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Wine Imports

The law of the sea.

Wine Imports

Postby Durand » Fri Nov 25, 2016 11:40 am

Hello,

I wanted to know if you have any information on wine imports to the United states? I am going to start a business in the USA bringing in Portugese wines, I have been living in Portugal for a while and I know of many medium sized wineries that make great wines at really, really low prices.

What are the import taxes on wines from the EU and what kind of shipping should I use and what kind of licenses, insurance, contracts, business agreements do I need to do this? How can I find distributors that would be interested in selling the wine? What kind of incentives do I give them? What kind of mark up can I put on the wines that is fair? I have had a sucessful interior design business in the past, but this is my first venture into Importing. I plan on living in Portugal and in the United States. But it is less expensive to start a business in America than to start an exporting business in Portugal, which might be an option later down the line. Any help regarding this is appreciated.

thank you,

Riana

p.s. A friend of mine in Egypt sold one of his Arabian horses to the crown prince of KSA. We might have mutual friends.
Durand
 
Posts: 41
Joined: Sat Apr 05, 2014 4:32 pm

Wine Imports

Postby Porfiro » Fri Nov 25, 2016 9:52 pm

Hello,

I wanted to know if you have any information on wine imports to the United states? I am going to start a business in the USA bringing in Portugese wines, I have been living in Portugal for a while and I know of many medium sized wineries that make great wines at really, really low prices.

What are the import taxes on wines from the EU and what kind of shipping should I use and what kind of licenses, insurance, contracts, business agreements do I need to do this? How can I find distributors that would be interested in selling the wine? What kind of incentives do I give them? What kind of mark up can I put on the wines that is fair? I have had a sucessful interior design business in the past, but this is my first venture into Importing. I plan on living in Portugal and in the United States. But it is less expensive to start a business in America than to start an exporting business in Portugal, which might be an option later down the line. Any help regarding this is appreciated.

thank you,

Riana

p.s. A friend of mine in Egypt sold one of his Arabian horses to the crown prince of KSA. We might have mutual friends.
Porfiro
 
Posts: 53
Joined: Sun Jan 12, 2014 6:35 pm

Wine Imports

Postby beauvais » Tue Nov 29, 2016 8:48 pm

Dear Riana,

Wow..What a question..?where Do I start..?

Let me try to answer it as simply as possible..then go to my community  website on www.ftnexporting.freeservers.com..then send me you fax number via email in the above said site(secured and confidential)..I will fax you some very specific documents on how to try and intitate such a deal...if you simply want to act as a BUYER and SELLER..as for the rest..well here it goes..

(1)Firstly You will be defined as a BUYER or SELLER

as allowed under American Law..which follows both

UCC and ICC laws and rules of international trade..

(2)Follow the doctrine of Strict procedures..Safe transaction is the most important thing..You are a BUYER and SELLER..do it correctly and you will be 100% safe...

(3)Grape VARIETY IS THE ISSUE..IF YOU ARE IMPORTING A WINE WHICH COMPETES WITH AMERICAN GROWERS...CUSTOM DUTIES WILL BE HIGH..IF IT'S A RARE UNSEEN TYPE OF WINE(EG;HUNGARIAN TOKAY)..THEN CUSTOM IMPORT DUTIES WILL BE LESS..(first contact Your  Federal department of Import and Customs..they will advise you on Duties, and bans..)Lets assume the duties for wine from Portugal is 40 percent...Remember the savings comes from the fact that the wine is produced using Cheap labour costs..hence you can get a really good wine from Portugal at great prices...Second- US daIlar versus Portugal currency..assists even more in cheaper imports..

(3)You are not dealing with Mark ups..You are dealing with Gross profits and Net profits..If I Buy a can of drink from and American wholesaler for 50 cents a can..and sell it in a 7/11 store for one dollar..My Markup is said to be 100%..No labour cost..or added expenses are needed to buy a product...then sell it as is..On the other hand,if I sold the same drink in a restaurant for $2.00..then,that is said to be a 400 percent gross profit,and your net profit before taxes is said to be 300 percent..(yes ..! 100 percent dosen't always mean that you can't go over 100 percent..)..The difference between the two methods is that, one needed a drink  glass,service..an allowance for breakage...etc..etc..while other didn't need anything,except the simple act of purchase and resell..In exporting You are not working strictly with Mark up..,you are working with gross profits..,(just like the restaurant)

as so many factors and efforts are required to be done and initiated by you..just to get the wine into the country..

(4)You are also talking about placing the wine for consumer sales..?Hence you have opened up a different set of Parameters..beyond the sphere of simply importing the wine..,you also want to sell the wine in stores around America..

The usual practice is for a BUYER to import the wine into a country,then as a SELLER..resell the wine to someone who wishes to buy it..someone who is ALREADY wishing or set up to buy such wine...Some one who has asked for Wine from Portugal..(Hence using Back to back L/C procedures of the end buyer to buy the product from portugal..using yourself as the Main BUYER and SELLER...)Using other peoples money to BUY and then sell the product..at a higher price earning yourself  a Commssion on the deal..

(5)But this option is now not open to you...You wish to import the wine,then place it YOUSELF as an Exclusive distributor...and hence the problems..UNLESS you have someone in Portugal who trusts you..you will have to finance the whole operation from your own pocket...

You have to make a deal with the Portugal supplier about Exclusive Agency...you will have to promise that SUPPLIER..that you will pay them for each and every DELIVERY 90 DAYS OR 180 DAYS AFTER EACH AND EVERY SAID DELIVERY...OR EVEN LONGER..When the stock arrives you take it..and distribute it among your OWN REPRESENTATIVES who sell YOU PRODUCT all over Amercia..as Money comes into your account from sales...you then send off payments as per your L/C delivery requirements..eg 180 days after each  delivery...

(6)Lets assume..You do have a good friend in Portugal who trusts you...? and he agree's to accept payments for each delivery 180 after documents have been presented..You will need to sign an exclusive agreement where he promises to you for a period of 5, 7 or even perpetually..that he will not export such wines into the USA using anyone else but you....(very Important..if a wine becomes popular because of your efforts..then many in the USA will try and go to your supplier to secure exclusive shipments)

(USE BELOW: as a rough Guide..only)

lets assume the Winery has offered you a price for the wine delivered to port  USA at C.I.F..as per your quote and offger requirements...(Yes..you ask for a Quote first then YOU make the offer to BUY as per YOUR requirements ONLY..they either accept your Terms or decline them)at $2.20 per unit..and a 20 ft  container  can hold 30,000 units packed in One dozen boxes..In this situation..you must immediately double the price of the wine unit cost..Allow for such expenses as Currency Flucuations  @ 5%,add your reps commission per each sale..add the cost of import Duties..say 40 percent per the original unit price..add spoilage and breakage while in your possession...of say 10 percent..etc..etc..The final cost of the wine to be placed on retail shelves could end up to be very high...The retail shop owner then adds his own MARK UP in selling the product to make His own effortless Profit..

Thus:UNIT cost $2.20 plus Import taxes at 40 percent..

88 cents=$3.08 plus double original unit [email protected]

=$5.28..every bottle that the reps place which lead to [email protected] say 25%=$1.32 Total=$6.60 per unit..plus 22

cents for spoilage,promotion,breakage...TOTAL  cost to the shop owner is $6.82..(give or take...) If the shop owner cannot make at least a 50/100 percent Mark up on such a wine,while still remain competative against other locally made wine then they will not buy it from your reps..Lets say final  retail sale Price is approx $10.23 per unit(on the shelf Minimum)..if other local wines are much dearer..then the chance are good  that your reps will makes sales..(without going to the added expense of advertising..the retail outlets will advertise their own special wine products)

Double the unit price...?Yes..if you promised to pay for each delivery within 180 days..then you must assume

at best...that 50 percent of what you have imported  within that period of time..will be sold so that after your expenses and your own profits margins  and that of your rep is considered...you will still have enough money left over to pay for the original unit price..as per your L/C condition.

(eg:30,000 units at $2.20 C.I.F=$66,000 to be paid 180 days after delivery..You have sold 15,000 bottles in this period for $102,300  of which $66,000 must be paid to the supplier... you have $36,300 to pay for all other expenses in this period of time..In time you will have accumulated you your own profits in that by the time the third of fourth(or tenth) shipment arrives..the whole Shipment will belong to you..and you would be in a position to pay for the products as per each delivery occurs...(without the 180 days credit..)Above is only a rough guide...buts it's good sound advice..albiet complicated..That's for a BUYER and SELLER situation

who wishes to become a distributor as well..(if you are able to get 180 days credit or more..on a secured contract..the  the bank will issue the L/C based on your own credit worth..or collateral lodgings..as credit still means that the l/c has to be lodged as being active..if your supplier fails to deliver you would have collected on his 2% perfornmace guarantee,that will cover your intial expenses of getting such an L/C made)

(8)The other way..GET a quote from the Supplier...Call the wine Rianna Shiraz or somthing like that..disguise who your maker/suppliers is buy ensuring that the makers places your own label on the bottles you import..(you can't disguise country of origin)..Try to get some of the biggest Wine retailers interested to buy such a wine..directly from you..its difficult..but possible..you simply beconme the BUYER and SELLER..using the original credit  from the Wine retailer as back to back arrangements...the Wine is $2.20  per unit CIF...you offer it to the Wine retailer for 2.80 per unit..you made 60 cents per unit..without leaving home...Shipping is paid by Portugal supplier...Certificate of health issued by Portugal..Certificate of Quality  done in Portugal...Certificate of Quantity(new laws now must have Quality and Quantity done by two different entities)

Certificate of origin..etc..all from Portugal at expense of the supplier.. Export certification issued from Portugal..as well as B.O.L when ship is fully loaded in portugal port.. Duties are paid by you in USA,after you find out that you can get the products can be cleared by customs..(Import permit...)Such duties are payable..when ship arrives in USA(lets say 25 days)

When the Delivery(Delivery means DOCUMENTS as stated,above reaches your bank,money is released to the Portugal supplier,the remaining difference remans in your account..Your client will have the Documents..hence title of the goods...you have your commission...while the end buyer waits for the ship to arrives  in USA..)..Lets say the ship sinks in the middle of the  sea..the Portugal supplier still gets to keep his money...Your buyer still gets his money back from the insurance company... but your commission will be required to be returned to the buyer as well..unless you isure everything at a higher rate than purchased..say 20 percent more..than the purchase price..This is up to you to mention this in your OFFER to the SUPPLIER..it is alos important that  the offer states that all expeses associated with a transferable L/C are bourn by the SUPPLIERS account..(Depending on how desperate he is in making the sale..suppliers do agree to such terms)..in any case the end result is it eithers costs you nothing or very little...or you make a good gross  profit

because you KNEW how to...without leaving home..

I could write a thousand pages about this matter...so I hope I have explained it in a way you give you a good idea..like is stated...Wow..what a question..?

Good Luck,

DavideAndrew Papa

FTN exporting  
beauvais
 
Posts: 38
Joined: Sat Oct 06, 2012 3:24 am


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