How to Import Wholesale Tools
In an increasingly global economy, there is growing demand in the United States for the best products available overseas. One example is tools, because tool manufacturing is a global industry and quality tools are required by many industries and vocations in the U.S. Becoming a wholesale importer of foreign tools and then selling them to retail customers -- whether that's a manufacturer that needs new machine tools or a carpenter who needs new hammers and saws -- represents a solid business opportunity. To maximize your chances of success, follow a few guidelines, explains import-export consultant Informed Trade International.
Other People Are Reading
Instructions
-
-
1
Decide what kinds of tools you want to import. For example, you can import the latest machine tools from Brazil, or fine hand tools or small power tools from Germany, Austria or any number of other countries. Do your homework to determine where the demand and opportunities lie. As a general rule, look for products that are in current demand and have solid profit margins. You will spend the same amount of time importing tools with narrower margins, so maximize your profit by focusing on tools with healthy margins.
-
2
Familiarize yourself with the laws and regulations that cover exports from the countries where you are targeting suppliers. Many countries now offer assistance to prospective U.S. importers. For example, the Brazilian Consulate in New York provides support services from trade specialists at Brazil4Export, which publishes a Directory of Brazilian Exporters that will help you identify specific products and their manufacturers.
-
-
3
Retain an import-export attorney in each country from which you plan to import if you plan on becoming a serious force in the industry. To minimize potential future problems, make a trip to have an initial meeting with your attorney and visit each prospective manufacturer from whom you expect to buy.
-
4
Negotiate written agreements with each supplier. Include pricing, purchasing quotas, if any, discount structure, shipping details, payment terms, and anything else that could affect your ability to deliver products at a total fixed price to your U.S. port of entry -- without surprises.
-
5
Get a customs brokerage license. If you're only planning to operate on a small scale, such as importing tools for a local or regional market, you can get a license under your own name, based on your Social Security number. But, advises Informed Trade International, if you're planning to import tools as a serious business venture, hire a licensed customs broker with experience in the kinds of products you plan to import. Expertise in a type of product is more important than knowledge of the country of origin.
-
6
In addition to a customs broker with international tool experience, hire one with specific experience in the port of entry you intend to use. If you're bringing cargo into Miami, you need a broker who works with Port of Miami officials on a regular basis. U.S. Customs and Border Protection publishes an online directory of licensed customs brokers.
-
7
Instruct your customs broker to classify every individual tool you plan to import, according to the Harmonized Tariff Schedule published and enforced by U.S. Customs. A 10-digit HTS number is required for every tool you bring into the U.S. Your HTS classification, combined with the country of origin for the product, will be the major determining factor in the duties, or taxes, you pay on what you import.
-
8
Get off to a good start. For your initial shipment into the U.S., make certain that all of your paperwork is in order. Double-check everything with your customs broker. Mistakes or miscalculations can be expensive, especially for new importers, cautions Informed Trade International. If you're fully prepared and sail through your port of entry the first time, chances are that will happen all the time.
-
1
References
Resources
- Photo Credit tools image by Marek Kosmal from Fotolia.com
