mommyincharge asked:
I want to buy some products for my business from china, I do not know what the laws and regulations are for importing goods from overseas, or what I need, Do i need any licenses? Can I just go to the port and pick up my goods? How trustworthy are the companies over there? how do I pay form them?
NO – you need to check with a local government agency. import/export laws are SERIOUS and the fines could financially ruin you for LIFE. These laws are also long and tedious. You may need to find a business lawyer to help you interpret them and make sure you are doing the right thing. Everything imported and exported needs to be labelled, appropriately taxed and appropriatly tracked. This is NOT SOMETHING TO FOOL WITH. Please do some research before you end up in jail!!
Comment by KB — February 29, 2008 @ 2:07 pm
If you want to import / export products you will need to do a lot of research first. It is not always cheaper to import from China as everyone in the world seems to think. It depends on the product you want to import, and the regulations with Customs Border Protection.
The best bet would be to find a broker to help you import your goods. If you are talking small items, then DHL, UPS or FEDEX are good places to start. You will have to sign a power of attorney with them to have them broker your goods in. You will also have to have a business number so that the goods can be cleared at the border or port under your company name.
In addition to doing all of that, you will have to monitor your import entries (called a 7501 or entry summary statement). You will have to check for errors and make sure your goods are being properly classified and properly valued so that you don’t go to jail or get fines for not paying enough duties and taxes on your shipment. A good broker would be able to help you out with this, but they will usually charge $90-$125 per import entry. The couriers are generally cheaper ($25-$50) but it is all dependant on what kind of volume you can give them.
If you are planning on importing food, alcohol, tobacco, firearms, wildlife (including animals and plants) you will need special licenses and in that case, it is generally not even worth it unless you are a huge corporation because the licensing process is very costly.
Be sure to check out the companies you are working with. Be leary of cash in advance shipments. The best bet is to finance on a letter of credit, but this often costs about $100-$500 dollars depending on the value of the shipment and the clauses it includes.
Some good websites to check out are: (US Customs website) (for trade leads and export information) (the import export bank of the U.S.) (for finding suppliers and vendors)
This is not something you jump into lightly. There is a lot of research and a lot of regulations and laws and the penalties can be huge. Companies have been fined millions of dollars because they failed to obey the laws. In import export, customs does not take it easy on you because you are unaware of the regulations – stupidity is not a free pass if you mess up. Best of luck.
Comment by Susie — March 1, 2008 @ 10:45 am