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    21 Replies Latest reply on Aug 22, 2008 10:00 AM by lysapham

    We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.

    naveen Wayfarer

      We are a small Indian Company just starting
      an e store of Indian handicrafts & silver
      jewelry. Our main customer base will be in USA.

       

      We are already having a tie up with the fulfillment agency
      who will send the shipment on our behalf once the order is placed on the
      internet. There is also an understanding between us & the fulfillment
      agency that they will pay the USA
      custom duty on our behalf.

       

      We have done all the formalities of export licensing in India.

       

      I am not sure how the things in USA
      will work for us as basically there is no direct buyer.

       

      Does the above need an import license in US.

       

      Just for a testing I will not be sending stuff of more than
      2000$ .

       

      Since we are an Indian company selling thru internet but our
      warehousing is in USA
      The payment will come directly to our bank in India
      when the customers will pay online thru credit card. In that case the sale
      would be considered as a US
      sale or as an Indian sale & what will be the tax issue on the sale.

       

       


      Items which we will be sending to US

      1. Papermachie \\ & Wooden Handicrafts
      2. Brass \\ & Wrought Iron Gifts
      3. Handmade \\ Paintings
      4. Brass \\ Jewelry
      5. Silver \\ Jewelry (Pendants & Bracelets)

       

       

      Is there any consultant available who can guide us in our
      small business EVEN on a payment basis? Basically it’s a new home based Business
      & our budget is tight to start with.

       

       


      naveen

       


        • Re: We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.
          CorpCons08 Ranger
          I am very confused naveen.
          You are an Indian based company located in India?
          You are having jewelry exported to the United States?
          Sales may occur in India and the jewelry would be sent back to India?
          Explain this a little more please...

          CorpCons08
          1 of 1 people found this helpful
          • Re: We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.
            maxamillion Wayfarer
            Firstly there are a lot of people who do the same business as you do. I have clients who were importing paper machie products from Kashmir and sold it in stores since 25 years ago. You should do a lot of research on these markets. My opinion is to market these directly to end users. Dont try distibutors and agents. It will reduce your profits and eventually run you out of the market. If your products are shipped by the fullfillment agency, as they based in India or in the US. If their stock is kept in the US they will have already paid US import or customs duty and will pay for Sales Tax in the state it is sold. If the agency is going to ship this from India, you will have to undertake to make the payments for the duties and taxes yourself. If you ship directly, American customers are not well versed in duties and get annoyed that these were not mentioned when you sold it to them.

            Also try to get the credit card accounts from Paypal. amercan clients are hesitant to make credit card payments overseas to loss of ID by credit cards. In the case of consultants, try to learn this on your own. It will cost you a lot to get this done by someone else. It is easy to figure out the Tax system on the web. U.S Federal and State Agencies are very cordial to obtain information, unlike Indian agencies. They will help you out when you need information. Good Luck
            • Re: We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.
              Lighthouse24 Ranger

              Could you explain the reason for the arrangement you've outlined?

              Here are the two more common ways an Internet seller in India would sell to U.S. customers:

              1) The U.S. customer buys directly from you the seller in India, and the payment comes to your bank in India. You the seller ship the order directly to the customer's address through UPS or FedEx with a Customs Declaration attached (this document is prepared by the seller and shipper). The shipper bills the seller for the applicable shipping charges, import fees, and duties (a cost that you the seller would have built into your selling price). When the package enters the U.S., a Customs agent looks at the attached Declaration, inspects the contents if the package appears suspicious, and then clears it for entry - where the shipper on this end picks it up and delivers it to the customer.

              2) The U.S. customer buys from an authorized reseller in the U.S. (an American company that represents you), and the payment comes to that company's bank in the U.S. The reseller compiles all the orders from all the customers across the U.S. that day, places one order for all that merchandise from you, and pays you for it with the payment coming to your bank in India. You ship the order to them by freight (air or sea), making it a point to keep the declared value of each shipment below $2,000 (more than that requires a "formal" entry with lots of time and paperwork). When the shipment enters the U.S., the reseller picks it up and clears it with Customs, or hires a customs broker to do that. The reseller then opens the shipment, and fulfills the individual orders from U.S. customers. In this case, your only customer in the U.S. is the reseller. All the individual customers who order your merchandise are actually the reseller's customers, and it is the resellers job to collect sales taxes, pay import duties, etc. -- not yours.

               

              The advantage of #1 is that it is seamless and fast -- but it could be too costly for the type of products you have (the shipping charges you'd have to add in might be more than the cost of what the customer is buying). The advantage of #2 is that it's cheaper and simpler for you -- of course, you'd need a trusted reseller in the U.S. to handle business here, and there has to be a big enough profit margin on your products for both of you to make money from their sale.

              The problem with what you've outlined is this: A U.S. customer buying directly from you overseas is, from a U.S. Customs' perspective, the official importer of what they bought (not the fulfillment agency you're working with). As such, the customer expects to receive shipping, tracking, and customs information from you the seller. Without that, they run the risk that their order will be hung up in customs and never delivered (or their worse fear, that the foreign seller never really shipped the item at all and just cheated them out of their money). For that reason, either of the two arrangements I described above are possibly safer.

              If you choose the first option, be sure to make a secure payment option like PayPal available (so people who can't use their credit card for an overseas transactions can still buy from you).

              I hope this information helps. Best wishes.
                • Re: We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.
                  naveen Wayfarer

                  The business line is :

                   

                   

                  1. we \\ have website and server in India \\ we are Indian company.
                  2. we are \\ using a fulfillment warehouse in USA \\ just to keep our goods.
                  3. our \\ company will hire COURIER COMPANY and COURIER COMPANY will deliver the \\ goods to our fulfillment warehouse in USA we will pay IMPOERT DUTY and \\ SHIPMENT CHARGES to COURIER COMPANY, as fulfillment warehouse is just \\ posting the stuff to our web base clients they want goods in warehouse after \\ custom cleared only.
                  4. now \\ the the customer in USA \\ buy the stuff our fulfillment warehouse send him the stuff which is \\ already duty paid.
                  5. and he \\ pay us the money via credir card and payment comes in to our bank in India.
                  6. for \\ the safty of our customer we are buying SSL \\ certificates from WEB companies like www.verisign.com
                  7. we \\ want to ask in this case do we need to charge the sales tax or any other \\ tax from our client ( please note web customer is getting a import duty \\ paid stuff , which we paid already )
                  8. our \\ sale will call A SALE FROM INDIA as we are based in India \\ or it will call a sale from USA \\ as our goods are stored in USA \\ fulfillment warehouse.
                • Re: We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.
                  naveen Wayfarer
                  hi,
                  thanx,
                  Mr.Doug was very kind and helpful.
                  thanx his web site :

                  www.LighthouseforLeaders.com

                  thanks once again.
                  • Re: We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.
                    diamondguy Newbie
                    Naveen

                    I started life just like you. I started selling jewelry on eBay and looked for someone in the US to ship to my customers and it was very very tough. Things were expensive and taxes etc were really high and I was paying the agents here a lot more than I was earning myself!
                    In short you need to find someone in the similar line of business who will partner with you (its better this way in my experience). let them earn with you and grow your business.
                    I am in oregon. i dont have sales tax issues. The tax I have to pay is Oregon and Federal Income tax. No other taxes. If you want to partner with me then I am ready. I will clear your goods from customs here and import in bulk. I can then ship it slowly to your customers. I have all the resources, office space, warehouse space etc for this.
                    I will charge you a %ge of what you sell so you dont have to pay me if there is nothing you sell. contact me at cs@sparklediamonds.com
                    • Re: We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.
                      vikassah Wayfarer
                      Hi Navin,

                      Since you are leveraging internet as the medium to promote your items, we suggest you do the following:

                      1) open an ecommerce site (if you have not already done that)

                      2) spend some effort on search engine optimization and internet marketing

                      We are professional internet marketing consultants based in NY and Bangalore and can definitely help you out with a very clear cut strategy. We can talk about cost factors as I know your cash flow might be little tight right now.

                      Email us ta: contact@empoweredseo.com or visit our site to get phone number: http://www.empoweredseo.com

                      Regards,
                      Vikas.
                      • Re: We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.
                        shipwire Wayfarer
                        Naveen,

                        Hopefully it isn't too late to respond here.

                        This is a totally typical situation and your fulfillment company should have guided you.

                        1) you need a US Tax ID to land product into the US. It is very simple, even if your fulfillment house was going to pay it, they are likely not the importer of record. http://help.shipwire.com/non-us-importing
                        -into-us/

                        2) Your payment system should send an order to the warehouse once you've approved the order. It doesn't matter where the money goes. Maybe try paypal at first, that is how a lot of our customers send us orders.

                        3) For tax in the state it may come down to whether you leased the warehouse space to create a "Nexus" for tax. Consider not leasing a warehouse space and getting your warehouse as a service. This means you probably don't have a local nexus where the warehouse is...kind of like outsourcing a call center.

                        Again your fulfillment house probably should have guided you to the tax ID.

                        Cheers

                        Nate at shipwire.com

                        ----
                        Order fulfillment, warehouse, distribution, importing, Tax ID, etc are some of the things Shipwire can help with.
                        Warehouses in LA, Chicago, Toronto and Vancouver Canada. UK coming soon.

                        free trial at http://www.shipwire.com/trial
                        • Re: We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.
                          cjewelry Wayfarer
                          if you have a USA based company, you would simply ship as much of your goods to your usa office and sell from that point....and not worry about anything, duties, etc. because you would have made those payments already.
                          costume jewelry demands a high markup because it is so cheap...if it is normally .33 cents, you can sell it at $2 or $3 each and make ur money back quite easily...
                          bank of america will extend to u at least $15,000 line of credit if not more....so your problems are quite minimal.........talk to a business rep. at bank of america...here and in India, they will be more than happy to assit you.
                          working out of the usa would be better for your effort and have your own website through go-daddy...good luck, send me photos and prices thanks
                          • Re: We are a small Indian Company just starting an e store of Indian handicrafts & silver jewelry.
                            lysapham Newbie
                            Dear Sir

                            I am MsDieppham I am living at Vietnam country I am selling Furniture and Handicrafts product all over the world with diversify customer and satisfy any demand from customer Please keep in touch with me by email address as following

                            diep.phams@gmail.com

                            dieppham79@hotmail.com

                            rgd
                            MsDieppham