The first and most important step in deciding whether to import goods is to determine if a viable market for those goods exists in Australia. The market for anything depends upon its desirability and its price.
You may have identified a desire for an imported product in Australia but it is impossible to correctly assess the market for that product, until its selling price has been calculated.
The trading term 'Free Into Store' refers to all costs incurred in the delivery of goods to your premises, including the cost of the product, shipping costs, GST, wharfage duty and inland cartage, etc. As a potential importer, you should seek to correctly identify all those cost elements that make up the 'Free Into Store' price of the goods, including:
the exporter's selling price
clearing charges
inland transport to the point of loading
customs duty
port charges at the point of loading
Goods and Services Tax (GST)
freight from the point of loading to the point of discharge
fumigation charges (if applicable)
port charges at the point of discharge
inland transport to importers’ premises
bank charges
insurance against loss or damage
The costs associated with each of these areas can be determined by contacting the relevant parties involved with each aspect of the importation process. These organisations may include exporters, forwarding agents, shipping companies, customs brokers, cartage companies, insurance underwriters and the Australian Customs Service.
The exporter's selling price may already include some of these expenses, however, it is important to find out which costs the exporter's price includes. Never assume that any or all of these expenses are part of the exporter's price.
Obtaining import quotations and invoices in Australian dollars will allow you to avoid adverse fluctuations in exchange rates. If this isn't possible, you should contact your bank to discuss the possibility of covering the exchange risk with a forward exchange contract. A forward exchange contract is a formal agreement between a bank and a customer to exchange currencies in the future at a fixed exchange rate.
Potential importers should consider all transport options, including sea and air freight. Sea freights are often subject to a much higher minimum charge than air freight rates from the same destination. It may be less expensive to use air freight for smaller loads.
The amount of freight payable will also be affected by:
shipment in full container loads (FCL) rather than less than full container loads (LCL)
shipment on conference vessels rather than non-conference vessels (conference shipping is undertaken by carriers with regular sailing schedules and routes, where non-conference shipping is undertaken by independent carriers with irregular schedules and routes)