International Trade
Do I need an export license?
You can export most commodities freely and without an export license, because they are "NLR" - No License Required. Fundamentally, goods needing a validated license are: weapons, high-tech products that can be used against the United States or its allies, goods in short supply in the United States, possibly strategic goods, which are restricted, perhaps on a temporary basis.
What are some of the advantages of exporting?
Besides the basic profit motive, there are two other major reasons for exporting: 1) It takes some of the peaks and valleys out of the business cycle. One country may have an economic downturn while another country is enjoying relative prosperity. With customers in the United States and several other countries simultaneously, you'll be able to maintain more consistent business projection from year to year. 2) It postpones the end of the product cycle. By the time the U.S. market for a product is saturated, the product can be introduced in new countries.
Where can I find the products for resale?
If you choose to be a middle agent, buying U.S. products for resale abroad (Export Trading Company) or collecting a commission on your sales (Export Management Company), one of your best sources for products is the Thomas Register of Industrial Corporations. It should be available at your public library. Also, you can go the Internet www.thomasregister.com
What's the difference between ETC (export trading companies) and EMC (export management companies)?
An ETC takes title to goods and then resells them. An EMC sells products abroad for another company, and ordinarily arranges the transportation and financial transactions, usually on a commission basis.
What is a foreign trade zone?
A foreign trade zone is a specific place designated by the U.S. Customs Service to be outside the customs territory of the United States, permitting duty-free storage, display, and manipulation of imported goods.
Who is a custom broker agent?
A custom broker agent is an individual of a firm licensed by the government to undertake customs clearance and other services for the importing party.
What is a tariff?
A tariff is a schedule of rates published by the carrier; this also can refer to the Harmonized Tariff Schedule of the United States, which covers customs duties.
Where should I look for resources if I want to import products?
I heard that it is easy to make a lot of money in international trade. Is this true?
Those who get involved in international trade expecting to make an easy (and quick) dollar usually end up losing money. First, you should in for the long haul, not to sell any customer once, but to sell many customers repeatedly over the years. That's where the real profits are. Second, if the product doesn't sell in the domestic market, don't expect to make millions selling it to foreign importers. Many products are available at discounted, liquidated prices because nobody wants them.
How can I get started in international trade?
To get started in international trade, you can take courses and seminars in international trade at your local universities or colleges or visit the Small Business Development Center (SBDC). The SBDC also offers individual counseling on international trade free of charge.
SBDC @ Palm Beach State
3000 Saint Lucie Ave. Ste AD411
Boca Raton, Fl 33431
t 561.862.4725 | f 561.862.4727
© 2009 Small Business Development Center at Palm Beach State College
t 561.862.4725 f 561.862.4727 | sbdc@palmbeachstate.edu
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