Guidelines For Exporting Used Cars If you are into export business of used cars in the US, for transporting and selling cars in other countries, you need to do certain business planning and conduct market research, like obtaining the necessary licenses, securing finances and letter of credit from banks and make necessary arrangements for transportation to foreign country. The U.S. Customs and Border Protection (CBP) as well as different U.S. agencies have certain regulations and laws related to this which are to be found in Part 192 of 19 CFR.
Steps that will make export used cars USA easier:
Securing finances for exporting the cars is the first step towards this business. You also need finances for various licenses that need to be taken and transportation costs. Generally in these export transactions the exporter has to bear the initial carrying costs which can later be recovered from the importer.
Market research is very important in any business. Here you need to obtain information about dealer used cars in the destination country and find auto agents there. Online directories and other printed directories can be of help in obtaining this information. Joining an auto association can help you in obtaining personal referrals for the same. For finding a mentor who is well experienced in the used car auction and used car industry in the buyerâ€™s country, you may also contact SCORE (Counselors to Americaâ€™s small businesses).
In order to be able to understand the terminologies of trade, it is important that you do a proper study of foreign trade terminologies. There are globally accepted INCOTERMS like FOB and CIF (Cost, Insurance, Freight) and various others which you need to know well before entering into international trade.
A business map must be created after proper market research. After finding out the statistics and reports about the potential US used Cars industry and market you can make a proper business plan. Once the target countries are identified, a research on licensing requirements, applicable duties and taxes and other paperwork can be done.
As the used cars market in USA is not much controlled by the US Federal government as in case of living stock or food items, an export license is generally not needed for exporting used cars from USA Whether a license or federal certificate is required may also be found out from the foreign consulate or the foreign government licensing agency.
A pro forma invoice should be issued to the agent. Before transporting the vehicle a secured credit letter should be obtained from the importer. This will insure the payment of invoice by the bank. All the fulfillment terms are contained in the letter of credit that helps the bank in evidencing before making the invoice payment.
Arrangements for international transportation of vehicle by land, air or ship or both should be made and all the title documents and certificates must be made ready for requirement there from.
Do not forget that â€“
If you do not comply with all the export regulations, you may have to face various penalties. All the international rules, local and federal laws applicable for operating this business must be properly checked. For arranging all transportation matters and other formalities services of U.S. Customs brokers may be used.