5 Mistakes of Unsuccessful Importers in Pakistan (Why Import Businesses Fail)
We are going to talk about new importers/trader, we will explain here 5 Mistakes of Unsuccessful Importers in Pakistan. If you have the plan to start your own import business in Pakistan so you have to read this article and don’t repeat these mistakes to running a successful business.
What are the reasons why small import businesses fail in Pakistan? you will definitely answer this question after reading this article.
5 Mistakes of Unsuccessful Importers in Pakistan
Followings are the 5 Mistakes of Unsuccessful Importers in Pakistan which are given below:
1) Not Having Correct Information about Import/Export Rules and Regulation
You have to research rules and regulation of a product that you want to import in Pakistan, the first thing you will check your required product must not be in banned, prohibited and restricted items list in Pakistan.
If you fail to collect this information, so ask from your customs clearing agent, your agent will make your life easy, and provide all your required information.
Then you will confirm the list of required documents of that particular product to clear customs clearance, again you will get custom agent’s help to come up with required documents list.
After getting the list, now it’s your job to collect all required documents before your cargo reach at the port and you start clearing process. if you fail to do so, then customs clearance process delay due to not having required documents, due to this you will have to pay demurrage charges, it increases your cost and reduces your profit margin.
2) Hiring an Unprofessional or Inexperienced Customs Clearing Agent
Now a day, freight forwarder also provide clearing agents services but they don’t have any customs license and in Pakistan only licensed Customs broker can clear import/export cargo, so they get work from you and hire an agent so it also increases cost, therefore directly hire a customs agent to save extra cost.
One more important thing, you must hire experience customs clearing agent, inexperienced and unprofessional agent create many problems.
3) Not Declaring the Correct Value in Customs
New importer deliberately not declare correct customs value because they think if they declare low value so customs duty and other taxes calculate less but they don’t understand it’s not going to work anymore in Pakistan, because Pakistan Customs determined the values of importable goods through Valuation Rulings.
What is a Valuation Ruling?
We discussed details video What is Valuation Ruling in Pakistan – Why Customs Values of Imported Goods Determined or Fixed.
4) Lack of Knowledge about Incoterms (FOB, CNF, CIF)
Get more information about What is Shipping Term FOB, CNF, CIF and Difference B/w FCL / LCL, carefully understand incoterms and give quote accordingly.
5) Not Verifying Supplier or Check Fraudulent Suppliers
Lots of new traders start to import business without a verifying supplier, how to distinguished scam supplier from the real supplier, I know it’s difficult but not impossible. Before starting new import business with a new supplier you have to verify about them.