Export Advice

tacofries

Hi everyone,

Could anyone here recommend who to go to to learn properly about import duties, US sales tax, VAT, freight etc.

Would an accountant be able to answer the above or should I go to someone more specialised?

Thanks,
Sean

jimmii

I would imagine most accounts should be pretty comfortable dealing with that sort of thing you would hope so anyway. No harm looking for someone with a bit more import/export experience though.

RUDOLF289

tacofries wrote: »

Hi everyone,

Could anyone here recommend who to go to to learn properly about import duties, US sales tax, VAT, freight etc.

Would an accountant be able to answer the above or should I go to someone more specialised?

Thanks,
Sean

Hello Sean,

I will be able to assist.

Can offer advice on the following ;

1. Import duties and Taxes in the USA
Need the following information ;
a. commodity
b. HS / Customs tariff nr (may be able to classify the product if you can
provide brochure material / website links)
c. Value
2. VAT - all exports are zero rated for VAT
3. Freight
In addition to 1.a need the following information ;
a. Point of collection
b. Point of delivery in the USA (please provide zip code)
c. Quantity e.g.
- number of pieces
- dimensions per piece
- weight per piece
d. Mode of transport
- Airfreight
- Oceanfreight

Feel free to post again or PM me.

Cheers,
Rudolf289

pedroeibar1

tacofries wrote: »

Hi everyone,

Could anyone here recommend who to go to to learn properly about import duties, US sales tax, VAT, freight etc.

Would an accountant be able to answer the above or should I go to someone more specialised?

Thanks,
Sean

There are several courses available, short & long. One is the 'Diploma in Foreign Trade' that covers all you need and more. Contact the Irish Exporters Association and ask them for a list.
P

tacofries

Rudolph, you said a zero rate of Vat applies to all exports. That is what I learnt myself previously however someone offering me advice then said that Vat did apply. It was free advice like that which made me doubt myself hence the purpose of this thread and why I am looking to hear from the experts. Looks like I've asked in the right place!

Going to talk to the accountant Jimmii and see if he is fit for the job.

I looked at a few of those diplomas Pedro but the shortest one that I seen was 3 months. I literally have about 4 weeks to get up to scratch on all of the challenges mentioned in my original post plus to come up with a viable fulfillment strategy! Also, I have business meetings/commitments that I have to go to at least twice a week so it would be hard to find the time to attend lectures on top of that.

Rudolph, I am going to spend a bit of time writing you a pm so that I am asking only somewhat intelligent questions and give you a proper oversight/brief of the challenges. Really don't want to be wasting your time since you are so decent with all of the information that you give out! I will have it to you by tomorrow but just want to make sure that it's all up to scratch first.

mrawkward

This is about the last thing a startup should be wasting time on, customer and product focus are number 1 to 100. Just hand it to a proper expert, Rudi!

tacofries

mrawkward wrote: »

This is about the last thing a startup should be wasting time on, customer and product focus are number 1 to 100. Just hand it to a proper expert, Rudi!

Product has being done to death at this stage and the customer has being well focused on too.

If I don't know how to cost things properly then the customer will never get the chance to buy the product in the first place! The business side of things needs looking after too as at the end of the day it's all about money.. !

mrawkward

Rudi is Rudol289... wake up lad!

tacofries

mrawkward wrote: »

Rudi is Rudol289... wake up lad!

haha, it's been a long few days!

pedroeibar1

I look forward to Rudi posting a thank-you for the decent bottle he doubtlessly will receive for giving you all that advice.;)

@12%

Heres a little calculation for you I took from my files (dont shoot me if there is an error dont have the time to recheck it), which I believe is what your looking for - you want the knowledge of how to make the calculation on selling your product and the method of calculating all the different costs in there. The actual rates Rudolf can give you but this is essentially your calculation structure:

Cost of Production: $2
Profit Margin: $2.32
FOB Price to Distributor: $4.32

Sea Carriage: $0.20
Import Duty @12% $0.52
Clearance and Local Delivery $0.26

Total Cost to Distributor: $5.30
Distributor Margin of 30%: $6.89

Selling price to Retail outlet with 50% margin: $13.78

Plus 20% VAT before selling to the public: $16.54

Retail price $16.54

tacofries

Deleted User wrote: »

Heres a little calculation for you I took from my files (dont shoot me if there is an error dont have the time to recheck it), which I believe is what your looking for - you want the knowledge of how to make the calculation on selling your product and the method of calculating all the different costs in there. The actual rates Rudolf can give you but this is essentially your calculation structure:

Cost of Production: $2
Profit Margin: $2.32
FOB Price to Distributor: $4.43

Sea Carriage: $0.20
Import Duty @12% $0.52
Clearance and Local Delivery $0.26

Total Cost to Distributor: $5.30
Distributor Margin of 30%: $6.89

Selling price to Retail outlet with 50% margin: $13.78

Plus 20% VAT before selling to the public: $16.54

Retail price $16.54

Yep, something like that is what I was looking for El Rifle. Basically want to make sure that when I am exporting to the US from Ireland, I am including every cost. If you replace the Vat with Sales tax in your calculations, then is that everything covered?

Reason I want to sit down with an accountant or the likes, is to go over a few possible scenarios that are similar to the above as there are more markets then just the US that we want to explore. I also need to understand how manufacturing in different countries will affect the costs/taxes/legalities involved.

Thanks for that

tacofries

tacofries wrote: »

Deleted User wrote: »

Heres a little calculation for you I took from my files (dont shoot me if there is an error dont have the time to recheck it), which I believe is what your looking for - you want the knowledge of how to make the calculation on selling your product and the method of calculating all the different costs in there. The actual rates Rudolf can give you but this is essentially your calculation structure:

Cost of Production: $2
Profit Margin: $2.32
FOB Price to Distributor: $4.43

Sea Carriage: $0.20
Import Duty @12% $0.52
Clearance and Local Delivery $0.26

Total Cost to Distributor: $5.30
Distributor Margin of 30%: $6.89

Selling price to Retail outlet with 50% margin: $13.78

Plus 20% VAT before selling to the public: $16.54

Retail price $16.54

Yep, something like that is what I was looking for El Rifle. Basically want to make sure that when I am exporting to the US from Ireland, I am including every cost. If you replace the Vat with Sales tax in your calculations, then is that everything covered?

Reason I want to sit down with an accountant or the likes, is to go over a few possible scenarios that are similar to the above as there are more markets then just the US that we want to explore. I also need to understand how manufacturing in different countries will affect the costs/taxes/legalities involved.

Thanks for that

Its more or less the same, but pitching europeans they can get the VAT back so the pitch is generally ex VAT, when pitching the US companies best show you calculation including Sales Tax. Im not sure if it varies per State your selling to so you might want to check that out.
What kind of product are you manufacturing? Because if someone in another country is manufacturing your product outside the country and your not there to monitor thats going to bring a large set of problems that need to be managed. By adding more manufacturers to that system in different countries your going to basically multiply that problem. I believe you need a working template of manufacturing and logistics from one place before you try and do it in multiple places. And you need someone in charge of manufacturing. I would advise against trying to behave like a multinational from the start unless you dont want to keep your hair!
What you want to talk to an accountant about is not in their realm of knowledge, you need to talk to someone in distribution who knows that business - its a complex business in itself. Even if you found an accountant who told you they understood that you'd be taking a big risk trusting their knowledge - its not their game at all. Shopping
Explain what it is your want to do, from manufacturing to retail, kind of product etc, and I'll advise you as best I can on the various processes.

For some reason the word "Shopping" randomly appeared

And this wonderful buggy editing system on boards doesn't work anymore, so I can't delete it...

tacofries

Thanks for the help El Rifle,! Pm sent ,..

quinney123

tacofries wrote:

Yep, something like that is what I was looking for El Rifle. Basically want to make sure that when I am exporting to the US from Ireland, I am including every cost. If you replace the Vat with Sales tax in your calculations, then is that everything covered?

tacofries wrote:

Reason I want to sit down with an accountant or the likes, is to go over a few possible scenarios that are similar to the above as there are more markets then just the US that we want to explore. I also need to understand how manufacturing in different countries will affect the costs/taxes/legalities involved.

tacofries wrote:

Thanks for that

Hi Tacofries

Realistically customs are the people that will give you all the information. I work for a large multinational freight forwarder with experience in exports/imports and customs procedures if you want to chat PM me and I will chat in more detail about your requirements

Thanks
Adam