Import/Export for Dummies

Introduction     1About This Book     1Conventions Used in This Book     1What You're Not to Read     2Foolish Assumptions     2How This Book Is Organized     3Icons Used in This Book     5Where to Go from Here     5Breaking into the Import/Export Business     7Introducing Import/Export     9Defining the Import/Export Business     9Exporting: Do you want what I've got?     10Importing: Can I sell what you've got?     12Environmental Forces That Make International Business Different     12Forces you can control     13Forces you can't control     13Figuring Out Your Role in the Import/Export Business     19The Benefits of Import/Export     20Increasing sales and profits     20Taking advantage of expanding international economies     20Making use of trade agreements     21Lowering manufacturing costs     24Determining Your Place in the Food Chain: Import, Export, or Both?     26Deciding Whether to Become a Distributor or an Agent     27Distributor     28Agent     30Analyzing Start-Up Costs     32Pondering Profit Potential     33Rules and Regulations to Consider before You Get Started     35If You're Exporting     36Export licensing     36Other export regulations     39Customs benefits available to exporters     41If You're Importing     42Import licensing, restrictions, and prohibitions     43Getting import help from commodity specialist teams     45Figuring out the tariff classification of your imports     47Organizing for Import and Export Operations     49Selecting a Company Name     49Choosing a Form of Organization     51Sole proprietorship     52Partnership     54Corporations     57S corporations     59Limited liability companies     59Setting Up Your Business     60Registering your business     60Opening a bank account     60Selecting an office location     61Getting connected     61Opting for a Web Site     63Planning for the kind of site you want     63Registering your domain name      64Finding a Web host     64Considering content     65Working on Web design     65Promoting your site     66Selecting Products and Suppliers     67Selecting the Right Products     69Choosing Whether to Be a Generalist or a Specialist     69Introducing the Three E's of Product Selection     70Experience     71Education     71Enthusiasm     71Assessing a Product's Potential     72Connecting with Overseas Suppliers for Your Imports     75Identifying Countries That Have What You Need     75Finding Overseas Suppliers     77Subscribing to trade publications     77Hitting the Internet     81Attending a trade show     84Contacting foreign governments     84Requesting Product Samples     85Hammering Out an Agreement with Your Overseas Supplier     85Finding U.S. Suppliers for Your Exports     89Researching Potential Suppliers     89Thomas Register     90WAND.com     90Industry trade directories     92The Directory of United States Exporters      93Building a Relationship with Your Supplier     94Dealing with Rejection     94Drafting an International Sales Agreement     95Identifying Your Target Market and Finding Customers     97Looking at Marketing     99What Is the Market?     99Considering the consumer market     99Boning up on the business-to-business market     100What Is Marketing?     101Identifying Your Target Market     102Researching the market     102Segmenting the market     104Exploring buyer behavior     106Developing Product Strategies     109Product mix     110Branding     111Packaging and labeling     112Warranties and guarantees     113Pricing Your Products     113Promoting Your Product     116Distributing Your Product     118Researching Export Markets     121A Step-by-Step Approach to Export Market Research     121Screening your potential markets     122Assessing your target markets     123Making conclusions     126Online Research Sources      127Researching Import Markets     131Identifying the Characteristics of Potential Buyers     132Researching Your Competitors     133Researching at Trade Shows and Merchandise Marts     136Where to find one     137What to do when you get there     139Making Export Contacts and Finding Customers     141Department of Commerce Business Contact Programs     141International Partner Search     142Commercial News USA     142Customized Market Research     143International Company Profile     144Trade Opportunities Program     145National Trade Data Bank/Global Trade Directory     145Gold Key Service     146Platinum Key Service     146Department of Commerce Trade Event Programs     147Trade Fair Certification Program     148International Buyer Program     148Certified trade missions     149Multistate/Catalog Exhibition Program     150The Export Yellow Pages     150Business Information Services for the Newly Independent States     151Small Business Administration-trade mission Online     151State and Local Government Assistance     151Locating Customers for Your Imports     153Industry Distributor Directories     153Encyclopedia of Business Information Sources     154The Directory of United States Importers     155Encyclopedia of Associations     155Salesman's and Chain Store Guides Directories     156Salesman's Guides     156Chain Store Guides     157Manufacturer's Agents National Association     159How It Works     160Completing the Transaction: International Trade Procedures and Regulations     163Making the Sale: Pricing, Quotes, and Shipping Terms     165Pricing Your Exports     166Costs     167Market demand     168Competition     168Setting the Terms of Sale     169Filling Out the Paperwork: Quotations and Pro Forma Invoices     171Methods of Payment     173Looking at the Main Forms of Payment and Analyzing Their Risks     174Cash in advance     175Letter of credit     176Bill of exchange (or draft)     187Open account     191Consignment      191Factoring in Foreign Currency Risks Due to Fluctuations     192Noting Non-Cash Methods of Payment     192Packing and Shipping - with the Right Documentation     195Recognizing the Benefits of a Freight Forwarder     195Packing and Labeling Your Shipment     197Covering Your Assets with Cargo Insurance     199Nailing Down the Documentation     199Commercial invoice     200Consular invoice for exports     202Shipper's letter of instructions     202Bill of lading     202Air waybill     205Certificate of origin     205Inspection certificate     205Dock and warehouse receipt for exports     205Destination control statement for exports     206Insurance certificate     207Shipper's export declaration for exports     207Export license     207Packing list     209Getting Your Goods: Customs Requirements and the Entry Process     211Understanding U.S. Import Requirements     211Providing Evidence of Right to Make Entry     212Making entry yourself     213Entry made by others on your behalf      213Working with a Customs Broker     215Looking at the Documents Required to Enter Goods into the United States     216Deciphering the Different Types of Entry     218Immediate delivery     219Warehouse entry     219Foreign trade zones     220Mail entry     220They're Here! The Arrival of Your Goods     222Open Wide: U.S. Customs Examination of Goods     222Determining the dutiable value of your goods     223Deciphering your goods' dutiable status     225Looking at duty liabilities: Who owes what and when     229Considering Country-of-Origin Markings     229Packing and Commingling: Making Sure Your Exporter Follows the Rules     230Identifying Import Quotas     231Being Aware of Anti-Dumping and Countervailing Duties     231The Part of Tens     233Ten Keys to Becoming a Successful Importer     235Familiarizing Yourself with Import Control and Regulatory Requirements     235Knowing How to Classify Your Products for Tariffs     236Checking to See Whether You Qualify for Preferential Duty Programs     236Researching Quota Requirements     237Checking the Reputation of Your Foreign Seller     237Understanding INCOTERMS     238Analyzing Your Insurance Coverage     238Knowing What's in the Purchase Contract     238Hiring a Customs Broker     239Staying on Top of Recordkeeping     239Ten Keys to Becoming a Successful Exporter     241Identifying Your Market     241Assessing Product Potential     242Familiarizing Yourself with Export Controls and Licensing Requirements     243Investigating Import Controls     243Understanding U.S. Export Laws     243Making Sense of INCOTERMS     244Making Sure You Have the Right Insurance Coverage     244Focusing on Foreign Market Risk and Methods of Payments     244Keeping Track of Documentation     245Hiring a Freight Forwarder     245Appendixes     247Glossary     249Resources     261Government Assistance Programs     261The Export-Import Bank of the United States     261Department of Agriculture     262Small Business Administration     262International Trade Commission Offices     263U.S. Customs Regions and Districts     287Currency Index     289Distributor and Agency Agreement Outlines     295International Distributor Agreement Outline     295Details about the Distributor     297Territorial Limitations     297Exclusivity     298Minimum Performance Requirements     298Products Covered by Agreement     299Price of the Products     299Risk of Loss     300Maintenance of Stock and Parts     300Payment Terms     300Ordering Procedure     300Promotional Strategy     301Anticipated Purchase Requirements     302Expenses     302Trademarks and Brand Names     303Product Enhancements     303Covenant Not to Compete     303Compliance with Law     303Warranty     304Product Liability Insurance     304Customs Clearance and Payment of Customs Duties     304Confidential Information and Trade Secrets     305Choice of Law, Arbitration     305Assignment, Appointment of Subagents     305Term of Agreement     306Alternative Dispute Resolution Procedure     306Arbitration     306Other Clauses, If Applicable     306International Agency Agreement Outline     307Brief Overview     307Details about the Supplier     308Details about the Agent     308Territorial Limitations     309Exclusivity     309Minimum Performance Requirements     310Products Covered by Agreement     310Price of the Products     310Risk of Loss     311Maintenance of Stock and Parts     311Payment Terms     311Ordering Procedure     311Promotional Strategy     312Employment of Dedicated Salesperson     313Sales Forecast     313Expenses     314Trademarks and Brand Names     314Product Enhancements     314Covenant Not to Compete     314Compliance with Law     315Warranty     315Product Liability Insurance     315Customs Clearance and Payment of Customs Duties     316Confidential Information and Trade Secrets     316Choice of Law, Arbitration      316Assignment, Appointment of Subagents     316Term of Agreement     317Alternative Dispute Resolution Procedures     317Arbitration     317Other Clauses, If Applicable     317Index     319