How to Prepare to Import?
The term “import procedure” refers to the entire process of buying items from any other country. In terms of import laws and rules, the stages involved in import trade vary from one country to the next. However, every government’s policies are designed to prevent harm to itself. Therefore, the first step before beginning the import should be for business owners who decide to import to thoroughly study the procedures and the laws of the country where they are acquiring. The government regulates import trade in the majority of nations.
Import trade is authorized by the government to protect foreign exchange and domestic industries. Importing goods is subject to a defined and controlled process that protects both the exporter and the importer.
How Do Import Processes Work?
Although the import process is very comprehensive, it can be explained with specific titles. As we mentioned, we can summarize the general approach in nine steps, although it differs in each country.
1. Trade Enquiry
The importer makes a formal written request for information from the exporters, including details on the price, the quality, the quantity, and numerous export terms and conditions. The exporter prepares and transmits every detail and price quote they have regarding the product and the importation procedure in response to the importer’s trade inquiry.
2. Getting an Import License and Quota
Another stage, seen as the import stage, is to prepare the license and learn the quota. So, what are import licenses and import quotas?
Import License
A national government may authorize the importation of particular items into its borders by issuing an import license. When import permits are used to discriminate against the products of another nation to shield domestic businesses from international competition, they are seen as non-tariff trade barriers. The volume of imports permitted by each license is specified, and the overall volume permitted cannot be greater than the quota.
Import Quota
A sort of trade restriction known as an import quota places a physical cap on the volume of an item that may be brought into a nation over a specific time frame. Like other trade restrictions, quotas are frequently employed to the advantage of the economy’s producers of a particular good.
3. Getting Foreign Currency
Another step is for the importer to make a foreign cash installment request, which includes the conversion of foreign banknotes to the currency of the exporter. Some countries may also accept direct advance import transfers instead of buying foreign currency. This stage is actually quite extensive. The money is kept in the bank until the transaction is completed because the security of both parties is the main point.
4. Placing the Order
Another step is the importer’s request for goods from the exporter. To place an order, an agreement is reached on issues such as price agreement and product quantity.
5. Sending a Letter of Credit
This step is related to buying foreign currency. It is a frequent payment technique in international commercial transactions where the issuing bank agrees to pay the exporter as long as the exporter abides by the letter of credit’s terms and conditions. The exporter’s goods are safeguarded in this way.
6. Getting the Required Documents
If you have finished all the previous procedures, it is now time for the crucial paperwork. You must have certain paperwork to import into any country, in addition to the documents required by your own. The “Bill of Entry” is the most crucial document utilized in the import process. This document is prepared when the importer learns that the goods have arrived at the port. This document includes information about the quantity, price, and weight of the goods to calculate the customs tax. Upon the goods’ arrival at the port, the importer makes arrangements for the payment of the advance price. This protects the importer from high penalties.
7. Customs Formalities and Clearing of Goods
In general, in all ports of a country connected to international destinations, customs offices are responsible for controlling goods entering or leaving the country to perform these functions. A country’s customs office has the power to seize or, if necessary, dispose of goods. Therefore, the imported goods must be registered and checked. Providing the necessary customs documents allows you to receive your imported goods comfortably. Globally, the customs clearance procedure is possible. However, depending on the nature of the commodities, some may have unique criteria. For products that are deemed objectionable or require special documents for import and export, you must conduct thorough research.
8. Paying the Amount Due
And the payment stage is now ready to begin. Cash, letter of credit, documented collection or policy, open account, and consignment are the five primary payment methods in international trade, in order of security. The method that is safest for the exporter is, of course, also the least safe for the importer. Mutual benefit determines how much is paid. You are required to make payments for your purchases using the payment method you have chosen.
9. Achieving Deal Closure
We’ve reached the end of the process, or the last stage, of the agreement. The importer typically pays the pier dues when the goods are received and all controls are finished, with the completion of all agreements and receiving the products. Your products are currently in your possession.
Who Can I Trust in Import Processes and What Should I Do?
In import processes, importers generally prefer experienced people based on their experience. Supply companies are among the most logical choices preferred by importers lately. However, there are two questions that those who will have a new experience in importing think most:
- Who can I trust in import processes?
- What should I do?
The answer to both of these questions is simple. You should deal with brands that have experience and are sure of their reliability. And you should get information from people who are experts in all processes.
If you need quality and reliable goods, you can benefit from the experience of Turkish Goods. With the guarantee of quality and reliable price, your import is made most easily. You can also take a look at our other articles for more detailed information about our export processes and the delivery of products.
