|
STEP TWO - LOGISTICS
Once you have developed a business plan for imported products the
next step is devising a logistic plan for physically importing your
merchandise. This is where logistics management on your part
becomes a major decision. Will you be in charge of arranging
for importation of your goods and be physically present with
necessary documentation when your merchandise arrives? Or, will you
make these arrangements via a third party logistics manager such as
a customs broker or freight forwarder?
The documentation
process for imports
When importing, 'standard terms and conditions' should be
established which outline the pricing and quantity arrangements for
importing your merchandise. Once both parties agree upon the terms
and conditions the seller will draft a sales confirmation
that once signed by the importer becomes a legally binding
contract. The length of these written arrangements can vary
depending upon size of order and stipulations between buyers and
sellers.
A Sales Confirmation
or agreed upon proforma invoice must outline:
-
The port of
destination
-
Who is the seller
and buyer
-
Mode of delivery
-
Shipment preferences
-
Date of order and
invoice
-
Country of shipment
origin
-
Quantity either in
number, weight or volume and a description of imports including
country of origin and quality of product
-
Purchase price of
the goods, these figures may vary depending upon type of Currency
used during exchange
All of the following document types may also accompany the shipment
into the US:
-
Customs entries
-
Invoice from
exporter
-
Consular invoice
-
Certificate of
Origin
-
Inspection
certificates
-
Certificate of
manufacture
-
Insurance
certificate
-
Awareness of tariffs
applied to imported goods
-
Determination if a
‘drawback’ on paid duties is applicable
(drawback is applied when goods are imported and then re-exported
after some value-added process has been applied. Drawback is
commonly used when importing and re-exporting between the US and
Mexico)
The following fee based online websites can prove useful if you want
to import yourself. Many customs brokers and freight forwarders use
these web-based applications to ensure accurate submission of import
documentation to the Customs and Border Protection (CBP) agency for
security tracking of various shipments. Third Party logistic
providers can also provide clients with up to date cost analysis,
logistics and import compliance information.
Smart Border -
www.smartborder.com
Open Harbor -
www.openharbor.com
Nextlinx -
www.nextlinx.com
Other logistic
considerations:
There are a
variety of end results for your imported products. Some may act as
manufacturing components for other goods while others come as is and
ready for resale. Determine which route your product will take
before you import. If your merchandise is imported as a
manufacturing component, it may be allowed to be imported into a
'Foreign Trade Zone' if it is being assembled for a product that
will be re-exported.
Because a
Foreign-Trade Zone is considered to be outside the normal channels
of commerce in the
United States
and the U.S. Customs territory, making use of these limited 'zones'
can eliminate tariffs assessed on your goods. To find out if your
imports for manufacture and/or re-exportation are applicable and to
locate Foreign Trade Zones in the US, access the Foreign-Trade-Zone
Online Resource Center at
www.foreign-trade-zone.com and the
National Association of Foreign Trade Zones
at
www.naftz.org.
There are also
certain packaging regulations that must be observed in order to
expedite importation. If a shipment arrives that has been packaged
incorrectly it can be stopped at customs. For in depth guidelines
on packaging ask you third party or port of entry authorities.
Smaller shipments can often be made by air while larger shipments
may necessitate travel by sea or possibly rail or road depending
upon origin of shipment. For larger transactions, there are a
variety of solutions that assure that once the product has entered
into US Customs notification has been made ahead of time and when
the goods have reached the port destination there is customs broker
ready to process the shipment who can offer the following services:
-
Arrange shipment
details
-
Take
charge of cargo upon arrival at the port or airport
-
Process all
documentation of imports
-
Handle any
additional packaging requirements
-
Track shipments
Packaging and
Insurance:
Once you have decided how your goods will be imported make sure that
their packaged correctly and insured. This is where clear
communication between you and your seller is important. Make sure
the foreign seller understands all US Customs requirements. Marking
your merchandise correctly is also critical for making sure it is
not only processed properly but also distinguishable from other
products at Customs. At Customs they can search any part of your
shipment if they deem it necessary. Mis-marked items can hold up
the importation process at Customs which could delay your shipment
for days. Contact your chosen shipping authority for packaging
requirements.
Depending upon what route you take to import your goods, each method
of transport has different insurance options. There are a number of
insurance options. Contact your regional TradePort Service Center
for qualified marine insurance companies
http://www.tradeport.org/assistance_centers/index.html.
Third party logistics managers can prove very helpful in tracking
down shipments when they did not arrive at the expected time or
place, as well as tracking them en route.
The National Customs
Brokers and Forwarders Association of America
www.ncbfaa.org
can link you up to Customs Brokers and Freight Forwarders who can
help you import your goods. They offer informational resources on
their websites with most of the information you will need towards
finding the right customs broker or freight forwarder for your
shipment.
The following websites are resource alternatives that can help you
with the technical aspects of the logistics industry including
directories of custom brokers and freight forwarders.
American Association of Port Authorities -
www.aapa-ports.org
International Air Cargo Association -
www.tiaca.org
Airport Brokers Corporation -
www.airportbrokers.com
Council of Logistics Management -
www.clm1.org
Professional Association of Exporters and Importers -
www.paei.org
|
California Advantages
