Tips to Starting an Import Export Business

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If you are thinking of getting into the import export business, there are a number of things you ought to take into account in order to have a smooth launch and continued success. Written below are some helpful tips:

1. There are many countries that have set up embassies and consulates that have a lot of tasks which include promoting the export of goods. Embassies are found in a country’s capital city, while consulates are found in main cities. Check out the Embassy’s official website to get more information.

2. Visit the department of taxation in your own country to find out about registration numbers or mandatory procedures. Take note that registration number is used in all related documents.

3. Learn about the requirements regarding licensing. Some nations do not impose licensing requirements. But if you plan to export or import goods that are considered high-risk like liquor, chemical, pharmaceuticals, and certain foods, you may be required to get licensing. Consider starting with low-risk items.

4. Many nations have trade barriers, called embargoes. For instance, U.S.A. has an embargo against Cuba. You ought to contact your government to know whether there are embargoes in the country you’re considering. Also, you have to contact the Embassy to know if there are any restrictions on the type of items you’re planning to export to another country.

5. Use a well experienced, reliable customs broker to accomplish the required paperwork for importing or exporting. While you can attempt to work on the documentation on your own, it may significantly delay shipments particularly when you lack knowledge about this aspect of importing or exporting. The custom broker’s professional fee is well worth it.

6. When you’re importing/exporting, it is important that you learn about all shipping solutions and customs handling solutions. Ask as many questions as possible and do some research. Companies have their own set of requirements, so be sure that you know what you’re getting into.

7. Have a good understanding about Incoterms. Incoterms are standard global trade definitions. Visit the website of the International Chamber of Commerce to learn the definitions of the terms:

8. Learn about Letters of Credit (L/C). Talk to your bank about it. L/C is the most commonly used payment mode when you are doing business internationally. It will significantly minimize the risk to your part, because the bank guarantees the release of fund to the merchandiser.

For continued exporting/importing success, work with a reputable, reliable freight forwarding firm and get products safe and in a timely fashion. Check out SEATRAM PTY LTD if you want to learn more.

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