Import / Export For Dummies

by Capela, John J.

• ISBN13: 9780470260944
• ISBN10: 0470260947
• Format: Paperback
• Copyright: 2008-06-30
• Publisher: For Dummies

Summary

Import/Export For Dummies covers the ins and outs of the importing and exporting business and provides detailed expert coverage in a clear and easy to understand way.

Author Biography

John J. Capela is an international business consultant who has taught marketing, management, and other business courses for more than 20 years. He also conducts import/export seminars throughout the New York metropolitan area.

Table of Contents

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