You are here:

Exporting & Importing Goods/Questions Answered by Expert Richard Barr

SubjectDate Asked
payment terms - d/p4/19/2011
  Q: what are the risks involved in D/P(sight draft)(payment against documents)to the exporter? can one ...
  A: There's no capital risk as the documents cannot be given to the client without them paying the ...
Starting an import business with a little initial funds3/22/2011
  Q: I am starting an import business in Israel. The products i am importing are from the united states. ...
  A: Have you factored in import customs and shipping costs when looking at your expenses? Have you ...
HOW CAN WE SECURE ON DA TERM3/17/2011
  Q: I am new in export trade a byer from Duabi want the goods on DA basis of 60 days he don't want to ...
  A: Your buyer is unwilling to work with a L/C? That could be a warning sign. Does he refuse due to the ...
Euros to Dollars2/15/2011
  Q: A small start up company importing agricultural equipment into the United States from Germany. What ...
  A: Based on the information you provided, I assume you're looking to create stability in the exchange ...
buyers risk.1/19/2011
  Q: my company recently attended a trade fair and purchase some item from companies in Germany, Turkey. ...
  A: There is no protection for the buyer in the scenario you describe, other than the courts in the ...
Secure Payment for Importing Sugar from Turky1/12/2011
  Q: Richard I am planning to import sugar to my country Saudi Arabia. I found a supplier in Turky who ...
  A: Provided your supplier agrees, you can use always use a bank collection. It utilizes a SWIFT 405 ...
Secure Payment for Importing Sugar from Turky1/12/2011
  Q: Richard I am planning to import sugar to my country Saudi Arabia. I found a supplier in Turky who ...
  A: A simple International Bank Transfer using SWIFT is the most secure transfer method. Your bank ...
I recevied the following copy..is this a scam or real?12/18/2010
  Q: I choose to reach you through e-mail, as it is the fastest medium of communication irrespective of ...
  A: Scam. Honestly ask yourself, why would someone with a serious offer reach out to you over millions ...
IMPORT - TERMS10/6/2010
  Q: GOOD MORNING.. WHAT DOES "FIFO" "LIFO" "FILO" importers mean, when i want to export goods from my ...
  A: These are not Import/Export terms. These are accounting terms. FIFO and LIFO accounting are ...
Transferable Standby LC10/5/2010
  Q: Can a standby LC which is acting as an advance payment LG and/or performance LG, can it be ...
  A: The Standby L/C is used to bypass U.S. laws concerning Guarantees, so if you're not doing business ...
L/C10/3/2010
  Q: Can one set a special condition in L/C that payment will be made upon inspection and approval of ...
  A: Yes but the contract, or at least the applicable part of the contract should also become a document ...
DP SIGHT7/10/2010
  Q: Pls advice that what is meaning of of DP SIGHT. Is this safe mode of payment? & Pls advice that is ...
  A: I'm sorry but "DP sight" is not an acceptable payment term. DP is usually shorthand for deposit, ...
C&F5/11/2010
  Q: I've received a quote CNF from the seller. Do these terms cover destination port charges , or just ...
  A: Under the CFR terms, the seller must clear the goods for export, but once the goods arrive at the ...
C&F5/11/2010
  Q: I've received a quote CNF from the seller. Do these terms cover destination port charges , or just ...
  A: CNF (C&F) defines two distinct and separate responsibilities-one is dealing with the actual cost of ...
resale goods3/15/2010
  Q: If I import goods from the US into an Ontario location for ditribution, is this considered a CND or ...
  A: There is no definite here. It depends on your pricing, the currency funds received in, the ...
trade as middle man3/3/2010
  Q: I'd like to make a transaction as a middle man. I just got an order from a company who will give me ...
  A: There are several options but in essence, you have to get the invoice & all supporting documentation ...
Standard commercial practice with respect to shipped goods10/1/2009
  Q: In standard commercial practice, when does a purchaser of shipped goods actually take ownership? Is ...
  A: The shipping terms are goverened by "INCOTERMS" which are defined by the Internation Chamber of ...
Terms of sales5/7/2009
  Q: I have an opportunity to sell some equipment in South Africa. I would like to have 50% down before ...
  A: I think I'd simplify the terms a little so it would be 50% due on placement of order 50% due prior ...
DA or DP4/27/2009
  Q: Sir, My question is " what is the difference in between payment terms as DA and DP. Which one is ...
  A: There are a number of points to consider. Not the least being the payment types available. Here's a ...
How can I secure my funds when importing from Asia?4/8/2009
  Q: I want buy a fragile piece of printing equipment that's in Indonesia and would like to know how I ...
  A: There are a number of points to consider. Not the least being the payment types available. Here's a ...
escrow account4/2/2009
  Q: We are selling some large used manufacturing equipment from USA to Toronto, ON. THe buyer is ...
  A: There are a number of points to consider. Not the least being the payment types available. Here's a ...
L/C Issue3/30/2009
  Q: I have a client who is in process of opening L/C for 2 used Cranes. It is now 2 months he said L/C ...
  A: Yes, an amendment to the "old" L/C could be done but he'd have to amend the L/C for the complete ...
international shipping and fob1/15/2009
  Q: i'm considering shipping a huge order overseas via fedex courier service. couldn't' i just charge ...
  A: That one I can answer in a straight forward way, if not a little long. First one has to understand ...
TT payment11/20/2008
  Q: I've set up A TT payment with my bank. How nany days does in take to get to the beneficery? Thanks
  A: That depends on the country of origin, country destination, currency and the instructions for the ...
simple query11/14/2008
  Q: Today i had a meeting with my boss due to the current recession when the US bank doesnt want to ...
  A: There are a number of payment types available. Here's a short list. A letter of Credit (LC) is an ...
us money to uk money7/17/2008
  Q: if i wanted to purchase merchandise in the uk and if i wanted to go to my bank and change my us ...
  A: Technically it certainly possible. But there are many questions that need to be answered before you ...
buying brand clothing from china3/21/2008
  Q: i want to buy brand clothing from china and resell it in my clothes shop in ireland is this ...
  A: Name Brand Clothing needs to be bought through the name brand company or a licensed wholesaler, if ...
Export Funds request via TT3/18/2008
  Q: We would like to export the goods under payment terms " Document through Bank , TT Payment to be ...
  A: Yes this is possible but first you have to choose the best payment terms for you. Naturally your ...
exporting & importing goods1/16/2008
  Q: I'm trying to sell copper ore and I would like to know what the following terms mean.CIF;FOB;LC;bill ...
  A: That one I can answer in a straight forward but very long way. The shipping terms are goverened by ...
safe payment options9/15/2007
  Q: regarding the last question you answered concerning remittance TT. I would like to know about a safe ...
  A: you have several options in terms of trade finance. I'll discuss a few of them here. Based on my ...
L/Cs9/4/2007
  Q: We have a SME in Dubai, currently we have a nice business of appx. 30 Million USD turnover, our nett ...
  A: The easiest path to take is straight to your current bank in Dubai. If they are not able to assist ...
about L/Cs8/2/2007
  Q: We are import/export agent. We have a buyer in USA. Can we invoice our client in USA to open ...
  A: Yes, but either side's bank may not agree to cooperate. A lot of banks do not like complex L/C ...
Trade Finance S/W company7/24/2007
  Q: Sir, I come to know about you while searching thro google. I am interested in keep in touch with ...
  A: I don't have a lot of experience with multiple trade finance systems but yes, Surecomp has a ...
RTGS7/24/2007
  Q: Does every country follow the SWIFT message standards for RTGS or is there any other country which ...
  A: An interesting question. The vast majority of RTGS systems do indeed use SWIFT as thier standard. ...
paying for goods in Hong Kong/China6/2/2007
  Q: have never done this before so not sure what safety is the goods are in China and Hong Kong the ...
  A: A bank transfer, also called a (telegraphic transfer (T/T), is only as safe as the seller. Do you ...
Re: Is Beneficiary shall responsible ?5/25/2007
  Q: My name is Desmond and I'm the Merchandize Manager for our company in Malaysia call LBP WORLDWIDE ...
  A: The answer is short as I do not want to obscure it in detail. If you are the beneficiary of the ...
Preadvice4/27/2007
  Q: I am currently working on a Mazut deal and have hit a stumbling block regarding Preadvice. The ...
  A: The short answer is no. It's probably better. The bank is simply not willing to risk its ...
payment modes4/27/2007
  Q: Asalam u alikum It is easy for you now to answer this time Inshallah.What is the payment process a ...
  A: Ibnemansoor, you have several options in terms of trade finance. I'll discuss a few of them here. ...
safest payments terms1/8/2007
  Q: what is the best and safest way to make a transaction.i would like to start importing , but would ...
  A: It's an interesting question that I'm ask quite often. The answer depends on several factors. The ...
Historical Inflation Rates for Bogota, Columbia11/4/2006
  Q: Richard, I need to find the monthly inflation rates for Bogoata, Columbia, from January 2001 through ...
  A: I certainly can help you with that. For the most part a country's central bank will have those ...
Transferable LC Pre-Advice10/26/2006
  Q: We have negotiated a contract under which we, as the trader, will be receiving a transferable ...
  A: The short answer is no. Your bank is simply not willing to risk its reputation on a maybe. Before it ...
Need some career advice10/10/2006
  Q: Barr I am writing to you in search for career advice. I have read your profile and it looks really ...
  A: I'm flatered that you look at me as an inspiration. I'm not sure I'm actually worthy of that though. ...
Payment overseas9/25/2006
  Q: Since now you know that I am starting this business and I am also trying to protect my money, what ...
  A: The internet is a wonderful tool. I always start by searching through the web. Get as much ...
Payment overseas9/20/2006
  Q: I am trying to establish a business purchasing goods from companies in China and the UK. I have ...
  A: The difficulty you have to face is in your very last sentence: "first purchase would be around 2 to ...
Receiving payment / protecting your account info9/8/2006
  Q: I have a question about using T/T payment type vs. a L/C. You can use a T/T as an individual and are ...
  A: With a T/T, you do not have to give your account number but it helps. You must give your bank and ...
being registered and importing9/7/2006
  Q: you could be a God sent. My freind and I have come up with a needed product which many people are ...
  A: It seems the question is asked for one of two reasons. Either the company has a different price for ...
order financing8/30/2006
  Q: Barr, I am currently considering a transferable letter of credit for a large order from a customer ...
  A: According to the opinion of the International Chamber of Commerce, they say "When a letter of credit ...
importing electronics from china8/22/2006
  Q: I have a small electronics shop and have found a supplier in China for small MP3 players. WHat is ...
  A: If they're really samples, the best way is simply by FedEx or UPS. Any and all documentation should ...
overseas purchase through attorney8/20/2006
  Q: Barr, I was offered a deal by my supplier in which an attorney retained by him acts as a buying ...
  A: Yes, the method of using an attorney (& escrow account) is feasable and acceptable for overseas ...
Importing from Italy8/11/2006
  Q: I'm a Canadian resident and on my last trip in Italy I found sandals that I would like to import and ...
  A: You've located a product you want to trade in. Have you located the manufacturer or simply the ...
importing into the u.s8/9/2006
  Q: sorry I'll be more specific this time. Our plan is to go to Africa (Ethiopia) and bring a couple of ...
  A: Living in Israel. I'm not an expert on the U.S. import regulations. However if you click over to the ...
Export / Import initials8/2/2006
  Q: What does FCO stand for ?. It is a document issed by a Seller. Many Thanks for explination of BCL ...
  A: FCO is generally a Full Corporate Offer. Sample below but as the previous samples, this is ONLY for ...
Explanation of initials8/2/2006
  Q: What do the initials BCL and LOI stand for in the Import / Export market ?.
  A: The short answer is that a BCL is short for "Bank Comfort Letter", while a LOI is a "Letter of ...
Importing from China7/4/2006
  Q: We want to buy items from China. We found a manufacturer and he can produce what we need. Once we ...
  A: The price you're being quoted is NOT for 9 boxes but rather for a 20 foot container. (containers ...
re: Payments and collections6/7/2006
  Q: I have what I think may be an unusual situation. I am a business consultant and last year set up a ...
  A: Yes, I have an Idea. Remember the old proverb "If it's too good to be true, it probably is"? The ...
Doubt11/9/2005
  Q: What are the points that has to be pondered while receiving or verifying a Letter Of Credit? Urs ...
  A: That's an excellent question. Starting with the obvious and working our way to the hidden... Is the ...
Protecting my sources10/14/2005
  Q: I'm located in Canada and looking for ways to ship directly from my supplier in China to my ...
  A: A very interesting question. There's not a 100% fool proof guarenteed way to do what you want but if ...
Importing into the UK8/29/2005
  Q: The product(s) are manufactured in India. They are all herbal products. The plan is to manufacture ...
  A: You've got a bit of homework ahead of you but I believe by looking at these 2 links, you'll have a ...
Importing into the UK8/29/2005
  Q: I have a product that has been registered in Portugal (EU). Would it then be possible to import the ...
  A: I'm sorry I'm not a U.K. customs expert but I'd like to help. You didn't provide near enough ...
information on import/export8/20/2005
  Q: Barr, I am considering a possible career change and was interested in the import export business. ...
  A: There are some mighty big questions you're asking. If you live in the USA and are bring goods into ...
Standby L/C3/14/2005
  Q: i live in the USA. I am into exporting motorcyles from uSA to worldwide. I just got a contract worth ...
  A: Unfortunately, American banks are really behind the times in Trade Finance. They're so advanved in ...
Canadian money order from U.S.2/16/2005
  Q: Up here in Canada there is a band selling their DVD on their website, one of the payment options is ...
  A: Get the group (or the business rather) to accept payment in U.S. Dollars, which is really easy for ...
Tips- Business in China2/5/2005
  Q: Barr, Do you have any general tips to deal with communication issues when working with overseas ...
  A: That one is very clear as is the answer. Make sure everything important is documented in writing. ...
Customs Broker1/26/2005
  Q: I have a master's degree in Mechanical Engineering and I am sort of sick of the engineering jobs. ...
  A: What is it you think a Customs broker does? Perhaps your thinking on the lines of an exporter or ...
import/export terminology...10/13/2004
  Q: would you happen to know where I can find out about the terminology of importing/exporting. For ...
  A: That one I can answer in a straight forward way. The shipping terms are goverened by "INCOTERMS" ...
china8/2/2004
  Q: Good Morning, i'm thinking/wanting to import goods from china, what kind of bak accounts do i need, ...
  A: What type of bank account you need depends on where you live. The USa for instance doesn't need a ...
Making sure the goods are in the box4/12/2004
  Q: I'm having a couple of products made in China. FEDEX says the best way to pay for these is with a ...
  A: That depends on valuable the contents are and how much you're willing to pay for it. You can always ...
How to know if a company that your placing a order with and giving money to exists?3/15/2004
  Q: I'm not sure if this is your area or not, but I hope so. I'm trying to choose an overseas ...
  A: You could ask that a "Letter of Credit" be used if you don't trust the company. It'll reduce the ...
Importing process3/14/2004
  Q: I'm starting my own business up in the entertainment electronics field. In essence, I will be the ...
  A: Simply put "Bank Swift Cash" means in U.S. english = Wire the money U.K. english = Cable the money ...
Canadian Brokers11/26/2003
  Q: I'm located in the US, selling baby products made in China. I'm speaking with a Canadian company ...
  A: You're right, this isn't my expertise but I'd like to help. I think I can at least get you going in ...

All Questions in This Category

Exporting & Importing Goods

All Answers


Answers by Expert:


Ask Experts

Volunteer


Richard Barr

Top Expert on this page

Expertise

My professional expertise is International Banking, concentrating on the areas of Money Transfers/Payment Systems and Int`l Trade Finance. Due to the high amount of travel my job requires, I am competent to give information concerning "Business Travel" as well.

Experience

I have over 18 years of combined Banking/Trade Finance experience. Spreading over 4 continents. Having spent 5 years at Wells Fargo Bank provided me with a solid background in banking. After that, I moved to Israel and worked in Import/Export for 3 Years. Followed by another year as the resident expert in trade finance for the Jerusalem region of a medium sized bank. Capitalizing on my proficiency, I moved into the high-tech world where I remain today as a Business Analyst/Project Manager/Consultant for Payment Systems and Operations Risk.

Education/Credentials
Certificate in Speech Communications, AA in General Business. Both from Mission College, Santa Clara - California. BS in Int''l Business/Bus. Admin. From San Jose State University, San Jose - California

©2012 About.com, a part of The New York Times Company. All rights reserved.