How to go global
An Indian textile business checks with Ask FSB’s experts for advice on international expansion.
Abhiram, New York City
I have a handloom and textile business in India and I would like to start an import/export business in New York City this year. Can you suggest a good book on how to get started and be profitable? I want to start with the least burden. I want insight into the problems, and also I’d like to read real-time scenarios.
By Lenora Chu, Fortune Small Business contributor
Dear Abhiram: Importing goods to the United States can be a daunting task unless you do your homework, say the experts.
The first step you should take? Classify your product according to its unique code on the Harmonized Tariff schedule, says George Mylonakis of the Boston-based international trade consulting firm Go Global Logistics.
This classification will dictate what import requirements, duties, free-trade agreements or quota restrictions your product will be subject to.
Next, consult a customs broker who can classify your goods and file the necessary paperwork for import clearance. Without proper classification, your goods can get stuck in customs and rack up daily storage charges, says Mylonakis.
John Heimsath, president of Houston-based customs consulting firm ACM Logistics, recommends checking in with someone who’s importing similar goods.
Getting this kind of information firsthand will hint at what kind of shipping and customs clearance charges you might incur, for example.
Then copy what they’ve done, Heimsath says: “Plagiarism is truly the best form of flattery.”
There’s a lot to learn about running an import/export business. Mylonakis recommends reading How Small Business Trades Worldwide: Your Guide to Starting or Expanding a Small Business International Trade Company Now by John Wiley Spiers. Heimsath recommends consulting Incoterms for Americans by Frank Reynolds. This booklet demystifies the standard trade definitions used in international trade contracts, and will help you better communicate with the parties in your supply chain.
Give us your advice: Check out recent “Ask & Answer” questions.
Related links:
How to write off defective imports
So you want to expand globally …
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DiggI am doing an international trade thing in Korea. Here are my suggestions for American exporters.
1. America is one of biggest market but there are many countries in the world. In addition, their culture and way of business is different.
Most Americans are not interested in other countries. Before you start your global biz, please learn foreign language and culture. You also need to learn about the country that you want to trade.
2. I think that best way to go to global is improve your product’s quality and price competitive. That will give you best comparatively in global market and you will automatically recognized by buyers from other countries. If you have a superior products, then paper work is not a big deal. However, most exporters do not have superior goods that buyers want to buy.
3. In Korea, you don’t need to concern taraff for if you manage an internet thing. For example, custom do not charge for downloading paid internet software from foreign website. So internet guy’s worrying about tarrff was incorrect. That’s the reason how I am reading CNN in Korea.
For example, America’s cow meat does not make satisfy Korean customers. So there are many strikes in Korea.
My main point: If you have a superior product, then I will just import it by EXW New York to Korea which is similar to Amercain Foreign Trade Def’s FOB(named inland carrier at named point of exportation).
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