{"id":837,"date":"2020-07-29T09:56:21","date_gmt":"2020-07-29T09:56:21","guid":{"rendered":"https:\/\/www.ezilon.com\/topics\/?p=837"},"modified":"2021-05-13T14:29:55","modified_gmt":"2021-05-13T14:29:55","slug":"beginners-guide-to-importing-exporting-products","status":"publish","type":"post","link":"https:\/\/www.ezilon.com\/topics\/beginners-guide-to-importing-exporting-products\/","title":{"rendered":"Beginner’s Guide To Importing & Exporting Products"},"content":{"rendered":"\n

The following article aims to\nassist would-be businessmen and beginners who intend to promote and sell their\nproducts or procure their stock in trade, capital assets, to or from the\ninternational market, respectively.
\n
\nIMPORTATION:<\/strong>
\n
\n1. Register your business and ensure that all\nlicenses and other legal requirements have been complied with.
\n
\n2. Obtain a list of suppliers dealing in the\nproducts you wish to import and select the most dependable. Do a comprehensive\nresearch on the industry. This can be done with the assistance of your bankers\nthrough their correspondents overseas.<\/p>\n\n\n\n

3. Obtain a pro-forma invoice\nor firm offer from your selected supplier. Make sure that their quotation\nincludes, among others, the terms of shipment such as FOB, C&F, or CIF.<\/p>\n\n\n\n

Payment for imports can be\ndone in the following manner:<\/p>\n\n\n\n

a.)<\/strong> By Letter of Credit (L\/C)<\/strong><\/p>\n\n\n\n

Once you have agreed with\nyour supplier on the pricing and other terms and conditions of your purchase,\nopen a letter of credit with your bank.<\/p>\n\n\n\n

Depending on the agreement\nwith your supplier, the L\/C can either be sight or usance, revocable or irrevocable,\nconfirmed or unconfirmed.<\/p>\n\n\n\n

Under a sight L\/C, payments\nfor the goods are made upon presentation of the documents from the supplier\nthrough your bankers (which is commonly the L\/C opening bank) regardless\nwhether or not you have received the goods imported.<\/p>\n\n\n\n

Under usance L\/C, payment is\nmade at a later day, after 30, 60, 90 or 120 days. A revocable L\/C is one which\nyou can revoke even without the consent of your supplier.<\/p>\n\n\n\n

A confirmed L\/C is one by\nwhich the L\/C advising bank, by virtue of their confirmation of the L\/C, is\nliable to pay your supplier the value of the imported goods should the L\/C\nopening bank be unable to pay your supplier for some reason.<\/p>\n\n\n\n

b.)\nBy Open Account (O\/A)<\/strong><\/p>\n\n\n\n

Payment is made at a later\ndate depending on your agreement with the supplier.
\n
\nc.) By\nDocuments Against Payment (D\/P)<\/strong><\/p>\n\n\n\n

Under this mode of payment,\nyou have to effect the payment of the imported goods upon presentation of the\nimport documents by the bank.<\/p>\n\n\n\n

d.)\nBy Documents Against Acceptance (D\/A)<\/strong><\/p>\n\n\n\n

Under this mode, the\ndocuments are forwarded to you through an appointed bank in your locality and\nupon your acceptance, (i.e. signing the relative document signifying your\nacceptance of the liability) the bank then surrenders the documents to you, and\npayment will be made later, after 15, 30, 45 or 60 days depending on your agreement\nwith the supplier.<\/p>\n\n\n\n

e.)\nBy Prepayment<\/strong><\/p>\n\n\n\n

Advance payment must be made\nbefore supplier ships the goods.
\n
\nNote that the basic import documents consist\nmainly, but are not limited to, original Bills of Lading (B\/L) or Airway Bill;\noriginal Commercial Invoice; original Packing List; or any such other original\ndocuments which you may require.<\/p>\n\n\n\n

These documents are necessary\nso the importer can secure the release of the imported goods from the\nshipping\/airline companies and customs authorities.<\/p>\n\n\n\n

EXPORTATION:<\/strong> <\/strong>
\n
\n1. Register your business ensuring that all\nrequirements have been complied with.
\n
\n2. Choose the products that you are going to\nexport and ascertain from the difference governmental agencies that these are\nnot banned items.<\/p>\n\n\n\n

Where necessary, obtain a\nlist of all the documents that are required especially for regulated products.\nIf you produce or manufacture your own products for export, know your\nproduction capacity. If you subcontract the production of your goods, know the\nproduction capacity of all your subcontractors.<\/p>\n\n\n\n

3. Open an account with a\nbank with international connections or one with correspondents in the locality\nof your customers.<\/p>\n\n\n\n

4. Where necessary, obtain a\nbackground check of all your would-be customers through the aid of your\nbankers.
\n
\n5. From new buyers, always insist on prepayment\nbefore you ship your goods.<\/p>\n\n\n\n

6. If you agree on payment by\nLetter of Credit (L\/C), ensure that the L\/C is irrevocable and at sight.<\/p>\n\n\n\n

7. Try to understand the\ndifferent modes of payment for international trade, as discussed above, under\nImportation.
\n
\nThis is a simple step-by-step guide on import\nand export procedures. While requirements may vary from country to country, the\ngeneral and basic procedures are essentially the same.<\/p>\n\n\n\n

Why\ndo people sell overseas?<\/strong><\/p>\n\n\n\n

There are a wide range of\nreasons and benefits of selling and buying products overseas, they include;<\/p>\n\n\n\n

  1. Obtainability<\/strong><\/li><\/ol>\n\n\n\n

    Certain things are not easily\nobtainable or not available at all in a country because they cannot grow them.<\/p>\n\n\n\n

    Such things like some fruits such as bananas, vegetables, lumber, and a whole lot of things make selling overseas necessary. To be able to obtain the benefits derived from such things, a demand for the product oversea is pertinent.<\/p>\n\n\n\n

    2. Profitability<\/strong><\/p>\n\n\n\n

    To be able to maximize profit\nand also improve the financial performance of a commodity, selling overseas is\nvery necessary.<\/p>\n\n\n\n

    Selling some products in just\nthe country of origin can be profitable but not as profitable as when they are\nsent out to a different country.<\/p>\n\n\n\n

    Depending on the demand of that commodity in the buying country, you can make a lot of profit as the selling price would be to your benefit.<\/p>\n\n\n\n

    3. Prestige<\/strong><\/p>\n\n\n\n

    A wide range of things like\nchampagne, French perfume, Scandinavian furniture among others are usually\nimported for the image they represent.<\/p>\n\n\n\n

    Even if those products can be produced locally, the imported ones are seen to be prestigious and classier than the local ones.<\/p>\n\n\n\n

    4. Business growth<\/strong><\/p>\n\n\n\n

    Selling overseas creates\nopportunity for the growth of business. Despite the sector of trade and size of\nthe business, bringing the products of the business to the international market\nenables the business to grow rapidly.<\/p>\n\n\n\n

    There will be increase in\ndemand of the product as it is not just demand of the country that needs to be\nsatisfied but that of people in other countries of the world.<\/p>\n\n\n\n

    This business growth will in turn result in the growth of the managers of the business, down to the local community and the growth of the country at large.<\/p>\n\n\n\n

    5. Price<\/strong><\/p>\n\n\n\n

    Price is another major reason\nwhy people sell and buy oversea. As said earlier, some products cannot be\nproduced in certain places. Producing them in places where they are not easily\navailable can be quite expensive.<\/p>\n\n\n\n

    Therefore, buying such\nproducts like cloths, electronics, and so on can be cheaper when they are\nbought out of the country.<\/p>\n\n\n\n

    Generally, countries import\ngoods that are efficiently produced in another country and then export goods\nthat they cheaply produce.<\/p>\n\n\n\n

    The major reasons behind the\nabove description include the availability of the resources and then\ntechnology.<\/p>\n\n\n\n

    Certainly a country might\nhave the raw materials needed for the production of certain products but not\nhave the right technology for the production.<\/p>\n\n\n\n

    It is now a clear fact that goods produced manually are more expensive than the goods produced using advanced technology.<\/p>\n\n\n\n

    6. Boost of profile<\/strong><\/p>\n\n\n\n

    A wide range of companies and\ncountries sell oversea in other to boost their general profile both home and\nabroad.<\/p>\n\n\n\n

    Import and export is a global\nbusiness and companies and countries involved in the business are invariably\nknown globally for the product and services they offer.<\/p>\n\n\n\n

    Depending on the quality,\nusefulness, high demand and availability of their product, the profile of the\ncompany engaged in the export will boost in a short time and this brings about\nhigh patronage even locally.<\/p>\n\n\n\n

    Players in import and export business<\/strong><\/p>\n\n\n\n

    There are different types of import\nand export business which include;<\/p>\n\n\n\n

    1. Import and export merchant<\/strong><\/li><\/ol>\n\n\n\n

      Import and export merchant is\nknown as an international entrepreneur that acts as a free agent in the market.<\/p>\n\n\n\n

      Merchants do not specialize\nin the import or export of any particular product; instead, they look out for\nany trending profitable products.<\/p>\n\n\n\n

      They buy the products directly from the manufactures either locally or abroad and then packages, exports and resells again. Merchants bear profits and risks involved in the business alone.<\/p>\n\n\n\n

      2. Export Trading Company (ETC)<\/strong><\/p>\n\n\n\n

      The duty of an export trading\ncompany is to find out the demands of foreign buyers and then look for domestic\nmanufacturers that have the willingness to export.<\/p>\n\n\n\n

      The export trading company connects the two companies and then collects their commission. In many times, they claim ownership of the products in question.<\/p>\n\n\n\n

      3. Export Management company (EMC)<\/strong><\/p>\n\n\n\n

      The EMC is a great player in\nthe import and export business as they aim majorly at handling all aspects of\nexport of any company in their domestic locality that wants to export but does\nnot know how to.<\/p>\n\n\n\n

      The aspects they handle\ninclude but no limited to packaging, financing, distributing, advertising,\nshipping, marketing, and represents the products generally.<\/p>\n\n\n\n

      There are many ways the EMCs\nreceive their pay but it all depends on agreement. Some of those ways include\neither by retainer commission, salary or even commission.<\/p>\n\n\n\n

      Conclusion<\/strong><\/p>\n\n\n\n

      It is only through import and\nexport that goods produced in a country gets to other countries of the world.\nNo doubt, import and export has improved the lifestyle of many in different\ncountries.<\/p>\n\n\n\n

      Another good thing about\nimport and export is that it doesn\u2019t take much to start it up. The ideas here\nwill be of help to beginners in importing and exporting products.<\/p>\n","protected":false},"excerpt":{"rendered":"

      The following article aims to assist would-be businessmen and beginners who intend to promote and sell their products or procure their stock in trade, capital assets, to or from the international market, respectively. IMPORTATION: 1. Register your business and ensure that all licenses and other legal requirements have been complied with. 2. Obtain a list […]<\/p>\n","protected":false},"author":2,"featured_media":25727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":""},"categories":[31],"tags":[],"yoast_head":"\nBeginner's Guide To Importing & Exporting Products - Ezilon Articles<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ezilon.com\/topics\/beginners-guide-to-importing-exporting-products\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Beginner's Guide To Importing & Exporting Products\" \/>\n<meta property=\"og:description\" content=\"The following article aims to assist would-be businessmen and beginners who intend to promote and sell their products or procure their stock in trade,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ezilon.com\/topics\/beginners-guide-to-importing-exporting-products\/\" \/>\n<meta property=\"og:site_name\" content=\"Ezilon Articles\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-29T09:56:21+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-05-13T14:29:55+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ezilon.com\/topics\/wp-content\/uploads\/2020\/10\/Exporting-Products.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"908\" \/>\n\t<meta property=\"og:image:height\" content=\"601\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Michelle\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ezilon\" \/>\n<meta name=\"twitter:site\" content=\"@ezilon\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michelle\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ezilon.com\/topics\/beginners-guide-to-importing-exporting-products\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.ezilon.com\/topics\/beginners-guide-to-importing-exporting-products\/\"},\"author\":{\"name\":\"Michelle\",\"@id\":\"https:\/\/www.ezilon.com\/topics\/#\/schema\/person\/66eb0b60c02302c1efe6a5483e974e74\"},\"headline\":\"Beginner’s Guide To Importing & Exporting Products\",\"datePublished\":\"2020-07-29T09:56:21+00:00\",\"dateModified\":\"2021-05-13T14:29:55+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.ezilon.com\/topics\/beginners-guide-to-importing-exporting-products\/\"},\"wordCount\":1516,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.ezilon.com\/topics\/#organization\"},\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.ezilon.com\/topics\/beginners-guide-to-importing-exporting-products\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.ezilon.com\/topics\/beginners-guide-to-importing-exporting-products\/\",\"url\":\"https:\/\/www.ezilon.com\/topics\/beginners-guide-to-importing-exporting-products\/\",\"name\":\"Beginner's Guide To Importing & Exporting Products - 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