To sell more, you probably need to buy more. Assuming you are not out to buy a whole business, can you improve your competitive advantage by buying good inputs – products, services or intellectual property – from a foreign source?

Here are a few general buying tips to include in your business plan and check as necessary with your trusted advisors. Here’s a spoiler: planning helps. So does planning how to deal with surprises, it can soothe busy business people.

What to Look For in an International Supplier

• Unique Selling Proposition: Does your product or service represent an irresistible offering to your clients? This means that any input ingredient you buy needs to be equally irresistible. Irresistible means variety, good quality, works well, extra features efficient, smart, easy for clients to operate, well designed, and so forth.
• Reliability: Is the product unique or better but still reliable. If you buy from abroad and something does go wrong, is it too far to fix promptly? Or will you buy and assemble locally there?
• Viability: Does the price fit in with your budget or business plan? Are the supply terms appropriate?

When sourcing a service, you should ask even more questions: Is the service supplier knowledgeable, experienced, and regulated? How long have they been in business? Have there been any known serious complaints or lawsuits against them? Does the service provider present things clearly and look at both the macro and micro levels? Can you take them at their word?

Customs, VAT, and Taxes

• Customs: In the case of physical products, what rates of customs apply? Do the Trump administration tariffs affect anything? Does a free trade agreement apply? Can a different product classification be justified? Books can be shipped as hardbacks, paperbacks or downloaded from the internet – can your product?
• VAT: What rate of VAT (or Goods & Service Tax, sales tax, etc) applies to imported ingredients? Do you need to pay it straight away?
• Withholding Tax: When paying for an imported ingredient, will you have to pay withholding tax? What is the procedure? At what rate? Does any tax treaty help?
• Local Reporting: In some countries, imported items may need to be disclosed – for example to your bank for anti-money laundering (AML) purposes. The banks are looking for you to disprove criminal, terror or tax evasion motivation. In short, the banks are becoming international tax Police…

Legal, Finance, and Logistics

• Legal Aspects: Before signing a contract with any foreign supplier, consult lawyers in each country. The aim is to protect you from contractual risk. Decide which law and Courts will apply if there is a problem.
• Finance: How will you pay for imported items? Suppliers’ credit? Can the foreign supplier obtain export credit insurance or guarantees from their government or bank?
• Logistics: In the age of e-commerce, some suppliers effect drop shipments from the point of manufacture (e.g. in China) to your premises, some have their own warehouses (e.g, Amazon) at strategic locations.

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We at Advisors.biz want to help your business expand internationally. Smart buying from abroad is often part of the deal.