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Importing Channels

Your goods may pass through a number of hands before they reach the final consumer. However, you will be concerned primarily with your business point of entry into the UK market. Such an entry point, depending upon circumstances, may be one of the following:

1. A commission agent who acts for the exporter in exchange for a commission and does not buy for his own account. Importation may be organised by you, or by your agent, on behalf of your customers in the UK. In appointing such an agent, you must do the following with great care:
   • Obtain good legal advice
     
   • Find out about the laws governing commercial agreements
     
   • Sales targets and other terms must be made abundantly stated
     
   • Establish how much commission will be payable and whether commission must be repaid if goods are returned or if a customer fails to pay
   • Establish the duties of the agent and of the exporter
     
   • Promotion
     
   • Termination notice

2. An importer trader who buys for his own account and organises importation, but sells on the goods promptly, often before they arrive in the UK;

3. An importer merchant who imports the goods and holds them in order to supply customers on demand from his warehouse;

4. An importer wholesaler who is similar to the merchant except that there will be a greater emphasis on selling and distribution in the UK market. The wholesaler is likely to have a sales force, delivery vehicles etc;

5. A distributor agent who acts on your behalf, often in exchange for an agreed price discount, and holds the goods in his warehouse and arranges for their effective distribution in the UK;

6. An importer retailer who imports the goods in order to sell on direct to the individual customer. Due to the growth of large retail chains, this type of importer is becoming increasingly important in foodstuffs, clothing and household goods sector;

7. An importer manufacturer who imports raw materials or semi-processed goods, directly for his own use, rather than utilising the services of an importer trader or importer merchant;

8. Finally, you should not ignore the importance of the UK-based export houses who import goods into the UK for immediate re-export to customers abroad, or who themselves often ship direct from the supplier's (exporter's) country to non-UK customers.