How to do EXPORT-IMPORT Business

Summary

This video provides a comprehensive guide to starting and managing an export-import business, covering both procedures and essential documentation. It explains how to establish a company, open a bank account, and obtain an export-import license, then details how to identify and validate overseas buyers, send product samples, confirm orders, arrange shipments, and handle inspections. The video also highlights critical documentation such as Pro Forma Invoices, Sales Contracts, Packing Lists, Bills of Lading, Certificates of Origin, CE Certificates, Material Safety Data Sheets, and optional freight insurance. Practical tips ensure smooth operations, compliance, and successful international trade, making it ideal for aspiring entrepreneurs.

Takeaways

• 🏢 Establishing a company is the first step in export-import business, including registration, paying government fees, and opening a business bank account.
• 📝 Obtaining an Export-Import license is mandatory to legally trade internationally.
• 🌍 Identifying and validating serious overseas buyers is crucial for successful transactions.
• 💰 Price offers should include price, delivery terms, quality, and validity period to avoid misunderstandings.
• 📦 Sending product samples to potential buyers is necessary, along with proper export documentation such as Pro Forma Invoice, Packing List, and Certificate of Origin.
• ✍️ A well-drafted sales/purchase contract ensures clarity on terms like price, quantity, delivery, payment, and warranties.
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• 🚢 Freight forwarders can assist in shipping goods to the port and handling necessary shipping logistics.
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• 🔍 Final inspection by the buyer before shipment ensures product quality and prevents disputes.
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• 💳 Receiving payment involves advance payment, LC, or balance payment against Bill of Lading and proper documentation.
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• 📄 Key export-import documents include Pro Forma Invoice, Sales Contract, Packing List, Bill of Lading, Certificate of Origin, CE Certificate, MSDS, and Freight Insurance Certificate.
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• ✅ Compliance with documentation and procedures is critical for smooth operations and customs clearance in both exporting and importing countries.
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• 💡 Costs, regulations, and document requirements may vary based on product type and destination country, so careful planning is essential.

Q & A

What are the first steps to start an export-import business?

The first steps are establishing a company, opening a business bank account, and applying for an export-import license. This involves completing forms with details like initial capital, company address, contact information, and paying government fees.

How can an exporter find and validate potential overseas buyers?

Exporters should use proper marketing channels to identify potential buyers, conduct online research and background checks to validate serious buyers, and then start negotiations based on buyers' requirements.

What documents are typically required when sending product samples to overseas buyers?

Key documents include a pro forma invoice, packing list, certificate of origin (if required), and an airway bill with receiver and destination details. Shipping companies like DHL or TNT can assist with documentation.

What are some critical terms that must be included in an export-import contract?

Contracts should include product price and quantity, description with HS code, shipping terms (EXW, FOB, CIF), payment terms (TT, LC, DC), inspection and warranty conditions, advance and balance payment percentages, packing details, and required documents.

Why is the final inspection by the buyer important before shipping?

Final inspection ensures that the goods meet the buyer’s specifications. Any issues discovered during inspection could lead to disputes or rejection of the shipment, making this step critical for successful trade.

What role does the Bill of Lading (BL) play in export-import transactions?

The Bill of Lading serves as proof that the goods have been shipped. It is essential for banks and buyers, especially for receiving balance payments and clearing import customs.

What is a pro forma invoice and why is it important?

A pro forma invoice states the unit and total value of goods, along with exporter and importer details. It is not in a strict format but is necessary for customs clearance and serves as an initial sales quotation.

When is a Certificate of Origin required and what does it indicate?

A Certificate of Origin is required to prove the country of origin of goods. It is issued by government export authorities and may include producer information. It is important for customs and trade compliance.

Which products require a CE certificate, and what does it certify?

Products traded with Europe often require a CE certificate, which certifies that the product meets European Union safety standards. The certificate is issued by a certified independent third party.

What is the purpose of a Material Safety Data Sheet (MSDS) in export-import business?

The MSDS provides safety information about products, especially liquids, confirming they are not harmful to humans or the environment. It may be required by the importing country's customs authorities.

Is freight insurance mandatory for export-import shipments?

Freight insurance is not mandatory, but it is recommended for valuable goods. It protects against loss or damage during transit and is issued by insurance providers or international shipping companies.

Why is it recommended to use a customs broker when exporting goods?

A customs broker helps ensure all export documents are correctly prepared and submitted, streamlines the customs clearance process, and reduces the risk of errors that could delay shipment.