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Paul R. Lloyd's

December 2009

Business Growth Ideas
ZUK-LLOYD ASSOCIATES, INC. – Turning ordinary business information into extraordinary stories


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Checklist for Importing Products for Distribution to the Business-to-Business Marketplace

By Paul R. Lloyd

Product Issues

  • Is country of origin a legal source?

  • Does product meet all US government safety requirements

  • Does product meet a customer want or need?

  • Is there a better US-made solution that will have a competitive edge against your import?

Financial Transaction Issues

  • Does product offer a price-value proposition sufficient to make an extremely attractive offering?

  • Can you import the product from overseas quickly, routinely and economically?

Liability Issues

  • Foreign countries do not use the same liability standards as US market so be careful.

  • In some overseas markets, the warranty begins the day the product leaves the factory so negotiate warranty provisions carefully. Make sure you understand your imported product line and its warranty.

  • Be sure the manufacturer shares your quality standards.

Watch Out for Shipping Costs

  • Learn the economies and many steps involved in picking, consolidating, forwarding, breaking down and customs clearance.

  • Consider taking possession when product leaves the factory so you can control every aspect of shipping. Otherwise you could have huge shipping cost overruns.

What to look for in a foreign partner

  • Look for a strong commitment from the foreign manufacturer backed by training and product support.

  • Look for a manufacturer who can conform to American standards such as non-metric measures.

  • Make sure the foreign manufacturer understands the importance of product continuity in the US market. This means the foreign manufacturer will agree to inform you before making any change to the product.

Paul R. Lloyd has advised 12 large international corporations entering the North American market. He frequently meets with US distribution companies involved in the sale of commercial equipment produced overseas. Call Paul to walk you through this checklist or to provide a free initial consultation: 630-393-6516


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