Before committing.
WHAT TO ESTABLISH FIRST
Whether the goods may be imported at all.
WHY FIRST
Prohibited or restricted items arriving produce expensive problems.
WHAT TO CHECK
Any prohibition list Whether a permit or certification is required Which agency regulates the product
WHAT AGENCIES COMMONLY APPLY
Customs The standards organisation, for regulated goods The food and drug agency, for applicable products Others by product category
WHAT TO CALCULATE
The landed cost.
WHAT LANDED COST INCLUDES
Purchase price Freight Insurance Duties and levies Clearing agent fees Port and terminal charges Inland transport Financing cost Losses and damage allowance
WHY IT MATTERS
The purchase price is frequently a fraction of the total.
WHAT PEOPLE UNDERESTIMATE
Duties Demurrage and storage Exchange rate movement between order and payment
WHY EXCHANGE MOVEMENT MATTERS HERE PARTICULARLY
It can eliminate the margin entirely between ordering and clearing.
WHAT TO DO ABOUT IT
Price with an allowance, and revise when rates move materially.
WHAT TO COMPARE
Landed cost against local purchase.
WHAT TO ALSO WEIGH
Lead time Minimum order quantities Cash tied up Risk of the shipment failing
WHAT TO START WITH
A small first order.
