Hold it a bit, until you are through
with reading this post if you are a first time exporter. Yes, don’t start your
first export yet, if you do not understand the basic things needed to be up and
running an exportation business. Without proper guidance, you will be exposed
to a 90% possibility of losing your hard-earned investment.
At this point, there is a likelihood of
being unsure how to start, where to start from, what to export, what to put in place, or who
offers you professional guides. Above all, what happens to you or your
consignment should they arrive at their destination abroad. Most of all,
urgency? What medium should be best? Export by Air Freight? by Sea Shipping?
All aspect and stages matter a lot in
this business and deserve to be taken with all carefulness.
Would you find these essential tips
useful? Why not check it out later. This post was put
together as a follow-up post.
Remember, so much money is involved,
you don’t want to lose them cheaply. The challenging nature of importation and
exportation businesses cannot be over-emphasized.
That being said, it is imperative to
gird your loins well enough to avoid errors yielding as a result of
unpreparedness. It becomes important because this is an international business.
At such, it demands that everyone, whether experienced or first time exporters
have a deep understanding of all processes. You have to understand the market
you are exporting to. There are several rules and regulations to be adequately
acquainted with through consistent study.
We put together 8 essential points you
need to act on before you start export business.
Understand
All Export Documentation Required
In order to avoid delay in shipment,
avoid increased cost of shipping, or avoid a repeat in a supposed foregone
process of exportation, you must understand documentation requirement.
As an importer or an exporter, you can
never complete your business without going in contact with customs clearance.
Regardless of the varying countries, every country has a requirement that must
be met, checked and approved for movement. A wrongly labelled consignment,
intended for Canada, for example, whereas its destination is the US,
experiences a high chance of loss.
Before you start an export business,
you must be very careful with processes. You really need to acquire knowledge
and be well acquainted with the Harmonized System (HS) codes. It helps
importers and exporters classify their goods correctly.
Also ensure proper labelling of your
consignment, if you do not want to encounter a delay in shipping, avoid high
cost of shipping or repeat the processes over again, thereby wasting precious
time.
To avoid the unexpected, you most
especially need to pay attention to paperwork and include all necessary
documentation.
Check,
Organise And Manage The Export Data
Everything about freight forwarding has
gone automated. In the digital age, quite a lot is taking a new and better
turn. Understanding this is as good as knowing how to manage and organise your
export-related data, which can play a major role in running a successful
shipping business.
The ultimate effect of this adoption is
that with cloud-based data management, you have your data more properly stored.
This guarantees security which helps eliminate access to your data by
unauthorized persons, wielding off unwarranted damages.
This has drawn a thick line, placing
the manual paper-based process of data management in the place of extinction.
So, with the digital atmosphere, you are free from errors and time-wastage
processing data. It saves a lot of time, money and effort, while giving aid to
increase in productivity.
Interprete
The HS Codes Effectively
HS Code stands for Harmonized System
Code. It was developed by the World Customs Organization (WCO) as a
multipurpose international product nomenclature that describes the type of good
that is shipped. It became a tool for international trading owing to general
acceptability by organizations around the world.
Though it is tricky to interpret, even
as an experienced exporter, this does not pave the path for non-compliance, as
the Codes are overtly required for your export business.
The effect of inefficiency in knowing
or interpreting the HS Code engenders improper usage. This, as a result, can be
responsible for improper issuance of customs tariff, therefore increasing the
cost of the transactions. Apart from that, improper usage of the HS Code can
land a careless exporter in serious legal penalties for “non-compliance,
misleading or misdeclaration.” Most of the time, it leads to the seizure
of goods, thereby defeating the very purpose of the exporter’s business.
So, as a first time exporter, you’d
want to be careful and well informed. Involve an expert on the field, or
contact a qualified professional Customs Licenced Agent for advice on the
correct HS codes to use.
You May Also Like: 11 Key Functions of the Nigeria Export Promotion Council
Acquaint
Yourself With The Export Rules
Export Rules and Regulations vary by
countries. As a first time exporter, you need to have an understanding of the
legal and compliance regulations of the country(ies) you are dealing with. You
can find most of this information on the respective government organization’s
website.
You want to ensure quality foreign
trade relationship with a country, then it is essential that you get along with
their policies, and ensure to avoid any legal issues.
To ensure that, try to get a deeper
understanding of their legal and compliance regulations. You can find most of
this information on the respective government organization’s site. They
maintain a list of denied parties with which you can’t indulge in any export
business unless you have a valid license.
This Might Interest You: Most Common Mistakes Importers Make and How to Avoid Them
Check
The Applicable Tariff And Fees Beforehand
Whether you are an experienced or first
time exporter, once your consignment clears the customs in the destination
country, there are additional fees charged. These fees are known as Applicable
Tariff and Fees. There is a need to understand who pays for what charges
therefore, necessitating the importance of checking the applicable tariff and
fees ahead of time.
One other notable effect of this is
that it mostly increase the cost of your product and create a scene of
competitiveness in the market. This is why you must know your final cost,
weighed in along with the current exchange rates that are applicable for that
market.
The tariff rates on international
shipments usually depend either on the country’s bylaws or on the globally
recognized HS codes.
Conclusion
Exportation business in Nigeria is a
lucrative business. One of the reason is that the profit you are making from
the business is in hard currency (Dollars, Pounds or Euro). The problem here is
that some people want to go into exportation business but they do not know the
product they can export apart from the oil-related product or where to export
and how they can export this product in other to make profit.
As a first time exporter, you won’t
want to begin your journey recording losses as a result of limited information
or inadequate guidance. There is actually no need starting off without first
acclimatizing with industry best standard. The above points are one of,
first things to put into consideration, to familiarize with the entire process
of exportation business.
See This: Shipping from China to Nigeria
Contact Bowagate Global Limited Today
Want to learn more about Sea Freight Shipping, Air Freight Shipping? Or you wish to talk to us about your
Exporting your next consignment?
Give us a call: (234) 814 7068 472 during business hours or
send us an email via info@bowagateglobal.com.
Bowa Gate Global Limited offer
Affordable, very fast (swift) and reliable quality cargo services that include
Import, Export, Freight, Clearing/Customs Duty Brokerage, Groupage Freight, Warehousing, Consolidation, Air Freight Consolidation, Shipping
Globally, Door to Door Freight Shipping, etc.
Request a Quote here. For more information, you may use our contact
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