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How Export Import with Sucess


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How Export Import with Sucess

  1. 1. FREE REPORT Mean everybody can read, copy or distribute Export Import Basic IS IMPORT What is Import-Export Business? Is Import-Export Business For You? EXPORT How to Start an Export Import Business Explore-Import-Export Business Opportunity BUSINESS How to Import Export The First Stage For Importing Goods The State of China Manufacturing FOR YOU? Export Strategy For Exporters International Export Import Business Suggestions for Packing When Shipping Across Explore-Import-Export Business International Borders Opportunity 10 Importer Security Filing FAQs ISO 9000 Shipping Standards International Etiquette Rate of Exchange Explained For Import & Export Www.TodayProductReviews.Com Business WHAT IS IMPORT-EXPORT BUSINESS? Import-export are important areas of business. When a person or a company buys goods like groceries, farm produce, textiles, machine parts or even crude oil from its own country and dispatches them to other countries for sale at a higher price, it is called export. When goods and raw material are brought from other countries to sell in one's own country keeping a profit margin, it is called import. Both kinds of trade depend on the internal productions of a country whose surplus is sold in the foreign market. A share of the profit coming from the sale of a country's products also goes to the national treasury of the country. So both import export are important for a nation's economy. International relations too have a great impact on import export. If a country is not on good terms with another which is a prospective buyer of the former's products, there evidently can be no business. After the 9/11 carnage the US had put embargo on trade with some Islamic nations that had been allegedly involved in planning the terror. Import export data in this system of international trade show there is also competition among all importers. So the quality of the products is never compromised. If the quality of the item for export is poor it turns suicidal for the exporting country's economy as it may permanently lose its market by damaging its reputation in the international trade circuit. Import export shows India's jute usually has a tough competition with Bangladeshi jute, which is usually superior in quality to the former. Previously, there had been cases of the sale of inferior quality Indian jute in the international market. Consequently, India's sale of jute suffered a drought for several years. When starting an import export business it is most important to first collect statistics and buyers suppliers data to help you decide the product and the country you will be dealing with. The first step is an in depth research in all areas of business and customs shipment data will be of great help. Identifying the market and the product are the two most basic decisions to be made at the beginning. Research and planning with the
  2. 2. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? available customs data confirms a successful business venture internationally or domestically. IS IMPORT-EXPORT BUSINESS FOR YOU? Many people want to start a business of their own. To find a suitable business they search through business startup manuals. One day they read about how to start a restaurant, next how to start a cleaning business, after that they happen to come across import-export business. They want to know what is a hot product to import and make a lot of money with. They go to the library, search on Google, talk to their friends and everyone has an idea. They hear importing for the Third World is a way to go. They read about all these countries they vaguely before ever heard of not to mention have an idea where they are, much less a clue what importing from there would really entail. They read they should import a product that is closely related with people's daily life, and that it should be popular. But what is popular? Jewelry is popular, women will always buy it, but there is a problem, they discover, there is too much jewelry already, too much competition. Jewelry is not it. Their mind races on. They discuss importing outdoor equipment, anti-theft devices, how about furniture? But if they are honest with themselves they should realize they have no sense of style, their house is a mess and they have no eye for design. They look around and see the world is full of business deals. They hear the cliché, Find a need and fill it! Indeed, one approach is realizing that a problem of one person offers an opportunity for another person to find a solution for that person's problem. Easy said but difficult to find the right answer for. Deciding what kind of business to start most people focus too much on the income potential of the business and typically pay little attention to what the daily operation of the business will entail, and whether they may actually enjoy that kind of business. When deciding on what kind of business is for you, you should not start by focusing on the business itself, its nature and income potential but on what type of lifestyle you really want! Chances are you will discover your lifestyle business and start an import export business. Thus you need to start with a vision of a life you see yourself living. But unfortunately most people do not clearly know what they want. They will say they want to make more money, buy a new car and pay off their bills. But in reality they will always have more bills and their life continues in the same rut. Paint a clear vision of what you want your life to be, and you shall find the business to start. HOW TO START AN EXPORT IMPORT BUSINESS International trade is one of the oldest and the most popular form of business. Trade between countries existed centuries ago and has evolved over the years. It is now one of the most rewarding and satisfying industry. To start your own export import business, it is very important to know the commodity you want to trade. Once you have decided the commodity, define an international www. | 2 |
  3. 3. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? market for your product. Then while tying loose ends at the domestic front as hiring experts on shipping, documentation, claims, incentives, packaging and acquiring the commodity, it is extremely important to market your product in the country you want to export your product to. Advertising along with market research plays an important role too. A whole lot of government consent and authorization is needed to start off with the shipping of the goods. Remember to have in place the license to export or import. There are taxes and duties that should be paid for. Everything from food articles to cars, jets and even commodes and an incredible list of millions of products are bought, sold or distributed in some part of the world on a daily basis. This trading of goods is worth millions of dollars. A country tends to import products that they are not able to manufacture or produce efficiently and economically. They export goods that they can inexpensively manufacture. Export and import of products has to be handled with complete knowledge of rules and legalities of the two countries. Certain trained individuals and experts handle the operational part as whole lot documentation and technicalities is required to ship the goods between two countries. Familiarize yourself with rules, tax details and simply go ahead with your own export and import business now! EXPLORE-IMPORT-EXPORT BUSINESS OPPORTUNITY A large number of goods come into and depart the coasts of every country. Most of the daily utilities that you buy from your local provision stores each day may have come from overseas nations. They come from all over the globe to meet the demand for that product in your nation. If you are an entrepreneur and you are keen to expand globally then there is no better thing to initiate than export import businesses. Export import trading is one of the quickest growing fields that entrepreneurs are getting involved in because small money is required to initiate and continue the business. Remember that there are literally millions of items out there that people desire and want and they will buy those items at a significant mark up. By being smart and appropriately managing the products that you trade, you can simply turn an export import firm into a great business opportunity. How does exporting importing work? Well, let's have a glance at some of the methods that you can consider to get into a great business opportunity: Discover perfect markets - Let's say you come across an item like specialized body kits for a particular car. You make out that there's a big fan club for this car but you haven't observed any of these body kits in that region, then there is an opportunity to sell it in that market. Discover the geographical requirements - Remember that not all exporting is just nation to nation. You can also trade products between states. So pay consideration to what products people around you or people abroad are demanding and try to discover a provider for those products. Keeping your ears and eyes open can truly help you out to capitalize on demand. www. | 3 |
  4. 4. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? Discover what other countries need - Export Import is not just about trading from other parts and distributing those goods in your region. You can also discover items that others require that may be produced in your region at a very competitive cost. You can start shipping those items abroad. Again, it is all about canvassing marketplace to discover what people are looking for. Export Import is one of the greatest business opportunities. It is simple to establish and for the most part often only needs you to effectively manage your customers and manufacturers, without even having to actually receiving the products. All you have to do is control the distributors and those that desire to buy them. Find an item, fill a gap - that is what the export import trade is all about. If you are already identified a product you can make rapid earnings on by importing and then selling, you have already taken your initial step towards export import success. THE FIRST STAGE FOR IMPORTING GOODS When it comes to importing from China or any foreign country, there are 3 major stages that are critical to profitable importing. They are Research and Tender, Sampling and Contract Negotiation and Production and Delivery Management. The first stage to importing is the Research and Tender procedure. This involves finding and qualifying appropriate manufacturers for your products. This stage marks the most critical part of the system for importing goods. If you wish to be successful at importing goods, you have to first lay the ground work. It is very easy to find factories on the internet, sites like and can offer an importer a wealth of manufacturers for the merchandise you wish to import. But! The key point to remember when buying directly from associates of such websites is that often a few emails is not enough to decipher the good from the bad. When importing goods some critical questions and procedures need to be followed. In order to ensure your potential manufacture is not just another scammer, you will need to do appropriate background checks. Some areas worthy of researching include:  CREDIBILITY - Ask for testimonials of former clients.  EXPERIENCE IN EXPORTING - Ask where they have exported to in the past? Are they capable of importing goods into more developed countries (higher quality standards)? e.g. Australia, Europe etc.  QUALITY AND WORKMANSHIP - Can they demonstrate the most complex and high quality products they have produced?  SERVICE ATTITUDE - How fast do they respond to your inquiries? What is the quality of their replies like?  PRODUCTION CAPACITY - Are they to small or massive (e.g MOQ (Minimum Order Quantities)? Will they be suitable to handle bigger orders as your business expands?  CAPABILITY TO FOLLOW DIRECTIONS - Ensure your potential suppler can understand and follow your instructions and requests.  WILLINGNESS TO ADHERE TO QUALITY BENCHMARKS - Make sure that the supplier is committed to developing a long term relationship that includes ensuring your quality guidelines are meet whenever you are importing goods from them. www. | 4 |
  5. 5. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? The initial step for importing goods is often where the most effort is required. Prior to investing in the sampling or production process, it is important that you initially manage the problems surrounding importing goods by making sure you have found a manufacturer that is trustworthy and right for your importing needs. THE STATE OF CHINA MANUFACTURING When you look at a large proportion of the worlds manufacturing you will notice that a large amount of it takes place in China. Most products that you pick up off the shelves these days have made in China stamped on them somewhere. So why has China manufacturing become such an attractive proposition to companies these days? Well for a start if you look at the country you will notice that it has one of the largest land masses in the world and obviously with that comes a large population that needs work. China is still a communist country and therefore has come up against a number of human rights issues for the way some people are forced to work for very little in conditions that aren't exactly suitable for the type of work undertaken. Obviously not all China manufacturing plants are run under such a strict regime and this is why a lot of western companies choose to place their manufacturing in places like China. Most of the major sporting and clothing brands have China manufacturing branches that produce all their latest products. Nike, Adidas and many more companies all utilise the cost benefits of producing their products in China. Some people sometime bemoan the fact that all the manufacturing work has been shipped off to China. However, if you run a business your main aim is to get your product produced to a specified and satisfactory level at the cheapest price possible. That is how you make a profit and that is the most simple rule you will find in business. Obviously the work that is being performed at the China manufacturing plants is to a satisfactory level for the companies otherwise they would move their production elsewhere. The worrying thing seems to be that very few people seem to worry about the working conditions of the workers. People have exposed some of these employers for keeping people in cramped and unworkable conditions and yet after the company issues a full and frank apology and mentions that they didn't know about the working conditions, nothing really changes. The clientele has an important role to play in this also, making sure that manufacturers play by the rules. If we did then we could ensure that no worker has to struggle and sweat all day to earn a pittance that isn't enough to fund basic food, drink or accomm EXPORT STRATEGY FOR EXPORTERS The importance of securing and protecting intellectual property (IP) rights often only becomes apparent for Malaysian exporters when it is too late, i.e. when faced with an infringer or when an infringement suit has been filed against them. Such problems usually arise because of the lack of awareness of the value and importance of IP rights and the role they play in modern day commerce. When planning their export strategy, many exporters either omit the step of protecting their IP rights abroad or list it as the last step in their strategy. www. | 5 |
  6. 6. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? This article intends to raise awareness among Malaysian exporters on the methods and importance of securing their IP rights abroad, how to ensure exporters' products do not infringe the IP rights of third parties and how exporters can even gain additional revenue streams by exporting their IP without the accompanying product. Do Not Underestimate The Ip Rights In Your Product IP subsists in almost every aspect of a product. There is IP in the packaging of the product, in the know-how and technology behind the design and manufacture of the product and in the labels and booklets accompanying the product. If these IP rights subsisting in the product and the trade name are not protected, unnecessary costs and risks could threaten the company's survival or the sales of the product in the overseas market. Timely Action Required If the product is successful abroad, it is likely that another party would manufacture a similar or identical one and try to make a profit. Or if the exporter advertises extensively abroad and their trade name becomes well known among the locals, another party may attach the exact or similar name onto their products, thus taking an unfair ride on the reputation of the trade name. Without IP protection, it would be time-consuming and more costly to stop these offending acts, if at all possible. In some cases, it may be too late. For instance, when an invention is exhibited or sold abroad prior to any application for patent rights in that country, the early disclosure results in loss of novelty, one of the criteria for patentability of an invention. This would render the invention non-patentable and the exporter would have lost 20 years of potential monopoly on that invention. Exporters should adopt the golden rule in IP - apply for IP rights before the product is introduced into the market and NOT when the product is successful and infringers have appeared. To avoid the possibility of infringing the rights of other parties abroad, exporters can conduct a search on the database of registered trademarks, patents and industrial designs in the country they intend to export their products to. A search for trademarks, industrial designs and patents will reveal whether a similar brand name, industrial design or invention exists. As IP rights are strictly territorial, a search should be done in the national IP office or the regional IP office, if the country has one. The search report from the IP office assists in determining the availability and registrability of a trademark and industrial design and the patentability of a product. If there is a similar trademark, the exporter can change his mark and then distribute his products to the overseas market. For patents, if there is a similar granted patent or industrial design registered, the exporter should consider exporting his product to other countries where a similar patent or industrial design did not exist. Alternatively where possible it should innovate upon its product further to enable it to be patentable or design registrable. Exporters should seek the professional advice of patent agents in this respect, as the issues concerning the patentability of innovated products are quite complex. Issues To Consider When Creating A Trademark In the case of trademarks, care should be taken in choosing a name that is suitable in relation to the country the products are being exported to. What may be a meaningless word in Malaysia may be an offensive word abroad. Or the word may be unpronounceable to the people of that country. Also worth considering is whether you should register your trademark in its translated version, i.e. in the local language as a preemptive measure against the infringement of your trademark. A good example would be one global giant in the beverage industry registering "ke kou ke le", the Chinese version of their famous trademark in China, while Nestlé has a Chinese version of the "KIT KAT" mark. www. | 6 |
  7. 7. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? Starbucks could have avoided unnecessary legal expenditure had they registered the Chinese version of their world famous trademark. Their mark was infringed in China by a local coffee chain, which was using the mark "XINGBAKE". The word "XING" means "star" in Chinese and the word "BAKE" sounds like "Buck". Fortunately for Starbucks, the Chinese courts ruled in their favour at the end of the two year legal battle. Exporters need to carry out appropriate research before creating a mark for the overseas market. A mark which is not descriptive of the products it applies to in one country may be descriptive in another country. Whether a mark is descriptive depends on how the term is understood by the traders in the same course of business or consumers of the specified products. A recent case in Spain is an apt example of this. There, the mark 'MATRATZEN' was allowed registration for mattresses and related products despite the fact that the word 'Matratzen' means mattresses in German and was not allowed registration in Germany. Protection Of Copyrights There is an almost global protection for copyright work. In most countries, including Malaysia, registration is typically not required and copyright subsists in the work in its expressed form. Ultimately, copyright protection depends on national law. Before publishing a work abroad, one should investigate the scope of protection available, as well as the specific legal requirements for copyright protection in countries in which protection is desired. Ip Rights In Licensing, Franchising & Joint Ventures Securing IP rights abroad enables the owner to generate more income from the IP. This is done through the execution of licensing, franchising and joint venture agreements, which gives rise to the owner authorizing a third party to either use their registered trademark/service marks or allow them to manufacture and distribute their products for a royalty fee. As a result, companies earn additional profit while retaining ownership over their inventions, innovative designs, creative works or trademarks. Owning IP rights also gives greater leverage and bargaining power to companies in negotiating deals with other companies or individuals. Ownership Of The Ip Rights Another important aspect of securing IP rights overseas is the issue of ownership of IP rights in a country, which is often overlooked. The importer, distributor, joint venture partner or franchisee often registers the IP rights under their own name as though they own the IP rights. Care should be taken in all agreements with foreign parties to ensure all IP rights subsisting in the product and any improvements/innovation in the product belongs to the Malaysian owner. Exporters need to ensure that their IP rights are not 'hijacked' by their foreign distributor, franchisee or joint venture partner. The Author is personally aware of a case whereby one of the Malaysian distributors of an Indonesian manufacturing company had applied to register the manufacturer's mark in Malaysia despite the fact that ownership in the mark belonged to the Indonesian manufacturer. Enforcement Of Ip Rights Mere attainment of IP rights in a foreign company alone is not sufficient. Third parties may often adopt the IP rights without the consent of the owner. Therefore Malaysian exporters need to put in place appropriate measures or extract obligations from their distributors to ensure that there is close surveillance on any infringement or misappropriation of IP rights in the market place. Bear in mind, mere registration of trademarks, industrial designs or patents is not an end in itself. The foreign government is not obliged on its own to monitor any infringing acts; it provides the legal framework under which offending parties can be sued or prosecuted. It is ultimately the responsibility of the IP rights owner to keep surveillance in the market and take the necessary action in a firmly manner. www. | 7 |
  8. 8. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? Prompt action taken when the offending acts are first committed leads to favourable results, often with little costs. Delayed action can be detrimental to the owner of the IP rights as the offender may then find it worthwhile to challenge the validity of the IP rights. Essential Step In Export Plan The recognition of IP rights subsisting in a product and planned efforts to secure valid IP rights in foreign countries are necessary to obtain enforceable rights. The selection of countries and identification of IP rights to secure must be an integral part of a company's production, marketing and distribution strategies. It should not be an afterthought or last ditch marketing effort. Unfortunately, the laws of all countries do not give the advantage of testing the market before applying for IP rights, so instead, the application of IP rights has to be done at the beginning of the export strategy or even earlier. Note: The trademarks identified in the article belong to their respective owners. The Author does not claim any proprietary right whatsoever; they are used merely for educational purposes. SUGGESTIONS FOR PACKING WHEN SHIPPING ACROSS INTERNATIONAL BORDERS Sometimes, when you're shipping from the US to Canada, there are a few extra details that you may want to prepare yourself with when preparing your shipment for transit. Whatever your distribution logistics methods may be, the common element will be that packages will likely be in transit a long time, and that they will be examined at customs when shipping internationally. These commonalities can inform your packing strategies. First, when you're shipping internationally especially, you want to be sure to pack your shipments as efficiently as possible. Never forget that the physical size of your shipment will affect the price that you pay, and in the case of international shipments when every shipment is going to cost more anyway, packing something in a bigger package than it needs to be in can greatly adversely affect your rates. Strength of packaging is one of the most important things to remember when you're shipping. For instance, if you're using crates, make sure they're all shaped the same, for easy stacking, but also that they're all strong enough to support the weight of the cargo they contain - the same goes for boxes. Worrying about the documentation is also very important when it comes to shipping internationally. Not only should you have all the documentation accompanying the shipment as required, but you should also, as a backup, have copies of all the forms like the commercial invoice and the shipping address placed inside the package incase the documents get lost or the package gets damaged. You should also make sure that your package is able to be opened and resealed with a relatively little amount of trouble. It is fairly common for packages to get opened when they pass through a border crossing, and you want to make sure that the customs agents can do this easily, and without likely damage occurring to your goods. Another thing that you want to make sure of, when shipping internationally, is that all of your breakable items are packaged safely and securely. Because international shipments are going to be subject to much more scrutiny than those which are simply shipped domestically, it means that your packages are likely going to be handled much more. That means more chances for damage, which is why it becomes very important that you package your cargo as securely as possible. Make sure all empty air in packages is filled with packing material like styrofoam or bubble wrap. www. | 8 |
  9. 9. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? 10 IMPORTER SECURITY FILING FAQS 1. Why am I getting a "Duplicate" file message? Someone has already used this bill of lading number to transmit an ISF --- maybe not your shipment. That is why you are getting the "duplicate" file message --- CBP will accept the ISF for the first importer that uses the bill number and will reject any subsequent filings with the same bill number. So, in order to be compliant with the requirements of ISF and if the carrier cannot discover the error on their part, you could request that they issue you a new bill number so that you can correct your ISF filing and retransmit with another bill number. When you receive a reject for your ISF --- it is as if you have not filed the information with CBP. Unfortunately CBP has not provided the filers with any advice on what to do to try and solve this problem (and for right now, until Jan. 26 --- there will be no penalty for failing to file an ISF). The only advice we can give is for you to work with the Bill issuer to resolve whatever problem is resulting in your filing being rejected by CBP, with the last resort, your insisting that you need a new bill number so that you can file your ISF. All of your attempts to resolve this duplicate file reject should be maintained in the system "notes" file to assist with any response to an enforcement action that CBP might take for ISF's filed after January 26th. 2. Do rollover shipments need new ISFs? If you have some cargo that made the shipment but others that are rolled over, you should update the ISF with the information about the cargo that made the shipment. If the ISF has already been transmitted with a bill of lading (BOL) that is being rolled over, you will need to take that BOL off of that ISF as well and request that a new BOL be issued for the rolled over cargo. You will then create a new ISF for the rolled over cargo with the new bill of lading. If an entire shipment is rolled over, you will need to update the ISF if any of the information has changed, including the new bill of lading. If the information is exactly the same, then you don't need to do anything. It may seem difficult to receive a new BOL for a rolled over shipment, but if you have already transmitted an ISF with that BOL, then you will receive a rejected ISF with a Duplicate ISF Transaction error message because Customs will not accept more than one ISF with the same BOL. This can seem problematic, but this is a situation that every vendor will eventually have to deal with and accommodate. 3. What is an AMS Bill of Lading? ISF has brought the term "AMS bill of lading" into the importer's vocabulary, causing even more confusion as to what BOL Customs wants when the importer submits an ISF. The AMS bill of lading is whatever bill of lading is entered into AMS. This is the BOL that you want on your ISF because it is what Customs matches the ISF BOL with the BOL entered into AMS. Even if you believe you import under a house bill or straight bill of lading, it is helpful for you to ask your carrier or freight forwarder for the AMS bill of lading so that you know that your ISF will be matched properly. 4. Why haven't I received a response from Customs after filing an ISF? If you have filed an ISF and have not received a timely response from Customs, don't worry. This occurs when the CBP's system gets overloaded and overwhelmed. If this happens, don't fret; your ISFs have been transmitted and Customs will be aware of the hold up. All you can do is sit and wait for the system to clear up. 5. Can I file my ISF early? www. | 9 |
  10. 10. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? TRG Direct recommends filing as soon as you get all of the accurate data elements. However, if you file your Importer Security Filing before the bill of lading is entered into AMS, you will get a No Bill on File message since there is no bill of lading to match it to in AMS. When this happens, the system will cycle the entry through until the bill matches. Filing an ISF as soon as you have the information is a good way to ensure you file timely. The No Bill on File message will not result in a negative result on your progress report. The sooner CBP receives the information the better because this gives them more time to look through the information and screen it. 6. What is an invalid transaction error? This occurs if somebody attempts to submit an ISF that has already been submitted by a different entity or the information was the same as a deleted ISF. This happens often if you go back and attempt to resubmit an old ISF or if you change your filer code and attempt to resubmit an ISF. 7. Definitions of the Entities (Data Elements). Importer - The entity that is liable for duties and taxes and that is liable for federal regulations when importing into the United States. Consignee - The entity on whose account the items are shipped. This is usually the same as the Importer. Ship To - The name and address that will receive the goods as soon as they clear Customs. This is often the Importer. Manufacturer - The name and address of the company producing the goods. Seller - The name and address of the person selling the goods. If they are household goods, this is generally the name and address of the owner. This is often the same as the Manufacturer. Buyer - The name and address of the entity purchasing the goods. If they are household goods, this is generally the name and address of the owner. This is often the Importer and/or Ship To. Container Stuffing Location - The name and location of the place where the goods will be stuffed into the container. Consolidator - The person who arranges for the stuffing of the goods. HTS - Customs accepts both the 6 and 10 digit Harmonized Tariff Schedule number. It is unnecessary to indicate how many of each item. Country of Origin - Customs requires the country of where each HTS originated. Bill of Lading - This is known the hidden 11th element. The lowest bill of lading is required for all ISFs. 8. What are the different ISF transaction types? A "Compliant Transaction" is used when you are sending 10 accurate ISF data elements. This means you are telling Customs that everything within the ISF is correct (to the best of your knowledge). "Flexible Range" is used when you are not sure what items will be included in the shipment. If this is the case, you would enter every possible HTS code and file using "Flexible Range." However, once you receive accurate information, you need to update the ISF before the ship arrives in port. Once you update and retransmit, Customs will consider the ISF a "Compliant Transaction." "Flexible Timing" is used when you are unaware of the Consolidator or Stuffing Location. Since these items were not necessary previously, Customs allows you to file your Importer Security Filing under this transaction type without those entities. However, like "Flexible Range," the ISF must be updated and retransmitted before the ship enters port. When you file using the Flexible options, you will receive an Accepted with Warnings message and the error message "Complete Transaction Required." This is to remind you that you need to update the ISF and retransmit it using the Compliant Transaction www. | 10 |
  11. 11. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? type 24 hours prior to arrival. The Accepted with Warnings message will appear yellow in the ISF dashboard so it's easy for you to see that it needs to be updated. 9. How can I possibly get the Bill of Lading Number on time? CBP has tried hard to let the shipping community know that the bill of lading has to be issued earlier. Some vendors are using the booking number as the bill of lading to rectify this situation. Most importers require the bill of lading at least 48 hours prior to lading. If you don't receive the BOL before the ship is laden, you will be late. If you are a TRG Direct ISF customer, we have letters that you can send to vendors letting them know that you need the essential data elements early. If they don't comply, we can go to CBP and have them deal with noncompliant vendors. 10. I have done everything I could to transmit a compliant ISF, but was still unable to do so. How do I let Customs know I tried? The notes field is a way for customers to make any notes of any peculiarities on a particular ISF. If anything worth noting happens while filing an ISF, it is important that you make a note of it in this field. The notes will not be submitted to Customs, but it is a safety net for you in case you incur any ISF penalties. That way, if CBP attempts to penalize you on an ISF, you can go into your notes field, remind yourself on the circumstances of that particular ISF, and then use it to show Customs that you performed due diligence to file timely and accurately. This can help greatly when trying to mitigate penalties. The notes field can be edited and updated as often as you like. ISO 9000 SHIPPING STANDARDS The usefulness of an ISO 9000 certification in your business will depend on the type of industry that you are in. ISO 9000 is an international certification that states that your company is up to a quality standard. In certain industries, this is quickly becoming almost essential in order to do business with certain clients, and indeed, even in certain countries. It is essential that your own company adhere to the quality standards published by the organization, but if you're shipping with a third party fulfillment company, they also have to meet all of those posted guidelines. The drug and pharmaceutical industry is one which is largely dependent on this type of certification. Many countries, especially in Europe, are now only doing business with companies that follow these quality certifications. That means that if you plan on doing business internationally, you can stand to benefit a great deal by looking into finding couriers, distribution agents, and fulfillment organizations that also follow all these guidelines. The aim of these types of standards is to promote purity in products. This is important for obvious reasons when shipping drug products. These products need to be produced, handled, and shipped with the utmost care. When that is done, it ensures that all the products are going to be made correctly, so they are effective, and never handled or treated in a way that could lead to any contamination, which could of course ultimately harm the person that is taking them. It makes sense that there are a number of these types of guidelines that companies engaged in the transportation of these goods have to adhere to. Many times, goods can be in the possession of those who transport them as long as they are in the hands of those that produce them, if not longer. That is why it is as important to make sure that transport companies are handling these products correctly. When you're shipping something with a courier company, check to see if they have ISO 9000 quality certifications or ship in compliance with those guidelines. Even if you don't yet have your certification but it is something you are working towards, you should still look into this. If you do business with a courier that meets those guidelines right from www. | 11 |
  12. 12. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? the outset it will mean less effort for you when the time comes to start getting your inspections for your certification, as those will definitely include examinations of your shipping processes. INTERNATIONAL ETIQUETTE As businesses become increasingly more global and bringing people of all races, cultures, and backgrounds closer, learning the skills of proper etiquette on an international level is one of the most important elements for business success and growth. The ability to appreciate and respect cultural differences can be very helpful in understanding why people act in certain ways and gives you a better understanding on how you should act while conducting business or attending social events with them. Each country comes with a set of rules and traditions. In recent news, President Obama was criticized by some critics for bowing to a Japanese Emperor. They argued that as President of the United States, he displayed an act of "weakness" because in America, all are considered created equal and therefore on equal playing field. While others said the bow was not the problem, it was that he bowed and shook hands with a Japanese Emperor. Sources at the White House said the President was following protocol. But the best etiquette approach in this case would have been to follow the lead of the host. Examples like the above show how significant it is to know what to do and when to do it when dealing with diverse cultures. The last thing you want to do is offend someone you are trying to share ideas and conduct business. As a young girl, my lack of social etiquette knowledge resulted in several embarrassing hours, but turned into a lifetime commitment of striving to always put my best foot forward and to help others accomplish the same. Etiquette is not a fad that will go away over time. In fact, I believe that as we become more global in the way we do business and interact on a social level, knowing proper etiquette has never been more important. One of the first things you need to understand is that culture includes areas such as a country's norms, values, behaviors, food, architecture, fashion and art. One area of culture that is important for international business people is etiquette. The English dictionary defines etiquette as the rules and conventions governing correct or polite behavior in society in general or in a specific social or professional group or situation. Basically, what is the common practice of behavior in which a person of another country greets conducts business and entertains. As a business professional, part of getting prepared requires not only the details of the meeting or presentation, but also the social aspects of the meeting. For example, do you know the proper way to introduce yourself and or your colleagues? Introductions may only last a few moments, but they set the stage for the rest of your time with the person's whom you will be conducting business. RATE OF EXCHANGE EXPLAINED FOR IMPORT & EXPORT BUSINESS If your export business is performing well in domestic market for some time, you should be thinking of expanding it to the international market. Not only it can provide you with more profits but selling more units will also help in bringing down the cost per unit. Reaching out to global markets can be your way to prosperity which you have been dreaming for. But before you expand your business to outside markets, you must understand that domestic trade is quite simple when compared to international trade, which brings many new factors into play. Exchange rate is probably the most important one, you must understand what is it and how it can disturb your profits before you go through the pricing process. Let's start with a basic definition. www. | 12 |
  13. 13. February 11, 2010 IS IMPORT EXPORT BUSINESS FOR YOU? Exchange rate: All major countries have their own currencies. When you are selling to these countries, your sellers will be willing to pay in their own currency, while you can demand for a payment in your own currency. The buyer must then go to his bank and have his currency converted. This conversion will be done at foreign exchange rate. Rate of exchange is the value or price of one currency in terms of another currency. Rate of exchange is also a very important factor of the economy, having an impact on country's overall imports & exports. Forms of exchange rate: Two methods are used to determine foreign exchange rate. i) Floating Exchange rate ii) Fixed Exchange rate Floating (or flexible exchange rate), the one widely used in most parts of the world; let the markets decide by means of demand & supply, at which rate the local currency will be converted into other currencies. This type of exchange rate is often fluctuating, and the exporters need to be secure that some dramatic change will not shrink their profits to an undesirable level. Forward exchange rate (estimated exchange rates for some future supply) should be carefully calculated when pricing. Normally exporters come up with a cushion to secure their position in case of sudden change in exchange rate. Fixed exchange rates are decided by regulatory authorities to achieve their economic goals. Providing the lowest cost possible is vital in international trade, so you cannot shift the whole burden on buyers. Thus, it is necessary that you observe your target market carefully, past fluctuations in its exchange rate and economic stability before you finally decide on prices of your products and services. www. | 13 |