The internet has leveled the playing field for small and large businesses looking to stake a claim in the global market. With the availability of international buyers and opportunities through online trade portals, many American small businesses are looking to export their goods to other countries. However, there are potential risks involved when entering this marketplace that a business owner should take into consideration, such as the import regulations of a foreign country, the hazards of overseas logistics, and the financial responsibilities of duties and taxes.

Many countries, including the United States, regulate the import and export of certain goods, such as agricultural products, pharmaceuticals, and military surplus equipment. It is important for potential exporters to research the laws and regulations of the target country before agreeing to any export deals to prevent delay of business operations or possibly face criminal charges. Familiarity with trade regulations also becomes increasingly important when exporting to non-democratic countries or governments that have strict trade laws. It’s best to speak to legal counsel before engaging with any foreign businesses in potentially illegal transactions.

Although the U.S. has led numerous campaigns for lower tariffs and increase trade with many of these governments, many still have import taxes and duties that are payable upon delivery at the port of entry. Sometimes, these rates may change before delivery, while the parcel is en route to the customer. The exporter is unaware of the increase which may detract from the profitability of the transaction, halting the parcel at port until the fee is paid. Therefore, it is important to have written agreements between exporter and importer and research foreign customs duties. Many of these risks and difficulties can be circumvented by outsourcing exports to qualified specialists, as they have professional experience in dealing with the many laws and regulations governing overseas trade.

For many exporters, getting the parcel to the customer is a risk on its own. Besides the lack of internal transportation infrastructure in some developing countries, there may also be limited ports of entry. Many times, shipping by boat is the most cost efficient, especially for larger packages that won’t fit on airway carriers. Goods are temporarily stored on-board in large containers with similar goods, or with goods that are bound for the same delivery point. Many times, the contents of the containers will shift, which can cause damage to goods. Although this underlines the importance of properly packaged goods, even a well marked parcel can be lost in transport. Shipping insurance is a definite requirement for exporters.

Risks are inherent in the global marketplace. Therefore exporters need to be aware of potential pitfalls and the solutions that are available. One of the best solutions to the above risks is to utilize the services of an outsourced export logistics service. Many of these providers act as intermediaries between the exporter and the foreign importer and offer experience in exporting and global shipping, as well as services to protect your interest such as export insurance, logistical planning, and real time reporting. Many of these firms keep up to date with export laws of foreign countries as well, and may be able to help you with any discrepancies or questions you have regarding foreign regulations. They can provide vital information on regulations, as well as acquire all necessary licenses, thus protecting businesses from the risks and inconveniences associated with overseas shipping.

Author Bio: Elymat Industries Inc. is a professional export outsourcing company. Serving the Military Aerospace Industry for 35 years, we specialize in obtaining US State Department and Commerce Department licenses to ship these products overseas. http://www.elymat.com/

Category: Business
Keywords: outsourced exports,export services,shipping,exporter,trade regulations,