Checklist for Importing Risks

There are many risks in importing.

Some of these are:

  1. Price changes.
    Price can change from the source country because of fluctuations in their charges as well as taxes and other costs.

  2. Merchandise is obsolete.
    There is always the risk of importing goods which go on the market but because of the delays or because the trend has passed, the merchandise is obsolete.

  3. Foreign Exchange.
    You have to watch the fluctuations in foreign exchange because this can have an impact on your cost and therefore on your profit. You may need to set up some sort of hedging arrangement with the bank or agree to set the price firm in your home currency. This would mean that any fluctuations would not be your care but that of your supplier.

  4. Changes in Tariff.
    Make sure you are fully aware of any customs changes which could affect the tariff or any other costs like that that could be imposed.

  5. Delivery Times.
    Your supplier will have to be reliable because the transportation side of imports can cause you problems if difficulties arise.

  6. Other risks.
    There will always be other risks but they apply also to other businesses such as natural disasters, terrorist strikes and other similar problems at the port of export overseas.

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