The Ins and Outs of Exporting
It is possible to have the logistics of exporting done for you so that you can keep as many of your resources as free as possible. Galaxy Contracting International has partnered with companies that can take the stress and the time-consuming tasks off the shoulders of the business. This is important since exporters have to understand the terms of international shipping. It is also good to have guidance on how to price merchandise profitably.
There are also certain terms to remember, like Ex Works, Free Carrier, Free on Board Vessel, and Free alongside Ship. These have to do with how the merchandise is shipped. The two primary export methods are by ship or plane. This means the merchandise will arrive at an airport or port. The shipper pays shipping prices and the insurance to cover the safe arrival. These costs have to be considered when properly pricing items so that they can be profitable.
Other charges include Delivered Duty Paid and Delivered at Frontier, which is when merchandise is to be delivered to a specific drop-off point. Basically, it is the cost and logistics of making sure merchandise reaches its destination. The good news is that you can receive help if you need it.
There is a lot to remember in international trade, making it difficult to remember everything. By having a third party through GCI to help you, you can successfully execute cross-border trade and even penetrate new markets.
What Happens When Merchandise Arrives at a U.S. Port?
When merchandise arrives at a U.S. Port of entry (border, dock, or airport), the carrier submits an air waybill or a bill of lading to the on-site customs office. The shipper notifies the customer broker, and the clock starts ticking. The broker has 15 days to process the paperwork and get the goods through customs. The broker will use the following documents:
- Form 7533 – this is the entry manifest.
- If you need immediate delivery, Form 3461 is used.
- The air waybill or bill of lading
- A commercial invoice or, if one can’t be produced, a pro forma invoice
- Packing lists
- A certificate of origin may need to be produced.
- Customs bond that is posted by the broker to assure customs that it will get the taxes, duties, and any penalties paid in some way.
After customs has processed all of the documents, the merchandise is then “out on bail.” Summary documentation then needs to be processed, and the broker has 10 days to do it. The shipment is then inspected to ensure legality and so the duty value or tariff can be determined. Customs officials make sure all of the proper markings are present and that everything has been properly invoiced. They also make sure there is nothing illegal within the shipment.
This is a lot for a company to handle on its own when it is also overseeing every other aspect of the operation. Galaxy Contracting International has companies that are willing to take on the logistics of imports so that the burden of compliance, filling out forms, cost minimization, and transportation is covered. It is a practice many companies are opting for in order to maximize their international trade relations.
Defining International Trade
International trade is something everyday people hear about frequently because it is a part of what makes the U.S. economy work. However, it also is part of the engine that makes the world economy run. Goods come in and out of the country all of the time. If a company wants to sell in another country, it is going to have to export. For the U.S. to sell goods from other countries, they have to be imported. The logistics can be complicated. Fortunately, Galaxy Contracting International has partnered with companies that specialize in these areas so that international trading can be carried out as smoothly as possible for businesses around the country. The company is able to handle the following aspects of international trade:
- Import and export
- Cross-border trade
- New market penetration
- Customs clearance
- Global eCommerce
Wealthy countries are able to put their resources to work through international trade. Different countries are endowed with different assets. It is important for them to make these assets and resources available in countries that are in need of them. This helps make possibilities endless for many people around the world, and GCI is a part of that.
Getting Imported Goods through Customs
There are many details involved in the import and export business. It is imperative to have rules, regulations, and strategies in place to ensure both are done smoothly. When imports arrive from their foreign destinations, the first task is to get the arrivals through customs. This is typically done through a customs broker. Unless a company has its own import license, it can’t take its own merchandise through customs.
Galaxy Contracting International has a host of partner companies, some of which specialize in import and export. This helps individual companies prevent a lot of the obstacles that can get in their way. It also saves time in not having to deal with the logistics and intricate details of import. There are four steps to making sure goods are successfully moved through customs:
- Deciding how the merchandise will enter and where it will enter.
- Determining the legality and duty or tariff value of the merchandise.
- Determining the tax percentage that will be charged on the merchandise’s value.
- Paying the duties or tariff.
While these steps may not seem too complicated, there are smaller details that add to the complexity, such as navigating the exchange rate, overall costs, and compliance with different laws. When everything is done right, the process moves smoothly. This smooth and established process can be duplicated in order to achieve import success every time.