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.

A distributor is an independently owned business that is primarily involved in wholesaling and takes title to the goods that it's distributing. A distributor is a middleman who handles consumer or business goods that may be manufactured or not manufactured (such as agricultural products), imported or exported, and then sold.

A corporation exists as a separate entity apart from the owners and may engage in business, make contracts, and sue and be sued. The corporation pays its own taxes. Incorporation involves the filing of a charter or a certificate of incorporation with the secretary of state in the state where you want to transact your import/export business and where the principal office of the business is located, as well as payment of a fee.

As an exporter, you need to be aware of the U.S. Customs benefits that are available to you. These benefits are designed to encourage U.S. exporters by letting them exclude any duties paid on imported items from their sales prices. Here's a rundown of the benefits you may be able to take advantage of: Drawback of Customs duties: Drawback is a form of tax reduction in which duties collected on imported goods are refunded to the importer if these goods are exported from the United States.

When goods arrive at the port, Customs and Border Protection (CBP) makes its decision as to the dutiable status of the merchandise — the appropriate tariff classification code, as found in the Harmonized Tariff Schedule of the United States (HTSUS). The HTSUS is the primary resource for determining duty classifications.

U.S. Customs has groups of import specialists who can help you get started in importing. Import specialists are organized according to commodity specialist teams, which are assigned specific types of goods and are available to respond to any questions you have about U.S. importing rules and regulations. Import specialists provide information about the proper classification of goods for the purpose of charging duties as well as information regarding specific agency permits, licenses, or certifications.

When you're looking to be an importer, one of the first things you have to do is identify countries that have the products you want. Depending on what you want to import, you may be limited in your choice of countries. Not every country has every product. As you narrow down your list of countries that have the product you're importing, consider the following: Labor costs: Wage rates in many developing countries are lower, which means you'll be able to source goods at lower costs.

A limited liability company (LLC) brings together two benefits that can be valuable to many business owners and that you can take advantage of when forming your import/export business: Limited liability: The members of an LLC enjoy the same limits on their personal liability as a corporate shareholder does. They aren't personally liable for the company's debts.

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?