Class 2 for starting an import export business
- 1. Starting an Import/Export BusinessWeek TwoPresented byClarence Light, MS, CPA, CGFM
- 2. Importing and Exporting BasicsTwo sides of the coinSimilar approaches—Pricing, marketing, agency, distributionRegulationImporting—Customs and Border ProtectionExporting—U.S. Department of Commerce
- 3. Importing BasicsPreexisting distribution network and contactsLimited marketing (family members)Shipping and RegulationsEstablishing import activitiesAgentsMarketingDistributionShipping and Regulations
- 4. Importing BasicsFind a productFind the best sourceObtain samplesCost the product the samples representPresent the sample at trade showsOrder stock based on the demand from the trade showsHow Small Business Trades Worldwide, (Spears, 2001)
- 5. Import Information SourcesInternetExample—Thomas Registerwww.thomasnet.comAgents for wholesalers and retailersRegulationsImporting into the United Stateswww.cbp.govInformed Compliance PublicationsWhat Every Member of the Trade Community Should Know About: ……..
- 6. Import Information SourcesAgents for wholesalers and retailersExampleswww.oneworldsourcing.comwww.alibaba.comwww.tradekey.comwww.fita.org
- 9. Import Regulation BasicsU.S. Bureau of Customs and Border Protection (CBP) Previously U.S. Dept. of TreasuryCurrently U.S. Dept. of Homeland SecuritySpecialized Documentation
- 10. Import Regulation BasicsImport ProcessEntry Evidence of right to make entrySurety (bond)Examination of Goods and Entry Documents Classification and Value Assessment of DutyPayment of duty and release of bondRelease of shipment to importer of record
- 11. Import Regulation BasicsTariffs International Trade CommissionInjury determinations (Antidumping cases) Harmonized Tariff SystemQuotasAbsoluteTariff-Rate
- 12. Import Regulation BasicsHarmonized Tariff SystemComplexity rivals the Income Tax Code2,959 pages99 chapters10,523 separate tariff linesInteractive Tariff and Trade Database
- 21. Import DocumentationCommercial InvoiceCertificate of OriginLetter of CreditSight Draft
- 23. Source: Import/Export, Nelson, p. 28
- 24. Mail ShipmentsAdvantagesEase in clearing shipments through CBP Savings on shipping chargesSmaller, low-valued packages may be sent less expensively through the mail
- 25. Mail ShipmentsDuties ≤ $2,000 collected by carrierNo formal entry required on duty-free merchandise ≤$2,000No need to personally clear shipments if < $2,000 in value
- 26. Export BasicsSimilar issues as importing—marketing, agency, distributionPolitical and cultural considerationsU.S. Department of Commerce Export LicensingDocumentationShippers Export Declaration (SED)Automated Export System (AES)
- 27. Export MarketingPotential unfamiliar marketsHigh incentives from U.S. Government Trade deficitGovernment resourcesInternational Trade AdministrationU.S. Commercial ServiceForeign Commercial ServiceSmall Business Administration
- 29. Export RegulationsExport controlsLimited to extensiveMilitary applications, drugs, nuclear materialExport Administration Regulations (EAR)U.S. Department of CommerceCommerce Control List (CCL)Export licensingLess than 4% of U.S. manufactured products require an export license (Nelson, 2000)
- 30. Shipper’s Export DeclarationRequired for most shipments out of the borders of the United StatesBasically for statistical requirementsExceptionsUS to Canada (unless export license required)US Virgin Islands to USUS Virgin Islands to Puerto RicoUS/Puerto Rico to Other US PossessionsOther US Possessions to US