The growth of global trade continues at staggering levels. Today, more than 225 nations are active in trade, resulting in more than nine trillion dollars (USD) in global business every year. In 2004, according to the World Trade Organization's (WTO) 2005 Annual Report, world GDP grew by four percent and world merchandise trade by nine percent. The vitality of this activity has been driven by the growing number of SME (small to medium enterprise) entrants into this highly competitive arena.

For importers, the location of new products, suppliers and supply markets is of paramount importance. Sourcing from the most suitable suppliers requires ability, determination and patience to, for lack of a better phrase, search the world.

Accessing potential supply markets via the internet has become the preferred method of discovery, with significant cost and time economies of scale clearly evident. Business-to-business (B2B) websites lead the way in the location of and, to a degree, the qualification of suppliers. Before getting started, take time to analyze and understand your own business objectives, the global and local landscape within which you want to conduct business and, ultimately decide whether or not you should import.

Why Import?

1. Are the products you want to import already present in your market?

• If so, gauge whether there is enough room for you and your products as well. In order to do this you may have to perform:
  
  
  • An analysis of the size and scope of the market. Is there room for expansion of the product line? Is the category too mature, or is it ripe for development?
    
  • Do you understand who the players in the industry are? Who are the wholesalers and retailers, and what are the distribution schemes?
    
  • A competitive analysis of those companies already selling/importing the product.

If not, ask yourself why the product has not been imported before and then whether you have truly discovered an untapped market for this imported product.

2. Will importing this product result in increased competitiveness for your company? Do you:

• Understand the financial costs and benefits of importing from overseas?
  This includes taking into account shipping and insurance costs, as well as possible warehousing, storage and duty charges.
  
• Understand the possible obstacles or problems you may face importing a specific product? Certain goods have restrictions placed on them due to the content or volume of the product, or due to the particular country from which you want to import. Restrictions vary and may represent anything from quota levels for certain classified goods to fines to submission of special documents or, in some cases, to full prohibition. Consult your customs authority for a comprehensive classification list. In the USA this is called the Harmonized Tariff Schedule (HTS). For more tips and information regarding product entry into the USA, please visit www.customs.ustreas.gov.
  

Import license: Do I need one?

Countries differ on this but, generally speaking, you do not need a license to act as an importer. However some types of goods require a license or permit from the government in order to be imported.

In the US, if you have a business tax ID number with the IRS, this identifying number can be used on customs documents in the "importer number" section. If not, your Social Security Number should be used as your importer number. If you do not want to do this, you can use a third party's importer number. Furthermore, if you do not qualify to use the numbers above you can be assigned an importer number by contacting the port of entry your goods will be delivered to.

An import license is required by a customs broker (somebody who clears goods through customs on behalf of importers who do not wish to handle such details and technicalities themselves.)

Related Articles and Discussions

• Sampling issues from buyer and seller perspectives
• Manufacturer or Agent: who should you deal with? [ 1 2 3 ]
• Finding suitable suppliers through discovery
• Who are the main players in the trade business?
• Should suppliers pay attention to small orders? [ 1 2 3 ]
• Is it really cheaper to buy directly from the manufacturer or through an agent? [ 1 2 ]
• Basic search techniques
• The advantages of advanced search
• Improving Your Search Results