7 Steps You Will Go Through When Importing
There are countless of businesses that have realized how beneficial it is to import goods. As a matter of fact this can be made simpler if you’re dedicated and determined in making this happen. Yes it is true that different countries have different policies for importing but in this article, we will discuss the general process on how this thing is done.
Step number 1. Make inquiries – finding a trustworthy and reputable supplier overseas is the first leg of the process. What these overseas suppliers will do is connect you to other suppliers and at the same time, let you get different quotes too. You may now proceed in the next step once you have agreed on a contract.
Step number 2. Getting the right licenses – most countries are requiring importing license before allowing goods to enter their territory. To be able to get an import license, the prospective importer has to file for an application and be approved by the licensing authority.
Step number 3. Finalizing the importing process – after getting the import license, the importer now has to create a contract and make an order. There are actually a number of important points that should be considered at this stage like ensuring your contract is clear and covering all areas of engagement, estimated manufacturing time and the expected date of delivery, company’s standard and the shipper’s terms.
Step number 4. Letter of credit – suppliers can’t just risk of not getting paid and for this reason, they often issue letter of credit or often referred as L/C or L.C to the buyer and asking them to fill it out and send it back to the supplier before shipping the merchandise.
Step number 5. Making the payment – the terms of payment agreement and method of payment is going to vary depending on available options to that company and your familiarity with the supplier. Making payments through PayPal or via credit card is often the most preferred method for importers that are dealing with suppliers for the very first time. Yes it is true that these methods may be higher but they are the safer option to be taken.
Step number 6. Documentary bill – once the supplier has received the LC, they will now arrange for shipment of goods according to the contract’s specification.
Step number 7. Clearances and customs – the buyer is now in charge for taking custody of the goods by the time it arrived at the port and bring them to the desired business or storage location. On the other hand, just before the buyer can take custody of the goods, they should get an endorsement letter first, only then they can take it to their desired business or storage location.
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