5 Tips To Make Importing To NZ Faster And Simpler

No matter what you might think, importing to NZ can be quite difficult. There are numerous things that you have to consider and you need to be very calculated. Before you make the final decisions, make sure that you take into account the following really important tips that can make importing to New Zealand a lot simpler.

Do You Have A Local Market For What You Import?

Basically, you import goods for one of 2 reasons:

Import To Resale

The local market needs to show enough demand before importing starts. You want to identify the potential target customers and then conduct a survey to be sure that what you plan to import is going to be profitable.

Import To Use In Manufacturing

When you need to import to start manufacturing, you need sufficient demand for your end product. Also, you have to be sure that you take into account the financial side of things. Are there local suppliers that can be used? In this case, does it make sense to import instead of using them?

Can You Legally Import Into New Zealand?

There are several goods that are not legal to import into New Zealand. Also, there are restrictions on various items. Restrictions range from complete prohibitions (for things like some medicines and chemicals) to particular products coming from some countries.

It is possible that you need to be given the consent of the Customs Service of New Zealand or even the Ministry for Primary Industries. If you import cars to New Zealand, special rules apply. We can keep going but the idea is that you have to be sure that you can actually import before you sign a deal with anyone.

Analyze Import Costs

Many businesses, especially those that never imported anything into New Zealand in the past, make the mistake of drastically underestimating costs. It is vital that you understand and calculate absolutely all charges and costs before an order is placed with any overseas company. Some of the costs you have to take into account include:

• Insurance and transport costs
• Storage
• GST
• Custom duties
• Custom levies
• Finance charges
• Extra service charges for things like freight forwarders or customs brokers

There is a pretty good possibility that you have to properly identify the customs clearance tariff that applies to the goods you will import. This is much more difficult to do than what many business owners believe. You might even need the help of an experienced New Zealand shipping company that has been handling import for what you want to bring into the country.

The Cost Efficiency Of Importing

After you get a good idea of how much you need to pay, it is time to see if the process is cost-effective. Some additional charges have to be considered and they can quickly add up. At the end of the day, you have to make a very good ROI (return on investment). If your profit is really small, it might not be worth it to go through the hassle of importing.

Always consult with the customs broker, business adviser, and your accountant to make the correct calculations.

Is Importing Affordable?

Financing importing costs is very important. The process is very cash intensive. This is because transport or shipping costs are high so you have to place larger orders to justify the decision. Also, your working capital is tied up when you import anything to NZ. You only gain access to cash after you make a sale, which can be a long time after importing actually happens.