Once you decide on the product you would like to import, it is now time to learn how to import the product: Here are the steps for importing a product:
Choose a Credible Supplier
You will communicate with the supplier through Skype, fax, telephone, email, and even in person. Therefore, you need to search for a trustworthy and reliable supplier. You can meet potential suppliers to choose the one you are comfortable with.
You must also have a good relationship top management of the supplier. Choosing a credible supplier ensures you have a good relationship with the supplier. You will love using the supplier.
Is a License Necessary?
It is important to choose a trustworthy supplier since the supplier is responsible for complying with the applicable complex import export laws in every country and current government regulations.
Therefore, before you choose the supplier, ask the supplier if an import permit is needed in your country, especially if you are importing and selling the product in your country. A good supplier may even help you get an import permit.
You may need to get a license from the state or local authorities before you do business. You will need to show your importer number to the people of Customs Border Patrol (CBP). The importer number is the IRS FEIN or the social security number if you do not own a business.
Alternatively, you can ask the officials to assign a number to the Customs Form 5106. You can find the forms on the website of CBP.
Calculate the Weights and Measurements
You need to know the measure and weight of the product cartons to calculate the costs of importing them.
Can You Import the Products into the United States?
You cannot import some products into the United States because they are restricted and prohibited. That is why you need to check if you can import your products with CBP.
The government does not allow the importation of unsafe items into the United States. It does this to protect its citizens. According to the website of CBP, the officials of CBD protect America from different threats, so they check products at ports.
Choose Transport Company to Help You With Customs
It is much easier to use transport companies, such as UPS Trade Management Services Inc. This is because the company prepares the necessary documents, handles transportation, collects payments on behalf of its clients, and takes care of customs clearance.
You do not have to use a transport company and hire custom brokers at the same time. However, if you decide to use a small transport company, you may need to choose a customs broker. Check the list on the Automated Broker Interface (ABI) for the right broker.
Calculate the costs of importing the product, such as insurance and fee of the transport company, custom duty, taxes, and transport.
You can use the calculations to know the landed costs and potential profits of the products. If you are transporting products across international borders, the government imposes customs duties on these products. The government uses customs duty to control the flow of products to protect the economy of the country. Therefore, the government restricts and prohibits some products from entering the country.
Choose a Suitable Payment Plan
You can use an international banker to finance your imports. Your banker can help structure a payment plan and advise you on the various risks of doing business with international businesses. You can request your banker to help create a suitable payment for you.
You can use a letter of credit or cash advances, such as paying 1/3 down, 1/3 in a process, and 1/3 final payment.
If the cost of your imports is under $5,000, you can use PayPal to make the payments. However, you must make sure the customer can use PayPal in their country. Remember, there is a 2.9% transaction fee to use PayPal.
If you want to make a large payment, you need to talk to your banker to help you determine the best way of structuring your payment.
Once you know the port of entry where your product will enter the United States, get in touch with the office of the Customs Border Patrol at that port of entry.
The CBP needs to know your products will arrive and who will oversee the transport of your products. This helps streamline the process and minimize hiccups.