11 to 13 DECEMBER, 10:00 - 18:00
Dubai World Trade Centre
1) Know the Supplier
This portion requires market research helping you to find out what you are looking for and who is the most feasible option for your requirement. At the expo, there will be a range of suppliers available. Coming prepared to the show saves a lot of time and effort so make sure you have already communicated with your chosen ones.
2) Model the Product
The reason why you are visiting the expo should be very clear and precise. Creation of a prototype model is an effective method to communicate what you are exactly looking for. This technique saves time and has proven to be recognized in the import industry. It also reduces the room of potential errors, miscommunication, and poor quality.
3) Placing the order
After the initial formalities are over and the importer has obtained the license quota and the necessary amount of foreign exchange, the next step in the import of goods is that of placing the order. This order is known as Indent. An indent is an order placed by an importer with an exporter for the supply of certain goods.
It contains the instructions from the importer as to the quantity and quality of goods required, method of forwarding them, nature of packing, mode of settling payment and the price etc. An indent is usually prepared in duplicate or triplicate. The indent may be of several types like open indent, closed indent and Confirmatory indent.
In open indent, all the necessary particulars of goods, price, etc. are not mentioned in the indent, the exporter has the discretion to complete the formalities, at his own end. On the other hand, if full particulars of goods, the price, the brand, packing, shipping, insurance etc. are mentioned clearly, it is called a closed indent. A confirmatory indent is one where an order is placed subject to the confirmation by the importer’s agent.
4) Contractual Agreement
Whether you’re importing or exporting goods, business agreements need to exist between the person you’re buying from or selling to, and the following key points need to be included in those agreements:
The products: You need to be clear about their exact specifications so that you know what you’re getting.
Sales targets: This includes things like order quantities and the frequency of shipments.
Territory: In which territory may the distributor sell? Will the distributor have exclusivity there?
Prices: What are the prices of the products and the allowable markups?
Payment terms: Will you use letter of credit, sight draft, open account, 30 days, consignment, and so on?
Shipping terms: Will your terms be free on board (FOB) airport; free alongside ship (FAS); cost and freight (C&F); cost, insurance, and freight (CIF); and so on?
The level of effort required of the importers: How hard does the importer have to work to sell the products, including minimum order commitments and long-term commitments?
Sales promotion and advertising: Who will do it, who will pay for it, and how much will be invested?
Warranties and service: How will defective or unsold products be handled?
Order lead time and price increases: Lead time is the time required to ship the product to the company purchasing the product. When negotiating with the supplier, you need to be clear on who’s responsible for any increases in material or transportation from the time the order is placed and the time it’s actually available for shipment.
Trademarks, copyrights, and patents: Who will register, and in whose name will it be in?
Provision for termination of the agreement: Under what circumstances can the agreement be dissolved?
Provision for settlement of disputes: If a product is defective or there is a misunderstanding about some aspect of the purchase or sales agreement, what process will be used to resolve disagreements?
5) Payment and Related costs
With a globalized economy, and a very competitive international market for commodities, exporters are faced with difficult choices. From a sales and marketing perspective, building favorable credit terms into export contracts can be a means toward obtaining contracts, but can ultimately cause worse problems in terms of cash flow. So how can exporters collect payment while still remaining competitive, and insulate themselves from too great a risk? While collecting payment can be difficult in one's own economy, it can be even more difficult than you would think to collect it from an overseas supplier.
Nonetheless, agreed costs and freight expenses vary from supplier to supplier and are subject to negotiation.
At China Trade Fair Dubai, we strive to accommodate you through the import cycle by providing assistance throughout the process. These detailed steps have proven to be a benchmark in regaining market recognition and have also been a key success factor towards the economic growth for both the parties.