- Check whether a product is legal, restricted or licensed in your market before you contact a single supplier.
- Classify the product (HS code) and calculate a full landed cost early — duty and freight can turn a good deal into a loss.
- Verify suppliers, approve samples and agree the Incoterm and payment terms in writing before you pay a deposit.
- Inspect goods before shipment, and have your customs documents ready before the goods arrive.
Importing looks complicated from the outside because it touches several different systems at once: your country’s customs rules, a supplier in another time zone, a freight network, banks and sometimes product-safety regulators. The good news is that the process is the same for almost every product. Once you have done it properly once, every later order is a repeat with small variations.
This guide walks through the twelve steps a small business typically follows to bring in its first commercial shipment. The order matters: most expensive mistakes happen when a business skips ahead to buying before the earlier checks are done.
Step 1: Check the product and the market
Before you think about suppliers, confirm there is a real reason to import this product. Look at what similar items sell for locally, who your buyers will be and how much stock you can realistically move in the first six months. A product that sells for three times its factory price may still be unprofitable once shipping, duty, returns and marketplace fees are deducted.
At the same time, note the physical characteristics that will drive cost: size, weight, fragility, whether it contains batteries, liquids, food, chemicals or wood. These details affect freight options, packaging and the regulators who may want to see paperwork.
Step 2: Understand the rules, licences and your importer number
Every country requires importers to be identifiable to customs. The name and format differ, but the idea is the same:
- In the EU and the UK, businesses generally need an EORI number to move goods across the border.
- In India, importers and exporters generally need an Importer-Exporter Code (IEC).
- In the United States, customs identifies importers by an importer number, often based on the business tax ID.
- In Canada, businesses typically register an import-export account linked to their business number.
Next, check whether your product is prohibited, restricted or subject to extra requirements. Common examples include food and cosmetics, electrical goods, children’s products, medical devices, plants and anything made from animal products. Some need a licence or permit; others need testing, labelling or certification marks. Your national customs authority and trade ministry websites are the right starting point — for example cbp.gov, gov.uk or cbsa-asfc.gc.ca.
Step 3: Classify the product with an HS code
The Harmonized System (HS) code tells customs what your goods are, and it decides the duty rate, any quotas and many of the regulatory checks. Get a provisional classification now, because you cannot estimate cost without it. Our HS code finder is a useful first pass, and HS codes explained shows how to confirm the code properly.
Step 4: Estimate your landed cost
Landed cost is everything you pay to get the product onto your shelf: purchase price, freight, insurance, duty, import taxes, broker fees, port charges and local delivery. Run the numbers before you negotiate, so you know the maximum factory price that still leaves you a healthy margin. The landed cost calculator and import duty calculator will give you a working estimate in a few minutes.
Start with the price customers will pay, subtract your target margin and selling costs, and the remainder is your maximum landed cost. Subtract freight, duty and fees from that, and you have your maximum factory price.
Step 5: Find suppliers
Most small importers find suppliers through B2B marketplaces, trade shows, sourcing agents or industry directories. Shortlist several, not one. Send each the same detailed specification so you can compare like with like — our guide on how to write an RFQ covers what to include. If you would rather have suppliers come to you, you can post a buying request.
Step 6: Verify the supplier and order samples
Check the company is real, that it actually makes (or reliably sources) what it sells, and that the bank account you will pay belongs to the same business. Then order samples — ideally from two or three suppliers — and test them against your specification. Keep an approved “golden sample” that the production run will be judged against. How to find and verify suppliers covers the checks in detail.
Step 7: Agree the order and payment terms
Put everything in a written purchase order or contract: product specification, quantity, unit price, currency, packaging and labelling, production lead time, Incoterm, payment terms, inspection rights and what happens if goods fail inspection. For a first order with a new supplier, a common structure is a deposit before production and the balance after a successful pre-shipment inspection. Letters of credit and escrow-style services offer more protection at higher cost. See international payment terms for the trade-offs.
Step 8: Choose an Incoterm
The Incoterm decides where the supplier’s responsibility ends and yours begins — who books freight, who pays for which leg and where the risk of loss passes. New importers often use FOB or FCA so they control the main freight, or DAP when they prefer the supplier to arrange delivery. Avoid EXW unless you have a forwarder who can handle export formalities in the supplier’s country. Read Incoterms 2020 explained before you sign.
Step 9: Book freight
Decide between sea (full or shared container), air, courier or rail based on volume, value and urgency. A freight forwarder can quote, book space, prepare shipping documents and often arrange customs clearance as well. Measure your cartons early — the CBM calculator turns carton sizes into shipment volume. You can also request a freight quote.
Step 10: Inspect before shipment
Once goods leave the factory, your leverage drops sharply. A pre-shipment inspection by an independent inspector checks quantity, workmanship, labelling, packaging and function against your approved sample. Ask for a report with photographs before you release the final payment. Our quality inspection guide explains how sampling levels work.
Step 11: Clear customs
Your goods must be declared to customs, duties and taxes paid (or secured) and any regulatory checks passed before they are released. Most small importers use a licensed customs broker. Typical documents include the commercial invoice, packing list, bill of lading or air waybill and, where relevant, a certificate of origin and permits. Use the trade documents checklist so nothing is missing on arrival.
Ask the supplier to email draft invoices and packing lists before the goods are loaded. Errors are easy to fix before departure and slow, sometimes expensive, to fix once cargo is sitting at the port.
Step 12: Receive, check and record
When goods arrive, count cartons, check for damage and note any problems on the delivery receipt before signing. Then reconcile the actual costs with your estimate, update your landed cost per unit and file every document. Customs authorities can audit past imports, often several years later, so keep complete records.
Frequently asked questions
Do I need a licence to import products?
Most countries require a business to register as an importer (for example with an EORI number, an IEC or an importer number), but many ordinary consumer goods need no separate licence. Specific products such as food, medicines, chemicals, weapons, plants and some electronics often need permits, certificates or testing. Check with your national customs authority for your product.
How much money do I need for a first import order?
It depends on the supplier’s minimum order quantity and the product, but budget for more than the factory price. Freight, duty, import taxes, broker fees, inspection and samples can add a significant share on top, and you usually pay most of these before you sell anything. A landed cost calculation will give you a realistic figure.
Should I use a customs broker or clear goods myself?
Self-clearance is possible in many countries, but most small businesses use a licensed broker or a forwarder’s customs team. They know the filing systems, catch classification and valuation errors, and deal with holds. The fee is usually small compared with the cost of a delayed or incorrect entry.
What is the safest way to pay a new overseas supplier?
No method is risk-free, but common protective approaches include paying a deposit and releasing the balance only after a passed pre-shipment inspection, using a letter of credit for larger orders, or using a platform payment service that holds funds. Always confirm that the beneficiary bank account is in the supplier’s registered company name.
How long does importing take from order to delivery?
Allow for sampling, production, inspection, transit and clearance. Production alone often takes several weeks, and sea freight on long routes commonly adds several more. Air is much faster but more expensive. Build a buffer for holidays, port congestion and document corrections.
Post one buying request — product, quantity, destination — and get matched quotes. Free.
This guide is general education, not legal, tax or customs advice. Rules change and vary by country — confirm details with your customs authority or a licensed broker before you ship. Spotted something out of date? Tell us.