IMPORT BOOK - PRO BUSINESS

PREPARED BY: Miguel Villegas Pérez.

INDEX:
1 Business intelligence

2 Types of import

3 Taxes to pay

4 Search for suppliers

5 Operator selection

6 Investment plan

7 AIR – SEA import flow

8 Payment methods

9 Incoterms

10Import document

11 Recommendations
1-. BUSINESS INTELLIGENCE:
 PRODUCT SELECTION
 You must know the price of the product to be imported in the local market to see the
cost benefit
 KNOW IF THEY ARE RESTRICTED OR PROHIBITED PRODUCTS
 DETERMINE YOUR CORRECT TARIFF ITEM
 http://www.aduanet.gob.pe/itarancel/arancelS01Alias
 See how big the market is
 Who is your direct and indirect competition?
 How am I going to sell my product?
 What government entity will give me the permits I need to clear customs?
 What sets me apart from others?
 Is there smuggling of the product to be imported?
 How much tax is paid for the item?

2-. TYPES OF IMPORT

2.1 IMPORTANT EASY: The new method that the sunat has implemented where natural or legal
persons can be welcomed.

BENEFITS:

You do not pay tax if the value of your product does not exceed $200.

If you exceed $200 you will pay taxes (but they are not that high).

Sunat does the customs procedures for you.

You can pay your taxes at banking entities authorized by SUNAT.

The goods arrive at the door of your home.

REQUIREMENTS:

You can only import up to a total amount of $2000 (for each import)

A customs agent does not have to intervene.

A freight agency does not have to intervene

Your merchandise always has to arrive through a postal or courier service.

It is only used in aerial mode.

2.2 FINAL IMPORT: Customs regime that allows the entry of merchandise for definitive
consumption.

BENEFITS:

You can import in large volumes

Recover tax credits (IGV) If you are a company

REQUIREMENTS:

A customs agent or freight agency must intervene

Pay all taxes corresponding to the merchandise

3-. TAXES TO PAY:

IMPORTANT EASY FINAL IMPORTATION

Ad Valorem 4% AD VALOREM 0% - 6% - 11%
VAT 16% VAT 16%
MPI 2% MPI 2%
ISC
PERCEPTION 10% - 5% - 3.5%
ANTI-DUMPING

How do I know how much tax my product will pay?

In order to know what taxes your merchandise has to pay, it is very easy, you just have to
know the tariff heading of your product.

I leave you the link: http://www.aduanet.gob.pe/itarancel/arancelS01Alias

4-. SEARCH OF SUPPLIERS:

4.1-. PLATFORMS: B2B – B2C

Nowadays, if we talk about imports, we are talking about digital platforms. These types of
formats are divided into 2 categories:

 We have B2C platforms (Retail): This category is known because they sell products per
unit and their prices are direct to the end consumer.
In this category you cannot negotiate with the supplier regarding price, quantity,
payment methods, shipping methods, etc.
Example of a BCB platform: http://www.aliexpress.com
  We have B2B platforms (Wholesale): This category is the best known because exporter
and importer negotiations are carried out here, the prices they provide are for
wholesalers and not final consumers. Here you can access supplier data such as
internal company reports, you can negotiate prices, quantities, shipping methods,
payment methods, etc.
Example of a B2B platform: http://www.alibaba.com

 I leave you the link where it shows you how to correctly use a B2B platform:
https://www.youtube.com/watch?v=PAfH0VxeDkA&t=240s

4.2-. MISSIONS/INTERNATIONAL FAIRS:

 CANTON FAIR is held twice a year in April and

October which is divided into 3 stages. (It is the most important in CHINA)
 YIWU FAIR: It takes place almost all year round.

4.3-. INTERMEDIARIES OR BROKERS:

They are agents who are in charge of getting you products, suppliers or doing pre-shipment
inspections.

5-. OPERATOR SELECTION:

5.1-. CUSTOMS AGENT: It is the natural or legal person duly authorized by the respective
customs authorities, which acts before the competent organizations (CUSTOMS, MINISTRIES,
and other private or public entities) in the name and on behalf of a third party that contracts
their services and It grants you an authenticated and permanent power of attorney in the
procedures of import, export or transit.
In short, it is the person who represents you before customs.
If your merchandise exceeds $2000 by law, it is mandatory to hire a customs agent.

5.2-. INSURANCE AGENTS: Entity that acts as an intermediary for several insurance companies,
without being linked or exclusively to any of them, marketing insurance contracts to their
clients. They are used for the benefit of clients in case there is partial or total loss of an import
or export and the total merchandise is replaced 100%

5.3-. FREIGHT AGENT: Is the one who makes and receives shipments, consolidates and
deconsolidates cargo and acts as a transportation operator.

• Be very careful when making a quote to bring it by sea, since you must ask carefully
with the agency that you are going to work with, what the total expense is for their
services, so that you do not get a surprise when you want to pick up. your import, and
 they tell you that there are other expenses to pay. Among the most common and that
should actually be taken into account are:

• 1.- Sea freight: 80 + igv = 94.40 usd (They think it is cheap), but other expenses will
appear

• 2.- Deconsolidation: 160 + igv = 188.80 usd

• 3.- B/L: 45 + igv = 53.10 usd

• 4.- Approved: 180 + igv = 212.40 usd

• 5.- Storage: 269 + igv = 318 usd

• You should always ask about the free storage time that the agency offers you and that
it bears these costs on its own, so as not to pay for the stay. Since they can give you 7,
15 or 25 days off. All of this is coordinated at the beginning.

5-.4-. LOGISTICS OPERATOR: It is also called primary warehouse, it is the place where imports
are stored (TALMA) before starting the customs procedure.

5.5-. TRANSPORT AGENT: He is in charge of collecting and moving the importer's merchandise,
from the authorized warehouse to the reception point of the importer's merchandise (FINAL
DESTINATION "COMPANY OR HOME")

6-. INVESTMENT PLAN: (import cost)

 PRODUCT COST (FOB)
 TRANSPORTATION COST (AIR OR SEA)
 TRANSPORTATION INSURANCE
 PAYMENT OF TOTAL TAXES
 STORAGE COST
 COST OF CUSTOMS AGENCY SERVICES (IF YOUR IMPORT IS MORE THAN $2,000 USD BY
LAW YOU WILL NEED A CUSTOMS AGENT, BUT IF IT IS LESS THAN $2,000 YOU DO NOT
NEED IT AND YOU CAN REMOVE IT YOURSELF THAT IS CALLED IMPORT SIMPLIFIED)
 COST OF PAYMENT OF PERMITS IF THE PRODUCT REQUIRES IT
 COST OF THIRD PARTY SERVICES IN THE EXPORTING COUNTRY FOR DATA
VERIFICATION SUCH AS AUDITS, PRODUCT COUNTS, ETC.
 COST OF MONEY TRANSFERS TO THE DESTINATION COUNTRY
 TRANSPORTATION COST FOR REMOVAL OF MERCHANDISE FROM THE WAREHOUSE TO
YOUR BUSINESS

7-. AIR – SEA IMPORT FLOW

7.1-. AIR FLOW:

 PURCHASE ORDER (DAY 0)

 INITIAL 30% (DAY 1)
 START OF PRODUCTION (DAY 3)
 END OF PRODUCTION (DAY 18)
 CANCELLATION 70% (DAY 18)
 EMBARKATION PORT OF CHINA (DAY 20)
 PERU AIRPORT ARRIVAL (DAY 28)
 UNLOADING AND STORAGE (DAY 28 OR 29)
 CUSTOMS AGENT (DAY 28 OR 29)
 IMPORTER'S WAREHOUSE (DAY 28 OR 29)

7.2-. SEA FLOW:

 PURCHASE ORDER (DAY 0)

 INITIAL 30% (DAY 1)
 START OF PRODUCTION (DAY 4)
 END OF PRODUCTION (DAY 20)
 BOARDING PORT CHINA (DAY 22)
 CANCELLATION 70% (DAY 30)
 SENDING OF DOCUMENTS (DAY 33)
 ARRIVAL PORT PERU (DAY 52)
 UNLOADING AND STORAGE (DAY 54)
 CUSTOMS AGENT (DAY 55)
 IMPORTER'S WAREHOUSE (DAY 55 OR 56)

8-. PAYMENT METHODS:

Today in the world of imports several payment methods are used, some safe, others very risky,
below, we will show you the 4 payment methods most used in imports.

8.1-. PAYPAL: It is an online payment system that supports money transfers between users.
This payment method is widely used for online purchases.

It should be noted that PayPal has a buyer protection policy, meaning that if your merchandise
does not arrive with the conditions you requested, PayPal automatically returns your money
(which is why it is well known).

For each transaction, PayPal charges a variable commission of between 1.9% and 3.4% to the
recipient of the money.

8.2-. WESTER UNION / MONEY GRAM: Here the operating system is person-to-person money
transfer. It is one of the payment methods where scams occur the most. Why? Because money
is being transferred to a natural person and not to a company.
For each transaction they usually charge 5% - 6% of the total amount.
8.3-. BANK TRANSFER (T/T): This is the most economical payment method, here a bank
transfer is made from your preferred bank to the exporter's bank.

8.4-. LETTER OF CREDIT (L/C): This is the safest payment method, here the importer's bank and
the exporter's bank intervene; but at the same time it is the most expensive, as given:
The importer's bank guarantees the exporter that it will pay him as long as he complies with
the importer's conditions (delivery of merchandise, delivery of document on the established
date, etc.)

9-. INCOTERMS
There are 11 terms, of three letters each, that reflect the rules of voluntary acceptance by
both parties—buyer and seller—about the delivery conditions of the goods. They are used to
clarify responsibilities, risks and costs during the import process.

Below, the 4 most used incoterms in imports:

9.1-.EXW (ex Works): The seller's obligation is to have the merchandise available in its
warehouse or factory. All expenses and risks from that moment on are the responsibility of the
buyer.

That is, the importer will have to hire a carrier at origin who is in charge of taking the
merchandise to the international carrier so that this company can then bring the merchandise
to PERU.

9.2-.FOB (Free On Board): The seller's responsibility is to deliver the merchandise on the ship.
The buyer is responsible for designating and booking the main transportation (vessel)

The FOB incoterm is one of the most used in international trade. It is used exclusively for boat
transportation.

9.3-.FCA (Free Carrier): The seller undertakes to deliver the merchandise at an agreed point
within the country of origin, which may be the premises of a transit station, a railway station...
(this agreed place to deliver the merchandise It is usually related to the carrier's spaces). It
bears the costs until the merchandise is located at that agreed point.

The FCA incoterm can be used with any type of transport: air, rail, road and
container/multimodal transport.

9.4-.CIF (Cost, Insurance and Freight): The seller is responsible for all costs, including main
transportation and insurance, until the merchandise reaches the port of destination. Although
the insurance has been contracted by the seller, the beneficiary of the insurance is the buyer.
As in the previous incoterm, CFR, the risk is transferred to the buyer at the time the
merchandise is loaded on the vessel, in the country of origin.

The CIF incoterm is exclusive to the maritime environment.

10-. IMPORT DOCUMENT:

 PROFORMA INVOICE (QUOTE)
 PACKING LIST (MERCHANDISE DESCRIPTION)
 COMMERCIAL INVOICE
 TRANSPORTATION DOCUMENTS (B/L or AWL)
 PROOF OF PAYMENT: BANK TRANSFER (CCI)
 FLYER (DOCUMENT FOR WITHDRAWAL FROM WAREHOUSE OF IMPORTATION
 INSURANCE POLICY (DOCUMENT THAT INSURES YOUR IMPORTATION AGAINST ANY
DISASTER OR DAMAGE
 DUA (SINGLE CUSTOMS DECLARATION)
 SIMPLIFIED DECLARATION (DOCUMENT WHEN AN IMPORT IS LESS THAN 2 THOUSAND
DOLLARS AND IT CAN BE REMOVED BY THE SAME PERSON WITHOUT THE USE OF A
CUSTOMS AGENT)

11-. RECOMMENDATIONS:
 Have a company established with activity for foreign trade
 Request samples before making the purchase to see product quality
 Establish the best payment method to your supplier
 Never make payments to personal accounts
 Use common sense if the supplier is rushing you or quoting through your personal
email is wrong and lends itself to a form of scam.
 Choose qualified and certified suppliers
 Request information at the embassy of your country
 Request information at the chamber of commerce or embassy of your country
 Know the INCOTERMS for a secure transaction
 Get to know the business culture of CHINA
 Visit fairs in CHINA
 Create your own brand and patent it (INDECOPI)
 Hire a good customs broker
 Hire a responsible logistics agent
 Know the PROHIBITED and RESTRICTED merchandise
 Dedicate time and follow-up to your import
 Research your target market
 Prepare a good import costing plan
 Conduct research on Peruvian companies through SUNAT
  Get to know the main ports in CHINA so you know where it leaves from

 You should not be afraid of those barriers that were previously problems such as
language, distance, culture, schedules, scams because with proper planning you will be
able to execute your import without any problem. You have made the best decision of
your life by negotiating with the Chinese because you will obtain better prices and
therefore your profit will be greater.

 You must structure a good marketing plan so that the sale of your product is successful
at the right time and place, because it is not the same to sell a summer product in
winter times. That is why you should avoid accumulating stock.

 Finally, we must constantly track the import by using TRACKING NUMBER or import
tracking code, this can be done through web pages or by calling your maritime or air
agent such as:
FEDEX, DHL, EMS, HONG POST, CHINA POST, UPS and many others

 Remember that if you are new to the world of imports and you are going to do it not
only from CHINA but from any part of the world, you must understand that it is a
process from less to more, so first you must look for a reliable supplier, then ask for
samples. free and of course you pay the shipping cost, followed by ordering a small
order of 50 or 100 units and then verifying that everything was sent well with good
quality and packaged in the agreed time, so one has more confidence and can make a
highest volume order.
The law that says that as a natural person you can import a maximum value of $3,000
USD per year in your name and without a company; and if the value of your import
does not exceed $200 usd you will not pay taxes, that is called SIMPLIFIED import and
you can collect it yourself with only your ID, the track, payment of taxes if required and
permits if they ask for it. .
The law also says that if your import is $2,000 USD or more, you will need a customs
agent who will process documents and remove merchandise from the warehouse.
Establish your company so that it does not have import value limits and you will
benefit in many ways such as tax credit, greater increases in financial lines, new vision
of more opportunities with companies worldwide and more.