HOW TO START IMPORTING GOODS
Import starts with calculating the full cost of the goods in Ukraine. The owner compares the supplier's price, transport, insurance, duty, VAT, bank charges and delivery time.
This shows how much money is needed for the shipment and at what price it is profitable to sell it. UBC can prepare the calculation of the contract, UKT ZED code, customs value and documents before payment to the foreign supplier.
Delivery, Sales and Cash Turnover
After import, the accountant determines the actual cost of the shipment and the amount of import VAT. The manager sets the selling price taking logistics, storage, taxes and the desired margin into account. The owner sees how much working capital is tied up in the goods and when it will return after sale.
A reliable supplier, stable product code and predictable logistics reduce the cost of each later shipment. The owner can order a larger volume, negotiate a better price or change delivery frequency when actual data from previous purchases are available.
An alternative to direct import may be purchasing from a local distributor or using another supplier with more favourable origin and delivery terms. The options are compared by full cost and cash-turnover period. This gives the owner an economic decision based on the investment amount, margin and time required for the money to return.
Product turnover is often more important than the lowest purchase price. A shipment with long delivery or slow sales ties up money in stock, while smaller regular shipments may give the owner a higher annual return on invested capital. The decision compares margin, delivery time and the average sales period for one shipment.
UBC can help assess the first shipment or regular imports: the contract, UKT ZED code, customs value, foreign-currency payment and broker's work. To start, a description of the goods, supplier country, price, quantity and delivery terms is enough. The owner receives a calculation of the main expenses before entering into the transaction.
Customs Value, Payment and Clearance
The foreign trade agreement determines the goods, quantity, quality, price, currency, deadlines, delivery terms, acceptance procedure and responsibility of the parties. The invoice and packing list use the same names and quantities. The director signs a contract that corresponds to the actual purchase.
Customs value is determined under the Customs Code and is used for customs purposes, including calculation of customs payments. The owner gives the broker the contract, invoice, transport documents and other information relating to the declared value and delivery terms. For the importer, the full cost after release of the goods is what matters, so customs payments are included in the calculation before the shipment is ordered.
Payment to a non-resident is made under the current foreign-exchange rules. The owner aligns the payment date and method with banking conditions before the monetary obligation arises. For a significant purchase, an advance, partial payment and payment after shipment can be compared if the supplier agrees such terms.
The customs broker prepares the declaration based on documents concerning the goods, value, origin and transport. The director gives the broker exact product characteristics, while the accountant provides funds for customs payments. After release, the warehouse accepts the goods using the shipment documents.
For certain product categories, the law provides special certificates, conclusions or other documents. For ordinary consumer and industrial goods, the owner first determines classification, origin, marking and technical requirements. For machinery, food products, cosmetics and other special groups, the package is formed under the rules for the specific product category.
Contract and Full Cost of the Shipment
The purchase price is only part of the cost. Transport, insurance, bank fees, broker services, duty, import VAT and other expenses related to the specific goods are added. The owner calculates the full amount before signing a large order and sees the expected margin.
The UKT ZED code affects duty and other import rules. It is determined by the composition, material, function and technical characteristics of the goods. For a new product range, it is useful to determine the code before paying the supplier, especially where different tariff headings result in different costs or document requirements.
The country of origin is separate from the country of dispatch. If the goods meet the preferential origin rules under an international agreement of Ukraine, the importer may use the exemption from import duty or reduced rate provided by the agreement. The supplier provides proof of origin in the form required by the relevant agreement.
Delivery terms determine which expenses are already included in the supplier's price and where the seller fulfils its delivery obligations. The director agrees them together with transport and insurance. This allows offers from different suppliers to be compared by full cost, including all expenses added to the invoice price.
Before signing the contract, the owner compares the supplier's registration data, business experience, bank details, terms for returning an advance and product documents. For a large first purchase, it is useful to start with a shipment whose size matches the company's sales capacity and working capital.
Import is profitable when the owner knows the full cost before purchase and controls the period in which the money returns after sale. UBC can help assess the contract, customs payments and bank settlement. We will be pleased to answer additional questions. We wish you success in trade!
Why Choose Us?
The main activities of the UBC group include consulting and investment services, assistance with obtaining credit and attracting investors, acquisition and sale of established businesses, and commercial real-estate development in Ukraine and abroad. Starting with the fundamentals - company registration in Ukraine, Europe and other countries and opening accounts with reliable banks - we also provide corporate law, offshore jurisdictions and offshore companies, business consulting, audit, certification, LLC registration, registration of financial companies, asset-management companies and investment funds, registration of joint-stock companies, issuance of securities and bonds, support for foreign investment, construction licences, permits for design and construction, and other services for successful business in Ukraine. We provide a complete turnkey business-service package within the shortest practical timeframes.
We always work exclusively towards the result you need and will do everything necessary to achieve it within the required timeframe, taking full account of your wishes and requirements.
Our continuously expanding network of regional and international partners helps resolve our clients' business matters both in Ukraine and abroad.
Why is it better to start a business in Ukraine with UBC? The answer is simple: we have substantially more practical experience, resources and capabilities for efficient implementation of your objectives. Our group has been and remains a leader in Ukraine in the corporate-services sector, and the UBC corporate structure comprises more than 10 companies operating in different business sectors.
Frequently Asked Questions
What Should the Owner Calculate before Importing?
The price of the goods, transport, insurance, duty, import VAT, banking expenses and other costs related to the shipment.
Why Determine the UKT ZED Code before Payment?
The code affects the duty rate and import rules, so the owner can determine the cost and selling price more accurately.
What Affects Customs Value?
Customs value is determined under the rules of the Customs Code taking into account the transaction terms and costs that by law are included in its calculation.
Can an Assessment of the First Shipment Be Ordered?
Yes. A description of the goods, country, price, quantity and delivery terms is sufficient for a preliminary assessment.
Incoterms Rules for Importers and Exporters
How to Determine a UKT ZED Commodity Code
Customs Duty and Import VAT
Export Documents
International Transit under NCTS
Accounting and Tax Support for Companies
Legal Support and Compliance
Licences, permits, certification
Finance, Grants and Investment
International Trade and Market Entry
Digital Services for Companies
UBC and Partner Services Across Ukraine
Overview for Companies in Ukraine