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FAQ (frequent asked questions) Bill of Lading
Question: Who can complete a bill of lading?
Answer: U.S. flag carriers can prepare bills of lading, they also have value added services such as cargo status tracking and electronic data interchange (EDI). Freight forwarders also prepare bills of lading.
Business Plan for Importing
Question: How Do I Prepare A Business Plan For Importing?
Answer: Analyze marketing opportunity Analyze present and future market trends Identify key market segments Import restrictions/ government regulations Identify competitor market shares Compare competitor products (quality, price, reputation) Assess competitor support facilities (warehouse, sales branch, distribution hubs) Identify competitor distribution channels Identify competitor problems/ difficulties Identify competitor credit terms, commissions, or other incentives used to induce sales Identify competitor promotions and determine success Identify degree of competitor pre-sale and post-sale service Identify how long each competitor has been associated with foreign suppliers/ determine extent of relationship Determine whether U.S. manufacturers are domestically or foreign owned Identify potential advantages U.S. manufacturers have over importing competitors Assess Product Potential Identify products best suited to U.S. market Identify product competitive strengths and weaknesses Identify the needs the product fulfills Identify special skills and training needed for product use Identify product options and accessories currently available Identify installation and maintenance requirements Identify the degree to which the product needs adaptation for the u.s. market Identify how product is marketed outside of the U.S. Assess appropriateness of product quality/ price Make a Commitment List reasons for interest in U.S. market Assess existence of adequate financial base Assess ability to maintain continuing support for market penetration Determine if using market share or profit orientation Determine expected payback across time Is company basing commitment on unsolicited orders or a precise market analysis? Allocate Adequate Resources Establish personnel responsibilities and roles Estimate personnel time and resources needed Devise appropriate organizational structure to develop and serve the u.s. market Analyze how the organizational structure may need to change over time Analyze ability of current production capacity to meet current and future market demand Identify fluctuations in production/ identify causes Identify minimum order requirements (present and future) Assess willingness to adapt products (costs/risks) for U.S. market Identify capital limitation for handling inventory Assess ability to cover market development costs (travel, media) Identify Technical Issues Import documentation/ process flow Identify documents required by U.S. customers Determine payment methods Understand legal procedures Assess product classification options Identify applicable duties Determine marking/labeling requirements Determine requirement for product registration Draft Marketing Plan Executive summary Introduction Statement of commitment Situation analysis Market opportunity Target market segments Competitive analysis Assessment of product potential Operational strengths and weaknesses Resource allocation Organizational structure Marketing plan Marketing goals Product analysis and selection Warranties and services Pricing and terms of sale Distribution channels Shipping and transportation Warehousing and logistics Information systems Advertising and promotion Budget and pro-forma financial statements Implementation schedule and milestones.
Cabotage
Question: What is cabotage?
Answer: Cabotage is the trade or transport of cargo in coastal waters between two points within a country. U.S. cabotage laws are referred to as the Jones Act.
Cargo Preference
Question: What is Cargo Preference?
Answer: Cargo preference is the reservation, by law, for transportation on U.S -flag vessels, of all or a portion of ocean borne cargo which is sponsored directly or indirectly by the Federal Government.
Cargo Preference Laws and Issues
Question: Where do I get information on cargo preference laws and issues?
Answer: MARAD's Office of National Cargo and Compliance can supply information on cargo preference. Call 202-366-4610 to obtain information on civilian cargos, military cargos and agricultural cargos falling under cargo preference laws. You can also contact the MARAD HELP desk at 202-366-5508 or MARADs marketing organization, listed previously.
Copyright
Question: How do I get a copyright?
Answer: Contact the Patent and Trademark office at 703-557-3158. For copyright forms contact 202-707-3000.
Country Information
Question: Where can I obtain information concerning a specific country?
Answer: Contact the country's consulate or Embassy in Washington D.C. for information concerning the country's economic and trade-related concerns.
Customs Brokers
Question: What do Customs Brokers do?
Answer: Customs Broker: The Import Specialist The customs broker is a highly-trained import professional. Licensed by the U.S. Department of the Treasury, the customs broker must possess thorough knowledge of tariff schedules and Customs regulations and keep abreast of the amendments made through constant changes in the law and administrative regulations. The complexity of the job is evident when one considers that for every shipment entering the United States there is an official greeting: 500 pages of Customs regulations and thousands of tariff items. The broker must be well versed in determining proper classifications and dutiable value, and be fully aware of the vast number of commodities subject to quotas. Many brokers help clients choose modes of transportation and appropriate carriers, which require analyses of a vast body of data. They also provide assistance to importers in assigning shipments the best routes. There are estimates for landed costs, payments of goods through draft, letters of credit insurance, and re-delivery of cargo if there is more than one port of destination. In dealing with Customs, the broker must be aware of any potential problem involving every entry item represented, including cargo handling. This includes all factors affecting appraisement, exchange rates and the many regulations concerning calculation of duties. The broker's operation often transcends Customs, calling for contact with over 40 other government agencies, such as the U.S. Department of Agriculture (USDA) on meat importation, the Environmental Protection Agency (EPA) on vehicle emission standards or the Food and Drug Administration (FDA) on product safety.
Customs Brokers and Freight Forwarders
Question: What Is the Role of Customs Brokers and Freight Forwarders?
Answer: We urge you to visit the website of the National Customs Brokers Freight Forwarders Association of America (NCBFAA) at (http://www.ncbfaa.org) to become acquainted with the nation's premier association of customs brokers and freight forwarders. The NCBFAA represents more than 700 member companies of freight forwarders, customs brokers, NVOCCs, and air cargo agents. The information provided below is drawn from the NCBFAA website. The National Customs Brokers & Forwarders Association of America, Inc. 1200 18th Street, N.W., #901 - Washington, DC 20036 Phone (202) 466-0222 · Fax (202) 466-0226 E-Mail: staff@ncbfaa.org
Freight Forwarders
Question: What do Freight Forwarders do?
Answer: Freight Forwarder: Export Transport Architect The international freight forwarder is popularly known as the "Transport Architect." Ocean freight forwarders are licensed by the Federal Maritime Commission (FMC). International air cargo agents are accredited by the International Air Transportation Association (IATA). The freight forwarding professional advises clients of the best rates, routings and modes of transporting goods to or from any area in the world. Using the vast resources at their disposal, forwarders find the "right match" of services available so that products are moved by the most timely and cost-effective means. The large volume of freight handled by forwarders gives them advantages not always available to either individual shippers or integrated carriers. The professional forwarder is also aware of the ever-changing regulations affecting cargo movements, such as foreign documentation requirements, hazardous materials rules, U.S. government regulations, special packaging or handling restrictions, and any applicable licensing provisions. "Customized" services to fit the clients' operational needs are the forwarder's specialty. Forwarders coordinate arrangements for storage, pick-and-pack operations, consolidations or full-container movements as well as inland transportation to provide clients with true door-to-door service. From assisting with initial quotations or preparation of pro-forma invoices, the banking clients' documents for collection, the full-service, professional freight forwarder is the most reliable partner one can have in international trade.
Government Documents
Question: Where can I obtain government documents?
Answer: If a document is published by the U.S. Government call the Government Printing Office at 202-512-0000.
Import/Export Business
Question: How do I begin an import/export business?
Answer: For assistance in beginning a business, use the nationwide network of business development centers established by the Small Business Administration to assist beginning entrepreneurs with the fundamentals. To locate the Small Business Development Center near you, call 1-800-U-ASK-SBA. The Small Business Administration also has a web page at (http://www.sba.gov). This site covers a range of topics including how to get started, developing a business plan, and sources of financing.
Importing Products
Question: How can I get information on importing products into the United States?
Answer: The U.S. Government does not maintain import promotion programs such as those available to U.S. exporters. However, information on importing is usually available from the embassies of the country from which importers would like to purchase located here in the U.S. When calling, ask to speak with a commercial officer or trade attaché. Many countries also maintain foreign trade offices in the United States.
Labeling of Products
Question: Which governmental agency regulates the labeling of products, such as "Made is U.S.A."?
Answer: The Federal Trade Commission (FTC) determines whether a product can be labeled, "Made in the U S.A ", provided that it is comprised of 51% U.S parts or components. Call the FTC at 202-326-2222.
Lists of American Manufacturers
Question: Are there lists of American manufacturers and other importers?
Answer: Industry associations generally have directories of their members. The Encyclopedia of Associations or National Trade and Professional, and the Associations of the United States, publications available in many local libraries, contain lists of industry trade associations. Additional private publications, which list U.S. manufacturers and suppliers, include the Thomas Register of American Manufacturers and the Harris Manufacturing Directory. Other relevant publications include: the Directory of U.S. Importers and Exporters published by The Journal of Commerce at 1-800-222-0356 extension 6879; the Directory of American Firms Operating in Foreign Countries and the Directory of Foreign Firms Operating in the United States published by Uniworld Business Publications at 212-496-2448. These publications are also available at many local libraries.
R.N. Number
Question: I would like to register my product to get an R.N. Number?
Answer: Call the Federal Trade Commission on 202-326-2222.
Regulations and Licensing Requirements
Question: I am planning to set up my own import/export business. What are the regulations and licensing requirements?
Answer: The Federal Government does not require a company to have a license or permit to engage in the import/export business. Contact your appropriate state or local government regarding requirements and procedures for obtaining business permits.
SGS Inspection
Question: What is an SGS Inspection? Are preshipment inspections required?
Answer: The SGS Government Programs Inc. is an independent service company that carries out the majority of preshipment inspections. Preshipment inspection is an international program verifying that the quantity, quality and price of purchased goods meet the import requirements of specific countries. According to SGS, the purpose of these inspections is to monitor purchases arranged by importers in these countries. Quality and quantity are verified by the packing list and pro forma invoice. Price is evaluated based on the prevailing market price at the time specified in the conditions of sale. Verification of quality, quantity, and price also involves physical inspection. The cost of preshipment inspection is paid for by the importing country, or by the importer. The seller is only obligated to present the goods for inspection. Disputes over the final determinations of the SGS can be appealed by writing to the Appeals Committee, SGS New York. For information on the countries that require preshipment inspections, contact: SGS Government Programs Inc. at 212-482-8700.
Shipping
Question: How do I find out about shipping is a hazardous materials?
Answer: Contact the Research and Special Programs Administration at: 202-366-0656.
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