Importing goods from countries outside the European Union (transit within the EU is not considered importation but rather intra-community acquisition) can pose significant risks and complications for those who are not experts, especially if they are not advised by a company specialized in this type of management, such as Bull Importer.
From our blog, we want to help people interested in importing with this small guide in which we explain the main points of the importation process that should be taken into account when carrying out these types of operations.
1. Sectoral fairs
Trade fairs are a good way to make initial contact with foreign trade. Every year, numerous events of this type are held in Asia, organized by sectors. In these events, you can meet exhibitors firsthand, although it is advisable to research online beforehand to make a selection of the most interesting ones. The enormous dimensions of Asian fairs make it unfeasible to contact each exhibitor individually.
A trip of this nature requires planning. It is advisable to go prepared with cards to take notes of the data of each supplier. And it doesn’t hurt to have someone who is fluent in the language and can act as a guide. In China, for example, English is not commonly used in business.
2. Choosing the supplier
One of the most important aspects in importing goods is choosing a reliable supplier, capable of delivering orders on time and properly certified and approved. This process is not without risks, so it should not be chosen blindly. At Bull Importer, we specialize in locating solvent and reliable suppliers.
3. Pre-import negotiation of goods
Once one or more reliable suppliers have been chosen, the negotiation process begins. At this point, previous experience and the ability of each party to get the best prices, request samples, and close the deal are very influential. It should be noted that negotiation in some countries, such as China, is an art that takes time. Therefore, calendars should not be neglected to avoid stock ruptures or interruptions in the production chain.
4. Choosing the appropriate Incoterm
The choice of Incoterm affects costs and the control that the buyer has in the process of importing goods. Since there are several types, it is advisable to know the characteristics of each Incoterm before opting for one or the other. Generally, the FOB Incoterm is one of the most recommended, as the importer has greater control over the shipment and unforeseen costs are avoided.
5. Considering the possibility of financing
The decision to request financing from the bank is entirely personal. Each importer, depending on the total cost of importing the goods, their solvency level, and their relationship with the bank, should consider the convenience of deferring payments.
It is worth remembering that most suppliers require a part of the payment in advance. However, to reduce risks, the letter of credit can be used, a document through which the buyer’s and seller’s banks act as custodians of the money.
6. Reviewing the documentation
Checking that the documentation is complete and correctly filled out is essential to avoid delays, extra costs, and fines. At the very least, for the importation of goods, a commercial invoice, packing list, bill of lading (BL) or waybill, and certificate of origin must be provided. In certain cases, authorities may require other specific documents and certificates.
7. Choosing a freight forwarder
The choice of a freight forwarder should be made by analyzing several factors. The most important ones are the size of the freight forwarder, the countries where it has a presence, specialization, price, and the services it offers.
The size of the freight forwarder can influence whether the treatment is more or less personalized, the quality of service, and specialization in certain types of goods. However, when importing from certain countries, such as China, it is advisable that they have offices there to expedite any problems that may arise.
If you need advice for your imports, do not hesitate to contact Bull Importer. Our services adapt to each need.
