EXPORT â€“ AN OVERVIEW
1. What is the first step towards exporting?
Before exporting you need to honestly assess your export potential – both in terms of the readiness of your business (necessary traits, financial sustainability, perception of a business) and of your product or service. It’s essential to carry out detailed market research examining industry structure, the predicted demand for your product or service, competition, saleability and how you plan to fit into marketplace.
(Learn more about it: Start your global business â€“Getting started -Export â€“ an overview)
2. How can I protect my intellectual property in other countries?
Intellectual property (IP) protection becomes more complicated if you sell goods overseas. Patents and trademarks are only recognized and protected in the country of origin, so you will need to secure IP protection in each country you intend to sell into.
(Learn more about it: Start your global businessâ€“Getting started -Export â€“ an overview)
ARE YOU READY TO EXPORT?
1. What are the benefits of exporting?
Exporting can extend your market, boost your turnover, improve your business’ reputation and prevent you having too great a dependence on your country-based customers.
(Learn more about it: Start your global businessâ€“Getting started â€“ Are you ready to export?)
2. Am I ready for exporting?
It is sufficient to understand that export poses whole new set of challenges â€“ it is time and money consuming. Be sure you have the resources, such as finances and employees to take on extra work. You should have developed a complete export plan looking at all costs and risks involved. Take a planned approach and design what your export strategy is and remember to evaluate your potential customers and modify your product or service to suit overseas.
(Learn more about it: Start your global business â€“Getting started- Are you ready to export?)
3. How to assess export market opportunities?
You need to understand what overseas customers want, and what the competition is like. As well as local suppliers, you may be competing with other exporters from around the world. Also you need to evaluate the suitability and acceptability of products for the target market; in this case you need to reach the customers.
(Learn more about it: Start your global business â€“ Getting started – Are you ready to export?)
4. At what moment exporting goods become another country’s legislation subject?
As soon as your goods enter another country they become subject to that country’s laws. It means that they become subjects from countries border crossing.
INTERNATIONAL TRADE IN SERVICES
1. How can services be delivered internationally?
There are 4 different in ways which services can be delivered internationally, depending on the locations of the supplier and the customer: cross-border trade (both supplier and customer are in their own countries, while the service crosses the border), consumption overseas (the customer visits the supplier’s country, where the supplier provides the service), movement of individuals (individuals who will provide the service travel to the customer’s country), setting up overseas (the supplier establishes a presence in the customer’s country).
(Learn more about it: Start your global business â€“Getting started â€“ international trade in services)
2. What are legal issues for international services?
It’s important to have a clear contract. With trade in goods, attention often focuses on responsibilities for delivery, set out using internationally recognized Incoterms. Other issues, such as what is being supplied, are usually relatively straightforward.
(Learn more about it: Start your global businessâ€“Getting started â€“ international trade in services)
3. Is there any regulations and taxes for international trade in services?
Unlike goods, services do not have to clear through customs. But there are regulations affecting service imports and exports. For example most services can be exported or imported freely, though there are some restrictions. Also profits on exports are generally taxed in the same way as any other profits. If you have an overseas presence, this could mean that profits are liable both to national tax and to tax in another country. If so, you may be able to claim double taxation relief.
(Learn more about it: Start your global business â€“Getting started â€“ importing â€“ an overview)
1.Â What should I consider before importing?
Itâ€™s very important to consider in which way and when you will make payments for the goods or materials (e.g. the exchange rate might change after you’ve placed your order). Also you will have to consider transport arrangements and who pays for it, storage, documentation and insurance. What is more, you should consult with lawyer about many legal issues – drawing up contracts with your overseas suppliers, trading terms that you will have in the place of your suppliers, whether the imports will comply with legislation and who will make the customs declaration for you. Before importing you should make sure if license is mandatory to import your goods.
2.Â Â Â Â What are my legal responsibilities as an importer?
As an importer you have to check that the items you’re planning to import are allowed in and whether they need an import license. Also import restrictions may be operated by other government departments. Consider whether you’re liable, under the principles of product liability, for any harm caused by the imported items.
3.Â Â Â Â How to protect interests when importing?
If you’re importing directly – rather than through a third-party company that handles the process for you – you should always agree with the overseas supplier at the outset the language in which you want to communicate. This should help to avoid any costly misunderstandings.
(Learn more about it: Start your global business â€“ Getting started â€“ importing, an overview)
ENTERING OVERSEAS MARKETS
1. What are the different ways to enter the overseas markets?
There are four main ways to sell to customers in overseas markets. You may find you need to use more than one entry strategy, depending on the markets you target and the products you offer:
- Selling directly from the country
- Using an overseas sales agent
- Using an overseas distributor
- Opening operations in overseas markets
(Learn more about it: Start your global business â€“Getting started â€“ entering overseas market)
2.Â How to choose the right approach for entering overseas markets?
There is no â€žone size fits allâ€ť solution; you may decide a mix of these approaches is best for your business. Nevertheless, you should always consider the implications of each method.
PLANNING TO GO GLOBAL
Manage the risk of exporting
1. What are the risks of exporting?
Trading internationally presents extra risks and challenges, such as language and cultural differences, political instability, as well as currency and payment. Whenever you sell there is a risk that your customer fails to pay or, for example, you get sued for harm caused by your product. What is more, usually it takes longer to deliver goods overseas so it could cause some problems â€“ extra paying, losses, and expenditures and so on.
(Learn more about it: Start your global business â€“Planning to go global â€“manage the risk of exporting)
2. What is double taxation?
Double taxation can occur when a foreign country taxes your business as well as being taxed in your local country on the same income.
3. Government help for exporters
Is there a government support for exporting available??
For businesses at all stages of the export process, there is available governmet assistance to help you start, develop and promote in overseas markets.
(Learn more about it: Government help for exporters)
4. Ethical trading
What is ethical trading?
Ethical trading means looking beyond strictly economic objectives to consider the wider implications of your business decisions. Moreover it means that retailers, brands and their suppliers take responsibility for improving the working conditions of the people who make the products they sell. It is becoming increasingly important for those trading internationally.
(Learn more about it: Start your global business â€“Planning to go global â€“Ethical trading)
What are the benefits of using ethical trading?
Implementation of socially responsible policies can benefit not only environment and community, but also your business. By considering social and environmental objectives as well as your economic aims when trading overseas, you can:
- build sales (customers increasingly choose to base their purchasing decisions on more than strict financial factors)
- attract investment (ethically motivated investors grow in number)
- maintain staff loyalty and motivation (treating people fairly and offering them chances of development)
Â How can I protect the environment?
You can minimize your businesses impact on the environment and even help repair damage already done by implementing social development policies.
5. Are you ready to import?
Does importing require special skills or extra resources?
Yes! You need to understand customs procedures and make sure that you have the right paperwork when deliveries arrive. As well as you need to think about what resources you can devote to importing (researching overseas markets and managing overseas suppliers can be time-consuming and expensive).
(Learn more about it: Start your global business â€“Planning to go global â€“are you ready to import?)
6. Manage the risk of importing
Â Who is legally responsible if the goods are damaged when they arrive?
It may be the supplier’s responsibility, your fault, or caused by shipping or customs delays. In any case, it’s worth agreeing in advance how deliveries will be inspected and how problems will be handled.
Â What are the possible risks of importing? How can I reduce them?
Conducting business overseas always carries risks. The business culture may be different, or there may be different regulations that you aren’t aware of. The risk of confusion can be particularly high if your suppliers speak a different language. Different countries can also present other potential problems. For example, a country could suddenly introduce new export controls or suffer a natural disaster.
Market research is an important way of reducing these risks.
7. Manage overseas suppliers
What are the challenges of sourcing overseas?
New challenges are raised by the distances involved, by differences between countries, and by rules that govern international trading â€“ different national rules to be applied; Payment methods for international transactions are a bit more complicated; Shipping procedures are also more complex; Language differences including both communication and labeling materials.
(Learn more about it: Start your global business â€“Planning to go global â€“manage overseas suppliers)
What are the most important aspects in choosing an overseas supplier?
You need to get the right price and quality, while making sure the supplier can be relied upon to consistently meet high standards. If possible, visit the supplier. Look at their work and their production system. Find out as much as you can about the supplier by asking importers with experience in the market for information.
What are the methods of paying overseas suppliers?
There are four main methods for paying overseas suppliers for the goods you import from them – or for receiving payment if you’re exporting overseas: advance payment, letters of credit, documentary collection and open account trading.
(Learn more about it: Start your global business â€“Planning to go global â€“manage overseas suppliers)
Â Â What should be the basis of drawing up contracts with overseas supplier?
Your contract should make all aspects of the trading process as clear as possible – what will happen, when it will happen, and exactly what each party is responsible for at each stage.
8. International transport and distribution
How do I assess my business transport needs?
Various factors will influence your decision on which type of transport to use – including your business’ requirements, the destination country, and the type of goods you are importing or exporting. (Learn more about it: International transport and distribution)
When is it better to use the road transport?
The road transport is relatively low cost, the motorway network in the European Union is well developed while crossing national borders may be quick. (Learn more about it: International transport and distribution)
What are the advantages of using sea and air transport?
If your business needs to transport large quantities but there is no pressure to deliver quickly, shipping by sea may be suitable. Air transport can deliver items quickly over long distances as well as give you high levels of security for sensitive items (Learn more about it: International transport and distribution)
When would I need customs warehousing?
Customs warehousing may give to your business certain advantages. For example, it can enable you to delay the payment of import duty and VAT on imported goods, which can help with your long-term cash flow planning. (Learn more about it: International transport and distribution)
What should be taken into consideration when choosing rail transport?
Rail transport is a cost-effective and efficient way to move your goods, however, you will be dependent on the routes and timetables available – these may be limited in remote regions. (Learn more about it: International transport and distribution)
What documents should be filled in for international trade?
Trading internationally requires common documents to be filled in: The Single Administrative Document, The Standard Shipping Note (SSN), etc.Â (Learn more about it: International transport and distribution)
9. Researching overseas markets
What are the main steps in making an international market analysis?
It’s essential to research overseas markets before you start to market, promote and sell your product or service within them. The main steps are: analysis of the target countries and customers; analysis of overseas sectors and competition; research on overseas markets, practical research for export operations; finding business opportunities through trade visits, direct selling or other means (Learn more about it: Researching overseas markets)
10. Moving your goods
What packaging and labeling should I choose for my products?
The way in which you package and label your consignments should be an integral part of your businessâ€™ transportation system. These may be pallets, wrapping, wooden packaging, etc. (Learn more about it: Moving your goods)
What specific regulations apply to the movement of different types of goods?
Specific regulations apply to the movement of different types of goods: dangerous goods, fruit an vegetables, organic products, animal and animal-based products. (Learn more about it: Moving your goods)
What are the main types of movement-of-goods insurance?
It may be general cargo insurance, goods-in-transit insurance, rail insurance, etc. (Learn more about it: Moving your goods)
11. Moving goods by road
Why do I need a CRM note while transporting goods by road?
The CMR note is a consignment note that confirms that the carrier (ie the road haulage company) has received the goods and that a contract of carriage exists between the trader and the carrier. (Learn more about it: Moving goods by road)
12. Trading in the European Union
What are the benefits to companies trading in the European Union?
The EU market can be easier to access than other overseas markets as many of the trading practices, regulations and standards apply throughout the EU. (Learn more about it: Trading in the European Union)
13. Trading with Different Countries
What should I know if I plan to trade in China?
Planning exporting to China requires number of preparations: assessing the market, understanding local customers, learning about taxes, duties and many other aspects. (Learn more about it: Trading with China)
What should I know if I plan to trade in the USA?
If you can offer quality products or services, the US is a key market to consider. Similarly like with other countries you should explore the market possibilities, learn about taxes, duties, evaluate your competitors and many other aspects. (Learn more about it: Trading with the USA)
What should I know if I plan to trade in India?
Trading with India might be a new challenge for your company. Before starting exporting you should assess your possibilities in this market. (Learn more about it: Trading with India)
What should I know if I plan to trade with the Middle East?
The Middle East can provide lucrative openings to European businesses who wish to export to the area. (Learn more about it: Â Trading with the Middle East)
INTERNATIONAL PAPERWORK BASICS
1. Why should I consider IP and copyright whilst planning to trade internationally?
If you trade in a product or service and you want to stop other people exploiting your ideas, you should consider applying for intellectual property (IP) protection overseas as well as in your own country. (Learn more about it: 1. Intellectual property protection overseas)
2. What is the key documentation for international trade?
The right paperwork is crucial. Trading internationally requires from you the basic documentation be carefully prepared such as contracts, import and/or export license, certificates of the origin of goods and other. (Learn more about it: 2. International trade paperwork: the basics)
3. What are the most common payment methods for international trading?
Documentary collections and documentary credits are payment methods often used in international trade. (Learn more about it: 2. International trade paperwork: the basics)
1. What should be considered while planning international selling?
Before starting international selling you should understand overseas markets, local customers, demand for your product, competitors, etc. (Learn more about it: 1. Selling and promotion overseas)
2. What are regulations for distance and online trading internationally?
If you plan to develop distance or online selling you should comply with the basic regulations such as the Consumer Protection, privacy, data protection, Sale of Goods Act and other. (Learn more about it: 2. Distance selling and online trading)