That’s why you are so familiar with term of export and import business where buyers who are purchasing products from other countries are called importing goods and suppliers who send their products to the buyers in the abroad are called exporting goods.
Decide products that you would like to export and import. Of course, your product must be unique and different from other companies. Find a captive market. If you are selling children toys, surely you have to know in average population of children in that area. Next, check with local government about export and import statistics. This will help you to know about popular products from and to, why and how to grab bigger opportunities. Make sure if you are exporting products, you have good production department, so you don’t disappoint your buyers with late delivery. If you are exporting goods, you have to be familiar with export documents like proforma invoice. For instance: you have 100 cases of mobile phone where they are packed into 12 units to a case. The price of each case is $120. It means total selling price is $12,000 where you get from 100 cases x $120. The price of 1 unit mobile phone is $12. If there are other expenses like inland transport ($700), ocean transport ($1,500), duty ($300) and CAF ($1,250) plus documentation ($125), so overall total landed price is ($15,875). By knowing this figure, you can determine export selling price. After proforma invoice, you have to make an actual invoice. The function of performa invoice is to obtain necessary funding or even licenses. So simple! You have a sale. Of course, before releasing the order, buyers and you should negotiate term of payment like using TT, LC and others.
For importing goods, you have to make sure that the goods are not prohibited by the law. All goods must be cleared through customs duty and taxes according to the law. When the vessel arrives, the agent has to lodge a general declaration. The goods have to be declared by importers by preparing some supporting documents like bill of loading, packing list, original invoice, import license, sales contract/purchase order, picture of goods and so on. By having sufficient knowledge about export and import business, you will be ready to compete in global market!