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An introduction to the import process with a China sourcing bias. By Peter Keller, VP of LivingDirect
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Intro to import
- 1. Intro to Import Peter Keller peter.keller@yahoo.com www.peterkeller.net
- 3. Why Create and Capture Value
- 4. How
- 5. Payment Incoterms Vehicles Terms
- 6. Logistics Freight movement Import duties Risk of loss Insurance Parties involved Agency
- 7. Risk! Financial Risk of loss (goods) Quality Personal safety Property damage Recall Inventory Currency Agency
- 8. Dispute Resolution Clarity upfront Have options and “outs” Leverage the future relationship- to a point Your rules are not their rules Do you really want to sue someone in China?
- 9. Why China? Ease of business Cultural differences… but everyone loves money The “China Price” But… China bubble may pop soon Human rights, etc…!
- 10. Questions?
- 11. Appendix- Importing from China Finding Suppliers Alibaba.com Globalsources.com Background China Road by Rob Gifford (book) Blogs China Law Blog Silk Road International My worldview The Clash of Civilizations by Samuel Huntington (article, then book)
Editor's Notes
- Company timeline1999 founded, compactappliance.com2001 I joined2003-ish first microsite2004-2005 began DI and private label operation2010- $48 million revenue, double-digit growth rate+ every year since founding, profitable (privately held), 65 employees, 8 transactional sites
- Add value for customersBetter feature setLower priceCapture value for companyReclaim the margin from distributorsReap greater sales revenuesDemand elasticity (lower pricing = higher sales volumes)Better products= higher sales
- Have a product ideaFind a factoryNegotiate everything!PriceTermsDelivery schedule/time frameQuality Assurance (QA)Returns program, parts allowance, etc.OrderPO- PI – Payment VehicleReceive, sell, feedback, repeat
- IncotermsFOB, EXW, CIF, moreVehiclesWireLetter of CreditDocument Presentation (DP/DA/DC)TermsDeposit -> BalanceSailingDays after Sailing/ Sailing DocumentsOpen AccountFOB vs. Landed Costing
- Factory -> Dray -> Port -> Port -> Rail -> Dray -> WarehouseHTS codes
- Personal safetyCustomersYou!CurrencyRMB appreciation is virtually guaranteedAgencyCorruption