These days, as global import opportunities are increasing, more and more first-time importers are testing the market. But, although importers can reap lucrative rewards, they can fall into some traps if they are not careful. Clearit USA customs consulting has been helping first-time importers in smoothing the way for importing. If you are importing products for the first time, the tips below can guide you through the process:
Choose the Right Supplier
Don’t choose just any product supplier. You must compare as many as you can until you can narrow your choices down and make the right choice. You must understand whether you are dealing with the actual manufacturer or a trading company. Telling the difference is not always easy. But, once you have top choices, consider visiting their factory. This will help you determine if the supplier is the actual exporter or using a trading company or export agent.
Understand the Components of the Quotes you Get
Make sure you get quotes that are divided into individual component costs, labour costs, and other charges. This way, you can easily compare them and control future price increases.
Insist On the Appropriate Incoterm
An Incoterm determines the tasks, risks, and costs for both the importer and exporter in terms of transporting and delivering goods. It determines when you have to take responsibility of the goods and what insurance is required. Take time getting familiar with terms like Free on Board (FOB), Ex Works (EXW), and Cost Insurance Freight (CIF). After knowing when you are responsible for the goods, you must have insurance for the cargo. Keep in mind that your freight forwarder may not cover such insurance.
Understand the Freight and Logistics Process
Mismanaged logistics are the most common reason deadlines are missed. Make sure to pick a reputable freight and logistics provider. They should be able to show experience in managing cargo from the area in which your supplier is located. Understand every stage of the process which includes inland transit, container storage, shipping, and goods clearance after they landed. Understanding the full cost of landing the goods including the government duties in your jurisdiction is also necessary.
Have the Goods Inspected Before Shipment
After the goods are shipped, organising for them to be returned becomes very difficult. Also, it can be as difficult to get a refund or credit. That is why you want to complete an inspection of goods on every shipment. Such a process is especially essential if you are dealing with a new supplier.