The import and export industry is indeed big business. It offers unlimited opportunities for anyone who has enough knowledge and resources to challenge the tides and reap lucrative benefits which otherwise cannot be realized in other types of business.
However, running an international trading company is far from being an adventure full of rainbows and butterflies. Before you can be a successful importer or exporter, you will face a lot of challenges, which if you fail to recognize from the get-go, may cause your whole operations to cease to function. That being said, most of the pitfalls in international trade can be avoided.
One of the mistakes you should know early on is not investing in cargo insurance. So many importers and exporters ignore the importance of insurance for their shipments all because they want to save on cost. What they don’t realize is that many things can happen to their cargo once it is out of their sight – goods can get stolen, ships can sink, container units can fall overboard, and changing weather can cause irreversible damage to products.
Aside from failure to take insurance, there are other mistakes that could cost you your import and export business if you are not careful and prepared. To summarize, here are the key takeaways of the infographic below from Excelsior Worldwide Logistics:
- Lack of knowledge in import and export regulations.
- Hiring an incompetent or unexperienced customs broker.
- Not declaring the correct value in customs.
- Unfamiliarity with Incoterms
- Failing to insure goods
- Not verifying the legitimacy of the supplier or buyer of the product
Avoiding these mistakes is hugely crucial to maintaining a legitimate and streamlined import/export operations. To learn more about these common mistakes you need to avoid in import and export business, check out the infographic below:
Guest Blogger – Victor G. Hermosa
Victor G. Hermosa is a well-experienced Licensed Customs Broker. He started as a Principal Broker in one of the leading freight forwarding company in the Philippines. Currently, he is the owner and manager of Excelsior — a Total Logistics Company that handles International Air & Sea Cargo, Customs & Tariff Consultancy, Declarations of Duties & Taxes, and Customs Clearance.
Header photo: Prasit Rodphan/shutterstock.com