Importing - getting started

The first step is to find a reliable trading partner - at the right price - but there is a lot more to think about before you begin importing goods from overseas. Here are some of the key points you need to consider.

Visiting trade shows and international business fairs can be a great way to meet potential new suppliers and assess their suitability.

Research is an important way of identifying and managing your risks. Find out about a country and its politics, economy, culture and business environment so you are not caught out by unexpected issues.

Once you've chosen a supplier, invest time and effort in establishing strong relationships with their key staff and management. Visiting their premises is a good way to build rapport.

Is your supplier able to supply your goods consistently, on time and to the required quality? Do they have an established track record?

While price is important, it isn't everything. Your reputation could suffer if you buy from a supplier who operates unethically.

It's important to make sure the contract between the buyer and supplier sets out who is responsible for transport and insurance at every stage. Use internationally accepted trading terms (these are known as Incoterms®) to set out exactly what delivery terms you have agreed and reduce the risk of confusion.

Be aware of import and any other government regulations and ensure you will have the required documentation, packaging etc. Failure to do so could delay the customs clearing process and / or may impact the sale of the goods.

Consider:

• Transportation (insurance) costs.
• Port/warehouse costs.
• Import duties if any.
• Inspection charges.
• Agent's and bank fees.
• Funding costs.

If your supplier wants payment or a percentage of payment before shipment of the goods, consider an Import Documentary Credit that can help to reduce your payment risk. As ANZ credit criteria apply, talk to us before you agree the payment terms.

If you are paying your supplier in a foreign currency, you may be exposed to foreign exchange risk. ANZ can assist in managing this exposure by using a Forward Exchange Contract.

If required, how will you finance the goods from receipt (storage) until sale? We may be able to assist with cash flow solutions, subject to ANZ credit criteria.

For more information about how ANZ can help you get started and grow your importing business, contact our Trade Finance Desk.

Call 0800 269 873, 9am to 5pm, Monday to Friday.