Introduction

Would you like to be a modern-day “treasure hunter”? Did you know that your vacations could be a source of income? Are you always looking for an excuse to travel, a reason to head out on that next adventure?

Imagine going to Thailand for two weeks and spending the mornings wandering through the markets, visiting craft villages, hunting for items folks at home would like. Then in the afternoons, you lie on the beach, take a tour, hit the spa, enjoy a couple drinks as you watch the sun go down.

Your extra suitcase or two full of “souvenirs” would come home with you…and more than pay for your trip. You see, the trinkets, jewelry, silk, and such that go for pennies on the dollar in Thailand can be sold for many times that much back home.

But your trip needn’t be to Thailand. It could be anywhere in the world…Mexico, Argentina, Cambodia, India, Costa Rica, Tibet, Chile, Nicaragua, Bali, Kenya, Greece…anywhere you’d care to travel or spend a few months a year, even live full-time.

That is what life as an import-exporter could provide you…A life full of adventure and fun, full of travel and excitement. You could indulge your own sense of adventure and travel whenever the urge strikes. And you could easily start this as a part-time endeavor from right there at home and have a flexible, portable income.

In this special Import-Export Blueprint: How to Fund a Travel-Rich Life Anywhere in the World, we’re going to share with you the tips, tricks, secrets, and all the information you’ll need to start up your very own Import-Export business.

We’ve enlisted the help of two accomplished import-exporters to explain just how easy it can be to start in the world of Import-Export. You’ll learn:

• The four things to consider when you’re choosing your products so you can make sure you pick items that will sell well…

• The number one thing to remember when you’re shopping in a market (because if you don’t, you’ll be left holding stuff you’re not happy with)…

• How to photograph your goods for maximum benefit…and a higher price…

• What countries to look for products in…our favorite places around the globe and some products that could help you start your business…

• And much, much more…

In this easy to navigate Import-Export Blueprint website, you’ll find videos and reports that will help put you on the road to a flexible income that can go with you anywhere you want to be…that allows you to travel and explore…that essentially pays you to do something you’d do anyway, for free.

To get your Import-Export adventure started, just click on the navigation bar to the right, and soon you could be traveling the world in search of your very own treasure.

Happy treasure hunting.

Sincerely,

Jackie Flynn
Publisher, International Living

Welcome to the World of Import-Export

What is Import-Export?

When it comes down to it, treasure hunting is what Import-Export is all about. Buying your treasures low, selling them high. It can be a fun way to fund your vacations…a part-time kitchen table enterprise…or a full-time business. (Go into it full-time and you can make all your travels tax-deductible.)

The Import-Export business isn’t just an escape from the 9-to-5 routine—it’s a well-proven way to start a new and very rewarding life. Just imagine having the kind of dream job that pays you to explore Thailand or Mexico…Ecuador or Morocco.

It can provide you with a decent living—or an extremely handsome living. Some people operate their businesses from the U.S., others from overseas.

Import-Export is easily defined. When you think about it, the concept is laughably simple. You search for the kind of goods people want and then sell them at a profit. Basically, your job description is to locate these goods, find the buyers who want them, then arrange to get goods and buyers together. If you can keep your expenses low and your sales high, then you’ll be in the money. It’s not a whole lot more complicated than that.

If your base is the United States and you bring in leather goods from Ecuador, you’re an importer. If your base is Ecuador and you ship the leather from there to the U.S., you’re an exporter. You’re also an exporter if you’re sending U.S. goods from the States to Ecuador—or anywhere else in the world.

Eye-catching things and curiosities will always sell. However, not everybody has the time or the money to travel to far-flung corners of the world and shop for treasures. If something appeals to you, chances are that it will also appeal to many shoppers back home.

Consider it for a moment. What kind of things do you buy when you travel? (And we all buy something!) Looking around our own homes, we can see we’re doing a great job at helping out global trade.

Chunky silver jewelry, a display case of semi-precious stones, and a wrought-ironwork sun from Mexico…a black leather jacket and a witch puppet with flashing eyes and a horrible cackle from Poland…lavender soap and a replica gargoyle from France…Bohemia crystal goblets and a crystal globe from the Czech Republic…a voodoo doll from New Orleans…amber beads from Latvia…cushions from Belgium…a stone Sheila Na Gig figurine from Northern Ireland…a wooden bottle-stopper with a dangly green frog from Italy…brightly colored table mats from Martinique in the Caribbean.

Now think about the stores back home that you’ve seen stocked with unusual merchandise from around the world. Pottery from Nicaragua…marquetry chess sets, soft kid-leather handbags, and carved cedar-wood screens from Morocco…Panamanian hammocks…curious Indian god statues with eight arms and elephants’ heads.

All these unique goods come from somewhere overseas—and someone is supplying them. Why shouldn’t that someone be you?

Global trade has been described as the hot new enterprise of the 21st century. In reality, it’s not a new industry at all. Not when you think about the ancient caravans of the desert and camels bearing cargoes of salt, silk, and exotic spices. The Phoenicians exported their precious purple dye all across the Roman Empire. And then there was Captain Bligh and his South Seas breadfruits…Sir Walter Raleigh and tobacco. When it comes to trade, the world actually went global a long, long time ago.

Many people who have started up an Import-Export business are involved with merchandise that is perhaps best described as “ethnographica.” Fascinating though these items are, curiosity merchandise isn’t your only option. You could concentrate on importing winter roses from Ecuador, medical scrub suits from Mexico, or even terry-towel bedroom slippers from Hong Kong.

Just about anything, in fact, that you can think of.

The benefits of owning an Import-Export business

The benefits of owning an Import-Export business are substantial:

1. A recession-proof business
Import-Export is about as close to a recession-proof business as you can get. Despite conflicts, depressions, or the toppling of governments, shoppers will always shop. And remember, Import-Export is global. Circumstances like the falling dollar and soaring euro don’t necessarily have to impact on your business. Maybe those leather handbags from Italy are now looking way overpriced in dollar terms. Well, if one part of the world isn’t likely to result in profitable trade, you simply go find another country or a region that is. It’s a big wide world out there…and one heck of a lot of countries make leather handbags. And a number of these countries have currencies that are pegged to the dollar.

World markets—and currencies—are in a constant state of flux. Conditions change from year to year. A country from which it made sense to import goods one day might offer better export prospects the next. Maybe leather goods from Italy don’t make sense right now. But U.S.-made goods are currently cheap for Europeans. What homemade products could you be exporting to Italy?

2. You are the boss
Instead of laboring away to make someone else rich, you’ll be in charge of your own destiny. The business is yours—and unless you have a partner, the only boss is you. And once the business is well-established, you could be on target to make more money than you ever dreamed possible. But it shouldn’t just be about money—it should be about the fun as well. All our contacts get tremendous fun and satisfaction out of what they’re doing.

An Import-Export business can give you more freedom, more wealth, and more security than your regular 9-to-5 life.

3. Minimal start-up requirements
You can start off small and become as large an enterprise as you can handle. Your office can be at home, or anyplace else you choose. If you’re importing from overseas, you can sell to store buyers, or you can sell on your own terms at outlets such as craft fairs. You could open a small store or gallery. If you wish, you can run your business entirely as a web-based enterprise.

Much depends on what kind of products you intend to sell, but in many cases you do not need a license to import goods into the United States. And although most importers opt to use a Customs broker for the convenience, you do not necessarily have to hire one to clear your goods.

With a small enterprise, you don’t need to employ staff. And, you don’t even need a warehouse or storage space. It isn’t necessary to stockpile a whole ton of inventory—unless you want to.

And, you certainly don’t need a college degree or years of business experience to succeed. We know of one lady who transformed herself from a welder into a fashion batik importer.

4. A career that’s open to all
It doesn’t matter at all if you’re male or female…old or young. In Import-Export, the route to success is personality, hard work, and savvy business sense.

5. Your business can be as big or as small as you desire
The great thing about an Import-Export business is that it can be as small or as large as you want it to be. Maybe you just want to be able to fund some trips overseas during the harsh North American winter? In that case, you can just “suitcase import” (we’ll talk more about this later) and sell your products to family, friends, and some stores in your locality.

Later in this kit you’ll hear from two of our Import-Export experts. Reece Guth runs a business importing pots from Nicaragua. Reece has built up his enterprise over the last number of years and now has a successful and busy career. Our other expert, Alison Talbert, has a much smaller business, selling artisan goods from Ecuador, which she runs from home. Alison is happy to keep her business small and home-based for now, as it fits in perfectly with her family life.

Or maybe you want this to be a new, full-time career? In that case, you can start suitcase importing and eventually build up to dealing with containers, shipping agents, your own website and maybe even your own store eventually.

But whatever size you decide you want your Import-Export business to be, you’ll still have the opportunity to travel the world, meet new people, and earn some money.

6. Giving back to a community
An Import-Export business can help the community in which you buy your products. By buying products from a family-run business in Ecuador for example, you are helping to stimulate that local economy. And for most low-cost living places, which are also the places you are most likely to be buying your products for your Import-Export business, stimulating the economy is very important.

Introducing our Import-Export Experts

 

Throughout this Import-Export Blueprint you’ll hear from people that we, here at International Living, consider to be our Import-Export gurus. Reece Guth and Alison Talbert, in particular, know what they are talking about when it comes to this business.

Reece imports pottery from Nicaragua and now sells them online and in various stores throughout the U.S. Alison imports artisan goods, like scarves, jewelry, art, and clothes from Ecuador and sells them from her home and on her website.

They have both agreed to share with you their expert advice. You’ll hear how they got started, and they’ll provide some valuable advice for setting up and running your own business, no matter what you decide to import and export.

In the following videos, Reece and Alison explain how they got started in the Import-Export business.

Passionate about pots: Reece Guth’s story

Something as simple as “wanting a tan in winter” was how Reece Guth came to found Mayta Clay, a Maryland company importing ceramics from Nicaragua. This guy knows his pots—he started his working life as a potter. As he puts it “I lived, breathed, and dreamed pottery.” Throughout the 80s and early 90s, Reece sold his work at Baltimore art shows and galleries, eventually opening a pottery store. In 1992 a friend convinced him to use his experience to help the city’s youth, and he became director of an experimental art and education program.

This led to a company hiring him to photograph a project on Nicaragua’s Pacific Coast. “I wanted a tan in winter; it was a perfect situation,” says Reece. “Only I didn’t expect to fall in love with the country, its people, and its pottery! When my liaison found I had an interest in ceramics, she insisted on driving me two hours to a quiet little village, nestled in the hills between two sleeping volcanoes.”

The art of pottery goes back many thousands of years in the “New World.” Artisans demonstrate an astonishing range of creative skills, as Reece discovered in the village of San Juan de Oriente. He found potters using designs and techniques that reach way back through the centuries. They painstakingly make one delicate piece at a time, drying it in the tropical sun.

“The cobblestone streets and dirt paths lined with pastel-colored adobe houses made walking around the town feel like stepping through an unseen door into the past. Like a treasure hunter, I somehow felt that a determined look beyond the surface of this dusty pueblo would yield some hidden gems. I was not disappointed, the pottery and talent I found was truly overwhelming.”

Reece decided it would be great to work with these talented artists and took the first steps to bring their pottery back to America. However, of paramount importance to him was that the venture be sustainable and worthwhile for all concerned.

 

One trip to Ecuador changed everything:
Alison Talbert’s story

The worldwide economic downturn is what prompted Alison Talbert to set up her Import-Export business. When the economy tanked Alison says her and her husband’s income became uncertain (they owned their own business), so Alison decided that she needed to do something about it. She says she always knew that her new career path would involve travel. “After college, my first “real” job was with American Airlines,” says Alison. “From there I spent years as a corporate and leisure travel agent. It’s definitely in my blood! But how could I combine my need to travel, my love of fashion and home accessories, and my desire to make money?”

She spent the next year or so in a constant state of frustration…ready to go but with no idea where to go. “I did all kinds of oddball things…attending out-of-town business seminars (keep in mind, I had no business) and “networking”, she says. “Imagine the conversations: “So what do you do?” they would ask. “Me? Oh nothing really. I’m just looking.” I was so ready but with absolutely no direction.”

Then, with one decision, Alison’s life was changed forever. She saw an article about an Import-Export class in Ecuador and decided to go on the trip. “ Where is Ecuador ? Honestly, I didn’t know. I just found the thought of attending the class completely compelling.”

The article touted Ecuador’s artisanal products, its healthy, delicious foods, its beautiful landscape, its friendly people, and the most inviting of all…cheap massages. “Given what was going on in my life at the time”, Alison says, “it all sounded good to me. However, looking back, I realize the class represented so much more. It offered me hope that I could find meaning and create income doing something I love and am passionate about.”

And so Alison’s business, Income from Ecuador (website: http://incomefromecuador.com), was born. She now runs a successful Import-Export business selling products she finds on her trips to Ecuador to family and friends at home.

“Honestly I have to pinch myself sometimes. I regularly travel to exotic places in Ecuador, hunting down beautiful, unique finds, and I love sharing everything I learn. I’m now designing products and watching my visions come to life.”

As well as selling the products she finds in Ecuador, Alison has expanded her business and is now also teaching others to do exactly what she’s done. She says, “One of the best parts of my business is taking other people to Ecuador to experience the thrill of the hunt and the fun and excitement that come with each new discovery.”

“The response to the merchandise I offer has been amazing! People love my stuff, and I am having a total blast.”

Fair trade Import-Export   by Roger L. Gee Most of our friends and relatives think we’re crazy. We travel a lot and go places they wouldn’t dare to go. We have a lifestyle that works for us, but not necessarily for everyone. Last winter we traveled to Honduras and Guatemala. The winter before, we spent six weeks in Jamaica, mixing our profitable business with fun in the sun. With our Import-Export business, our working year ends in December and doesn’t kick into gear again until March. It all started nine years ago when my partner, Nancy, acquired a special piece of pottery at an auction. She did some research online and sourced the pottery back to the remote village of Mata Ortiz, Mexico. Then she took off in her Subaru and traveled the 3,000 miles from the States to the village. Here, she bought as much pottery as she could load in her car, and upon her return to the U.S., sold most of her newfound art to friends, relatives, and associates. They wanted more. Although she still had her day job as a psychotherapist, her new importing business was beginning to take off. This is where I entered the picture. I had recently returned home to northern Idaho after three years living my dream of sailing down the Sea of Cortez and along the mainland of Mexico. It was a perfect match. We both love Mexico and we were more than ready for second careers. Through our new business, Singing Shaman Traders (website: www.singingshamantraders.com), we’ve been able to make at least three buying trips a year. In Mexico, we buy pottery, baskets, and silver. In Jamaica, we went to the source and had baskets made for us. In Guatemala we bought scarves directly from the weavers. In Honduras we purchased sea glass jewelry, dolls, bark art, and baskets. In Vietnam and Thailand, we are having silver jewelry and silk scarves made for us, but have yet to visit. Nancy and Roger buy products like Tarahumara baskets and wood carvings from Mexico.©iStockPhoto.com/Alan Tobey The learning curve to becoming an importer is steep at first. The amount of “official” paperwork involving U.S. Customs itself is daunting. Mind you, because of the NAFTA agreement between the U.S. and Mexico, importing is duty-free. Nevertheless, we still have to hire a broker to get us and our goods through the border and back into the U.S. with a minimum of hassle. Once on the Mexican side of the fence, however, there are few rules besides the usual—visa and car permits. The fun part of the business for us is the shopping. We meet the artists and buy their handmade indigenous crafts, thereby helping them make a sustainable living at a fair, working wage. This is what we value most. Our best quality products are Mata Ortiz pottery and Mexican silver jewelry, which are also the most popular items with our customers. Our best mark-up products are the Tarahumara baskets and wood carvings (also from Mexico). Our silk scarves from Vietnam are of high quality and have a good mark-up. Fair trade, simply defined Buying fair trade takes out the middlemen usually associated with importing foreign goods, that amount instead going directly to the producers. Although we are members of the Fair Trade Federation (www.fairtradefederation.org), it’s only one of many global fair trade organizations, all of which share the same goal of working with impoverished producers in order to help them move toward economic self-sufficiency, maintain their cultural identity, and achieve self-empowerment as artists.

Getting Started in the Import-Export Business

Getting started in the Import-Export business can be as simple as bringing items home from your vacation to Mexico, Panama, Italy…anywhere in the world. We’ve been overseas and seen items that we think people at home would like…a pretty silver necklace from Mexico, a colorful bag in a market in Ecuador, hand-woven baskets from Panama. Many people who start in the Import-Export business start out small. As you’ve already heard from Reece Guth, he started by bringing four pots home from a trip to Nicaragua. He now owns a thriving business selling those same pots in the U.S. Alison Talbert did the same, bringing a few items home from Ecuador in her suitcase.

In this section of Import-Export Blueprint, we’ll talk about getting started in the Import-Export business. The first, and most important, thing you’ll need to do is decide what product or products you are going to deal with. How do you decide what is it you’ll import or export? How will you know if a product will sell?

When starting out in this business, it’s a good idea to do some suitcase importing first. What is suitcase importing? Well, quite simply, it’s where you travel to your country of choice, for example Ecuador, find the products you would like to sell back home, buy them, and put them in your suitcase and bring them home. It’s a kind of trial run…and a great excuse to organize a trip to your chosen country.

We’ll look at what you can learn from suitcase importing and give you some tips on what you’ll need for that first trip.

Choosing your product

 

Your first priority when starting in the Import-Export business will be to choose your product. With so much out there, it can be difficult to decide what you want to import/export. Of course, you don’t need to limit yourself to just one product, but it is a good idea to do some research before you make your final decision.

“No matter what the merchandise, there is one thing all retailers have in common: the search. Our businesses live and die based on our ability to find products and vendors that make us stand out from the store next door. The search leads some of us to local artisans, others to national gift shows—and a growing number of us to hop on planes and search the world.” So says Thompson Lange, seasoned global traveler and importer for his Californian furniture store, Homescapes Carmel (website: www.homescapescarmel.com ).

Whether you decide to do your Import-Export business on a small scale and just want it to pay for your vacations or want to build your own Import-Export empire, choosing the right product is one of the big keys to success in this business. Even if you already have an idea of what you want to sell, it’s still best to keep an open mind.

Doing your homework is imperative. Daydreaming about discovering a brand-new product that will somehow result in stratospheric sales either at home or abroad is all very well—but the chances of stumbling across something like the Rubik’s Cube are pretty remote.

First make sure you can, by law, easily import or export a product. Certainly in the U.S., medical supplies, foodstuffs and beverages (both alcoholic and non-alcoholic) are subject to so many restrictions that importing them is best left to the experts.

Each country has its own list of restricted products. For example, many European countries restrict the trade of certain types of foods, seeds, and plants. Thailand does not allow the export of antique Buddha images.

Next, what you should ideally aim for is a product that has little competition. For example, are American consumers already drowning under endless waves of Mexican sarapes (colorful shawls) and those multicolored ceramic suns with smiley faces? You can buy these ceramic suns in Mexico for as little as $10—and maybe sell them back home for $30 to $40. Like sarapes, ceramic suns are now pretty commonplace. Can the market take any more—or is it already far too overcrowded with these kinds of items?

That said, consumers also hanker for items that aren’t always one of a kind. Blue Abele, who opened a store on Roatan, Honduras doesn’t spurn the unusual. But she’s also making a good profit on some fairly easy-to-source finds.

For example:

• Hand-blown Margarita glasses from Mexico: purchased for $2. Sold for $9 to $12.

• Hand-blown shot glasses from Mexico: purchased for $0.50. Sold for $5.

• Hammock chairs from Guatemala: purchased for $15. Sold for $80.

• Small animal carvings of wood, stone, and tagua from Ecuador: purchased for $0.80 to $1. Sold for $10 to $12.

Remember, too, that consumers may harbor negative attitudes about certain countries and products. Maybe your idea of Sweden is of a clean, environmentally-friendly country that produces quality, reliable products. Unfortunately your target customer might just as easily perceive Sweden as being a nest of pinko socialists. “Buy products from a country intent on maintaining a welfare state? Never in a million years!’’

Is (almost) smoke-free California or New York the best market for those meerschaum pipes you’ve got your eye on? As for erotic Indian statues—well, they might not really go down a storm in the Bible Belt.

4 things to consider when finding your product overseas Think about the products in a particular place. Look in the native markets and the local stores. Be observant…you never know what you might find or what ideas you may come up with. Think about the costs and the way products are prepared in that country. You may be able to help producers manufacture their products more efficiently. Think about who is going to buy your product. In what unique place could you sell your product to ensure that you get maximum profit and who are the people who will want to buy your product. Think about where you will find those people who want to buy your product. When you do these four things, anywhere in the world that you go is a place where you can export products.

Look at your own interests and background

 

If you’re not sure of your product, perhaps the best place to begin is by looking at your own knowledge, interests, and career background.

If you have a working knowledge of the electronics industry, you might want to consider small electrical goods. You can never pass a jewelry store without buying something? How about looking at the possibility of importing cultured pearls from Southeast Asia? You’re a keen Country and Western fan? Well, many people in Ireland enjoy Country and Western music nights in pubs. So what else might they enjoy buying to make their experience a bit more authentic—clothes, hats, or boots?

And here’s another thing to consider. You don’t have to just export items from the United States. Are your profits likely to be greater if you export some of these items from, say, Mexico?

Goethite…cerusite…molybdenite…arsenopyrite. If you’re a rock hound, those names may have quickened your pulse. Rock and mineral fairs abound throughout the United States. Obviously you’ll make the most profit if you go and find these rocks and minerals for yourself. But it would be pretty difficult to scour everywhere in the world.

Ever considered importing minerals from the Czech Republic? Numerous chunks of minerals are cheaply priced through www.rockshop.cz. This company’s minerals aren’t only from the Czech and Slovak Republics—they’re from all over the world, including places you might find difficult to get to yourself. All priced under $20, thumbnail specimens include a black tourmaline crystal from Pakistan, amethyst from Kazakhstan, and a mixed quartz, wolframite, and fluorite specimen from China.

A wholesale lot of 11 pieces of Aragonite specimens from the Czech Republic (some with crystals on the back, and with a total weight of 440gm) is $50. To get dealer prices you have to register and provide your company details—also total orders must be above $150.

Rockshop provides shipping by registered airmail because “ it is a very reliable and cost affordable method. ” They go on to say: “We are often asked to offer other couriers as UPS, DHL, etc. We would be also very glad to offer such services, but rates from our locations are terribly expensive”

So although you may have to wait a few extra days for your stones to arrive, your delivery charges will be significantly cheaper.

For more information, contact RockShop, David & Eva Kalat, PO Box 152, CZ-100 00, Prague 10, Czech Republic; e-mail: info@rockshop.cz; website: www.rockshop.cz.

Importing the right product: Seven things that
can help you identify your perfect product

 

• Identify marketable items made overseas and not previously sold in the United States—or your own home country. Foreign consulates can be an excellent source of this information.

• Contact trade associations in other countries to get information about possible import products.

• Look for new and innovative items made in other countries by visiting those countries (it’s a great excuse to travel there!) or reading advertisements in their magazines.

• Join Import-Export associations, read their newsletters and, if possible, attend their meetings.

• Identify products that have been successfully imported to other countries but have not been imported to the U.S.

• Ask well-traveled friends and family about products they have come across that could be successful in the U.S. market.

• Ask potential customers whether they would consider buying the type of goods you wish to import.

Advice on choosing your product

 

The most important thing to consider when picking your product is: Who is your market? When choosing a product, you must be thinking about the people who will buy it.

The ideal product should have several qualities:

• It should be durable. If you are importing or exporting you will inevitably be shipping the product and you’ll want your product to be able to withstand the journey.

• Your product should also be portable. This is especially important if you are going to keep your Import-Export business small and just suitcase import.

• It should be “trouble-free”. By that we mean, you don’t want your product to run into difficulties with customs or when crossing borders. This can take up your time and cost money.

• The product should have a good mark-up. You should be looking at a 10 times mark up. Anything less than that, may not be worth doing if you are looking to profit from this.

“Why I chose to import my products from Ecuador”- Alison Talbert

After her first trip to Ecuador, Alison Talbert decided that this was the country she would source the products for her Import-Export business from. In this video, she explains why she chose Ecuador, the kinds of products she now brings home to sell, and where she found them.

Here are just some of the beautiful handcrafted products that Alison buys in Ecuador and sells to family and friends at home:

Artisan markets—Buy low-sell high

by Maryann Ullman

We’ve all gone on vacation and fallen in love with a place that’s hard to leave. You promise yourself you’ll come back and visit… But you really wish you never had to go back home. Well, you don’t. You can figure it out. I did…

For me the place was Buenos Aires, Argentina. I love its unique mix of European and Latin American cultures, the cafés in the sun-dappled shadow of French and Spanish colonial architecture. On any given day I can go to a French bakery and a Bolivian market in the same afternoon. In spring and summer I can sit in one of the many parks or botanical gardens, and there’s something to do at any hour of the night…live music, theater and tango (I don’t dance much, but I love to watch!).

I arrived on vacation and was seduced into staying. You see, I figured out how to hemisphere-hop for free. This way I get two summers a year plus the snowy New England Christmas I couldn’t give up. I’m not a true expat. I’m a cheater.

At first I lived off savings, and then pieced together an income from freelance writing and editing. By earning in dollars and living on Argentine pesos my dream of living off writing (and working in my pajamas) started to come true. But writing enough to pay for trips back home wasn’t easy.

So I devised a plan. I began to export fair-trade crafts from Argentina to the U.S. Suddenly every journey through the skies became a profit-yielding opportunity. I could support communities in Argentina, see my old friends and family twice a year, and find new friends and new travels. I source fair trade crafts in three ways: buying from established non-profits, approaching artisans at local street fairs, and heading out to small towns and simply asking around for artisans and cooperatives.

When I want a break from Buenos Aires, I head out to the mountains, hiking to isolated Kolla villages in the northern province of Jujuy. Over a lantern-lit meal of hearty vegetable stew, spicy empanadas, freshly baked bread and goat’s cheese, I arrange an order with an elderly couple for llama wool hats, scarves and shawls to be shipped by burro and bus to Buenos Aires.

Venturing out to find artisans in rural communities is fun, and I’m bringing the market to people who have less access to it. I try to choose unique crafts and carve out my own non-competitive niche. The most popular products are quirky hand-painted wooden animal masks made by the Chané tribe in northern Argentina—each jaguar, marmot, and parrot face has an original character and style.

I assess what’s practical to carry in my luggage. Jewelry and textiles are the easiest to transport, while beautiful palo verde wood platters are heavier and occupy more space, but are still worth it.

It’s all trial and error—you have to work out the kinks and make the best of things. I fell in love with a style of rustic black pottery from the Diaguita tribe in Tucumán. But not only was I charged an overweight fee for my bag, there were also heavy casualties. Making the most of it, I used the pottery shards and some sand for a creative display around my wares and shoppers flocked to my table.

I have to consider if I can sell for a fair price. I do a quick calculation in my head: one third—fair price for the artisan; one third—pays for my plane ticket; and one third—proceeds to Cultural Survival, the non-profit that organizes the bazaars where I sell my wares.

At customs, U.S. citizens are allowed to bring in up to $800 of merchandise without paying a duty. After that, it’s 3% import duty. Whenever I source a new craft, I buy a small amount to take back with me and see how well it sells before committing to bulk orders. I also vary my inventory to cater to both budget-conscious shoppers and high spenders.

I market the crafts in three ways: directly to friends and at parties, at a shop by consignment, and at crafts bazaars. The holiday bazaars are cozy and festive, while the summer bazaars are held outdoors in destinations around New England, often near beautiful beaches.

The secret is keeping my operation small, just enough to subsidize my plane tickets (I profit between $800 and $1,500 on each trip. A round-trip ticket runs about $1,200). I stay under the threshold of bureaucratic hassle—import duties, licensing and shipping. I could turn it into a viable full-time business or non-profit if I wanted to, but for now I like to keep my life simple, flexible and full of adventure.

You’ve found your product…now what?

 

You’ve chosen your product, maybe brought some samples home from your last trip…now what? Now, it’s time to do some homework. You’ll need to find a market for your products. But don’t worry, it’s not as difficult as it might sound. Basically, you just need to do a little research; talk to local business people who you think might be interested in your product; do some online research.

In the following section, Reece Guth will share his advice on what you need to do next.

Do some research on your product

It’s important to do some research on the product you intend to sell. Is there already an established market for your product? Or is there a gap in the market that your product can fill?

Here are some places to do some research:

• Search the Internet: Search the Internet for people that may already be selling the product you are interested in selling.

• Check on eBay: Check websites like eBay. This will give you an idea of how these products are being marketed, how much they are selling for and will give you an idea of how popular your product is. It will also help you figure out how you can bring your own slant to your product and make it stand out among all the others.

• Check your local bookstore: Another good place to do some product research is in your local bookstore. Take a look at magazines related to your area of interest. Look at the articles and ads in the magazines. You may find some interesting ideas for your product and even some contacts.

• Look at catalogs Catalogs are also a good place to look. Thumb through the ones that appear in your mail box. You might be surprised to find similar products to your own in them. Much like the magazines, they might give you some marketing and price ideas.

Talk to store owners in your area

Talking to people who sell products like the one you are thinking of selling is always a good idea. These people know the market and can provide you with some very useful information. Look around your local stores, see what is selling and how much they are selling for. Check the quality of the products. If you have a sample of your product or a good photo of it, show it to the store owner and get their feedback.

• Talk to the sales people, and if possible, the managers or store owners.

• See what’s selling and how much items cost.

• Check out quality and note what you do and don’t like.

• If you have a sample or some photos, ask for their opinions.

Attend some local fairs and craft shows

Check out some art show or fairs in your area. You’ll find these events all over the country, all year round. If possible, attend shows that are specific to your product area. You’ll find industry specific shows like museum shows, outdoor furniture shows, jewelry shows, fashion shows…the list is endless.

These are great places to talk to people who are already involved in the Import-Export business. Ask questions, get ideas, and enjoy looking at the products on offer.

We’ll go into more detail about these types of shows later in this Import-Export Blueprint when we come to talk about selling your product.

Get in touch with U.S. Customs

We’ll talk more about this in a later section of this Import-Export Blueprint, but before you even start bringing your products into the U.S. to sell, you might want to check to see if there are customs charges associated with bringing your product into the country. This will be a big factor for your business…you don’t want to see all your profits go to the government in customs charges.

Reece Guth’s tips for getting started
in Import-Export

 

Reece Guth says that he learned a lot when he was first starting out in the Import-Export business. He began by travelling to Nicaragua with a wad of cash in his pockets to buy some Nicaraguan pots.

Reece has come a long way since then, and in this video, he shares some of the valuable insights he learned when starting up his business.

First-timer’s guide to suitcase importing

 

The easiest way to start your venture—a sort of trial run, if you like—is with an empty suitcase or two. For one thing, you’ll discover whether you have an eye for a bargain—wouldn’t it be silly to spend $30,000 on a product you’re not even sure you can sell back home?

You may be just going somewhere on vacation or perhaps you are scouting out some new retirement destinations, but it’s the perfect opportunity to take a look at what products your destination has to offer and to begin your Import-Export venture.

There’s nothing wrong with baby steps. The old cliché about not trying to run before you can walk holds some truth.

You can bring $800 worth of goods back into the U.S. from overseas tax-free (more about this later in this section). That’s just the perfect amount to test the waters…buy some stock, try selling it at home, and see if you are onto a winner.

Here’s some advice that we’ve gathered from our Import-Export experts to help you on the road to a smooth, first-time, buying trip:

• Pack as light as possible. The more space you have, the more space for shopping buys. When coming back, remember that exceeding your weight allowance will eat into potential profit. Do you need more than one change of clothes? Getting clothes laundered is unbelievably inexpensive in less developed parts of the world.

• Make sure your trip doesn’t coincide with a holiday period. These are often based on the lunar calendar and so dates change every year. In Muslim countries, almost all businesses close for Eid, the Islamic New Year. The same shutters-down policy applies to countries that celebrate Chinese New Year. Europe is very quiet between Christmas and New Year with many businesses closed for the entire holiday. August in Mediterranean countries is also usually a slow month thanks to summer vacations.

• Make out a “wish list” of items. Mark down comparative prices of what these items sell for either on websites or in stores at home.

• Travel with a calculator. When it comes to adding up purchases and negotiating prices, a calculator makes you look more like a seasoned shopper.

• A tape measure to check sizes won’t take up a lot of room. Neither will a black magic marker pen for writing on packages and boxes.

• Bring your own bubble wrap and tape. In some countries you’ll find it easily—but don’t rely on it being available.

• Take a notebook and keep account of everything you purchase. Be sure to include prices for each item—and hang on to the receipts. This accounting record will be useful if you get stopped by customs officials.

• When shopping ask for the price of a single item first. Then ask for a discount on multiple items.

• Don’t be shy about haggling (see more on haggling from our Europe Editor, and dabbling importer/exporter, Steenie Harvey below).

• Make up a money conversion cheat sheet and be sure to have it with you when you shop. This will help when you have to do currency conversions and will ensure you don’t overpay for your goods.

• If possible get a detailed invoice of the goods you purchase. In some places this may not be possible, but if you can get one, it will make bringing your goods back through customs a lot easier.

• Have small stickers printed up that detail where the products were made. For example, Made in Nicaragua. There are some countries from which you cannot import items from into the U.S. Having these stickers on your products will also help with customs.

• Make sure you understand the difference between goods for personal use and goods for commercial use. If you do get stopped, a wide assortment of items is less likely to lead to heavy questioning than if you try bringing back, for example, 2,000 faux leather wallets.

• Know the rules governing the $800 exemption on bringing back goods from overseas.

• Don’t rely on the advice of foreign sellers about what customs duty will be due in the U.S. or your home country.

Reece’s advice for your first buying trip overseas

In the following video, Reece Guth will outline some tips and tricks for your first buying trip. He’ll outline his advice for planning your trip, ordering your products, as well as some steps you need to take for bringing your products home if you are bringing a large order.

Reece’s Tip: Ordering your products

 

• Take your time ordering products. Spend some time walking around talking to people. Find out what’s new, talk to people about your ideas.

• When buying, haggle a little. Its part of the fun of import-export. Some cultures expect you to haggle. You probably won’t be expected to pay the first price that you are quoted. But use your common sense…if the price is already low, don’t brow-beat the seller down. They have to make a living too.

• Try to vary your sources. Don’t get all your products from the same supplier. Try out a few and see who does the best job for you.

• The quality of your products is very important. Be sure you inspect the products and are satisfied with the level of workmanship. If you want your products to be modified in any way, talk to your supplier about exactly what you want. You want to be sure they can produce what you want.

• In the beginning it may be best to under order rather than over order. You don’t want to be left with surplus stock that you can’t sell.

• Be prepared to leave deposits with people, particularly if you aren’t taking your products home in your suitcase. If you are going to leave money with people, you want to be sure they are people you can trust. And don’t forget to get a bill for your goods.

• To ensure that you receive the goods that you ordered (and not an inferior version of what you were promised) it can sometimes be a good idea to budget for two trips…one to place your order and one to collect it (if you are in the Import-Export business for the traveling, doing this won’t be a burden). Let your supplier know that you’ll be examining every item and that you will not pay for anything that is below standard.

Part of the fun of Import-Export is buying your products and haggling for a good price. International Living’s Roving Europe Editor, Steenie Harvey, loves to haggle…and anyone who has seen her in action will tell you, she’s good at it. Here she shares some of her tricks for getting a good price for your products. Haggle like a rug trader By Steenie Harvey Whether its rugs or wind chimes, Steenie knows how to haggle hard for the best prices. ©iStockPhoto.com/Adrian Beesley Whether it’s for wind chimes from Borneo or embroidered Turkish towels, I bargain hard for the goods that I purchase. Outside the U.S. and Europe, most of the world does business by haggling. Whether it’s for vegetables, fresh fish, or a new shirt, bargaining is part of the social fabric. Haggling isn’t only for suitcase importers. Learn the skills and you can really stretch your vacation spending money. Never be discomfited about getting down and dirty with market traders. And the more items purchased, the deeper the discount. The trick comes in knowing what amount to offer initially. And then deciding what’s a right and fair price. In truth, a lot depends on where you’re traveling. In Asia, prices for foreigners are often insanely bloated. So don’t be embarrassed about offering as little as a tenth of the starting price. In Latin America, initial quotes aren’t usually as crazy. Even so, when I’m shopping, I begin by offering no higher than 25% of the asking price. And so they know I’m unburdened with gringo guilt, I always jokingly say, “Soy Inglesa, no Norte Americana.” (I’m English, not North American.) But do some Internet research first. U.S. website vendors with craft items from the country you plan to visit can be useful. Divide their selling price by seven or eight, and you’re usually in the ballpark region of the real local price. Take alpaca wool blankets—recently spotted on Amazon.com at a “reduced price” of $90. I bought a couple for $11 apiece in Otavalo, Ecuador. On the other hand, I overpaid for cane rain sticks; a cunning vendor charged me $8 apiece for two 20-inch hand-painted ones. I sold them for $20 and $25 at my Bizarre Bazaar stall at an IL event, but the profits could have been greater. With more pre-trip homework, I’d have discovered a Quito craft cooperative selling similar rain sticks for $2.24. But let’s say you’ve done price research. And now you’re in a bazaar overflowing with goodies. It doesn’t matter where—the rules are essentially the same whether in Thailand or Turkey. Always get the merchant to open the bidding. This gives you the advantage. You don’t want your opening gambit to be too high. Look shocked. Roll your eyes. Snort with derision. Ask if that’s the best he can do. (He’ll do better). Be polite. Use flattery. Stress that you’re not wealthy. After striking a deal on one item, ask for a further discount for a bulk buy. Don’t hesitate to walk away. If there’s more leeway in the haggling process, the vendor will come after you. If not, you’ve reached his bottom limit. But there’s nothing to stop you from going back. Get the haggling habit and you’ll soon also be bargaining for taxis, hotel rooms, and even two-for-the-price-of-one snacks in markets.

Shipping costs and how they impact
your final sale price

 

By Reece Guth

There are many possible scenarios and numbers when it comes to shipping costs and it can be difficult to know if shipping the goods that you find on your travels back home in order to sell them is worth the time and money.

So, here are some examples to give you an idea of how real numbers might look:

Say you have a container that costs $5,000—door to door, all expenses, which is a fair and realistic number to use as an estimate from anywhere in the world to the U.S.

If you invest $5,000 in inventory and you think you can triple that amount in sales:
That gives you a gross total of $15,000 return.
You spent $5,000 on products. You paid $5,000 for shipping.
That leaves you with $5,000 gross to pay all your bills.
Not worth it!

Take that same container and put $10,000 worth of inventory in it:
Again, figure on triple the amount in sales; you get $30,000.
You spent $10,000 on the product and $5,000 to ship.
Now you have a gross of $15,000.

That’s a little more comfortable. You’re actually making some money, not a lot but you’re past breaking even, working part time, and hopefully having some fun.

Let’s say I can fit $25,000 worth of pottery in one container:
Once again, you think you can triple that amount…$75,000.
You spent $25,000 on product and $5,000 on shipping.
And you’re left with a gross total of $45,000.

You are committing more time here, but if you were to do this a couple times a year, you’ve got something going. (Not to mention the vacations you took to get it!)

How your type of product affects costs

Say you have a product like handmade leather wallets or embroidered blouses. Try to envision how many pieces would fit into a container—a lot. Perhaps it would be cheaper to ship a few boxes of these kinds of products by air. It may cost between $1,000 and $1,500 to ship some boxes by air which would be much more cost effective than paying $5,000 for a shipping container that you probably would not fill with such small products.

What this means is:
You may not need a really steep markup on your sale price. Because you’re stretching your shipping dollar you can get by with a smaller profit margin and gain a competitive edge with lower prices.

If you have a large item; furniture, for example handmade teak patio furniture, hand-carved wooden beds, or maybe rattan rocking chairs, you have to find out how much can go into a container to make sure that you end up with enough gross profit to make the cost of shipping a container worth it.

In any scenario, you need to keep your anticipated mark-up in mind and make sure that you are investing enough to make it worthwhile.

So with these types of examples in mind, you should be able to look at the things that interest you with a more educated eye.

Some shipping terms Shipping has its own language and acronyms for quoting prices and forwarding merchandise. Depending on the terms of individual agreements and orders, your liabilities will vary. If you’re unsure, ask your freight forwarder to explain exactly what your responsibilities and costs are. Signed by the agent of a ship or carrier, a bill of lading is a receipt for the shipped merchandise. It states that the goods were unloaded in the same condition as they were accepted. If you’re operating with a letter of credit you’ll need to produce this bill of lading for your bank to release the funds. FOB means “free on board.” The vendor delivers the merchandise to the stated destination with no additional charges, and also takes responsibility for insuring it. Once the goods arrive at the agreed destination, it’s the buyer’s responsibility. For example, FOB Los Angeles means the seller’s price quotation includes full responsibility and shipping to Los Angeles. FAS translates as “free alongside.” The vendor delivers the merchandise to the ship that will carry it to its destination. The buyer pays to load the goods onto the ship and also takes responsibility for insuring the goods from there. FAS Miami, for example, means that the vendor will deliver and store the goods until they are ready for loading onto the ship. C&F means “cost and freight.” The vendor pays the freight charges. The buyer insures the merchandise and takes full responsibility after it has reached its destination. CIF means “cost, insurance, and freight.” The vendor is responsible for the value and condition of the goods, and pays both insurance and freight charges to whatever destination has been agreed upon. From that point, the buyer becomes responsible. International shippers such as FedEx, DHL, and UPS have offices in most countries and have their own services for businesses. They can even handle customs brokerage. (You can visit their websites at www.fedex.com, www.ups.com, or www.dhl.com.) To find individual contacts in each foreign country, one of the best resources is www.freightworld.com. This site provides links to international forwarders (by air, sea, rail, and post), Customs brokers, movers, and warehouses, etc.

From Carmel to China and back again: Beau and Thompson Lange’s Import-Export story

If you find yourself on California’s Monterey Peninsula, be sure to call on Grove Homescapes and Homescapes Carmel. Set up by brothers Thompson and Beau Lange, these stores serve as showcases for Thompson’s globetrotting finds. His travels have now taken him to over 70 countries. According to the www.homescapescarmel.com website, current annual sales are now in the region of $1.25 million.

With their father Thomas, Beau and Thompson opened Grove Homescapes in Pacific Grove back in 1996. A home environments store, it basically combines custom furniture with antiques, handicrafts, art by local artists, interior plants, orchids, and flowers. “My brother wanted to join forces and open a business,” says Thompson. “He thought that my history of hitting the road with a backpack and no itinerary could be a useful asset.”

Amazingly, the store’s former existence was as a laundry! In a historic building, the old wash house had been condemned, but they successfully converted it into a Victorian-style store with a garden area. Beau’s former work in plantscaping and Thompson’s studies in scenic design at UCLA came in very useful. They accented the store with plants and accessories to set off the furniture that Thompson was bringing back from around the world.

“When we were remodeling the Laundry, we were the laughing stocks of Pacific Grove,” says Thompson. “Beau and I couldn’t go anywhere without people asking us: ‘When are you boys going to finish that thing?’ Then, when we opened Homescapes, we got a lot of advice about how it would make a better restaurant than a store.”

Although it was their first venture into retailing, the store was an immediate success. After its first year, Grove Homescapes became one of Pacific Grove’s top businesses. A report in the Monterey County Herald included a quote from Moe Ammar, president of the Pacific Grove Chamber of Commerce. “Within one year of operation they were among the Top 40 revenue producers in the city,” he said. “Being in the Top 40 means generating at least $1.1 million in sales.”

The Lange brothers’ second store, Homescapes Carmel, opened in 1999. Have a look around it at www.homescapescarmel.com. The former Great Western Bank building, it covers around 6,000 square feet—including the old vault they use as an art gallery.

How to Sell Your Products

Great products sell themselves? Well, maybe…but they’ll sell a whole lot better if you learn something about the art of selling and marketing. Obviously selling for a profit is the whole point of your endeavor, but marketing comes first. You have to get your products into homes and stores. And while you certainly don’t need a degree in business studies or advertising techniques to succeed, having some knowledge of sales and marketing will take you a long way.

Learning customs, laws, and culture

It is far beyond the scope of this course to point out all the nuances of culture and etiquette that exist between different countries. However, we strongly advise that you try to familiarize yourself with accepted customs and business practices for any of the countries you aim to target.

Take Morocco, for example. The social customs of the business community are mainly European, as most foreign trade is still conducted with European firms. In other words, definitely no shorts! As there are increasing numbers of Moroccan businesswomen, women shouldn’t encounter any difficulties—as long as you wear a fairly modest dress or a trouser suit. But wander around the souks in skimpy gear and you will almost certainly get stares.

If you are lucky enough to be invited to a traditional multi-course Moroccan meal, note that food is generally eaten with the fingers of the right hand. Although a guest is expected to partake of some of each course, no offense will be taken if you eat sparingly. But don’t ask “where’s the beer?” Muslims are forbidden on religious grounds from drinking alcohol and also eating pig meat. If you invite Moroccan guests for a meal, you certainly should not be offering them pork or ham. There is no harm in having a bottle of wine on the table, but make sure plenty of non-alcoholic drinks are provided, too.

Maybe you want some pictures of artisans to illustrate your new website? Always ask their permission. In some of the more primitive parts of the world, people simply don’t want to be photographed—it’s like stealing their soul. That’s not always the case. But if they’re happy for you to take photos, it’s an appreciated gesture if you also take a snap of the person on a Polaroid camera. It’s something for them to treasure too.

Market research and targeting

 

It’s important to identify where your customers are likely to come from. Do you aim to target individual consumers or other businesses such as retail stores? If it’s consumers, what are their age, gender, geographic location, educational level, income bracket, ethnic background, etc.?

You may wonder if such things are important. Not necessarily, but they could be. The more precise you are in identifying your most likely customer, the easier it will be for you to find them—as well as the products that are likely to appeal to them. And it also allows you to choose the best media method by which to reach these potential customers.

Take the arts and crafts sector. What kind of customer do you have in mind? Is it the tourist who wants cheap and pretty mementos or the serious collector? Your customer profile should give you an inkling about what kind of goods you should be sourcing—and also how much to charge for them.

How about a Singha dragon—a traditional Thai temple guardian—carved from a block of jade? Yes, it’s green. However, a tourist who just wants an inexpensive souvenir to remind him of his beery day out at the North Texas Irish Festival in Dallas certainly isn’t going to pay $350 for it. But choose the right event to showcase your products, and a collector of fine art may be far more willing to spend large sums for an original piece of carved jade.

Selling from your own home

 

If you’re just starting in the Import-Export business and want to gauge how well your products will sell, or if like Alison Talbert you are happy to keep your business on a smaller scale, a great way to sell your products is to do it from your own home.

Alison invites her friends and family to her house for a party to sell her Ecuadorian products. She says she puts on some music and serves Ecuadorian food so that her customers feel comfortable and relaxed. Her customers have a lot of fun trying on her alpaca scarves and hats before they buy. This is a fun and easy way to start showcasing your products, before deciding if you want to sell to wider audience.

In the following video, Alison will explain how she sells her products, both at home and through her website, Income from Ecuador (website: http://incomefromecuador.com).

Tapping into America’s heritage

 

Let’s say your specialty is going to be importing goods from Germany—dirndl dresses, music boxes, nutcrackers, cuckoo clocks, beer steins, Christmas ornaments, and other folk art and collectibles.

Who is likely to buy them? Plenty of people! Although it seems almost impossible to imagine a roll-out-the-beer-barrel and get-stuck-into-the-sausages event amongst the palm trees of sunny Florida, it happens. Did you know that Cape Coral’s German-American Club holds an Oktoberfest? The event, spread over two weekends, draws around 30,000 visitors each year. Helping to preserve the cultural heritage of their immigrant forefathers, numerous other communities in the United States also have German-style summer festivals, arts and crafts fairs, and Oktoberfests.

Frederick in Maryland has a Frühlingsfest (Spring Festival), Louisville in Kentucky has a Christkindlmarkt (Christmas market), and New Ulm in Minnesota calls itself the “city of festivals” with a Heritagefest, Oktoberfest, and Fasching (Carnival). The largest of them all is the German Fest in Milwaukee, Wisconsin. Held on the shore of Lake Michigan over three days every July, it attracts over 100,000 visitors. That’s 100,000 potential customers! Shouldn’t you perhaps be thinking about taking a booth at some of these events?

But it’s not only German festivals, of course. There are Irish festivals, Scandinavian festivals, Polish festivals, and all kinds of other ethnic festivals, too. Many, many communities throughout North America celebrate their heritage. And thousands more communities have cultural, musical, or other events where you can rent a booth to exhibit your products. It’s a great opportunity for you to sell your wares. Most visitors will be seeking something unique and different to take away with them.

The downside of exhibiting at these events can be the cost. For a 100-square-foot booth, it could be as low as $40. On the other hand, it could cost you hundreds of dollars. Another thing to note is that some festivals charge commission to vendors—sometimes as much as 30% on the goods you sell. Before paying for a booth at an event, think about how much you will probably sell.

In many cases, you have to fit in with the ethos of the fair or festival. Held in May in
Northridge CA, the Whole Children, Whole Planet (WCWP) Expo attracts 10,000-plus attendees. It’s “about raising healthy children—mind, body and spirit—in a safe, natural, non-toxic, nurturing environment. To be eligible to participate, exhibitors must meet one or more of the following criteria in alignment with our philosophy.”

That philosophy includes:

• Produce or sell natural health and/or environmentally-friendly products at the manufacturer, distributor, or retail level.

• Support holistic medicine practices.

• Supply other products/services/destinations in keeping with the Expo philosophy.

From what we could see from the reservation agreement for the four-day Scandinavian Festival in Junction City, Oregon, there is a commission of 12% of gross sales sought from vendors here. You exhibit or sell items pertaining to Scandinavia. There is a flat fee of $180 for booth rental—with electricity provided if necessary. Exhibitors also get a six-foot table, two chairs, table cover and skirt, booth divider, and booth backdrop.

Reece Guth’s strategy for selling your Import-Export products Reece Guth’s first shipment of pottery from Nicaragua contained just 40 pieces. He used those pieces to gauge interest in his product and used them as samples to market the pots in stores in locality, on eBay and at fairs and festivals. Reece’s marketing of his product was a success…his second shipment of pots from Nicaragua was 400 pieces. In the following video, Reece will talk about the many different ways in which you can sell your product. From “cold-calling” your local stores to setting up your own website and selling online, there are numerous ways to get your product out to customers.

Finding fairs, festivals, and other events

 

At many events, booth space gets taken early. It may be worth investing $49 to access the members-only section of Festival Network Online (website: www.festivalnet.com). Here you’ll find detailed information on over 22,000 festivals that are held annually throughout the United States: what the event is about, when it takes places, contact details, the cost of booth space, how many booths are available, and deadlines for booking. Plus—and this seems to be a valuable plus—how many visitors attended the event last year.

You don’t want to spend money on a booth at festivals with poor attendances and where the fair-goers never get out their wallets. Your aim is to make a profit, not lose money.

Regional tourism offices should also be able to tell you about regular fairs and festivals. Some States, such as Indiana, have their own State Festivals organizations. Take a look at www.indianafestivals.org to get an idea.

One that came up here was Ethnic Expo in Columbus—founded in 1984 as a celebration of the city’s varied ethnic heritage as well as its cultural traditions. Annually, Ethnic Expo attracts more than 40,000 people who enjoy international food and browsing around a marketplace for ethnic arts and crafts.

Here’s another way to find events. If you’re concentrating on importing goods from one particular country, you should also check if there are any publications that cater to this particular group. Like people of ethnic German background, communities whose folks emigrated from Ireland, Scotland, Poland, and Scandinavia are also big fans of heritage festivals. It will help you to pinpoint forthcoming events for a particular market segment. (And you may want to consider taking out an advert.) Such publications certainly exist. Leafing through a copy of the U.S.-published German Life, from the advertisements we can see that it’s not just crafts that sell. Although it beats us why anybody on this earth would want a “yodeling troll,” there are also adverts for German handmade tools, German natural skincare products, German cheeses, Austrian pumpkin seed oil, and other imported food products from German-speaking Europe. One company will order customers any German book that is currently in print.

Making the festival circuit pay

Before spending money on a booth at a fair or festival, go along to a few as a spectator. Note the stalls that are busy—what kind of items are they selling? How are their booths set up? Talk to booth owners. How does this fair or festival compare with others that they have attended?

Have you got a license to trade and sell products at a festival? Most cities require any business, home-based or otherwise, to register and purchase a business license. These generally range from $15 to $100 and in most instances are obtained from the city clerk’s office. It makes your craft show company official and enables you to conduct business legally. Festival organizers will probably ask you to produce it.

You will probably need to get a resale (sales tax) license. In most states, you need to charge sales tax on your products and then submit it to the tax board either monthly, quarterly, or annually.

As it can vary by city, county, and state, ensure that you find out the amount of tax you need to charge. Check with your local state office of taxation to find out the rules. Carry your sales tax permit everywhere. If you need to pick up some local supplies related to your business, you can avoid paying sales tax on them. Some show promoters collect sales tax on vendors’ behalf at the end of the show. In both cases, you’ll need to keep accurate records. The best way is obviously by issuing a receipt with every customer purchase and keeping a copy for both yourself and the tax people.

10 tips for festival success

You’ve taken the plunge, got the necessary licenses…and are about to attend your first fair or festival as a vendor. Here are some tips and ideas to make it a success:

• Do potential customers know you’ll be there? If you have a website or Facebook page, post details of the event. Invite them to come along and meet you in person—to see and handle your products first hand.

• Have you got enough business cards or brochures?

• Are you clear about the festival’s rules—about what items may not be allowed? For example, Buckler Promotions which organizes some home and decor fairs in Florida says exhibitors will be asked to remove any objectionable material: the list includes witches, wizards, and occult items. So witch puppet decorations from Germany are unlikely to go down a storm here.

• Get professional-looking price tags. North America is not the Middle East or India. Potential customers do not expect to haggle.

• You’ll probably be using some kind of vehicle to transport your products. Is it in good order? The last thing you want is to break down on route.

• If you have a vast array of products, don’t overfill your booth or stall with every single item in your inventory. Clutter isn’t attractive.

• Be prepared to chat about your travels and the products—don’t sit in the corner with your head buried in a book looking unapproachable. Interaction with customers is vitally important. It’s not only about selling your product, you’re also there to inform and educate—obviously not in a superior manner, though.

• To a certain extent, you’re there to entertain your potential customers, too. Who wants to buy anything off Mr. or Ms. Grumpy? If you’re hopeless at talking to strangers or making pleasant chit-chat, consider bringing along a more sociable friend.

• It should go without saying, but be neat and clean. You don’t have to spend a fortune on a special outfit, but you shouldn’t give the impression you’re an unwashed hobo.

• Ask your buyers (and even visitors who showed an interest but didn’t buy) to give their details in a “guest book.” Tell them about your next scouting trip—and how you’d like to send them first pick of your new finds.

Selling to stores

 

If you’re hoping to sell to stores, again do some research. Is it a chain of stores or stores owned by individuals? What is their size and geographic location? (Going back to the festival idea, there’s got to be German heritage shops in the German heritage towns, right?)

But let’s broaden the picture. Take retail stores that carry an eclectic mix of goods from all over the world—there might be one or more in your own hometown. If it’s a small local gift shop, you could simply call in and introduce yourself to the owner. Explain your travel schedule and what you’re doing—or plan to do. Would the owner be interested in seeing samples when you return home?

However, if it’s a large city department store, it may be more appropriate to initially write to the decision-maker in the buying department after you’ve been on a buying trip. Ask for a meeting—tell them who you are, and the kinds of product you can supply.

Reece’s Tip: Selling your own product

 

When selling your own product, it’s important that you are enthusiastic about it. If you are excited about what you do, it’ll be easy to get other people excited about your product. Here are some tips from Reece on selling your own product.

• Be upbeat and positive.

• Bring some photos of the places you went to when you were sourcing your products and the people you met while there. Have some good photos of your products too.

• People love a good story…have some background information about your product and the people who made it, or have a story about how you came to find your product.

• The personal touch goes a long way. You can write letters or make phone calls to people explaining your product but face-to-face contact is much more effective. Reece says that when he first started to market his pottery, he would walk into a store and asked the manager if he wanted to hear a story. Most of them said yes and after hearing his story of how he ended up in a Nicaraguan village, they were happy to take a look at what he had to offer.

Tips for photographing your product By Reece Guth When selling your product, particularly online, it’s important to have good photos. In my opinion poor photography will hurt you. Take good, clear, sharp photos and use a plain background that won’t distract from your subject. If you don’t already have one, invest in a tripod, a few lights with stands, and a white or light grey seamless background. Here are some sources I would recommend for photography equipment: www.bhphoto.com www.adorama.com www.uniquephoto.com www.eBay.com If you are concerned about where you are buying your equipment from, then check out www.Resellerratings.com. Here you can double check a seller’s reputation. With product photos, and photography in general lighting is everything You can wait for overcast days and you can also use tagboard or other kinds of inexpensive background paper, but make sure the background for your product is clean and wrinkle-free. A roll of “professional” paper costs about $25. You can use find lighting equipment: here are some general prices: A stand with umbrella: $70 A complete lighting kit with three lights, etc.: $219 or less That will do a really nice job for you and last a lifetime. Plus now that you’re in business, it’s tax deductible! With a digital camera and some basic software like Adobe Elements (website: www.adobe.com/products/photoshopel), I am confident that everyone will be able to easily come up with some top notch results.

Setting up your own website

 

If you want to reach a national audience—even an international audience—you cannot afford to ignore the Internet.

Should you bother to have your own website? Everybody we’ve spoken to in the Import-Export business emphatically says “yes.” Without one, you’re spurning the opportunity to reach millions of potential customers and to earn substantial sums of money—from the comfort of your own home computer.

If you cannot design your own website, you will have to pay someone to do so. The costs for this can vary enormously, so shop around. To find someone to help you design your site, you could check out www.craigslist.org, and put up an ad, or answer one of their work-wanted ads. You could also check out a site like www.elance.com.

Alternatively you could hire a local high school kid. Kids these days are pretty tech-savvy, so it wouldn’t be all that difficult to find one to do what you need—also, a student might be cheaper than hiring a professional

A few things to consider when thinking about building a website (or getting someone else to build one for you):

• Check out the websites of competitors. List what you like—and don’t like. Think about what you want to include on your own site.

• Aim for a concise, neat, easy-to-navigate site. Potential customers do not want to spend their precious time trying to figure out where to order your product. No matter how interested they are, if they can’t easily navigate the order process, they’re not going to stick around to buy.

• The most popular sites on the Internet are not full of busy graphics or decorative text. Don’t be tempted to go for a flashing purple and orange font in a bid to stand out from the crowd—you may only irritate or confuse your potential customers, and send them running to your more conventional competitor.

• Choose a website address—or domain name (also called URL)—that is short and simple.

• Register your domain name.

• Add the website address to your letterhead, business card—all marketing materials and advertisements.

• Consider setting up a PayPal account so people can pay you via eBay or your website.

• Think about including a business blog. This will help in driving traffic to your site, building customer relations and trust, and give you fast and accurate feedback.

Obviously you will have to pay to get your website hosted, too.

Through Network Solutions, www.networksolutions.com, the annual cost for domain name registration, 300 GB of disk space and e-mail box storage starts at $238.98 going up to $699 annually for larger traffic websites.

They also offer various e-commerce packages. For example, the Standard E-Commerce Solution package is a “starter shopping cart solution ideal for new online stores selling 300 items or less.” This package also includes:

A choice of professional e-commerce design templates—no HTML or website programming skills required!

An easy-to-use checklist guides you through the storefront set-up process.

The ability to track your online store’s performance using the built in website sales and traffic reports. This costs $56.19 per month.

For more, see their website: www.networksolutions.com.

Network Solutions is just one of many companies out there offering these kinds of services, so shop around—there are numerous ways to get a website up and running.

Ways to make a website pay

Some people are more tech savvy than others. If you know little about Internet marketing, you may want to investigate topics such as Search Engine Optimization (SEO). Basically, SEO drives your e-commerce company up to the top of the search engines’ listings. Usually, the higher a site appears in the result pages on search engines like Google and Yahoo, the more people will visit that site.

It’s beyond the scope of this course to cover what is a mammoth subject, but you’ll get ample information if you Google “SEO tutorial.”

People use different “keywords” and key phrases when they search for products online. Find out all about this on www.wordtracker.com. With Google AdWords you can reach people who actively seek your products and services. That means you receive targeted visitors and customers. Cost-per-click pricing means you only pay when people click on your ad, and it is easy to control costs. For more, see www.google.ie/intl/en/ads/.

Opportunities on eBay

 

While eBay has generated a lot of annoying spam, it’s not all about auction bids. Many people in the Import-Export business have their own “stores” on eBay. They use the site in almost the same manner as a catalog company showcases its products. The difference is that potential customers aren’t flicking through a print catalog—they’re seeing pictures and descriptions of products on the web. Numerous commentators have rated it as the top home business opportunity.

Despite the credit crunch, people are still shopping. For the year ended December 31, 2010, eBay Inc. reported net revenue totaled $9.2 billion, up 13% from 2009. By using eBay as a marketing tool, you’re getting the opportunity of fairly low-cost advertising to increase sales.

There are three basic subscription levels for eBay stores. At the time of writing, eBay was offering a free 30-day trial.

• Costing $15.95 monthly, the “Basic Store” is for fledgling sellers who are seeking an easy-to-use platform to sell online.

• Costing $49.95 monthly, a “Premium Store” is aimed toward small to medium sellers who want to aggressively grow an online business.

• An “Anchor Store” is an advanced solution for higher-volume sellers who want maximum exposure on eBay. This costs $299.95 monthly.

All store sellers receive monthly sales reports that outline their activity by category (for example, monthly gross sales, conversion rates, and number of buyers). Additionally, if you have a featured or anchor store, you’ll also receive overall eBay marketplace data so that you can compare your sales against other eBay sellers.

Unfortunately it’s not quite as simple as paying $15.95 a month and waiting for the orders to roll in. You also have to pay for “Store Inventory Listings.” The insertion fee covers any quantity of items with a single listing—whether you list one or 1,000 of the same item. Fees for a product line are based on the price of the product. There are also “Final Value Fees” on the sale price of your item.

You’ll find more information on eBay itself at http://pages.ebay.com/storefronts/start.html. You can also find information on the site about signing up for PayPal—a fast, easy, and secure way for buyers to pay you online.

Tap into the social media phenomenon

Using social media as a marketing tool has become very popular in the last couple of years. With the success of the likes of Twitter and Facebook, businesses are now setting up Facebook pages and Twitter accounts in order to get the word out about their products to a mass audience.

With a social media application like Facebook you can tell your followers all about your product, post photos, ask questions and get feedback, inform your customers about special offers. It’s a great, and inexpensive, way to market your product.

For more see:

• www.Facebook.com
• www.Twitter.com

Opening your own store or gallery

 

You may eventually want to think about opening your own high-end specialty store. Of course, this can be expensive. Depending on location, rent can add up to thousands of dollars per year—and if it’s in a really exclusive location you could be paying thousands of dollars a month.

Obviously you’ll need to sell a lot of products or charge a significant amount. However, if your business is in the right place and people are excited about what they see, it may be an option to consider in the future.

It may eventually lead to a whole chain of stores…

Other strategies to get yourself and
your business known

 

• You could distribute ads about specialty items to targeted groups. These can be very effective if they’re imprinted or tagged with your business name and phone number. For example, Thailand produces some beautiful curiosity key rings with tiny carved wooden elephants and miniature figurines of Padong hill-tribe women. (The Padong are the “giraffenecked women” with all the gold rings around their necks.) Each key ring sells for the equivalent of $0.40 apiece. That’s retail—locate a wholesaler and you’d undoubtedly get them a whole lot cheaper if buying in bulk.

• Write articles for a publication. Have you become a bit of an expert on Peruvian loom-spun fabrics or Mexican silver? Well, share the benefit of your expertise with the rest of us. Though any extra income is always useful, it does not necessarily matter if a publication pays generous rates. You’re getting free publicity. And it all counts. (Just make sure your website or business address gets included in the author’s bio at the end of the article.) Or, you might ask the editor if it’s possible to forego payment in return for free ad space.

• Write infomercials to use on your own website or in marketing materials. If you decide to have your own website, don’t simply fill it up with pictures and price lists. Convey something of the romance and history of your products to your readers.

• Take your spiel on the road. Church groups, women’s groups, Rotary clubs, and countless other organizations are always seeking willing speakers to talk about interesting topics. The artisan villages of Ecuador? After your talk, maybe during refreshments, arrange to have a table set up where you can display—and of course sell—samples of the goods you imported from Ecuadorian villages.

Alison’s tips: 5 things I’ve learned setting up an Import-Export business I always travel with the largest but lightest suitcase I own and pack another suitcase inside. This allows me to fill up the second suitcase with all of my new finds. Although many airlines are now charging fees for a second bag, those fees are negligible when compared to shipping costs. Just be sure that you weigh your luggage so you don’t get hit with overweight baggage fees. To find the best quality and the best deals, ask around in the area in which you are staying. I have spent many a fun afternoon tracking down seemingly elusive items, often resorting to my “caveman” Spanish, gesturing and sprinkling my English with rudimentary Spanish. I liken the search to a treasure hunt. If you are persistent and keep asking around, you will eventually find what you are looking for. The Ecuadorian people genuinely want to help you, so step up and ask. Be prepared to pay vendors in cash, especially in the markets. Cash is king. Even if a store will accept credit card payments, your price will always be higher using plastic. When you are negotiating prices, always ask for the “cash price.” Merchants expect you to bargain, and they will be ready to quote one price for using credit cards and a different, and lower, price for using cash. Some credit card companies charge an extra fee for international transactions, and that can drive your price up even higher. If you’re having products made, be sure you are very, very specific about what you want. Don’t assume anything. Provide photos if possible, and think through every conceivable detail, including how your merchandise will be packaged and shipped. Some time ago I placed an order for alpaca scarves and blankets. When the order arrived, I could literally see some of the blankets peeking out from the box. The blankets hadn’t been wrapped, and the box hadn’t been properly taped. Needless to say, some of my merchandise was ruined. Now I know to specify exactly how I want the items to be packed in order to best protect them. If you are shipping a significant amount of merchandise home (even one large box), always check with a qualified shipping agent. This can save you lots of time, headaches, and money. A shipping agent can help you with all of the necessary paperwork to ensure that your package clears customs as quickly as possible. Check to see if the boxes can be sent using Air Cargo, which is often much cheaper and quicker than International Express Mail.

How to Import and Export Your Products

Importing products into the United States

 

Back in 2003, the U.S. Customs Service combined with the Department of Agriculture, the Immigration and Naturalization Service, and the Border Patrol to form the United States Customs and Border Protection (CBP) Agency. To avoid any confusion, when we make reference to U.S. Customs, we are referring to the customs side of the Customs and Border Protection Agency.

Many of us have experienced U.S. Customs at some time or another, if only on returning from vacation. Bring back too many gifts, cigarettes, alcohol, or other purchases and you’ll get whacked for import duty. Very often even knowing what you’re allowed to bring in can be confusing. It doesn’t get any easier for businesses. The myriad rules and regulations for commercial importers are complex to say the least.

Ann Gallagher, from Chicago, found this out when she attempted to import 5,000 silk scarves from Thailand. On paper, it seemed a sure-fire way of making money. Ann bought the scarves for $2.50 apiece—$12,500 in total—and paid around $1,500 for shipping, estimated U.S. Customs duties, and other associated costs. She knew she could sell the scarves for at least $17 at gift fairs, since they were selling in Chicago retail stores for $35.

Unfortunately for Ann, the consignment was opened by U.S. Customs. They discovered the scarves had no labels detailing the country of origin or the kind of material they were made from.
If she didn’t want the scarves confiscated, they had to be shipped back to Thailand to conform to U.S. labeling. Ann also had to make a return journey to find someone to make the labels. As well as the extra shipping costs for the scarves and her travel costs, fees and the labeling ate up another $800 in what could have been profits. “And it took around 500 e-mails to get it all sorted out,’’ she tells us.

In this chapter, we go through the process of importing goods in the U.S.—so you don’t end up like Ann. Our main source of information is U.S. Customs itself. See their website for some excellent information and tips: www.cbp.gov/xp/cgov/trade/basic_trade/.

U.S. Customs

U.S. Customs is responsible for enforcing import and export laws at U.S. borders. Together with the Department of Agriculture, the Immigration and Naturalization Service, and the Border Patrol, the CBP is responsible for just about everything that moves into or out of the United States.

As an importer, you will have to deal with U.S. Customs regularly. It’s worth taking a little time to get to know why they are there—and more importantly, how to work with them.

The responsibility of U.S. Customs includes: calculating and collecting duties, taxes, and fees due on international trade; regulating and facilitating the movement of commodities between the United States and other nations; protecting the American consumer and the environment against the introduction of hazardous or noxious products; and protecting domestic industry and labor against unfair foreign competition. In addition, they are also responsible for investigating and detecting the smuggling of prohibited articles (narcotics, drugs, and contraband) into the United States.

If you’re only looking to sell imported goods to help fund your foreign travels, you might be tempted to continue bringing them back “for personal use” in your luggage. No duties to pay, no forms to fill in, no additional transport costs. Naturally U.S. Customs is also responsible for detecting such devious activities. You might get away with it once or twice, but then again you may get caught first time. Don’t do it! The penalties can be pretty severe. At a minimum, you’re liable to get a large fine.

In an ideal world of truly global free trade, we wouldn’t have to pay import duties at all. Unfortunately, we don’t live in an ideal world. Import duties are there and you have to pay them. Few people realize that import duties rank second behind income taxes as a revenue source for the federal government. When you start importing, your first contact with customs is likely to be at one of 330 official ports of entry in the United States. There are also 14 pre-clearance stations in Canada or the Caribbean.

The importance of following correct procedure when importing goods cannot be overstated
When you consider the amount of traffic that U.S. Customs handles, it’s hardly surprising that consignments with bad paperwork are delayed. On a typical day the Customs and Border Protection Agency:

• Processes 965,167 passengers and pedestrians and 47,293 truck, rail, and sea containers.

• Carries out 1,903 apprehensions at and in between the ports of entry for illegal entry; 225 refusals of entry and 75 arrests of criminals at ports of entry.

• Seizes 11,435 pounds of narcotics.

• Seizes 539 pest interceptions submitted to USDA at ports of entry.

• The CPU protects 5,000 miles of border with Canada, 1,900 miles of border with Mexico, and 95,000 miles of shoreline.

You should keep up with any new changes to procedures by regularly looking at the U.S. Customs website, www.cbp.gov. It’s a huge site. You may need some time to navigate your way around to the information you want. But it’s worth it in the long run. It can provide the answers to many of the more complex issues that we can’t cover here.

Understanding informed compliance

 

In 1993, the Customs Modernization Act became law. This amended certain sections of the
Tariff Act and various related laws. The act also introduced two new concepts all importers should know. These are “informed compliance” and “shared responsibility.”

They mean that you, as the importer, are responsible for exercising “reasonable care” to enter, classify, and determine the value of imported merchandise. You are also required to provide all the necessary information so that U.S. Customs can properly assess duties, collect accurate statistics, and determine whether other applicable legal requirements have been met.

It is then the U.S. Customs Service that is responsible for fixing the final classification and value of the merchandise. Importers failing to exercise reasonable care may find their merchandise delayed at customs, and in some cases, be subject to penalties.

Customs brokers

 

Although there is no legal requirement to use a customs broker to clear your goods, many importers opt to do so. Providing you are dealing with shipments valued at less than $2,000 and the products are not subject to restrictions, you will probably be able to clear your imports through customs yourself. However, if you have any doubts about the status of your imports, you should consider finding yourself a good customs house broker.

Licensed by U.S. Customs to conduct customs business on behalf of importers, there are some good reasons for using a customs broker. Acting on your behalf, a broker will:

• Prepare and file the required customs entries

• Arrange necessary customs bonds

• Arrange payment for duties due

• Effect the release of goods from customs custody

• Represent you in all custody matters

• Advise on transport options

• Assist with classification and dutiable values

• Be fully aware of commodities subject to quotas

• Deal with other government agencies if the need arises

Customs brokers are highly trained import professionals. To become a licensed broker, a person has to pass an examination to verify a thorough knowledge of the tariff schedules and customs regulations. Once licensed, a broker must keep informed and up to date with any changes made in the customs laws and administrative regulations.

When you take into account that every shipment entering the United States has to comply with over 500 pages of customs regulations, it becomes apparent just how complex the job can be. When a broker fills out customs forms on your behalf, each item or product in your shipment has to be classified using its Harmonized Tariff Schedule number. The broker will also make necessary arrangements to have your shipment inspected and cleared by a customs inspector. Very often a customs broker will act on your behalf in dealing with government agencies other than customs. For example the Food and Drug Administration (FDA) may have to be consulted on the product safety of some imported items.

Although you will undoubtedly pay more for additional services, there are many brokers who will help clients choose the most effective mode of transport. Some will even provide assistance in selecting the best routes for shipments.

A good place to start looking for a customs house broker is your local area yellow pages.
Alternatively, full listings can be obtained from the Customs and Border Protections website here: www.cbp.gov/xp/cgov/toolbox/contacts/ports/. On the website, go to the “ports” page, and select the state. You’ll see a list of the various points of entry around the country. For example, the California list contains 20 points of entry. Choosing Los Angeles/Long Beach seaport will provide you with a full list of official contacts for that port. The same page also provides a link to available registered brokers.

Another good source of information is the website of the National Customs Brokers and
Forwarders Association of America (NCBFAA) at www.ncbfaa.org.

The information in this section only covers the basic process of importing into the United States. In a course this size, it simply isn’t possible to cover each and every U.S. Customs law and regulation. Administrative changes are continuously taking place within the Customs and Border Protection Agency—and changes to procedures may be introduced at any time. Likewise, restrictions, tariffs, and quota limitations on imported products are subject to change. There is a great deal to take into account to ensure that you comply with import laws. They can be complex, and it’s not surprising that the majority of imports are handled by professionals.

If you’re in doubt at all, use a broker or seek advice directly from U.S. Customs.

Duty-free exemptions

 

Depending on the countries visited and time spent away, your personal exemption for duty-free goods is $800 when returning to the United States. The items are supposed to be for your personal or household use or intended to be given as gifts…few suitcase importers admit the goods they are carrying are for resale.

You don’t have to go through any of the normal import-export formalities. In most cases, you’ll fill in a customs card given on the airplane. To claim the $800 exemption:

• The items have to be in your possession—that is, they accompany you when you return to the United States. Items to be sent later may not be included in your $800 duty-free exemption. (Exceptions apply for goods sent from Guam or the U.S. Virgin Islands.)

• The goods must be declared on the customs card to Customs and Border Protection. If you don’t declare something that you have, you risk forfeiting it.

• Your overseas stay must have been at least 48 hours. (This time limit does not apply if you are returning from Mexico or from the U.S. Virgin Islands.)

• You have not used all of your exemption allowance, or any part of it, in the past 30 days. For example, if you go to Bulgaria and bring back $500 worth of items—you must wait another 30 days before you are allowed another $800 exemption.

• Items are not prohibited or restricted. So no Cuban cigars.

If traveling with a spouse or partner, you can also avail of what’s called a Joint Declaration.
Family members living in the same home and returning together to the U.S. can combine their personal exemptions. For example, if you bring home $1,000 worth of Indonesian carvings, and your partner buys $600 worth of apparel, you can combine your individual $800 exemptions on a joint declaration and not have to pay duty.

Leaving aside alcohol and tobacco products, children and infants are allowed the same exemption as adults.

U.S. import requirements

 

To ensure that your imports clear customs quickly, you need to follow procedures and regulations with great care. Some will apply to every shipment, but the exact nature of the products you import will largely determine just how many of these procedures apply to you.

Any individual is entitled to make his own customs clearance of goods for either personal or business use. You are not required to have a license or permit. Other U.S. government agencies may require a permit or license, depending on the nature of the merchandise. U.S. Customs entry forms require you to enter an importer number. This isn’t as mysterious as it sounds.

Basically, if you operate a legal business, this number will be the same as your IRS business registration number.

All goods coming into the country must clear customs and, unless they are exempt, will be subject to a customs duty. U.S. Customs clearance involves a number of processes:

1. Entry

 

1. Inspection

 

1. Valuation and appraisement

 

1. Liquidation

1. Entry

Types of entry:

Informal or formal?
Informal entry can be used if the goods in a shipment are valued at $2,000 or less. This applies to personal, commercial, and mail shipments that are being entered for use or sale. There can be some exceptions. Some merchandise, for example textiles, may be subject to quotas—in this case formal entry will be required.

All shipments—including personal ones—valued at over $2,000 require formal entry. The major difference between formal and informal entries is the bond requirement. Formal entries tend to be commercial shipments that usually require a surety bond. The surety bond ensures payment of duties and compliance with U.S. Customs regulations.

Having a bond on file allows an importer to take possession of his merchandise before the payment of duties, taxes, and fees. Any duties due on goods admitted as informal entries have to be settled straight away so they don’t require a bond.

Customs bonds A customs or surety bond is a guarantee from the issuing surety company to the U.S. government that an importer will fully abide by the laws and regulations governing the importation of merchandise into the United States. It is basically a means of guaranteeing that customs gets any money that it is due. Customs regulations require that a bond be posted for each formal importation of goods entering the United States. When goods are imported, it is the importer that is responsible for making the goods available to U.S. Customs for inspection, ensuring accurate labeling and packaging requirements have been met, making transaction records available for audit, and paying estimated duties and fees, where applicable. The surety company issuing such a bond guarantees the importer will fully comply with any customs regulations. Customs bonds are not a type of insurance for the importer. They do not protect the importer, nor do they relieve importers of their obligations. The surety company issuing the bond would be called on for payment if and when an importer refuses to, or cannot fulfill their obligations. When that happens, the surety company is entitled to full recovery of any loss incurred from the importer. The most common customs bond is a basic entry bond. It covers the entry of goods for immediate delivery, consumption, temporary import, warehouse entry, and withdrawals. You can apply for either a single transaction customs bond or a continuous customs bond. The single transaction bond covers just the one entry as it occurs, whereas a continuous bond usually remains in force for one year, but can be renewed annually. The amount of this bond is usually equal to around 10% of the total customs duties paid for the previous year, or reasonably estimated for the current year, but is normally not less than $50,000. The continuous customs bond also covers transactions at any U.S. Customs district or port. The cost of either a single or continuous bond will vary enormously from company to company. Factors such as what the consignment is and the country it’s coming from are taken into account. The contract brokerage service of UPS for example, would charge $30 for a single entry bond for merchandise arriving by air from Canada. A continuous entry bond would cost $500.

In filing a formal entry for imported goods, the following documents must be submitted:

• Evidence of right to make an entry. All shipments requiring formal entry have to be made by the owner, purchaser, authorized employee, or a customs broker. U.S. Customs officers may give an inexperienced importer assistance and advice, but they are not authorized to act as agents for importers. When an entry is made by a customs broker, a customs power of attorney has to be made in the name of the customs broker. Entry Manifest (Form 7533) or Application and Entry/Immediate Delivery permit (Customs Form 3461).

• A commercial invoice or pro forma invoice. Obtained from the seller, this must show the value and description of the merchandise. Having a fully detailed and accurate invoice is vital to a smooth transition of your goods.

As an example, let’s assume you have purchased a total of 300 bead necklaces from an African vendor. Your order is for eight different colors and lengths of necklaces. You may even have been able to get the same price for every item. It may seem to you, and the seller, that it’s good enough for the invoice to show 300 different colored beaded necklaces at $3 each. It’s not…

Every last detail will be required. How many red necklaces? How many green? What material is used to string the beads? What length? What material is used for the clasps? What are the beads made of? What size are the beads in millimeters? If you’ve got eight different colors, three different materials, and two different lengths, then you need to list each separately.

It’s also important to have them separated and marked accordingly on the invoice and packaging of your consignment.

• A bill of lading, air waybill, or carrier’s certificate. This should, for customs purposes, include the name of the consignee as evidence of the consignee’s right to make entry.

• Packing lists and any other documents needed to determine if the shipment can be admitted.

• Evidence of surety must also accompany the entry. This covers any potential duties or taxes which may be due. If you are using a customs house broker, they will usually arrange a surety bond for you.

Entry by mail
If you are just beginning your business or are happy to operate on a small scale and will just be importing small quantities of merchandise, you should consider using the postal service—certain situations excepted. If your goods are valued at $2,000 or less, there are advantages to be gained by using this method:

• Clearing shipments through customs is easier.

• The duties on these packages are collected by the carrier.

• Shipping charges are usually lower for these low-value packages.

• No formal entry is required on duty-free merchandise.

• You do not need to clear shipments personally.

All mail imports must have a U.S. Customs declaration attached to the outside of the package. It should accurately describe the contents and their value. Post offices throughout the world stock these declaration forms. Commercial shipments should also have a commercial invoice enclosed or attached.

A U.S. Customs officer prepares the entry form for mail imports valued at $2,000 or less. If the value exceeds $2,000, the addressee is notified to prepare and file a formal customs entry for it at the nearest customs port.

There are some exceptions to the conditions that apply to the $2,000 or less limit. Just about every commercial shipment of textiles, regardless of its value, requires you to make a formal entry. This even applies to any personal made-to-measure clothes you have ordered from overseas. Various other articles valued over $250 require formal entry, these include:

• Feathers and feather products

• Flowers and foliage, artificial or preserved

• Footwear

• Pillows and cushions

• Miscellaneous articles of plastics

• Miscellaneous articles of rubber

• Sports equipment, games, and toys

A CBP processing fee of $5 will be assessed on each item of dutiable mail for which a CBP officer prepares documentation. The postal carrier will collect this nominal fee on all dutiable or taxable mail, along with the duty owed. There is also a postal fee (in addition to prepaid postage) authorized by international postal conventions and agreements as partial reimbursement to the Postal Service for its extra work in clearing packages through CBP and delivering them.

2. Inspection

Before any merchandise is released, a port or district director can order an inspection of your consignments. Inspections are carried out by U.S. Customs officers under controlled conditions.
Inspection is necessary to determine:

• The customs value of the goods and its duty status.

• Whether the goods are correctly marked and labeled.

• Whether they are properly invoiced.

• Whether requirements of other government agencies have been met.

• Whether any prohibited goods are in the shipment.

• Whether the amount of goods is the same as on the invoice.

Packaging of goods
Careful packing and proper invoicing go hand-in-hand in speeding up the clearance of your goods through customs. Importing or exporting, make sure the invoice for goods is done in a systematic and clear manner:

• Show the exact quantity of each item of goods in each box, bale, case, or other package.

• Put marks and numbers on each package.

• Show those marks or numbers on your invoice opposite the itemization of goods contained in the package that bears those marks and numbers.

When packages contain goods of one kind only, or when the goods are imported in packages where the contents and values are uniform, the designation of packages for examination by customs purposes are simplified.

If the contents and values differ from package to package, the possibility of delay and confusion is increased. Sometimes, because of the kinds of goods or because of the unsystematic manner in which they are packed, the entire shipment must be examined.

Packing a combination of different types of goods makes it difficult for customs officers to determine the quantity of each type of product in an importation. Packing haphazardly can also lead to a variety of other complications in the entry process. No problem will arise, however, from the orderly packing of several different kinds of properly invoiced goods in a single package.

Commingling
If articles subject to different duty rates are packed together in such a way that customs officers cannot readily determine the quantity or value of each class of articles without physically separating the contents of any package, the combined articles will be subject to the highest rate of duty applicable to any part of the commingled lot, unless the consignee or his agent separates the merchandise under CBP supervision.

On some occasions, goods can be sent to a customs laboratory for analysis to determine their proper customs classification. Problems may also arise if U.S. Customs finds items during the examination that are not on the invoice. If U.S. Customs believes you omitted the merchandise deliberately with the intent to avoid duty, the merchandise can be seized.

You may receive a bill if your shipment is examined by CBP
In the course of normal operations, CBP does not charge for cargo examinations. However, there may still be costs involved for the importer. U.S. law provides for the right of the CBP to examine any shipment imported into the United States. It is important to know that you, the importer, must bear the cost of such cargo exams.

For example, if your shipment is selected for examination, it will be moved to a Centralized
Examination Station (CES) for the customs exam to take place. A CES is a privately operated facility where merchandise is made available to customs officers for physical examination. The
CES facility will unload your shipment from its shipping container and will reload it after the exam. The CES will bill you for their services. There are also costs associated with moving the cargo to and from the exam site, and with storage. Rates will vary across the country and the complete process may cost several hundred dollars.

3. Valuation and appraisement

All goods imported into the United States are subject to either duty or duty-free entry, depending on how they are classified by the U.S. Harmonized Tariff Schedule. When goods are liable for duty, they can be assessed at an ad valorem rate, at a specific rate, or at a compound rate (a little of each):

• An ad valorem rate, the most common, is a percentage of the value of the merchandise.

• A specific rate is a set amount per unit of weight or other quantity, such as eight cents per dozen.

• A compound rate is a combination of both an ad valorem rate and a specific rate, such as eight cents per dozen plus 4% ad valorem.

Free or favored duties?
Rates of duty on imports vary depending upon the country of origin. The vast majority of merchandise being imported into the United States comes from countries that have “Most Favored Nation” trade status. Goods from those countries pay the lowest rates.

Duty-free rates apply in many instances—for example, on certain imports from Mexico and
Canada. Free trade agreements between the United States and other nations also result in duty-free status being applied on specific goods.

User fees
The merchandise processing fee (MPF) is 0.21% ad valorem on formally-entered imported merchandise (generally entries valued over $2,000), subject to a minimum fee of $25 per entry and a maximum fee of $485 per entry.

On informal entries (those valued at less than $2,000), the MPFs are: $2 for automated entries, $6 for manual entries not prepared by CBP, and $9 for manual entries that are prepared by CBP. The harbor maintenance fee is an ad valorem fee assessed on port use associated with imports, admissions into foreign trades zones, domestic shipments, and passenger transportations. The fee is assessed only at ports that benefit from the expenditure of funds by the Army Corps of Engineers for maintaining and improving the port trade zones. The fee is 0.125% of the value of the cargo and is paid quarterly, except for imports, which are paid at the time of entry.

4. Liquidation

Liquidation is when the decision by U.S. Customs about the rate and amount of duty becomes final. You can appeal after the fact, though.

U.S. Customs officers review HTSUS classifications and valuations to check that the importer has submitted the correct data for the merchandise being imported. If the officers believe the paperwork is in order, then “the entry (of imported products) is liquidated as entered.”

If U.S. Customs determines that the importer has made some kind of mistake, then the entry cannot be liquidated. For example, officers might discover that the tariff classification is wrong or that the duty rate is too high. Yes, sometimes, U.S. Customs finds errors that actually work in the importer’s favor! Sometimes it’s the other way around.

If the error is in the importer’s favor, then the entry is liquidated accordingly and a refund is authorized. If a change is needed that results in a higher rate of duty, U.S. Customs notifies the importer. If the importer doesn’t reply, then the entry is liquidated according to the corrections made by U.S. Customs, and the importer is billed for the additional duty.

Even after liquidation, an importer can claim an adjustment or refund by filing a protest on Customs Form 19 (19 CFR 174), within 90 days after liquidation.

Country of origin, marks, and labels

 

U.S. trade laws require imported goods to have a mark that indicates the country of production. The mark must be easily seen, bear the name of the country in English, and be as permanent as possible. There are obviously some items that it would be impossible to mark (e.g. feathers, thread). In these instances, other requirements have to be met such as labeling any containers or packaging containing the merchandise. But basically, if an article can be marked or labeled, U.S. law requires it to be so.

If marking requirements are not met, a marking duty equal to 10% of the assessed customs value will be imposed, unless the goods are exported, destroyed, or properly marked under customs supervision.

Depending on the goods, merchandise that can be permanently marked is subject to different marking requirements. Knives and shears need to be die-stamped, engraved, or etched. There are specific marking requirements for parts of watches.

Textiles and clothing must meet a wide range of marking requirements. It’s not unusual these days to see a garment that has two or three labels. These are needed to meet import regulations. Depending on the item, labels may have to include all or some of the following: fiber content (for example, 80% cotton, 20% polyester), country of origin, laundering instructions, and a trademark or manufacturer’s name.

Quotas

 

Import quotas are designed to control the amount of various commodities that can be imported into the country during a specified period of time. They are often designed to protect home industries such as textile manufacture. All quotas are established by legislation and provided for in the Harmonized Tariff Schedule of the United States (HTSUS). There are two types of quotas: absolute and tariff-rate.

• Absolute quotas
  Absolute quotas restrict the amount of certain products that may enter the United States for consumption in a specific period, normally one year. When an absolute quota is filled, no further entries are allowed until the start of the next quota period. Some quotas relate to the amount of worldwide imports, while others are allocated to specific countries. Many absolute quotas get filled almost as soon as a new quota period opens. When quotas are not filled on the opening of a new period, a “first-come, first-served” basis is applied. Imports in excess of a specified quota can be placed in a foreign trade zone (FTZ) or entered into a bonded warehouse to await the opening of the next quota period.

• Tariff-rate quotas
  Tariff-rate quotas allow for a specified quantity of an imported product to be entered at reduced rates of duty during a quota period. The amount of a tariff-rate quota product you can import is not limited, but quantities entered in excess of the quota quantity for that period will be charged a higher rate of duty. U.S. Customs may require the deposit of estimated duties at the over-quota duty rates if it determines that a quota is almost filled. When this happens, U.S. Customs officers are authorized to make the required adjustments in the duty rates.

Commodities subject to import quotas

The list of products subject to import quotas is fairly extensive and even applies to some products from NAFTA countries. We have listed just a few to give you an idea of how wide a product range that quotas cover. Absolute or tariff-rate quotas are in place on:

• Anchovies, animal feed

• Brooms, beef

• Cheese, chili peppers, chocolate, cotton

• Cotton or man-made fiber wool apparel, wool apparel, fiber fabrics and made-ups, and cotton or man-made fiber yarns

• Dairy products

• Eggplants, ethyl alcohol

• Ice cream

• Olives, onions and shallots, orange juice

• Peanuts

• Satsumas

• Textile articles, tobacco, tomatoes, tuna

• Watermelons, wheat gluten

• Wire rod

Special category imports

 

The United States places restrictions or prohibitions on imports for several reasons. Some foreign-made products might not meet U.S. quality health and safety requirements. Other restrictions or prohibitions are designed to ensure that domestic animal or plant life is not adversely affected by foreign diseases.

There are some goods that are either strictly controlled or totally prohibited by law from being imported into the United States. Many of the conditions that apply to certain goods are over and above normal customs regulations. Various government laws are administered by other state agencies. U.S. Customs is responsible for enforcing these prohibitions and restrictions at ports. It’s not possible to list every item that is, or is likely to be, regulated or restricted, but the following provides a general idea of the wide range of products likely to be covered.

Arms and ammunition: These can only be imported when a license has been obtained from the Bureau of Alcohol, Tobacco, and Firearms.

Alcoholic drinks: An importer must obtain a basic permit from the Bureau of Alcohol, Tobacco, and Firearms, Department of the Treasury. Additionally, alcoholic beverages are subject to requirements of the Food and Drug Administration (FDA). Even a straw jacket on a bottle of wine would have to meet requirements set by the Department of Agriculture.

Foods, drugs, and cosmetics: Products of these types are regulated by the FDA under various laws. These laws prohibit the importation of articles that the FDA may deem on inspection to be adulterated, defective, unsafe, filthy, or produced in unsafe hygiene conditions. Goods that contain statements on the labeling that is false or misleading are also subject to prohibition as is any pharmaceutical that does not have prior approval from the FDA.

Toys: Toys and other children’s articles are not allowed entry into the United States if they fail to comply with regulations set by the Federal Hazardous Substances Act. Toys designed for children under 3 must not have small parts that present a choking hazard. Regulations also allow for tests used to assess sharp edges and points on toys.

Fruit and vegetables: A wide range of agricultural products has to comply with specific import requirements. Commodities like tomatoes, peppers, oranges, and limes must meet requirements relating to size and quality. The Food Safety and Inspection Service examines fruits and vegetables on arrival, and issues certificates of compliance for import.

Plants and plant products: These are subject to the regulations of the Department of Agriculture and can be restricted or prohibited. Import permits are often required. Items covered include seeds, bulbs, nursery stock, roots, cut flowers, and even some cereals. Any plant that has been designated as endangered is also likely to require a permit.

Televisions, radios, and tape recorders: All radio frequency devices are subject to the emission standards of the Federal Communications Commission. Imports of such products may need to have a declaration stating that the goods are in conformity with the FCC’s requirements.

Reverse Importing = Exporting

 

One way to increase your profits in importing is to look for export opportunities that lend themselves to your travels. Steve Linder did this in the jewelry business, bringing jewelry parts (known as findings) into Mexico on the way in.

“You’ll need to identify a need and bring samples in with you, along with a price list and see what folks are looking for,” says Steve.

“I brought ear wires, pin backs, tie bar backs, etc. I was able to make a nice profit on the way into Mexico, effectively doubling my earnings on the way back out. As long as you are going there, you might as well profit in both directions.”

Export possibilities

So, should you import, export, or both? Obviously you will make a lot more money by playing both sides of the field, but most people start out by importing. Exporting goods overseas requires far more in-depth knowledge. Each country will have its own laws, regulations, import tariffs, etc.

But here’s something to think about. Say you want to start importing and you really like the idea of those Latvian sweaters with unusual designs. In fact, you could add to the range with Icelandic sweaters…Norwegian sweaters…sweaters from the Aran Islands and also the Faroe Islands.

Unfortunately these are all European countries…and European products aren’t too cheap at the moment. What you could do is export the idea of patterned sweaters. Take the Latvian designs down to Peru or another Central or South American country—and find yourself some local knitters. You’ll get them made at a fraction of the European price. The sweaters will have to be labeled “Made in Peru” (or wherever), but there’s nothing to stop you marketing your knitwear collection as Latvian-style or Icelandic-style.

Of course, you may already have a thriving business in the United States and are thinking about expanding your market. The U.S. Commercial Service tracks overseas trade and keeps tabs on the growth areas where money is to be made importing U.S. goods. Although individual traders invariably have to find their own way to operate in the big wide world, there is plenty of U.S. government support for companies that are considering exporting.

But even for individuals, it’s still worth looking at the possibilities offered by the export side of international trade. When you are visiting countries to buy goods to import into the U.S., you will be making contacts. Talk with them and ask them what kind of North American-made products they would consider buying.

Exporting: The nuts and bolts

 

Maybe you think you can skip this section. After all, you’ve only just started out importing rocking chairs into the U.S. from Nicaragua. Your website is up and running, and you’re getting a fair few orders in. What the heck do you need to know about exporting procedures?

Then you get this e-mail from Sven in Sweden. He wants four of the rocking chairs you’ve been importing. But you know nothing about exporting. Will you ignore him and lose a sale?

When sending goods to Sven or anyone outside the United States, you need to know that most countries have laws and regulations about goods going into their territory. So contact Sven’s customs agency to ensure you can ship to Sweden. It is unlikely that there will be a problem with crafts, but foodstuffs, vitamins, and health care products may be prohibited.

In addition, the U.S. might have something to say about your exports. Commodities sold for export are subject to the enforcement powers of the U.S. Customs Service and other U.S. government agencies. That goes for cars and goods with potential military applications, including some electronics and software. They must be cleared through U.S. Customs before they can go overseas. And, if you export goods worth more than $2,500, you have to follow formal export procedures.

As an exporter—that’s anyone who sells and ships a product outside of a country—you’ll need to be aware of all the various regulations, standards, and certification requirements imposed by both the U.S. and foreign governments that pertain to your product. There’s a lot to know about. However, obtaining this information doesn’t necessarily have to be difficult and time-consuming.

Various industry trade associations and American Chambers of Commerce overseas can provide a wealth of information on foreign export regulations, tariffs, taxes, standards, and certifications that affect their particular industry/country. Visit the American Chamber of Commerce at www.uschamber.com. You will also find a great deal of information on government websites. The most comprehensive is the U.S. Commercial Service at http://trade.gov/cs/.

Do you need a special license to export?

 

The short answer is no—not unless you’ve figured a way to turn your rocking chairs into guided nuclear missiles! Most export transactions don’t require specific approval from the U.S. government. However, there are certain products where an “export license” will be needed. An export license is a U.S. Government document required for “dual use” exports—commercial items which could have military applications—or exports to embargoed countries.

Although relatively few exports require export licenses, they are required in situations involving national security, foreign policy, short-supply, nuclear nonproliferation, missile technology, chemical and biological weapons, regional stability, crime control, or terrorist concerns. License requirements are dependent upon an item’s technical characteristics, the destination, the end use, and also the end user. The Bureau of Industry and Security’s website at www.bis.doc.gov has more information on that matter.

Export information sources

 

You will also want to source buyers for your products. Along with the U.S. Commercial
Service’s website, you’ll find plenty of useful information at http://trade.gov/cs/.

Another good source is the international trade import/export portal at www.fita.org—the official website of the Federation of International Trade Associations (FITA). You’ll find news, trade events, and links to 8,000 international trade-related websites. FITA’s site includes directories of manufacturers, distributors, importers, and exporters.

The Centre for International Trade is a member organization with objectives to improve, facilitate, and expand international trade. Its 3,500 members come from every corner of the world and include embassies, government agencies, trade associations, companies, firms, and individuals. The Centre’s site at www.centretrade.com includes:

• Information on national rules and regulations, procedures, tariffs, industry news, and events.

• Trade opportunities from government agencies, manufacturers, importers, exporters, and traders.

• Transportation information including ocean freight, air freight, trucking, warehousing, and customs brokers.

Export Institute USA at www.exportusa.com has links to world trade centers, international shippers, banks, market research, and home-business organizations. Its training center also offers online classes in exporting.

Government support for exporters

 

The U.S. Commercial Service promotes the export of goods and services from the United States. As an agency of the Department of Commerce, it helps U.S. companies, particularly small and medium-sized businesses, make sales in international markets. You can visit its website at www.export.gov.

Contacts and Resources

International Living resources

For more coverage on all the countries mentioned in this Import-Export Blueprint, and many others, make sure you take a look at our website, www.InternationalLiving.com, where you’ll find a wealth of information, contacts and news from around the world.

Want to meet our experts in person? Check our Events schedule and see where they’ll be next. Every year we hold a number of events around the world, where we gather together all our experts so they can share with you, face-to-face, their invaluable insight and experience in living, investing, retiring, and moving overseas. Check out the schedule at www.internationalliving.com/Events.

You can also find us on Facebook. We currently have more than 100,000 followers…and counting. This is a great way to get in touch with other IL readers and all our editors. Plus it’s full of fun and interesting photos, videos and much more. Find us at www.facebook.com/International.Living.

If you’d like to learn more about flexible, work-anywhere ways you can pay for your life overseas, sign up for Fund Your Life Overseas, a free e-letter from International Living. You’ll hear from us three times a week, telling you about ways to earn income that lets you live anywhere, travel anytime…and give you the funds to make your overseas dream real. Sign up here: www1.internationalliving.com/fund-your-life-overseas/Report/import-export.html.

Country-specific resources

 

Ecuador

 

• FedExpor; website: www.fedexpor.com. From wedding cards to disposable diapers, this website has a database where you can source products. There are also links to Ecuadorian exporters.

• www.ecuador.com: This Ecuadorian portal has a “business center” section with trade board and business links.

• The American Chamber of Commerce in Ecuador; website: www.ecamcham.com. This is another great resource for information about doing business in the country.

• Ecuador Exports.com; website: www.ecuadorexports.com.

• Quito Chamber of Commerce, (Cámara de Comercio de Quito), Av. Republica y Amazonas, Edf. De las Camaras, Pisos 5 y 6 Quito, Ecuador; tel. +593 (2) 443-787; fax +593 (2) 435-862; e-mail: ccq@ccq.org.ec; website: www.ccq.org.ec.

• Quito Ecuadorian-American Chamber of Commerce (Cámara de Comercio Ecuatoriano-Americana de Quito), Av. 6 de Diciembre y La Nina, Edf. Multicentro, Piso 4 Quito, Ecuador Executive Director: Mr. Roque Mino; tel. +593 (2) 507-450; +593 (2) 507-451 or +593 (2) 507-452; fax +593 (2) 504-571; e-mail: info@ecamcham.com; website: www.ecamcham.com.

• Quito Ecuadorian-Canadian Chamber of Commerce, Inglaterra 1373 y Av. Amazonas Edificio Centro Ejecutivo, Piso 2, Oficina 201 Quito, Ecuador; tel. +593 (2) 246-8598; e-mail: camara.canadiense@ecucanchamber.org; website: www.ecucanchamber.org.

• Guayaquil Chamber of Commerce (Cámara de Comercio de Guayaquil), Cdla. Kennedy Norte, Av. F. de Orellana y Miguel H. Alcivar “Centro Empresarial Las Cámaras”, Piso 3 Guayaquil, Ecuador; tel. +593 (4) 682-771 or +593 (4) 682-779; fax +593 (4) 682-725; e-mail: presidencia@lacamara.org; website: www.LaCamara.org.

• Guayaquil Ecuadorian-American Chamber of Commerce (Cámara de Comercio Ecuatoriano-Americana de Guayaquil) Cdla. Kennedy Norte, Avda. F. De Orellana, Frente a SITV Edf. Centrum, Piso 6, Of. 5 Guayaquil, Ecuador; tel. +593 (4) 269-3470; fax +593 (4) 269-3465; website: www.amchamecuador.org.

• Cuenca Chamber of Commerce (Cámara de Comercio de Cuenca), Avs. Federico Malo 1-90 y 12 de Abril Edf. de las Camaras, Piso 2, Cuenca; tel. +593 (7) 284-2772; website: http://cccuenca.com.ec/.

• Cuenca Ecuadorian-American Chamber of Commerce (Cámara de Comercio Ecuatoriano-Americana, Seccional Cuenca), Ave. Octavio Chacon 1-55 Centro Comercial del Parque Industrial, Piso 2, Of. 302 Cuenca; tel. +593 (7) 863-365 or +593 (7) 861-873; fax +593 (7) 806-512; e-mail: cceasecu@etapa.com.ec.

• Manta Ecuadorian-American Chamber of Commerce (Cámara Ecuatoriano-Americana de Comercio, Seccional de Manta), Avenida 2da., entre Calle 11 y 12 Edf. Banco del Pichincha, Piso 3, Of. 303, Manta; telefax: +593 (5) 627-770 or +593 (5) 627-386; fax +593 (5) 627-770; e-mail: camecuatoriana@porta.net.

• Loja Ecuadorian-American Chamber of Commerce (Cámara Ecuatoriano-Americana de Comercio, Seccional de Loja) Sucre 0949, entre Rocafuerte y M. Riofrio Edf. Ministerio de Finanzas, Piso 3 Loja, Ecuador Executive Director: Econ. Raul Miranda D.; tel. +593 (7) 571-998 or +593 (7) 576-261; fax +593 (7) 571-998.

 

Mexico

• The Mexico Information Center; website: www.mexico-trade.com. This is an easy-to-use portal with links to a directory of Mexico exporters, freight forwarders, etc.

• The American Chamber of Commerce in Mexico; website: www.amcham.com.mx.

• United States-Mexico Chamber of Commerce works to promote trade, investment, and joint ventures on both sides of the border. For more information, contact: United States-Mexico Chamber of Commerce, website: www.usmcoc.org.

 

Nicaragua

• American Chamber of Commerce in Nicaragua: website: www.amcham.org.ni.

• Centro de Exportaciones e Inversiones; website: www.cei.org.ni. This website has English language sections on trade and investment.

• ProNicaragua; website: www.pronicaragua.org. This is the government investment promotion agency. Its website covers investment opportunities and explains more about Law 306.

• The Nicaraguan Consulate; website: www.consuladodenicaragua.com. Has plenty of information on exports, trade, etc.

 

Thailand

• To help you with exporting from Thailand, a number of official government websites can be of help. One is the country’s main official site, www.thailand.com. In the “Exports” section, you’ll find a trade directory with a wide-ranging coverage of Thai products and suppliers for global trade. There’s also information about trade shows, export services, and laws and regulations. For example, it’s not permitted to export antique Buddhas from the country.

• Alibaba.com; website: www.alibaba.com. A good resource for finding Thai manufacturers.

• American Chamber of Commerce in Thailand; website: www.amchamthailand.com.

• Asia Trading Post; website: www.asiatradingonline.com. A directory of manufacturers, exporters, and other trading sources including shippers.

• Northern Thailand; website: www.northernthailand.com. This website provides links to businesses in Chiang Mai and the north of the country as well as shippers.

• Thai Trade Point; website: www.thaitradepoint.com. Companies listed here are involved in both buying and selling Asian handicrafts.

Import-Export resources

• Alibaba.com; website: www.alibaba.com.

• Asian Products.com; website: www.asianproducts.com.

• FITA; website: www.fita.org. The official website of the Federation of International Trade Associations (FITA). You’ll find B2B leads, news, trade events, and links to 8,000 international trade-related websites. FITA’s site includes directories of manufacturers, distributors, importers, and exporters.

• Doing Business; website: www.doingbusiness.org.

• Export Institute USA; website: www.exportusa.com. This website has links to world trade centers, international shippers, banks, market research, and home-business organizations. Its training center also offers online classes in exporting.

• National Customs Brokers and Forwarders Association of America (NCBFAA); website: www.ncbfaa.org.

 

• TSNN (Trade Show News Network);
  

  Introduction

  Would you like to be a modern-day “treasure hunter”? Did you know that your vacations could be a source of income? Are you always looking for an excuse to travel, a reason to head out on that next adventure?

  Imagine going to Thailand for two weeks and spending the mornings wandering through the markets, visiting craft villages, hunting for items folks at home would like. Then in the afternoons, you lie on the beach, take a tour, hit the spa, enjoy a couple drinks as you watch the sun go down.

  Your extra suitcase or two full of “souvenirs” would come home with you…and more than pay for your trip. You see, the trinkets, jewelry, silk, and such that go for pennies on the dollar in Thailand can be sold for many times that much back home.

  But your trip needn’t be to Thailand. It could be anywhere in the world…Mexico, Argentina, Cambodia, India, Costa Rica, Tibet, Chile, Nicaragua, Bali, Kenya, Greece…anywhere you’d care to travel or spend a few months a year, even live full-time.

  That is what life as an import-exporter could provide you…A life full of adventure and fun, full of travel and excitement. You could indulge your own sense of adventure and travel whenever the urge strikes. And you could easily start this as a part-time endeavor from right there at home and have a flexible, portable income.

  In this special Import-Export Blueprint: How to Fund a Travel-Rich Life Anywhere in the World, we’re going to share with you the tips, tricks, secrets, and all the information you’ll need to start up your very own Import-Export business.

  We’ve enlisted the help of two accomplished import-exporters to explain just how easy it can be to start in the world of Import-Export. You’ll learn:

  • The four things to consider when you’re choosing your products so you can make sure you pick items that will sell well…
  • The number one thing to remember when you’re shopping in a market (because if you don’t, you’ll be left holding stuff you’re not happy with)…
  • How to photograph your goods for maximum benefit…and a higher price…
  • What countries to look for products in…our favorite places around the globe and some products that could help you start your business…
  • And much, much more…

  In this easy to navigate Import-Export Blueprint website, you’ll find videos and reports that will help put you on the road to a flexible income that can go with you anywhere you want to be…that allows you to travel and explore…that essentially pays you to do something you’d do anyway, for free.

  To get your Import-Export adventure started, just click on the navigation bar to the right, and soon you could be traveling the world in search of your very own treasure.

  Happy treasure hunting.

  Sincerely,

  Jackie Flynn
  Publisher, International Living

  Welcome to the World of Import-Export

  What is Import-Export?

  When it comes down to it, treasure hunting is what Import-Export is all about. Buying your treasures low, selling them high. It can be a fun way to fund your vacations…a part-time kitchen table enterprise…or a full-time business. (Go into it full-time and you can make all your travels tax-deductible.)

  The Import-Export business isn’t just an escape from the 9-to-5 routine—it’s a well-proven way to start a new and very rewarding life. Just imagine having the kind of dream job that pays you to explore Thailand or Mexico…Ecuador or Morocco.

  It can provide you with a decent living—or an extremely handsome living. Some people operate their businesses from the U.S., others from overseas.

  Import-Export is easily defined. When you think about it, the concept is laughably simple. You search for the kind of goods people want and then sell them at a profit. Basically, your job description is to locate these goods, find the buyers who want them, then arrange to get goods and buyers together. If you can keep your expenses low and your sales high, then you’ll be in the money. It’s not a whole lot more complicated than that.

  If your base is the United States and you bring in leather goods from Ecuador, you’re an importer. If your base is Ecuador and you ship the leather from there to the U.S., you’re an exporter. You’re also an exporter if you’re sending U.S. goods from the States to Ecuador—or anywhere else in the world.

  Eye-catching things and curiosities will always sell. However, not everybody has the time or the money to travel to far-flung corners of the world and shop for treasures. If something appeals to you, chances are that it will also appeal to many shoppers back home.

  Consider it for a moment. What kind of things do you buy when you travel? (And we all buy something!) Looking around our own homes, we can see we’re doing a great job at helping out global trade.

  Chunky silver jewelry, a display case of semi-precious stones, and a wrought-ironwork sun from Mexico…a black leather jacket and a witch puppet with flashing eyes and a horrible cackle from Poland…lavender soap and a replica gargoyle from France…Bohemia crystal goblets and a crystal globe from the Czech Republic…a voodoo doll from New Orleans…amber beads from Latvia…cushions from Belgium…a stone Sheila Na Gig figurine from Northern Ireland…a wooden bottle-stopper with a dangly green frog from Italy…brightly colored table mats from Martinique in the Caribbean.

  
  Bohemia crystal and amber beads are just some of the products that are perfect
  for an Import-Export business.
  ©Dreamstime/Andrei Tselichtchev & iStcokphoto.com/Wuka

  Now think about the stores back home that you’ve seen stocked with unusual merchandise from around the world. Pottery from Nicaragua…marquetry chess sets, soft kid-leather handbags, and carved cedar-wood screens from Morocco…Panamanian hammocks…curious Indian god statues with eight arms and elephants’ heads.

  All these unique goods come from somewhere overseas—and someone is supplying them. Why shouldn’t that someone be you?

  Global trade has been described as the hot new enterprise of the 21st century. In reality, it’s not a new industry at all. Not when you think about the ancient caravans of the desert and camels bearing cargoes of salt, silk, and exotic spices. The Phoenicians exported their precious purple dye all across the Roman Empire. And then there was Captain Bligh and his South Seas breadfruits…Sir Walter Raleigh and tobacco. When it comes to trade, the world actually went global a long, long time ago.

  Many people who have started up an Import-Export business are involved with merchandise that is perhaps best described as “ethnographica.” Fascinating though these items are, curiosity merchandise isn’t your only option. You could concentrate on importing winter roses from Ecuador, medical scrub suits from Mexico, or even terry-towel bedroom slippers from Hong Kong.

  Just about anything, in fact, that you can think of.

  The benefits of owning an Import-Export business

  The benefits of owning an Import-Export business are substantial:

  1. A recession-proof business
  Import-Export is about as close to a recession-proof business as you can get. Despite conflicts, depressions, or the toppling of governments, shoppers will always shop. And remember, Import-Export is global. Circumstances like the falling dollar and soaring euro don’t necessarily have to impact on your business. Maybe those leather handbags from Italy are now looking way overpriced in dollar terms. Well, if one part of the world isn’t likely to result in profitable trade, you simply go find another country or a region that is. It’s a big wide world out there…and one heck of a lot of countries make leather handbags. And a number of these countries have currencies that are pegged to the dollar.

  World markets—and currencies—are in a constant state of flux. Conditions change from year to year. A country from which it made sense to import goods one day might offer better export prospects the next. Maybe leather goods from Italy don’t make sense right now. But U.S.-made goods are currently cheap for Europeans. What homemade products could you be exporting to Italy?

  2. You are the boss
  Instead of laboring away to make someone else rich, you’ll be in charge of your own destiny. The business is yours—and unless you have a partner, the only boss is you. And once the business is well-established, you could be on target to make more money than you ever dreamed possible. But it shouldn’t just be about money—it should be about the fun as well. All our contacts get tremendous fun and satisfaction out of what they’re doing.

  An Import-Export business can give you more freedom, more wealth, and more security than your regular 9-to-5 life.

  3. Minimal start-up requirements
  You can start off small and become as large an enterprise as you can handle. Your office can be at home, or anyplace else you choose. If you’re importing from overseas, you can sell to store buyers, or you can sell on your own terms at outlets such as craft fairs. You could open a small store or gallery. If you wish, you can run your business entirely as a web-based enterprise.

  Much depends on what kind of products you intend to sell, but in many cases you do not need a license to import goods into the United States. And although most importers opt to use a Customs broker for the convenience, you do not necessarily have to hire one to clear your goods.

  With a small enterprise, you don’t need to employ staff. And, you don’t even need a warehouse or storage space. It isn’t necessary to stockpile a whole ton of inventory—unless you want to.

  And, you certainly don’t need a college degree or years of business experience to succeed. We know of one lady who transformed herself from a welder into a fashion batik importer.

  4. A career that’s open to all
  It doesn’t matter at all if you’re male or female…old or young. In Import-Export, the route to success is personality, hard work, and savvy business sense.

  5. Your business can be as big or as small as you desire
  The great thing about an Import-Export business is that it can be as small or as large as you want it to be. Maybe you just want to be able to fund some trips overseas during the harsh North American winter? In that case, you can just “suitcase import” (we’ll talk more about this later) and sell your products to family, friends, and some stores in your locality.

  Later in this kit you’ll hear from two of our Import-Export experts. Reece Guth runs a business importing pots from Nicaragua. Reece has built up his enterprise over the last number of years and now has a successful and busy career. Our other expert, Alison Talbert, has a much smaller business, selling artisan goods from Ecuador, which she runs from home. Alison is happy to keep her business small and home-based for now, as it fits in perfectly with her family life.

  Or maybe you want this to be a new, full-time career? In that case, you can start suitcase importing and eventually build up to dealing with containers, shipping agents, your own website and maybe even your own store eventually.

  But whatever size you decide you want your Import-Export business to be, you’ll still have the opportunity to travel the world, meet new people, and earn some money.

  6. Giving back to a community
  An Import-Export business can help the community in which you buy your products. By buying products from a family-run business in Ecuador for example, you are helping to stimulate that local economy. And for most low-cost living places, which are also the places you are most likely to be buying your products for your Import-Export business, stimulating the economy is very important.

  Introducing our Import-Export Experts

   

  Throughout this Import-Export Blueprint you’ll hear from people that we, here at International Living, consider to be our Import-Export gurus. Reece Guth and Alison Talbert, in particular, know what they are talking about when it comes to this business.

  Reece imports pottery from Nicaragua and now sells them online and in various stores throughout the U.S. Alison imports artisan goods, like scarves, jewelry, art, and clothes from Ecuador and sells them from her home and on her website.

  They have both agreed to share with you their expert advice. You’ll hear how they got started, and they’ll provide some valuable advice for setting up and running your own business, no matter what you decide to import and export.

  In the following videos, Reece and Alison explain how they got started in the Import-Export business.

  Passionate about pots: Reece Guth’s story

  Something as simple as “wanting a tan in winter” was how Reece Guth came to found Mayta Clay, a Maryland company importing ceramics from Nicaragua. This guy knows his pots—he started his working life as a potter. As he puts it “I lived, breathed, and dreamed pottery.” Throughout the 80s and early 90s, Reece sold his work at Baltimore art shows and galleries, eventually opening a pottery store. In 1992 a friend convinced him to use his experience to help the city’s youth, and he became director of an experimental art and education program.

  This led to a company hiring him to photograph a project on Nicaragua’s Pacific Coast. “I wanted a tan in winter; it was a perfect situation,” says Reece. “Only I didn’t expect to fall in love with the country, its people, and its pottery! When my liaison found I had an interest in ceramics, she insisted on driving me two hours to a quiet little village, nestled in the hills between two sleeping volcanoes.”

  The art of pottery goes back many thousands of years in the “New World.” Artisans demonstrate an astonishing range of creative skills, as Reece discovered in the village of San Juan de Oriente. He found potters using designs and techniques that reach way back through the centuries. They painstakingly make one delicate piece at a time, drying it in the tropical sun.

  “The cobblestone streets and dirt paths lined with pastel-colored adobe houses made walking around the town feel like stepping through an unseen door into the past. Like a treasure hunter, I somehow felt that a determined look beyond the surface of this dusty pueblo would yield some hidden gems. I was not disappointed, the pottery and talent I found was truly overwhelming.”

  Reece decided it would be great to work with these talented artists and took the first steps to bring their pottery back to America. However, of paramount importance to him was that the venture be sustainable and worthwhile for all concerned.

   

  One trip to Ecuador changed everything:
  Alison Talbert’s story

  The worldwide economic downturn is what prompted Alison Talbert to set up her Import-Export business. When the economy tanked Alison says her and her husband’s income became uncertain (they owned their own business), so Alison decided that she needed to do something about it. She says she always knew that her new career path would involve travel. “After college, my first “real” job was with American Airlines,” says Alison. “From there I spent years as a corporate and leisure travel agent. It’s definitely in my blood! But how could I combine my need to travel, my love of fashion and home accessories, and my desire to make money?”

  She spent the next year or so in a constant state of frustration…ready to go but with no idea where to go. “I did all kinds of oddball things…attending out-of-town business seminars (keep in mind, I had no business) and “networking”, she says. “Imagine the conversations: “So what do you do?” they would ask. “Me? Oh nothing really. I’m just looking.” I was so ready but with absolutely no direction.”

  Then, with one decision, Alison’s life was changed forever. She saw an article about an Import-Export class in Ecuador and decided to go on the trip. “ Where is Ecuador ? Honestly, I didn’t know. I just found the thought of attending the class completely compelling.”

  The article touted Ecuador’s artisanal products, its healthy, delicious foods, its beautiful landscape, its friendly people, and the most inviting of all…cheap massages. “Given what was going on in my life at the time”, Alison says, “it all sounded good to me. However, looking back, I realize the class represented so much more. It offered me hope that I could find meaning and create income doing something I love and am passionate about.”

  And so Alison’s business, Income from Ecuador (website: http://incomefromecuador.com), was born. She now runs a successful Import-Export business selling products she finds on her trips to Ecuador to family and friends at home.

  “Honestly I have to pinch myself sometimes. I regularly travel to exotic places in Ecuador, hunting down beautiful, unique finds, and I love sharing everything I learn. I’m now designing products and watching my visions come to life.”

  As well as selling the products she finds in Ecuador, Alison has expanded her business and is now also teaching others to do exactly what she’s done. She says, “One of the best parts of my business is taking other people to Ecuador to experience the thrill of the hunt and the fun and excitement that come with each new discovery.”

  “The response to the merchandise I offer has been amazing! People love my stuff, and I am having a total blast.”

  Fair trade Import-Export   by Roger L. Gee Most of our friends and relatives think we’re crazy. We travel a lot and go places they wouldn’t dare to go. We have a lifestyle that works for us, but not necessarily for everyone. Last winter we traveled to Honduras and Guatemala. The winter before, we spent six weeks in Jamaica, mixing our profitable business with fun in the sun. With our Import-Export business, our working year ends in December and doesn’t kick into gear again until March. It all started nine years ago when my partner, Nancy, acquired a special piece of pottery at an auction. She did some research online and sourced the pottery back to the remote village of Mata Ortiz, Mexico. Then she took off in her Subaru and traveled the 3,000 miles from the States to the village. Here, she bought as much pottery as she could load in her car, and upon her return to the U.S., sold most of her newfound art to friends, relatives, and associates. They wanted more. Although she still had her day job as a psychotherapist, her new importing business was beginning to take off. This is where I entered the picture. I had recently returned home to northern Idaho after three years living my dream of sailing down the Sea of Cortez and along the mainland of Mexico. It was a perfect match. We both love Mexico and we were more than ready for second careers. Through our new business, Singing Shaman Traders (website: www.singingshamantraders.com), we’ve been able to make at least three buying trips a year. In Mexico, we buy pottery, baskets, and silver. In Jamaica, we went to the source and had baskets made for us. In Guatemala we bought scarves directly from the weavers. In Honduras we purchased sea glass jewelry, dolls, bark art, and baskets. In Vietnam and Thailand, we are having silver jewelry and silk scarves made for us, but have yet to visit. Nancy and Roger buy products like Tarahumara baskets and wood carvings from Mexico.©iStockPhoto.com/Alan Tobey The learning curve to becoming an importer is steep at first. The amount of “official” paperwork involving U.S. Customs itself is daunting. Mind you, because of the NAFTA agreement between the U.S. and Mexico, importing is duty-free. Nevertheless, we still have to hire a broker to get us and our goods through the border and back into the U.S. with a minimum of hassle. Once on the Mexican side of the fence, however, there are few rules besides the usual—visa and car permits. The fun part of the business for us is the shopping. We meet the artists and buy their handmade indigenous crafts, thereby helping them make a sustainable living at a fair, working wage. This is what we value most. Our best quality products are Mata Ortiz pottery and Mexican silver jewelry, which are also the most popular items with our customers. Our best mark-up products are the Tarahumara baskets and wood carvings (also from Mexico). Our silk scarves from Vietnam are of high quality and have a good mark-up. Fair trade, simply defined Buying fair trade takes out the middlemen usually associated with importing foreign goods, that amount instead going directly to the producers. Although we are members of the Fair Trade Federation (www.fairtradefederation.org), it’s only one of many global fair trade organizations, all of which share the same goal of working with impoverished producers in order to help them move toward economic self-sufficiency, maintain their cultural identity, and achieve self-empowerment as artists.

  Getting Started in the Import-Export Business

  Getting started in the Import-Export business can be as simple as bringing items home from your vacation to Mexico, Panama, Italy…anywhere in the world. We’ve been overseas and seen items that we think people at home would like…a pretty silver necklace from Mexico, a colorful bag in a market in Ecuador, hand-woven baskets from Panama. Many people who start in the Import-Export business start out small. As you’ve already heard from Reece Guth, he started by bringing four pots home from a trip to Nicaragua. He now owns a thriving business selling those same pots in the U.S. Alison Talbert did the same, bringing a few items home from Ecuador in her suitcase.

  In this section of Import-Export Blueprint, we’ll talk about getting started in the Import-Export business. The first, and most important, thing you’ll need to do is decide what product or products you are going to deal with. How do you decide what is it you’ll import or export? How will you know if a product will sell?

  When starting out in this business, it’s a good idea to do some suitcase importing first. What is suitcase importing? Well, quite simply, it’s where you travel to your country of choice, for example Ecuador, find the products you would like to sell back home, buy them, and put them in your suitcase and bring them home. It’s a kind of trial run…and a great excuse to organize a trip to your chosen country.

  We’ll look at what you can learn from suitcase importing and give you some tips on what you’ll need for that first trip.

  Choosing your product

   

  Your first priority when starting in the Import-Export business will be to choose your product. With so much out there, it can be difficult to decide what you want to import/export. Of course, you don’t need to limit yourself to just one product, but it is a good idea to do some research before you make your final decision.

  “No matter what the merchandise, there is one thing all retailers have in common: the search. Our businesses live and die based on our ability to find products and vendors that make us stand out from the store next door. The search leads some of us to local artisans, others to national gift shows—and a growing number of us to hop on planes and search the world.” So says Thompson Lange, seasoned global traveler and importer for his Californian furniture store, Homescapes Carmel (website: www.homescapescarmel.com ).

  Whether you decide to do your Import-Export business on a small scale and just want it to pay for your vacations or want to build your own Import-Export empire, choosing the right product is one of the big keys to success in this business. Even if you already have an idea of what you want to sell, it’s still best to keep an open mind.

  Doing your homework is imperative. Daydreaming about discovering a brand-new product that will somehow result in stratospheric sales either at home or abroad is all very well—but the chances of stumbling across something like the Rubik’s Cube are pretty remote.

  First make sure you can, by law, easily import or export a product. Certainly in the U.S., medical supplies, foodstuffs and beverages (both alcoholic and non-alcoholic) are subject to so many restrictions that importing them is best left to the experts.

  Each country has its own list of restricted products. For example, many European countries restrict the trade of certain types of foods, seeds, and plants. Thailand does not allow the export of antique Buddha images.

  Next, what you should ideally aim for is a product that has little competition. For example, are American consumers already drowning under endless waves of Mexican sarapes (colorful shawls) and those multicolored ceramic suns with smiley faces? You can buy these ceramic suns in Mexico for as little as $10—and maybe sell them back home for $30 to $40. Like sarapes, ceramic suns are now pretty commonplace. Can the market take any more—or is it already far too overcrowded with these kinds of items?

  That said, consumers also hanker for items that aren’t always one of a kind. Blue Abele, who opened a store on Roatan, Honduras doesn’t spurn the unusual. But she’s also making a good profit on some fairly easy-to-source finds.

  For example:

  • Hand-blown Margarita glasses from Mexico: purchased for $2. Sold for $9 to $12.
  • Hand-blown shot glasses from Mexico: purchased for $0.50. Sold for $5.
  • Hammock chairs from Guatemala: purchased for $15. Sold for $80.
  • Small animal carvings of wood, stone, and tagua from Ecuador: purchased for $0.80 to $1. Sold for $10 to $12.

  Remember, too, that consumers may harbor negative attitudes about certain countries and products. Maybe your idea of Sweden is of a clean, environmentally-friendly country that produces quality, reliable products. Unfortunately your target customer might just as easily perceive Sweden as being a nest of pinko socialists. “Buy products from a country intent on maintaining a welfare state? Never in a million years!’’

  Is (almost) smoke-free California or New York the best market for those meerschaum pipes you’ve got your eye on? As for erotic Indian statues—well, they might not really go down a storm in the Bible Belt.

  4 things to consider when finding your product overseas Think about the products in a particular place. Look in the native markets and the local stores. Be observant…you never know what you might find or what ideas you may come up with. Think about the costs and the way products are prepared in that country. You may be able to help producers manufacture their products more efficiently. Think about who is going to buy your product. In what unique place could you sell your product to ensure that you get maximum profit and who are the people who will want to buy your product. Think about where you will find those people who want to buy your product. When you do these four things, anywhere in the world that you go is a place where you can export products.

  Look at your own interests and background

   

  If you’re not sure of your product, perhaps the best place to begin is by looking at your own knowledge, interests, and career background.

  If you have a working knowledge of the electronics industry, you might want to consider small electrical goods. You can never pass a jewelry store without buying something? How about looking at the possibility of importing cultured pearls from Southeast Asia? You’re a keen Country and Western fan? Well, many people in Ireland enjoy Country and Western music nights in pubs. So what else might they enjoy buying to make their experience a bit more authentic—clothes, hats, or boots?

  And here’s another thing to consider. You don’t have to just export items from the United States. Are your profits likely to be greater if you export some of these items from, say, Mexico?

  Goethite…cerusite…molybdenite…arsenopyrite. If you’re a rock hound, those names may have quickened your pulse. Rock and mineral fairs abound throughout the United States. Obviously you’ll make the most profit if you go and find these rocks and minerals for yourself. But it would be pretty difficult to scour everywhere in the world.

  Ever considered importing minerals from the Czech Republic? Numerous chunks of minerals are cheaply priced through www.rockshop.cz. This company’s minerals aren’t only from the Czech and Slovak Republics—they’re from all over the world, including places you might find difficult to get to yourself. All priced under $20, thumbnail specimens include a black tourmaline crystal from Pakistan, amethyst from Kazakhstan, and a mixed quartz, wolframite, and fluorite specimen from China.

  A wholesale lot of 11 pieces of Aragonite specimens from the Czech Republic (some with crystals on the back, and with a total weight of 440gm) is $50. To get dealer prices you have to register and provide your company details—also total orders must be above $150.

  Rockshop provides shipping by registered airmail because “ it is a very reliable and cost affordable method. ” They go on to say: “We are often asked to offer other couriers as UPS, DHL, etc. We would be also very glad to offer such services, but rates from our locations are terribly expensive”

  So although you may have to wait a few extra days for your stones to arrive, your delivery charges will be significantly cheaper.

  For more information, contact RockShop, David & Eva Kalat, PO Box 152, CZ-100 00, Prague 10, Czech Republic; e-mail: info@rockshop.cz; website: www.rockshop.cz.

  Importing the right product: Seven things that
  can help you identify your perfect product

   

  • Identify marketable items made overseas and not previously sold in the United States—or your own home country. Foreign consulates can be an excellent source of this information.
  • Contact trade associations in other countries to get information about possible import products.
  • Look for new and innovative items made in other countries by visiting those countries (it’s a great excuse to travel there!) or reading advertisements in their magazines.
  • Join Import-Export associations, read their newsletters and, if possible, attend their meetings.
  • Identify products that have been successfully imported to other countries but have not been imported to the U.S.
  • Ask well-traveled friends and family about products they have come across that could be successful in the U.S. market.
  • Ask potential customers whether they would consider buying the type of goods you wish to import.

  Advice on choosing your product

   

  The most important thing to consider when picking your product is: Who is your market? When choosing a product, you must be thinking about the people who will buy it.

  The ideal product should have several qualities:

  • It should be durable. If you are importing or exporting you will inevitably be shipping the product and you’ll want your product to be able to withstand the journey.
  • Your product should also be portable. This is especially important if you are going to keep your Import-Export business small and just suitcase import.
  • It should be “trouble-free”. By that we mean, you don’t want your product to run into difficulties with customs or when crossing borders. This can take up your time and cost money.
  • The product should have a good mark-up. You should be looking at a 10 times mark up. Anything less than that, may not be worth doing if you are looking to profit from this.

  “Why I chose to import my products from Ecuador”- Alison Talbert

  After her first trip to Ecuador, Alison Talbert decided that this was the country she would source the products for her Import-Export business from. In this video, she explains why she chose Ecuador, the kinds of products she now brings home to sell, and where she found them.

  Here are just some of the beautiful handcrafted products that Alison buys in Ecuador and sells to family and friends at home:

  ©Alison Talbert

  Artisan markets—Buy low-sell high

  by Maryann Ullman

  We’ve all gone on vacation and fallen in love with a place that’s hard to leave. You promise yourself you’ll come back and visit… But you really wish you never had to go back home. Well, you don’t. You can figure it out. I did…

  For me the place was Buenos Aires, Argentina. I love its unique mix of European and Latin American cultures, the cafés in the sun-dappled shadow of French and Spanish colonial architecture. On any given day I can go to a French bakery and a Bolivian market in the same afternoon. In spring and summer I can sit in one of the many parks or botanical gardens, and there’s something to do at any hour of the night…live music, theater and tango (I don’t dance much, but I love to watch!).

  I arrived on vacation and was seduced into staying. You see, I figured out how to hemisphere-hop for free. This way I get two summers a year plus the snowy New England Christmas I couldn’t give up. I’m not a true expat. I’m a cheater.

  At first I lived off savings, and then pieced together an income from freelance writing and editing. By earning in dollars and living on Argentine pesos my dream of living off writing (and working in my pajamas) started to come true. But writing enough to pay for trips back home wasn’t easy.

  So I devised a plan. I began to export fair-trade crafts from Argentina to the U.S. Suddenly every journey through the skies became a profit-yielding opportunity. I could support communities in Argentina, see my old friends and family twice a year, and find new friends and new travels. I source fair trade crafts in three ways: buying from established non-profits, approaching artisans at local street fairs, and heading out to small towns and simply asking around for artisans and cooperatives.

  When I want a break from Buenos Aires, I head out to the mountains, hiking to isolated Kolla villages in the northern province of Jujuy. Over a lantern-lit meal of hearty vegetable stew, spicy empanadas, freshly baked bread and goat’s cheese, I arrange an order with an elderly couple for llama wool hats, scarves and shawls to be shipped by burro and bus to Buenos Aires.

  Venturing out to find artisans in rural communities is fun, and I’m bringing the market to people who have less access to it. I try to choose unique crafts and carve out my own non-competitive niche. The most popular products are quirky hand-painted wooden animal masks made by the Chané tribe in northern Argentina—each jaguar, marmot, and parrot face has an original character and style.

  I assess what’s practical to carry in my luggage. Jewelry and textiles are the easiest to transport, while beautiful palo verde wood platters are heavier and occupy more space, but are still worth it.

  It’s all trial and error—you have to work out the kinks and make the best of things. I fell in love with a style of rustic black pottery from the Diaguita tribe in Tucumán. But not only was I charged an overweight fee for my bag, there were also heavy casualties. Making the most of it, I used the pottery shards and some sand for a creative display around my wares and shoppers flocked to my table.

  I have to consider if I can sell for a fair price. I do a quick calculation in my head: one third—fair price for the artisan; one third—pays for my plane ticket; and one third—proceeds to Cultural Survival, the non-profit that organizes the bazaars where I sell my wares.

  At customs, U.S. citizens are allowed to bring in up to $800 of merchandise without paying a duty. After that, it’s 3% import duty. Whenever I source a new craft, I buy a small amount to take back with me and see how well it sells before committing to bulk orders. I also vary my inventory to cater to both budget-conscious shoppers and high spenders.

  I market the crafts in three ways: directly to friends and at parties, at a shop by consignment, and at crafts bazaars. The holiday bazaars are cozy and festive, while the summer bazaars are held outdoors in destinations around New England, often near beautiful beaches.

  The secret is keeping my operation small, just enough to subsidize my plane tickets (I profit between $800 and $1,500 on each trip. A round-trip ticket runs about $1,200). I stay under the threshold of bureaucratic hassle—import duties, licensing and shipping. I could turn it into a viable full-time business or non-profit if I wanted to, but for now I like to keep my life simple, flexible and full of adventure.

  You’ve found your product…now what?

   

  You’ve chosen your product, maybe brought some samples home from your last trip…now what? Now, it’s time to do some homework. You’ll need to find a market for your products. But don’t worry, it’s not as difficult as it might sound. Basically, you just need to do a little research; talk to local business people who you think might be interested in your product; do some online research.

  In the following section, Reece Guth will share his advice on what you need to do next.

  Do some research on your product

  It’s important to do some research on the product you intend to sell. Is there already an established market for your product? Or is there a gap in the market that your product can fill?

  Here are some places to do some research:

  • Search the Internet: Search the Internet for people that may already be selling the product you are interested in selling.
  • Check on eBay: Check websites like eBay. This will give you an idea of how these products are being marketed, how much they are selling for and will give you an idea of how popular your product is. It will also help you figure out how you can bring your own slant to your product and make it stand out among all the others.
  • Check your local bookstore: Another good place to do some product research is in your local bookstore. Take a look at magazines related to your area of interest. Look at the articles and ads in the magazines. You may find some interesting ideas for your product and even some contacts.
  • Look at catalogs Catalogs are also a good place to look. Thumb through the ones that appear in your mail box. You might be surprised to find similar products to your own in them. Much like the magazines, they might give you some marketing and price ideas.

  Talk to store owners in your area

  Talking to people who sell products like the one you are thinking of selling is always a good idea. These people know the market and can provide you with some very useful information. Look around your local stores, see what is selling and how much they are selling for. Check the quality of the products. If you have a sample of your product or a good photo of it, show it to the store owner and get their feedback.

  • Talk to the sales people, and if possible, the managers or store owners.
  • See what’s selling and how much items cost.
  • Check out quality and note what you do and don’t like.
  • If you have a sample or some photos, ask for their opinions.
  
  Having photos of your products, like this one of Reece’s pottery,
  is a great way to get feedback from potential customers.
  ©Reece Guth

  Attend some local fairs and craft shows

  Check out some art show or fairs in your area. You’ll find these events all over the country, all year round. If possible, attend shows that are specific to your product area. You’ll find industry specific shows like museum shows, outdoor furniture shows, jewelry shows, fashion shows…the list is endless.

  These are great places to talk to people who are already involved in the Import-Export business. Ask questions, get ideas, and enjoy looking at the products on offer.

  We’ll go into more detail about these types of shows later in this Import-Export Blueprint when we come to talk about selling your product.

  Get in touch with U.S. Customs

  We’ll talk more about this in a later section of this Import-Export Blueprint, but before you even start bringing your products into the U.S. to sell, you might want to check to see if there are customs charges associated with bringing your product into the country. This will be a big factor for your business…you don’t want to see all your profits go to the government in customs charges.

  Reece Guth’s tips for getting started
  in Import-Export

   

  Reece Guth says that he learned a lot when he was first starting out in the Import-Export business. He began by travelling to Nicaragua with a wad of cash in his pockets to buy some Nicaraguan pots.

  Reece has come a long way since then, and in this video, he shares some of the valuable insights he learned when starting up his business.

  First-timer’s guide to suitcase importing

   

  Suitcase importing is a great way to take your new business idea for a test drive. ©iStockPhoto.com

  The easiest way to start your venture—a sort of trial run, if you like—is with an empty suitcase or two. For one thing, you’ll discover whether you have an eye for a bargain—wouldn’t it be silly to spend $30,000 on a product you’re not even sure you can sell back home?

  You may be just going somewhere on vacation or perhaps you are scouting out some new retirement destinations, but it’s the perfect opportunity to take a look at what products your destination has to offer and to begin your Import-Export venture.

  There’s nothing wrong with baby steps. The old cliché about not trying to run before you can walk holds some truth.

  You can bring $800 worth of goods back into the U.S. from overseas tax-free (more about this later in this section). That’s just the perfect amount to test the waters…buy some stock, try selling it at home, and see if you are onto a winner.

  Here’s some advice that we’ve gathered from our Import-Export experts to help you on the road to a smooth, first-time, buying trip:

  • Pack as light as possible. The more space you have, the more space for shopping buys. When coming back, remember that exceeding your weight allowance will eat into potential profit. Do you need more than one change of clothes? Getting clothes laundered is unbelievably inexpensive in less developed parts of the world.
  • Make sure your trip doesn’t coincide with a holiday period. These are often based on the lunar calendar and so dates change every year. In Muslim countries, almost all businesses close for Eid, the Islamic New Year. The same shutters-down policy applies to countries that celebrate Chinese New Year. Europe is very quiet between Christmas and New Year with many businesses closed for the entire holiday. August in Mediterranean countries is also usually a slow month thanks to summer vacations.
  • Make out a “wish list” of items. Mark down comparative prices of what these items sell for either on websites or in stores at home.
  • Travel with a calculator. When it comes to adding up purchases and negotiating prices, a calculator makes you look more like a seasoned shopper.
  • A tape measure to check sizes won’t take up a lot of room. Neither will a black magic marker pen for writing on packages and boxes.
  • Bring your own bubble wrap and tape. In some countries you’ll find it easily—but don’t rely on it being available.
  • Take a notebook and keep account of everything you purchase. Be sure to include prices for each item—and hang on to the receipts. This accounting record will be useful if you get stopped by customs officials.
  • When shopping ask for the price of a single item first. Then ask for a discount on multiple items.
  • Don’t be shy about haggling (see more on haggling from our Europe Editor, and dabbling importer/exporter, Steenie Harvey below).
  • Make up a money conversion cheat sheet and be sure to have it with you when you shop. This will help when you have to do currency conversions and will ensure you don’t overpay for your goods.
  • If possible get a detailed invoice of the goods you purchase. In some places this may not be possible, but if you can get one, it will make bringing your goods back through customs a lot easier.
  • Have small stickers printed up that detail where the products were made. For example, Made in Nicaragua. There are some countries from which you cannot import items from into the U.S. Having these stickers on your products will also help with customs.
  • Make sure you understand the difference between goods for personal use and goods for commercial use. If you do get stopped, a wide assortment of items is less likely to lead to heavy questioning than if you try bringing back, for example, 2,000 faux leather wallets.
  • Know the rules governing the $800 exemption on bringing back goods from overseas.
  • Don’t rely on the advice of foreign sellers about what customs duty will be due in the U.S. or your home country.

  Reece’s advice for your first buying trip overseas

  In the following video, Reece Guth will outline some tips and tricks for your first buying trip. He’ll outline his advice for planning your trip, ordering your products, as well as some steps you need to take for bringing your products home if you are bringing a large order.

  Reece’s Tip: Ordering your products

   

  • Take your time ordering products. Spend some time walking around talking to people. Find out what’s new, talk to people about your ideas.
  • When buying, haggle a little. Its part of the fun of import-export. Some cultures expect you to haggle. You probably won’t be expected to pay the first price that you are quoted. But use your common sense…if the price is already low, don’t brow-beat the seller down. They have to make a living too.
  • Try to vary your sources. Don’t get all your products from the same supplier. Try out a few and see who does the best job for you.
  • The quality of your products is very important. Be sure you inspect the products and are satisfied with the level of workmanship. If you want your products to be modified in any way, talk to your supplier about exactly what you want. You want to be sure they can produce what you want.
  • In the beginning it may be best to under order rather than over order. You don’t want to be left with surplus stock that you can’t sell.
  • Be prepared to leave deposits with people, particularly if you aren’t taking your products home in your suitcase. If you are going to leave money with people, you want to be sure they are people you can trust. And don’t forget to get a bill for your goods.
  • To ensure that you receive the goods that you ordered (and not an inferior version of what you were promised) it can sometimes be a good idea to budget for two trips…one to place your order and one to collect it (if you are in the Import-Export business for the traveling, doing this won’t be a burden). Let your supplier know that you’ll be examining every item and that you will not pay for anything that is below standard.

  Part of the fun of Import-Export is buying your products and haggling for a good price. International Living’s Roving Europe Editor, Steenie Harvey, loves to haggle…and anyone who has seen her in action will tell you, she’s good at it. Here she shares some of her tricks for getting a good price for your products. Haggle like a rug trader By Steenie Harvey Whether its rugs or wind chimes, Steenie knows how to haggle hard for the best prices. ©iStockPhoto.com/Adrian Beesley Whether it’s for wind chimes from Borneo or embroidered Turkish towels, I bargain hard for the goods that I purchase. Outside the U.S. and Europe, most of the world does business by haggling. Whether it’s for vegetables, fresh fish, or a new shirt, bargaining is part of the social fabric. Haggling isn’t only for suitcase importers. Learn the skills and you can really stretch your vacation spending money. Never be discomfited about getting down and dirty with market traders. And the more items purchased, the deeper the discount. The trick comes in knowing what amount to offer initially. And then deciding what’s a right and fair price. In truth, a lot depends on where you’re traveling. In Asia, prices for foreigners are often insanely bloated. So don’t be embarrassed about offering as little as a tenth of the starting price. In Latin America, initial quotes aren’t usually as crazy. Even so, when I’m shopping, I begin by offering no higher than 25% of the asking price. And so they know I’m unburdened with gringo guilt, I always jokingly say, “Soy Inglesa, no Norte Americana.” (I’m English, not North American.) But do some Internet research first. U.S. website vendors with craft items from the country you plan to visit can be useful. Divide their selling price by seven or eight, and you’re usually in the ballpark region of the real local price. Take alpaca wool blankets—recently spotted on Amazon.com at a “reduced price” of $90. I bought a couple for $11 apiece in Otavalo, Ecuador. On the other hand, I overpaid for cane rain sticks; a cunning vendor charged me $8 apiece for two 20-inch hand-painted ones. I sold them for $20 and $25 at my Bizarre Bazaar stall at an IL event, but the profits could have been greater. With more pre-trip homework, I’d have discovered a Quito craft cooperative selling similar rain sticks for $2.24. But let’s say you’ve done price research. And now you’re in a bazaar overflowing with goodies. It doesn’t matter where—the rules are essentially the same whether in Thailand or Turkey. Always get the merchant to open the bidding. This gives you the advantage. You don’t want your opening gambit to be too high. Look shocked. Roll your eyes. Snort with derision. Ask if that’s the best he can do. (He’ll do better). Be polite. Use flattery. Stress that you’re not wealthy. After striking a deal on one item, ask for a further discount for a bulk buy. Don’t hesitate to walk away. If there’s more leeway in the haggling process, the vendor will come after you. If not, you’ve reached his bottom limit. But there’s nothing to stop you from going back. Get the haggling habit and you’ll soon also be bargaining for taxis, hotel rooms, and even two-for-the-price-of-one snacks in markets.

  Shipping costs and how they impact
  your final sale price

   

  By Reece Guth

  There are many possible scenarios and numbers when it comes to shipping costs and it can be difficult to know if shipping the goods that you find on your travels back home in order to sell them is worth the time and money.

  So, here are some examples to give you an idea of how real numbers might look:

  Say you have a container that costs $5,000—door to door, all expenses, which is a fair and realistic number to use as an estimate from anywhere in the world to the U.S.

  If you invest $5,000 in inventory and you think you can triple that amount in sales:
  That gives you a gross total of $15,000 return.
  You spent $5,000 on products. You paid $5,000 for shipping.
  That leaves you with $5,000 gross to pay all your bills.
  Not worth it!

  Take that same container and put $10,000 worth of inventory in it:
  Again, figure on triple the amount in sales; you get $30,000.
  You spent $10,000 on the product and $5,000 to ship.
  Now you have a gross of $15,000.

  That’s a little more comfortable. You’re actually making some money, not a lot but you’re past breaking even, working part time, and hopefully having some fun.

  Let’s say I can fit $25,000 worth of pottery in one container:
  Once again, you think you can triple that amount…$75,000.
  You spent $25,000 on product and $5,000 on shipping.
  And you’re left with a gross total of $45,000.

  You are committing more time here, but if you were to do this a couple times a year, you’ve got something going. (Not to mention the vacations you took to get it!)

  How your type of product affects costs

  Say you have a product like handmade leather wallets or embroidered blouses. Try to envision how many pieces would fit into a container—a lot. Perhaps it would be cheaper to ship a few boxes of these kinds of products by air. It may cost between $1,000 and $1,500 to ship some boxes by air which would be much more cost effective than paying $5,000 for a shipping container that you probably would not fill with such small products.

  What this means is:
  You may not need a really steep markup on your sale price. Because you’re stretching your shipping dollar you can get by with a smaller profit margin and gain a competitive edge with lower prices.

  If you have a large item; furniture, for example handmade teak patio furniture, hand-carved wooden beds, or maybe rattan rocking chairs, you have to find out how much can go into a container to make sure that you end up with enough gross profit to make the cost of shipping a container worth it.

  In any scenario, you need to keep your anticipated mark-up in mind and make sure that you are investing enough to make it worthwhile.

  So with these types of examples in mind, you should be able to look at the things that interest you with a more educated eye.

  Some shipping terms Shipping has its own language and acronyms for quoting prices and forwarding merchandise. Depending on the terms of individual agreements and orders, your liabilities will vary. If you’re unsure, ask your freight forwarder to explain exactly what your responsibilities and costs are. Signed by the agent of a ship or carrier, a bill of lading is a receipt for the shipped merchandise. It states that the goods were unloaded in the same condition as they were accepted. If you’re operating with a letter of credit you’ll need to produce this bill of lading for your bank to release the funds. FOB means “free on board.” The vendor delivers the merchandise to the stated destination with no additional charges, and also takes responsibility for insuring it. Once the goods arrive at the agreed destination, it’s the buyer’s responsibility. For example, FOB Los Angeles means the seller’s price quotation includes full responsibility and shipping to Los Angeles. FAS translates as “free alongside.” The vendor delivers the merchandise to the ship that will carry it to its destination. The buyer pays to load the goods onto the ship and also takes responsibility for insuring the goods from there. FAS Miami, for example, means that the vendor will deliver and store the goods until they are ready for loading onto the ship. C&F means “cost and freight.” The vendor pays the freight charges. The buyer insures the merchandise and takes full responsibility after it has reached its destination. CIF means “cost, insurance, and freight.” The vendor is responsible for the value and condition of the goods, and pays both insurance and freight charges to whatever destination has been agreed upon. From that point, the buyer becomes responsible. International shippers such as FedEx, DHL, and UPS have offices in most countries and have their own services for businesses. They can even handle customs brokerage. (You can visit their websites at www.fedex.com, www.ups.com, or www.dhl.com.) To find individual contacts in each foreign country, one of the best resources is www.freightworld.com. This site provides links to international forwarders (by air, sea, rail, and post), Customs brokers, movers, and warehouses, etc.

  From Carmel to China and back again: Beau and Thompson Lange’s Import-Export story

  If you find yourself on California’s Monterey Peninsula, be sure to call on Grove Homescapes and Homescapes Carmel. Set up by brothers Thompson and Beau Lange, these stores serve as showcases for Thompson’s globetrotting finds. His travels have now taken him to over 70 countries. According to the www.homescapescarmel.com website, current annual sales are now in the region of $1.25 million.

  With their father Thomas, Beau and Thompson opened Grove Homescapes in Pacific Grove back in 1996. A home environments store, it basically combines custom furniture with antiques, handicrafts, art by local artists, interior plants, orchids, and flowers. “My brother wanted to join forces and open a business,” says Thompson. “He thought that my history of hitting the road with a backpack and no itinerary could be a useful asset.”

  Amazingly, the store’s former existence was as a laundry! In a historic building, the old wash house had been condemned, but they successfully converted it into a Victorian-style store with a garden area. Beau’s former work in plantscaping and Thompson’s studies in scenic design at UCLA came in very useful. They accented the store with plants and accessories to set off the furniture that Thompson was bringing back from around the world.

  “When we were remodeling the Laundry, we were the laughing stocks of Pacific Grove,” says Thompson. “Beau and I couldn’t go anywhere without people asking us: ‘When are you boys going to finish that thing?’ Then, when we opened Homescapes, we got a lot of advice about how it would make a better restaurant than a store.”

  Although it was their first venture into retailing, the store was an immediate success. After its first year, Grove Homescapes became one of Pacific Grove’s top businesses. A report in the Monterey County Herald included a quote from Moe Ammar, president of the Pacific Grove Chamber of Commerce. “Within one year of operation they were among the Top 40 revenue producers in the city,” he said. “Being in the Top 40 means generating at least $1.1 million in sales.”

  The Lange brothers’ second store, Homescapes Carmel, opened in 1999. Have a look around it at www.homescapescarmel.com. The former Great Western Bank building, it covers around 6,000 square feet—including the old vault they use as an art gallery.

  Where to Find Products For Your

  Import-Export Business

  The world is full of products—and sourcing them isn’t usually difficult. Personal recommendation is the best route to finding reliable suppliers—producers or wholesalers. While it’s easier to find wholesalers, most people are taken with the idea of owning a unique individually crafted piece from some far-off foreign shore. Your goal might be to track down a local artisan.

  In some parts of the world there’s precious little government support—or any organized wholesale business. You cannot simply make a phone call (much less send an e-mail) and order 50 of this and 100 of that.

  As any old Asia hand (or backpacking hippy) knows, there are some great markets in Southeast Asia where you can shop ’til you drop for inexpensive curios that sell for far higher prices back home. Some items are handmade, others mass-produced, but prices are amazingly low.

  In Thailand, you can go to Chiang Mai’s Night Market and buy an array of treasures for between $2 and $5. There are brightly colored hemp dragons and serpents that can be twisted into a whole range of positions and make for an eye-catching display. You’ll find feather masks, painted paper parasols, bamboo fans painted with golden dragon motifs, lanterns that can be packed flat, handmade saa paper notebooks, incense stick holders in the shape of boats or elephants, and a lot more, too.

  Or perhaps silver jewelry from Mexico is more your thing…or works of art from some of Ecuador’s most esteemed artists…the list is endless. There’s a whole host of countries around the world that are veritable treasure troves…filled with amazing merchandise that could help you start off your own Import-Export business.

  Let’s take a look at some of our favorite destinations around the globe and what they have to offer the potential importer-exporter.

  Import-Export Opportunities in Ecuador

  Ecuador offers wonderful opportunities for Import-Export entrepreneurs. The country is very investor-friendly and the variety of goods available here is incredible. Ecuador’s markets are some of the best in the world offering the potential importer-exporter a wide range of quality, handmade items such as bags, hats, scarves, leather items and much, much more. Click on the report below to read more about the import-export opportunities you’ll discover in Ecuador.

  

  Import-Export Opportunities in Mexico

  Many of Mexico’s arts and crafts have gained collector status north of the border—and price tags in U.S. stores usually bear scant resemblance to price tags in Mexican stores. And thanks to NAFTA (North American Free Trade Agreement) one of the great things about sourcing goods in Mexico is that for most items, you won’t have to pay any customs duties. But while Mexico can be a treasure trove for importers, it can also be the equivalent of a junk store…unless you know what to look for and where. To find out, click on the report below to read more about the import-export opportunities you’ll discover Mexico.

  

  Import-Export Opportunities in Nicaragua

  Deep in Central America, Nicaragua is a land of lakes, smoking volcanoes, and lots of opportunities for an Import-Export business. In 1999, the Nicaraguan government enacted what they call Law 306. It has a simple objective: to make it as easy and appealing as possible for foreign investors to contribute to the creation of tourism-related services and products in the country. To find out more about the law, as well as the best places to find beautiful Nicaraguan pottery that can sell at a huge mark-up prices at home, click on the report below.

  

  Import-Export Opportunities in Panama

  It’s a little-known fact that Panama is one of the world’s great melting pots and cultural diversity centers. Panama’s seven major indigenous tribes make tribal handicrafts that are coveted for their beauty and the quality of the workmanship. Panama doesn’t export these in significant numbers, so they are fairly rare on outside markets. The perfect opportunity for an Import-Export business.

  Panama is also a great place from which to operate an Import-Export business. The Colon Free Zone, which is located near the mouth of the famous Panama Canal, offers tax and financial benefits that are unrivalled anywhere else on the planet. To find out more about this special economic zone, as well as the many items found here that would be perfect for selling at home, click on the report below.

  

  Import-Export Opportunities in Thailand

  Deep in the heart of Southeast Asia, Thailand is a goldmine for shoppers. It has gained worldwide renown for its alluring silks, cottons, and other hand-woven fabrics; its woodcarvings, furniture, lacquer-ware, ceramics, metal-ware, gems, and jewelry. The wealth of beautifully handcrafted goods reflects an array of traditional artisan skills dating back centuries.

  Today, shoppers from all over the world haggle in Bangkok’s markets or in the night bazaars of Chang Mai. You can find everything here from colorful beads to silverware, handmade paper umbrellas to elephant art. Click on the report below to read more about the import-export opportunities you’ll discover in Thailand.

  

  Other Destinations Where You Can Find
  Import–Export Bargains

  You’ve heard about some of our favorite Import-Export destinations already, but there are so many more out there. Countries all around the globe offer opportunities for Import-Export business ideas. Over the years we have heard from many International Living readers who have set up their own businesses all over the world. Here, we’ll share some of those stories…perhaps they will give you some inspiration for your Import-Export business. Click on the report below to read more.

  

  How to Sell Your Products

  Great products sell themselves? Well, maybe…but they’ll sell a whole lot better if you learn something about the art of selling and marketing. Obviously selling for a profit is the whole point of your endeavor, but marketing comes first. You have to get your products into homes and stores. And while you certainly don’t need a degree in business studies or advertising techniques to succeed, having some knowledge of sales and marketing will take you a long way.

  Learning customs, laws, and culture

  It is far beyond the scope of this course to point out all the nuances of culture and etiquette that exist between different countries. However, we strongly advise that you try to familiarize yourself with accepted customs and business practices for any of the countries you aim to target.

  Take Morocco, for example. The social customs of the business community are mainly European, as most foreign trade is still conducted with European firms. In other words, definitely no shorts! As there are increasing numbers of Moroccan businesswomen, women shouldn’t encounter any difficulties—as long as you wear a fairly modest dress or a trouser suit. But wander around the souks in skimpy gear and you will almost certainly get stares.

  If you are lucky enough to be invited to a traditional multi-course Moroccan meal, note that food is generally eaten with the fingers of the right hand. Although a guest is expected to partake of some of each course, no offense will be taken if you eat sparingly. But don’t ask “where’s the beer?” Muslims are forbidden on religious grounds from drinking alcohol and also eating pig meat. If you invite Moroccan guests for a meal, you certainly should not be offering them pork or ham. There is no harm in having a bottle of wine on the table, but make sure plenty of non-alcoholic drinks are provided, too.

  Maybe you want some pictures of artisans to illustrate your new website? Always ask their permission. In some of the more primitive parts of the world, people simply don’t want to be photographed—it’s like stealing their soul. That’s not always the case. But if they’re happy for you to take photos, it’s an appreciated gesture if you also take a snap of the person on a Polaroid camera. It’s something for them to treasure too.

  
  Always ask permission before taking a person’s photo…
  in some countries around the world it’s like stealing their soul
  ©iStockPhoto.com/ Michel de Leeuw

  Market research and targeting

   

  It’s important to identify where your customers are likely to come from. Do you aim to target individual consumers or other businesses such as retail stores? If it’s consumers, what are their age, gender, geographic location, educational level, income bracket, ethnic background, etc.?

  You may wonder if such things are important. Not necessarily, but they could be. The more precise you are in identifying your most likely customer, the easier it will be for you to find them—as well as the products that are likely to appeal to them. And it also allows you to choose the best media method by which to reach these potential customers.

  Take the arts and crafts sector. What kind of customer do you have in mind? Is it the tourist who wants cheap and pretty mementos or the serious collector? Your customer profile should give you an inkling about what kind of goods you should be sourcing—and also how much to charge for them.

  How about a Singha dragon—a traditional Thai temple guardian—carved from a block of jade? Yes, it’s green. However, a tourist who just wants an inexpensive souvenir to remind him of his beery day out at the North Texas Irish Festival in Dallas certainly isn’t going to pay $350 for it. But choose the right event to showcase your products, and a collector of fine art may be far more willing to spend large sums for an original piece of carved jade.

  Selling from your own home

   

  If you’re just starting in the Import-Export business and want to gauge how well your products will sell, or if like Alison Talbert you are happy to keep your business on a smaller scale, a great way to sell your products is to do it from your own home.

  Alison invites her friends and family to her house for a party to sell her Ecuadorian products. She says she puts on some music and serves Ecuadorian food so that her customers feel comfortable and relaxed. Her customers have a lot of fun trying on her alpaca scarves and hats before they buy. This is a fun and easy way to start showcasing your products, before deciding if you want to sell to wider audience.

  In the following video, Alison will explain how she sells her products, both at home and through her website, Income from Ecuador (website: http://incomefromecuador.com).

  
  

  Tapping into America’s heritage

   

  Let’s say your specialty is going to be importing goods from Germany—dirndl dresses, music boxes, nutcrackers, cuckoo clocks, beer steins, Christmas ornaments, and other folk art and collectibles.

  Who is likely to buy them? Plenty of people! Although it seems almost impossible to imagine a roll-out-the-beer-barrel and get-stuck-into-the-sausages event amongst the palm trees of sunny Florida, it happens. Did you know that Cape Coral’s German-American Club holds an Oktoberfest? The event, spread over two weekends, draws around 30,000 visitors each year. Helping to preserve the cultural heritage of their immigrant forefathers, numerous other communities in the United States also have German-style summer festivals, arts and crafts fairs, and Oktoberfests.

  Frederick in Maryland has a Frühlingsfest (Spring Festival), Louisville in Kentucky has a Christkindlmarkt (Christmas market), and New Ulm in Minnesota calls itself the “city of festivals” with a Heritagefest, Oktoberfest, and Fasching (Carnival). The largest of them all is the German Fest in Milwaukee, Wisconsin. Held on the shore of Lake Michigan over three days every July, it attracts over 100,000 visitors. That’s 100,000 potential customers! Shouldn’t you perhaps be thinking about taking a booth at some of these events?

  
  Themed festivals like Oktoberfests can be a great place
  to sell your products.
  ©iStockPhoto.com

  But it’s not only German festivals, of course. There are Irish festivals, Scandinavian festivals, Polish festivals, and all kinds of other ethnic festivals, too. Many, many communities throughout North America celebrate their heritage. And thousands more communities have cultural, musical, or other events where you can rent a booth to exhibit your products. It’s a great opportunity for you to sell your wares. Most visitors will be seeking something unique and different to take away with them.

  The downside of exhibiting at these events can be the cost. For a 100-square-foot booth, it could be as low as $40. On the other hand, it could cost you hundreds of dollars. Another thing to note is that some festivals charge commission to vendors—sometimes as much as 30% on the goods you sell. Before paying for a booth at an event, think about how much you will probably sell.

  In many cases, you have to fit in with the ethos of the fair or festival. Held in May in
  Northridge CA, the Whole Children, Whole Planet (WCWP) Expo attracts 10,000-plus attendees. It’s “about raising healthy children—mind, body and spirit—in a safe, natural, non-toxic, nurturing environment. To be eligible to participate, exhibitors must meet one or more of the following criteria in alignment with our philosophy.”

  That philosophy includes:

  • Produce or sell natural health and/or environmentally-friendly products at the manufacturer, distributor, or retail level.
  • Support holistic medicine practices.
  • Supply other products/services/destinations in keeping with the Expo philosophy.

  From what we could see from the reservation agreement for the four-day Scandinavian Festival in Junction City, Oregon, there is a commission of 12% of gross sales sought from vendors here. You exhibit or sell items pertaining to Scandinavia. There is a flat fee of $180 for booth rental—with electricity provided if necessary. Exhibitors also get a six-foot table, two chairs, table cover and skirt, booth divider, and booth backdrop.

  Reece Guth’s strategy for selling your Import-Export products Reece Guth’s first shipment of pottery from Nicaragua contained just 40 pieces. He used those pieces to gauge interest in his product and used them as samples to market the pots in stores in locality, on eBay and at fairs and festivals. Reece’s marketing of his product was a success…his second shipment of pots from Nicaragua was 400 pieces. In the following video, Reece will talk about the many different ways in which you can sell your product. From “cold-calling” your local stores to setting up your own website and selling online, there are numerous ways to get your product out to customers.

  Finding fairs, festivals, and other events

   

  At many events, booth space gets taken early. It may be worth investing $49 to access the members-only section of Festival Network Online (website: www.festivalnet.com). Here you’ll find detailed information on over 22,000 festivals that are held annually throughout the United States: what the event is about, when it takes places, contact details, the cost of booth space, how many booths are available, and deadlines for booking. Plus—and this seems to be a valuable plus—how many visitors attended the event last year.

  You don’t want to spend money on a booth at festivals with poor attendances and where the fair-goers never get out their wallets. Your aim is to make a profit, not lose money.

  Regional tourism offices should also be able to tell you about regular fairs and festivals. Some States, such as Indiana, have their own State Festivals organizations. Take a look at www.indianafestivals.org to get an idea.

  One that came up here was Ethnic Expo in Columbus—founded in 1984 as a celebration of the city’s varied ethnic heritage as well as its cultural traditions. Annually, Ethnic Expo attracts more than 40,000 people who enjoy international food and browsing around a marketplace for ethnic arts and crafts.

  Here’s another way to find events. If you’re concentrating on importing goods from one particular country, you should also check if there are any publications that cater to this particular group. Like people of ethnic German background, communities whose folks emigrated from Ireland, Scotland, Poland, and Scandinavia are also big fans of heritage festivals. It will help you to pinpoint forthcoming events for a particular market segment. (And you may want to consider taking out an advert.) Such publications certainly exist. Leafing through a copy of the U.S.-published German Life, from the advertisements we can see that it’s not just crafts that sell. Although it beats us why anybody on this earth would want a “yodeling troll,” there are also adverts for German handmade tools, German natural skincare products, German cheeses, Austrian pumpkin seed oil, and other imported food products from German-speaking Europe. One company will order customers any German book that is currently in print.

  Making the festival circuit pay

  Before spending money on a booth at a fair or festival, go along to a few as a spectator. Note the stalls that are busy—what kind of items are they selling? How are their booths set up? Talk to booth owners. How does this fair or festival compare with others that they have attended?

  Have you got a license to trade and sell products at a festival? Most cities require any business, home-based or otherwise, to register and purchase a business license. These generally range from $15 to $100 and in most instances are obtained from the city clerk’s office. It makes your craft show company official and enables you to conduct business legally. Festival organizers will probably ask you to produce it.

  You will probably need to get a resale (sales tax) license. In most states, you need to charge sales tax on your products and then submit it to the tax board either monthly, quarterly, or annually.

  As it can vary by city, county, and state, ensure that you find out the amount of tax you need to charge. Check with your local state office of taxation to find out the rules. Carry your sales tax permit everywhere. If you need to pick up some local supplies related to your business, you can avoid paying sales tax on them. Some show promoters collect sales tax on vendors’ behalf at the end of the show. In both cases, you’ll need to keep accurate records. The best way is obviously by issuing a receipt with every customer purchase and keeping a copy for both yourself and the tax people.

  10 tips for festival success

  You’ve taken the plunge, got the necessary licenses…and are about to attend your first fair or festival as a vendor. Here are some tips and ideas to make it a success:

  • Do potential customers know you’ll be there? If you have a website or Facebook page, post details of the event. Invite them to come along and meet you in person—to see and handle your products first hand.
  • Have you got enough business cards or brochures?
  • Are you clear about the festival’s rules—about what items may not be allowed? For example, Buckler Promotions which organizes some home and decor fairs in Florida says exhibitors will be asked to remove any objectionable material: the list includes witches, wizards, and occult items. So witch puppet decorations from Germany are unlikely to go down a storm here.
  • Get professional-looking price tags. North America is not the Middle East or India. Potential customers do not expect to haggle.
  • You’ll probably be using some kind of vehicle to transport your products. Is it in good order? The last thing you want is to break down on route.
  • If you have a vast array of products, don’t overfill your booth or stall with every single item in your inventory. Clutter isn’t attractive.
  • Be prepared to chat about your travels and the products—don’t sit in the corner with your head buried in a book looking unapproachable. Interaction with customers is vitally important. It’s not only about selling your product, you’re also there to inform and educate—obviously not in a superior manner, though.
  • To a certain extent, you’re there to entertain your potential customers, too. Who wants to buy anything off Mr. or Ms. Grumpy? If you’re hopeless at talking to strangers or making pleasant chit-chat, consider bringing along a more sociable friend.
  • It should go without saying, but be neat and clean. You don’t have to spend a fortune on a special outfit, but you shouldn’t give the impression you’re an unwashed hobo.
  • Ask your buyers (and even visitors who showed an interest but didn’t buy) to give their details in a “guest book.” Tell them about your next scouting trip—and how you’d like to send them first pick of your new finds.

  Selling to stores

   

  If you’re hoping to sell to stores, again do some research. Is it a chain of stores or stores owned by individuals? What is their size and geographic location? (Going back to the festival idea, there’s got to be German heritage shops in the German heritage towns, right?)

  But let’s broaden the picture. Take retail stores that carry an eclectic mix of goods from all over the world—there might be one or more in your own hometown. If it’s a small local gift shop, you could simply call in and introduce yourself to the owner. Explain your travel schedule and what you’re doing—or plan to do. Would the owner be interested in seeing samples when you return home?

  However, if it’s a large city department store, it may be more appropriate to initially write to the decision-maker in the buying department after you’ve been on a buying trip. Ask for a meeting—tell them who you are, and the kinds of product you can supply.

  Reece’s Tip: Selling your own product

   

  When selling your own product, it’s important that you are enthusiastic about it. If you are excited about what you do, it’ll be easy to get other people excited about your product. Here are some tips from Reece on selling your own product.

  • Be upbeat and positive.
  • Bring some photos of the places you went to when you were sourcing your products and the people you met while there. Have some good photos of your products too.
  • People love a good story…have some background information about your product and the people who made it, or have a story about how you came to find your product.
  • The personal touch goes a long way. You can write letters or make phone calls to people explaining your product but face-to-face contact is much more effective. Reece says that when he first started to market his pottery, he would walk into a store and asked the manager if he wanted to hear a story. Most of them said yes and after hearing his story of how he ended up in a Nicaraguan village, they were happy to take a look at what he had to offer.

  Tips for photographing your product By Reece Guth When selling your product, particularly online, it’s important to have good photos. In my opinion poor photography will hurt you. Take good, clear, sharp photos and use a plain background that won’t distract from your subject. If you don’t already have one, invest in a tripod, a few lights with stands, and a white or light grey seamless background. Here are some sources I would recommend for photography equipment: www.bhphoto.com www.adorama.com www.uniquephoto.com www.eBay.com If you are concerned about where you are buying your equipment from, then check out www.Resellerratings.com. Here you can double check a seller’s reputation. With product photos, and photography in general lighting is everything You can wait for overcast days and you can also use tagboard or other kinds of inexpensive background paper, but make sure the background for your product is clean and wrinkle-free. A roll of “professional” paper costs about $25. You can use find lighting equipment: here are some general prices: A stand with umbrella: $70 A complete lighting kit with three lights, etc.: $219 or less That will do a really nice job for you and last a lifetime. Plus now that you’re in business, it’s tax deductible! With a digital camera and some basic software like Adobe Elements (website: www.adobe.com/products/photoshopel), I am confident that everyone will be able to easily come up with some top notch results.

  Setting up your own website

   

  
  Setting up your own website is a must in the Import-Export business
  ©Dreamstime/Mavericklee

  If you want to reach a national audience—even an international audience—you cannot afford to ignore the Internet.

  Should you bother to have your own website? Everybody we’ve spoken to in the Import-Export business emphatically says “yes.” Without one, you’re spurning the opportunity to reach millions of potential customers and to earn substantial sums of money—from the comfort of your own home computer.

  If you cannot design your own website, you will have to pay someone to do so. The costs for this can vary enormously, so shop around. To find someone to help you design your site, you could check out www.craigslist.org, and put up an ad, or answer one of their work-wanted ads. You could also check out a site like www.elance.com.

  Alternatively you could hire a local high school kid. Kids these days are pretty tech-savvy, so it wouldn’t be all that difficult to find one to do what you need—also, a student might be cheaper than hiring a professional

  A few things to consider when thinking about building a website (or getting someone else to build one for you):

  • Check out the websites of competitors. List what you like—and don’t like. Think about what you want to include on your own site.
  • Aim for a concise, neat, easy-to-navigate site. Potential customers do not want to spend their precious time trying to figure out where to order your product. No matter how interested they are, if they can’t easily navigate the order process, they’re not going to stick around to buy.
  • The most popular sites on the Internet are not full of busy graphics or decorative text. Don’t be tempted to go for a flashing purple and orange font in a bid to stand out from the crowd—you may only irritate or confuse your potential customers, and send them running to your more conventional competitor.
  • Choose a website address—or domain name (also called URL)—that is short and simple.
  • Register your domain name.
  • Add the website address to your letterhead, business card—all marketing materials and advertisements.
  • Consider setting up a PayPal account so people can pay you via eBay or your website.
  • Think about including a business blog. This will help in driving traffic to your site, building customer relations and trust, and give you fast and accurate feedback.

  Obviously you will have to pay to get your website hosted, too.

  Through Network Solutions, www.networksolutions.com, the annual cost for domain name registration, 300 GB of disk space and e-mail box storage starts at $238.98 going up to $699 annually for larger traffic websites.

  They also offer various e-commerce packages. For example, the Standard E-Commerce Solution package is a “starter shopping cart solution ideal for new online stores selling 300 items or less.” This package also includes:

  A choice of professional e-commerce design templates—no HTML or website programming skills required!

  An easy-to-use checklist guides you through the storefront set-up process.

  The ability to track your online store’s performance using the built in website sales and traffic reports. This costs $56.19 per month.

  For more, see their website: www.networksolutions.com.

  Network Solutions is just one of many companies out there offering these kinds of services, so shop around—there are numerous ways to get a website up and running.

  Ways to make a website pay

  Some people are more tech savvy than others. If you know little about Internet marketing, you may want to investigate topics such as Search Engine Optimization (SEO). Basically, SEO drives your e-commerce company up to the top of the search engines’ listings. Usually, the higher a site appears in the result pages on search engines like Google and Yahoo, the more people will visit that site.

  It’s beyond the scope of this course to cover what is a mammoth subject, but you’ll get ample information if you Google “SEO tutorial.”

  People use different “keywords” and key phrases when they search for products online. Find out all about this on www.wordtracker.com. With Google AdWords you can reach people who actively seek your products and services. That means you receive targeted visitors and customers. Cost-per-click pricing means you only pay when people click on your ad, and it is easy to control costs. For more, see www.google.ie/intl/en/ads/.

  Opportunities on eBay

   

  While eBay has generated a lot of annoying spam, it’s not all about auction bids. Many people in the Import-Export business have their own “stores” on eBay. They use the site in almost the same manner as a catalog company showcases its products. The difference is that potential customers aren’t flicking through a print catalog—they’re seeing pictures and descriptions of products on the web. Numerous commentators have rated it as the top home business opportunity.

  Despite the credit crunch, people are still shopping. For the year ended December 31, 2010, eBay Inc. reported net revenue totaled $9.2 billion, up 13% from 2009. By using eBay as a marketing tool, you’re getting the opportunity of fairly low-cost advertising to increase sales.

  There are three basic subscription levels for eBay stores. At the time of writing, eBay was offering a free 30-day trial.

  • Costing $15.95 monthly, the “Basic Store” is for fledgling sellers who are seeking an easy-to-use platform to sell online.
  • Costing $49.95 monthly, a “Premium Store” is aimed toward small to medium sellers who want to aggressively grow an online business.
  • An “Anchor Store” is an advanced solution for higher-volume sellers who want maximum exposure on eBay. This costs $299.95 monthly.

  All store sellers receive monthly sales reports that outline their activity by category (for example, monthly gross sales, conversion rates, and number of buyers). Additionally, if you have a featured or anchor store, you’ll also receive overall eBay marketplace data so that you can compare your sales against other eBay sellers.

  Unfortunately it’s not quite as simple as paying $15.95 a month and waiting for the orders to roll in. You also have to pay for “Store Inventory Listings.” The insertion fee covers any quantity of items with a single listing—whether you list one or 1,000 of the same item. Fees for a product line are based on the price of the product. There are also “Final Value Fees” on the sale price of your item.

  You’ll find more information on eBay itself at http://pages.ebay.com/storefronts/start.html. You can also find information on the site about signing up for PayPal—a fast, easy, and secure way for buyers to pay you online.

  Tap into the social media phenomenon

  Using social media as a marketing tool has become very popular in the last couple of years. With the success of the likes of Twitter and Facebook, businesses are now setting up Facebook pages and Twitter accounts in order to get the word out about their products to a mass audience.

  With a social media application like Facebook you can tell your followers all about your product, post photos, ask questions and get feedback, inform your customers about special offers. It’s a great, and inexpensive, way to market your product.

  For more see:

  • www.Facebook.com
  • www.Twitter.com

  Opening your own store or gallery

   

  You may eventually want to think about opening your own high-end specialty store. Of course, this can be expensive. Depending on location, rent can add up to thousands of dollars per year—and if it’s in a really exclusive location you could be paying thousands of dollars a month.

  Obviously you’ll need to sell a lot of products or charge a significant amount. However, if your business is in the right place and people are excited about what they see, it may be an option to consider in the future.

  It may eventually lead to a whole chain of stores…

  Other strategies to get yourself and
  your business known

   

  • You could distribute ads about specialty items to targeted groups. These can be very effective if they’re imprinted or tagged with your business name and phone number. For example, Thailand produces some beautiful curiosity key rings with tiny carved wooden elephants and miniature figurines of Padong hill-tribe women. (The Padong are the “giraffenecked women” with all the gold rings around their necks.) Each key ring sells for the equivalent of $0.40 apiece. That’s retail—locate a wholesaler and you’d undoubtedly get them a whole lot cheaper if buying in bulk.
  • Write articles for a publication. Have you become a bit of an expert on Peruvian loom-spun fabrics or Mexican silver? Well, share the benefit of your expertise with the rest of us. Though any extra income is always useful, it does not necessarily matter if a publication pays generous rates. You’re getting free publicity. And it all counts. (Just make sure your website or business address gets included in the author’s bio at the end of the article.) Or, you might ask the editor if it’s possible to forego payment in return for free ad space.
  • Write infomercials to use on your own website or in marketing materials. If you decide to have your own website, don’t simply fill it up with pictures and price lists. Convey something of the romance and history of your products to your readers.
  • Take your spiel on the road. Church groups, women’s groups, Rotary clubs, and countless other organizations are always seeking willing speakers to talk about interesting topics. The artisan villages of Ecuador? After your talk, maybe during refreshments, arrange to have a table set up where you can display—and of course sell—samples of the goods you imported from Ecuadorian villages.

  Alison’s tips: 5 things I’ve learned setting up an Import-Export business I always travel with the largest but lightest suitcase I own and pack another suitcase inside. This allows me to fill up the second suitcase with all of my new finds. Although many airlines are now charging fees for a second bag, those fees are negligible when compared to shipping costs. Just be sure that you weigh your luggage so you don’t get hit with overweight baggage fees. To find the best quality and the best deals, ask around in the area in which you are staying. I have spent many a fun afternoon tracking down seemingly elusive items, often resorting to my “caveman” Spanish, gesturing and sprinkling my English with rudimentary Spanish. I liken the search to a treasure hunt. If you are persistent and keep asking around, you will eventually find what you are looking for. The Ecuadorian people genuinely want to help you, so step up and ask. Be prepared to pay vendors in cash, especially in the markets. Cash is king. Even if a store will accept credit card payments, your price will always be higher using plastic. When you are negotiating prices, always ask for the “cash price.” Merchants expect you to bargain, and they will be ready to quote one price for using credit cards and a different, and lower, price for using cash. Some credit card companies charge an extra fee for international transactions, and that can drive your price up even higher. If you’re having products made, be sure you are very, very specific about what you want. Don’t assume anything. Provide photos if possible, and think through every conceivable detail, including how your merchandise will be packaged and shipped. Some time ago I placed an order for alpaca scarves and blankets. When the order arrived, I could literally see some of the blankets peeking out from the box. The blankets hadn’t been wrapped, and the box hadn’t been properly taped. Needless to say, some of my merchandise was ruined. Now I know to specify exactly how I want the items to be packed in order to best protect them. If you are shipping a significant amount of merchandise home (even one large box), always check with a qualified shipping agent. This can save you lots of time, headaches, and money. A shipping agent can help you with all of the necessary paperwork to ensure that your package clears customs as quickly as possible. Check to see if the boxes can be sent using Air Cargo, which is often much cheaper and quicker than International Express Mail.

  How to Import and Export Your Products

  ©iStockPhoto.com/Olena Timashova

  Importing products into the United States

   

  Back in 2003, the U.S. Customs Service combined with the Department of Agriculture, the Immigration and Naturalization Service, and the Border Patrol to form the United States Customs and Border Protection (CBP) Agency. To avoid any confusion, when we make reference to U.S. Customs, we are referring to the customs side of the Customs and Border Protection Agency.

  Many of us have experienced U.S. Customs at some time or another, if only on returning from vacation. Bring back too many gifts, cigarettes, alcohol, or other purchases and you’ll get whacked for import duty. Very often even knowing what you’re allowed to bring in can be confusing. It doesn’t get any easier for businesses. The myriad rules and regulations for commercial importers are complex to say the least.

  Ann Gallagher, from Chicago, found this out when she attempted to import 5,000 silk scarves from Thailand. On paper, it seemed a sure-fire way of making money. Ann bought the scarves for $2.50 apiece—$12,500 in total—and paid around $1,500 for shipping, estimated U.S. Customs duties, and other associated costs. She knew she could sell the scarves for at least $17 at gift fairs, since they were selling in Chicago retail stores for $35.

  Unfortunately for Ann, the consignment was opened by U.S. Customs. They discovered the scarves had no labels detailing the country of origin or the kind of material they were made from.
  If she didn’t want the scarves confiscated, they had to be shipped back to Thailand to conform to U.S. labeling. Ann also had to make a return journey to find someone to make the labels. As well as the extra shipping costs for the scarves and her travel costs, fees and the labeling ate up another $800 in what could have been profits. “And it took around 500 e-mails to get it all sorted out,’’ she tells us.

  In this chapter, we go through the process of importing goods in the U.S.—so you don’t end up like Ann. Our main source of information is U.S. Customs itself. See their website for some excellent information and tips: www.cbp.gov/xp/cgov/trade/basic_trade/.

  U.S. Customs

  U.S. Customs is responsible for enforcing import and export laws at U.S. borders. Together with the Department of Agriculture, the Immigration and Naturalization Service, and the Border Patrol, the CBP is responsible for just about everything that moves into or out of the United States.

  As an importer, you will have to deal with U.S. Customs regularly. It’s worth taking a little time to get to know why they are there—and more importantly, how to work with them.

  The responsibility of U.S. Customs includes: calculating and collecting duties, taxes, and fees due on international trade; regulating and facilitating the movement of commodities between the United States and other nations; protecting the American consumer and the environment against the introduction of hazardous or noxious products; and protecting domestic industry and labor against unfair foreign competition. In addition, they are also responsible for investigating and detecting the smuggling of prohibited articles (narcotics, drugs, and contraband) into the United States.

  If you’re only looking to sell imported goods to help fund your foreign travels, you might be tempted to continue bringing them back “for personal use” in your luggage. No duties to pay, no forms to fill in, no additional transport costs. Naturally U.S. Customs is also responsible for detecting such devious activities. You might get away with it once or twice, but then again you may get caught first time. Don’t do it! The penalties can be pretty severe. At a minimum, you’re liable to get a large fine.

  In an ideal world of truly global free trade, we wouldn’t have to pay import duties at all. Unfortunately, we don’t live in an ideal world. Import duties are there and you have to pay them. Few people realize that import duties rank second behind income taxes as a revenue source for the federal government. When you start importing, your first contact with customs is likely to be at one of 330 official ports of entry in the United States. There are also 14 pre-clearance stations in Canada or the Caribbean.

  The importance of following correct procedure when importing goods cannot be overstated
  When you consider the amount of traffic that U.S. Customs handles, it’s hardly surprising that consignments with bad paperwork are delayed. On a typical day the Customs and Border Protection Agency:

  • Processes 965,167 passengers and pedestrians and 47,293 truck, rail, and sea containers.
  • Carries out 1,903 apprehensions at and in between the ports of entry for illegal entry; 225 refusals of entry and 75 arrests of criminals at ports of entry.
  • Seizes 11,435 pounds of narcotics.
  • Seizes 539 pest interceptions submitted to USDA at ports of entry.
  • The CPU protects 5,000 miles of border with Canada, 1,900 miles of border with Mexico, and 95,000 miles of shoreline.

  You should keep up with any new changes to procedures by regularly looking at the U.S. Customs website, www.cbp.gov. It’s a huge site. You may need some time to navigate your way around to the information you want. But it’s worth it in the long run. It can provide the answers to many of the more complex issues that we can’t cover here.

  
  Understanding the rules for importing goods into the U.S.
  is an important aspect of an Import-Export business.
  ©Reece Guth

  Understanding informed compliance

   

  In 1993, the Customs Modernization Act became law. This amended certain sections of the
  Tariff Act and various related laws. The act also introduced two new concepts all importers should know. These are “informed compliance” and “shared responsibility.”

  They mean that you, as the importer, are responsible for exercising “reasonable care” to enter, classify, and determine the value of imported merchandise. You are also required to provide all the necessary information so that U.S. Customs can properly assess duties, collect accurate statistics, and determine whether other applicable legal requirements have been met.

  It is then the U.S. Customs Service that is responsible for fixing the final classification and value of the merchandise. Importers failing to exercise reasonable care may find their merchandise delayed at customs, and in some cases, be subject to penalties.

  Customs brokers

   

  Although there is no legal requirement to use a customs broker to clear your goods, many importers opt to do so. Providing you are dealing with shipments valued at less than $2,000 and the products are not subject to restrictions, you will probably be able to clear your imports through customs yourself. However, if you have any doubts about the status of your imports, you should consider finding yourself a good customs house broker.

  Licensed by U.S. Customs to conduct customs business on behalf of importers, there are some good reasons for using a customs broker. Acting on your behalf, a broker will:

  • Prepare and file the required customs entries
  • Arrange necessary customs bonds
  • Arrange payment for duties due
  • Effect the release of goods from customs custody
  • Represent you in all custody matters
  • Advise on transport options
  • Assist with classification and dutiable values
  • Be fully aware of commodities subject to quotas
  • Deal with other government agencies if the need arises

  Customs brokers are highly trained import professionals. To become a licensed broker, a person has to pass an examination to verify a thorough knowledge of the tariff schedules and customs regulations. Once licensed, a broker must keep informed and up to date with any changes made in the customs laws and administrative regulations.

  When you take into account that every shipment entering the United States has to comply with over 500 pages of customs regulations, it becomes apparent just how complex the job can be. When a broker fills out customs forms on your behalf, each item or product in your shipment has to be classified using its Harmonized Tariff Schedule number. The broker will also make necessary arrangements to have your shipment inspected and cleared by a customs inspector. Very often a customs broker will act on your behalf in dealing with government agencies other than customs. For example the Food and Drug Administration (FDA) may have to be consulted on the product safety of some imported items.

  Although you will undoubtedly pay more for additional services, there are many brokers who will help clients choose the most effective mode of transport. Some will even provide assistance in selecting the best routes for shipments.

  A good place to start looking for a customs house broker is your local area yellow pages.
  Alternatively, full listings can be obtained from the Customs and Border Protections website here: www.cbp.gov/xp/cgov/toolbox/contacts/ports/. On the website, go to the “ports” page, and select the state. You’ll see a list of the various points of entry around the country. For example, the California list contains 20 points of entry. Choosing Los Angeles/Long Beach seaport will provide you with a full list of official contacts for that port. The same page also provides a link to available registered brokers.

  Another good source of information is the website of the National Customs Brokers and
  Forwarders Association of America (NCBFAA) at www.ncbfaa.org.

  The information in this section only covers the basic process of importing into the United States. In a course this size, it simply isn’t possible to cover each and every U.S. Customs law and regulation. Administrative changes are continuously taking place within the Customs and Border Protection Agency—and changes to procedures may be introduced at any time. Likewise, restrictions, tariffs, and quota limitations on imported products are subject to change. There is a great deal to take into account to ensure that you comply with import laws. They can be complex, and it’s not surprising that the majority of imports are handled by professionals.

  If you’re in doubt at all, use a broker or seek advice directly from U.S. Customs.

  Duty-free exemptions

   

  Depending on the countries visited and time spent away, your personal exemption for duty-free goods is $800 when returning to the United States. The items are supposed to be for your personal or household use or intended to be given as gifts…few suitcase importers admit the goods they are carrying are for resale.

  You don’t have to go through any of the normal import-export formalities. In most cases, you’ll fill in a customs card given on the airplane. To claim the $800 exemption:

  • The items have to be in your possession—that is, they accompany you when you return to the United States. Items to be sent later may not be included in your $800 duty-free exemption. (Exceptions apply for goods sent from Guam or the U.S. Virgin Islands.)
  • The goods must be declared on the customs card to Customs and Border Protection. If you don’t declare something that you have, you risk forfeiting it.
  • Your overseas stay must have been at least 48 hours. (This time limit does not apply if you are returning from Mexico or from the U.S. Virgin Islands.)
  • You have not used all of your exemption allowance, or any part of it, in the past 30 days. For example, if you go to Bulgaria and bring back $500 worth of items—you must wait another 30 days before you are allowed another $800 exemption.
  • Items are not prohibited or restricted. So no Cuban cigars.

  If traveling with a spouse or partner, you can also avail of what’s called a Joint Declaration.
  Family members living in the same home and returning together to the U.S. can combine their personal exemptions. For example, if you bring home $1,000 worth of Indonesian carvings, and your partner buys $600 worth of apparel, you can combine your individual $800 exemptions on a joint declaration and not have to pay duty.

  Leaving aside alcohol and tobacco products, children and infants are allowed the same exemption as adults.

  U.S. import requirements

   

  To ensure that your imports clear customs quickly, you need to follow procedures and regulations with great care. Some will apply to every shipment, but the exact nature of the products you import will largely determine just how many of these procedures apply to you.

  Any individual is entitled to make his own customs clearance of goods for either personal or business use. You are not required to have a license or permit. Other U.S. government agencies may require a permit or license, depending on the nature of the merchandise. U.S. Customs entry forms require you to enter an importer number. This isn’t as mysterious as it sounds.

  Basically, if you operate a legal business, this number will be the same as your IRS business registration number.

  All goods coming into the country must clear customs and, unless they are exempt, will be subject to a customs duty. U.S. Customs clearance involves a number of processes:

  1. Entry

   

  1. Inspection

   

  1. Valuation and appraisement

   

  1. Liquidation

  1. Entry

  Types of entry:

  Informal or formal?
  Informal entry can be used if the goods in a shipment are valued at $2,000 or less. This applies to personal, commercial, and mail shipments that are being entered for use or sale. There can be some exceptions. Some merchandise, for example textiles, may be subject to quotas—in this case formal entry will be required.

  All shipments—including personal ones—valued at over $2,000 require formal entry. The major difference between formal and informal entries is the bond requirement. Formal entries tend to be commercial shipments that usually require a surety bond. The surety bond ensures payment of duties and compliance with U.S. Customs regulations.

  Having a bond on file allows an importer to take possession of his merchandise before the payment of duties, taxes, and fees. Any duties due on goods admitted as informal entries have to be settled straight away so they don’t require a bond.

  Customs bonds A customs or surety bond is a guarantee from the issuing surety company to the U.S. government that an importer will fully abide by the laws and regulations governing the importation of merchandise into the United States. It is basically a means of guaranteeing that customs gets any money that it is due. Customs regulations require that a bond be posted for each formal importation of goods entering the United States. When goods are imported, it is the importer that is responsible for making the goods available to U.S. Customs for inspection, ensuring accurate labeling and packaging requirements have been met, making transaction records available for audit, and paying estimated duties and fees, where applicable. The surety company issuing such a bond guarantees the importer will fully comply with any customs regulations. Customs bonds are not a type of insurance for the importer. They do not protect the importer, nor do they relieve importers of their obligations. The surety company issuing the bond would be called on for payment if and when an importer refuses to, or cannot fulfill their obligations. When that happens, the surety company is entitled to full recovery of any loss incurred from the importer. The most common customs bond is a basic entry bond. It covers the entry of goods for immediate delivery, consumption, temporary import, warehouse entry, and withdrawals. You can apply for either a single transaction customs bond or a continuous customs bond. The single transaction bond covers just the one entry as it occurs, whereas a continuous bond usually remains in force for one year, but can be renewed annually. The amount of this bond is usually equal to around 10% of the total customs duties paid for the previous year, or reasonably estimated for the current year, but is normally not less than $50,000. The continuous customs bond also covers transactions at any U.S. Customs district or port. The cost of either a single or continuous bond will vary enormously from company to company. Factors such as what the consignment is and the country it’s coming from are taken into account. The contract brokerage service of UPS for example, would charge $30 for a single entry bond for merchandise arriving by air from Canada. A continuous entry bond would cost $500.

  In filing a formal entry for imported goods, the following documents must be submitted:

  • Evidence of right to make an entry. All shipments requiring formal entry have to be made by the owner, purchaser, authorized employee, or a customs broker. U.S. Customs officers may give an inexperienced importer assistance and advice, but they are not authorized to act as agents for importers. When an entry is made by a customs broker, a customs power of attorney has to be made in the name of the customs broker. Entry Manifest (Form 7533) or Application and Entry/Immediate Delivery permit (Customs Form 3461).
  • A commercial invoice or pro forma invoice. Obtained from the seller, this must show the value and description of the merchandise. Having a fully detailed and accurate invoice is vital to a smooth transition of your goods.

  As an example, let’s assume you have purchased a total of 300 bead necklaces from an African vendor. Your order is for eight different colors and lengths of necklaces. You may even have been able to get the same price for every item. It may seem to you, and the seller, that it’s good enough for the invoice to show 300 different colored beaded necklaces at $3 each. It’s not…

  Every last detail will be required. How many red necklaces? How many green? What material is used to string the beads? What length? What material is used for the clasps? What are the beads made of? What size are the beads in millimeters? If you’ve got eight different colors, three different materials, and two different lengths, then you need to list each separately.

  It’s also important to have them separated and marked accordingly on the invoice and packaging of your consignment.

  • A bill of lading, air waybill, or carrier’s certificate. This should, for customs purposes, include the name of the consignee as evidence of the consignee’s right to make entry.
  • Packing lists and any other documents needed to determine if the shipment can be admitted.
  • Evidence of surety must also accompany the entry. This covers any potential duties or taxes which may be due. If you are using a customs house broker, they will usually arrange a surety bond for you.

  Entry by mail
  If you are just beginning your business or are happy to operate on a small scale and will just be importing small quantities of merchandise, you should consider using the postal service—certain situations excepted. If your goods are valued at $2,000 or less, there are advantages to be gained by using this method:

  • Clearing shipments through customs is easier.
  • The duties on these packages are collected by the carrier.
  • Shipping charges are usually lower for these low-value packages.
  • No formal entry is required on duty-free merchandise.
  • You do not need to clear shipments personally.

  All mail imports must have a U.S. Customs declaration attached to the outside of the package. It should accurately describe the contents and their value. Post offices throughout the world stock these declaration forms. Commercial shipments should also have a commercial invoice enclosed or attached.

  A U.S. Customs officer prepares the entry form for mail imports valued at $2,000 or less. If the value exceeds $2,000, the addressee is notified to prepare and file a formal customs entry for it at the nearest customs port.

  There are some exceptions to the conditions that apply to the $2,000 or less limit. Just about every commercial shipment of textiles, regardless of its value, requires you to make a formal entry. This even applies to any personal made-to-measure clothes you have ordered from overseas. Various other articles valued over $250 require formal entry, these include:

  • Feathers and feather products
  • Flowers and foliage, artificial or preserved
  • Footwear
  • Pillows and cushions
  • Miscellaneous articles of plastics
  • Miscellaneous articles of rubber
  • Sports equipment, games, and toys

  A CBP processing fee of $5 will be assessed on each item of dutiable mail for which a CBP officer prepares documentation. The postal carrier will collect this nominal fee on all dutiable or taxable mail, along with the duty owed. There is also a postal fee (in addition to prepaid postage) authorized by international postal conventions and agreements as partial reimbursement to the Postal Service for its extra work in clearing packages through CBP and delivering them.

  2. Inspection

  Before any merchandise is released, a port or district director can order an inspection of your consignments. Inspections are carried out by U.S. Customs officers under controlled conditions.
  Inspection is necessary to determine:

  • The customs value of the goods and its duty status.
  • Whether the goods are correctly marked and labeled.
  • Whether they are properly invoiced.
  • Whether requirements of other government agencies have been met.
  • Whether any prohibited goods are in the shipment.
  • Whether the amount of goods is the same as on the invoice.

  Packaging of goods
  Careful packing and proper invoicing go hand-in-hand in speeding up the clearance of your goods through customs. Importing or exporting, make sure the invoice for goods is done in a systematic and clear manner:

  • Show the exact quantity of each item of goods in each box, bale, case, or other package.
  • Put marks and numbers on each package.
  • Show those marks or numbers on your invoice opposite the itemization of goods contained in the package that bears those marks and numbers.

  When packages contain goods of one kind only, or when the goods are imported in packages where the contents and values are uniform, the designation of packages for examination by customs purposes are simplified.

  If the contents and values differ from package to package, the possibility of delay and confusion is increased. Sometimes, because of the kinds of goods or because of the unsystematic manner in which they are packed, the entire shipment must be examined.

  Packing a combination of different types of goods makes it difficult for customs officers to determine the quantity of each type of product in an importation. Packing haphazardly can also lead to a variety of other complications in the entry process. No problem will arise, however, from the orderly packing of several different kinds of properly invoiced goods in a single package.

  Commingling
  If articles subject to different duty rates are packed together in such a way that customs officers cannot readily determine the quantity or value of each class of articles without physically separating the contents of any package, the combined articles will be subject to the highest rate of duty applicable to any part of the commingled lot, unless the consignee or his agent separates the merchandise under CBP supervision.

  On some occasions, goods can be sent to a customs laboratory for analysis to determine their proper customs classification. Problems may also arise if U.S. Customs finds items during the examination that are not on the invoice. If U.S. Customs believes you omitted the merchandise deliberately with the intent to avoid duty, the merchandise can be seized.

  You may receive a bill if your shipment is examined by CBP
  In the course of normal operations, CBP does not charge for cargo examinations. However, there may still be costs involved for the importer. U.S. law provides for the right of the CBP to examine any shipment imported into the United States. It is important to know that you, the importer, must bear the cost of such cargo exams.

  For example, if your shipment is selected for examination, it will be moved to a Centralized
  Examination Station (CES) for the customs exam to take place. A CES is a privately operated facility where merchandise is made available to customs officers for physical examination. The
  CES facility will unload your shipment from its shipping container and will reload it after the exam. The CES will bill you for their services. There are also costs associated with moving the cargo to and from the exam site, and with storage. Rates will vary across the country and the complete process may cost several hundred dollars.

  3. Valuation and appraisement

  All goods imported into the United States are subject to either duty or duty-free entry, depending on how they are classified by the U.S. Harmonized Tariff Schedule. When goods are liable for duty, they can be assessed at an ad valorem rate, at a specific rate, or at a compound rate (a little of each):

  • An ad valorem rate, the most common, is a percentage of the value of the merchandise.
  • A specific rate is a set amount per unit of weight or other quantity, such as eight cents per dozen.
  • A compound rate is a combination of both an ad valorem rate and a specific rate, such as eight cents per dozen plus 4% ad valorem.

  Free or favored duties?
  Rates of duty on imports vary depending upon the country of origin. The vast majority of merchandise being imported into the United States comes from countries that have “Most Favored Nation” trade status. Goods from those countries pay the lowest rates.

  Duty-free rates apply in many instances—for example, on certain imports from Mexico and
  Canada. Free trade agreements between the United States and other nations also result in duty-free status being applied on specific goods.

  User fees
  The merchandise processing fee (MPF) is 0.21% ad valorem on formally-entered imported merchandise (generally entries valued over $2,000), subject to a minimum fee of $25 per entry and a maximum fee of $485 per entry.

  On informal entries (those valued at less than $2,000), the MPFs are: $2 for automated entries, $6 for manual entries not prepared by CBP, and $9 for manual entries that are prepared by CBP. The harbor maintenance fee is an ad valorem fee assessed on port use associated with imports, admissions into foreign trades zones, domestic shipments, and passenger transportations. The fee is assessed only at ports that benefit from the expenditure of funds by the Army Corps of Engineers for maintaining and improving the port trade zones. The fee is 0.125% of the value of the cargo and is paid quarterly, except for imports, which are paid at the time of entry.

  4. Liquidation

  Liquidation is when the decision by U.S. Customs about the rate and amount of duty becomes final. You can appeal after the fact, though.

  U.S. Customs officers review HTSUS classifications and valuations to check that the importer has submitted the correct data for the merchandise being imported. If the officers believe the paperwork is in order, then “the entry (of imported products) is liquidated as entered.”

  If U.S. Customs determines that the importer has made some kind of mistake, then the entry cannot be liquidated. For example, officers might discover that the tariff classification is wrong or that the duty rate is too high. Yes, sometimes, U.S. Customs finds errors that actually work in the importer’s favor! Sometimes it’s the other way around.

  If the error is in the importer’s favor, then the entry is liquidated accordingly and a refund is authorized. If a change is needed that results in a higher rate of duty, U.S. Customs notifies the importer. If the importer doesn’t reply, then the entry is liquidated according to the corrections made by U.S. Customs, and the importer is billed for the additional duty.

  Even after liquidation, an importer can claim an adjustment or refund by filing a protest on Customs Form 19 (19 CFR 174), within 90 days after liquidation.

  Country of origin, marks, and labels

   

  U.S. trade laws require imported goods to have a mark that indicates the country of production. The mark must be easily seen, bear the name of the country in English, and be as permanent as possible. There are obviously some items that it would be impossible to mark (e.g. feathers, thread). In these instances, other requirements have to be met such as labeling any containers or packaging containing the merchandise. But basically, if an article can be marked or labeled, U.S. law requires it to be so.

  If marking requirements are not met, a marking duty equal to 10% of the assessed customs value will be imposed, unless the goods are exported, destroyed, or properly marked under customs supervision.

  Depending on the goods, merchandise that can be permanently marked is subject to different marking requirements. Knives and shears need to be die-stamped, engraved, or etched. There are specific marking requirements for parts of watches.

  Textiles and clothing must meet a wide range of marking requirements. It’s not unusual these days to see a garment that has two or three labels. These are needed to meet import regulations. Depending on the item, labels may have to include all or some of the following: fiber content (for example, 80% cotton, 20% polyester), country of origin, laundering instructions, and a trademark or manufacturer’s name.

  Quotas

   

  Import quotas are designed to control the amount of various commodities that can be imported into the country during a specified period of time. They are often designed to protect home industries such as textile manufacture. All quotas are established by legislation and provided for in the Harmonized Tariff Schedule of the United States (HTSUS). There are two types of quotas: absolute and tariff-rate.

  • Absolute quotas
    Absolute quotas restrict the amount of certain products that may enter the United States for consumption in a specific period, normally one year. When an absolute quota is filled, no further entries are allowed until the start of the next quota period. Some quotas relate to the amount of worldwide imports, while others are allocated to specific countries. Many absolute quotas get filled almost as soon as a new quota period opens. When quotas are not filled on the opening of a new period, a “first-come, first-served” basis is applied. Imports in excess of a specified quota can be placed in a foreign trade zone (FTZ) or entered into a bonded warehouse to await the opening of the next quota period.
  • Tariff-rate quotas
    Tariff-rate quotas allow for a specified quantity of an imported product to be entered at reduced rates of duty during a quota period. The amount of a tariff-rate quota product you can import is not limited, but quantities entered in excess of the quota quantity for that period will be charged a higher rate of duty. U.S. Customs may require the deposit of estimated duties at the over-quota duty rates if it determines that a quota is almost filled. When this happens, U.S. Customs officers are authorized to make the required adjustments in the duty rates.

  Commodities subject to import quotas

  The list of products subject to import quotas is fairly extensive and even applies to some products from NAFTA countries. We have listed just a few to give you an idea of how wide a product range that quotas cover. Absolute or tariff-rate quotas are in place on:

  • Anchovies, animal feed
  • Brooms, beef
  • Cheese, chili peppers, chocolate, cotton
  • Cotton or man-made fiber wool apparel, wool apparel, fiber fabrics and made-ups, and cotton or man-made fiber yarns
  • Dairy products
  • Eggplants, ethyl alcohol
  • Ice cream
  • Olives, onions and shallots, orange juice
  • Peanuts
  • Satsumas
  • Textile articles, tobacco, tomatoes, tuna
  • Watermelons, wheat gluten
  • Wire rod

  Special category imports

   

  The United States places restrictions or prohibitions on imports for several reasons. Some foreign-made products might not meet U.S. quality health and safety requirements. Other restrictions or prohibitions are designed to ensure that domestic animal or plant life is not adversely affected by foreign diseases.

  There are some goods that are either strictly controlled or totally prohibited by law from being imported into the United States. Many of the conditions that apply to certain goods are over and above normal customs regulations. Various government laws are administered by other state agencies. U.S. Customs is responsible for enforcing these prohibitions and restrictions at ports. It’s not possible to list every item that is, or is likely to be, regulated or restricted, but the following provides a general idea of the wide range of products likely to be covered.

  Arms and ammunition: These can only be imported when a license has been obtained from the Bureau of Alcohol, Tobacco, and Firearms.

  Alcoholic drinks: An importer must obtain a basic permit from the Bureau of Alcohol, Tobacco, and Firearms, Department of the Treasury. Additionally, alcoholic beverages are subject to requirements of the Food and Drug Administration (FDA). Even a straw jacket on a bottle of wine would have to meet requirements set by the Department of Agriculture.

  Foods, drugs, and cosmetics: Products of these types are regulated by the FDA under various laws. These laws prohibit the importation of articles that the FDA may deem on inspection to be adulterated, defective, unsafe, filthy, or produced in unsafe hygiene conditions. Goods that contain statements on the labeling that is false or misleading are also subject to prohibition as is any pharmaceutical that does not have prior approval from the FDA.

  Toys: Toys and other children’s articles are not allowed entry into the United States if they fail to comply with regulations set by the Federal Hazardous Substances Act. Toys designed for children under 3 must not have small parts that present a choking hazard. Regulations also allow for tests used to assess sharp edges and points on toys.

  Fruit and vegetables: A wide range of agricultural products has to comply with specific import requirements. Commodities like tomatoes, peppers, oranges, and limes must meet requirements relating to size and quality. The Food Safety and Inspection Service examines fruits and vegetables on arrival, and issues certificates of compliance for import.

  Plants and plant products: These are subject to the regulations of the Department of Agriculture and can be restricted or prohibited. Import permits are often required. Items covered include seeds, bulbs, nursery stock, roots, cut flowers, and even some cereals. Any plant that has been designated as endangered is also likely to require a permit.

  Televisions, radios, and tape recorders: All radio frequency devices are subject to the emission standards of the Federal Communications Commission. Imports of such products may need to have a declaration stating that the goods are in conformity with the FCC’s requirements.

  Reverse Importing = Exporting

   

  One way to increase your profits in importing is to look for export opportunities that lend themselves to your travels. Steve Linder did this in the jewelry business, bringing jewelry parts (known as findings) into Mexico on the way in.

  “You’ll need to identify a need and bring samples in with you, along with a price list and see what folks are looking for,” says Steve.

  “I brought ear wires, pin backs, tie bar backs, etc. I was able to make a nice profit on the way into Mexico, effectively doubling my earnings on the way back out. As long as you are going there, you might as well profit in both directions.”

  Export possibilities

  So, should you import, export, or both? Obviously you will make a lot more money by playing both sides of the field, but most people start out by importing. Exporting goods overseas requires far more in-depth knowledge. Each country will have its own laws, regulations, import tariffs, etc.

  But here’s something to think about. Say you want to start importing and you really like the idea of those Latvian sweaters with unusual designs. In fact, you could add to the range with Icelandic sweaters…Norwegian sweaters…sweaters from the Aran Islands and also the Faroe Islands.

  Unfortunately these are all European countries…and European products aren’t too cheap at the moment. What you could do is export the idea of patterned sweaters. Take the Latvian designs down to Peru or another Central or South American country—and find yourself some local knitters. You’ll get them made at a fraction of the European price. The sweaters will have to be labeled “Made in Peru” (or wherever), but there’s nothing to stop you marketing your knitwear collection as Latvian-style or Icelandic-style.

  Of course, you may already have a thriving business in the United States and are thinking about expanding your market. The U.S. Commercial Service tracks overseas trade and keeps tabs on the growth areas where money is to be made importing U.S. goods. Although individual traders invariably have to find their own way to operate in the big wide world, there is plenty of U.S. government support for companies that are considering exporting.

  But even for individuals, it’s still worth looking at the possibilities offered by the export side of international trade. When you are visiting countries to buy goods to import into the U.S., you will be making contacts. Talk with them and ask them what kind of North American-made products they would consider buying.

  Exporting: The nuts and bolts

   

  Maybe you think you can skip this section. After all, you’ve only just started out importing rocking chairs into the U.S. from Nicaragua. Your website is up and running, and you’re getting a fair few orders in. What the heck do you need to know about exporting procedures?

  Then you get this e-mail from Sven in Sweden. He wants four of the rocking chairs you’ve been importing. But you know nothing about exporting. Will you ignore him and lose a sale?

  When sending goods to Sven or anyone outside the United States, you need to know that most countries have laws and regulations about goods going into their territory. So contact Sven’s customs agency to ensure you can ship to Sweden. It is unlikely that there will be a problem with crafts, but foodstuffs, vitamins, and health care products may be prohibited.

  In addition, the U.S. might have something to say about your exports. Commodities sold for export are subject to the enforcement powers of the U.S. Customs Service and other U.S. government agencies. That goes for cars and goods with potential military applications, including some electronics and software. They must be cleared through U.S. Customs before they can go overseas. And, if you export goods worth more than $2,500, you have to follow formal export procedures.

  As an exporter—that’s anyone who sells and ships a product outside of a country—you’ll need to be aware of all the various regulations, standards, and certification requirements imposed by both the U.S. and foreign governments that pertain to your product. There’s a lot to know about. However, obtaining this information doesn’t necessarily have to be difficult and time-consuming.

  Various industry trade associations and American Chambers of Commerce overseas can provide a wealth of information on foreign export regulations, tariffs, taxes, standards, and certifications that affect their particular industry/country. Visit the American Chamber of Commerce at www.uschamber.com. You will also find a great deal of information on government websites. The most comprehensive is the U.S. Commercial Service at http://trade.gov/cs/.

  Do you need a special license to export?

   

  The short answer is no—not unless you’ve figured a way to turn your rocking chairs into guided nuclear missiles! Most export transactions don’t require specific approval from the U.S. government. However, there are certain products where an “export license” will be needed. An export license is a U.S. Government document required for “dual use” exports—commercial items which could have military applications—or exports to embargoed countries.

  Although relatively few exports require export licenses, they are required in situations involving national security, foreign policy, short-supply, nuclear nonproliferation, missile technology, chemical and biological weapons, regional stability, crime control, or terrorist concerns. License requirements are dependent upon an item’s technical characteristics, the destination, the end use, and also the end user. The Bureau of Industry and Security’s website at www.bis.doc.gov has more information on that matter.

  Export information sources

   

  You will also want to source buyers for your products. Along with the U.S. Commercial
  Service’s website, you’ll find plenty of useful information at http://trade.gov/cs/.

  Another good source is the international trade import/export portal at www.fita.org—the official website of the Federation of International Trade Associations (FITA). You’ll find news, trade events, and links to 8,000 international trade-related websites. FITA’s site includes directories of manufacturers, distributors, importers, and exporters.

  The Centre for International Trade is a member organization with objectives to improve, facilitate, and expand international trade. Its 3,500 members come from every corner of the world and include embassies, government agencies, trade associations, companies, firms, and individuals. The Centre’s site at www.centretrade.com includes:

  • Information on national rules and regulations, procedures, tariffs, industry news, and events.
  • Trade opportunities from government agencies, manufacturers, importers, exporters, and traders.
  • Transportation information including ocean freight, air freight, trucking, warehousing, and customs brokers.

  Export Institute USA at www.exportusa.com has links to world trade centers, international shippers, banks, market research, and home-business organizations. Its training center also offers online classes in exporting.

  Government support for exporters

   

  The U.S. Commercial Service promotes the export of goods and services from the United States. As an agency of the Department of Commerce, it helps U.S. companies, particularly small and medium-sized businesses, make sales in international markets. You can visit its website at www.export.gov.

  Contacts and Resources

  International Living resources

  For more coverage on all the countries mentioned in this Import-Export Blueprint, and many others, make sure you take a look at our website, www.InternationalLiving.com, where you’ll find a wealth of information, contacts and news from around the world.

  You can also find us on Facebook. We currently have more than 100,000 followers…and counting. This is a great way to get in touch with other IL readers and all our editors. Plus it’s full of fun and interesting photos, videos and much more. Find us at www.facebook.com/International.Living.

  Country-specific resources

   

  Ecuador

   

  • FedExpor; website: www.fedexpor.com. From wedding cards to disposable diapers, this website has a database where you can source products. There are also links to Ecuadorian exporters.
  • www.ecuador.com: This Ecuadorian portal has a “business center” section with trade board and business links.
  • The American Chamber of Commerce in Ecuador; website: www.ecamcham.com. This is another great resource for information about doing business in the country.
  • Ecuador Exports.com; website: www.ecuadorexports.com.
  • Quito Chamber of Commerce, (Cámara de Comercio de Quito), Av. Republica y Amazonas, Edf. De las Camaras, Pisos 5 y 6 Quito, Ecuador; tel. +593 (2) 443-787; fax +593 (2) 435-862; e-mail: ccq@ccq.org.ec; website: www.ccq.org.ec.
  • Quito Ecuadorian-American Chamber of Commerce (Cámara de Comercio Ecuatoriano-Americana de Quito), Av. 6 de Diciembre y La Nina, Edf. Multicentro, Piso 4 Quito, Ecuador Executive Director: Mr. Roque Mino; tel. +593 (2) 507-450; +593 (2) 507-451 or +593 (2) 507-452; fax +593 (2) 504-571; e-mail: info@ecamcham.com; website: www.ecamcham.com.
  • Quito Ecuadorian-Canadian Chamber of Commerce, Inglaterra 1373 y Av. Amazonas Edificio Centro Ejecutivo, Piso 2, Oficina 201 Quito, Ecuador; tel. +593 (2) 246-8598; e-mail: camara.canadiense@ecucanchamber.org; website: www.ecucanchamber.org.
  • Guayaquil Chamber of Commerce (Cámara de Comercio de Guayaquil), Cdla. Kennedy Norte, Av. F. de Orellana y Miguel H. Alcivar “Centro Empresarial Las Cámaras”, Piso 3 Guayaquil, Ecuador; tel. +593 (4) 682-771 or +593 (4) 682-779; fax +593 (4) 682-725; e-mail: presidencia@lacamara.org; website: www.LaCamara.org.
  • Guayaquil Ecuadorian-American Chamber of Commerce (Cámara de Comercio Ecuatoriano-Americana de Guayaquil) Cdla. Kennedy Norte, Avda. F. De Orellana, Frente a SITV Edf. Centrum, Piso 6, Of. 5 Guayaquil, Ecuador; tel. +593 (4) 269-3470; fax +593 (4) 269-3465; website: www.amchamecuador.org.
  • Cuenca Chamber of Commerce (Cámara de Comercio de Cuenca), Avs. Federico Malo 1-90 y 12 de Abril Edf. de las Camaras, Piso 2, Cuenca; tel. +593 (7) 284-2772; website: http://cccuenca.com.ec/.
  • Cuenca Ecuadorian-American Chamber of Commerce (Cámara de Comercio Ecuatoriano-Americana, Seccional Cuenca), Ave. Octavio Chacon 1-55 Centro Comercial del Parque Industrial, Piso 2, Of. 302 Cuenca; tel. +593 (7) 863-365 or +593 (7) 861-873; fax +593 (7) 806-512; e-mail: cceasecu@etapa.com.ec.
  • Manta Ecuadorian-American Chamber of Commerce (Cámara Ecuatoriano-Americana de Comercio, Seccional de Manta), Avenida 2da., entre Calle 11 y 12 Edf. Banco del Pichincha, Piso 3, Of. 303, Manta; telefax: +593 (5) 627-770 or +593 (5) 627-386; fax +593 (5) 627-770; e-mail: camecuatoriana@porta.net.
  • Loja Ecuadorian-American Chamber of Commerce (Cámara Ecuatoriano-Americana de Comercio, Seccional de Loja) Sucre 0949, entre Rocafuerte y M. Riofrio Edf. Ministerio de Finanzas, Piso 3 Loja, Ecuador Executive Director: Econ. Raul Miranda D.; tel. +593 (7) 571-998 or +593 (7) 576-261; fax +593 (7) 571-998.

   

  Mexico

  • The Mexico Information Center; website: www.mexico-trade.com. This is an easy-to-use portal with links to a directory of Mexico exporters, freight forwarders, etc.
  • The American Chamber of Commerce in Mexico; website: www.amcham.com.mx.
  • United States-Mexico Chamber of Commerce works to promote trade, investment, and joint ventures on both sides of the border. For more information, contact: United States-Mexico Chamber of Commerce, website: www.usmcoc.org.

   

  Nicaragua

  • American Chamber of Commerce in Nicaragua: website: www.amcham.org.ni.
  • Centro de Exportaciones e Inversiones; website: www.cei.org.ni. This website has English language sections on trade and investment.
  • ProNicaragua; website: www.pronicaragua.org. This is the government investment promotion agency. Its website covers investment opportunities and explains more about Law 306.
  • The Nicaraguan Consulate; website: www.consuladodenicaragua.com. Has plenty of information on exports, trade, etc.

   

  Thailand

  • To help you with exporting from Thailand, a number of official government websites can be of help. One is the country’s main official site, www.thailand.com. In the “Exports” section, you’ll find a trade directory with a wide-ranging coverage of Thai products and suppliers for global trade. There’s also information about trade shows, export services, and laws and regulations. For example, it’s not permitted to export antique Buddhas from the country.
  • Alibaba.com; website: www.alibaba.com. A good resource for finding Thai manufacturers.
  • American Chamber of Commerce in Thailand; website: www.amchamthailand.com.
  • Asia Trading Post; website: www.asiatradingonline.com. A directory of manufacturers, exporters, and other trading sources including shippers.
  • Northern Thailand; website: www.northernthailand.com. This website provides links to businesses in Chiang Mai and the north of the country as well as shippers.
  • Thai Trade Point; website: www.thaitradepoint.com. Companies listed here are involved in both buying and selling Asian handicrafts.

  Import-Export resources

  • Alibaba.com; website: www.alibaba.com.
  • Asian Products.com; website: www.asianproducts.com.
  • FITA; website: www.fita.org. The official website of the Federation of International Trade Associations (FITA). You’ll find B2B leads, news, trade events, and links to 8,000 international trade-related websites. FITA’s site includes directories of manufacturers, distributors, importers, and exporters.
  • Doing Business; website: www.doingbusiness.org.
  • Export Institute USA; website: www.exportusa.com. This website has links to world trade centers, international shippers, banks, market research, and home-business organizations. Its training center also offers online classes in exporting.
  • National Customs Brokers and Forwarders Association of America (NCBFAA); website: www.ncbfaa.org.
  • TSNN (Trade Show News Network); website: www.tsnn.com. TSNN has data on more than 19,500 trade shows, exhibitions, public events and conferences.
  • The Centre for International Trade; website: www.centretrade.com. This is a member organization with objectives to improve, facilitate, and expand international trade. Its 3,500 members come from every corner of the world and include embassies, government agencies, trade associations, companies, firms, and individuals. The Centre’s website includes information on national rules and regulations, procedures, tariffs, industry news, and events, trade opportunities from government agencies, manufacturers, importers, exporters, and traders, and transportation information including ocean freight, air freight, trucking, warehousing, and Customs brokers.
  • U.S. Consumer Product Safety Commission, 4330 EastWest Highway, Bethesda, MD 20814; tel. (301) 504-7923; fax (301) 504-0124; website: www.cpsc.gov.
  • U.S. Customs and Border Protection; website: www.cbp.gov.
  • U.S. Department of Commerce, 1401 Constitution Ave., NW Washington, DC 20230; tel. (202) 482-2000; website: www.bis.doc.gov.
  • U.S. Food and Drug Administration, 10903 New Hampshire Ave, Silver Spring, MD 20993-0002; tel. (888) 463-6332; website: www.fda.gov/cber.
  • U.S. International Trade Commission, 500 E Street, S.W., Washington, DC 20436; tel. (202) 205-2000; website: www.usitc.gov.

  International Tariff resources

  Information on tariffs is increasingly available on the Internet. U.S. government tariff information and schedules are also found at the United States International Trade Commission website: www.usitc.gov.

  • Asia Pacific Economic Cooperation (APEC); website: http://www.apec.org/. Members of APEC have placed their tariff schedules on this website. Members include many Asian economies, Australia, the United States, Canada, Mexico, and Chile. This section helps U.S. exporters identify which column rates apply to U.S. products, lists the costs against which tariff and tax rates are applied, and lists additional taxes collected at the border.
  • EU Taxation and Customs Union; website: http://ec.europa.eu/taxation_customs/index_en.htm. The European Union has its own tariff system—useful if you are planning to export goods from non-U.S. countries into the EU. Member states charge a common tariff on goods from outside the EU. Thereafter, those goods can circulate within the rest of the EU freely. Similarly, goods that originate in the EU circulate between member states duty-free. However, certain goods (alcohol and tobacco products in particular) are often subject to other charges such as excise duty.
  • US-Asean Business Council; website: www.us-asean.org. This organization includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Collectively, these 10 countries are home to more than 500 million people and an economy valued at $750 billion.

  Grants for export operations

  There is little available in the way of “free money” to get an export operation started, certainly not for individual entrepreneurs. However, if you own a company, the federal government has some grant programs to help you test foreign markets, orient yourself once there, and train U.S. or foreign representatives.

  • The U.S. Trade and Development Agency (website: www.ustda.gov) funds various forms of technical assistance, feasibility studies, training, orientation visits, and business workshops.
  • The Small Business Association (website: www.sba.gov) also offers some grant programs. Again, though, they’re not targeted at individuals. These grants mainly go to non-profit organizations and intermediary lending institutions, which themselves go on to provide small business management, technical, or financial assistance. But you can always take a look at other federal grant programs to see if one may fit your individual circumstances. Website: www.grants.gov.