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

      • QuickToThePointless on 08/08/2015 - 11:56
        +29

        You can pay yourself your daily wage in rice - so theres that cost taken care of

      • BartholemewH on 08/08/2015 - 18:58
        +1

        I use this calculation as the absolute minimum I could sell something for when working out if an import makes sense. This is with a warehouse and proper import relationships and easy access to low cost capital.

        FOB in AUD with buffer for Forex x 1.15 (freight) x 1.05 (duty) x 1.05 (lolo, demurrage, f%&king around) x 1.1 (freight in) x 1.xx (margin) x 1.1 (GST, N/A on this product).

        Edit: Margin % MUST take care of all fixed costs mentioned above and profit. Also the above doesn't include inspection costs associated with importing rice if any, the closest products we import are already processed and packaged so someone more knowledgeable can help there.

      • johnno07 on 08/08/2015 - 20:58
        +3

        You also need to factor in rice destroyed in transport (there will be some), rice destroyed by pests once it's here and held in a storage shed. And the fact that you probably won't sell it all.

        I am 99% sure this will not result in a decent profit.

    • HoracePinker on 10/08/2015 - 22:53

      Quarantine will kill this before it gets off the ground.
      Importing rice comes under quarantine restrictions (plant material). You will need a quarantine area (it must comply to strict regulations.. about a million of them), you will need permits for that area,you will need to have it inspected and have up to date pest control certificates. You will need to be a QAP (quarantine aproved person)it will set you back about 5 grand just for inspections etc if you pass first go. and then finally you will need an import permit.
      Or you can have it irradiated …. but then youre competing against non nuked food and people tend to be picky.
      Really do your homework and ring quarantine people to get advice and they will give it to you straight. If you bring a container a week in it might pay itself off and be profitable.

  • BobD on 07/08/2015 - 08:06
    +11

    One of my wife's sons used to always have money making ideas like this. He turned 50 this year and he has less money now than when he was 20. His last money maker was breeding alpacas. So is half the country it seems.

    This little scheme is no better. It will send you broke and cause all sorts of unforseen complications. Save your money and spend it on something you can enjoy.

    I just put on my tinfoil hat and unsubscribed. lol.

    • serpserpserp on 08/08/2015 - 16:49
      +2

      That is a great idea he had! I'll alpaca my bags and get in on this one!

    • cowiie on 08/08/2015 - 21:17
      -4

      One of my wife's sons

      You have more than one wife?

      • xmstercx on 11/08/2015 - 16:37
        +1

        No, his ONE wife has more than one son. If he said "One of my wives' sons" then you would be correct in asking that question.

    • dojomojo on 10/08/2015 - 07:32

      Should have started an Emu farm

    • EyyBanane on 10/08/2015 - 17:44

      Nothing related to the post, but how old are you sir, if I may ask? Just that I've always been curious of the OzBargain demographics.

    • [Deactivated] on 11/08/2015 - 10:50
      +2

      Good on him for trying. Some people just aren't happy living 9-5 and would rather fail numerous times than live the slave life.

      http://www.entrepreneur.com/article/228438

  • shortblack9 on 07/08/2015 - 08:45
    +24

    Ok… here's some free advice (I've worked with food regulations and importation)

    1. Become familiar with FSANZ
      (I'm talking… VERY familiar… know the rules backwards). Unfortunately, I can't give you comprehensive advice online, because it's highly involved. eg. do you have labelling information, is it compliant to Australian regulations, how is this to be sold… retail or wholesale?, what are the manufacturer recommended storage conditions? Are there Australian minimum requirements for storage? it's all very very detailed… mostly because it involves a food and anything that goes wrong with food usually means someone gets hospitalised. Consumer protection)

    2. In relation to food storage.
      It must comply to minimum standards here in Australia. It needs to be pest free… and maintained pest free after storage has begun. Common sense dictates that the area must be dry (to prevent bacterial or fungal contamination)… speak to a food technologist for specifics on rice storage.

    3. When making your customs declaration… just make sure you have ALL of your documentation proving your declarations on hand. Random inspections can happen, and if you declare something and can't prove it… you're screwed! As in big fines! Your broker is not responsible for this (check your contract with them… I guarantee they are not accepting liability for anything going wrong).

    4. In relation to the container.. check with your council. They may allow the container on your front yard for a short period of time for unloading purposes only. This is not uncommon even when building a house for a container to turn up with materials. That said… also check with your council regarding commercial food storage at a residential premises… you might find they have something to say about that.

    • [Deactivated] on 07/08/2015 - 09:18

      Great post. Pretty much on par with what my mother (food imports manager) said. I certainly don't envy anyone working in that field O_O

    • ESEMCE on 07/08/2015 - 09:29
      +10

      I'm guessing the aim is to sell out the back of a van, and therefore avoid points 1, 2 and 4 by "flying under the radar".
      Probably also aiming to fly under the taxman's radar.. This might be difficult to do as if I were the taxman, I'd be very interested in investigating how a family plans to "consume" 22 tonnes of rice and subsequently avoid paying GST and income tax.

      • Davo1111 on 07/08/2015 - 11:57

        big family

      • tyler.durden on 08/08/2015 - 09:58
        +2

        angeline jolie type of family

        • Dr Techno on 08/08/2015 - 10:06
          +1

          One kid from each continent ?

        • whirlpool_guy on 09/08/2015 - 19:49

          Your family

      • serpserpserp on 08/08/2015 - 16:51
        +1

        They are going to take it on holiday with them and claim it back from TRS. So they covers that.

      • Forfiet on 31/08/2015 - 03:57

        ozbargain family….

    • Kawaii69 on 07/08/2015 - 13:35

      Thanks a lot shortblack, great help!

  • Lancerx on 08/08/2015 - 12:31

    seriously ..I just need to know this question ….WHY?????

    You got a family of 100s or something?

  • Schpeltor on 08/08/2015 - 13:50
    +10

    There are rumors around fake rice available from Asia recently. If you bought your rice at a lower than usual price, there is a potential risk of something unusual with this batch of rice.
    Hope you have checked your supplier and verified the quality / source of the imported rice.

    Fake rice news article: http://www.elitereaders.com/speculations-about-fake-rice-fro…
    How to check fake rice ? -> http://mathrubhuminews.in/ee/ReadMore/13398/fake-rice-made-f…

    If quality of rice cannot be confirmed, I would recommend not selling them in Australia. Otherwise Police may knock on your door if someone complains.

    • ITveteran on 09/08/2015 - 18:43

      That's very true.

  • Ughhh on 08/08/2015 - 14:13
    +4

    I would rather pay more or even at full price for legit rice, rather than gambling with the possibility with spending most of my time in the toilet due to unsanitary, contaminated dodgy rice.

  • paul11 on 08/08/2015 - 14:28

    One of the best varieties of Rice which come from that part of the world, from where you are importing (Pakistan) is the "Basmati" rice. "Basmati" rice is grown in many parts of India and Pakistan. Some of the best brands and quality of "Basmati" rice can be easily bought from many local Indian/Pakistani grocery store for $15-25/10 Kg bag. I would suggest you go and check what they are selling and for how much and how its different from what you are importing ?

    • Kawaii69 on 08/08/2015 - 15:10

      Yeah thanks for the idea, that's definitely how we'll be generating our price by comparing it with others

  • Ozbargainite on 08/08/2015 - 15:05
    +9

    Rice is great if you're really hungry and want to eat two thousand of something.

    • WaywardOne on 09/08/2015 - 18:36
      +1
      • Mitch Hedberg (reddit's second favourite comedian, after Louis CK)
  • WaterMark on 08/08/2015 - 16:27
    +1

    Not to scare you or anything but there are fake rice in China. Assuming you are importing from there. Or they may substitute your good rice and mix it with a cheaper alternative and knock it off as all good.

    • [Deactivated] on 08/08/2015 - 19:22
      +2

      How the hell do you make fake rice?

    • ITveteran on 09/08/2015 - 18:45

      Lets just hope the other Asian countries are not as bad.

  • Hiroko on 08/08/2015 - 19:05
    +4

    safe to assume you are importing jasmine?
    i believe the jasmine market is quite huge.
    you'll be up for a bit of competition.
    not sure if this helps, but my family buy around
    15-20 x 20kg bags of jasmine on a weekly basis
    between a franchise of 3 restaurants.
    the delivered price is $45 a bag and is
    for what you would describe as "high-end" quality.

    • Kawaii69 on 08/08/2015 - 19:19
      +2

      Nah it's Basmati rice, not jasmine

      • Hiroko on 08/08/2015 - 22:53

        ah i see
        basmati is quite up there as well…
        wishing you guys all the very best

  • FittyFitty on 08/08/2015 - 19:20
    +2

    What's in the rice?

    • grasstown on 08/08/2015 - 20:41
      +8

      Precursors

  • [Deactivated] on 08/08/2015 - 19:24

    I recall a big issue with imported rice here in Australia and regarding the local growers here too.

  • Aceboy884 on 08/08/2015 - 21:03
    +1

    Good luck stacking the rice in a container,

    Even if you are allowed to sell, Surely putting this in the back yard will attract rodents

    If you are selling food, you will need food certificates

    Imagine if one of your bags dodgy and someone gets poisoned, oh my

  • p1 ama on 08/08/2015 - 22:55

    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.

    Sorry, but this has got to be one of the most silly business ideas I've heard of.

    You're planning to sell rice out of your house? How many people do you expect to buy rice from someone's house and on top of that, unless they're your next-door neighbour, the cost of going out of their way to get to your house as opposed to getting the rice from the supermarket when they're there is likely to be prohibitive.

  • [Deactivated] on 08/08/2015 - 23:11

    Good luck. On the plus side it's not your money, just your dads.

  • Hirolol on 09/08/2015 - 00:43
    +11

    I have the feeling OP isnt going to listen to anyones advise and go ahead and import it :P

    • jayzee on 12/08/2015 - 11:29

      You are probably right. I think the process already starts, rice is on the ship in!

  • [Deactivated] on 09/08/2015 - 00:51

    Can I buy 5 bags? We only eat Basmati.

  • [Deactivated] on 09/08/2015 - 05:04
    +10

    Pretty sure this will turn out to be a scam. You will receive rice that is of very low quality and pretty much be worthless.

  • [Deactivated] on 09/08/2015 - 05:17
    +25

    Shit and here I am feeling like an international man of mystery by buying a few things off Amazon using a freight forwarder

    • Davo1111 on 09/08/2015 - 10:48
      +10

      bro, you dont even import your own container of rice? amateur…

  • IdLikeToBeATree on 09/08/2015 - 08:12

    I am so confused.

    • Charity on 09/08/2015 - 23:12
      +4

      you are probably looking for the gaytime post

  • juventino on 09/08/2015 - 10:36
    +1

    do you provide delivery ? I sure as hell don't want to be buying rice from some stranger's house and carrying 20kg all the way home.

    Your dad is smokin' .

    • holdenmg on 09/08/2015 - 11:14
      +4

      UberRice™ lol

      • Jasongood on 11/08/2015 - 13:31
        +1

        Good idea!

  • zerocents on 09/08/2015 - 10:56
    +12

    Is your dad Kramer?

    "Jerry, I got a buddy who can get me 22 tons of the stuff, all I gotta do is work out how to get it here"

    "This sounds like a plan that could easily boil over…"

  • andyken on 09/08/2015 - 11:04
    +1

    Zombie Apocalypse coming guys..you have been warned!

  • FittyFitty on 09/08/2015 - 13:38
    +1

    I suppose the proof will be in the rice pudding…

  • bryans on 09/08/2015 - 14:49
    +2

    Don't worry what everyone says - just do it - https://www.youtube.com/watch?v=nuHfVn_cfHU

  • TheAviator on 09/08/2015 - 16:40
    +1

    Can't offer any advice other than it doesn't sound like the greatest business idea…

  • citybargainhunter on 09/08/2015 - 18:34
    +7

    So much negativity here, as long as the OP has done his research and it sounds like he has, let's not jump to conclusions. I for one would buy rice from someone's house if the price is right. Hell, I used get my haircut from a mate's brother who'd set up a barber shop in his garage. I am Asian so I don't eat a lot of Basmatic rice, I prefer Jasmine. But if the OP lives in an area where Middle Eastern/Indian/Pakistani people congregate, this might just work. Good luck OP with your venture, you never never try you never never know. Worse comes worst, you can always flock the rice here on Ozbargain, sell them at your cost or better yet provide a coupon code like RICEARSE or something, and I am sure people will jump on it. :)

    • whooah1979 on 09/08/2015 - 18:42
      +2

      hehe. that's right. get as or ec to promote it. it'll be gone in no time plus 1000 likes.

    • WaywardOne on 09/08/2015 - 18:42

      100% agree, however there are quite a few rules and regulations. It must be tempting to look at the wholesale price of (for example) $10/bag and think it would be easy to make a profit by selling it at $50/bag…

      …I do think if I were going to try importing something, I'd try it out with a non-food product first.

      • whooah1979 on 09/08/2015 - 19:15

        usd10 fob should be around aud20 landed. 1.1k bags will need about 27sqm storage. 27sqm is a about aud1.1k/month. add aud50 - aud100 per week for fuel and phone calls to promote and sales. op needs to sell at least 45bags/month just to break-even.

    • Ughhh on 09/08/2015 - 22:01

      Can you get food poisoning from dodgy hair cuts, or from incorrectly stored scissors?

    • noshopping on 09/08/2015 - 22:35

      I don't think it's possible to buy stored food on Gumtree or ebay right? There's probably a reason why.

    • QuickToThePointless on 10/08/2015 - 11:38

      as long as the OP has done his research and it sounds like he has

      Then why ask the ozbargain brains trust ?

      People who know all about the price of eneloops and dick smith price fluctuations surely know all about the difficulties in importing enough rice to feed a city right ;)

    • am274 on 10/08/2015 - 20:32

      and worst case even if you dont make expected profit or even lose some money, you have learnt some lessons and process which will deliver profit with your next import!

      • QuickToThePointless on 11/08/2015 - 13:53

        Yep. After this venture fails, the OP should try his hand at importing magic beans

  • mick123 on 09/08/2015 - 19:50

    1100 bags?
    Sounds like a rice epidemic

  • Fobsessive on 09/08/2015 - 20:53
    +2

    This is the worst idea ever. Better off finding an entry level job.

    • holdenmg on 09/08/2015 - 20:58
      +4

      such as Speaker of the House of Representatives. (Some Travel Req).
      Look in up on CareerOne.com.au

      • HoracePinker on 10/08/2015 - 23:12

        you can use a helicopter to transport rice on way back from overseas business trips!

  • johnode on 09/08/2015 - 22:42
    +1

    You'll probably need one of these:
    http://www.alibaba.com/product-detail/Professional-excellenc…

    Doesn't mention free shipping, but they will dispatch engineers for installation. Storage problem solved.

  • kickmiass on 09/08/2015 - 22:43
    +22

    Can i give you legitimate advice.. This is from someone who has experience in this field. I know why you have looked into it like this but you will find the costs are very high as a one off venture.
    My parents already import rice into Australia and what you are trying to do is very difficult. Rice is extremely competitive in Australia(probably 20-30 brands), my parents do this as a side project and they tell me it is steady but only because they sell them other food goods along with it (ie. purely convenience half the time)
    They also pay premium prices for higher quality jasmine rice so they can sell it, you'll find people are willing to spend a little bit more for quality over quantity.

    The price of rice is also extremely competitive, when you add all the fees and overheads you will find that you will probably make 2-3 dollars for ONE bag of rice.
    My parents can do this because they have all the necessary equipment and services where they can import rice into the country. Includes quarantines areas, inspections, customs, agents etc..

    My auntie also does the same thing, she has a very popular brand that has a reputation for 30 years, she bought the license for it only a few years ago and my parents tell me they make even less than them per a bag but they sell 6 times more rice bags than them. To give you an idea, 6 containers worth a month. My parents on average can get rid of about 1-2 containers a month but that's not to say they will always get rid of that many. Sometimes it will fluctuate based on the quality of that harvest.

    You will also find your excess stock you can't sell, forget about it.. you will end up losing 30% on the overall price because no one will want it. Restaurant owners for fried rice will be willing to take it off your hands though. (obviously at a much cheaper price)

    First thing is you will need an agent to sort out the container delivery.
    Then sort out the costs of tonnage to transport it.
    Customs, quarantine inspections(containers held there for a few weeks before delivery)
    Then like you said, need to sort out storage.
    Delivery is also a important factor, delivery is generally included in the price of rice when you sell as a wholesaler. Ie. you have to make the deliveries.
    I will GUARANTEE no one will come to pick up rice off you because there is no benefit to just pick up rice on their busy schedule
    Shop owners would rather do one trip where they can get it off a wholesaler who also sell other goods. They might pay a little more for rice but in the overall picture, it is much cheaper than making two trips.

    Also think about logistics of the rice, shop owners arent gonna buy 2 bags off rice off you.. they are gonna want like 10.. meaning you have to lug 10 bags of rice into their van even IF they come to your house or warehouse. if you have a warehouse, you will definitely need pallets or forklifts which is another cost.

    Personal opinion, unless you are serious as a business start up. Don't waste your efforts if its a one off thing.

    If you need more information, just reply to the post.

    • dojomojo on 10/08/2015 - 07:40
      +3

      From the OP's post, it seems like the rice is already on the ship :/

    • kickmiass on 10/08/2015 - 12:46
      +3

      Well… Hopefully they has a plan then.. in the grand scheme of things they will be holding stock for a long time if they don't have a market to sell it to. I would expect 2-3 months for it to at least pick up. Problem with that is, harvest for rice is couple months a year, sometimes even 2 times a year. Meaning the rice they already have is old stock. If he/she doesn't sell it all within 6-8 months. People who eat good quality rice everyday can notice older rice from a mile away.

      1100 bags is alot.. even if it was 1 household, it would take 1-2 months to go through a bag. Problem is it will be really slow because it is a new product. You have to wait for word of mouth and people trying the rice before telling their friends. Ontop of that, you have to wait til that household finishes their bag of rice before they buy a new one.

      No one will buy a bag of rice even if its cheap, people want to test the quality and you need to really push the product to customers. Rice is a funny product, most people want GOOD quality rice at a cheaper price. You don't see your average asian or middle eastern person buying bags of rice at woolies or coles. No offense to anyone but alot of the rice brands at the big supermarkets are not that good. They pretty much push average quality rice to people who eat rice on and off.

      My best advice after sorting out all the red tape, Is go to markets, drive around in a van to shops, give away small bags for free (1 kg bags?), cook the rice and let people try it. You need to push the product really hard. I highly suggest cooking it and letting middle eastern/asian supermarkets try the rice too. Even see if you can try cook the rice in front of the store and letting people try it when they go into the supermarket.

      • am274 on 10/08/2015 - 20:42

        I think OP is importing a market recognized brand

    • noshopping on 11/08/2015 - 01:27

      Spot on. If you sell to Asian customers, many of these customers WANT you to carry rice bags to their cars. Something you see in Asian grocery/supermarket stores, but not Western ones. So the fact you're asking them to goto your house to pick up a bag of rice, is a real big ask.

  • snook on 10/08/2015 - 10:38
    +2

    Unless you have a market ready for the rice to be sold to, I would go with a non food import.

  • cvas on 10/08/2015 - 12:32
    +1

    who remembers the rice exhibition in the Perth GPO? Different piles of rice showing different representations of population. 1 grain of rice = 1 person.

    http://www.weekendnotes.com/im/008/00/oatp111.jpg

    • QuickToThePointless on 10/08/2015 - 14:09
      +1

      This could be a pic of OPs living room…piles of rice everywhere, people coming in off the street to buy rice by the pocketful…

  • Twodogs on 10/08/2015 - 14:09
    +2 
    LONG GRAIN PARBOILED RICE 5%  BROKEN – USD 475 PER METRIC TON
LONG GRAIN PARBOILED RICE 10% BROKEN – USD 470 PER METRIC TON
LONG GRAIN PARBOILED RICE 15% BROKEN – USD 465 PER METRIC TON
LONG GRAIN PARBOILED RICE 20% BROKEN – USD 460 PER METRIC TON
LONG GRAIN PARBOILED RICE 25% BROKEN- USD  450 PER METRIC TON
LONG GRAIN PARBOILED RICE 30% BROKEN – USD 430 PER METRIC TON
LONG GRAIN PARBOILED RICE 35% BROKEN – USD 425 PER METRIC TON
LONG GRAIN PARBOILED RICE 100% BROKEN – USD 355 PER METRIC TON
LONG GRAIN RAW WHITE RICE 5% BROKEN – USD 465 PER METRIC TON
LONG GRAIN RAW WHITE RICE 10% BROKEN – USD 460 PER METRIC TON
LONG GRAIN RAW WHITE RICE 15% BROKEN – USD 455 PERMETRIC TON
LONG GRAIN RAW WHITE RICE 20%BROKEN – USD 445 PER METRIC TON
LONG GRAIN RAW WHITE RICE 25%BROKEN-  USD 435 PER METRIC TON
LONG GRAIN RAW WHITE RICE 100%BROKEN-  USD 350 PER METRIC TON
Super Kernel Basmati Rice Silky Double Polished, Max. 1% Broken, Color Sortexed $950 Per Metric Ton.
Super Kernel Par-boiled Basmati Rice (Sella) Silky Double Polished, Max. 1% Broken, Color Sortexed $1050 Per Metric Ton.
Long Grain PK-385/D98 Basmati Rice Silky Double Polished, Max. 1% Broken, Color Sortexed $750 Per Metric Ton.
Long Grain IRRI-9 Par-boiled Rice Silky Double Polished, Max. 5% Broken, Color Sortexed $550 Per Metric Ton.
Long Grain Par-boiled IRRI-6 Rice Silky Double Polished, Max. 5% Broken, Color Sortexed $460 Per Metric Ton.
Long Grain IRRI-6 Rice Silky Double Polished, Max. 5% Broken, Color Sortexed $450 Per Metric Ton.
Long Grain IRRI-6 Rice Single Polished, Max. 25% Broken $380 Per Metric Ton.
100% Broken Rice Silky Double Polished, Color Sortexed $360 Per Metric Ton.

    All Prices are Basis FOB KARACHI, Packed in Standard 50KGs nett Jute/PP Bags.

    • xuqi on 10/08/2015 - 15:14

      I love the 'Sella' variety. Hands down the best rice, as long as you're not into eating 'sticky' rice. :)

      Super Kernel Par-boiled Basmati Rice (Sella) Silky Double Polished, Max. 1% Broken, Color Sortexed

  • twosixfiveoh on 10/08/2015 - 15:13
    +1

    Strange that no one has mentioned that OP can ship it out to a rural location and start a rice wine brewery.

  • bargainslut on 10/08/2015 - 17:04

    Just a stab in the dark. Has anyone got any spare rice?

  • Tee34 on 10/08/2015 - 18:18
    +1

    What if some water gets into the container and then there's a hot day?

    Would you end up trying to sell steamed rice?

    • QuickToThePointless on 11/08/2015 - 13:54
      +2

      Add some vegemite - and branch out into sake production

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