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The Import Process Every country processes imports. In some, the import process is minimal; in others, delays for paperwork and official authorizations can be significant. Some countries offer accelerated customs clearance, but a trader must still file proof of source and destination, complete certificates and forms, and satisfy local customs officials. Even for products subject to no import restrictions, certain data is usually furnished to a customs authority so the government can compile trade statistics and assess fees and taxes. Importing is always evolving. To decrease border delays, many countries are consolidating departments, revamping reporting requirements, and implementing computerized systems. Some allow for preshipment inspections and pre-entry filings. Traders should keep checking for new options. Government Regulation Import requirements depend on the laws and regulations of the importer's own country, not those of the exporting country. In general, a country has one authority that is primarily responsible for administering its import laws. Depending on the type of product, a number of other authorities may indirectly control the process, as well. These may include agencies that enforce health, agricultural, environmental, transport, navigation, construction, and consumer laws. Thus, traders must comply not only with import laws, but also with all other laws specifically regulating the consumption or use of the product within the importing country. For some products, government regulations are so complex that traders typically retain customs brokers or freight forwarders to assist in compliance. Pershipment Consideration Costly delays or rejections at the border can usually be kept to a minimum with advance planning. Licenses, permits, duty payments, inspections, shipping, packaging, and insurance can usually be arranged before shipment. Licenses and permits For goods that may be imported only with government authorization, the importer may have to obtain a permit or license before entry. In some countries, all importers must be licensed regardless of the product. Permits and licenses are usually issued for a fee, and periodic renewals may also be necessary, again for a fee. Intellectual and industrial property rights If a patent, trademark, service mark, copyright, or other similar right in a product is to be protected wherever sold, that right may need to be registered in a country before the product is distributed there. Otherwise, it may be irretrievably lost. Registration procedures differ substantially, and so does processing time. Entry of Goods Type of entry When goods reach a port of entry, they are held until the entry process is complete, after which they are released into that country. Many countries allow for different types of entries depending on the purpose for importing. A standard entry is one for consumption-the products will be sold or otherwise used in the importing country. Some countries offer temporary entry for test, trade fair, or market samples. A few countries offer incentives, such as free trade zones or bonded warehouse facilities, to encourage in-country processing of goods for re-export or later entry. Other entry requirements apply to products sent through international mail. Customs Clearance Depending on such factors as the nature of the product, size of shipment, country of import, available automation, and shipper's reputation, the entry process may require hours, days, weeks, or even months. Most shipments can be immediately released for transport into the country. Goods not immediately released are held at the border or transferred to storage facilities in bond, if available, to await processing. Officials may also reject goods for noncompliance and return them to the shipper. A trader can usually keep border delays to a minimum by preparing in advance to meet the following requirements: Standard documentation Product compliance Payment of assessed duties and other charges Standard Documentation At entry, a customs official will require the importer to present documents describing the goods and indicating that all entry requirements have been met. In general, if import documents have not already been filed, importers are allowed a certain amount of time to prepare and present the proper documentation. Although these documents differ from country to country, the following are fairly standard. Application for entry Typically an importer is required to file a brief form to inform the customs authority about the importer's identity and the type and quantity of goods being imported. Invoice Nearly every country requires some form of commercial invoice, or a pro forma invoice. The commercial invoice is usually fairly detailed, describing the products being imported (such as name, type, classification, quantity, grade, value, markings, labels, packaging) as well as certain aspects of the transaction (such as price per unit and total price). Bill of lading or air waybill An international carrier usually issues this document to the shipper. It sets forth the conditions of transport and serves as a receipt and evidence of ownership for the goods. Packing list Shippers commonly enclose or attach a list naming the goods and quantities included. Declarations or certificates Various declarations or certificates may be required as proof of compliance with import requirements. For example, certificates or declarations may be needed to show ownership, consulate approval, government authorization, quality control, country of origin, treatment for pest infestation, sanitary production, quarantine compliance, and inspection. Bond or other guarantee In some countries, customs authorities may agree to release goods for entry into the country before the importer has paid all assessed amounts, provided that the importer posts a bond or other guarantee sufficient to cover the amount owed. Product Compliance Inspections While import documentation is being completed, customs officials will most likely review the goods for compliance with import laws. This process may include examination of the entire shipment or samples from it, as well as its outer and inner packaging. The shipment may be counted and weighed and, for some products, may be subject to laboratory testing. Inspectors will verify that the shipment complies with the country's laws and matches the invoice description. To reduce freight congestion at the border, some countries have established preshipment or bonded post-shipment inspection programs. Marking and labeling Goods may be rejected if their marking and labeling fail to meet legal requirements. Common mandatory markings include country of origin and name of manufacturer. Labels must usually state product components and adherence to applicable technical standards (such as flammability, energy efficiency, or hazardous emissions). In some countries, goods may be stored while bringing them into conformance, in which case release is delayed for a fixed time after which the goods are rejected if still not properly marked or labelled. Prohibitions and Restrictions Quotas To exercise control over the quantity of certain imports, some governments impose absolute or tariff-rate quotas. An absolute quota prohibits additional imports once a fixed number have been entered within a certain period. Under a tariff-rate quota, a fixed amount of goods can be entered at a reduced duty rate during a certain period. Goods imported in excess of that amount are subject to a higher duty rate. Restricted imports Every country restricts imports of certain products, and customs officials will reject such imports if presented for entry without strict adherence to the law. Imports commonly prohibited or restricted include articles that are perceived as a significant threat to the country's public health and welfare, environment, national interest, and economic interest. Import Duties Dutiable status In countries that impose duties (or tariffs) on imports, the customs official's examination of the documents and products in a shipment usually leads to a determination of dutiable status. This is typically a two-step process: classification and valuation. If duties are assessed, the goods are released from customs only after payment is made or, if permitted, after a bond is presented to secure later payment. Classification In an effort to impose duties uniformly, most countries classify imported goods into categories of a duty schedule. For this purpose, many countries have adopted a version of the international Harmonized System (HS), dividing nearly all products into about 100 product groups. Valuation If duties are based on an ad valorem rate (a percentage of value), a value must be fixed for the goods. Valuation formulas differ from country to country. Some countries use FOB (free onboard), others use CIF (cost plus insurance plus freight), and still others use transaction value. Other Assessments Customs fee Many countries charge a customs processing fee to cover the costs of inspection and approval. It may be levied as a flat charge or a percentage of the value of the goods. Value-added tax (VAT) Some countries impose a value-added tax on imports. This tax is assessed on the amount by which the value of goods has been increased because of importing. The value is considered to increase, for example, by the tariff assessed, any customs fee paid, and the shipping, insurance, and related transport charges. | ||
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1. To obtain raw materials unavailable in your own country. 2. To acquire products not manufactured in your own country. 3. To buy directly from the source of supply when that source is located in a foreign country. 4. To exercise better control over the supply of foreign- made products, rather than depend on a domestic source. 5. To pay a lower price than is offered domestically. 6. To contract for overseas manufacture of products when the cost is lower or specialized labor is unavailable domestically. 7. To have a foreign supplier provide made-to-order products according to your specifications. 8. To follow up specific business connections in other countries. 9. To take advantage of incentive programs and subsidies offered by other countries to investors producing exports. 10. To earn a living while traveling. 11. To expand your established business line by offering foreign products or services. 12. To expand an established domestic business into a global operation. | ||
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1. Business knowledge and experience The experience and ability to operate a business effectively. 2. Knowledge of the import process Experience with, or knowledge of the entire import process from finding suppliers to customs entry and clearance. 3. Knowledge of product Thorough knowledge of the products you plan to import, based on experience or knowledge gained from being a broker, designer, manufacturer, retailer, wholesaler, or other international trade professional. 4. Knowledge of costs Knowledge of all costs of obtaining and bringing the product to market. 5. Access to low cost supply Ability to obtain quality products or commodities at the source for the lowest possible price. 6. Relationship with suppliers Ability to establish and maintain a good working relationship with suppliers. 7. Ability to establish a market Ability to find or develop a market for the goods. 8. Knowledge of price structure Knowledge of the pricing structure for the imported goods that enables you to know how much to pay and how much to charge. 9. Knowledge of the market Specialized knowledge of the wholesale, retail, mail order, or other market for the product, based on actual experience or special knowledge. 10. Ability to sell to a specific market efficiently Past experience or special knowledge that enables you to sell your product or commodity for the highest possible price once you have imported it. 11. Working capital An appropriate amount of working capital for the size and type of import operation you envision. 12. Use professionals Your ability to establish and maintain good working relationships with your professional partners:
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16 Difficult-to-Import Products 1. aerospace products 2. animals (live) 3. animal products (nonfood) 4. beverages 5. chemicals 6. combustibles 7. cosmetics 8. drugs 9. explosives 10. foods 11. radioactive materials 12. radiation-producing products 13. radio frequency devices 14. used merchandise 15. vehicles 16. weapons 20 Easy-to-Import Products 1. artwork 2. brushes 3. crafts 4. flowers (artificial) 5. gems and gemstones 6. glass and glass products 7. household appliances (electronic or mechanical) 8. jewelry 9. leather goods (not from endangered species) 10. lighting fixtures 11. metals (base) 12. musical instruments 13. optics and optical products 14. paper and paper products 15. pearls 16. plastics and plastic products 17. rubber and rubber products 18. saddlery 19. sporting goods 20. tools (hand implements, utensils, machine tools) Commonly Prohibited Items 1. food products raised or processed in pest-invested or disease-ridden regions 2. products derived from endangered species if the country is a member of the Convention on International Trade in Endangered Species (CITES) 3. products that violate intellectual or industrial rights laws 4. materials considered pornographic 5. national treasures, including archaeological finds |