John J. Capela

If you're thinking about starting an import/export business, do some research and ask yourself some key questions to see if a career in international trade is right for you. Make sure you're in agreement with the buyer or seller of goods about basic issues regarding your import/export business and stay current on trade rules and regulations in the countries that you're importing from or exporting to.

The single most important document in an import or export transaction is the purchase agreement. With a suitable purchase agreement, you can eliminate or greatly reduce most of the problems that might occur. The terms of sale upon which the seller and buyer must agree include the passage of title, risk of loss, price, and payment.

Setting up a business involves all kinds of little details that are easy to overlook. Following is everything you need to think about in the early days of your import/export business, from registering it to setting up a phone line and more. Registering your business Depending on the type of business you operate, you need to take one or two steps for your business to be properly registered in most states: If your business is a legal entity such as a corporation, limited partnership, or limited liability company, you must file formation or authorization documents for the public record.

If you're considering entering the world of global trade by starting your own import/export business, ask yourself these important questions to see if ready to commit your time and money to the venture: Why are you thinking of starting a business, and what makes you think you'll be successful? How much money will you invest and how much will you earn?

Whether you're importing or exporting goods, business agreements need to exist between the person you're buying from or selling to, and the following key points need to be included in those agreements: The products: You need to be clear about their exact specifications so that you know what you're getting. Sales targets: This includes things like order quantities and the frequency of shipments.

When you're in the import/export business, you need to realize that the process of global negotiations differs from culture to culture in many significant ways. You have to take into account communications issues such as language, gestures, facial expressions. And you also have to consider differing negotiating styles and problem-solving techniques.

Import and export laws differ from one country to the next. Make sure you know the laws regarding international trade wherever you're doing import/export business. Watch out for these common legal pitfalls: Regulations and restrictions: Be aware of how your transactions may be affected by the import/export laws in the United States or in the foreign country involved.

In the past, opportunities for many small import/export businesses and entrepreneurs ended within the borders of their own country, and international trade was only for large multinational corporations. The Internet, changes in technology, and increased access to affordable information have made it easier for firms of all sizes to engage in international trade.

Import/Export Kit For Dummies includes all kinds of useful documents and forms. Just go to the Import/Export Kit For Dummies accompaniment site, click the Downloads tab, and click on the files that you would like to download. Useful documents These documents should be helpful as you set up and run your import/export business: Distributor and Agency Agreement Outlines: This document provides two outlines — one for distributors and another for agents — that you can use in your discussions with other companies.