May 18, 2012

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Types of Financing Available for Import and Export Businesses

Every type of business will require some type of funding. While importing and exporting are very profitable markets they still require a small degree of financing to allow them to get started. Luckily, there are several dozen different choices when it comes to the type of financing that are available to importing and exporting businesses.

Here is a look at the various types of financing that are available for a business that is looking to start out in importing and exporting.

Bank Loans. The traditional finance option for importing and exporting businesses is that of a traditional bank loan. Banks will treat importing and exporting businesses just like traditional businesses and require that they follow the same loan procedures. Some banks will allow importing and exporting businesses to develop a talk about how important their goods are and what their business plan is. However, a large amount of the funding will have to result on your personal credit and what you can get as far as a business loan.

Export/Import Bank. After contacting the traditional financial institutes there is a separate bank called the import/export business bank. This type of bank will allow you to present your importing and exporting business plan and talk about what it can do for the country. If they decide that the import and export is necessary for the country they could help back your business financially.

Sponsorship. Certain companies that are looking to bring their product either into the country or get it to new customers might be able to help your business. These businesses will help fund your import and export business by offering the financial support that you need. This is done in an effort to get you established so that you can bring the companies product to the consumers that they are looking to reach.

Filed Under: Import/Export, Trades Tagged With: , ,

Basic Guide to Importing Goods

Importing goods can be a very lucrative business depending upon the goods that you are importing. While every import business is different depending upon where the goods are coming from, what goods they are and how much of the goods you are importing, there is a basic guide that all importing businesses can follow. Here is a basic guide to importing goods into the United States.

Check United States Import Rules. The United States has a lot of rules regarding certain types of goods that can be imported and what goods cannot be imported into the United States. It is always a good idea to follow up with United States import laws and rules before deciding what goods you can import.

File a Customs Declaration Form. A customs declaration form must be filled out for every imported good that needs to be inspected. This form can simply be filed online or through your customs broker. A customs agent will be in contact with you regarding your goods and whether or not they need to be inspected based off the form that you filled out.

Pay a Duty Tax. All imported goods will taxed with a duty tax. The only types of goods exempt from the duty tax are those of a personal nature and any goods that were brought on vacation and are considered personal artifacts. Duty tax can be paid to the United States Custom and your Customs agent can help you with where to send the money.

Arrange for Receiving Goods. After the goods are inspected via the United States Customs and Boarder Protection Agency, you will need to arrange to have them shipped to you. Unless you live near one of the US Customs agency checking points you will need to arrange for your goods to be shipped via group or air transportation. After the inspection goods are treated like any other product within the United States boarder.

Filed Under: Import/Export, Trades Tagged With: ,

Questions to Ask Yourself When Starting an Export Business

One of the important factors when deciding whether or not to start an export business is whether there is actually a demand for the goods or products that you will be exporting. The world of importing and exporting can be very, very lucrative if you choose the right products to import and export. This is why it is a good idea to sit down and ask yourself some tough questions before you jump into the exporting business.

Here is a look at the questions that you need to ask yourself before starting an export business.

Is the Product In Demand? You have to access the situation and figure out if the product that you are importing or exporting is in demand. You run a great chance of making more money if you are exporting a product that is in demand and has less competition.

Is the Product Unique? If you are exporting or importing a product that has local competition you must make sure that the product is unique enough to stand out above the rest of the products on the shelves. Nothing is worse than importing products that do not do well because they are not unique enough.

How Much Does it Cost to Ship and Export? Another factor to examine is the cost it will cost to ship and export the various items. Look into what type of taxes, levies and fees there will be associated with the products. All of these fees will cut into your overhead as an exporter.

Do You Have Connections in the Area? While it is not necessary to have connections within the area it is a good idea to try and do business where you have personal connections. Think about the connections that you know and how these will be helpful in your business adventure.

Filed Under: Import/Export, Trades Tagged With: ,

What Is A Certificate of Origin?

There are a lot of terms and documents that will be required when you start up your export business. You must know all the taxes and levies that will be applied on the goods that you are exporting. You must also know whether or not you will need to get licenses or documentation for the products that you wish to export. One of the terms that any person who exports goods will run into is that of a a certificate of origin. Here is a look at what a certificate of origin is, why it is important to export businesses and where one can get a certificate of origin.

A certificate of origin is a piece of paper that documents where the goods were created in. Many times the certificate of origin is different from that of where the products were shipped from because the products were created in a different country.

A certificate of origin is important to the exporting business because all exports must contain a certificate documenting where the product was made in. Without this document the government cannot know where the good came from and thus tax it appropriately. In the United States if an export does not have a certificate of origin the product is denied entry into the United States.

There are two places that a certificate of origin can be obtained. The first place is the country’s chamber of commerce. The chamber of commerce within the nation will issue an official certificate of origin that many countries will recognize. Some countries do not have an official chamber of commerce and in those countries the national consulate will issue a certificate of origin. Where you get the certificate of origin will depend solely upon what country you are doing business with and what type of business structure that country has set up.

Filed Under: Import/Export, Trades Tagged With:

Tips for Running a Good Importing and Exporting Business

The importing and exporting industry is one of the most highly competitive types of industries that you can enter. However, if you should be able to enter the world of importing and exporting and be able to achieve a moderate level of success you will be fairly well off. The key to determining success in the world of importing and exporting is the level of connections and friends that you will make along the way.

Here is a look at some of the tips experts have used in order to make their importing and exporting business a success.

Make Contacts. The key to having a successful importing and exporting business is the level of contacts that you have established. These people are usually people who are located in the country where your imports and exports are from. Since every international market is different and has different ways to operate business, they can help you navigate a very confusing market. These contacts can also help in regards to the business side of things as they will be able to help you should something come up and not require that you travel all the way to that country.

Make Friends. Many countries start business relationships as friends first and the business side comes later. It is a good idea to make as many friends in the country you are importing as possible. They will not only help you in the long run with your business but they can help you understand the culture and traditions of the area that you are working in.

One Item at a Time. Some of the most successful importing and exporting businesses are those that only specialize in one or two items. Many import and export businesses try to import hundreds of goods and end up failing. Start out small and expand as your importing and exporting business grows.

Stay Organized. The last thing you want to happen is a shipment being lost, an order not being placed, or one of those unusual days when everyone calls out sick. Stick to what you know, use software that’s reliable and can offer you everything you need. Also consider cloud computing for your employees to make sharing files and finishing projects easy when partners are traveling or not easily accessible.

Filed Under: Import/Export Tagged With: , ,

Going With a Customers Broker for Those Starting Out in Importing

From the looks of it an importing and exporting business is a fairly easy business to run. After all, all that is required is to receive goods from another country and sell them to consumers. While the reverse is for exporting goods. While it is true that importing and exporting are a fairly easy business to get involved in like all businesses it can be confusing at first. This is why many people choose to go with a customers broker or a brokerage service when they first start out in the importing business.

A customers broker or brokerage company will be able to walk business owners through the process of importing and exporting goods. For a small fee they will do all the necessary paper work, find the ports and other items that will be required for your import industry. Many people will use a customers broker for the first few years to show them the ropes and help them better understand the process of importing goods and then venture out on their own. Other people will stay with brokers forever. The choice is up to you.

Here is a look at what customs brokers will do for you and your import business.

Determine License. A customers broker will help you determine if the goods that you are importing will need to be licensed. If they do they will help you obtain that license from the United States Customs and Boarder Protection.

Finding Ports. There are over 300 different ports that will receive goods for importing businesses. A customer broker will help you find the port that will get you the best rate and get the goods through quicker. This is often the trickiest part of importing goods.

Tax IDs. A customers broker will also help you with any tax filings for the goods that you are bringing in. They will help you get a business tax ID which will help establish your company.

Filed Under: Commodities, Import/Export Tagged With: ,

How to Determine if You Need an Import License and Where to Get One

If you are looking to start an import business you might be wondering if you need an import license for the goods that you will be importing. An import license is a piece of paper that is issued by the government that allows that company or person to bring goods into the country’s boarders. When it comes to the United States many goods do not require an import license. However, there are some goods that are imported that do require a license. Here is a look at what is required to determine if you need a license or not and how to get one.

Determine What You Import. Determining what you are importing is the first step in figuring out if you need a license or not. Most products do not require a license to be imported into the United States. However, chances are if you are importing food you will need a license. Decide what goods you are importing so you can get your paper work in order.

Contact a Custom Boarder Agency. The United States Customs and Boarder Protection is the agency that will be handling the import licenses. There are hundreds of agencies across the country where you can apply for a license for the type of product you are importing. If you are unsure whether you need a license or not it is a good idea to contact that agency just in case. Some items will only require authorization and not require the application of a license to ship the goods into the country.

Apply for the License. Applying for a license is as easy as filling out forms regarding what you are importing and where you will be sending it. Every importer will need to use their import number or business tax ID to identify themselves.

Filed Under: Import/Export Tagged With: , ,

International Trade News: Why China Feels the Need to Use Intellectual Property

Standing before the Joint Commission on Commerce and Trade that was held in Washington D.C. many Chinese government officials announced that they would be putting a tighter rules and regulations on companies within China that steal other foreign country’s intellectual property. These government officials talked to Washington lawmakers about how they would improve the system for awarding patents, ways of incurring information from other companies and other issues that have been long standing issues with the Chinese government and trade world. While many people heard what China had to say about intellectual property and respecting other companies, it is hard to believe that China will start now to respect these measures.

China for a number of years has tried to make its way as one of the world’s top producer of a number of products. However, the distinction of number one producer does not come overnight and the information has to come from somewhere. It has long been a popular way of gaining ground to secretly steal others intellectual property in favor of gaining ground for your particular country. Many experts believe that until China officially gains the status in the world market that they are looking for they will continue this stealing and underhanded measures.

In order for measures and intellectual property to be respected by the Chinese government, many experts believe that laws and regulations will have to be changed across the board. The theft of company’s intellectual property is not just an issue of companies going rouge. In fact, many times Chinese companies are being encouraged by the Chinese government to work at developing similar company strategies as other foreign companies. This is believed to be giving these companies a green light to steal any foreign property or rights.

While China agrees to put tougher restrictions on intellectual property, many foreign countries such as the United States continue to fight for their intellectual property.

Filed Under: Import/Export, Trades Tagged With: , , ,

International Trade News: United States Approves Businesses to Trade with Blacklisted Countries

When it comes to trading with other countries there are certain countries for one reason or another have been blacklisted by the United States government. These countries are usually countries that have made some huge political statement or are engaging in controversial policies and have since been blacklisted from further American trade. However, just this past week thousands of American companies have been approved for trade and shipping billions of dollars of goods to these blacklisted countries.

Generally the way that a blacklist works in regards to trade within the United States is that no trade goes into or out of the country. However, a law was passed that allowed this blacklisted status to be lifted for agricultural and relief aid. Which is how these thousands of American countries have been approved for trade and shipping goods to blacklisted countries.

Here are some of the examples of how these companies have bypassed these countries blacklist status.

North Korean famine. Many of the countries that applied for this special license that is required for trade between the United States and North Korea did so to relieve the famine that has experienced. Companies such as Kraft and Pepsi applied and were approved to send goods over to North Korea, despite the thousands of bans on trade within North Korea. This was because the trading would be used for famine relief which is exempt under the blacklist status.

Iranian Country Goodwill. Another popular country for blacklist trade is that of Iran. The law that allows companies to aid during economic or agricultural crisis has allowed many American countries to head over there and help the government out. Every type of company imaginable has gone over to Iran to help out from Internet providers, gas pipe builders, food and water aid for a facility that is used to train Iranian olympians.

Filed Under: Import/Export, Trades Tagged With: , , ,

International Trade News: China Announces Tighter Exports of Rare Metals

For a number of years China has been the world’s leading supplier of rare metals. In fact, China accounts for over 95% of the world’s rare metals. In a very bold move on Tuesday, the Chinese government announced that beginning in 2011 the country would begin to limit the exports of these rare earth metals to countries all over the world.

What does this mean for the trading world?

The first noticeable effect this limited number will have is an effect on the prices of various products all over the world. Rare metals are used in products such as computers, automobiles, smart phones and other technologically advanced items. With the limited number of rare metals that could be distributed it will drive prices of these products even higher due to the limited amount of metals that will be able to be used for such products.

The other effect that this limited number will have is on those that invested in rare metals. With 95% of the world’s rare metals coming from China, this limited number of exported metals could deeply cut into any person’s finances who have invested in rare metals.

While there is no reasonable explanation for the limited amount of rare metals that will be leaving China, the move is certainly not unexpected. Over the past few years China has slowly been decreasing the amount of exports with little or no explanation. China has also drastically increased taxes on rare mental exports. The taxes on these exports rose from 15% to 25% just this past year. China has also started taxing other exports of metals such as oxides and alloys that are not considered rare metals but still come solely from China.

China has tried to reassure experts and those in the rare mental export business that this limit could be temporary. However, only time will be able to tell if this limitation on rare metals is here to stay.

Filed Under: Import/Export, Trades Tagged With: , , ,
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