Import/export

Re: [spiers] Import/export


In a message dated 3/12/03 9:53:59 AM, quang_n0@yahoo.com writes:

<I am about to fill an order from Japan (new customer),

***A customer in Japan is buying goods you imported from a third country into
the USA, some of which you will now ship to Japan?***

but
there are several details I am not too sure. 1. Shipping
will be paid by the customer at destination???

***Normally yes; if the above is true, then you would say "Price FOB San
Francisco (or whatever your location)" and you would ship "freight collect"
meaning they pay for the goods at teh other end. Just be sure to get precise
iinstructions from the buyer on how they want it shipped to them Sea Parcel
Post, UPS Next Day, etc***

2. Payment:
wire money as order confirmed or 1/2 now 1/2 before I
ship???

***Since you are the exporter, normally you would get all money as you ship,
but you are free to take what risks you like.***

This initial order worth $1150.00. Please see if
I am doing things right... Better ways to handle this??

***This is too small for a letter of credit, so some sort of prepayment would
be best. If you cannot stand $1150. risk, then demand complete prepayment,
and if they refuse, then the deal was not for you.

In the future, you might have the country that made the goods ship them to
your Japanese customer and retain the payment for themselves.

If this $1150 in sales cost you say $600, and the duty rate was say 50%, or
$300 paid to customswhen you imported it, then you might request a "duty
drawback" for these goods from US Cusoms, wherein you'd get back 99% of that
$300 paid earlier. Talk to your customsbroker about this possibility.***

John

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