How to Export from the United States

What exporting actually involves

For most American businesses, exporting is far less exotic than it sounds. You are selling the same product you already sell domestically to a customer who happens to be in another country. What changes is the paperwork that travels with the goods, who is responsible for the shipment at each stage, and how you get paid.

Almost none of the physical work is done by you. A freight forwarder arranges transport, a carrier moves the goods, and a customs broker handles clearance. Your job is to describe the product accurately, agree on clear commercial terms, and produce correct documents on time.

The export process, step by step

1. 1

   Confirm the business is ready to sell abroad

   Check that you can produce extra volume, that your packaging survives longer transit, and that someone internally owns the export paperwork. Most first exports fail on capacity and follow-up, not on regulation.

2. 2

   Choose a target market

   Start with one or two countries where there is demand, where you already receive inquiries, or where a trade agreement lowers duty for your product category. Concentrating beats scattering.

3. 3

   Classify your product

   Determine the Harmonized System (HS) code for what you sell. It drives duty rates, documentation and whether any controls apply. Treat any code you generate yourself as a working assumption until a licensed customs broker confirms it.

4. 4

   Check whether controls apply

   Most everyday commercial goods ship without a license. Certain products, technologies, end uses, end users and destinations do require authorization. Screen for this before you quote, not after.

5. 5

   Quote using a defined trade term

   Quote as EXW, FOB, CIF, DAP or another agreed Incoterms rule so the buyer knows exactly which costs and risks are yours. A price without a term is not a real quote.

6. 6

   Agree on payment

   Decide up front between advance payment, a letter of credit, documentary collection or open account. Newer relationships usually justify more security; established buyers can earn easier terms.

7. 7

   Book the shipment and prepare documents

   Your freight forwarder books space and tells you exactly which documents they need. Typically a commercial invoice and packing list at minimum, plus any certificate of origin or destination-specific paperwork.

8. 8

   Ship, then follow the paper trail

   Keep copies of everything, confirm the buyer received the documents they need to clear customs, and track the payment through to settlement. Then repeat the process — the second export takes a fraction of the effort of the first.

What you need in place before the first shipment

• An EIN for your business, used on export documentation.
• An accurate product description and HS classification.
• A freight forwarder, and a customs broker if your forwarder does not provide brokerage.
• A written quotation and order confirmation stating the trade term, currency, payment terms and lead time.
• A method for collecting international payment that your bank supports.
• Product packaging and labeling suited to the destination market.

Common first-time mistakes

• Quoting a domestic price with no trade term, then absorbing freight you never budgeted for.
• Describing goods vaguely on the commercial invoice, which slows or stops customs clearance.
• Assuming the buyer will handle everything, then discovering the terms made you responsible.
• Skipping the classification step and discovering a duty or control issue after the goods have moved.
• Chasing a dozen markets at once instead of executing well in one.