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Selling to US importers can be very large and complex and it can be small and simple. The general concepts, however, remain the same. The US is the world’s largest importing country. But doing business with US importers is highly competitive. Exporters from almost every country in the world would like to export to the US. US importers are able to be very selective and most often dictate the terms of business transactions.
Being successful selling to US importers requires understanding the import process. This section is not a discussion of how to market to US importers. This is done in the chapter Best Ways To Market And Sell To US Importers. This is a discussion of the import process through the eyes of the US importer. Understanding it can be the key to success. Not understanding it can be the key to failure.
The biggest mistake an exporter can make is if he/she tries to sell to US importers in the same way they would sell to buyers in their own country or in Europe, for example. The US has its own set of rules, business customs – and laws.
Finding Buyers in the US
There are several places that an exporter can go to find prospective buyers. Trade fairs, B2B web sites, and contacting that country’s embassy are just a few. Our own Database List of US Importers is a great place to start. It lists the company names, contact information, and products imported of approximately 13,000 importers in the US.
A good business practice for exporters is not to limit themselves to just one – or even two- buyers. If the exporter loses that buyer then business to the US virtually stops until a new buyer can be found. Try to have as many customers as you can realistically supply. If one buyer stops buying you can reply on the others until a new replacement buyer is found.
Negotiating the Terms
After you have found a US importer that is willing to buy from you, you must establish the terms and conditions on which you will sell your products. Three of the biggest mistakes that an exporter can make are:
1) Accepting an offer that is beyond that exporter’s capacity. Greed and wishful thinking sometimes lead to an exporter accepting an order that he/she knows is too big.
2) Agreeing to ship the goods in an unrealistically short period of time. The buyer is counting on you to deliver the good on the date that you promised. Not doing so puts the buyer in a very bad situation.
3) Agreeing to give the buyer credit without first doing a credit and reference check on the buyer. The vast majority of US importers are honest. But there are some who prey on exporters. They place orders, ask for credit, and have no intention of paying. For more information on this topic go to Making Sure You Get Paid and How To Know If A US Importer Is Reliable.
Negotiating is a give and take process that must benefit both parties in order for the business relations to be long term and profitable.
Writing the Sales Contract
This includes the product/s to be sold, the price, payment terms, and any other details of the sale. This should also include what to do in case of a dispute or conflict. You must decide to use your country’s laws or the buyer’s country’s law in case of dispute. You may also choose to have the dispute go to arbitration. The sales contract is one of the most important steps in doing business with US importers. You must legally protect yourself.
Packing, Packaging, and Labeling
It is the importer’s responsibility to notify you of the packing and labeling requirements for the products that he/she has ordered. The products must be labeled in accordance with US Customs rules and regulations. This is especially important for certain items like food, chemicals, and clothing. The products must be packed in a way that they will arrive at the final destination in good shape. The goods will most probably be loaded onto several vehicles before arriving at the importer’s warehouse.
Shipping the Goods
The importer will generally decide on the shipping arrangements. The terms of the shipping must be clearly laid out in the sales agreement. The importer must select the best carrier, price, routing, container, and scheduling for the shipment. Few US importers will rely on the exporter to decide this.
Obtaining Insurance
Either the importer or the exporter must insure the shipment. Be sure to insure the full value of the goods. This includes packaging, shipping, storage, and any duties and taxes that may be due. This can be done shipment by shipment whereby you insure each individual shipment. Or this can be done on a term-policy basis with a broker or with an insurance company.
Clearing US Customs
In almost all cases the importer is responsible for getting the goods through US Customs and into the country. Most importers hire a customs broker to deal with Customs entry and clearance procedures. However, in order to get the goods through Customs the exporter must have followed the importer’s instructions as outlines in the sale contract (labeling etc). In addition, the exporter must supply proper documentation. Without this documentation the importer cannot get the goods out of Customs. In many cases the receiving of the specified and properly filled out documents is a requirement for payment.
