Importing goods can be a complex process, but with the right knowledge and preparation, it can be a highly rewarding venture for your business. This comprehensive guide to importing will demystify the process for you, and provide you with all the essential steps you need to get started importing goods from abroad.
Whether you’re new to importing or looking to refine your strategies, Stellar International is here to help you navigate the world of importing with confidence. Read on to find out how simple it can be.
Step 1: Understand your local import regulations
The first step in our guide to importing is understanding the regulations governing the import of goods into New Zealand. Every country has specific rules and requirements, and New Zealand is no exception. These import regulations are designed to protect consumers, ensure product safety and maintain fair trade practices. These are all worthwhile aims that make it easier for you to do business in the long run, so it’s important you take the regulations seriously.
Before importing goods from overseas, familiarise yourself with the relevant laws and regulations. For example, you’ll need to declare everything you import, along with obtaining the necessary permits and licences for certain goods, understanding tariff classifications and complying with product standards.
You can find details on these regulations through the government page. Stellar International is here to provide you with in-depth insights to help you avoid costly delays and penalties. We also stress the importance of confirming any duty payable upon importation. By working with us, you can ensure all landed costs are identified in advance, avoiding any unwelcome surprises.
Step 2: Identify reliable suppliers
Finding trustworthy suppliers is crucial when importing goods. A reliable supplier ensures good product quality, timely delivery and importantly, transparent communication from start to finish. Start by researching potential suppliers and verifying their credentials, or ask around in your industry and use your existing connections to find out who has a good reputation. You can also look for reviews and testimonials that are publicly available from other businesses, and consider visiting the facilities of a potential business partner in person, if possible. Stellar International can also assist in this space. Over many years we have established strong trusted relationships with our offshore partners. Together we can assist in shipper verification.
When you decide you’ve found a supplier you like, establish clear terms and conditions with them, including payment terms, delivery timetables and quality standards. This doesn’t just protect your investment in the long run, it makes the partnership much more likely to turn into an ongoing relationship that will benefit both of your businesses for many years to come.
As of the start of 2020, the ICC has introduced INCOTERMS, also known Trade Terms. These are standardised terms of agreement that outline the responsibilities of buyers and sellers regarding the transportation of goods. This includes details on export and import clearance, and which party needs to pay for what.
While the new INCOTERMS have no major changes from the older trade terms, there are a few updates to be aware of, such as the replacement of the term DAT (Delivered at Terminal) with DPU (Delivered at Place Unloaded), allowing the destination to be any location, not just a terminal.
Step 3: Manage your documentation
Proper documentation is important for smooth transactions and easy travel. Some key documents you’ll need to include the commercial invoice, pro-forma invoice, air waybill and certificate of origin. Each document serves a specific purpose and ensures that your goods are processed efficiently through customs.
In some cases, the shipper will provide you with these documents—the air waybill for example is typically handled by the sender, not the receiver, but you should still ensure you have copies of all the relevant documents, in case you need to provide them to customs.
Stellar International may also be able to help with the preparation and management of these documents, ensuring no important paperwork is missed. We often assist our partners to help reduce the risk of errors that could lead to delays or additional fees.
Step 4: Ensure compliance with customs requirements
Navigating customs requirements is often one of the most challenging aspects of importing. The New Zealand Ministry for Primary Industries requires detailed information about the goods being imported, especially if they pose a potential biosecurity risk. New Zealand is well known for its biodiversity, so it’s common for organic goods to come under more scrutiny. You can find more details on the MPI website.
While MPI is often involved in biosecurity decisions, Customs is a separate entity, and MPI and Customs each have their own requirements that need to be followed. Working with a customs broker or an experienced logistics partner like Stellar International is a great way to ensure all your customs requirements are met.
Our team can help you understand the paperwork needed, calculate potential duties and taxes and help your goods clear customs without unnecessary complications. If everything is handled correctly it’s very unlikely that customs will delay a shipment, but it’s important to remember that customs have the right to halt any import goods they need to investigate.
Step 5: Consider your costs up front
Importing goods involves a few costs beyond the purchase price of the goods themselves. While most business owners will already know this, it’s worthwhile to sit down and think of all the costs that need to be budgeted for, as a few of them can be easy to forget. These might include shipping fees, insurance, customs duties, taxes or handling charges. Making sure you’ve planned for these costs upfront helps you budget more effectively, and set more realistic pricing for your products. This is especially important as some of these costs may be payable upon importation, and it’s a good idea to confirm all landed costs payable in advance.
We always recommend conducting a thorough cost analysis before making import decisions. Consider factors such as currency exchange rates, tariffs, etc. Our team can also provide detailed cost estimates and help you identify reliable ways to reduce your expenses, such as consolidating shipments with other businesses or optimising your shipping by selecting better shipping methods to suit the goods in question.
Connect with Us
Connect with Stellar International today–our tailored logistics solutions are the perfect way to grow and expand into new markets. Enquire about our customised freight solutions for your logistics needs, our dedicated team is standing by to help.
Step 6: Manage your logistics
Effective logistics management is critical to the success of any import operation. This involves choosing the right mode of transport (air freight, sea freight, or land transport), selecting reliable carriers, and ensuring timely delivery.
Stellar International offers comprehensive shipping and logistics services tailored to your specific needs. Our team can coordinate every aspect of the shipping process from end-to-end, booking cargo space, tracking shipments and managing delivery schedules. With our expertise, you can ensure that your goods reach their destination safely and on time.
Quick tips for new import traders
Getting started in import trading can be daunting, but with the right mindset you’ll be able to navigate the complexities smoothly. The best thing you can do is be rigorous when planning ahead. Here are some essential tips to help you get started:
- Transport method: Choose the best method (sea, road, courier, or airfreight) based on your cost and time needs.
- Loading equipment: Ensure you have access to the necessary equipment, such as forklifts, for loading or unloading your cargo at each end of the journey.
- Container weight verification: Be sure to comply with international marine law by ensuring you know the accurate weight of your containers, or have them weighed at the port—we can help you arrange this.
- Export and dangerous goods: Check relevant export licence and dangerous goods requirements for your destination country.
- Shipment terms: Use INCOTERMS to clarify who pays for what and the payment timeline with your client.
- Currency risks: Plan for potential currency exchange or fluctuation risks and choose secure payment methods.
- Warehousing and packing: Factor in costs for warehousing, packing and loading if you can’t carry out these steps yourself.
- FCL import consideration: If you’re importing a full container and don’t have an ATF site, consider the additional process and costs for accessing your cargo.
- Customs and duty costs: Consider customs clearance, duty and VAT costs at the destination, and prepare your documents early to minimise expenses.
- Shipping insurance: Make sure your goods are covered against loss or damage in transit and verify existing coverage.
- Focus on one market: If you’re just starting out, target one market at a time, prioritising those with demand for your product.
- Research cultural and language differences: Make sure you understand cultural differences to make a good impression in business, and think about whether or not you will need a translator. Some destinations may require you to conduct business in a different language–you’ll need to be able to comply with local laws without risking mistranslation.
- Partnerships: Explore potential partnerships with overseas businesses to make connections in your target market.
Partner with the best
At Stellar International, we’ve been helping businesses manage the complexities of importing goods from abroad for decades. Our team of experts is dedicated to more than just helping businesses navigate the import process—we’re dedicated to the ongoing success of all our partners.
With years of experience in the shipping and logistics industry, Stellar International has the knowledge and expertise to handle all aspects of importing. We’ve spent that time developing a global network of trusted partners and suppliers, so you have access to the best resources and services.
For comprehensive, customisable solutions for all your shipping logistics needs, get in touch with us today.