How Importing Is Done
Today, many businesses have realized the advantages of importing goods. As a matter of fact this can be made simpler if you’re dedicated and determined in making this happen. Despite the fact that the process of importing varies from one country to the other, here we will talk about the general process on how it is done.
Step number 1. Make inquiries – first stage of the process is for you to find a trustworthy and reputable supplier overseas. Overseas suppliers are going to connect you to other suppliers and allow you as well to get different quotations. You may now proceed in the next step once you have agreed on a contract.
Step number 2. Getting the right licenses – many countries require 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 – the importer has now to create a contract and make an order after getting the import license. Actually, there are several important points that must be taken into consideration similar to 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 – as a matter of fact, the terms of payment agreement and method of payment will vary depending on the options offered to that company and also, 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. These methods can cost a bit more yes but they’re the safer option that can be taken.
Step number 6. Documentary bill – as soon as your supplier received the LC, they’ll now arrange for the shipment of goods according to the contract’s specification.
Step number 7. Clearances and customs – when the goods have arrived the port, the buyer will be in charge for taking custody of it 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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