How to Import from Other Countries
Reading time: 4 – 7 minutes
Many people think it’s hard to import items into the United States but it’s really easy and almost as easy as getting a package. Believe it or not most of the stuff you bring in will be free of duty and probably is so small that Customs doesn’t even want to see it. Unless you are trying to bring in counterfeit stuff the government actually makes it easy for the small importer. So when you start out asking for samples for your product they’ll come in the regular mail unless you are getting samples of diamonds are something crazy!
Extra: I’ve been doing this for at least 15 years so if you have any questions email me at freeman@riseandgrind.com and I’ll give you the inside scoup so you don’t get taken advantage of.
Steps to Importing:
- Contact the Manufacturer in China, India or wherever you want the item via email. (Alibaba.com is the biggest site out there to look for items)
- Email them for a pricelist of the items they sell as there are often more than what you see on the website.
- Ask for a sample and expect to pay more as they charge you for sending it out of their country. UPS imports samples all of the time and in fact regular mail can do it too.
- A lot of these foreign manufacturers accept paypal so you don’t even have to do a wire transfer…
Remember 1 thing: You have US dollars and they are worth a lot in other countries. They charge you USA prices but you should argue for a lower price. If footballs cost American dollars in Kenya then they wouldn’t make they because they couldn’t afford them!
When you really start to import (I mean you actually have a business not just little stuff):
- Contact a Freight Forwarder – their job is to get the freight from the port in China to the port in the USA. (Pick Your State and then give them a call)
- Contact a Customs Broker – their job is to clear customs for you which is present documents so Customs can release your shipment. (Pick Your STATE and then the nearest city and then Click the Broker View List)
- Contact a Trucker – You need someone to do deliver your products to your business (they charge more to deliver to your house)
- Some of your big places like UPS will do everything for you but they charge more than most people
Charges from importing:
- Depending on how fast you want your cargo the more it will cost. Air costs a lot more so use this only if you have to have it tomorrow. So prices could range from 200 to 3000 depending on if you have a couple of boxes or a big container full of cargo
- Customs Clearance usually costs about 125 bucks but there are costs like Bonds (to insure duty that Customs requires), ISF (importer security filing – early warning system since 9/11).
- Bonds range from $5 per thousand insured or $500 for a continuous bond that covers your any shipment to anyport in the USA for a whole year.
- ISF is usually $25 bucks but if you don’t have a bond setup it will cost you $100
- Exams – Sometimes Customs will examine your cargo. This can cost from $140 bucks to $1000 so the more you have your stuff in order like bonds and the like the less they will want to examine it. BUT BE READY TO PAY FOR IT!
So if you’re starting to import you can expect to pay about $250 minimum from your Customs Broker and depending on how much cargo you bring in $350 from your Freight Forwarder. Again, this is for bigger shipments not samples.
Here’s the stuff you should have ready:
- You will have to sign a Power of Attorney with both your forwarder and your broker as they cannot start until you authorize them.
- You can import using your Social Security Number so you don’t have to be a business at all. You can be regular old Daniel Freeman and bring in a books or a dinnerware . A business Tax ID is better but it’s not necessary.
You will need to call at least 5 to 10 brokers, forwarders and truckers as a lot of people take advantage of people who don’t know. Don’t ask them to teach you about what’s going on instead just keep track of where your cargo is via email. It takes anywhere from 10 days to a month for your cargo to get to where you live especially if you don’t live near the coast.
Make sure you pay the forwarder, broker and trucker on time if not early as they can hold your shipment until you end up owning the government thousands of dollars. You can call the government and they don’t care as they stay out of everything that has to do with payment. As long as they get their money they don’t care how mad you get or if you go and get a lawyer. When you signed that POA you gave everyone else the power to hold your stuff..
So next time you vacation in Belize and you want to import some nice furniture don’t think it’s impossible! You can probably get it all done and delivered to your house for under $1000. It’s easier than you think but start small and get used to doing small transactions and then next thing you know you’ll be supplying the gas station with Car Air Fresheners!
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Great post! Before RnG, I never knew about the seller’s permit and I definitely didn’t know how basic the importing process truly is. I’m getting my tax id in the next few weeks so I can get my seller’s permit, but this post takes my thought process to another level. Down the line, it only makes sense to buy from even cheaper sources overseas.
It’s funny that I’ve learned more about business from this site than from four years of college as a business major!
Be cautious when choosing your freight forwarder. Many times what is quoted is only their charge. Sometimes there are multiple forwarders involved and each has to be paid, also port costs, Terminal fees. Many times the forwarder will tell you they can handle the customs brokerage at a cheaper cost. When they actually are hiring a broker. When it comes to choosing your broker, choose as if it was your tax person. REMEMBER, ultimately, YOU are responsible for the customs entry and if duties and taxes are not correct at time of entry, the government can come back on you with additional duties and penalties and possibly fines.
@MCD – Hey I’m glad you are piecing together the puzzle to piece together a MIL! Like you in school they didn’t teach me 5% of this kind of thinking but now that we have it it’s a takeover mentality.
I just wanted to take down another hurdle most cats see when they think about importing. The process is as easy as UPS when you know the parts.
@Jim – Welcome! – True I’m glad you said YOU are ultimately responsible. I think the more you know the players involved and the jobs you hired them for the better you’ll be.
I say ask around and even call Customs as they will refer someone they know can take care of business. Freight forwarders are a dime a dozen so you might get burned and/or lucky when you start. Either way they are all vendors and just like where you buy a sandwich you can drop them and move on.
I see you’ve been in this industry too. Glad to see someone else in the hidden industry of import/export.
Aye you are like the genius from the hood. My boy told me about this site and I have been coming everyday and man you really are talking money daily. Damn, and with this one right here you took me out of the country to make money.
You say it’s like UPS and I’ll be damned if it don’t look like a couple of phone calls, paypal and then you got some chinese products. Keep goign bruh keep going!
Good looking out Freeman, man I been checking out that Alibaba.com for a while and I really didn’t know what kind of pricing angle to come at the Chinese folks with I’m not foolish I know they know the game too.
Thanks Freeman again for a great hustle, I will take a look at that website and do further researcher and add this a side hustle. Keep them coming!
@Orange – Welcome – Nahhh not a genius but the only one from there not afraid to tell you I’m from there and still can relate!
The world is online homie so what used to be a world away is now you setting up shop and reaching out to people. It’s no different from what happens on the street we just find the cat who got it for the low.
@KD – Yeah watch those Chinese cats as they talk in US dollars when realistically their currency the Yuan is not worth the same. Those cats like to spike the prices so I would get 10 or 12 vendors of the same item and then go and see if you can get it from India or Taiwan too. This Hustle thing is universal so they want to make a lot of money too..
@MG – Welcome – As long as you think and execute then I’ll keep them coming. I don’t want to be entertaining I’d rather be enriching!
Thanks Freeman for this info.
You’re welcome homie it’s my job!
Since you mentioned alibaba up top, Ive been browsing on there for a couple of weeks but my spidey senses be tingling which prevents me from dealing with that site. Could you 1 day in the very near future devote a post on how to navigate alibaba such as what to look for and what to avoid with some of the sellers on that site.
Peace.
A.B. sure man as I got a way I go about dealing with people on there too BUT, you got to take a shot and lose a couple to win a lot sometimes. There are other ways to source stuff you might want and I’ll definitely expand on that so we can have multiple angles.
another homerun post. Great breakdown of importing
Freeman, you make the game is so simple. I got a sample from alibaba the other day and sold it on ebay for $40 profit in less than hour! Can’t wait to get my next shipment. If I stop trying to outsmart the game, I just might be able to stack some chips. Ha ha
@Marc – Thanks man I try to make sure people have enough information to give it a try..
@Jnati – Bruh you already sold the sample huh? LOL I’m glad you found out it was nothing but a thing. Exactly if you would just try instead of overthink the hustle you’ll make some money. Glad to see you got your feet wet and now I expect some major moves to come up.
I am dealing with chinese suppliers for my new clothing company. I am going to start with jackets and they were asking for $70 to send me samples. I read you article and was wondering how much merchandise are you talking about when you mention those amounts. Don’t they depend on how much merchandise you want to import?
Welcome Mustapha – Importing the sample will cost more than normal as they will charge you for sending one out.
Now when you get to ordering more and bigger quantities the prices will drop. I put the sample up there to let you know don’t get shocked when the sample cost more or think the guy is trying to cheat you when it’s the normal way of importing.
Where do you guys sell these items at though?
Most of the time everyone sells them on Ebay! Once you get big you can supply Walmart but for now I think the Ebay angle is the best especially for things you can get for dirt cheap that are being sold for triple what you can get them for.