5 Risks in Exporting Goods and How to Avoid Them
1. In Transit
Say you’re an American or European company looking to export multi-tools to Sao Paulo, Brazil.
Not only do you have to make sure that the shipment departs and arrives on time and at the right place, with handlers there to assume responsibility of the goods once on Brazilian soil, but you must also take into account the possibility of damage, loss, and theft. Solid logistical planning and the services of a respectable company are therefore imperative in ensuring that things start off smoothly.
2. Border Control
Customs clearance, unforeseen tariffs, a check of compliance with local rules and regulations – these are just some of the problems that may appear before the goods even enter the market. To help facilitate the movement of goods across the border quickly and safely, employ the services of trade compliance and customs law consultants. Sound judgment can help you avoid the nightmare of having your exports held up at customs.
3. Covering All the Bases
You’ve already drummed out a meticulous payment plan and now the shipment has arrived, with a customer to pick it up. Now in a foreign land, what happens when a disagreement concerning exchange and interest rate fluctuations emerges? What happens when, worst of all, a customer refuses to pay? A legal team savvy in local protocol is not just a recommendation but a necessity.
4. Navigating Unfamiliar Territory
Not only do you need a distributor who can get the products on the shelves, but you need one who can get them flying off as well. To have a successful export product, you will need to take into account the cultural nuances, local preferences, and current trends of the destination country. A good idea and general market research is not enough; marketing and distribution agents are essential in offering expert opinion on everything ranging from creating the packaging to finding the right center of distribution.
5. Staying in the Game
The product may have arrived at the point of destination but the game is not over yet. Problems such as charges of faulty equipment may arise once the goods begin to circulate in the region. Furthermore, intellectual property (IP) laws may be shaky or lacking. For example, while IP rights may be officially acknowledged in China, the legal framework remains fragile and copyright violations continue. To better protect your competitive edge in an overseas market, find regional experts and consultants.