12
EXPORT
| Issue #20
EDA Office of Foreign Trade • Riverside County, California • USA
The top five things any new
importer or exporter should
be aware of when dealing with
an international shipment.
By Snehal B. Jardosh
1.
Custom Regulations and Tariff
All products shipped internationally are subject to customs regulations of the importing/exporting country.
Understand the commodity classifications of the goods and if they need any specific license to be exported
from or imported into a country.
2.
Shipping Cost and Mode of Transport
Shipping costs need to be checked based on whether the goods will be containerized (20 foot, 40 foot,
40
ft High Cube) as FCL (full container load) or LCL (less than container load) and in some case when
the goods cannot be containerized option of Break Bulk will be considered. Costs will vary significantly
depending if shipment is made via air or ocean.
3.
Transit Time
It is important to determine the date of delivery and plan the shipment accordingly. In international
shipments there are more chances of the shipment getting delayed. Certain commodities may take longer
time for custom clearance at destination.
4.
Insurance
Per international conventions that apply to all modes of transport carriers contracts limit carrier’s liability in
the event of the damage to the goods during transit. It is the responsibility of the buyer or seller per their
agreement to ensure that the goods are adequately insured during the transit period.
5.
Changes Anticipated
In the process of doing business in the existing international business environment the only constant thing
is change. As discussions, negotiations and finalizations of international deals may be spread over a few
months, check if there is any anticipated change in customs regulations pertaining to the goods that are
being shipped in the importing/exporting country or any carrier freight cost changes expected.
First shipment may be a learning curve and may take some time to sort out certain things but having a
shipping partner on your side can help will make things easier.
