Because it is a very dynamic field, where things change from day to day, import-export companies often encounter difficulties in carrying out the activity. To simplify your life, in this article we have referred to the common mistakes of importers and the ways in which they can be avoided.
Uncovered goods stocks
The creation of very large stocks of goods leads to higher prices, which can have negative economic effects (higher costs for consumers, lower margins for importers). Importers who prefer to store large quantities of goods thus block capital, which could be used for growth and to deal with possible unforeseen situations. In addition, inventories incur additional costs, such as storage costs. Therefore, if you are not a high volume importer, stock creation is not recommended.
Relationships with business partners
Even if sometimes in business you have to rely on flair and risk, when you have an import-export company, it is very important to know exactly the economic situation of your business partners. Bankruptcy, insolvency or even legal seizure on the assets of the company you work with can have a negative impact on you.
To make sure everything is in order, you can do a series of checks to:
- EORI number, mandatory for any company importing goods from Europe into non-EU countries or exporting goods from Europe to non-EU countries.
- annual financial reports
- presentation website
- Google recommendations
- social media activity
- important changes in the structure of the company you intend to work with
Increased reluctance to new products and markets
Obviously, you can’t diversify your business before doing all the calculations to your advantage. But if you rely on the same products for years, without diversifying your portfolio, you risk reaching the ceiling and the decrease of the market share.
A healthy business strategy also includes the development of the activity, after a careful verification of the potential partners and of the new products and services that can be introduced in the offer.
Incomplete customs documentation
Especially start-up companies face customs difficulties.
If you import goods of commercial value, a tax invoice containing the following information will be presented to customs:
- Tax identification data of the importer and the supplier of the goods (including VAT code and EORI number);
- Delivery condition – (defined in INCOTERMS) based on which the mode of transport is identified;
- For each of the goods mentioned on the invoice, the following will be entered:
- tariff codes for goods
- gross and net weight
- description of goods
- country of origin of the goods; Careful! The country from which the goods are imported is not necessarily the country in which the goods were produced.
- value statement, currency
In order to obtain the EORI code quickly and with minimal costs, we are waiting for your email at our address: email@example.com. Once we have all the necessary documents (the registration certificate from the National Office of the Trade Register, the registration certificate for VAT purposes – if applicable – and the articles of incorporation, respectively the identity card for individuals), we can deliver the code by e-mail to 1-2 days.