Steps of Importing – How to Succeed in the Import Process

Do you think importing is only a privilege for large corporations? In reality, small and medium-sized businesses can also take advantage of it and gain significant benefits. Carrying out an import process requires some time and patience, but when done correctly, it can be an effective growth engine that lowers procurement costs and provides a competitive edge in the market.

Importing offers growth opportunities for small and medium-sized enterprises as well.

Who is Importing Suitable for and Why is it Worth Doing?

Importing is particularly suitable for businesses looking to expand their product range, enhance competitiveness, and optimize procurement costs. If you want to introduce unique products to the market, increase your profit margins, or strengthen your brand, importing could be the perfect solution.

Importing is ideal for:

• Retailers and merchants looking for distinctive or cost-effective products to sell, or those who want to build their own brand, develop products, and establish their market presence with their own vision.

• Entrepreneurs aiming to lower procurement costs, improve profitability, and succeed in competitive bidding by offering more affordable products than competitors who source from domestic markets.

• Industrial operators seeking more affordable or higher-quality raw materials and components from foreign markets.

By sourcing products directly from manufacturers and bypassing local importers or distributors, you can achieve significant cost savings and gain greater flexibility in pricing. Additionally, you maintain full control over your product selection and customization, allowing you to stand out from competitors by offering unique products at highly competitive prices.

1. Analyzing Your Needs

Before starting the import process, it is crucial to analyze which products you need. Importing all types of products is not always practical, so it's wise to compare your current purchasing prices with manufacturers' sales prices. At this stage, it's also essential to consider import-related taxation and customs tariffs, which must be factored into the total cost of the product. Additionally, freight and logistics fees should be taken into account, as their final costs often become clear only once you know exactly what and how much you are importing.

It is also essential to research the regulations and standards related to the products, as they can impact their acceptability in the target market. Most products sold in Europe require at least a CE certification, but many industries also demand additional certifications to ensure product safety and compliance with health regulations. Identifying these requirements in the early stages of the process is highly recommended.

2. Finding the Right Supplier

Choosing a reliable supplier is one of the most crucial steps in the import process. Suppliers can be found through platforms like Alibaba or 1688, international trade fairs, or via local sourcing agencies. Once you have identified a suitable supplier, it is highly recommended to conduct a factory visit and inspect product samples to verify the manufacturer’s capacity and quality control.

Most manufacturing facilities are located in Asia, particularly in China, as well as in Southeast Asian countries such as Vietnam, Bangladesh, and Indonesia. In many Asian markets, the reliability of business relationships improves significantly once the parties have met in person and built mutual trust. Since visiting production facilities can be challenging and expensive, it may be beneficial to use a trusted intermediary, such as an independent sourcing agent or auditor, to assist in the verification process.

It is especially important to gather as much information as possible about the manufacturer, its reliability, and its operations before entering into a business partnership. At a minimum, you should check the supplier’s background, business licenses, export permits, references, production quality, and the validity of required certifications. Verifying the financial and legal background of foreign suppliers can be challenging, as the availability of such information varies by country and is often only accessible in the local language. In such cases, working with a local agent or intermediary is recommended.

A large portion of the world's manufacturing facilities are still located in Asia.

3. Price Negotiations and Contract Terms

Once a suitable supplier has been found, the next step is to negotiate the final purchase prices and payment terms. It is important to clearly agree on the payment method. Common payment terms include advance payment, letter of credit, remittance, or online bank transfer. Most suppliers require a certain percentage as a deposit before starting production (for example, 30% of the total price), after which the remaining 70% is paid either when the product is ready for pickup at the factory or shipped to the port. One of the safest payment terms is remittance, which is a written commitment from the buyer's bank to pay the seller once the agreed conditions are met.

Most suppliers try to avoid formal contracts and typically enter into one only when order volumes are large and continuous. For smaller import batches, an email conversation and invoice are generally sufficient to ensure all legal terms between the parties. You can also use a local representative to agree on all terms, handle practical arrangements, and safeguard your interests.

Agreeing on warranty terms is extremely important. It is essential to define in advance how to proceed if defects appear in the products, they do not meet the expected quality, or they need to be replaced or returned. Most suppliers agree to provide replacement products free of charge but do not cover shipping costs. It is reasonable to use a pre-stocked warranty model, where the importer reserves part of their order as stock for potential replacements, allowing defective products to be exchanged immediately without delays. Replacement products can also be included in the next delivery batch, eliminating additional logistics costs for individual shipments.

As an importer, you may be held legally responsible if a product you import malfunctions and causes damage, such as a fire, or poses health risks to users or the environment. While the manufacturer is legally responsible for the safety of its products, ensuring accountability outside the EU can be difficult, time-consuming, and sometimes even impossible. Since EU regulations may place liability on the importer, it is crucial to be prepared for potential risks. Therefore, it is particularly important to ensure that imported products have appropriate product liability insurance that covers any possible compensation claims.

4. Organizing Logistics

Organizing logistics is one of the most critical aspects of a successful import process. The first decision in logistics arrangements is determining who is responsible for transportation, how the products will be shipped, and under what delivery terms. The most common options include sea freight, air freight, and road or rail transport. The choice depends on the nature of the product, quantity, origin and destination markets, and timeline.

Air freight is the fastest option, but it is expensive and environmentally questionable. It is best suited for small shipments, such as samples and prototypes. Sea and rail transport are generally more cost-effective alternatives, but their delivery times can be significantly longer—ranging from 2 to 4 months. Sea freight is widely considered the best option and remains one of the most popular shipping methods.

When selecting a logistics partner, factors such as cost, delivery speed, and reliability should be considered. Understanding Incoterms is essential, as they clearly define responsibilities and costs in the supply chain. Most suppliers are willing to ship under at least EXW (Ex Works), FOB (Free on Board), or CIF (Cost, Insurance, and Freight) terms, so it is important to choose the option that best suits your business needs. Additionally, domestic freight handling should be factored into overall transportation cost calculations.

Smooth logistics is a crucial part of an efficient import chain.

5. Customs Clearance

Efficient customs clearance ensures that products reach the market quickly and smoothly. Before importing, it is essential to determine import duties, taxes, and other regulatory requirements. Each product must be assigned the correct customs tariff code (HS code), as this affects customs duties and can lead to additional costs if misclassified.

The country of origin also plays a significant role in customs duties, and free trade agreements (FTAs) may offer advantages in certain cases. For example, the EU and China do not have a free trade agreement, meaning imports from China are subject to standard tariffs. However, the EU has a free trade agreement with South Korea, which may allow duty-free imports under specific conditions.

Not all products can be imported freely—some require special permits or inspections. Food products, pharmaceuticals, chemicals, electrical and radio equipment, as well as certain wood and animal-based products may require government approvals before importation. Additionally, the correct documentation, such as a commercial invoice, certificate of origin, and compliance documents, is essential for smooth customs clearance. If necessary, it is advisable to use a customs specialist or freight forwarder to handle the process on your behalf.

The EU has strict regulations regarding CE marking, chemical legislation, and product safety requirements. If customs clearance is delayed or products are selected for inspection, it is crucial to act quickly to avoid disruptions in the supply chain.

6. Receiving the Shipment

When the products arrive at their destination, they must be carefully inspected. To address any potential issues, it is recommended to agree on a claims process with the supplier in advance. After inspection, the products are ready for use. Be sure to retain all import-related documents for any future reference or dispute resolution.

Summary

Importing can be a great opportunity for a business, but it requires careful planning and process management. The key to success lies in finding the right partners, ensuring smooth logistics, and complying with regulations. When these factors are handled properly, importing can provide significant competitive advantages and growth opportunities for your business.

If you need assistance with importing or would like more information about the process, feel free to contact us – we’re happy to help!

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