How To Import Food Items

Once you decide to dive into the world of importing,  it will be critical that you do extensive research into the goods you wish to import and your potential suppliers.  Importing food is especially tricky because of The Public Health Security and Bio-terrorism Preparedness and Response Act of 2002.  This act dictates that the FDA (Food and Drug Administration) take additional steps to protect the public from any threatened or even an actual terrorist attack on the United States food supply.  According to the FDA, “Importers can import food into the United States without prior sanction by FDA, as long as the facilities that produce, store, or otherwise handle the products are registered with FDA, and prior notice of incoming shipments is provided to FDA.”   The FDA can detain shipments if they don’t comply with U.S. requirements.  To adhere to the Bio-terrorism Act, the FDA has established new regulations requiring that (1) Food facilities are registered with the FDA, and (2)The FDA be given advance notice of food shipments being imported.  You can view a convenient Food Articles Quick Start Guide provided by the FDA that will certainly prove helpful.

Your next step will be to identify suppliers.  You can visit EventsEye.com.  They are a great resource for finding trade shows. You might also try a site like ImportGenius.com to locate suppliers.  ImportGenius.com tracks all U.S. ocean freight imports and makes the data searchable and easy to access via the web.  By viewing those shipping records, you can determine who is exporting food into the United States, who their customers are, if they have repeat customers and if they have a solid track record of regular and sizable shipments clearing customs.

It is critical at this point to investigate your potential suppliers thoroughly.  Visiting the company in person is by far the best way to determine if a potential supplier is someone you want to put your trust in.  What you find when  you walk through their doors could make or break your decision to partner with them.  Once you have weeded out questionable suppliers and have decided who you want to work with, you are ready to begin placing orders.  You will need to arrange payment terms.  The industry standard is usually a down payment of 20-30% of your order total with the balance due just before shipping.  Keep in mind that you have the option to have your bank issue a letter of credit, but considering the “red tape” involved, you may prefer to offer the down payment.

You will have time while your order is being prepared and should use it to look into arranging freight companies, setting up a customs brokerage to handle your imports, and booking a drayage company to transport your goods to your warehouse once they arrive  at the U.S. port. If you’ve never imported food into the United States, its highly advisable that you work with a licensed customs broker with experience handling shipments with the FDA, USDA and other government agencies. There are many exceptions and nuances in the law, so you’ll need to be aware of the exact regulations affecting your shipments.

You can find a list of all licensed customs brokers in the United States at USCustomsBrokers.org or you can try OceanAir Logistics (a customs broker that can clear goods through customs and have the shipment delivered to its final destination).  They specialize in most imported goods including grocery items.

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How To Import Bananas

So you’re ready to import some bananas into the U.S.?  This article will help you get started.

Did you know that Wal Mart sells more bananas than any other product?  According to Banana Link, North America and the European Union import about two thirds of all banana exports worldwide.  Japan is the third largest importer, but imports three times less than the two top ranking banana importers.  According to data from ImportGenius.com, the United States alone received 7,933 shipments of bananas over the course of the last 12 months.

Like other food item imports into the U.S., bananas are subject to the regulations set forth by the FDA.  You can also view these requirements at the bottom of this webpage for Registrar Corp.  Registrar Corp is a company that assists importers/exporters with regulation compliance.  While I am sure any reputable banana supplier is already aware of the regulations required to export bananas into the U.S., you should always do your own research as a precaution.  You will not want to be held accountable at U.S. Customs for shipments not meeting these standards.

A great place to find banana suppliers is EventsEye.  You can search their database of over 8,000 upcoming Trade Shows, Exhibitions and Conferences for the next two years for banana suppliers.  Whether you find your suppliers via the web or at a trade show, you will want to confirm their reputable standing by visiting them in person, if possible.  You put your brand and company in general on the line when you put your trust in a supplier that is not reliable.  You may want to visit FITA for more useful information. Also, the International Banana Association (IBA), a trade organization representing the common business interests of the banana industry, has members that include such companies as Banacol Marketing Corporation, Chiquita Fresh North America, and Del Monte Fresh Produce, Inc.

Once you have done your research and have found suitable banana suppliers for your needs, you are ready to begin placing orders.  You will need to arrange payment terms. The industry standard is a down payment of 20-30% of the order.  The remainder will be due just prior to shipping.  Your bank can also issue a letter of credit, but that is a slower process and requires more paperwork.  If you trust that your supplier will follow through with your order, giving a down payment is probably the best option.

Now that you have placed your order, you can begin arranging freight companies and lining up a customs brokerage to handle your imports and book your drayage company to transport the goods to your warehouse when they arrive.  An easier route would be to hire to good customs broker to take care of all of this for you.  Their experience and knowledge can save you time and money in the long run and spare you the trouble of dealing with your shipment clearing customs.

A great site for locating a customs broker is USCustomsBrokers.org.  Not only does it list all the customs brokers in the U.S., it also allows users to post reviews and share their experiences.  Whether your experiences with a customs broker have been good or bad, you should share the information with the community for the benefit of your fellow importers.

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How to Import Rice

Rice imports are subject to certain regulations set forth by the FDA.  These requirements can all be viewed at the bottom of this webpage for Registrar Corp., a company that assists manufacturers, exporters/importers, etc. to follow the “rice rules”. I’m sure any reputable rice supplier is already aware of these regulations and follows them accordingly, but you should always research to make sure.  You do not want to be held accountable at U.S. Customs for an import that does not meet these standards.

Asian nations produce over 80% of all the world’s rice, but there may be sources closer to home.  According to data from ImportGenius.com, there were 43,186 shipments of rice in the last 2 weeks (10/8-10/22, 2010).

Events Eye is a great resource for finding trade shows in general, and they have a lot of natural and organic products trade shows, where you may be able to find some rice suppliers.

You will want to verify any sources you find whether it be a supplier from a trade show or from a website. It is important to do this in person by visiting the supplier if at all possible. Your whole goal is to find a few quality suppliers that you can count on to deliver when you need them the most and build a long-standing relationship with them. Your entire business can be contingent upon the fact that your supplier is reliable. Great advice is available from SmartChinaSourcing about these issues as well.

When your supplier homework is complete and you are ready to start placing orders, you will also need to arrange payment terms. An industry standard is a down payment of 20-30% of the order, where the remainder is due just prior to shipping. You could also have your bank issue a letter of credit for the order, although it may slow the process and add more paperwork. If you trust that your supplier will not run off with your down payment, making a down payment is the better option. And the goal in life, is after all, to form a “seamless web of deserved trust” in the words of Charlie Munger.

While your order is prepared, you can look into arranging freight companies, lining up a customs brokerage to handle your imports, and booking a drayage company to transport the goods to your warehouse once they arrive at the U.S. port. Or you would be better off hiring a good customs broker to take care of all this for you.  Since they have prior experience and knowledge that can save you precious time and money, you could be spared from unexpected headaches with customs clearance as well.

USCustomsBrokers.org has listings for all the customs brokers in the U.S. and allows users to post reviews to share their experiences. If you’ve enjoyed working with a customs broker, or know one that people should avoid, you should share it with the community there.  There are also many shippers associations like UnitedShipping.com which have regional partners all over the world to help you with imports from any country.

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How to Import Tea

Tea is drink that holds a long-standing tradition in many countries and cultures throughout the world. There are thousands of varieties, flavors, and ways to drink tea. Green tea has become extremely popular in recent years because of its naturally non-caffeinated and high level of antioxidant qualities. Tea also provides a sense of healing power for sore throats when coupled with honey and lemon.

There are multiple places in the world where tea is grown and produced, with the biggest producers located in China.  The most helpful way to find suppliers in order to begin a tea importing business would be to attend a trade show specified for the tea industry which can be found on these websites: Events Eye and Canton Fair. Trade shows are very helpful in that you are meeting companies in person and often are able to sample the products as well.

There are also online options for sourcing suppliers of tea through B2B portals like Alibaba and GlobalSources, though you will want to verify the validity of these companies, as they are paid listings. Another online option is Import Genius, a subscription based service which will give you access to a searchable database of over 50 million U.S. import records; one-time reports of specific companies may also be requested.

After you find a supplier you want to work with, you are ready to place orders and arrange payment methods. If you have found a trusted source, the best and most common payment method is a 20-30% down payment with the remainder due at the time of shipment. A more secure, yet time-consuming and less hassle-free method, would be to have your U.S. bank issue a letter of credit.

Now is a good time to find a good customs broker who will make your whole importing process smooth-sailing. A good broker will be able to connect you with a low-cost shipping company, clear your shipment through customs, and make sure you are following any special regulations that may apply for importing tea. The customs broker will also connect you with a drayage company that will pick up your shipment and deliver it to your warehouse at the arriving destination. Until CustomsHQ is finalized, you can locate a good customs broker here: USCustomsBrokers.org.

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Restricted Items: Meats, Livestock & Poultry

Regulations change often for meat imports based on the disease outbreaks occurring in different areas of the world. The USDA-APHIS website keeps a current list of countries and regions concerning livestock and poultry diseases on the Animal Disease Status webpage. The APHIS regulates meats, livestock, poultry, fruits and vegetables and urges travelers to contact them with more information or concerns before departing.

Importing dried, canned, or fresh meat products from most foreign countries is prohibited, along with products prepared with meat.

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Restricted Items: Fruits & Vegetables

Fruits and vegetables introduce the risk of bringing pests and diseases in to the United States. Whether or not the CBP will let you bring that fruit you bought in the airport, but didn’t eat, into the  country depends on what it is and where it came from and where you are going after you arrive. Even from just one infected piece of fruit, an entire outbreak can occur (1980′s Mediterranean tomato fruit fly infestation) and cost the government millions of dollars to recover from.

You can find a list of generally approved items that will need a permit on the USDA-APHIS website.

Violators may receive from $300-500 in fines when attempting to import restricted items. It is best to report items to the CBP to find out if they are allowed.

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Restricted Items: (Prepared) Food Products

Most prepared foods such as baked goods, condiments, some cheeses, coffee and tea are allowed into the United States. It might be smart to avoid rice since it has been known to house insects. Visit the FDA website to see if your food items meet additional requirements. Most meats and poultry will be regulated by the USDA (APHIS – Animal & Plant Health Inspection Service). On this website, you will find much more information about bringing food into the U.S.

Products that are NOT allowed:

  • African bush meat (and anything containing meat products – soup mix, bouillon, etc)
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How to Import Coffee

So you want to be a coffee importer. This simple post will explain some of the basic information you’ll need to get started in the business.

For starters, you won’t be able to start importing coffee until you find a supplier to buy from, right?  Trade shows and the wonderful world wide web will probably be your best places to start this search.  Events Eye is the best resource we’ve seen for finding trade shows specific to your industry. For example, searching the keyword “coffee” pulls up SIC Exhibition (devoted to Coffee Industry in Milan) as well as 20+ more trade shows around the world.

Be careful when looking for suppliers through the web and do as much research as you can about the factories. You may even want to consider a trip to visit the factories and examine the working conditions and how the company runs their business. If you are to have an established relationship with a company, wouldn’t you want to be familiar with their business practices, how they treat their employees, and in turn, how they will treat you as a buyer?

It may also be a good idea to look into an account with a company like Import Genius, a searchable database of shipping manifests for importers/exporters all over the world. An in example, by searching for the consignee “Starbucks”, you can easily see that just one of their many suppliers is TAYLOR WINCH (COFFEE) LTD located in NAIROBI KENYA. Contact their supplier and you can start importing “Starbucks Kenya Arabica” coffee, too! You can also search by product “coffee” or “coffee bean” and find shipments coming from other parts of the world, for example, a supplier CAFCOM, S.A. shipment from Guatemala.

Once you’ve placed your order with your trusty supplier, you will need to secure payment terms with them. To save time, money, and extra hassle, the best way to go about this is to pay a 20-30% cash down payment that most suppliers will ask for. Your other option would be to get a letter of credit from a reputable U.S. bank (from their trade finance dept.) but the bank will tack on additional fees and transfer the letter of credit to your supplier.

Your next step would be to look into hiring a customs broker who will help you with a number of requirements for importing.  CustomsHQ will help make this process as smooth and easy as possible. A good customs broker will be able to get all of the important documents you will need lined up and also be able to help you find low-cost freight services, clear customs with the least amount of hassle, and find drayage (trucking) companies that pick up your shipment from the U.S. port and deliver it to your warehouse. Your customs broker also knows how to comply with additional regulations put forth by the USDA and FDA for any imports involved in the food industry.

Find other detailed instructions and advice on how to import (just about) anything from (just about) any country.

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How to import cheese

So you want to be a cheese magnate, purveying the finest French delicacies to your favorite posh wine bars, fine dining establishments and up-market organic grocery stores.   It turns out, importing cheese is not so easy.

The first step is to obtain import licenses from the Department of Health and Human Services, the Food and Drug Administration, the Center for Food Safety and Applied Nutrition, the Office of Food Labeling and the Department of Agriculture.  Yes, that’s right, you need permits from all of those agencies before you can import any cheese into this country!

And don’t even think about bringing the best French cheeses to this country.  Almost all the artisanal French cheeses that you loved and adored on your last trip across the pond are unpasteurized, and therefore forbidden from import.

If you still want to proceed despite all these obstacles (a mountain of red-tape just to import a second rate product!!), then more power to you.  We at CustomsHQ.com love helping determined entrepreneurs who won’t be dissuaded from their dream.  So if you have the patience and the deep pockets required to comply with all the regulations and permitting requirements, give us a call.

We can help you get the permits you need to start importing like the big cheese that you are.

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