Thinking Globally, Acting Locally

By Jennifer Henczel, Import Export

There are a lot of risks involved in the import/export industry. Since you're paying in advance for goods which are being manufactured across the globe and you are dealing with different cultures and attitudes, it extremely important to ask the right questions and get everything in writing. MAKE NO ASSUMPTIONS

In many instances foreign governments side with their own nations no matter what the circumstances. In some cases, U.S. companies can be prevented from modifying or terminating its relationship with foreign manufacturers no matter how good the reason, without it costing them an arm and a leg. Customs and trade attorneys make a good living trying to keep importers out of trouble -- so know your business -- and don't take chances.

One of the items you will want to be very clear about is the currency of payment (some governments don't like payment in dollars), but as a hedge against inflation, it is imperative. Also keep in mind that if a price sounds too good to be true it probably is. If you import something that is selling under the price manufacturers receive in their country, this is "dumping" and the U.S. customs will embargo the goods. You may even be hit with a retroactive embargo.

Like I always say, increased research equals decreased risk.

The paperwork and regulations can seem overwhelming at times, but don’t let it stop you from reaching your goals and achieving your dreams. Start by check with your bank about letters of credit, which is a common form of international payment. Also, shop around for a good customs broker, their services and expertise are worth the fees that they charge. Here is one source for finding a customs broker:

FCBA - International Federation of Customs Brokers Associations International Federation of Customs Brokers Associations. www.ifcba.org

I would also like to direct you to my Ethical Trade / Fair Trade article click here. It It is essential to trade ethically in all circumstances.