If you’re considering getting into the import export business, know that there are many things you need to consider carefully in order to have a good launch and continued success. Check out these tips:
1. Many nations have set up embassies and consulates that have a lot of tasks which include promoting the export of various products. Embassies are found in a nation’s capital city, while consulates are found in major cities. Check out their website to get more information.
2. Contact the taxation department in your country to know registration numbers or mandatory procedures. Note that registration number should be used in any relevant document.
3. Learn about any requirement on licensing. Some nations do not have licensing requirements. But if you plan to export or import goods that are known as high-risk like liquor, chemical, pharmaceuticals, and certain foods, you may need to get licensing. It is a good idea to start with low-risk items.
4. Many nations have trade barriers, referred to as embargoes. For instance, USA has an embargo against Cuba. You must contact your government to know whether there are any embargoes in the nation you are eyeing on. Also, you must contact the Embassy to know if there are any restrictions on the items you’re planning to export to a particular country.
5. Contact a customs broker to do the required paperwork for importing or exporting. While you can try to work on the essential documents yourself, it may significantly delay shipments particularly when you lack knowledge about such aspect of importing or exporting. The fee a custom broker receives is well worth it.
6. When you’re exporting/importing, it is vital that you check out all customs handling solutions as well as shipping solutions. Ask many relevant questions and do some research. Different companies have different set of requirements, so make sure you know what you’re getting into.
7. Understand the Incoterms. These are standard international trade definitions. You can visit the website of the International Chamber of Commerce to learn the definitions of the terms: www.iccwbo.org.
8. Learn about Letters of Credit (L/C). Talk to your bank about it. L/C is the most widely used payment mode when you’re doing business internationally. It will greatly minimize the risk to your part, because the bank guarantees the release of fund to the seller of the products.
Work with a reputable freight forwarding firm and get goods on time and in a safe manner. Simply check out SEATRAM Pty Ltd if you want to learn more.