Successful Sourcing and Importing Overseas

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Successful Sourcing and Importing Overseas

• Tim Redhed

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Overview

• Purpose of this class
• Offer practical, real-life advice on how to
  effectively source and import products
• Background
• Tim Redhed
• Global Sourcing Specialist
• YourBuyer Inc.

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Sourcing

• Overview using common sense
• Does it make sense to import the product?
  Weight, labor, commodity vs. specialized
• What are the likely countries?
• Trusting your instincts
• Avoiding assumptions
• Guerrilla sourcing

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Sourcing, contd

• Searching for suppliers
• Google vs. Trade Portals
• Specific portals Alibaba, HKTDC, Global
  Sourcing, TradeEasy
• Gold or preferred suppliers
• Foreign consulates export promotion
• Referrals

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Sourcing, contd

• Trading groups vs. manufacturers
• How to differentiate
• Pros/cons
• Contacting
• Email vs. Fax vs. Phone vs. In-person

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Importing

• Ok, I found a vendor, NOW what do I do?
• Find a good customs broker
• Find a good freight forwarder
• CIF vs. FOB pricing

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Negotiating

• Cross-cultural communication
• Do your homework on the culture
• Listening as an art
• Buying is the same as Selling
• Recognize that the vendor you want may not want
  you
• Multiple vendors
• Terms
• 100 TT, 30/70, Letters of Credit

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Calculating True Costs

• Tooling charges
• Sample charges
• Inspections SGS or other
• Duty rates HS codes
• Customs broker/port/FF fees
• Freight international domestic
• CBM, peak rates, EBAF, palletization

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Top Mistakes When Importing

• Vendor not properly qualified
• Product quality didnt meet expectations
• Pricing changed at last minute
• Underestimated freight charges
• Production delays not anticipated
• Freight delays not anticipated
• Manufacturer was really a trader with no
  control
• Wrong HS code, wrong duty rate
• Customer staff not properly trained on the
  nuances of importing

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Summary

• Source creatively
• Negotiate by listening
• Manage expectations
• Never assume!
• YourBuyer, Inc. as a sourcing tool

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Appendices

1. Major trade portals
2. Government links miscellaneous tools
3. Sample costing worksheet

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Appendix 1 Trade Portals

• Asia
• www.alibaba.com
• www.hktdc.com
• www.globalsources.com
• www.ebigchina.com
• North America
• www.thomasregister.com

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Appendix 2 Gov Links Misc. tools

• USITC Tariff and Trade Data site
• http//dataweb.usitc.gov/scripts/tariff2004.asp
• HS Code lookup
• http//trade.netvigator.com/gtd/english/html/3_mc.
  asp
• Conversion tools
• http//www.onlineconversion.com/
• World Clock
• http//www.timeanddate.com/worldclock/

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Appendix 3 Sample cost worksheet
Costs Unit Unit Totals
Product Cost (ex-factory) 1.000 39,800
International Freight 0.09 3,415
Misc. Labor Costs (palletization, etc.) -  
Domestic Freight - -
Domestic Fuel Surcharges - -
H.S. Code    
Duty Rate 1 - 3.00 3.00
Duty Rate 1 - 0.030 1,194
Duty Rate 2 -    
Duty Rate 2 - 0 -
Bond 0.003 119
Broker Fee 0.003 125
Misc Fee (Processing) 0.002 84
Misc Fee (Maintenance) 0.001 50
Inspection fees _at_ 1000 ea. 0.025 1000
Miscellaneous Costs 1 - -
Miscellaneous Costs 2 -  
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Questions