Importing 1,100 Bags of Rice

Kawaii69 on 06/08/2015 - 16:32

Hello, I'm currently looking for some advice.
My dad is importing 1.1k 20kg rice bags, we live in Melbourne. It's our first time importing anything and we're wondering about the legal side of things, how will it go down, we have just talked to a "broker" and he told us that we would not be allowed to get the container to be delivered to our private residence.

If anyone knows anything about importing and could answer some simple questions it would be very helpful :)

The one question we have is how can we get the container delivered to our residence, is there any legal side to it? Was the broker correct? We have the space in our home to store the rice and will pay tax when it arrives, we want to sell it from our home as we do not own a shop.

Education & Work

Comments

  • ProjectZero on 06/08/2015 - 16:42
    +5

    how can we get the container delivered to our residence

    Ye be trolling right? A container requires, at the very least, a forklift to unload… and I think that is is the unsafe way to do it. Unless you have a loading bay out the front of your residence that ain't happening…

    • Kawaii69 on 06/08/2015 - 16:50
      +6

      HAHAHAHAH my bad, I didn't mean it so literal, I was referring to the process of the delivery, like would quarantine allow for rice to be stored in private residence etc

      • [Deactivated] on 06/08/2015 - 16:59
        +15

        So this is 1100 bags of rice. That's a lot of rice. What are you going to do with it? Sell?

        I'd be concerned about storing that much grain in terms of pests. Weevils, pantry moths, rodents.. anything getting into those bags somehow.

    • nocure on 06/08/2015 - 17:03
      +7

      http://imgur.com/fwFjhC3

      • ProjectZero on 06/08/2015 - 17:06
        +4

        I stand corrected…

        • nocure on 06/08/2015 - 17:08

          Not sure how his neighbors would react.

      • altomic on 06/08/2015 - 19:09

        transformer porn?

        • nocure on 06/08/2015 - 19:31

          Yep ,nice bit of kit.

    • ESEMCE on 06/08/2015 - 17:06
      +22

      Agreed that this sounds crazy and I reckon your dad has a high chance of losing money on this venture.
      Import documentation, customs, duty and handling costs are all going to be high for a "once off" venture.

      Forklift is actually unlikely to be required to unload..
      It's rare to ship on pallets unless specified, cause a container is much taller than a pallet and the pallet itself is "empty space".
      Containers are normally unloaded by hand onto pallets…

      I don't know if it's illegal to have a container delivered to your home (it'd surprise me if it was)
      Containers can be delivered by sideloader or by skel trailer.
      Sideloader would put the container at ground level making it easier to unload, but they're more expensive.
      You'd need to have the container delivered by sideloader and have space in the driveway for the sideloader to set up before offloading the container and obviously space next to the driveway to fit a container. You'd also need to make sure that there were no cables crossing the path of the container as it is backed into the drive and unloaded.
      Skel Trailer means the truck literally leaves the trailer and container behind, so the container is still on a trailer and therefore well above ground level (guessing about 1.5m). That';s going to make opening the doors incredibly dangerous.. (goods move in transit so you could end up with a few hundred kilos of rice bags falling from metres above the person opening the doors)
      It's also going to make unloading more laborious, especially to start with (you'll need to unload from a ladder or something!

      Hope you have a lot of helpers or a long hire time on the container! Demurrage costs my company in the range of $100/day and I imagine our demurrage rate is cheaper than you'll get!

      • Kawaii69 on 06/08/2015 - 20:13
        +1

        Cheers lad, great ton of help!

        • Charity on 08/08/2015 - 01:16
          +5

          Businesswise, why even bother with rice? It is so cheap and so competitive. It is so well traded and marketed already.

          Bottled water is worth more.

          Pet food is worth more.

          A good potting mix (dirt) is worth more.

          And all of those have much much much higher margins.

          It is hard to believe how cheap Rice is - even in 1st world countries where almost everything else is overpriced. It is sad, but as useful as rice is, virtually everything else has a higher $ value.

        • Kawaii69 on 08/08/2015 - 02:06
          +1

          @Son ofa Zombie: Yeah I agree, I would've preferred importing homeware and stuff but my dad preferred rice

        • megadeth on 08/08/2015 - 15:47
          +4

          @Son ofa Zombie:

          Rice is cheap because people that grow them are not (deemed) humans. They were not born and live in first world countries. The geo-economical disadvantage that these countries have is increasing.

        • whirlpool_guy on 09/08/2015 - 19:44

          Your tons of rice will need that help

        • McFind on 09/08/2015 - 21:08

          Don't you mean 22 tonnes

        • dealman on 10/08/2015 - 18:23
          +2

          @quasims:

          Rice is cheap because

          Supply > Demand

          Lots of people eat rice , but obviously even more people make rice, and it's relatively simple and easy to make / process.

          Not because … people that grow them are not (deemed) humans. Remember few years ago it is these countries that had famines. It is all the technology and modern methods that have gone back there have increased production.

          The Price is low and stays low because of supply / demand.

      • nikey2k27 on 10/08/2015 - 07:45
        +3

        I done work before unloading shipping containers real need be careful. stuff can fall on you.

        • Nutrino on 11/08/2015 - 08:31
          +1

          2 people died unloading shipping containers recently in Sydney.

      • snook on 10/08/2015 - 10:28
        +1

        Unless you're in the middle of rural Australia, you may need Council consent to have a container on your property. You need to check with Council.

    • umoddbro on 06/08/2015 - 20:39
      +2

      Our neighbours get containers delivered to their house once in a while… not sure about the legalities but it is possible.

      • Hikey on 10/08/2015 - 10:53

        When you are moving to Australia from overseas they deliver your container to your new home

    • QuickToThePointless on 08/08/2015 - 11:47
      +5

      Ye be trolling right?

      Yes, this post reminds of the dude who doesnt shower much and thinks pulled beef is a scam.

      Who would buy rice from someones home?

      Serioulsy.

      Even if you do go though with this, i think the rats and mice will quickly eat your profits.

      On a side note, if it works, let me know - i will import a hundred million soya beans and sell them individually from my home, available 24/7 for convenience to compete woth coles and woolies

      • IDontWantToSignUpJu… on 09/08/2015 - 13:08

        My guess is OPs dad owns a small shop and wanted a cheaper source of rice. OPs dad will drive whatever he needs to work each morning as it sells and will store the rest at his place in the meantime. It's a bad idea but it looks like he's determined to do it.

        • iDroid on 10/08/2015 - 12:15
          +1

          Or maybe not:

          We have the space in our home to store the rice and will pay tax when it arrives, we want to sell it from our home as we do not own a shop.

          :)

    • MATTDAMON on 08/08/2015 - 17:21

      Nah dont need a fork provided you own the container or rent it, normally you stipulate delivery by side loader trailer, which has hydraulic arms to load/unload a container off the trailer.

      Anyways, im suprised quarantine isnt going to take this load, why on earth would you buy 22 tonnes worth of rice.

  • ChrisLevo on 06/08/2015 - 16:54
    +8

    Google is your friend.
    http://apps.daff.gov.au/icon32/asp/ex_casecontent.asp?intNod…

  • holdenmg on 06/08/2015 - 17:03
    +9

    So, have you checked with your Council as to running a Business from a Private Residence, or a Class 4 License (if required) and maybe your House/Contents/Public Liability Cover doesn't extend to this…

    What if the product you sold was contaminated?

    Do you have product liability cover for this sort of eventuality?

    • ITveteran on 09/08/2015 - 18:26
      +4

      I thought like you before, always worried about liabilities, so I failed to start any business. Look at those retail shops, particularly dollar shops, they are booming by selling those cheap shxt and I don't believe they comply all the regulations. This it's a era honest people usually get screwed while the outlaw cowboys pick the windfalls.I salute to OP's dad.

  • justhooked on 06/08/2015 - 17:04
    +9

    Just rent a storage shed for a week or so and get it delivered there ,this is what I did then transferred it to my garage at home
    Was not rice but other products

    • Davo1111 on 06/08/2015 - 17:08
      +43

      drugs

      • [Deactivated] on 06/08/2015 - 17:52
        +15

        Counterfeit drugs

    • PVA on 06/08/2015 - 17:08
      +2

      rice has to go to an approved quarantine storage. Cant just go to a storage shed.

      • mskeggs on 06/08/2015 - 21:14
        +2

        Yes, but after taking delivery following customs/AQIS clearance he means.

  • PVA on 06/08/2015 - 17:10

    have a read of what you need to do (link above).
    If you dont do it then the rice will all be confiscated when it arrives in Australia.

    you can't get the rice delivered to your residence.

  • Davo1111 on 06/08/2015 - 17:12
    +23

    Legailities aside, your garage floor slab was not designed to hold 22 tonnes on one section

    • noshopping on 09/08/2015 - 10:07

      ^ This. Check your house carefully, the worst thing you want happening is a cracked concrete foundation, which is going to cost you way way more than the profit you made on the bags of rice.

      • whooah1979 on 09/08/2015 - 10:22
        +3

        don't worry about the weight. 2t/sqm is fine on 100mm reo concrete. hell, i've >3t/sqm.

      • [Deactivated] on 09/08/2015 - 11:00
        +7

        The "importing a house" questions will shortly follow.

  • stargalaxy on 06/08/2015 - 17:30
    +1

    Your price is cheaper than Coles or Woolies? Are they a specialised type of rice?

    • Kawaii69 on 06/08/2015 - 19:24

      Not sure about that, we're planning to sell the 20kg bags for roughly $50 each, it's considered top-tier rice by the person who provided us with it, but we can't confirm that until we receive the shipment and test things out

      • aim54x on 06/08/2015 - 19:58
        +15

        That sounds pretty expensive for a 20kg bag of rice….I hope you have this all calculated so there is a profit in the end after you have everything sorted and above board.

        • QuickToThePointless on 08/08/2015 - 11:59
          +38

          There is a good markup if you sell individually by the grain

      • [Deactivated] on 06/08/2015 - 20:17
        +1

        it's considered top-tier rice by the person who provided us with it, but we can't confirm that until we receive the shipment and test things out

        I guess you've made sure it's not already available here in Australia somewhere? Can I ask what brand it is? Or what country it's from?

        The "but we can't confirm that until we receive the shipment and test things out" makes me think that you/your dad haven't tried the rice yet..? Does your dad trust the person/people trying to ship this stuff out to him? Cos you know.. it might not all be rice…

        • Kawaii69 on 06/08/2015 - 20:24
          +6

          Not really, pretty sure they sell the same rice at middle-eastern stores but at a higher price like $60-70 depending on the store, the rice is from Pakistan, the branding is "Moon". The bloke that we're getting it from was one of my dad's friend's friend. And yes he trusts him to an extent

        • whooah1979 on 06/08/2015 - 23:11

          @Kawaii69:

          What is the fob per bag or per tonne?

        • Scrooge McDuck on 08/08/2015 - 11:04
          +29

          @Kawaii69:

          it's considered top-tier rice by the person who provided us with it, but we can't confirm that until we receive the shipment and test things out

          The bloke that we're getting it from was one of my dad's friend's friend. And yes he trusts him to an extent

          My Bad Idea Alarm is going off.

        • BartholemewH on 08/08/2015 - 18:31
          +1

          @Scrooge McDuck:

          I agree. I work for an importer / wholesaler and wouldn't consider this even though I have relationships with exporters, customs agents & freight companies that far exceed the op's.

        • Serapis on 09/08/2015 - 08:15

          @Kawaii69:

          It's not really worth it if you take a good long look at this… $50 yes but take into account customs duty, fees, tax, permits required and you're looking at selling the rice @ around the same price, maybe more. Might suggest looking into how much a wholesaler and distributor here would sell it for per bag if you were to purchase the same quantity.

          Might also suggest doing a search on the Dept of Agriculture's DB for what you're importing.

          I'm assuming general white milled or polished rice so here's the sheet.

        • rodinthink on 09/08/2015 - 17:22

          @Scrooge McDuck:
          Sarcastic level is too damn high here

        • cryptos on 10/08/2015 - 09:52

          @Kawaii69: I don't buy basmati from overseas after reading about arsenic and pollutant uptake in rice, only buy Australian now

        • [Deactivated] on 11/08/2015 - 12:07

          @Scrooge McDuck: Yes, it's not like the salesman is going to pitch his goods as average-tier or lower-tier.

        • HoracePinker on 11/08/2015 - 13:46

          @cryptos:

          Part of the import requirements is that a sample has to be provided for testing and tested for a multitude of harmful substances. only once it receives the all clear will they be able to sell it.

        • MaccDogg on 11/08/2015 - 14:48
          +3

          @Scrooge McDuck:
          This week on boarder patrol

        • Forfiet on 31/08/2015 - 03:46

          @cryptos: Arsenic is sadly more common than you might think….. I think the levels are the important part….

      • JMERC on 08/08/2015 - 13:44
        +1

        Coles sell 10KG bags for $20…

        I just picked up 10KG for $7 when they went on special.

        Will have a tough time selling this product even if it is 'top-tier'.

        • SpendLess on 08/08/2015 - 21:22
          +2

          im a tighta$$ and buy cheap stuff from coles as well and i dunno either my rice cooker is crap or the rice is crap
          its never as good and fluffy as the rice my parents make and they buy the good rice from asian grocers…but they also have a $200 Tiger rice cooker compared to my $20 kmart one lol

        • khomeini on 09/08/2015 - 00:39
          +2

          Whilst I agree with the concerns regarding OPs venture. Seriously, go talk with customs about what you can/cannot import and pay tax on, as they WILL get suspicious when 1 tonne of rice comes here and see delivery to a home address.

          I also agree with OP (& ppl who eat rice) that you cannot compare the "cheaper" Coles/shops normal rice with the "top tier" stuff. It's no comparison guys… Like comparing coffee (there's different grades).

          OP, i'm assuming it's the ultra premium basmati (cellar rice) right? It just tastes better and is healthier. Whilst frugal, I do spend close to $60-80 for a 20kg bag so $50 would be a profit if you sell to your paki/afghan associates ;)

        • aim54x on 09/08/2015 - 15:14
          +1

          @SpendLess: It could be the rice cooker, I recently bought a decent Panasonic and rice has been a lot nicer (have not changed the rice)

          http://www.panasonic.com/au/consumer/household/kitchen-appli…

        • citybargainhunter on 09/08/2015 - 18:24
          +1

          @SpendLess: you definitely need both, buy a Tiger rice cooker, it will last you a long time, mine has lasted close to 20 years and still going strong, I consider it a worthwhile investment, same with a bed but that's a another story.

        • ITveteran on 09/08/2015 - 18:35

          @citybargainhunter: Japanese rice cookers are always the best. Don't buy the Chinese ones, no matter how fancy they look.

        • citybargainhunter on 09/08/2015 - 18:37

          @ITveteran: OK, I've never owned a Chinese rice cooker before. I've only ever owned one really and that's my Tiger. :)

        • bargdebarg on 09/08/2015 - 21:36

          @SpendLess: use a heavy based saucepan with a tight fitting kid and the absorption method. Your rice will be better than your parents.

        • khomeini on 10/08/2015 - 08:55

          @bargdebarg:
          mmm kid….. are you talking the human or goat variety.
          PS. I agree (or you can go old fashioned and try cooking without a rice cooker & pots/lids - better tasting but more effort - my wife only likes rice like this whilst I being lazier go for the cheaper tasting rice-cooker method).

        • aim54x on 10/08/2015 - 09:23

          @bargdebarg: I grew up with rice cooked with this method, truth said the Pansonic does a comparable job.

        • [Deactivated] on 10/08/2015 - 10:52

          @SpendLess: Got a crazy rice cooker from china. Didnt cost anywhere near $200 and it really makes a big difference even with coles brand rice.

        • bargdebarg on 10/08/2015 - 11:08

          @khomeini: goat variety however metal lid is preferred to avoid a goat flavour in your rice…

        • bargdebarg on 10/08/2015 - 11:10

          @aim54x: I wouldn't be surprise, I guess I still prefer the absorption method due to no need for another appliance. We have rice about 2-3 times a week and this never fails us! Plus you can use the pot for other things. Mind you I have heard some interesting uses for rice cookers…

        • aim54x on 10/08/2015 - 11:21

          @bargdebarg: I have used mine to bake cakes…..We use it to free up the stove top, when we cook we often have a few things going at once to get dinner on the table at a reasonable hour after work

        • Manh on 11/08/2015 - 01:20
          +1

          @SpendLess:
          I find usually the 10Kg plastic bag SunRice brand rice from Coles are really old rice. Old rice requires more water to cook well and even then it's not as tasty as new crop rice. Sometimes the rice aren't sourced from Australia even though the brand SunRice is Australian.

          For SunRice brand, it's just safer to buy them in the 25Kg bags because they're Australian crop which is rated very highly and they haven't been left to get old and dry because they sell so well. SunLong long grain are very popular for the Asian commercial market for fried rice and SunWhite calrose rice is very popular for the economy sushi market.

          As for your parents $200 Tiger rice cooker, they can still go even higher end with a $400 Cuckoo (Korean) or Zojirushi (Japanese) Induction Heating Fuzzy Logic rice cooker :) I did and even though I'm probably getting 10%-15% improvement to the end result, I miss it even more when eating out where they use conventional cookers.

        • whats up skip on 12/08/2015 - 10:26

          @SpendLess:

          This would be your problem to start with.

        • SpendLess on 29/08/2015 - 09:36

          thanks and sorry for the late reply
          ill invest in a good cooker when i see a bargain :)

          what i find about the crap cookers is if u do 2 or 3 cups they are crap but if you do close to the max the rice is pretty decent.

      • rawm on 08/08/2015 - 16:02
        +1

        it's considered top-tier rice by the person who provided us with it, but we can't confirm that until we receive the shipment and test things out - not linked to this guy I hope! http://www.abc.net.au/news/2015-08-05/man-charged-over-sale-…

      • noshopping on 09/08/2015 - 10:13
        +6

        SPEAK TO A LAWYER BEFORE YOU PROCEED I guess this is an Asian brand of rice? I spoke to a friend who runs an Asian grocery store, the profit in these bags are about $4 each. So 1,100 bags x $4 = $4,400 profit, but I'm guessing as you imported these, it might be higher.. This is assuming you actually sell 1,100 bags of rice before it expires. Alot of people are highly wary of buying "FOOD" from a person with no retail shop presence. It would be kie buying milk from some Gumtree seller. Furthermore, there are massive risks with you selling this from your home. I'm not sure if you've run any risk analysis from this, but unless you have business insurance, the liabilities are massive. If some random Joe gets sick from buying a rice bag from you, you could be sued to oblivion. How would they get sick? Well if you store rice in a high-humidity environment, it creates aflatoxin "google it". It is one of the most deadly fungus in the world and causes liver failure. Every retail store that trades has some form of liability insurance they pay each year, usually its $20 million cover, this alone cost $1500-2000/year for a grocery store. If you import the food and sell it to grocery stores, that "might" be OK, since you would just act as a distributor. Best of luck OP.

      • rain on 10/08/2015 - 12:04

        10kg rice is approx $17-18 dollar not on sale, and as seen on the front page today $10.99 for 10kg Sun rice(IGA).
        You may have an issue with that, buying 2 10kg bags is still cheaper ($36= 18*2) than your rice and that isn't even taking into account an even slighter discount for buying in 'bulk'

        • am274 on 10/08/2015 - 20:11

          you are comparing apples to oranges. Good quality 20 kg Basmati rice would sell $60+, in asian grocery stores though, not supermarkets, and people buy it

  • aggregate on 06/08/2015 - 17:56
    +1

    http://apps.daff.gov.au/icon32/asp/ex_casecontent.asp?intNod…

    Check out DAFF import restrictions.

  • [Deactivated] on 06/08/2015 - 18:02
    +15

    Container: 3/10
    Container with rice: 10/10
    Thank you for your suggestion.

    • hahaboy on 09/08/2015 - 00:48
      +8

      reddit appears to be leaking.

  • chumlee on 06/08/2015 - 18:06
    +3

    You are best to wait for a bargain rice deal to be posted here

  • spychiatrist on 06/08/2015 - 18:13
    +14

    Do you know something we don't? Is the world ending or a nuclear strike heading our way?

    • Davo1111 on 06/08/2015 - 22:51

      a lifetime's supply of bland meals.

      • scrimshaw on 09/08/2015 - 18:09
        +2

        Rice wine / Sake powered hybrid cars

        • aim54x on 10/08/2015 - 09:24

          Sake could be lucrative….but basmati may not be the best rice to make it with (maybe a niche, speciality, product differentiation point)

  • altomic on 06/08/2015 - 19:14
    +34

    guess what's for dinner for the next 120 years?

    • silverrat23 on 06/08/2015 - 19:16
      +6

      Chicken Tonight?

    • Charity on 08/08/2015 - 01:21
      +21

      rice flavoured rice with rice and rice?

      • holdenmg on 08/08/2015 - 09:03
        +4

        Rice Wine or Rice Vodka.

      • [Deactivated] on 08/08/2015 - 19:21
        +4

        with a side of rice.

        • Serapis on 09/08/2015 - 07:55

          With rice mochi for dessert

        • Forfiet on 31/08/2015 - 03:52

          @Serapis: onigiri for snacks :)

    • Scrooge McDuck on 08/08/2015 - 12:05
      +20

      guess what's for dinner for the next 120 years?

      • Akki Rotti
      • Arroz Negro
      • Baked Rice
      • Bhat
      • Bibingka
      • Chao
      • Cơm tấm
      • Congee
      • Ddeok
      • Dirty Rice
      • Dolmas
      • Fried rice
      • Horchata
      • Jiu Niang
      • Juk
      • Kande Pohe
      • Kateh
      • Ketupat
      • Khao Lam
      • Lor Mai Ka
      • Lugaw
      • Lumpia
      • Maifun
      • Mochi
      • Nasi
      • Niangao
      • Nurungji
      • Onigiri
      • Pancit Bihon
      • Panta Bhat
      • Pilaf
      • Puffed Rice
      • Puso
      • Puto
      • Rice Bread
      • Rice Buns
      • Rice Cakes
      • Rice Pudding
      • Sarma
      • Scorched Rice
      • Steamed Rice
      • Tangyuan
      • Tapai
      • Yakimochi
      • Zongzi
      • Zosui
      • [Deactivated] on 08/08/2015 - 19:20
        +1

        You forgot one: bubur

    • Gaz1 on 08/08/2015 - 14:14
      +2

      rice, spam, spam, spam & rice (without the spam)?

  • Kawaii69 on 06/08/2015 - 19:22
    +4

    Thanks everyone for the responses, realized that it's not possible to store at a residence and is risky, so I'll rent out an appropriate storage facility.

    • Davo1111 on 06/08/2015 - 22:52
      +20

      I'm not sure this is going to be a money making venture. Once you account for importing fees + shipping + insurance + GST + customs fees + storage fees etc, you won't have much left. Also you need to account for shipping to the person, and your daily wage.

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