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Defining the products to import is key fact in success of a import
business. We consider it a essential step in how to import procedures.
The main consideration for the product is price advantages of import
over domestic alternatives.
Search for the products that have been selected for your import
business. There are many resources may assist you to find the products
that are ideal for import business. The internet can be a good place to start. There
are thousands web directories or listing services related to the topic
of import from China. You may register to these sites and post the products
you are interested in, you will likely receive tons of responses from China
manufacturers or exporters. There are several famous B2B
export import business portals on the net, Alibaba and Global Sources
are two examples. They
usually only list those Chinese suppliers that have been verified to be real companies.
These portals are proven to be great trade platform for import
businesses.
As another important "how to import" procedure for an import business,
we must emphasize the importance of establishing close relations with potential suppliers
in China. You should select a few potential
suppliers to communicate with and narrow down the ones that you really want
to work with. To avoid wasting time, you should openly discuss prices,
terms and other trade relations that can be critical for a import
business. You should also obtain samples and review them, including their packaging, instructions and any other
collaterals for quality assurance. You may expect to pay a nominal fee for
the samples. Gather all necessary information
to prepare for placing a trial import order. When placing the purchase order,
make sure to include
as many details as you can think of.
Understanding trade terms and using them properly are also important for
import business. Before placing any formal orders, you need
to understand and confirm with your suppliers about sales, payment and shipment terms. Most
popular terms in the export import business for are "FOB" and "CIF". These
export import terms are closely
related to your landing cost calculations and risk assessments. How to
use the import terms could be complicated. How to balance cost saving
and risk reduction can be tricky. You may want to consult
with an import business consultant and a freight forwarder that has
import business experiences for detail break-down
on the costs and risks. You can also use an import business consultant to
negotiate reasonable trade terms.
Understanding how payment terms work is equally critical to an import
business. The most commonly used payment term for a new import business is paying 30% at time of order and the remaining 70% when the product ships. The down payment gives the
manufacturer/supplier funds necessary to begin production. These terms are
negotiable.
Its necessary for an import business to do homework on products compliance issues. You need to understand the relevant
import compliance regulations beforehand. Besides US Customs and Border
Protection, other government authorities like USDA, FDA, DOT, and ATF also
regulate the importation. Pay particular attention when you import textile
products from china. Go to the websites of these agencies to understand,
register or download the forms. Compliance issues can be very complicated
for some products. It is highly recommended to consult a good import
business related customs house
broker before placing an order.
Selecting a forwarder and customs house broker is next step in the
import procedures. Go to your local international
trade organization/association and customs office to find a list. Visit
them, and select the one you like. For the first time importer, use more
individualized import business services, because you need more attention than you would
expect in the process.
Place a trial order with a written purchase order if everything goes well.
In the purchase order, besides typing out a detailed description of the
products and trade terms, list all needed shipping documents.
As an optional step in how to import procedures, you may want to appoint an
import business oriented inspection company if necessary to check your goods on site in the factory,
and give you a detailed report. This is usually done a few days before the
expected shipment, so you can address any issues that would be raised. This
will allow you to avoid receiving defective or non-conforming goods that
could be detrimental to your import business.
Tracking the transportation and customs clearance status is a duty of
the import business. Your forwarder and customs
broker should take care of your transportation and customs clearance. However,
you also need to track the process and provide assistance, such as providing additional
products information and endorsing bill of landing. You need to issue a
power of attorney to your broker and purchase customs bond for your importation.
If your import business plans to order multiple shipment a years, annual
customs bonds are available for purchase.
Receive the products and keep the records. Now you can go to your next step
to sell products and make profit.
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