What is Import? How to Become an Importer?

What is Import?

In short, define import as the purchase of products from another country and bringing them to the country. Import process involves bringing products temporarily or definitively, with or without paying taxes.

Definitive imports can be made within the framework of the rules of the “Release for Free Circulation” in the customs legislation. In order for a good to be released for free circulation, it is not sufficient to pay only the taxes that must be collected on import; it is also necessary to implement import guidelines and complete other necessary procedures for the import of the goods.

It is possible for products not in free circulation to be brought into the country completely or partially exempt from import duties and without being subject to international import trade policy measures and re-exported without any changes other than ordinary wear. This practice is called the "Temporary Export". In cases where identification of the imported goods is not possible, the use of the temporary importation regime is not allowed. If these goods will undergo any process or workmanship during its stay in the country, the transactions related to the entry and exit of the goods can be made within the framework of the "Inward Processing" rules in the European Union countries.

Inward Processing is a customs regime that allows the import of raw materials, auxiliary materials, and packaging materials, which are necessary for the production of the product to be exported and cannot be obtained from the domestic markets in terms of price and/or quality, in order to increase the product diversity and competitiveness of the exported products in the world markets.

Shipments from free zones to other parts of the country are also categorized under import business definition. You can reach our detailed blog post about Free Zones by clicking on it..

Documents Required for Import

For a successful import process, the following documents are typically required:

  • Commercial Invoice
  • Packing List
  • Bill of Lading/Airway Bill
  • Customs Declaration
  • Import License (if applicable)
  • Certificates of Origin and Quality

What is the Importance of Imports?

Imports play a crucial role in the economy, as they:

  • Allow businesses to access goods not available domestically
  • Foster competition and economic growth
  • Enhance consumer choices and affordability
  • Support manufacturing industries through access to raw materials

Trade plays a crucial role in shaping global markets. To explain import, one must analyze the volume of goods entering various economies and their impact on domestic industries. One key factor is the importers number, which helps measure trade activity and demand trends.

Benefits of Import

The advantages of import jobs and businesses include:

  • Cost savings due to lower manufacturing costs abroad
  • Increased product variety and quality
  • Strengthened international trade relationships
  • Boosting domestic businesses relying on imported raw materials

What are Types of Importing in International Business?

There are various types of importer business models, including:

  1. Direct Importing: Businesses directly purchase from overseas suppliers.
  2. Indirect Importing: Goods are obtained through third-party distributors or intermediaries.
  3. Industrial Importing: Importing raw materials or components for domestic manufacturing.
  4. Consumer Goods Importing: Bringing in finished goods for retail markets.

Which Countries are the Biggest Importers?

The largest importer in the world is the United States, followed by China and Germany. These countries import vast amounts of raw materials, consumer products, and industrial components.

What is Importer?

An importer meaning refers to a business or individual who purchases goods from foreign countries and brings them into the domestic market. Importer definition includes compliance with customs regulations, tax payments, and supply chain management.

Difference Between Importer and Exporter

An importer is responsible for bringing goods into a country for sale or use, ensuring compliance with local trade regulations and import duties. In contrast, an exporter ships goods to foreign markets for sale or distribution, often navigating international trade agreements and export policies.

How to Become an Importer?

Becoming an importer requires careful planning, knowledge of trade regulations, and the ability to establish strong business relationships with reliable suppliers. It is essential to understand market demands, legal requirements, and logistics processes before entering the import industry.

What are Importer Requirements?

1. Checking Customs Policies & Procedures

Before importing, it should be checked whether any license or permit is required for the product to be imported or to become an importer. While a license is not generally required to become an importer, there are certain goods in each country that may be subject to special requirements in terms of testing, marketing, certification, labeling, packaging and documentation.

2.Formal Contract

Make sure you provide a formal written document to the buyer and seller before purchasing and importing foreign goods. This document should cover all of the important concerns, such as product acceptance, warranties, and dispute resolution procedures. Otherwise, your company may be exposed to severe risks that may be difficult to manage.

3.Incoterms

It is the responsibility of the importer firm to fully understand the costs, rights, and obligations outlined in the Incoterms. This will also help them to estimate their costs more accurately. For detailed information about Incoterms, you can read our blog post by clicking on Incoterms in Foreign Trade.

4.Classifying the Products Properly

The rate of duty imposed to a product is determined by its harmonized tariff schedule classification (HTS). As a result, it's critical that you assign your products the right classification. This will not only reduce your duties, but it will also ensure that your goods do not meet any further obstacles while entering the country.

5.Reliable Supplier

You must ensure that the supplier with whom you are dealing is trustworthy before proceeding with any final transactions. This is the time to do extensive research on their reputation, financial situation, and entire history. Doing business with unknown suppliers may be risky, so the importers have to always be prepared.

TradeAtlas: The Best Partner for Importers

For those looking to streamline their import process, TradeAtlas provides detailed importer list data, supporting businesses in finding trusted suppliers and navigating the importer business landscape efficiently. TradeAtlas is the world's most comprehensive import and export database, offering real company data and historical shipment records. Thanks to TradeAtlas, businesses can easily connect with reliable importers and exporters, ensuring smooth and successful trade operations. If you want to explore TradeAtlas for free, you can click here.

 

For detailed information on the subject of export import ratio, you can review the content “The Ratio of Exports to Imports”.