Developing Import Strategy

There are two basic types of imports: Intra-company imports (these provide intermediate goods and services to companies that are part of the firm's global supply chain) and imports that provide industrial and consumer goods and services to individuals and companies that are not related to the exporter. There are three basic types of importers:

o Those that are looking for any product around the world that they can import and sell domestically.
o Those that are looking at foreign sourcing to get their products at the cheapest price.
o Those that use foreign sourcing as part of their global supply chain.

The Role of Customs Agencies:
When importing goods into any country, a company must be totally familiar with the customs operations of the importing country. A broker or other import consultant can help an importer minimize costs and delays.

Documentation:
The importer must possess and file specific documents in order to take possession of imported goods when they arrive at their destination country. The specific documents customs require vary by country, but include an entry manifest, commercial invoice, and packing list.

THIRD-PARTY INTERMEDIARIES:
Third-party intermediaries are used by both exporters and importers. They are companies unrelated to the importer or exporter whose purpose is to facilitate trade.

Direct Selling:
Direct selling is when an exporter sells through sales representatives, to distributors, to foreign retailers, or to final end users.

Direct Exporting through the Internet and Electronic Commerce:
Electronic commerce is an important way for companies to export their products to end users. It is especially important for small and medium-sized enterprises (SMEs). Internet marketing is a direct form of marketing that is exploding in importance.

Indirect Selling:
In indirect selling, the exporter sells goods directly through an independent domestic intermediary in the exporter's home country that exports the products to foreign markets. The major types of indirect intermediaries are the export management company (EMC), the export trading company (ECT), export agents, merchants, remarket, and piggyback marketers.

Export Management Companies:
The EMC primarily obtains orders for its clients' products through the selection of appropriate markets, distribution channels, and promotion campaigns. The EMC may also take care of export documents, arrange transportation, set up patent and trademark protection in foreign countries, and assist in establishing alternative forms of doing business, such as licensing or joint ventures.

Export Trading Companies:
ETCs resemble EMCs, and the terms are often used interchangeably. ETCs are like independent distributors that match up buyers and sellers. Rather than representing a manufacturer, an ETC looks for as many manufacturers as it can find to supply overseas customers.

Non-U.S. Trading Companies:
Japan has the largest trading companies in the world. The sogo sosha (the Japanese equivalent of a trading company) can trace its roots back to the late nineteenth century. The Japanese trading companies are big in commodities.

Piggyback Exports:
Sometimes an exporter can use another exporter as an intermediary. For example, a company may agree to supply products to a foreign distributor even though it does not produce the entire range of products. Then it might look for other manufacturers to fill the gaps in the product line. In this way, the second manufacturer becomes an exporter indirectly by using the first exporter's distribution channels.

Foreign Freight Forwarders:
To assist in the transport of goods from one country to another, companies usually employ the services of a freight forwarder. A freight forwarder is an agent for the exporter in moving cargo to an overseas destination. Even export management companies and other types of trading companies often use the specialized services of foreign freight forwarders.

Documentation:
Freight forwarders also can help exporters fill out exporting documents. Of the many documents required, some of the most important are: pro forma invoice, commercial invoice, bill of lading, consular invoice, certificate of origin, shipper's export declaration, and export packing list.