Selling to overseas customers.. What do I need to do?

I have requests from a couple of companies to sign up as a vendor.
One in the Czech Republic, and one in Singapore.
One of the largest manufacturing firms in the world.

This is legit, my local customer was bought out by a worldwide super company, with manufacturing around the world.
For some part numbers I am the specified vendor.

One of these part numbers I thought had dead ended, used to see orders for two to five pieces at a time.
Then an order for 250 pieces.
One part number used to have 50 piece orders now 1200 piece order.

And that is still just domestic.

Sounds good.... But WHAT do I need to do for filling orders ?
Rules, regulations, taxes, etc....??
Packing materials? Labeling?
Money transfers?

Anybody have sage advice, and experience?

Thanks again!

Find an attorney to put together a purchasing agreement. It should include:
payment terms
Lead times
delivery quotas
shipping requirements
- packaging
- approved shipment methods (standard and expedited)
Liability insurance
Inventory requirements and excess inventory
Change orders

If they are as large a company as you are saying, they may already have a contract of their own available. But be sure to read it over very carefully with someone who is knowledgeable (i.e. an attorney). If they wrote it, they very likely wrote it to benefit themselves.

In the same situation, I asked if I could ship orders to the local branch and they could ship it overseas as they did this every day. Worked once, then they said my company had to day the overseas shipping. It's been quite a while back but if I remember correctly, the secretary had to go through a lot of paper work. Sorry I couldn't be of more help. Maybe see if you can find an overseas broker(add the additional cost). But I would talk to my customer first.

You need to find a broker and a lawyer well versed in international commerce. Between the two of
them they should be able to answer any questions you have....

3t3d said:

I have requests from a couple of companies to sign up as a vendor.
One in the Czech Republic, and one in Singapore.
One of the largest manufacturing firms in the world.

This is legit, my local customer was bought out by a worldwide super company, with manufacturing around the world.
For some part numbers I am the specified vendor.

One of these part numbers I thought had dead ended, used to see orders for two to five pieces at a time.
Then an order for 250 pieces.
One part number used to have 50 piece orders now 1200 piece order.

And that is still just domestic.

Sounds good.... But WHAT do I need to do for filling orders ?
Rules, regulations, taxes, etc....??
Packing materials? Labeling?
Money transfers?

Anybody have sage advice, and experience?

Thanks again!

Click to expand...

Most of what I sell is to companies outside my own country and in as good as all continents. I sell to some large international companies and they usually require that I fill out papers to become an approved supplier to them.

What I'm getting from your post is that you've received an order (orders?) before becoming an official supplier.

Unless what you're getting is a RFQ then there must be a price and other information on the PO. If in fact you have received a PO and not a RFQ how does the price for many items compare to your usual price for a few?

If what you have received is a PO then my main concern would be what their payment terms are. If it isn't specified then I suggest you contact them to find out what they are.

When I send outside the EU I use Fedex and their "paperwork" is very easy to fill out.

Unless you have "unusual" products I can't see what the problem is assuming you are OK with their payment terms.

Ask what incoterms they want it
And ship or plaine
That will determine how far in the line shipping is your responsibility and when it becomes theirs
And that will also determen the cost of shipping
If you do it by ship CIP nearest port for example then importing is the customers responsibility

Peter

You don't get to go to a giant global firm and impose your contract, its the other way around. there is of course a negotiation on price and payment terms. Find out if they are one of these 90-120 payers - add 10-20% to your bill. My theory is the little guys do not put up with that so most of the low cost competition isn't present. (And there's some idiot in treasury thinking what he shark he is lol.)

You'll probably have to provide a certificate of origin, done here commonly through the chamber of commerce.

The biggy is you have about no recourse on payments (unless there is some government agency that backs you, we do, but its at cost). Global giants don't like tot be told to pay in advance, apparently they have very poor and fragile payable software and that breaks it. I've got one in Africa, huge mine, that I've had to convert to 100% prepayment. Now every time they order they send a down payment, and we respond with an invoice for the balance saying must be paid before goods will be shipped. They beat of a different drummer, sure is different.....as it takes about 9 months of back and forth until the send the funds - and that happens every single time!

It´s very easy to sell internationally.
You don´t need to do anything, except book DHL supply chain services ( do a contract with them) to transport your stuff.

Get payment up front, 100%.
Or a bank to factor your invoice, this way the bank takes 1-2% but you get the money on day 1 and the bank chases the customer for payment.

If a bank wont factor your clients payments, you are likely to not get paid in a timely manner, if ever.
Big companies are quite willing to prepay 100%.
Don´t believe otherwise.

Your state has a few organizations whose remit is to help companies like you export. In Maine, it's the Maine International Trade Center. Wisconsin has a few as well. I don't know which is best for you, but I would call whichever one is closest. Take a look at DATCP Home


State Trade Associations

I would also hire a good broker to handle the export paperwork. There are lots of rules and you don't want to have to learn them. You want someone who is used to doing exports.

Based on what my broker tells me, DHL is probably your best bet for shipping LCL overseas.

Exporting[assuming it is non controversial, paperweights, toasters, etc] is a non issue

You need the tariff number[schedule B] for your products.
IF shipment value exceeds a grand or two, forget which, you need to file online which is a PITA but probably only cause I don't do it often enough to remember

A grand, you can ship in large flat rates and no different than shipping to Iowa, except for price.

Export value is for the shipment not the box, so no winning by breaking it up. There is probably some annual value for reporting levels, and some value where it does in fact make sense to get an agent