How to go global

An Indian textile business checks with Ask FSB's experts for advice on international expansion.

Abhiram, New York City
I have a handloom and textile business in India and I would like to start an import/export business in New York City this year. Can you suggest a good book on how to get started and be profitable? I want to start with the least burden. I want insight into the problems, and also I'd like to read real-time scenarios.

By Lenora Chu, Fortune Small Business contributor
Dear Abhiram: Importing goods to the United States can be a daunting task unless you do your homework, say the experts.

The first step you should take? Classify your product according to its unique code on the Harmonized Tariff schedule, says George Mylonakis of the Boston-based international trade consulting firm Go Global Logistics.

This classification will dictate what import requirements, duties, free-trade agreements or quota restrictions your product will be subject to.

Next, consult a customs broker who can classify your goods and file the necessary paperwork for import clearance. Without proper classification, your goods can get stuck in customs and rack up daily storage charges, says Mylonakis.

John Heimsath, president of Houston-based customs consulting firm ACM Logistics, recommends checking in with someone who's importing similar goods.

Getting this kind of information firsthand will hint at what kind of shipping and customs clearance charges you might incur, for example.

Then copy what they've done, Heimsath says: "Plagiarism is truly the best form of flattery."

There's a lot to learn about running an import/export business. Mylonakis recommends reading How Small Business Trades Worldwide: Your Guide to Starting or Expanding a Small Business International Trade Company Now by John Wiley Spiers. Heimsath recommends consulting Incoterms for Americans by Frank Reynolds. This booklet demystifies the standard trade definitions used in international trade contracts, and will help you better communicate with the parties in your supply chain.

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