The Common Measures to follow when undertaking Import or Export
August 23, 2024
When undertaking Imports or Exports the Shipper, Consignee, Importer or Exporter must ensure to take precautions and follow below to avoid mistakes:
- Before Signing any Contract ensure to confirm the legitimacy of the Buyer or Seller. Information could be available at the Country’s Trade Centre, the registration documents in the home country or Trade Memberships.
- Follow the rule of the land. Understand the importing country or exporting country’s rules and regulations with regards the product, any restrictions or import or export in that country from where you are buying or selling the product.
- Take proper guidance to understand Imports and Exports. Knowledge is Key. Undertake an Import Export Course or Speak to an expert on Imports or Exports.
- Pay special attention to the Incoterms of the Shipment. Be aware of the documentation associated with each Incoterm. Every Incoterm changes the cost of the transaction for both the Importer and the Exporter and determines who bears what cost.
- Selecting the correct Customs Broker is important. Incompetent service providers will increase the risk of losing money. If unsure, take the opinion of a second broker or speak to a friend or mentor already undertaking Import or Export.
- Ensure to use the correct HS Codes and Description of the Product. A wrong code could change the rules, documentation requirements, duties and taxes. It is always advisable to match the HS Code with the Import or Export with your service provider so that all are on the same page.
- Always take adequate insurance for the cargo whether inbound or outbound. Unforeseen incidents or accidents could cause additional burdens on the cost of the product.
- Ensure correct calculations of all costs. Especially pay attention to the foreign exchange rates for imports and exports. Remember to work out the cost based on your agreed incoterms. Keep in mind the exchange rate at which the bank will credit your proceeds when making the calculations.
- Pay attention to correct packing and packaging of the products. Also refer the rules in this regard with rules of the importing country or the nature of the products. Especially when using wooden crates or palletization of cargo or when cargo is Hazardous in nature.
- Choose the correct mode of transport depending on your cost, location of importing country and size of your shipment to ensure optimization of freight. Like non urgent cargo can move as loose cargo in containers via Sea instead of spending on airfreight.
