Building an Import / Export Business

Description

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
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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
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9 Oh,Those Lovely Documents 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