Import and export business can be relative, in import you sell products bought from other countries and in export, you sell your product to other countries. Import and export improve the foreign trade of the country. Many people start import export business but forget to consider all the aspect of it and fail. I this article, I will tell few things you need to consider to start import export business in Pakistan.
Main Requirements to Start Import Export Business in Pakistan
In order to start import export business in Pakistan, you need to have 4 main things.
- National Tax Number (NTN).
- Membership of Chamber of Commerce.
- Sales Tax Registration Number.
- Current Bank Account.
Also Read: Major Imports and Exports of Pakistan
8 Steps to Consider to Start Import Export Business in Pakistan
After having all the requirements you need to consider the following steps to start import export business in Pakistan. These steps are also related to the basic business plan.
- How much to invest
- Selection of Right Product
- Know your Potential Market
- Search Buyers
- Quality Control
- Custom Clearance
How much to invest
Investment is very important; make sure how much you want to invest in the product. Start with the low investment and observe the market behavior. If you get a good response from the market, then invest more. Don’t go big for the first time, invest low and see the market response first.
Selection of Right Product
Before selecting the right product to analyze your market to see the potential find product that fit’s. Make sure the product should be unique or of good quality. Let say, if you want to import product right now, your product choice should be futuristic like home automation or technology based products. Select the right product for export to other countries by analyzing the foreign market and see what they need or what are the trends then export your product to make an impact.
Know your Potential Market
Before importing or exporting a product know your potential market, what they want or what they need. You should do some research on your potential market; know the competition, market size, product quality requirements, demand, and payment conditions. In order to do that, you can get help from your friends and relatives living abroad, or you can consult import export consultation services.
When you know your potential market, and finalized your product for import or export you have to search for buyers. You can find buyers by visiting exhibitions, participating in trade the fares, buyer sellers meetups, B2B portals, and you can also search the internet. If you visit or connect with the Chamber of Commerce and TDAP (Trade Development Authority of Pakistan), you will know the upcoming events about the trade because they have the information on trade fairs and exhibitions.
When you start getting inquiries, you have to send samples to the customers first for export. Make sure your product meets international standards. If you are importing a product, ask for the sample first for the test run and check the quality of the product.
Quality control is very important for exporting products in the foreign market, make sure your product is in good quality. For example, if you are exporting furniture, you need to check its finish, polish, joints, and also durability or you can get it checked from internationally acknowledged inspection company. In order to make sure the quality of the imported product you can appoint your representative abroad, or you can get help from SGS Inspection Company.
Customs is a tricky thing for both importers and exporters. Customs duties are different for different products, and you need to know about the duties you have to pay for your product. Custom duties change from time to time because it depends on many things like foreign currency and government policies. Dealing with customs could be hectic you can hire an experienced clearing agent for customs clearance.
Pricing is important for getting customers and promoting product sales in the international market. You need to consider all the expenses like product cost, custom duties, insurance, etc for both import and export. Always try to make a cost effective product for the market. Try to deliver good quality product at affordable price.
When you start import export business in Pakistan consider all the above mentioned point to have a good start. If you don’t follow the above mentioned steps, you might get stuck at some point.