Sourcing can seem intimidating or a little complicated to new entrepreneurs but it can really pay off big for your business. The best way to jump in is to get familiar with the lingo. Today’s Sourcing Tip of the Day comes from The Official Alibaba.com Success Guide and covers import agents, inspection companies, freight forwarders and customs brokers.

As you go about building your global business, you are likely to come across a variety of job titles that, while important to understand, can also be confusing. Do you want to work with an import agent, an inspection company, a freight forwarder, or a customs broker? Or is the answer to that question a simple “yes,” meaning that you need to work with all of them? To help you decide where you fit into this confusing mix, let’s get a quick definition for each of these potential partners.
Import Agents
These professionals can help you from the very start of your endeavor. You can identify import agents all over the world who make it their business to help connect SMEs with reliable sources of products. Not only can an import agent help you identify and qualify a good trading partner, but she can also help you to negotiate pricing, arrange transportation, and complete inspections. Of course, you will pay for all of the services you require from the agent, but if you contract with someone who lives in the same geographic area as your supplier you may find that you can better work toward a more advantageous relationship, because you will be represented by someone who understands both the cultural and economic realities of the part of the world you are interested in working with. You can even contract with an import agent to attend trade shows on your behalf to identify and locate new suppliers.
Inspection Companies
You can contract with a licensed inspection company to arrive at your supplier’s location to oversee the production cycle and inspect the packaging of your order as it is packed and prepared for shipment. Chapter 6 of the book explores this option more fully.
Freight Forwarders
These professionals handle all aspects of moving your goods from their point of origin to your location, or any part of that process. Many freight forwarders have offices throughout the world that can operate on your behalf as local entities. Essentially, freight forwarders are logistical experts. They know how to negotiate the entire process from inspection of your goods at their point of origin to delivery of your materials to your location. This process includes preparation of all documentation necessary to get your orders loaded and on their way as well as those necessary to make certain your shipment is ready for U.S. customs. These documents can include but are not limited to a bill of lading, specifying exactly what is in your shipment, who owns the goods, and who is responsible for clearing the goods through your port of entry.
Freight forwarders are also well versed in all regulatory issues to ensure that the items you want to purchase can be imported to the United States. The right freight forwarder will have customs brokers on staff to clear your items through your port of entry and handle all aspects of duties, tariffs, and taxes. They may even be willing to pay these items on your behalf and bill you for them upon delivery of your goods. At the least, they may give you an educated estimate of these costs and adjust the final payments with you after the fact. Finally, a good freight forwarder can represent your interests with your supplier should your goods arrive damaged or incomplete.
Custom Brokers
Customs brokers are licensed through the U.S. Customs and Border Protection to operate on your behalf in all aspects of clearing your goods through customs, paying all fees, and getting the goods released for your delivery. It is very easy to locate a customs broker. Simply go to the CBP web site at http://www.cbp.gov/, and click on the link at the bottom of the page for Ports. You’ll see “Locate a Port of Entry—Air, Land, or Sea.” Scroll down the page until you find the state where you want your goods to arrive.
We’ll use the state of New Jersey as our example. Now we have the choice of selecting one of three ports: Morristown Airport, New York/Newark (Service Port), or Perth Amboy. The next screen gives us plenty of details about the port itself, including contact information for reaching CBP personnel. More importantly, you will find a link entitled “View List” next to the entry “Brokers.” Click that link and you will find qualified customs brokers who can help you clear your goods should you decide to bring them in through this port. The list is regularly updated so companies appearing on this list should still be in business. If you have any concerns, you can call the CBP to verify a broker at 202-927-0380. Of course, once you identify a possible customs broker, you are still required to do your own due diligence to ensure that you are satisfied with the services offered and the fees charged.