international_shipping.htm

The number of home-based export-import businesses is increasing in the U.S. and Canada as well as in many other countries, particularly in so-called developing countries. This increase is the result of economic necessity, as well as the convenience and popularity of the home-based business lifestyle. International traders enjoy having no boss and a 30-second commute just like everyone else.

No matter what product is being traded, shipping and postal issues can become complicated when the product moves from one country to another. We’ll begin with a review of basic export procedures.

Basic Export Procedures:

A “quotation” is drawn up by the seller and sent to the potential buyer. This quotation is the original offer between buyer and seller. It addresses the quantity, specific product, quality, and price. The buyer relies on this information to decide whether or not to buy from the vendor. The document is extremely important and should be reviewed at length before sending to a potential buyer since it is considered a binding contract in international trade. Unwitting errors can be very expensive to one party or the other.

After the basic quotation is accepted, buyer and seller agree on terms and sign a sales contract. This contract will go into further detail about shipping and receiving and the payment terms that will be incorporated into a Letter of Credit.

Buyer applies to his bank for a letter of credit (L/C) to pay for the purchase. Terms of a letter of credit will specify any special documents that may be required. These may include a Certificate of Origin, Inspection Certificate, Customs Invoice, as well as others. If you are dealing with hazardous materials, there is a declaration required for this as well.

When the L/C is issued, the issuing bank communicates the terms to seller’s bank.

If all terms are agreeable, seller ships the goods and furnishes all documents, including a draft to receive payment to buyer’s bank.

When all credit terms are in order, the shipping documents--including the bill of lading--are released to the buyer.

The buyer can then show these papers to the shipper and receive his goods while the seller receives payment simultaneously.
These procedures apply to imports in reverse order.

This may sound terribly complicated to a beginner, but there are two types of service providers that can clear away all the problems: the customs broker and the freight forwarder. Often these two functions are combined in the same organization. They charge for their services, but if you do much trading, you can’t get along without them.

How Do You Find a Customs Broker/Freight Forwarder?

A Google (www.google.com) search for “freight forwarder” or “customs broker” will find one wherever you are.
NetShip (www.netship.com/) specializes in shipping goods for small businesses that sell via the Internet. NetShip uses a system of 450 “virtual warehouses” to consolidate and ship on demand. They provide all required shipping services.
United States
www.forwarders.com/home/state.html: These companies provide all services including custom house, letters of credit, licenses, and documentation.
Europe
www.freightnet.com/continent.asp?c=europe
Canada
www.freightnet.com/countrylisting.asp?c=Canada: This is a very comprehensive list.
Australia, New Zealand, and Samoa
www.freightnet.com/countrylisting.asp?c=Australia and www.freightnet.com/continent.asp?c=Australasia
Other Non-U.S. Freight Forwarders www.forwarders.com/home/international.html#Europe
www.freightnet.com/
Looking at all this help should verify that international trading can be done by any business anywhere in the world.

Other Ways To Ship Goods:

UPS, www.ups.com/europe/no/using/services/intl/engintl-guide.html. UPS provides everything you need to ship anywhere in their service area. You will need to call the various telephone numbers provided on the site for help in making your shipment.

FedEx, www.fedex.com/us/international/?link=1. FedEx has a four-step shipping process to guide an exporter through its shipping system. There are sections on researching the destination country to comply with all rules and pay taxes and duties, preparing your shipping label and documents, and actually making the shipment.

US Postal Service, www.usps.com/global/welcome.htm. USPS offers extensive international shipping help for many foreign shipments with services as low as $4 USD. The Website offers help with documents, customs, and duties.
The best shipping method for you can be determined by considering such factors as size and weight, acceptable shipping time, level of shipping assistance provided, and cost per unit. If you are shipping a large quantity to the same destination, for instance, it might be best to put them all in a large container rather than shipping in small lots.

Another consideration might be your comfort level with one shipment provider over another. For example, you might feel the U.S. Postal Service is more convenient than UPS or vice versa.

Government Assistance with Shipping and Postal Issues

All countries encourage foreign trade as an economic policy. New exporters mean new jobs and inflows of foreign currency, so governments usually offer significant assistance, especially as they first become active in international trade. These include:

Australia
Austrade (www.austrade.gov.au/) is the Australian Government site to promote international trade. Through this group, a new exporter can obtain the training to learn how to export. Austrade has 105 offices around the globe to assist the small firm in networking with potential buyers. Nowhere is networking more important than when marketing to China; who you know means everything there. Austrade also has the Export Marketing Grants program that refunds up to 50% of marketing costs to exporters. In an effort to encourage banks to finance the somewhat risky export market, there is the Export Finance Insurance Corporation.

Canada
Help for Canadian traders comes from the Department of Foreign Affairs and International Trade. Canadian companies can subscribe free www.e-leads.ca/cancompanies/default-e.asp to a leads service. Foreign sales leads are delivered through e-Leads directly to a subscriber’s desktop.

China
CCPIT Net (www.ccpit.org/infosystem/index_en.jsp). Much Chinese trade promotion is done with trade fairs around the world and this site provides a list of them.

Europe
Members of the European Union promote each country’s trade individually. For a listing of the promotion activities of many European countries, go to www.business.com/directory/government_and_trade
/international_trade/trade_promotion/europe/.

United States
The U.S. government provides the International Trade Administration (ITA) (www.ita.doc.gov/). Here you will find the basics of exporting and importing. There is help with market research, quotes, and finance. You can find a calendar of domestic and international trade shows sponsored by the U.S. Department of Commerce. BuyUSA (www.buyusa.com) is a $50 USD per-year subscription service of the Department of Commerce. You can list your products and find international sales leads here.

As a home-based entrepreneur, you need to investigate international trade opportunities. You may be missing substantial income opportunities.

SOURCES:

Google search engine, www.google.com

NetShip specializes in service to small Internet sales companies, www.netship.com/

Freight forwarders in the US, www.forwarders.com/home/state.html

Freight forwarders outside the US, www.forwarders.com/home/international.html#Europe

List of forwarders in 48 European countries, www.freightnet.com/continent.asp?c=europe

Canadian freight forwarders, www.freightnet.com/countrylisting.asp?c=Canada

Australian trade assistance, www.freightnet.com/countrylisting.asp?c=Australia

UPS international shipping, www.ups.com/europe/no/using/services/intl/engintl-guide.html

FedEx four-step shipping process, www.fedex.com/us/international/?link=1

International shipping by the US Postal Service, www.usps.com/global/welcome.htm

US International Trade Administration (ITA), www.ita.doc.gov/

Austrade for Australian traders, www.austrade.gov.au/

Trade leads for Canadian companies, www.e-leads.ca/cancompanies/default-e.asp

Chinese trade promotion, www.ccpit.org/infosystem/index_en.jsp

Trade promotion for European Union countries, www.business.com/directory/
government_and_trade/international_trade/trade_promotion/europe/

Article by Yank Elliott, a home-based entrepreneur and freelance business writer in Belhaven, North Carolina, USA. His Website is www.furriwhalesworld.com. He is currently a staff writer for IAHBE. Contact Yank at globalbiz@furriwhalesworld.com.