Import & export tips
Import and export is an integral part of global expansion, which is why it is so important to get it right. Firstly, let’s expand on what import and export really means. Importing refers to the purchase of goods or services and bringing them into one’s home country. Whereas, exporting refers to selling of the goods and services from the home country to a foreign nation.
When it comes to importing and exporting goods, it is important to develop an import or export strategy. An import / export strategy will locate profitable possibilities for your business, analyse the product demand around the world and determine the price of each individual product.
An effective import strategy must take into account all the factors you would consider in any form of purchasing. Additionally, you need to plan how you will deal with any challenges such as longer delivery times.
An exporting strategy decides how the company will export to a foreign country successfully. An export strategy will determine the pricing strategies, the products that will be sold, the market it will sell to, and how the product will be exported to guarantee a smooth and successful export.
So what are the most important things to keep in mind when importing & exporting? We explored and noted some of the most important tips from leading experts in the field. Here are a few:
Know the declared value of goods - The declared value of goods is determined on the day the shipment departs. This is why it is important to pay close attention to the currency rate at the time of declaration.
Capitalise on free trade agreements - Free Trade Agreements apply and change over time, depending on your country's trade relations. When importing from countries that have a current Free Trade Agreement with your country will save some cost.
Know the audit rules for importing - Documentation can be requested up to 5 years after the shipping took place so it is important to ensure safe storage of all documents in case you need to access them at a later date.
Know your incoterms- You need to be aware of all the costs, responsibilities, rights, and obligations that accompany the use of a specific intercom, which will lead you to know exactly what cost will be associated with the goods you are exporting, without any overestimation or underestimation.
Research the area you are exporting- Each country will have its own specifications and legal requirements so it is important to investigate exactly what is expected of you when exporting in specific countries to ensure a successful export.
Do your paperwork - As mentioned above, each country has its own specifications when it comes to import and export. It is important that you ensure you have all the correct and up to date licences and customs paperwork as well as understand what you do and don't need to avoid any unnecessary costs.