‘Worldwide Brands’ has released their latest ‘Product Sourcing Newsletter’, complete with product sourcing tips for home-based e-tailers, upcoming trade shows, and spotlighted eCommerce wholesalers. The featured article is titled “Limiting Liability in Importing”.

Limiting Liability in Importing

By: By: Tisha Hedges, Director of Operation, WorldwideBrands.com

Importing inventory is no longer the exclusive domain of the big retailers and chain stores. Small and home-based businesses are finding that they too can get up-to-the-minute merchandise and cut their overhead costs by working with overseas suppliers. But if you’re thinking about using this product sourcing method in your own home business, you need to understand the responsibilities you’re taking on – so you can properly prepare for them.

New buyers are often surprised to learn that they’re responsible for paying import taxes. The tax is usually the same whether you bought the goods from China, France, Brazil, or anywhere else. It’s important to realize that your supplier is not the person to ask what your taxes will be – you can get this info from your local Customs office before you place any orders. For smaller orders, import taxes may not be much of a concern; your tax bill will grow as your orders increase.

When you’re importing products, it’s your responsibility to find out whether those products are subject to any restrictions, quotas or prohibitions. It’s important to understand that your supplier is not going to research these issues on your behalf. They will most likely be happy to sell you their goods; but if you don’t ensure those goods are legal, you may never receive them in your country. Again, if you’re new to the process, you may want to begin by working with a Customs Broker, to make certain you’re in compliance with all applicable regulations.

Western standards and certifications may have no equivalents in the country you’re importing from, so it’s critical that you clearly communicate with your supplier about your quality requirements. In some cases, you may even need to educate them regarding the regulations and standards their products will be subject to, when they arrive in your own country.

However, just discussing your quality needs with your supplier isn’t enough to protect you, in a legal sense. If your products should ever turn out to be defective or somehow harmful to end users, you are legally and financially liable for any damages they may cause. Verbal confirmations and assurances are good; but in the end, you need to work those requirements and specifications into your contract.

While importing can be a very profitable sourcing strategy for the home-based eBiz owner, it’s not without risks. Ignoring those risks won’t make them go away, but being aware and prepared will help you minimize your legal liability. States Bailey, “The best way to mitigate those risks is to get as much information as possible about.

This article has been provided by Chris Malta’s blog. Find more great information about your online business on Chris’s site. HERE.

Product Sourcing Newsletter

* IMNewswatch would like to thank Worldwide Brands for granting permission to reprint this newsletter article.

Before purchasing with you, buyers must perceive that your business is legitimate and real. But establishing customer relations takes time. And if they don’t feel comfortable buying from you, you’ll never get a chance to develop those relationships in the first place!

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