Replying to [virtural]:
1. Do you bank with one of the top 15 banks on this site: http://www.infoplease.com/ipa/A0763206.html

2. Does your bank have a business finance department?

3. Did you also say that your supplier would ship DDP?, or how are they promising U.S. Customs clearance?

4. If you have never cleared customs for any item before, do you know the proper HTS classification of the goods you are importing?

5. Does the product or products fall into any category that would be assesed any ADCVD fees?

Only buy answering for your self and or knowing the answers to 2 thru 5 will you be able to successfuly complete your transaction.



Ranger

Hi,
Yes, I have the HTS classification and my bank is on that list. As for the ACCVD, is that just from Mexico? The DDP or DDU was not specified yet. I am not certain what delivery on the warf, DES or DEQ or on the boat terms imply. I will have to have the items picked by the freight forwarder and delivered to my customers. Is there a best method for that among those choices? Lastly, I dont have a finance department, just a bookkeeper/accountant.

Replying to [virtural]: If you have a bank on that list they will have a department that can help you with opening a Documentary Credit. Small branches of banks dont have these departments and you will have to contact the nearest Business Center for that Bank. In some cases many of those top banks have internet sites from which you can open a documentary credit if you know how.

ADCVD = Anti-Dumping Countervailing Duty

This is assed on certain items imported into the U.S. from which we have no or limited trade agreements and for which there are import quotas. If your items are coming from Mexico, there would be no ADCVD as Mexico is part of NAFTA.

Ranger

Quoting from [virtural]:

This is my first time importing and the seller has agreed to a letter of credit.

Now is there someplace that is best priced or best to go to? How much do they cost? Also, they agreed to clear my items thru customs but seemed to be holding back something. Is it much cheaper to do that my self ? If so where can I go to find information on that.



Thanks in advance.

Most money center banks in the US offer international trade services and letter of credit is one service they offer. Clearing Customs is a totally different issue and has nothing to do with payment and letter of credit. If this is as you said the first time you are attempting to import you need to seriously consider hiring a Custom House Broker (CHB) that can help you clear goods, you will be glad you did! Yes, you will pay fee (shop around), but that is nothing compared to, say, if the goods were to be held by customs. To find CHB contact the National Association of Freight Forwarders and Custom House Brokers Association and get at least three names from your area and contact them on the service they provide and their fee. Additionally, I suggest that you visit the US Customs web site at http://www.cbp.gov/ to learn more about importing into the US. If your customer agrees to clear your goods, make sure that you understand the process, because as an importer on record you are ultimately responsible if any thing goes wrong at the port of entry.

 

 

 

Ok, but on the customs side. Isn't there one of those abbreviations that I mentioned above that the seller can agree to do that will clear them thru customs for me and alleviate that risk you just mentioned?

Replying to [virtural]: Even DDP does not mean that the item will clear customs. The responsibility for customs clearance falls on the importer and or the importer and clearing agent. Also keep in mind that if you are importing large quanities you may even need a customs bond.

Ranger

Large quantity? Would anything under 50,000 units be considered large? I was expecting up to 30,000 units a shipment. I am not concerned as much about clearing customs because there should not be any problems. What kinds of problems could arise if it has a small tariff and is legal?
Lastly, I was also curious about Irrevocable at Sight by Payment VS Irrevocable at Sight by Negotiation. The seller said by sight and didn't specify which one. Is there one that is better for me?
thanks

Replying to [virtural]:You should be able to get a LC through your bank.

For the L/C, I think you should check with your bank to know the cost; the customs to get the clearance procession. then you will know the real one.
Practice, then you will know all the information you want to.

-------------------------
This is Panda Pan, sale manager of Shengya Industry Co., Ltd
Our business scope:a wide range of children and babies clothes, especially 2pcs set, baby Romper, knittd and woven garments.

QZSHENGYA INDUSTRY CO,LTD
Add:Ruixiang DongYuan,CiTong West Road,Quanzhou City,Fujian province,China
Tel: +86-595-22102996
Fax:+86-595-22111536
Website: www.qzshengya.com
Email: panda@qzshengya.com
Msn:pandaxiaojian@hotmail.com
Looking Forward to your further inquiry.

What about to use ESCROW ? I read here its pretty safe to use it. Am I wrong or missing something ... ?