How to Import Cooking Utensils From UAE
The UAE has a diverse manufacturing base and produces a variety of kitchen equipment, and importing these cooking utensils into the United States is similar to any other import transaction. U.S. import requirements are relatively simple after you get through the learning curve. This article assumes that a larger shipment is being imported. Small shipments can sometimes be made via regular mail without any fanfare.
Things You'll Need
- Harmonization codes
- Incoterms
- Import bond
- Proforma invoice from supplier in English
- Commercial invoice from supplier in English
- Packing list from supplier in English
Instructions
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Importing Process
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1
Select and contact a supplier. To find a supplier, attend an industry trade show that is international in scope, or contact the U.S. Embassy in the UAE and request a list of companies from the Commercial Officer (see Resources).
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2
Determine payment terms for an order with the supplier. Prepayment exposes the buyer to the most risk, as dishonest suppliers could keep the money and not ship goods. A letter of credit (LC) is the safest way for both the buyer and seller, but importers should seek training to avoid fraud and navigate the contractual nuances of LCs.
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3
Send a purchase order and request a proforma invoice from your supplier in return. Review the proforma carefully for accuracy. The proforma invoice should list the items ordered, quantity, price, total cost, incoterms (see Step 4), freight costs (if applicable), harmonization codes of products and estimated weight and piece count. The weight and piece count allow you to request a freight quote. Harmonization codes are essential to import goods.
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4
Determine the incoterms your goods will ship under. Incoterms are legal terms that determine who will pay for and coordinate shipping. If you are paying for shipping, you need to contact a freight forwarder, who will handle transportation and importation on your behalf. If the supplier is arranging the shipment, you will need a custom's broker to clear the goods through U.S. Customs. Brokers often work for freight forwarders. Well-known freight forwarding companies are Schenker, Expeditors and Kintetsu.
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5
Fill out and sign the power of attorney for your freight forwarder or custom's broker. It needs the legal authority to act on your behalf in order to import goods.
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6
Discuss with the broker or freight forwarder how you want to handle the import bond, which is required by U.S. Customs. You can buy a single entry bond that is billed per shipment, or you can buy an annual import bond. Your forwarder or broker can guide you on how best to do this.
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7
Decide if you want to ship goods via air or ocean freight. Air freight is more expensive but fast, with a time line of 8 to 15 days. Ocean freight is cheaper but slower, with a lead time of 4 to 6 weeks.
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8
For a freight quote on your import, send the proforma invoice to your freight forwarder or broker along with the incoterms and an estimated weight and piece count. Be sure to include harmonization codes, as they determine the tariff you will pay. Also let it know if you want to send goods by air or ocean. If you have never imported before, ask your forwarder or broker to review the process with you and explain how the incoterms for your shipment work.
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9
Confirm proforma and make payment (if prepaying) or open letter of credit to trigger shipment of goods.
Follow Up On Your Import
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10
Follow up with your supplier when goods ship to request shipping details and a faxed copy of documents in advance of the goods' arrival. Getting paperwork before arrival gives you time to fix any mistakes and resolve any problems.
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11
Give the shipping details and copies of the documents to your forwarder. Ask when you should expect to hear, and check back if you don't.
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12
Receive your freight, and pay your forwarder.
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Tips & Warnings
It can be helpful to contact two or three forwarders or brokers for quotes. Look for the best service, not the cheapest price. Bad service can cost you thousands of dollars in lost sales, time and fines. Comparing the cost of importing similar goods from other manufacturing countries such as China, India and Mexico will give you a good idea of the best value for your money. Small shipments of just one box can be sent through regular mail and may not need a custom's broker or freight forwarder. You absolutely must know your harmonization code. The entire import hinges on having this information.
If your goods are hazardous, there are several additional steps. Always work with a reputable freight forwarder who can guide you through the process. It is not uncommon to encounter anti-Israeli sentiments in the Middle East. If your supplier asks you to boycott Israel or you notice anti-Israeli language on documents, you are required to report this to the government under U.S. law. Sometimes steel and other metals require import licenses, so check with your forwarder or broker to ensure you don't need one for the utensils.