Exporting is crucial for the country’s economy. As exports increase, businesses grow, which translates into higher profits for companies and, of course, the increase in jobs. But not all companies with export potential take advantage of these opportunities.
Exporting successfully involves inserting into the markets continuously and in a sustained manner, to increase the number of customers and diversify the risks. For SMEs, exports have become a way to expand their customer base, increase their sales and consolidate their business.
However, the outsourcing process of a company is complex, both logistically and legally. It is necessary to fulfill a series of requirements to export, to know the customs procedures and to have all the necessary documents to export.
It is necessary to identify foreign export markets for your products. Market research also helps to understand the economic, political and cultural factors that will affect your ability to successfully sell your product.
Each market has different demands, and these demands can change. Changes in technology, the lifting of trade barriers, and adjustments in import / export regulations, are all factors that can influence the level and direction of international trade. You may have to adjust your marketing and export strategies in the current situation.
As an exporter, it is necessary to focus on what your product does and identify what needs you will meet in the external market. It is also necessary to identify the strengths and weaknesses of your product compared to available competitive products. A product can be successful in the US, but that is no guarantee that it will have the same success in a foreign market.
The preparation of a product for export requires not only knowledge of the product, cultural differences and local customs, they may also require product modifications in areas such as brand, packaging and labeling. Awareness and sensitivity towards cultural differences are fundamental for the introduction of successful products.
The export may expose your business to laws and regulations that you may not be familiar with. Violation of these laws can have significant repercussions, from the government and the seizure of their products to a denial of their privilege of exporting to fines and prison sentences.
Before exporting your product to a foreign market, it is necessary to identify if the country is exporting and has no control over imports related to the sale of its product. These controls may include prohibitions, restrictions or import licensing requirements, and may be based on the country of origin, type of product, or product characteristics. Products that violate these controls are generally not allowed to enter the importing country.
Import documentation requirements and other regulations imposed by foreign governments vary from country to country. You have to be aware of the regulations that apply to your own operations and transactions.
You have to be aware of your responsibilities in regard to export laws. These laws are designed to ensure that exports only go to legally authorized destinations. For example, the US Foreign Corrupt Practices Act prohibits a US exporter from offering to pay a commission to an official foreign government, friend, or relative to obtain the business. The Anti-Boycott Act prohibits Americans from participating in foreign boycotts or taking actions that support such boycotts against US friendly countries.
As an exporter, it is necessary to understand the costs, responsibilities, rights and obligations that accompany the use of a specific Incoterm.
Each time you prepare a budget for a customer, the budget must include a term of the sale. If you cannot clearly identify the specific Incoterm to your client, it can lead to an overestimation or underestimation of the costs associated with the goods sold to you, which can ultimately lead to the loss of a sale.
The quality of the insurance in its export operation, the weather, the rough handling of cargo by carriers, long distances, and other common hazards make it important to determine the type, amount and extent of coverage required. Also, make sure you identify who will be responsible for loss or damage insurance while the goods are in transit.
If you quote your client and use the term CIF (short for Cost, Insurance and Freight ), you are responsible for obtaining insurance, and must include a certificate of insurance with all other required shipping documents that you send to the importer.
To select a payment method in an export operation, it is necessary to identify the main risk factors and then evaluate them to choose the method that suits you.
Remember : Getting an order is just one step in the process. You also have to make sure that you will receive the payment. Being paid in full is critical to success, and the level of risk in credit expansion. These are the two main risk factors that you need to consider:
Apart from the actual purchase order that you receive from your customer abroad, which is the most important document you will receive, you have to familiarize yourself with many other documents before exporting your merchandise; commercial invoice, content list (packing list), certificate of origin, Notebooks Ata, and CPD, bill of lading, CMR … and the own regulations of each country to introduce a merchandise.
Managing a freight forwarder as an agent on his behalf helps move the cargo from the point of origin to the final destination abroad. Transit agents are familiar with the rules and regulations of foreign countries, export regulations, import transportation methods and are related to documents related to foreign trade.
Transit agents who can assist in the preparation of price quotes for advice on freight costs, port charges, consular rights, special documentation costs, insurance costs and management costs. You can recommend the packing methods that protect the merchandise during transport or the procedures to have the merchandise packed in the port or put in containers.
Experience and constant attention to detail provided by the promoter are the key to success.