the meaning of this sanskrit phrase is :
For the men of great character, the whole world is their family!
उदार हृदय वाले लोगों का तो पृथ्वी ही परिवार है।
if you like to comment/give suggestion on any part of the blog you are welcome at firstname.lastname@example.org
with my experience of 35 years (5 yrs in germany, 11 years in USA, 4 yrs in dubai, and misc. living and travelling) in imports and exports in different countries, different products, i can say that. "it is the easiest, and most profitatble, if some-body guides properly" at the end of this blog, there are many educative articles you can go through for theoritical reading. or the next option is to call me , from any-where in the world, to know and understand this business, free of cost, till i do not have to move myself, except my tongue. i am taking a risk, by giving my phone no. in this article. which is +91-98108 90743. and the email is email@example.com how this is free: this is free only in initial consultancy. but if you would like to choose for doing it, and if there would be any physical movement involved, then i would of course will take a token compensation if the response will be uncontrollable , then i will remove my phone no. from this.
================== now the real , ready to start business for sale: if you want a real business which can fetch you a heavy profit to investment ratio, for example $ 100 k usd per month , just by investment of half million, then contact me at my email address: firstname.lastname@example.org or phone: +91 - 98108 90743 ============================== and now import business for sale : you can make more then 100,000 $ (60 lakh INR) per month. vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv
in a marriage function of a friend in china
======================================= background : many times some of my close friends asked me, that you have spent so much time in international business, then why not let some body get the use of it, who is willing to do/start some thing in exports and imports, if you are not able to exploit it fully. and you will be properly compensated also. i liked the idea that is why this offer in this this blog. ==================================
i am retiring from the business. so i want to hand over this business to anybody who is entrepreneur type and can fly abroad frequently.. this business is good profit making : more than 50 lakh / per month. another important thing is that you have nothing to search for the buyers and suppliers, as we will personally introduce you to all of them. this business is having no gestation, (profit making gap) period. starts giving profit from the first month. we will give you all the product knowledge. one of our man will be with you, untill you are self - sufficient to do it by yourself.
compensation value is not the main thing. this is my result to 30 years import-export experience.
1. roi is more then 10 % per month. for example if you invest rs 1 crore, you can earn 10,15,20 lakh per month.
2. there is already a shortage market for these products, and moreover we are going to introduce with our existing buyers.
and there are so many other theoritical things explained in following pages, just for the persons who are very interested in reading only.
other wise a small meeting with us will give you all the necessary information..
=========================== =========================== some basics of the import business and basic terms :
I would like to provide you some insight like,
Please decide few things like
1. what product are you planning to inmport
2. What is the import duty for these product (there are duty free products,)
3. Which country are you planning to import from (financial viablity and logistical feasibilty)
4. who are the other competitors for the same product in the local market
5. Who are the local manufacturers of the same product, and which all state they serve this product,
6. What is their pricing strategy, and what is their market coverage and reputation,
7. What price are you going to sell this product in the local market
This will help you to get an insight about the profitablity and growth of your business,
About logistics Part,
1. How are you going to get this product )By Sea/Air/or Multi Mode
2. Which trems of shipment are you planning to do,
Like CIF (cost insurance and freight - paid by the shipper
C & F (Cost and freight paid by the shipper,
FOB(frieght on board, shipper will take responsiblity of the shipment till he hand over the shipment to the concerned shipping line or their concerned agent, all other charges will be on your account)
EXW ( Ex factory, Shipper is not at all concerned about the cargo, you need to pick up the cargo from shipper place and all charges will be on your account,
FCA (Free carry alongside , Shipper will provide the cargo to the warehouse of the concerned agent,
Please dont hesitate to call me for further information, ========================== a video clip of iron making process, taken by me:
================================================ many useful articles about how to do imports and exports .
How to Start an Import/Export Business
From importing exotic fashions to exporting light fixtures, the international trade business will take you all over the world and into all product niches.
International trade is one of the hot industries of the new millennium. But it's not new. Think Marco Polo. Think the great caravans of the biblical age with their cargoes of silks and spices. Think even further back to prehistoric man trading shells and salt with distant tribes. Trade exists because one group or country has a supply of some commodity or merchandise that is in demand by another. And as the world becomes more and more technologically advanced, as we shift in subtle and not so subtle ways toward one-world modes of thought, international trade becomes more and more rewarding, both in terms of profit and personal satisfaction.
Importing is not just for those lone footloose adventurer types who survive by their wits and the skin of their teeth. It's big business these days--to the tune of an annual $1.2 trillion in goods, according to the U.S. Department of Commerce. Exporting is just as big. In one year alone, American companies exported $772 billion in merchandise to more than 150 foreign countries. Everything from beverages to commodes--and a staggering list of other products you might never imagine as global merchandise--are fair game for the savvy trader. And these products are bought, sold, represented and distributed somewhere in the world on a daily basis.
But the import/export field is not the sole purview of the conglomerate corporate trader, according to the U.S. Department of Commerce, the big guys make up only about 4 percent of all exporters. Which means that the other 96 percent of exporters--the lion's share are small outfits like yours wil be--when you're new, at least.
Champagne and Caviar
Why are imports such big business in the United States and around the world? There are lots of reasons, but the three main ones boil down to:
Availability: There are some things you just can't grow or make in your home country. Bananas in Alaska, for example, mahogany lumber in Maine, or Ball Park franks in France.
Cachet: A lot of things, like caviar and champagne, pack more cachet, more of an "image," if they're imported rather than home-grown. Think Scandinavian furniture, German beer, French perfume, Egyptian cotton. Even when you can make it at home, it all seems classier when it comes from distant shores.
Price: Some products are cheaper when brought in from out of the country. Korean toys, Taiwanese electronics and Mexican clothing, to rattle off a few, can often be manufactured or assembled in foreign factories for far less money than if they were made on the domestic front.
Aside from cachet items, countries typically export goods and services that they can produce inexpensively and import those that are produced more efficiently somewhere else. What makes one product less expensive for a nation to manufacture than another? Two factors: resources and technology. A country with extensive oil resources and the technology of a refinery, for example, will export oil but may need to import clothing.
Types of Import/Export Businesses
First off, let's take a look at the players. While you've got your importers and your exporters, there are many variations on the main theme:
Export management company (EMC): An EMC handles export operations for a domestic company that wants to sell its product overseas but doesn't know how (and perhaps doesn't want to know how). The EMC does it all--hiring dealers, distributors and representatives; handling advertising, marketing and promotions; overseeing marking and packaging; arranging shipping; and sometimes arranging financing. In some cases, the EMC even takes title to the goods, in essence becoming its own distributor. EMCs usually specialize by product, foreign market or both, and--unless they've taken title--are paid by commission, salary or retainer plus commission.
Export trading company (ETC): While an EMC has merchandise to sell and is using its energies to seek out buyers, an ETC attacks the other side of the trading coin. It identifies what foreign buyers want to spend their money on and then hunts down domestic sources willing to export. An ETC sometimes takes title to the goods and sometimes works on a commission basis.
Import/export merchant: This international entrepreneur is a sort of free agent. He has no specific client base, and he doesn't specialize in any one industry or line of products. Instead, he purchases goods directly from a domestic or foreign manufacturer and then packs, ships and resells the goods on his own. This means, of course, that unlike the EMC, he assumes all the risks (as well as all the profits).
Swimming the Trade Channel
Now that you're familiar with the players, you'll need to take a swim in the trade channel, the means by which the merchandise travels from manufacturer to end user. A manufacturer who uses a middleman who resells to the consumer is paddling around in a three-level channel of distribution. The middleman can be a merchant who purchases the goods and then resells them, or he can be an agent who acts as a broker but doesn't take title to the stuff.
Who your fellow swimmers are will depend on how you configure your trade channel, but they could include any of the following:
Manufacturer's representative: a salesperson who specializes in a type of product or line of complementary products; for example, home electronics: televisions, radios, CD players and sound systems. He often provides additional product assistance, such as warehousing and technical service.
Distributor or wholesale distributor: a company that buys the product you've imported and sells it to a retailer or other agent for further distribution until it gets to the end user
Representative: a savvy salesperson who pitches your product to wholesale or retail buyers, then passes the sale on to you; differs from a manufacturer's representative in that he doesn't necessarily specialize in a particular product or group of products
Retailer: the tail end of the trade channel where the merchandise smacks into the consumer; as yet another variation on a theme, if the end user is not Joan Q. Public but an original equipment manufacturer (OEM), then you don't need to worry about the retailer because the OEM becomes your end of the line. (Think Dell Computer purchasing a software program to pass along to its personal computer buyer as part of the goodie package.)
The Right Stuff
Not everybody is cut out to be an international trader. This is not, for example, a career for the sales-phobic. If you're one of those people who would rather work on a chain gang than sell Girl Scout cookies, or if you blanch at the thought of making a sales pitch, then you don't want to be in import/export. This is also not a career for the organizationally challenged. If you're one of those let-the-devil-handle-the-details types whose idea of follow-up is waiting to see what happens next, you should think twice about international trading.
If, on the other hand, you're an enthusiastic salesperson, a dynamo at tracking things like invoices and shipping receipts, and your idea of heaven is seeing where new ideas and new products will take you, and if, to top it off, you love the excitement of dealing with people from different cultures, then this is the career for you.
It also helps if you already have a background in import/export. Most of the traders we talked with were well-versed in the industry before launching their own businesses. Peter P., who founded a Russian trading company, segued directly from his college major in international business to an operations position with an international frozen-meat trading company in Atlanta, which landed him in the right place at the right time.
"I speak both Russian and Ukrainian fluently," Peter says. "I'm of Ukrainian descent. I took Russian as a minor in college, initially as an easy grade. Little did I know when I graduated back in '89 that Russia would open up to the West shortly thereafter."
The Trade Hit Parade
According to the U.S. Census Bureau, the top 10 countries with which America trades (in order of largest import and export dollars to smallest) are:
Republic of Korea (South Korea)
You needn't, of course, confine yourself to trade deals with importers and exporters in these countries--there are scads of other intriguing possibilities available, including the member countries of the Caribbean Basin and Andean pacts and the new kids on the Eastern Bloc, the former Soviet Union countries. But as a newbie on the international scene, you should familiarize yourself with our biggest trading partners and see what they have to offer. Then take your best shot, with them or with another country.
Starting an import business is a goal of more than thousands of merchants and businessman. Like an export business, import business is also very profitable business, if an importer proceeds with the right strategies. However, the long term success and profitability of an import business greatly depends on the importer’s knowledge and understanding about the international market and foreign market analysis.
Today, importing goods from abroad has becomes a big business. Everything from beverages to cars--and a staggering list of other products that one might have never imagined has now become the part of the global import. Millions of products are bought, sold, represented and distributed somewhere in the world on a daily basis.
There are number of supporting reasons why import business and services is growing at such a fast rate:-
Availability: An individual or business man or an importer needs to import because there are certain things that he can’t grow or manufacture in his home country. For example Bananas in Alaska, Mahogany Lumber in Maine and Ball Park franks in France.
Cachet: A lot of things, like caviar and champagne, pack more cachet, more of an "image," if they're imported rather than home-grown. Think Scandinavian furniture, German beer, French perfume, Egyptian cotton. It all seems classier when it comes from distant place.
Price: Price factor is also an important reason for import of products. Some products are cheaper when imported from foreign country. For example Korean toys, Taiwanese electronics and Mexican clothing, to rattle off a few, can often be manufactured or assembled in foreign factories for far less money than if they were made on the domestic country.
The rising middle income groups of consumers in India and their increasing levels on expenditure on various products has resulted a faster rising demand of the Indian import business. Major imports of India include cereals, edible oils, machineries, fertilizers and petroleum products. Total import from India estimated to be around US$187.9 billion. India is also a bulk importer of edible oil, sugar, pulp and paper, newsprint, crude rubber and Iron and steel.
In India, all the activities related to import are handled by the Directorate General of Foreign Trade (DGFT), a government organisation that also controls the export business in India. DGFT and all its regional offices work under the Ministry Commerce and Industries, Department of Commerce, Government of India. All the procedure and policies in matter related to the import is announced by the DGFT through its notification, appendices and forms.
Whatis a good way to build up a successful
business from nothing and have fun doing it? The import/export business may be
your answer. Not only does it require little financial investment to start, but
it offers the prestige of working with clients from all over the world.
You don't need previous experience in the field, but you should
have a good head for organizing. Fulfilling a successful import/export business
requires constant attention to little details.
Do you know some local manufacturers looking for ways to increase
their market for the goods they make? Or are you planning a trip abroad and
want to make some contacts for setting up a business?
If you have an ability to sell, and an air of diplomacy, the
import/export business might be right for you. All you need is the desire and
determination to make it work.
As you progress in the business, many factors become obvious and
easy to handle. For example, you'll need to find a person to handle shipments,
called a freight forwarder. And you'll need to create solid contacts and strong
relationships with reliable suppliers. But after a short time, you can be well
on your way to making a sizeable income - with a very low overhead.
Do you like the idea of running your own business? How would you
like a tax deductible trip to foreign places a couple of times a year? The
advantages of an import/export business are great.
The biggest advantage is the money you'll make. Once you get the
business underway, the commission for setting up sales is very profitable. And
after you establish and maintain a number of exclusive accounts, you'll find
the time you spend is highly rewarded with money.
Take a look into the import/export business. Consider the risks,
and consider the advantages. Talk to people in the business. Is it for you?
HOW IT WORKS
Of all the
manufacturers in the United States,
only a small percentage distribute goods outside of North
America. The goods that do find foreign markets are exports. On
the other hand, anything that is manufactured outside the country and brought
in for sale, is imported.
it seems obvious that all manufacturers would want a worldwide market, it is
not easy for a company that is limited in its scope and abilities. That's where
you come in.
An import/export agent is a matchmaker. Manufacturers of domestic
goods seek foreign distribution; foreign manufacturers want a United States
market. You need to find them, make a solid connection, and establish a
business relationship with these companies.
The agent's commission is generally about ten percent. Now, think
of ten percent of $500,000 or ten percent of a million. Although that may seem
like a large order, it wouldn't be, if you're talking about machinery, raw
materials, or computers.
The market is unlimited and there are hundreds of manufacturers
looking for foreign distribution. Sporting goods, clocks, electronic games,
radios, housewares, garments, tools - anything can be readily imported or
exported if there is a consumer demand and if you can get the products.
The United States Government encourages exports. Indeed, it is
those sales that keep our balance of payments with the vast amounts of goods
that are imported. And you'll find government agencies helpful in establishing
You can start your
import/export business at home with a telephone. You'll need a file system,
business cards, and a machine to answer the phone calls. Once you get going,
you'll want a cable address or a telex hook-up.
you'll need a classy letterhead. Until you establish personal contacts, it is
your letterhead that represents you. Make it look professional, possibly embossed
or two-color, or gold leafed. Have it printed on light-weight paper for airmail
correspondence, but don't have airmail envelopes printed. You'll have a lot of
domestic correspondence too.
More than office equipment, you need the determination to make it
work. It will be slow at first, and you'll need to plan your moves, make
contacts and SELL YOURSELF. But once you make a few sales and sign several
exclusive contracts worth money, you'll know your dedication was worthwhile.
The most important
step in setting up your business is finding the contacts. You may have
relatives in a foreign country; you may have frequently visited and established
business relationships in a country. Or, you might just have a feeling for what
will sell where. A person who keeps well-informed in the business world can
pick up and ride the crest of worldwide trends.
consulates located in the United States
have commercial attaches who want to establish outlets in the U.S., and
they're a good place to start. Sometimes these consulates can help you find
indices of their own import/ export enterprises.
States embassies abroad are another place to
find contacts for commercial distribution. They can help you find out about a
company's solvency and reputation.
Another way to establish contacts is through the Chambers of
Commerce of every city you are aiming for.
Start small - don't tackle the world. Where do you want to sell
the American goods you might have in mind? Which countries have the merchandise
you want to import? Find out about the countries, what they have to offer, and
what is generally in demand.
Then prepare a massive mail campaign.
The easiest way to mail hundreds of letters is to use a typing
service that has the equipment to produce the same letter with a different
address each time. It's worth the money it will cost - you'd go crazy typing so
many identical letters.
To every possible contact, write a letter introducing your
company, requesting the names and addresses of appropriate firms to contact.
Ask to have the notice published in the monthly bulletin or posted in an
From the names you get back, write another letter, again
introducing yourself, and asking information about their company. You can use a
questionnaire, which fill out and invites a response.
What goods do they want to import? What products are now imported
and how are they distributed? Does the company have a certain territory, does
it have sales representatives, branches in other cities? What are the basic
details of operation - history, assets and liabilities, plans for growth.
Request any information you need, to find out what they will buy
and what they have to sell. If the company is a manufacturer, ask for samples
or a catalog, the facts and figures of current foreign distribution, and the
product demand in their own country.
Keep informed. Read
everything you can find about world trade. Look at trade publications,
international newspapers, news magazines, and financial reports. Who is selling
what to whom? Although the market for American-made airplanes is sewn up, there
are thousands of medium to small sized manufacturers in every state of the
get goods to sell, but you have to be sure to study where they are in demand
and can get the price to make exportation viable. Your questionnaires will tell
you what further and read the journals published by that country - and many are
available in English. Do these publications confirm the desire for certain
The American market for imported products fluctuates with the
value of the dollar in comparison to the value of each other country's
currency. And, importation prices reflect that directly. Can American consumers
afford to pay the price of certain imported goods? Or will they?
Finding the right market is as important as the actual particulars
of making deals and selling goods. What do you think will sell? If you do some
careful studies and think about the trends, you'll be able to come up with
hundreds of products to import and export.
The import/export business is actually smaller than you might
think. There are only a few of these businesses - that's why there's plenty of
room for more.
Establish a good
business relationship with a local bank that handles international business.
Your personal banker will follow through on the actual foreign transactions,
and will help keep your credit afloat. In fact, that is one of the best factors
about an import/ export business. Aside from office supplies and
correspondence, or possible business trips, you need no personal cash outlay.
All you need is good credit and a good reputation.
banker is your credit manager and will give you valuable advice and references
when you deal with both American and foreign manufacturers and distributors.
The United States Government agencies are great places to find
help. These agencies promote the import/export business, and publish many small
booklets and pamphlets. They also distribute continually updated reports on
foreign markets, commerce and financing.
Read these sources of information and find out the particulars of
exports, global surveys and ocean freight guidelines. Become familiar with the
market share reports, current laws and regulations, and government promotional
As you continue
your correspondence with foreign companies, build up a good rapport with their
representatives. Pin down a few companies - perhaps in the same country or
similar territory - to their exact needs. What are the two or three products
most in demand?
their methods of distribution. You may be able to work directly with a
wholesaler of an overseas importing company. Your commission will be lower, but
you won't need to handle as many particulars, and they will take care of
Or, you may need to supply catalogs and samples, working with a
network of small companies, or sales representatives from a larger
The highest fees that you can collect are for raw materials taken
from the source and delivered directly to a manufacturer. But you must be
certain of a guaranteed quantity and the continued ability to deliver.
If you are importing goods, you'll need to find U.S.
distributors that can handle the quantity of goods at a high enough price for
you to profit by. A single retail outlet or two is not enough to make your time
worthwhile. Look into how buyers work and make contacts in the larger retail
chains if you have retail merchandise.
There are hundreds
of American manufacturers with limited distribution looking for an overseas
market. Exporting their goods is the place to start your business.
many selling qualities for convincing the manufacturers to engage you as the
sole export agent. You have foreign contacts and know the demand for specific goods.
You will handle the sale, the paperwork, the money, all shipping, customs, and
The manufacturers in return provide quotations, and you put your
fees on top of that - you cost them nothing.
The manufacturers have everything to gain - an increase in sales,
a broader market, and more profit. And you have everything to gain -
establishing your business, an a commission on the cost of the goods. That is
the basis of a firm business connection and a mutually profitable arrangement.
Contact local manufacturers first and then move into larger
territories. You can make these contacts by phone, in person, or by personal
introduction from contacts you may already have. Or, you can advertise in
business publications and newspapers.
Before you do get into a legal agreement, be sure to check the
reputation of the company. How long has it been in business? Where are the
products distributed domestically? What is the solvency and reliability of the
company and its goods? When you make your sale, you'll want to be able to
Once you have agreed to represent the manufacturer as the export
agent, you need to have a written and signed contract to bind this agreement.
Your attorney should be the one to draw up this contract - later you can just
use the same one, substituting names of other manufacturers.
Basically, the contract is between the manufacturer and you as the
export representative. You are granted exclusive rights to distribute goods to
all countries except those they already distribute in.
The manufacturer will pay you the specific commission quoted to
the distributors on top of the price of goods. The company will also provide
catalogs and samples for your use in distribution.
You, the export representative, in turn will promise to do
everything possible to make contacts and distribute the manufacturer's goods in
The terms of the contract should then be stated: how many years
the contract will be signed for, the terms of cancellation by either party
voluntarily or because of no sales action over a certain period of time.
You've made your
contacts with foreign distributors who will buy the merchandise. You have a
signed contract with an American manufacturer that will deliver the goods.
Perhaps one of the distributors now asks for a firm quotation on the price of a
certain amount of goods.
to the manufacturer and get a price quotation on the quantity of goods. It
should be valid for a certain stated period. The manufacturer may agree to
deliver the goods to the ship, handling the freight to that point, or you may
need to make arrangements from the factory.
You add on the commission you want to the price of the goods. Then
you add on all the extra costs of getting the merchandise from the factory to
the warehouse of the distributor.
If you've made an agreement with a foreign import/ export company,
their representatives may take over the shipping, paying you the price of the
goods and your commission. That's the easiest, but your commission will have to
be reasonably lower.
If your sale is to a company that will distribute the goods
wholesale or retail from its premises, you have to arrange all the
You will become
more familiar with the terms of shipping used in quoting prices and delivering
goods as you gain experience. Your responsibilities vary with the terms of the
agreements and orders. Check with your freight forwarder to be clear about your
of lading is a receipt for goods shipped. It is signed by the agent of a ship
or common carrier and assures the buyer that the goods were unloaded in the
same condition as they were accepted. These are the documents you'll need to produce
for your banker to release the letter of credit.
FOB means free on board. The seller delivers the goods to a
certain destination with no additional charges. The seller insures and takes
the responsibility until that point. The buyer takes the responsibility and
pays the charges after that. For example, FOB New York
means the seller's price quotation includes full responsibility and shipping to
FAS means free alongside. The seller delivers the goods to the
ship that will carry the merchandise. The buyer pays to load onto the ship and
takes responsibility from there. FAS New
York, for example, means that the seller will deliver
and store the goods until they are ready for loading onto the ship.
C & F means cost and freight. The seller pays the freight
charges. The buyer insures the merchandise and takes full responsibility after
CIF means cost, insurance and freight. The seller is responsible
for the value and condition of the goods, and pays both insurance and freight
charges to a certain point. The buyer is responsible from there.
forwarderis a person who takes care of the important steps
of shipping the merchandise. This person quotes shipping rates, provides
routing information, and books cargo space.
forwarders prepare documentation, contract shipping insurance, route cargo with
the lowest customs charges, and arrange storage. They are valuable to you as an
import/export agent, and they are important in handling the steps from factory
to final destination.
They can be found by looking in the yellow pages or by personal
referrals. Find someone who can do a good job for you. You'll need someone who
you can work with, since this may become a long-term business relationship
You'll need the help of a freight forwarder when you make up the
total price quotation to the distributor. Not only do you include the
manufacturer's price and your commission - usually added together, but you need
to include dock and cartage fees, the forwarder's fees, ocean freight costs,
marine insurance, duty charges, and any consular invoice fees, packing charges,
or other hidden costs.
Be especially careful when you prepare this quotation. It
certainly isn't professional to come back to the distributor with a higher
quote including fees you forgot. You might go over the price quotation with
your freight forwarder to be sure nothing is overlooked.
Usually the quotation is itemized into three main categories of
cost of goods, which includes your commission; freight charges from destination
to destination; and insurance fees.
Give a date the quotation is valid to, which should be the same as
the date given on your quotes. You may also include information about the
products, including any new sales literature.
A formal letter that accompanies the price quotation should push
for the sale. You can inform the distributor of the shipping date as soon as
the order is received and confirmed by a letter of credit. Send the letter and
price quotation by registered mail to be certain of its delivery.
A letter of credit
eliminates financial risks for you, the manufacturer, and the distributor. When
your distributor confirms the order, a letter of credit is drawn from that
company's bank to a branch in the United States or to your bank.
letter of credit confirms that funds are available from the distributor to
cover the same costs you quoted. An irrevocable letter of credit assures you
the order will not be cancelled at any time. When that letter of credit is
likewise confirmed by your bank to deliver the goods, the distributor is
assured of delivery. Once the letter of credit is confirmed by the bank, the
currency exchange is also confirmed, so you don't have to worry about the
fluctuation in currency.
Basically, the bank holds the money until all shipping documents
are presented. The letter of credit states the terms and conditions to make it
legal and negotiable into money, usually holding for proof of shipment of the
goods. Your freight forwarder helps you attain all those documents. When you
hand them to the banker, the letter of credit is turned into liquid assets for
you to then pay the manufacturer and all other invoices from the transaction.
Never work on promises. Not only do you take a gigantic risk, but
you create bad risks for everyone you are involved with. A letter of credit is
the only sure way to transfer these payments.
There are many
combinations of people and methods that you can use to deliver the goods that
were ordered. When you produced a price quotation for the goods, you had to go
through all the steps the merchandise will follow. Now, before you proceed,
have a confirmed order signed by the authorized representatives of the
distributing company? Has your banker approved the letter of credit from the
Compare the amount of the letter of credit to the amount quoted
for the goods. Be sure they match exactly. Or, if the distributor chose a
certain quantity of several offers, check the prices again and confirm the
Confirm the quotation and sale with the manufacturer, and do the
same with the freight forwarder and any marine insurance agents you are working
with. Then follow through.
In order to assure the quality of merchandise, some manufacturers
prefer to handle freight to the loading docks, which makes it easier for you.
If you handle overland shipping, follow through to be sure the merchandise is
picked up and arrives safely at its destination.
Be informed of the date the goods are loaded onto the ship. The
factory should have them freighted in time to avoid costly dock storage
Since all conditions of the sale must be met to comply with the
terms of the letter of credit, you need all the signed documents. Have your
freight forwarder or other contacts get authorized bills of lading for the
merchandise each step of the way - from destination to destination.
Once you have all the signed documents, present them to your
banker. If all the terms are met, the funds will be released. Since your
commission is part of the quoted price of the merchandise, you'll usually
collect your fees from the manufacturer.
When it is totally complete, you collect your money - and make a
sizeable profit for simply making connections. Consider the commissions when
you have dozens of orders coming and going.
Take a look at the
household items and equipment you have in your home. Made in West Germany; made in Japan;
made in Korea.
You may have clothing from India,
shoes from Brazil, a leather
wallet from Italy.
Your car may be an import; your stereo equipment may be manufactured elsewhere.
There are hundreds and hundreds of items manufactured all over the world, now
being used by the American consumer.
market is huge. And there are many American firms looking for foreign-made
merchandise to distribute. Some items are less expensive; some are better made;
some are imported because they are made in a country now fashionable with the
What can you tap into? Maybe you have contacts in the United States,
distributors looking for certain goods. And you've already made contacts in the
foreign countries that produce these goods. Follow through and get yourself an
exclusive distribution agreement with those manufacturers.
Importing requires the same diligence and follow-up as exporting
does. You'll need a signed contract with the manufacturer to be the sole agent
distributing to North America - or the world,
You'll also need to obtain firm price quotes from the manufacturer
in the quantities your distributor requests. These quotes should be converted
into the appropriate dollar figures representing the currency exchange.
Investigate the reputation of the manufacturer and the reliability
of the goods. If you import something like electronic components, check into
the other distribution market the manufacturer has to assure the quality of
Your commission will come through from the foreign manufacturer.
Have your bank investigate the solvency of that company and the reputation of
living up to agreements. Since it's on foreign territory you'd have more
trouble in any legal suits, even in light of the many international laws.
Prepare the price quotation. It is easiest if you request terms of
delivery to the port of that country. Your freight forwarder can help you move
the merchandise from that port, overseas, and through domestic customs.
Follow through with all the details of shipment. Be sure to
include any insurance, dock fees, storage rates, and shipping overland.
Overlook nothing so your price quotation to the American distributor is
Itemize the quotation and give it to the American distributor.
Upon receipt of an authorized order, double check prices and follow through on
The letter of credit will go from the American distributor to the
bank of the manufacturer. All terms and agreements regarding prices, freight
and insurance will be defined. The manufacturer's representative will confirm
receipt of the letter of credit, which will release the goods for shipment.
Have your freight forwarder follow up on the shipment of goods.
They may have to be freighted from the factory to the docks. Arrangements for
shipping need to be carried out. Customs duties and unloading need to be
followed through from the American port. Then, the goods may need to be
freighted overland to the final destination.
As soon as the goods have arrived at the proper assigned
destination, papers have to be documented and presented to the bank that holds
the letter of credit. Then, all carriers and agents need to be paid, and you
collect your commission.
After you have
completed a few sales transactions to establish yourself, you'll need to
promote your import/ export business to get more clients. The first
transactions give you the experience to learn the ropes of the business, and to
establish contacts and agents both here and abroad.
organizations of commerce and foreign trade associations to develop more
contacts and extend your territory. Talk to everybody you contact about
importing and exporting, learning from their mistakes and successes.
Advertise in the print media for distributors and for goods.
Manufacturers don't know how to make the contacts for foreign distribution.
Show them your credentials and pick them up on exclusive contracts. With a
little experience, you can market almost anything anywhere.
The profit of the
import/export business is in the quantity of the goods traded. The higher the
cost of the merchandise, the higher the profit from your percentage. Since you
need to go through all the steps for each transaction, having more sales on a
continual basis simply adds to profit.
constant mailings to your original list of contacts and follow-up leads. You
might develop a sales approach. As you develop more clients, you can convince
the bigger companies of your reputation.
Contact as many manufacturers and distributors as you can on both
sides of the ocean. And solidify these contacts. You may be able to work out an
arrangement with someone to work in a certain country for a commission. Or, you
might want to take a business trip there to personally meet with the various
Get in-depth information on the products now selling. Why are
certain products successful? Maybe you can get into the same market with a more
competitive product. Investigate ways to sell more. Do the products need to be
better made? Do they sell better at a reduced price? Know what sells and where
to get it.
business is a high profit enterprise. Because of the low overhead, most of the
money you make on commission is yours. But building a truly profitable business
requires dedication and a good knowledge of the business.
numerous contacts who know you, respect you, and can recommend your work. You
need to have good agents both here and abroad to help you follow through on the
delivery of the goods. You need a good working relationship with your own bank
and possibly the others that letters of credit come into as branch transfers
from foreign offices.
Don't be hasty for orders. Investigate the manufacturers and
distributors to be sure the products and sales methods are reputable. Check out
the particulars of shipping and manufacturing from the foreign country. Each
culture works in a specific manner. Get to know how to work with those people.
The import/export business is not for everyone. But it is a
personal operation that you can run yourself - you don't have to answer to
anybody. The rewards of negotiating in a foreign country are excitement, a
touch of the exotic, and the great profit potentials. When you make the proper
contacts and follow through completely with reputable manufacturers, reliable
shipping companies, and responsible distributors, you have it made.
If you are ready to put in the time, sell yourself. Start making
inquiries and contacts. Try it on for size. Does it feel good? Then MAKE IT
If you need specialized LEGAL advice or assistance on this
subject, the services of a professional person is recommended.