I am trying to learn more about the Importing process.  Please keep in
mind that I have done quite a bit of research, I just need it all put
together to understand it all correctly. Although this question has
multiple parts, I did not feel as if any question was worth separating
into its own question because this is all very broad importing
knowledge with small specifics behind it.   It is basically an answer
broken down into sections for specific answers. I couldn?t imagine
this question taking too long as the research is mainly done.  I am
mostly requesting Knowledge from Experience.

I have broken this question down into short categories.  
Please Note- This symbol (*) is my comments on the question to help
you better understand my understanding so time is not wasted on known
knowledge

To help you better understand my personal situation.  I hope to import
various products from manufacturers in other countries.  These
products include consumer products such as computer related products,
electronics, and things of this nature.  They are mostly consumer
based products that already are in our market, and some are new.  The
shipping for samples of products will be via air and Sea Freight. 
Product orders will be shipped via Sea Freight to a New York or
Connecticut USA port.

1.)What are the general overall ?rules? of importing from other countries?  
*I will be working specifically with China and India at the time.

2.)I understand that there are taxes and tariffs that must be paid. 
What is a good way to find out the exact percentages based on the
materials/products you are importing? Country/Dock/Port/City?
* I have reviewed import regulation sites that have given long lists
of categories.  How do you go about knowing which category your
product falls into? Where in the process do taxes and tariffs take
place?  The site I have reviewed is:
http://hotdocs.usitc.gov/tariff_chapters_current/toc.html  I would
like to understand how I know specific categories I fall into.

3.)Is a trade broker necessary?  Are they very costly? 
* My understanding is that they will be the one to figure out the
correct category and percentages owed.  They will also arrange Customs
and pick up or arrange shipment from local port.  Is this correct? Are
they recommended?  If not, would it be wise to possibly use one at
first, and then do it myself once I understand the entireprocess?

4.)Is a special license/certificate required to import average goods? 
In this I mean nothing that is hazardous.  Mainly consumer goods.
* Must any license be obtained for average importing?

5.)What is the Pick up process from the port? Customs/Taxes/Tariffs/Etc
* I would imagine it to be you go to the claims/pick up department. 
Show proof of delivery and package details (Boat info, origin, etc)
They then pass the paperwork and products on through customs and
inspection.  You then pay taxes/tariffs/fees that are due and you then
obtain your package?  Please give me a short run down on the actual
process.

6.)What is the main difference between the chosen delivery port?  Are
certain ports better than others?  Do boats only stop at certain ports
from certain countries?  Is there a reason to go to one port over the
other?
* Reason I ask is that I live in Connecticut.  Ports are located in
both Bridgeport,CT as well as New Haven,CT.  These are less than ½
hour driving distance.  I can also go to the New York City Ports which
are roughly 1 + hours.  I am certain that the New York ports are
easily useable by my suppliers; I am just wondering the differences. 
I was also told once that the port that you choose makes a difference
in some of the fees paid.  Do ports charge more than others?

7.)Is there Insurance coverage available against theft?
* I would imagine this is a smart idea to protect myself? Are they usually costly?

8.)How does Shipping Space Work exactly?
* I understand that shipping space is allocated in 20 and 40 foot
containers.  My needs are very minimal.  A few of my suppliers have
said that shipping is available as small as One Cubic Meter.  Which
translates to a US Box of 3 feet by 3feet by 3 feet.  When shipping by
the Cubic Meter, In theory, is someone purchasing a full container and
then selling off a managed cubic foot of their full container?  I am
just trying to understand this more in depth.

9.)How are Shipments Tracked?
* I would imagine they give you the Boat Information and scheduled
port arrival as an estimated guide?


I also am posting another question that asks how to introduce a new
product to the US market.  If you have knowledge of both importing AND
new product knowledge, please visit my next question as well.

Please ask comments before posting answers so I can receive the
answers I am looking for.  I am looking for very specific answers as I
know lots of information on the topic. I just need major sorting and
reassurance.  I thank you for understanding

I have many connections and prospects ready to send products and I am
at the point where I am ready to begin importing.  I look forward to
the knowledgeable person who chooses this question and posts a
knowledgeable reply.
Thanks

---

Clarification of Question by italy500-ga on 10 Mar 2004 20:02 PST

Hello fobchina, I have posted a reply to your comments below.  Please
review them and reply again.  I thank you for your time and knowledge.
Thanks

---

Clarification of Question by italy500-ga on 11 Mar 2004 20:05 PST

Posting this again Just incase it will notify you of my response. Thanks

Hello fobchina-ga,
And thank you for the very knowledgeable reply.  As I can tell from
your comments, you are definitely the person I have been seeking to
help me better understand this entire process.  May I ask, are you a
trade broker handling imports and exports for others? Or do you import
for yourself?  I am just trying to get to know your situation a bit
more so it helps me to understand mine.

On to my next responses from your comments, I have come up with a few
more questions with a bit more detail.  I have contacted 2 different
trade brokers and received pricing on their services.  If at all
possible I would like to know where, if at all, I can try to save a
bit by doing some of the process myself.

***Please Note, I will list my questions in discussion form as I
explain and then will list them again towards the bottom just so none
are hidden or missed***

I would like to start by letting you know that my first orders will be
under $1000 worth of goods.  I am trying to start this as a small side
venture that I am hoping will eventually become something very big.

So with this in mind, I contacted 2 different Import Brokers in New
York.  They broke down the pricing and were both very competitive in
rates.  The fees were as follows:

Initial Entry Fee:		$125 with 1 customs classification
Additional classifications:	$8 each

Messenger Fee:		$30 for paperwork,mailing,etc

Customs Bond:		$525 yearly
			$4 per $1000 of goods imported with a $35 minimum
			(This is obviously the route I would want to take)

I was also told of some other small fees that were minimal such as:
Harbor Maintenance Fee:	0.125%
Other Random Fee:	0.21%

The paperwork requested to begin the process would be:
1.)Bill of Lating (This may be spelled wrong, The man spoke very fast)
2.)Invoice of Purchased items
3.)Package List

He said that this would be sufficient to begin the import process.  He
also let me know that pick-up and truck freight was available once
they reached the port.  I let him know that I may want to pick it up
myself to save costs and said this would be fine.

Now here is where my questions come in.  I understand that their
expertise is a necessity and they certainly charge for this.  Overall,
these fees seem to be a little hefty for the type of importing I plan
to do in the very beginning.  I am sure that there must be a few of
the procedures that I can do myself to cut costs.  So this is my
question, what exactly can I possibly do myself to save cost, and what
should be done by them to save myself from trouble.  I know that I
should probably leave it all up to them but I simply cannot afford to
pay these fees right now.

I have reviewed the Tariff schedule and understand the classification
process enough to narrow down my products.  I am also very open to
learning any procedures that must be carried out to successfully pass
the shipment through customs.  As you can see, I guess I am searching
for someone to give me a hand, and basically review my claims rather
than do it all for me.  I cannot afford the luxury of having it all
done because the items I will be bringing in will not be turning me
enough profit to make it worth my while at this time.


1.	What exactly can I possibly do myself to save cost, and what should
be done by them to save myself from trouble?
* Is this process able to be done myself, or at least the bulk of it?

2.	Are the fees that I have listed the average pricing from your experience?
* Just trying to know if this is high or low for the industry on average

3.	Is the online Tariff schedule maintained with current rates? And
would this be the best way to find my product categorizations and
percentages?
* I have looked around this a bit just for review and understanding

4.	Do you think that someone would be willing to act as a guide and
simply charge me less for reviewing my information rather than doing
it all for me?

I would be open to any suggestions if you personally provide services,
or if you know someone personally that may be open to something like
this.  I guess in my eyes, this is the only way that I will be able to
begin importing while still being able to make any profits.  The only
other option is to take a bigger risk by ordering more and just hiring
a trade broker.  Just keep in mind that I am a go-getter and would
rather do it myself if possible any how.  I look at everything I
research and do as a learning experience that will benefit me in
anything I do.  I am a fast learner and understand concepts and
guidelines well.  Please let me know if you can help me out, or find
someone that may be able to that will accept smaller fees for
reviewing the work and helping out rather than doing it all.

This also leaves me to ask one more related question.  As you said
previously is that you are involved in the importing/exporting field. 
This I would imagine means that you either personally import and send
out products, or you are a trade broker and do this service for
others.  So now I am wondering, where do many people sell there goods
wholesale that they have imported into the USA?  How can I go about
finding these resellers.  Living near New York there should be plenty.
 Should I do a search for importers in my area?  Is this how they list
themselves?  Business names including key words such as Import, trade,
etc? Please let me know.
I figure if I cannot import myself maybe for now I can find an
importer that is importing similar items and purchase them wholesale
direct without the hassle of the import process.  Please give me any
pointers on locating them.  Just always keep in mind that my ultimate
goal will be to import myself in the end.


Ok fobchina-ga,
I would like to thank you again for all of your knowledge as well
taking the time out to reply to my many questions.  Your knowledge and
experience to me is very helpful and I am glad that you have decided
to reply.  I will look forward to your next reply.
Thanks
F S

italy500-ga,

With years of sourcing experience and knowledge of both US/China
Imp./Exp., I think I am in a niche position to answer your questions.
All questions are applicable to import from China.

Answer to your Question 1:

1) Make sure whether your products suffer the quota or any other
special requirements. Based on what you said, I think it should be
fine. If you would plan to import AC electrical products into US, make
sure they are UL listed.

2) Contact the local custom broker to get the idea of the tariffs on
your specific products/category. Professional support would make
things much easier.

3) Source from China. Several sub rules here: Only contact
manufacturers/factories, no middlemen; Under some circumstance, you
will need find the local resource to work on your side, especially
purchase a variety of products from different suppliers; Try to keep
your ordering quantity at the reasonable level to get the bargaining
power.

Detailed steps: identifying the manufacturers; negotiating the
pricing/term; sampling and confirming; production; shipping; etc.


Answer to your Question 2:

As what I said above, the best way to go is to contact a local custom
broker to get all these of information. Their professional
knowledge/service would be a big help to you. You will still need
their assistance when you deal with custom clearance.

In a word, it would be worth to pay for this.


Answer to your Question 3:

It would be necessary to contract with a local custom broker if you
would import products through air and ocean freight. They will provide
the knowledge of tariff and custom clearance service.

As for the shipping issue, you have to contact another freight
forwarder to get the details, such as shipping rates, shipping
schedule, etc.

The exporter or sourcing agent in China could provide the similar
shipping support, if wanted.


Answer to your Question 4:

No special license/certificate/authorization required to import your
goods, as long as they are not those products suffered the special
regulation.

The custom broker could cover this for you.


Answer to your Question 5:

The detailed processes are pretty standard. You will get the
notification and shipping documentations from bank (L/C term) or air
carrier (air freight), then you need to complete the custom clearance
with the support from your custom broker.


Answer to your Question 6:

The main difference is that you could have different choice of
shipping carriers and schedule. Of course, some ports would be closer
to you and more convenience for delivery and you could save a little
for local transfer.

A local freight forwarder, even custom broker, could give you a
detailed explanation. I am only familiar with western coast where I
lived with.


Answer to your Question 7:

Of course, the insurance would be available and generally it would be
calculated based on your goods? value.

Different transaction terms here:

1) FOB: only goods? cost, not including shipping and insurance.

2) CIF: includes goods? cost, shipping and insurance.

For the detailed rate, you need contact the carriers.


Answer to your Question 8:

You are talking about ocean freight here. Those 20?/40? orders are
generally called FCL order, full container loading orders.

For smaller order, you could choose LCL. For ocean freight, the
minimum option is One Cubic Meter. The shipping rate would be a little
higher and it could take longer because the carrier needs to
consolidate all LCL orders.

No need to concern the detailed back-end option because the carrier
would take care of everything.


Answer to your Question 9:

You could get all shipping info through freight forwarder.


Hope the above info would be helpful to you. Please contact me through
Google Answer if you would have any other question/concern.

Hello fobchina-ga,
And thank you for the very knowledgeable reply.  As I can tell from
your comments, you are definitely the person I have been seeking to
help me better understand this entire process.  May I ask, are you a
trade broker handling imports and exports for others? Or do you import
for yourself?  I am just trying to get to know your situation a bit
more so it helps me to understand mine.

On to my next responses from your comments, I have come up with a few
more questions with a bit more detail.  I have contacted 2 different
trade brokers and received pricing on their services.  If at all
possible I would like to know where, if at all, I can try to save a
bit by doing some of the process myself.

***Please Note, I will list my questions in discussion form as I
explain and then will list them again towards the bottom just so none
are hidden or missed***

I would like to start by letting you know that my first orders will be
under $1000 worth of goods.  I am trying to start this as a small side
venture that I am hoping will eventually become something very big.

So with this in mind, I contacted 2 different Import Brokers in New
York.  They broke down the pricing and were both very competitive in
rates.  The fees were as follows:

Initial Entry Fee:		$125 with 1 customs classification
Additional classifications:	$8 each

Messenger Fee:		$30 for paperwork,mailing,etc

Customs Bond:		$525 yearly
			$4 per $1000 of goods imported with a $35 minimum
			(This is obviously the route I would want to take)

I was also told of some other small fees that were minimal such as:
Harbor Maintenance Fee:	0.125%
Other Random Fee:	0.21%

The paperwork requested to begin the process would be:
1.)Bill of Lating (This may be spelled wrong, The man spoke very fast)
2.)Invoice of Purchased items
3.)Package List

He said that this would be sufficient to begin the import process.  He
also let me know that pick-up and truck freight was available once
they reached the port.  I let him know that I may want to pick it up
myself to save costs and said this would be fine.

Now here is where my questions come in.  I understand that their
expertise is a necessity and they certainly charge for this.  Overall,
these fees seem to be a little hefty for the type of importing I plan
to do in the very beginning.  I am sure that there must be a few of
the procedures that I can do myself to cut costs.  So this is my
question, what exactly can I possibly do myself to save cost, and what
should be done by them to save myself from trouble.  I know that I
should probably leave it all up to them but I simply cannot afford to
pay these fees right now.

I have reviewed the Tariff schedule and understand the classification
process enough to narrow down my products.  I am also very open to
learning any procedures that must be carried out to successfully pass
the shipment through customs.  As you can see, I guess I am searching
for someone to give me a hand, and basically review my claims rather
than do it all for me.  I cannot afford the luxury of having it all
done because the items I will be bringing in will not be turning me
enough profit to make it worth my while at this time.


1.	What exactly can I possibly do myself to save cost, and what should
be done by them to save myself from trouble?
* Is this process able to be done myself, or at least the bulk of it?

2.	Are the fees that I have listed the average pricing from your experience?
* Just trying to know if this is high or low for the industry on average

3.	Is the online Tariff schedule maintained with current rates? And
would this be the best way to find my product categorizations and
percentages?
* I have looked around this a bit just for review and understanding

4.	Do you think that someone would be willing to act as a guide and
simply charge me less for reviewing my information rather than doing
it all for me?

I would be open to any suggestions if you personally provide services,
or if you know someone personally that may be open to something like
this.  I guess in my eyes, this is the only way that I will be able to
begin importing while still being able to make any profits.  The only
other option is to take a bigger risk by ordering more and just hiring
a trade broker.  Just keep in mind that I am a go-getter and would
rather do it myself if possible any how.  I look at everything I
research and do as a learning experience that will benefit me in
anything I do.  I am a fast learner and understand concepts and
guidelines well.  Please let me know if you can help me out, or find
someone that may be able to that will accept smaller fees for
reviewing the work and helping out rather than doing it all.

This also leaves me to ask one more related question.  As you said
previously is that you are involved in the importing/exporting field. 
This I would imagine means that you either personally import and send
out products, or you are a trade broker and do this service for
others.  So now I am wondering, where do many people sell there goods
wholesale that they have imported into the USA?  How can I go about
finding these resellers.  Living near New York there should be plenty.
 Should I do a search for importers in my area?  Is this how they list
themselves?  Business names including key words such as Import, trade,
etc? Please let me know.
I figure if I cannot import myself maybe for now I can find an
importer that is importing similar items and purchase them wholesale
direct without the hassle of the import process.  Please give me any
pointers on locating them.  Just always keep in mind that my ultimate
goal will be to import myself in the end.


Ok fobchina-ga,
I would like to thank you again for all of your knowledge as well
taking the time out to reply to my many questions.  Your knowledge and
experience to me is very helpful and I am glad that you have decided
to reply.  I will look forward to your next reply.
Thanks
F S

italy500-ga,

Just saw your comment. Quite busy to prepare for the coming trade show
in Shanghai. I am glad that the info would be helpful to you.

First, I would like to respond to your general questions:

Due to the Google Answers' policy, I could not provide you my detailed
background. What I could tell you is that I have expertise in
sourcing/international trade with my professional experience in both
US and China. It looks we are getting to the detailed trade issues. To
protect both you and our interest, I would recommend to have further
"technical" discussion under the counter. Maybe you could get my
contact info through Google Answers.

The pricing you got is pretty standard and no big difference among the
custom brokers. I do not see the big difference between what you got
and what I know at the west coast. There would only have minor
difference between air and ocean freight.

The three key documentations are as follows:
1) Bill of Loading (not Bill of Lating)
2) Invoice
3) Packaging List

My general recommendation would be that you do not consider the ocean
freight as your shipping option unless your goods are more than one
cubic meter. Most importers would place FCL (full container loading)
orders to get the most benefits of ocean freight. All custom-related
charges are calculated based on your shipment, not your transaction
value.

For such a $1000 order (I would prefer to call it a trial order), the
best way to go is to use the service provided by UPS/FedEx. They would
save you from the hassle of the import process.

Now, let us go through your four questions quickly:

Answer to Question 1:

As I commented above, unless your orders reach a reasonable level to
make your consider to do this by yourself, focus on developing your
business and identifying more buyers/clients.

Once you would reach that point, with the support from custom broker
and freight forwarder, you could manage this process well. It is
pretty straightforward.

Answer to Question 2:

The pricing looks reasonable.

Answer to Question 3:

Yes, the online Tariff schedule is a good one. But in the real
practice, you have to confirm with the custom broker because sometimes
we could make errors.

For referential purpose, that would be enough.


Answer to Question 4:

Maybe you could find such a resource locally. If wanted, I would be
glad to guide you through the details if I could find some free time.

Please let me know if you would have any other question/concern.

Good luck with your import venture.

T S

One thing that you can do is call the local U.S. Customs office and
ask them what is required (trust me, this works). I know for a fact
that if you are only importing $1000 worth of goods and those goods
are not a "quota visa " item(a term used that means there is a limit
on the amount of this classification that can enter the country per
year, ie. textiles) then you can make what is called an "imformal
entry" and you don't need a Customs broker. The reason one needs a
customs broker is when importing higher value shipments "formal entry"
when a "Customs bond" is required by the govt. This bond is required
to ensure that duties are paid. By using a Customs broker you are
paying to use his bond rather than posting the bond yourself which can
be quite hi at times.  Just give your local Customs office a call and
ask.  Good luck.

Thank you kb5zcr-ga for your comments.

To start, both of you have given me Just about all of the answers I
could have possibly hoped for, so THANK YOU BOTH !!!

To kb5zcr-ga, I did some minimal quick research on what you have
stated and found that an "informal" import is less than $2000 and does
not require as strict levels of customs, bonds, etc.
May I ask, have you ever done this personally?  I look at it as this
may be the only feasable option to turn a profit at this current time.
 Please give me any pointers.

Also, have you ever used a service like:
http://www.clearedanddelivered.com/
or
http://www.citusit.com/tfshopper.htm

They seem to do some of the dirty work for cheap.

Any additional info will be great.

Again, I want to thank you both for such knowledge and most
importantly, the time you took to share it.  I would like it very much
to gain a relationship with you both off of google answers if that is
some how allowed.  I feel that it would be beneficial for us all and
we could be just another "friend in the Business" to eachother.  If
you know if this is allowed in any way, please let me know.

As far as my questions, anything else you can share would be great.
I appreciate good people like you both.
Thanks Again
F S