Building an Import / Export Business

This bestselling, up-to-date guide shows you how to start your own import/export business, from researching a raw idea to a successful launch to ongoing, profitable business operations. Complete with real-life examples from importers and exporters, it helps you every step of the way, from targeting a market and preparing a business plan to dealing with foreign currencies, shipping procedures, customs requirements, and more. It also shares tips to help you take advantage of NAFTA and other trade pacts, plus online resources to help you start and grow your business.

Table of Contents:
Acknowledgments xi Introduction 1 1 Your Big Idea: Is It Any Good? 5 Importing Handicrafts from Ecuador 5 Exporting Hardware 6 Importing “World Clocks” 7 Exporting Printer Paper 10 Brokering Computer Equipment 12 Sources of Information and Help 12 2 Is This Business for You? 14 Have You Failed Yet? 14 How Is Your Financial Situation? 15 Interest in and Knowledge of the World 15 Familiarity with Foreign Cultures and Languages 16 Persistence, Patience, and Judgment 17 Attention to Detail 18 Contacts with Buyers or the Ability to Make Them 19 Twenty Important Questions 19 Import Merchant Example 26 Export Agent Example 27 Sources of Information and Help 28 3 Setting Up Your Business 30 Forms of Organization 30 Your Trade Name and Logo 34 Opening a Bank Account 36 Setting Up Your Office 37 Stationery and Printing Needs 38 Accounting and Taxation 39 Obtaining Financing 41 Sources of Information and Help 43 4 Beginning with a Buyer 45 Why Someone Would Buy from You 45 What Value Means to Your Customers 46 Attracting Customers—Some Examples 47 Finding Buyers as an Importer 49 Finding Buyers as an Exporter 50 Sources of Information and Help 54 5 Choosing Products and Suppliers 56 Finding Products to Import 56 Getting Product Samples 60 Testing Products in the U.S. Market 61 Finding Foreign Suppliers 63 Finding Products to Export 68 Lining Up Suppliers 73 The Formal Supply Agreement 75 Protecting Your Interest 80 Sources of Information and Help 81 6 Marketing in the United States and Abroad 86 What Is Marketing? 86 Marketing Imports 87 Marketing Exports 100 Sources of Information and Help 104 7 Money Matters 108 Credit Decisions on Suppliers and Customers 109 Methods of Payment in International Trade 112 Export Credit and Credit Insurance 124 Foreign Currency Transactions 126 Countertrade 128 Sources of Information and Help 130 8 Packing, Shipping, and Insurance 133 Packing for International Shipment 134 International Transportation 141 Shipping Terms 150 Marine Insurance 153 Brokers and Forwarders 155 Sources of Information and Help 160 9 Oh,Those Lovely Documents Contents 164 Commercial Documents 165 Banking Documents 173 Transportation and Insurance Documents 176 Government Formalities Documents 182 A Few More Thoughts on Documents 187 Sources of Information and Help 188 10 The Regulation of Foreign Trade 191 U.S. Customs and Border Protection 191 Getting Deeper into Customs 200 Other Federal Regulations 207 State and Local Regulations 217 Regulation of Exports 218 Sources of Information and Help 224 11 NAFTA, GATT, and Other Trade Pacts 229 Trade Agreements 229 Preferential Arrangements 239 Sources of Information and Help 243 Epilogue 247 Appendix A: Sample Market Study Outline 249 Appendix B: Guidelines for Business Planning 253 Appendix C: Possible Sources of Financing for Your Business 257 Appendix D: Sample Supply Agreements 261 Appendix E: U.S. Export Assistance Centers 279 Appendix F:Avoiding Import/Export Scams 283 Appendix G: Letters from Store Owners 289 Index 297