Product Sourcing
Importing Goods: Duties, Compliance, and Clearing
Imports come with duties and compliance rules that can surprise new sellers. Learn the essentials of a smooth clearance.
Import Duties and Compliance
Importing can dramatically lower your cost of goods, but it introduces duties, taxes, and compliance requirements. Understanding these upfront prevents costly surprises and delivery delays that hurt buyer trust.
What to plan for
- Customs duties based on product classification and value
- Import VAT or GST applied on top of duties
- Documentation: invoices, packing lists, certificates of origin
- Restricted or prohibited items that require special handling
- Incoterms that define who pays for freight and insurance at each stage
Getting the paperwork right
Accurate product classification and correct valuation are the foundation of smooth clearance. Working with a licensed customs broker for anything complex is worth the fee. Under-declaring to save duty is illegal and risks seizure and fines.
Plan import costs into your pricing from the start. A product may look profitable at a low factory price but become unprofitable once duties and logistics are added.
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