Businesses today need to stay competitive on a global scale, which is why importing is more important than ever in today’s marketplace. Do you know the top reasons for importing goods?
There are seven main reasons for importing goods. Countries import goods or services if:
Whether you are importing to the USA, discovering who needs a customs bond or discovering how to import wholesale from China, take advantage of our lessons and top reasons for importing goods to give you a leg up on the competition.
Let’s start at the beginning. So why do nations import goods? They import because none of them, even the United States, are totally self-sustaining on their own products.
Countries need to import services or goods when those goods are:
The closest country to self-sufficiency there is on this planet, the U.S. has large amounts of silver, iron, copper, coal and nickel natural resources. However it still needs help from countries from around the world to get products consumers demand.
The U.S. does not produce enough of some goods, including tungsten and oil. These types of goods are imported from other countries. The U.S. continues to depend on certain imports to meet energy needs and save money when imported goods are more economically prudent.
Consumers in America are also a different kind of consumer. They crave imports even when their own country is able to make domestically produced products at home. Examples of overseas imports American consumers crave in large quantities include:
So which countries import the most goods and services to the United States? The countries that send the most imports to the U.S., in billions with a capital B, include:
The largest U.S. exporter, China sends everything from computers and smartphones to clothes and more to the U.S. every single year.
Our North American neighbor to the north sends vehicles, machinery and oil to the U.S. each year.
Our North American neighbor to the south is responsible for a bulk of U.S. imported machinery, cars, computers and more.
Automobiles are Japan’s No. 1. Exported item.
Passenger vehicles top the list, followed by machinery and pharmaceuticals.
Electronics, oil, machinery and cars are popular U.S. imports.
Machinery now tops the list, followed by automobiles.
France is popular for its beverages, aircraft manufacturing and machinery imports.
Gemstones, oil and pharmaceuticals are the Top 3 demands from U.S. consumers.
Wine, wine and more wine. U.S. consumers also purchase other beverages, pharmaceuticals and machinery from Italy.
Do you know who the top 10 importing countries are globally? Take a look at the countries that handle the most importing business on a global scale:
What does your country crave the most? Take a look at some of the world’s biggest countries and what they import the most.
Do you see any similarities here? The majority of the world’s countries need cars and petroleum. Ninety-seven out of the world’s 187 countries crave refined petroleum the most. Cars come in second place, with 54 countries importing manufactured cars as their top import. Food is the top import for the globe’s remote and poverty-stricken countries. Here’s your breakdown:
As you can see from above, imported oil is the No. 1 import worldwide. In 2017, the United States imported more than 10 million barrels per day of imported oil from more than 80 countries. Imported oil includes:
The top five countries that produced the most imported oil for the U.S. in 2017 were:
The United States is also an exporter of crude oil. The top five countries that received the most oil from the U.S. in 2017 were:
Do you know the costs involved to your overall business as an importer? First, let’s look at the top reasons that importing and exporting improve your business model:
The main importing costs you need to factor include:
Importing helps businesses discover if there is consumer demand for different imported products in their markets. Once a new product is introduced to the European or American markets from India or China, for example, it can take a year or so for the product to take hold and be popular in other markets.
When countries begin importing goods they lack within their own borders, it benefits consumers, which in turn benefits your importing business. Consumers and the local economy benefit from purchasing products that are not produced locally.
When you are importing and exporting to other world markets, you are responsible for introducing products to other parts of the world that otherwise might never utilize these resources.
When you are importing products, you are increasing profits. Since foreign need for imported goods is in high demand, you are making more money and receiving more orders than you would from domestic buyers.
Importing is important to United States jobs, the economy, and global development. Did you know the import business is responsible for 16 million jobs in America? Imports also support job growth in insurance and the finance industries.
What are the main reasons for importing? There are many but the main benefits of importing include:
There are some disadvantages of importing. These include:
Importing food is big business for importers. Do you know the advantages of imported food? Get your plates and silverware out as we teach you the ways of imported food.
The Food Safety Modernization Act was signed in 2011 and is worth a whopping $1.4 billion. Our neighbor to the north, Canada, is also tights with its food import regulations. Importers have to be careful they follow the Food Safety Modernization Act closely.
For many food products, it’s cheaper for a country to import them to produce the food within its own borders. Sometimes it’s because the country doesn’t have the proper resources such as the proper soil to create the right crop. As a result, these countries can sell their food, even imported food for a lower cost than what that country would have to charge if they tried to produce that food locally.
Believe it or no, local food isn’t always regulated properly. Imported food has strict regulations at border patrol and US ports of entry. You can be sure that imported food that is approved by U.S. customs agents went through a rigorous customs clearance process. Rest assured that the quality of imported food is top notch.
Who would have thought that imported food was good for the environment? How? Think of it this way. Sometimes the energy it takes to plant and cultivate a crop in a country on the other side of the world is much less than it would take to make the same crop here in America. We save money and reduce energy conservation here locally when we buy many imported foods.
The more imported food we have, the more variety of imported food we have available to us as consumers. In the United States, we owe the importing and exporting food business for consumers having access to food such as bananas, tomatoes and several other crops no matter what time of year it is within our own borders.
Local farmers in your country usually think importing means less jobs for them and less money in their pocket. Both importing and exporting, however, is crucial to your local economy and typically creates jobs that would not be available without the food importing and exporting process. Since there is less and less demand for farming workforce positions moving forward each and every year, the demand for imported food continues to grow.
There are both advantages and disadvantages of import and export in India.
Do you know everything you need to know about international trade? Let’s start with the definition. International trade is the bartering of services and import goods across country borders. International trade contributes greatly to the overall gross domestic product (GDP) share.
There are a variety of international trade types, which include:
There are plenty of benefits of international trade and international trade agreements like the North American Free Trade Agreement (NAFTA), the Trans-Pacific Partnership and others. Those benefits include:
You found an amazing product you want to market globally as an importer. So now what? Your first step is finding someone that will manufacture that product overseas.
When you utilize contract manufacturing, a hiring firm schedules manufactures both locally and all over the world to make the product. Contract manufacturers can also find manufacturers to make parts of the product if it can’t be assembled in one factory.
Hiring companies are responsible for coming up with a design and manufacturing formula that copies the product perfectly for overseas production and improving upon its design if possible. These companies also work to sell and market the products you will be importing down the line.
When you are looking for in a manufacturer plant, make sure you find a company that:
When you are looking for an overseas manufacturer, look for the following characteristics:
Foreign sourcing for your products typically costs less than domestic sourcing. You might be able to save as much as 75 percent or more in labor costs by taking advantage of foreign sourcing. These savings allow you to tack on more money for importing and/or product development.
If you want your products to stay close to home, then domestic sourcing is the way to go. The United States’ manufacturing industry has a good track record for manufacturing specialty products that consumers demand. If you don’t have much time to investigate importing your product from overseas, the USA is known for its better domestic production labor practices and has a better work track record.
Domestically-made products also have strict property rights, which means your products have a much better chance of not being copied if you go the domestic sourcing route. Shipments can also likely be produced and shipped faster. There is also better communication during the production process because most Americans speak English and there won’t be any miscommunication. Remember that the “Made in the USA” stamp is also a plus for your buyers looking for seals of approval and labels that prove they are purchasing a quality product.
Domestic sourcing hang-ups, though, include paying more because manufacturing and labor costs are more expensive.
Countries which offer incentives to attract companies are able to land foreign sourcing clients. These incentives include tax breaks, fewer regulations, free property or warehousing facilities and more.
Foreign sourcing, though, does create some hiccups. Depending on the location of the foreign sourcing, shipping for imports can take weeks or longer. You must investigate the customs clearance process in other countries carefully to avoid delays and fines. While looking for the most cost effective approach for your foreign sourcing is important, make sure you find a happy medium that allows you to save money while delivering a quality product within an acceptable delivery time period.
You need to file the correct import paperwork to avoid any customs clearance hurdles. Fill out all your forms in English and make sure everything is filled out. Locate and fill out this import paperwork in its entirety to handle the customs clearance process effectively:
Commercial invoices are used for foreign trade. They contain overseas importing details, including:
Packing lists act as a to do list to make sure you have everything you need and the cargo you provide to freight forwarders and shippers is correct. The packing list works along with the commercial invoice to assist customs agents with everything you need to achieve clearance approval. Customs officials use this list to double check imports for customs agents.
Bills of ladings (BOLs) have tracking numbers to monitor your imports. These forms, which list international shipping details, are distributed by carriers to your import shippers. Exporters utilize BOLs to obtain payments. These forms allow importers to get paid for damages, lost or delayed imports.
When you receive an arrival notice, your goods have arrived at their port destination. This means it’s time to schedule a pick-up for your imports.
Now it’s time to crack your three-digit code. The three-letter digits used for imported and domestic freight are known as Incoterms. These numbers classify the conditions for your goods and outline your import contracts. Licensed customs agents can make sure your goods are labeled with the proper Incoterms.
Are your goods heading to a west coast port of entry or an east coast port of entry? There are so many US ports of entry to choose from. Allow a licensed customs broker to plan the most efficient route for your imported goods that works best for your importing needs.
Sometimes it’s easier to let a customs broker handle tasks for you so you don’t miss anything. A Licensed Customs Brokers can do the following when you sign a power of attorney:
Remember that you have to following the importing rules and regulations from other countries too. Do your homework and find the correct import duty, or tax, for your overseas imports.
Working with a Licensed Customs Agent allows you to avoid customs clearance hurdles during the tedious importing process. Customs Brokers can handle all of your import requirements. Utilize a Customs Broker when:
AFC International and other brokers, though, require bonds on all imported goods no matter what the shipment value is.
Did you know there are two types of customs bonds available for your importing needs? Pick which customs bond type works best for you below:
Single entry bonds work best for importers needing to ship one specific shipment to a port of entry. These bonds are suited best for importers that only need to import every so often. They also work well for freight that is lower in overall value. You can only use a single entry bond though if you import less than four shipments a year.
Continuous bonds work best for those that work all year long to move freight overseas to US ports of entry. Why? Continuous bonds renew every year and you can use them to import multiple shipments throughout the year. These bonds also work best for shipments with high cost values.
Customs bonds are required for your imports. To receive the proper customs bond to conquer the customs clearance process, calculate the customs bond type you need. We also offer cargo insurance through our network of supply chain companies. We will help you through purchasing additional insurance that protects both the importer and the freight.
Are you still confused with the reasons for importing goods and how the process works? If the importing process is overwhelming, contact AFC International today to allow our Licensed Customs Agents to alleviate all of your importing issues. Licensed Customs Brokers are trained to make the import process simple.
Our value-added customs brokerage services work seamlessly to provide you with an importing process that allows you to concentrate on your business. Have questions? Click the bottom right box to chat and we can answer you right now! Clear customs easily with us today by requesting a customs bond quote! We are here to serve you!