Posts Tagged ‘importing products’
How To: Import Products From Japan
Monday, September 29th, 2008
When it comes to business and the market, many Americans operate under the illusion that the same rules apply to imports from other countries as apply within America itself; namely, grow your business and realize the American dream.
However, all business owners, and particularly those who are importing, have to remember that while the aspirations of the individual are important (if not central in an oblique way) to the well being of the United States, they do not come before the well being of the nation as a whole.
The Pearl of the Orient
So why is this important in an article that discusses imports in Japan? Well, when it comes to the important products being sold today, Japan has us beat in many areas.
Not only that, but the United States and Japan have always had a tense relationship when it comes to trade, largely due to protectionist feelings on the side of the States and isolationist feelings on the side of the Japanese.
This means that import issues and regulations for products from Japan are convoluted in the extreme, and most often have to be looked at on an item by item basis.
So what exactly are the main items that are imported from Japan to the United States? Well, a top three list yields up cars, electronics, and pharmaceuticals in that order.
Other important imports - ones that businesses are built around - include semi-conductors and petro chemicals.
For the individual American businessperson, it is the first three that are likely going to be the targets of your business, so let’s take a quick look as best we can into some of the procedures and customs you are likely to encounter when you are looking to import from Japan.
• Always be polite. One of the biggest mistakes that American entrepreneurs make when dealing with business partners, particularly those in the Far East, is neglecting manners.
Japanese business means you don’t let your feelings show - and that is the most important rule there is.
• Be prepared to pay. Unfortunately for the individual entrepreneur, those cheap prices on all manner of great Japanese products don’t stay so cheap once they are in your hand.
The reason? Those tense trade relations we were talking about. The top three imports from Japan are all areas in which the States would like to take a lead, so in order to combat a flooding of the US market with Japanese goods there are some pretty high tariffs.
You can expect that price to skyrocket once you get it into the States, and you will have to build around that in the retail value.
• Approach business like business! A really big mistake that a lot of foreign importers make with Japanese companies is not treating them like American companies.
It’s hard not to get wrapped up in our perception of Japanese culture, but you have to remember that business is business all over the world - and you can’t take honesty for granted from anyone!
It is also important that, if you are importing anything from Japan, that you keep in touch with current events on the US/Japan trade front.
There are almost continuous court cases being brought up between governments and businesses in regards to Japan/American trade, any one of which could affect you and your business.
Most people find it much easier to go through a middle company, one which can act as a broker; again, this is really only feasible if you are planning on retailing high end goods.
Tags: customs, Doing Business Internationally, how to, import, importing products, international business, japan, products, tips
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How to Prepare for a Product Sourcing Trade Show in China
Friday, February 8th, 2008
For businesses interested in importing products, attending a trade show in China is the best place to start. You’ll have the opportunity to visit thousands of booths - meeting with suppliers, seeing and testing products, and talking to other buyers. You’ll feel a lot more comfortable with the importing process after attending a show, and chances are you’ll be ready to place your first purchase order with a Chinese manufacturer or trading company. To help ensure that your trip to China is a success, here are some tips to help you prepare for the visit:
Create a product binder - This is simply a three-ring binder with different colored folders for each of the product types you are interested in. Before you leave for the trade show, prepare a detailed product requirements sheet for each of the product folders. This sheet should look professional, as it can also serve as an addition to a purchase order. Your product binder should also include folders for: purchase orders (have several blank purchase order forms printed), contact information and business cards you will receive at the trade show, product sheets (that you will collect at the show), questions for suppliers (the questions will be covered next but once prepared, keep several blank sheets in this folder so you can fill them in as you talk with suppliers you are interested in purchasing from) and miscellaneous information. Taking a product binder with you to a trade show is one of the best ways to help you stay organized and avoid later having to sift through a sea of papers.
Prepare a question sheet - Once you find a product that you are interested in, you’ll want to sit down with the supplier to make sure that you are comfortable with the company and that they meet your requirements. Here is a list of questions you may want to include on your question sheet:
* What is the FOB Hong Kong price? That is the price including delivery to the port. You will then have to arrange for transportation from the port to your warehouse.
* What is the minimum order quantity? You’ll find that some suppliers will only sell in container sizes - 20′ or 40′; however, there are others who will agree to sell in smaller quantities - for an increase in price, of course.
* What is the lead time? With this question, you’re asking how long it will take for the goods to get to the Hong Kong port, once you place the order.
* What are your payment terms? Most suppliers will require a percentage of the purchase order total up front. Typically, this will be about 20-30 percent; however, if you are having the products or packaging customized, then the down payment could be as much as 50 percent of the order total.
* Do you offer OEM/customization services? If you wish to have your own logo on the product, or unique product packaging, then you can find out if and how a supplier is able to work with you.
* What quality assurance procedures do you have in place? If they mention a third party quality assurance company, you may want to ask for their contact information in order to double check the information.
* Have you exported to the U.S. before? If so, you should also ask: 1) May I have the contact information to some of your U.S. clients and 2) Do you have the certificates and approvals for this product that are necessary in the U.S.?
* Are you a manufacturer or a trading company? While a manufacturer actually owns the rights to the product and manufacturers it, a trading company is a representative for a manufacturer; many times a trading company will represent several manufacturers.
* Do you have an export license? If not, they will be able to go through an export company, though this may add additional costs to your product.
Placing a purchase order - If the supplier has samples at the trade show and the company was able to answer all your questions satisfactorily, you may decide to place a purchase order right at the trade show - many buyers do. However, if this is your first importing endeavor, you may feel more comfortable collecting all of your trade show information and then reviewing it once you are back in the office. In this case, it would be wise for you to order product samples from the suppliers you are interested in (you will be asked to pay for both the product and shipping). Or, you could ask a supplier if you can place a small initial order, lower than the manufacturer’s typical minimum order.
Attending a trade show in China is both exciting and overwhelming, but being well prepared and organized will definitely make your trip less stressful and more productive!
Tags: Carrie Hinkel, china, Doing Business Internationally, importing products, source, Trade Shows
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Gathering Foreign Market Research
Monday, February 4th, 2008
There are many resources available to help you gather information and market research and get your business ready to sell internationally. The U.S. Small Business Administration offers an International Marketing Plan workbook you can download and fill out. This workbook is an excellent resource to help you to prepare your business to enter the international marketplace and will take you through the steps of exporting.
Some Key Questions to Ask Yourself Before You
Begin Exporting Are:
* Should I expand my company through exporting?
* Do I have any products or services I can export?
* What is the cost of failure?
* Are we prepared for the demand of success?
When you are ready to begin your research, you need to start by identifying the most profitable foreign markets for your products. To get this process underway you will need to classify your product by the HS-Code/Schedule B number found in the Small Business Administration’s export guide or in the export assistance center.
Once you have the HS-Code/Schedule B number, you can then focus in on finding the countries with the markets that will be best suited for your product. This will help you determine which foreign markets will be the easiest to penetrate with the products you intend to export and further define those export markets you intend to focus on.
If you are aware of any U.S. customers or other companies who are doing business with the country you are hoping to export to, talk with them and learn from their experience. Additionally, you can learn a great deal from companies who are exporting, even if their product or industry is different than yours. Often times you can gain good market data through the US International Trade Administration , who also many times has a list of trade associations in a specific industry on their web page.
The following is a list of government resources available to you to help in conducting your research on your international expansion.
* U.S. Export Assistance Centers (USEACs)
* The U.S. Small Business Administration
* The United States Export-Import Bank
* The United States Department of Agriculture
* The United States Department of Commerce and Trade
There are also many resources available that may or may not be tied to the government, but are not considered federal government resources.
These include:
* State Economic Development Offices
* Foreign Embassy Commercial Sections
* Exporters’ Associations
* Trade Associations
With the number of avenues available and the ease of which information can be accessed, you will have no trouble finding and evaluating opportunities for exporting your product or services.
Tags: business resources, Doing Business Internationally, foreign market research, importing products, international trade administration, larry Slusser
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Get Smart and Don’t Get Taken: 5 Common Risks When Importing Goods
Thursday, December 20th, 2007
It’s easy to see why more and more business owners are showing an interest in importing, mainly from China. E-commerce is booming and all that competition means price wars, and importing goods in bulk allows companies to get big price breaks. Although, receiving those discounts means getting through the risks first.
As cynical as it may sound, the two biggest pieces of advice when importing are: trust no one and do your research! There have been too many horror stories of buyers losing money, getting fakes, damaged goods or never getting any shipment at all to think that something like that couldn’t happen to you. However, if you are smart and take all the necessary precautions, you can ensure that your importing experience goes smoothly.
Risks to Look Out For
Fraudulent company - Just because someone tells you their company is a “top exporter”, manufactures products of the “highest quality” and sells to big companies, doesn’t mean they are telling you the truth. However, having the internet on your side makes fact and reference checking easy. To avoid being taken by a less-than-trustworthy company, you should take the following steps:
1) Do a thorough search on Google using the company’s name,
2) Go to wholesaler forums and ask if anyone has dealt with the company,
3) If they claim to do business with a large company, then call that company and find out if it’s in fact true,
4) Talk to the U.S. Embassy in that country and see if they have any records on that company. For China, the website is: http:// www.buyusa.gov/china/en/ .
Unreliable goods - Unfortunately this happens quite a bit. You are shown pictures of products and assured that they are made from certain materials and of the highest quality, etc. Then, when they show up at your warehouse, they are not exactly the same. You may have ordered leather products, and they may instead be a different color or perhaps vinyl or PU (Polyurethane) leather instead of real cow leather. In addition to taking the precautions listed previously, you should also: 1) Request a sample, 2) Make it clear to the overseas company that you expect the exact same goods you were shown and list out the product specifications in writing 3) Have them take several pictures of the merchandise as it is being manufactured and packed, and then email them to you. Companies who have been in business a long time or who have a good reputation are less likely to try to pull this on new customers.
Branded goods that are actually fakes - If you feel like you are getting a “too good to be true” price on iPods or Sony Playstations, then they are probably fakes. No matter how much the overseas company assures you they are the real thing. Even if they show you a picture and you are convinced it’s real - don’t be. Many times they’ll just email a picture of the real product or a fake that looks just like the real thing. Recently, Consumer Reports magazine printed pictures of fakes next to real merchandise and it was hard to tell the difference - everything from New Balance sneakers to iPods. If your retail store tries to pass counterfeit merchandise off as real, both you and your company will be in big trouble - it’s a federal crime! Learn how to tell the difference by checking out our 10 Golden Rules for spotting fake products .
Longer than expected lead times - Overseas companies are notorious for their long production and shipping times. If they tell you 30 days, expect it in 60 days. As long as you expect there will be delays, you’ll never be disappointed with a ship date that keeps getting extended.
Unexpected charges - Many buyers new to importing don’t realize that most of the prices given are FOB Hong Kong - meaning that the shipping charges to your warehouse are not included. There’s also customs fees, import taxes, etc. Do your research and figure out your actual cost of importing before you have placed your order with the factory or manufacturer. Otherwise, you will be in for a huge price shock!
As long as you take the time to do your own research (and plenty of it) you can avoid all of these risks. The problem most first-time importers have is believing everything they are told by overseas companies and not checking the statements for themselves. Now that you’re “in the know”, it’s doubtful you’ll fall prey to any importing scheme!
Tags: Carrie Hinkel, china, Doing Business Internationally, importing products, lowering risk, tips
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Working with Chinese Companies: Do Your Due Diligence
Monday, November 19th, 2007
More U.S. companies are working with Chinese vendors because of the discounted price on a variety of products. Some of these business relationships will work out, and others will not. Just like when dealing with American companies, there are Chinese companies that are good, and others that are in the business of taking your money and giving you shoddy merchandise in return.
To ensure that the Chinese vendor you’re interested in doing business with is trustworthy and reputable, you need to do an extensive background check as well as some online research before you place an order or give them money. Now, Chinese companies aren’t particularly forthcoming with customer references, so you will need to determine if they have a good reputation on your own. But, don’t worry, there are plenty of ways to see if a Chinese company is honest and provides quality products.
What you can do to help insure that a Chinese vendor is reputable:
1. Do a search on Google. Enter in the Chinese company’s name and see what information comes up. Take the time to read everything. You may also want to check other search engines, like Yahoo! to make sure that you are reading as much information as you can.
2. Talk to other U.S. importers. There are several websites devoted to businesses that import products from outside the U.S., including China. One site is TheImportForums.com , but there are also plenty of others, like the Importing/Exporting board in the goWholesale Forums . Ask members if they have heard of the company, or if they have had any experiences with them. Remember, members are on these sites because they want to share information, so most likely they are more than happy to answer your questions.
3. Have a professional research company find out for you. Believe it or not, there are companies out there whose business it is to do research, check references and perform background checks on foreign businesses and their owners. One company that specializes in Chinese companies is Chinese Company Research Services . There are several other companies out there as well, so if you do some research on Google you will come up with a list of research companies and then you can pick the one you are most comfortable with.
4. Talk to the U.S. Embassy in China. They have a Commercial Service division set up specifically to help U.S. companies do business in China. They can be of great assistance in helping you find reputable companies as well as telling you which ones to stay away from. Their website is: http://www.buyusa.gov/china/en/ .
Doing business with Chinese companies doesn’t have to be risky or even nerve wracking. You just need to do plenty of research before deciding to work with a particular vendor. If you don’t, you very well may end up with a pile of junk at your warehouse - and when that happens, good luck getting your money back. Avoid the hassles and headaches by feeling comfortable about a Chinese business before you hand over any money for products.
Tags: Carrie Hinkel, china, Chinese Company Research Services, Doing Business Internationally, importing products, international outsourcing
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Getting Familiar with Importing - A beginner’s glossary of common importing terms
Tuesday, October 23rd, 2007
Before you begin importing products, it will be helpful for you to familiarize yourself with the frequently-used terms within the industry. We’ve provided this short glossary for your reference.
Bill of lading
A form that establishes contract terms between a shipper and a transportation company; under which product is to be transported between specific points for an agreed upon charge. Typically, this document is created by the shipper on forms issued by the transportation company. The bill of lading serves as a receipt of goods, document of title and a contract of shipment.
Customs broker
An individual or company who is licensed to enter and clear goods through customs.
Customs
The agents responsible for collecting the duties imposed by a country on imported goods.
FOB (free on board)
A pricing term indicating that the quoted price covers all shipping charges for delivery to and placing on board a carrier at a specified point. For example, if the shipping point is Hong Kong and your warehouse is in Atlanta and the order states FOB Hong Kong that means that you pay for shipping from Hong Kong to Atlanta. If the order states FOB Atlanta, then shipping is paid for, by the seller, from Hong Kong to Atlanta.
Freight forwarder
An individual or company who arranges for the transport of goods on behalf of a shipper. The duties of a forwarder include booking space on a ship, providing the necessary paperwork, and the clearing of freight through customs.
Letter of credit (L/C)
A document, issued by a bank, describing a method of payment for goods per instructions by a buyer of goods. A letter of credit authorizes the seller to draw a specified sum of money under specified terms, usually once a bill of lading is received.
Duty
A compulsory tax on imports by the customs authority of a country. Duties are generally based on the declared value of the goods.
Packing list
A detail list showing the number and types of items inside a shipping container.
Pro forma invoice
A price quotation provided by the seller in advance of a shipment, informing the buyer of the cost of goods, shipping terms and other items related to the sale.
Licensing
An arrangement under which a company gives permission to another company to manufacture its product, use its manufacturing process, or use its brand name or trademark in return for a royalty fee.
Dock receipt
A receipt provided by an ocean carrier to confirm delivery of a shipment at the carrier’s dock or warehouse.
Cash in advance (CIA)
Payment for goods in which payment is made in full before goods are manufactured. This method is typically reserved for small or customized orders.
Certificate of origin
A document, required by certain foreign countries, stating the country in which the goods were produced.
CIF (cost, insurance and freight)
A term indicating that the cost of the goods, insurance, and freight are all included in the price that was quoted.
Shipping Container
A standard-sized metal rectangular box used to move freight by ship, rail or highway. Shipping containers are 20 or 40 feet long, conform to International Standards Organization (ISO) standards and are designed to fit both on a container ship and atop a chassis towed by a tractor trailer.
Tags: bill of landing, Carrie Hinkel, customs broker, Doing Business Internationally, Free on board, freight forwarder, importing products
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What You Should Know About Importing Products
Friday, September 7th, 2007
If you plan on selling a large quantity of products, then importing may be something you’ll want to consider. By avoiding domestic and overseas middlemen, you’ll be able to get your products at a considerable discount. However, importing can be complicated and intimidating so it’s best to know as much as you can before you begin. Here are some important points that will help you in understanding the importing process:
1. Lead time - The time you place your import order to the time it reaches your U.S. warehouse could easily be 45 days or longer. So it’s best to prepare for your shipment early and to expect some delays in manufacturing and in customs.
2. Shipment size - You’re getting a great deal on price because you’re agreeing to purchase a large amount of goods. Importing by way of container ships will require purchase of either a 20′ or 40′ container. However, it’s possible you can get in on a group order with other importers that will allow you to buy just a portion of the full container.
3. Payment terms - Typically, you will have to pay all or a fraction of the payment upfront. Some manufacturers will allow you to do a Letter of Credit (LC), which is like an escrow account where funds aren’t released to the manufacturer until the Bill of Lading is presented; although using an LC is expensive, as banks take a percentage of the amount for their escrow service.
4. Legalities - There are numerous forms that are required to be completed in order for a shipment to pass through customs. You will need to make sure the forms are filled out accurately and that you have paid the required import duties to ensure that your shipment is not held up in customs.
Un-complicating the importing process
You can make your life a lot easier by working with a freight forwarder and a customs broker. And if you’re lucky, you might be able to find a good company that offers both services. A freight forwarder will arrange for shipment of your products from the factory to your warehouse. This is a complicated process involving several steps and is best left up to a company that is familiar with each step. Many times, you will end up saving money because forwarders are usually given a discounted rate by certain shipping companies. Now, using a Customs Broker will help to ensure that all your paperwork is in order. They double-check each form, making sure you declared the right amount and have labeled everything correctly. A custom broker helps to eliminate any long delays in customs. If your shipment is held, your customs broker will work to move your goods through customs quickly. A custom broker usually only charges a few hundred dollars, but the piece of mind you’ll receive in return is worth much more.
Even seasoned importers have learned that the small cost paid to companies who assist with importing more than pays for itself in freight discounts, piece of mind and time saved.
Tags: advice, Carrie Hinkel, Doing Business Internationally, import, importing products, Product Sourcing, source, tips
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