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Wine Imports To Usa

The law of the sea.

Wine Imports To Usa

Postby Dal » Tue Nov 29, 2016 3:00 am

Dear Davide,

My Father and I are interested in importing wines from Italy and Chile to be sold by us to restaurants here in the US.  I assume that this is a two fold process and more difficult than only importing

My father has compiled much knowledge of the wine industry over his lifetime and I am a new graduate of International Business School with another degree in Spanish, our heads are swimming with ideas.  

What I need is where to start.  What would your advice be on the best way to get moving and not get bogged down in too much unnecessary work?  Who do I talk to to get good advice on the permits I need legally?  How can I find an international bank to work with when there are none in my area?

Also, what books would you recommend as indespensable on the subject?

Alot of questions I know, I hope you can help.  We both would really appreciate your advice.

Sincerely,

Travis
Dal
 
Posts: 53
Joined: Tue Feb 04, 2014 5:52 pm

Wine Imports To Usa

Postby Primeiro » Wed Nov 30, 2016 1:23 am

Dear Travis,

(1) Good choice- Italian wine from the north has already been greatly exploited- but great cheap table wines from the south have not- thus creating a huge import potential- The same can be said of Chile wines- which also represent good value for such a good product- many wines from the south have no additives added as well- another huge marketing potential in a world  where people are becomming sicker because of such(Chemical) additives.

(2) When you finish here read my last  6 or so replies. They are extensive and give hints to all your answers on the subject matter-Everything you want to know has already been writtn many times over. also browse the net by inserting "FTN Exporting" in browser window- many articles should appear in regards to exporting products- many single pages especially in google have induvidual pages on wine question already answered as well-

(3)Bogged down in paper work-??? Look travis, its all about procedures- you learn the basic procedures and stick to the rules; its that simple- Once you have an idea of procedures-you can start importing your wine-OR you emply the service of an export agent-from anywhere who knows what they are doing-as telecommunications today afford such capabilities without the need to even visit the suppliers:

(a) You start ordering bottled wine sample from italy and Chile- make sure its under 1000 dollars lots at a time- As itnternational procedures apply different custom rules for clearance if products bought into a country that are samples-such samples are allowed to pass customs without the usual strict procedures being applied-

(b) Samples;You located the Export winery, you ask for a PRO FORMA invoice via Postal mail for the product you want to buy as samples- when the Pro Forma Invoice arrives- it will have everything you need to know about the samples being purchased- You pay for the wine using the Invoice, and some time later the sample arrive to your door- Order single dozen lots from the suppliers, test , taste and select your order-

(c) While  testing samples - telephone US department of Custom, and ask- "You want to import wines , what conditions do i need to meet- What conditions does my wine need to meet- what are custom import duties and charges"-(EG: different states different laws may apply: Wine additive 220 found in many wines have a" restricted  product" listing by the USA FDA)

(d) So - you have done the testing: You Know your Obligtions as to Imports duties and requrements, now you need to order the Wine- Everything from the exporting country is at the expense of the Supplier; Now get this - When you ask for a quote lets say ONE container Load of mixed wines from italy to US custom Port NEW YORK at CFR or CIF, you have asked for a quote for that includes all obligations the Export Supplier has to take care of- example; C.I.F quote means that the supplier is going to quote you the wine to include - COST, INSURANCE and FREIGHT- and he will be required to provide you with certain documents to prove that the wine has been delivered on board ship at the italian port of loading- before he is entitled to get paid- These include a Clean on board Bill of lading, Insurance certificate- Export Cirttificate, A Certificate of Quality issued by SGS and a Certificate of Quantity and Origin-are the main documents-the supplier must provide such documents to get paid and to proved delivery has been initated-so 50 percent of the work is already done by the supplier who gives you the quote; so whn a quote is required after sampling ask for it to be C.I.F or CFR(Cost and freight) which is the same but cheaper as the Insurance certificate is not required to be sourced by the supplier-

(e) So you ask fro a  C.I.F quote- and state that you will require the above said documents, and any other Documents that US Customs may advise you that may be needed to be produced from the italian side supplier to ensure safe entry into the USA(f) You finally get the quote from the supplier(s)- all defined on what you are going to get, and what documents will be presented-and a final all inclusive price:(The Bill of lading being the most crucial of all documents)-BOL  is the document that says the products are on board a particualar ship in italy ready to sail- In the export buisness for a CIF deal- Once the goods go over the ships rails in italy- the goods belong to  the BUYER- and the seller is entitled to get paid-These terms are defined by ICC procedures defined as INCOTERMS-(so make sur your sales contrat states INCOTERM 2000 trading terms apply)

(g) So you know what CUSTOM expense you will need to cover when WINE arrives in USA port- That's your responsibility: You Know what documents need to be presented from the suppliers side to prove your order is loaded on board a ship in Italy- now you need to ensure payment is initated- for the product-

(h) After getting the quote, you need to  make a simple contract of supply- and get it signed by the supplier(EG: Draft by email for negotiation- formal final contracts by Airmail)  - make sure you leave a bit of time like two or three weeks before the contract becomes effective- when all contracts have been returned as signed- you have a deal:Time to  Go to the Bank- You go to any large USA Prime  bank- armed with all above inforrmation of the quote  and a simple sales contract defining the sale of the wine- You ask the bank that you require to issue a UCP500 bank irrevocable letter of Credit to italy-(not a confirmed credit just a plain irrevocable crredit)

On the sales contract with the supplier, your bank details and that of the supplier are included- Including matter of a performance guarantee- which the seller MUST give to you to cover the cost of issung the letter of Credit  should delivery not occur on time- such a performance guarante value of 2/3 percent of the total order should be enough-

So you are sitting in the bank talking to the export department- You ask for an L/C to be issued to the suppliers, and you MUST define to the bank what documents must be implied on the Credit , as a condition of such a credit - lets say the wine are 2.00 per bottle but after Insurance and freight was added it came to 3.00 per bottle -and the container has 20,000 bottles- then the L/C value for 40,000 dollars needs to be opened-

You hand over the money to the USA bank PLUS all FEE's associated with the credit issuance-The Gredit now states that if all the documents are presented exactly as required to the USA bank by the Suppliers bank, the supplier will get paid- On the credit a Performance guarantee condition will also apply- with the following terms or similar- Upon this credit being advised to the supplier- the supplier shall cause the issuance of a 2 percent performance guarantee to the buyer-

This means 2 percent of 40000 dollars equals 800 dollars-will be sent to you as a bank guarantee issued by the suppliers bank- that if the wine is not loaded on the ship as per the condition of the credit date, you keep the 800 dollars unconditionally- so even it the wine gets on board a day later than the credit date- that 800 dollars is paid to you unconditionally, while the shipments still continues  ts delivery course- so the credit states "Documents to be presented 5 days afer the issuance of the BOL" and its delivered a day later - then the deal continues- but the seller performance guarantee is lost to favour the buyer for  delivery being late;(In INCOTERMS th term delivery is clearly defined- it means delivery of DOCUMENTS and not goods)

ONCE all the wine is on board ship - the Bill of lading is issued- that with all the documents you have asked for-, will travel to your USA  Bank by air mail-(or electronically) the bank checks all the documents carefully it they excatly meet the condition of the credit- The supplier gets his money from the Italian bank-The "delivery" documents are now in your possession;YOU own the wine:

When the ship arrives in the USA lets say 4/5 weeks later- you present all the documents to CUSTOMS- to prove you own the wine- YOU pay all import duties and taxes if any , as you have previously enquired about- and take the wine into your possession- and thats it.

Many  suppliers will employ a freight forwarder to take the wine from the winery in italy to the shippers port-

You can also emply a frieght forwarder to pick up the wine and clear it at customs on your behalf-  You can also employ a  International trade lawyer to make a contract, and you could employ a Export import Agent form anywhere in the world to do everything for you including contracts- working on your advice- regardless what is done and which approach is made all of the above and what I have written previously will still need to apply-

Above is very basic is explanation- so use it as guidance- it shows the paths needed to travel to effectively import wines as a induvidual entity.

BOOKS: if you are going to spend a few months to learn procedures, then the biblke that guides me of whichI highly recommend is "Schimitthoff's Export trade" the "Law and practice of International trade" by Clive M Schmitthoff- it outdated now but still very relevant with the 10 th edition still being able to be purchased New and secondhand-(soft cover)  Its published by "stevens"

It a thick book around 800 pages  but you only need to concentrate on a small section of the whole book pertaining to LETTERS of CREDIT, INCOTERMS, PERFORMACE GUARANTEES and CIF/FOB/CFR- Buyers/sellers obligations- If you can grasp the idea of how procedures are applied-used with the advice provided on my expert sites- you should have no problems, to import such wines-

You should also go to any large PRIME USA bank and ask for the "ICC Booklet" for exporters;(Citi-bank, Chemical bank, HSBC, CHASE...etc..etc..) It further defines International trade  for UCP500 letters of credit issuance and INCOTERM 2000 definitions- most export banks in the USA have it available at a small charge- Go to your own bank first- if they have it bank customers usually dont get charged:USA has many small independent banks- with many localised procedures being applied- BUT you require  to USE A prime bank for reasons of safety and you require to use a UCP5000 letter of credit and apply INCOTERMS in such procedures for the very same reason of safety- these are the worlds leading applicable procedures-any large USA banks deals in such procedures- Kind regards

David Papa

www.ftnexporting.freeservers.com

International trade expert

The art and Science of Italian cookery

www.chefdavide.freeservers.com  
Primeiro
 
Posts: 39
Joined: Thu Apr 17, 2014 12:18 pm

Wine Imports To Usa

Postby Frederico » Wed Nov 30, 2016 5:22 am

Dear Davide,

My Father and I are interested in importing wines from Italy and Chile to be sold by us to restaurants here in the US.  I assume that this is a two fold process and more difficult than only importing

My father has compiled much knowledge of the wine industry over his lifetime and I am a new graduate of International Business School with another degree in Spanish, our heads are swimming with ideas.  

What I need is where to start.  What would your advice be on the best way to get moving and not get bogged down in too much unnecessary work?  Who do I talk to to get good advice on the permits I need legally?  How can I find an international bank to work with when there are none in my area?

Also, what books would you recommend as indespensable on the subject?

Alot of questions I know, I hope you can help.  We both would really appreciate your advice.

Sincerely,

Travis
Frederico
 
Posts: 40
Joined: Wed Jan 29, 2014 10:30 pm


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