How to Import

International commerce is an essential part of the Washington State economy with one in every three jobs directly supported by trade. As the fourth largest exporting State, behind California, Texas, and New York, Washington is perhaps the most trade-oriented state in the US. Imports are also important for the US economy and specifically, Washington.  In the year 2009 the United States imported $1945.7 billion worth of products, with $37 billion imported to the state of Washington.

The top imports for the US and Washington for 2009 are listed below:

Contrary to popular belief, large companies are not the only businesses able to enter and profit from these markets. Most US Exporters/Importers are small and medium sized companies. If you are a small business or interested in starting a business, the SBA (Small Business Administration) is a most promising reference.

One should be sure to conduct extensive research and be well aware of all of the issues involved before entering a business venture. Below is an outline of a basic Import Plan to serve as a guide. Thanks to the folks at TradePort Trade Tutorials for a significant portion of this guide.  They are an excellent source for Import/Export information.

Step 1 – Business Plan

It is important to consider what you and your company hopes to gain from importing.

• Is the product(s) you need to conduct your business available domestically?
• Have you discovered a lucrative and untapped domestic market for an imported product?
• Does importing a product increase your competitiveness as a business?

The next step is to develop a business plan. In this plan, you need to identify the domestic market for the good you are planning to import, evaluate government regulations and pay attention to the nature of the product to determine the proper Harmonized Tariff Schedule (HS) product classification. The HS compiled by the US Government will better enable you to understand applied tariffs assessed to your merchandise.  Most tariffs applied to merchandise are ad valoreom, which equates to a certain percentage of duty on the invoiced cost of your imported product.

You need to determine if the government of the imported product has any imposed quota restrictions to protect various domestic industries, or there might be restrictions because the product may be harmful to human, animal or plant health.

Step 2 – Logistics

In this step, you need to decide if you be in charge of arranging for importation of your goods and be physically present with necessary documentation when your merchandise arrives  or if will you make these arrangements via a third party logistics manager such as a customs broker or freight forwarder.

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.

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

Once you have decided how your goods will be imported make sure that they are 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.  Mismarked items can hold up the import process at Customs which could delay your shipment for days. Contact your chosen shipping authority for packaging requirements.

Step 3 – Foreign Sourcing

Next, you need to determine the country you want your imports to come from. Determining the source of your imported goods can vary due to product differentiation.

Be wary of those exporters who do not have any tangible evidence that they have a record of success.

Before Importing:

• Ask for banking references
• Obtain business references
• Evaluate company’s web site and company infrastructure

Step 4 – Security

US Customs Department has developed strict guidelines for importing products into the US.  The US Customs and Border Protection (CBP) are now under the US Department of Homeland Security (www.dhs.gov).  Increased domestic security has created new regulations for importing into the US. One of the new regulations is the 24 hour rule of the Automated Manifest System or AMS.  This 24 Hour AMS rule requires presentation of the cargo declaration 24 hours before lading of the vessel.  You must insist that foreign exporters adhere to US Department of Homeland Security regulations or you can find yourself with delays and troubles.

The Customs and Border Patrol (CBP) is now implementing the C-TPAT or Customs Trade Partnership Against Terrorism.  This partnership is between customs and industry leaders regarding strengthening supply chain security. Understanding US Customs regulations before you make importing arrangements will help map out the most expedient method for importing and distributing your merchandise once it arrives.

*Sourced from WTC Tacoma expertise and, in part, TradePort’s Trade Tutorials 

Useful Links for Importers

Foreign TradeOnline
B2B Portal with lots of resources for importing and exporting

World Trade 100
Examines logistics and global supply chain management through a variety of lenses both in print and online.

World Trade Reference Guide
Published by World Trade Press, it is a central repository for trade books and e-content to facilitate international trade.

USA Trade Online
Published by the Foreign Trade Division of the U.S. Census Bureau it provides access to current and cumulative U.S. export and import data for over 18,000 export commodities and 24,000 import commodities.

US Customs Service
Features importing and exporting rules and regulations, traveler information, contracts and procurement, and an online service for reporting smuggling and customs threats.

US Trade and Development Agency
US TDA’s mission is to primarily help companies export US goods and services and in the process create jobs in the U.S. Whle primarily export oriented, the US TDA site has a lot of useful information about trade in general.

TradePort
Excellent exporting advice and a list of requirements for shipment.