The import and export business in Pakistan has a lot of potential this could be the reason why many of the businesses wish to start the import and export business. However, there are many companies try to do this business, but few of them succeed. The main reason behind this is they don’t consider all the aspects for starting an import and export business. Are you also looking to start this business? If yes, then you need to consider the following tips to start import and export business in Pakistan.
Tips to Start Import and Export Business
We have compiled some essential tips for you to start the import and export business. So, give it a read.
- Sufficient capital needed
- Learn about the legal documentation
- Know the shipping terms
- Check customs duties and taxes
- Do the calculations
- Be aware of frauds
- Do some research
- Online presence
- Get professional help
- Be prepared to face the loss
Sufficient Capital Needed
When you are starting a business, especially import and export business you cannot ignore the importance of capital. You need to have enough money to start the business and bare its expenses. Before starting an import export business in Pakistan, you need to have a sufficient amount of capital. Many people think it is good to start with no capital or low amount of capital, but that is not a good approach invest a sufficient amount of capital to do the business properly.
Learn About the Legal Documentations
Learn about the legal import export documentation you require starting the international trading business. Take your time and complete the documentation. You must have these documents to start import export business in Pakistan.
- NTN (National Tax Number)
- STRN (Sales Tax Registration Number)
- Chamber of Commerce Membership
- Current Bank Account Registered on the Company Name
For the export purpose, you also have to register your WeBOC account. WeBOC account is required to declare your products to customs for exporting purpose. Other documents depend on the product you are exporting.
Know the Shipping Terms
Know the shipping terms involved in the import export business. Shipping terms split the responsibilities between the buyer and supplier. There are 11 shipping terms in the international trading business known as Incoterms. If you are importing goods, try to buy your goods on FOB or Ex Works terms. These terms are the best to control your cost.
Check Customs Duties and Taxes
Customs duties and taxes can be a bit complicated, but it is not hard to learn. Know the tariff code for the product and check the duty applied to it. On some items, there is relief on duty you can check on government official websites.
Do the Calculations
It is good to do the calculations before the processing the order. The cost of the import export does not stop at the shipping and products. Make sure to consider all the cost involved in doing this business. These costs involve product cost, duty and taxes, shipping costs, and transit time.
Be Aware of Frauds
There are people in International Trade that is doing fraud in business and making a living on it. These scams include non-payment upon delivery, sample scams, and wrong complaint about the product to avoid payment. You can avoid these scams by knowing the credibility of the company. The person who requests you to send free samples of large quality in the first inquiry is a scammer. You can avoid the wrong complain scam by adding the detailed complaint clause in your contract.
Do Some Research
Do some research about the product and the company you are buying from as an importer? And if you are exporting your product then do the intensive research on the company which is buying your product. Research is really important in business. With proper research, you can be successful in the import export business.
Online presence is very important for international trades. The Internet provides lots of opportunities to learn and enhance your business. It got great potential, and you can get benefit out of it. Many people think having an online presence is not necessary, but it is not bad to consider. You have to consider every aspect to make the business successful.
Get Professional Help
If you want to minimize the risk, then never be afraid to get professional help. Starting an import export business seems risky because of so many paper works. You should consider getting the services of a professional import export consultation firm. They will guide you properly in import and export about the packing of the goods, shipment, legal documentation, and customs clearance.
Be Prepared to Face the Loss
Everyone wants to be successful and afraid to face the loss. The loss is just the part of the business; you can take it as a learning point. It tells you what you need to avoid in future being successful. So, you need to make sure prepared to face the loss in business or not.
I hope this article will help you in making your import and export business strategies. Everything is important in international trade even if it is small enough to ignore. I wish you have great success in starting import and export business.