What is the procedure to start a small import business in California?

Question

I want to import some electronics stuffs from China and sell on eBay. My friend in China can help me buy stuffs and send them to me. My questions are:

What licenses do I need in California to sell on eBay?
What licenses do I need to import stuffs from China?
Does my friend have to open a business in China in order to send the products to here? Or can he just package the products and send to me? Which way is legal and which way costs low?

I checked the sba website, but I am still very confusing about the procedure. I hope someone can give me a to-do/file list to start an import business.

Thanks to all your answers.

Answer 1

If you are planning to start a business importing items into the USA, I suggest you read the following US Bureau of Custom's papers

Importing into the United States: A Practical Guide for Commercial Importers http://www.cbp.gov/linkhandler/cgov/toolbox/publications/trade/iius.ctt/iius.pdf -- this is a 200-page document that tells you the eligible items you can import and the invoices required, among other things
How Cargo Flows Securely into the US http://www.cbp.gov/linkhandler/cgov/import/cargo_summary/cargo_flow_map.ctt/cargo_flow_map.pdf
US Embassy (look at the last page as it has a good link of websites for additional info) http://canada.usembassy.gov/content/can_usa/borderissues_brochure.pdf

Other websites worth checking are:

CMTAC Trade Information Database http://latrade.cmtac.org/trade_info/index.cfm
Dont's of Importing http://www.gattiassociates.com/CM/Articles/Articles1277.asp
Flowchart of the export process http://www.export.gov/exportbasics/index.asp
Going Global http://www.going-global.com/articles/
These trade association websites also have loads of information on how to start an export import business:

Federation of International Trade Association http://fita.org/index.html
Professional Association of Exporters and Importers http://www.paei.org/
You may also want to check out the following books:

- Import/Export: How to Get Started in International Trade
- Exporting, Importing, and Beyond : How to 'Go Global' With Your Small Business
- Selling to the World: Your Fast and Easy Guide to Exporting and Importing
- Start and Run a Profitable Exporting Business
- Start Your Own Import/Export Business


The key here is if you want to import "commercial quantities." If so, I suggest you hire a customs broker to help you navigate the customs procedures. If you are going to get small shipments -- e.g. in a box (not cargos), then you may be able to circumvent the whole importing process and send it through mail. Ask your friend to check out freight forwarders companies in China and whether they have experience shipping to the US.

As for licenses you need in doing business in California, I suggest you check out the following websites

How to Start a Business

California Business Portal http://www.ss.ca.gov/business/resources.htm
California Business Search http://kepler.ss.ca.gov/list.html

Business Registration, Permits and Licenses

California Business Permitting Database http://www.calgold.ca.gov/
California Dept of Consumer Affairs Licensing Information http://www.dca.ca.gov/aboutdca/licnhelp.htm

Taxes

Sellers Permit – CA Board of Equalization http://www.boe.ca.gov/info/reg.htm
California Tax Service Center http://www.taxes.ca.gov/
Franchise Tax Board http://www.ftb.ca.gov/

Answer 2

I will suggest you to plan an advertisement strategy for your business. Today starting a new business is not that big challenge but actual challenge is to advertise that business in a better way. Start a business which has scope in your area. Whenever someone thinks to start new business first he/she should consider area (country, state and target customers) then make a proper strategy for new business.

Answer 3

To avoid the expense and hassle of licensing, taxes, duties, broker fees, permits, customs etc. consider working with or making a deal with an existing California import company.

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