I received the email below from one of our newsletter subscribers the other day. It contained a lot of the first time/beginner importing questions that I hear over and over, so I thought I would add it to the site. I did not go into too much depth, but hopefully, this will get you going in the right direction.

Subject: Importing from Indonesia

I am currently in communication with a company in Indonesia. We are looking into purchasing a container of custom furniture. I have never done this before, and don’t know where to start. Can you please recommend resources to answer these questions (and provided insight into the questions I should have the answers to before starting)?

1. Are there companies that handle shipping from the factory to my place of business (shipping, customs, freight, etc.).
2. Can I do the things listed in 1 on my own?
3. What is the time involved in the entire transaction?
4. What questions should I ask the manufacturer (eg. How does the product get from their place to the port of exit)
5. How do I find out if this company is legitimate and business worthy?
6. What are the payment methods that I should use?
7. When and how much do I pay(upfront, on arrival etc.)?

There are probably a lot of other things that I am unaware of. I am looking for the resource(s) to guide me through this process the first time.

Best regards,

Mike

Here were my responses:

Hi Mike,

I hate to push my own product too much, but the resources I recommend are the ones we sell on our site. They’re both designed to address a lot of the issues you’re dealing with.

http://www.usimporters.org/the-importers-survival-kit/
http://www.usimporters.org/the-beginners-guide/

To answer some of your immediate questions:

1. Are there companies that handle shipping from the factory to my place of business (shipping, customs, freight, etc.).

Yes. You want to enlist the aid of a freight forwarder. Check the yellow pages under freight, shipping and cargo, or something similar. These guys charge a little extra but can handle the entire transport process.

2. Can I do the things listed in 1 on my own?

Yes, but not recommended the first time out unless your shipment is very small.

3. What is the time involved in the entire transaction?

Depends on the responsiveness of your vendor and Customs, the method of transport (via air or sea), and how long it will take to truck or rail from the port of arrival to your location.

4. What questions should I ask the manufacturer (eg. How does the product get from their place to the port of exit)

You want to clearly outline what are called “incoterms.” They consist of a dozen or so common shipping arrangements people use and help to define each party’s responsibilities.

5. How do I find out if this company is legitimate and business worthy?

The best way to do that is to have a trusted overseas purchasing agent. Otherwise start with small shipments and build a relationship.

6. What are the payment methods that I should use?

These vary. International wire transfers are common, but risky while letters of credit are more complicated but with reduced risk.

7. When and how much do I pay(upfront, on arrival etc.)?

This is a personal preference. As with any new supplier, I would be uncomfortable paying too much in advance without an established relationship.

I hate not being able to go into more detail about these, but each question could have a 20 page answer by itself. Hopefully he’ll be able to use some of the information and answers provided to get him thinking in the right direction.