The challenges of importing and exporting goods are very real. In today’s globalized economy, economies must be prepared to deal with the volatility of trading partners and unstable currencies. As a result, even the most well-planned trade transactions can become riddled with errors, which can quickly erode the gains that have been made. Importers and exporters are therefore always at risk of experiencing currency mismatches. These occur when a country’s currency moves in relation to another country.
This kind of situation occurs for a number of reasons. For example, depending on the type of product being imported or exported, the importer may have purchased their goods from a different country at a lower price than they paid for them in their own currency. In order to counteract this, exporters will usually hold back on selling a given good until a favorable rate has been achieved. By holding back on selling a particular good, they will ensure that the foreign country becomes more likely to buy their goods.
Apart from currency mismatch, here are other challenges that importers and exporters regularly face in the competitive world of commerce:
Finding the Right Licensed Customs Broker
There are numerous licensed customs brokerage firms that offer high-quality services to their valued customers, regardless of what type of products they sell. However, some licensed customs brokers are more skilled in handling clients of a specific industry, and choosing one that possesses vast knowledge about your products is definitely an advantage. If you are looking for ways to grow your business, finding the right licensed customs broker that can provide expert advice on how to clear your products on customs authorities is a must.
Planning a Foolproof Logistics Plan
Planning your overall logistics needs for shipping products can be a recurring headache. Since it is a critical factor in any trading business, you have to be extra careful at all times. It usually consists of several processes wherein a single glitch or error could result in dire consequences, such as delays in your shipment’s arrival. Ensuring your products arrive safely on time should always be on top of your priorities.
Calculating the Total Expenses
One of the most grueling financial hurdles in international trade is paying hidden charges. When shipping products abroad, you will most likely burden yourself with additional expenses, especially if you hired an unreliable licensed customs broker.
Some of these hidden charges in shipping include the following:
- Less than Container Load (LCL) charges
- Port fees
- Chassis fees
- Wait Time fee
- Customs Exams
Preventing Document Backlogs
These involve the delays that might happen during the documentation process, primarily if the importer or freight forwarder in charge provided inaccurate information about their shipment. Complying with the requirements properly will help eliminate all the unnecessary expenses you might bear in committing mistakes in documentation like penalties.
Adjusting to New Rules and Regulations
Regulations in the importing or exporting country can change at any moment, and this alone can sometimes become a nightmare for international traders. A worse-case-scenario would be like transporting an item to a country that suddenly imposes a ban on that very same item. That is why having a freight forwarder, and a licensed customs broker with a wide area of connections can help a lot in detecting these possible fluctuations in rules and regulations.
Excelsior Worldwide Freight Logistics conducts free orientation for those who are willing to learn. It is our advocacy to share our knowledge & experience worth more than a decade in the business. Visit our website today at www.excelsior.ph to learn more about our service.