Export Import Is a Lucrative Business That Needs Some Careful Planning

Globalization has presented vast opportunities for businesses for the people who have entrepreneurial skills. The export import business can be quite lucrative if it is done in the right way. However, there are certain major hurdles in the path of the potential entrepreneurs, such as:

The intricacies of export import business.

The plethora of rules and regulations that are imposed for safety of the consumers.

The protective stand of several governments for their local industries.

Red-tape barriers.

Delay in shipping due to dearth of adequate infrastructure of goods.

Custom clearance

Customs valuation

Lack of transparency in procedures and rules for overcoming bureaucratic problems.

Due to the above mentioned hurdles in export import business it is not surprising that many businesses are clueless about where to start. So, they just give up in sheer frustration. However, the smart business entrepreneurs who do not want to miss any opportunity of growth hire an import-export specialist who can guide them through the intricate issues.

Here are some useful guidelines that can help one securing a firm foothold in the export import industry:

A business plan is a great way by which one can give a sense of direction to one’s business. It is also a good yardstick to evaluate company performance. Hence, one should write a business plan.

The business plan should be executed properly too.

A good business plan should provide for unanticipated events and a sound solution for them. Contingencies should be made an integral component of a business plan.

The export import industry is regulated with special rules that can affect players in this market. So checking out the regulations and tax rules in one’s country is essential.

The market should be understood well for selling effectively.

In order to avoid missing an opportunity to sell it is essential to have available stocks where and when the customer wants it. Identifying and maintaining good business relations with a supply chain helps in getting a timely product delivery.

The products should be positioned well so that there can be timely deliveries.

The internet should be utilized because it is a quick, reliable and the surest medium to reach the customers. It is a cost-effective tool for facilitating sales, feedback and deliveries.

One should establish a proper customer feedback mechanism. The customers would definitely select those providers who respond to their requirements.

The company performance should be checked regularly. The business plan should be used to gauge performance and help to bring about necessary adjustments or changes. This makes certain that one is on the right track.

With the help of these guidelines one can easily overcome hurdles that exist in spite of the new avenues that have opened up because of globalizatio

Red Flag Warnings – Exporter-Importer Business Transactions

Use this Exporter-Importer Business Transaction Checklist to discover possible violations of the Export Administration Regulations and 10+2 Importer Security Filing Regulations.

Here is a list of Red Flag Indicators:

o The exporter, importer or its address is similar to one of the parties found on the Commerce Department and U.S. Customs and Border Protection lists of Blocked, Denied, Entity and Debarred Persons.

o The exporter, importer or purchasing agent is reluctant to offer information about the end-use of the item or it’s country of origin.

o The product’s capabilities do not fit the exporter’s or importer’s line of business, such as an order for sophisticated computers for a small restaurant.

o The item ordered is incompatible with the technical level of the country to which it is being shipped to or from, such as semiconductor manufacturing equipment being shipped to or from a country that has no electronics industry.

o The exporter or importer is willing to pay cash or accept cash for a very expensive item when the terms of sale would normally call for financing.

o The exporter or importer has little or no business background.

o The exporter or importer is unfamiliar with the product’s performance or characteristics.

o Routine installation, training, or maintenance services are declined.

o Delivery and shipping dates are vague, or deliveries are planned for out of the way destinations.

o A freight forwarding firm or third party is listed as the product’s exporter or seller on the shipping or commercial invoice.

o The shipping route is abnormal for the product.

o Packaging is inconsistent with the stated method of shipment.

o When questioned, the exporter or importer is evasive.

If you have reason to believe an exporter or importer is doing an illegal violation, you may report it to the Department of Commerce by calling its 24 hour hot line number: 1 (800) 424-2980.

 

70% of India’s exim trade to come from FTAs in next 2-3 yrs

More than 70 per cent of India’s exim trade would come from foreign trade agreements (FTAs) in the next two-three years, as over 12 countries would collaborate with India, a senior government official said.

This presently stood at 10 per cent and was expected to jump to 70 per cent in the next 2-3-years, the official said.

At present, India’s exim trade stands at $500 billion, of which exports stand at $200 billion and imports at $300 billion.

“In the next two-three-years, we will collaborate with a number of countries like Switzerland, Norway, Japan, Namibia, South Africa, Gulf states and the European Union, among others,” ministry of commerce, director (trade services division), Ajay Shrivastava, said here.

After signing an agreement with The Association of South-east Asian Nations (Asean) and Korea early this year, India is now expanding its business relations across the globe.

During the recent slowdown (only now beginning to mend), India had emerged as a hot destination for emerging economies for exports, he said.

“All these countries have started negotiations for an FTA to further expand their relationship,” Shrivastava said.

The commerce ministry official also said there was a huge potential to increase cross-border investment, as well as services exports, and it was essential that negotiations covered those areas, particularly IT, film and education sectors.

“The agreements are like stepping stones towards international integration into a global free market economy,” Shrivastava said.

Source: business standard

How to Start an Export Import Business

International trade is one of the oldest and the most popular form of business. Trade between countries existed centuries ago and has evolved over the years. It is now one of the most rewarding and satisfying industry.

To start your own export import business, it is very important to know the commodity you want to trade. Once you have decided the commodity, define an international market for your product. Then while tying loose ends at the domestic front as hiring experts on shipping, documentation, claims, incentives, packaging and acquiring the commodity, it is extremely important to market your product in the country you want to export your product to. Advertising along with market research
plays an important role too.

A whole lot of government consent and authorization is needed to start off with the shipping of the goods. Remember to have in place the license to export or import. There are taxes and duties that should be paid for.

Everything from food articles to cars, jets and even commodes and an incredible list of millions of products are bought, sold or distributed in some part of the world on a daily basis. This trading of goods is worth millions of dollars. A country tends to import products that they are not able to manufacture or produce efficiently and economically. They export goods that they can inexpensively manufacture.

Export and import of products has to be handled with complete knowledge of rules and legalities of the two countries. Certain trained individuals and experts handle the operational part as whole lot documentation and technicalities is required to ship the goods between two countries.

Familiarize yourself with rules, tax details and simply go ahead with your own export and import business now!