etc.
  • 39. 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++
  • 40. 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/
  • 41. 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
  • 42. BUSINESS PLAN - FIRST DRAFT
    Primary objective is to develop a Draft
    Will indicate what next steps to take
    Quick & dirty
    Overall guide
    Reality test
  • 43. 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
  • 44. Customer Service
    You must service your accounts!!!
    Customer Service Academy
  • 45. Q & A
    Riverside CITD
    Robert Corona
    (951) 571 -6443
    (909) 486-3344
    www.citd.org