Common Mistakes First-Time Importers Make

1. Underestimating the Total Landed Cost

One of the most common mistakes is focusing only on the supplier's quoted price.

• Failing to account for international freight costs.
• Overlooking port handling and terminal charges.
• Ignoring warehousing, delivery, and fuel surcharges.
• Forgetting that customs duties and VAT are often calculated on the value of the goods, shipping, and insurance combined.
• Underestimating these costs can increase the total landed cost by 30% to 50%, leaving importers unable to clear their goods.

2. Mismanaging Customs and Documentation

Accurate documentation and compliance are essential for successful importing.

• Using incorrect Harmonized System (HS) codes, resulting in incorrect duty calculations and potential penalties.
• Failing to check whether products require permits, licenses, or regulatory approvals.
• Submitting incomplete or inconsistent commercial invoices, packing lists, or shipping documents.
• Triggering customs inspections and clearance delays due to documentation discrepancies.

3. Poor Supplier and Product Verification

Choosing the wrong supplier can result in significant financial losses.

• Selecting suppliers based solely on the lowest price.
• Skipping supplier verification and due diligence.
• Placing large orders before testing product samples.
• Failing to confirm product specifications, materials, dimensions, voltage requirements, or packaging details in writing.
• Not conducting independent pre-shipment inspections before goods leave the factory.

4. Overlooking Shipping and Contractual Responsibilities

A lack of understanding of shipping terms can create unnecessary risks.

• Not understanding Incoterms such as EXW, FOB, CIF, or DDP.
• Being unclear about who is responsible for transport, insurance, customs clearance, and delivery costs.
• Declining cargo insurance and assuming the carrier will compensate for loss or damage.
• Failing to account for production lead times, port congestion, customs clearance processes, and seasonal shipping delays.

How to Reduce Risk When Importing

Before placing an order or making payment to a supplier, it is advisable to:

• Verify the supplier's legitimacy and track record.
• Request and evaluate product samples.
• Confirm all product specifications in writing.
• Understand the agreed Incoterms and associated responsibilities.
• Calculate the full landed cost before committing to an order.
• Ensure all import requirements and compliance obligations are met.
• Work with an experienced freight forwarder and customs clearing partner.

Need Help Importing?

At Cargo-it Africa, we help South African businesses navigate the importing process with confidence, from supplier coordination and freight forwarding to customs clearance and delivery.