11 Documents Required for Exporting

 You’ve heard people talk about how to do the sexy part of exporting—the research, the schmoozing, the travel and all the marketing and sales stuff that people think about when they think about the glamour of international trade.

But what I want to talk about is the not-so-sexy part of exporting: the basic export documents required for international shipping. It’s the stuff you need to do—and do correctly—to successfully deliver goods and make money. I’d argue that this not-so-sexy part of exporting is more important than the sexier side but maybe that’s just because it’s what I’ve been focusing on for more than 5 years.

With that in mind, here are 11 standard shipping documents for export that you need to understand in order to be successful.

Proforma Invoice

Commercial Invoice

Packing List

Certificates of Origin

Certificate of Free Sale

Shipper’s Letter of Instruction 

Inland Bill of Lading

Ocean Bill of Lading

Air Waybill 

Dangerous Goods Forms

Bank Draft

Learn more about the dozens of exporting forms you may need to complete in order to ship your goods. Download The Beginner’s Guide To Export Forms.

1.Proforma Invoice

In a typical export exchange, everything starts when you receive an inquiry about one or more of your products. That inquiry may include a request for a quotation.

If the inquiry came from a domestic prospect, you probably have a standard quotation form to use. However, in an international transaction, your quote would be provided as a proforma invoice. That’s because your international prospect may need a proforma invoice to arrange for financing, to open a letter of credit, to apply for the proper import licenses and more.

A proforma invoice looks a lot like a commercial invoice, and if you complete it correctly, they will be very similar indeed. A proforma invoice specifies the following:

The buyer and seller in the transaction.

A detailed description of the goods.

The Harmonized System classification of those goods.

The price.

The payment term of the sale, which would typically be expressed as one of the 11 current Incoterms.

The delivery details, including how and where the goods will be delivered and how much that will cost.

The currency used in the quote, whether it’s U.S. dollars or some other currency.

Be sure to date your proforma invoice and include an expiration date. There can be a lot of volatility in the export process, so minimize your risk by setting a specific time frame for your quote.

2. Commercial Invoice

Once you’ve sent a proforma invoice to your international prospect and received their order, you need to prepare your goods for shipping, including the paperwork that must accompany the goods. Of those documents, the commercial invoice is one of the most important.

The commercial invoice includes most of the details of the entire export transaction, from start to finish.

I often get questions from people who look at this sample commercial invoice and wonder why it looks so different from the invoices their company uses for domestic orders. Keep in mind that the invoices you create from your company’s accounting or ERP system are accounting invoices used to get paid, not export invoices.

The commercial invoice may look similar to the proforma invoice you initially sent your customer to serve as a quote, although it should include additional details you didn’t know before. For example, once you have the commercial invoice, you probably have an order number, purchase order number or some other customer reference number; you may also have additional banking and payment information.

Make sure to include any relevant marine insurance information and any other details that will ensure prompt delivery of the goods and full payment from your customer.

3. Packing List

An export packing list may be more detailed than a packing list or packing slip you provide for your domestic shipments. It may be used in the following ways:

Your freight forwarder may use the information on the packing list to create the bills of lading for the shipment.

A bank may require that a detailed packing list be included in the set of documents you present to get paid under a letter of credit.

Customs officials in the U.S. and the destination country may use the packing list to identify the location of certain packed items they want to examine. It’s much better that they know which box to open or pallet to unwrap rather than needing to search the entire shipment.

The packing list identifies items in the shipment and includes the net and gross weight and dimensions of the packages in both U.S. imperial and metric measurements. It identifies any markings that appear on the packages, and any special instructions for ensuring safe delivery of the goods to their final destination.

If cargo is lost or damaged, a packing list is required to file an insurance claim, and it is also used if there is a disagreement between the carrier and the exporter regarding the weight or measurement of the cargo.

4. Certificates of Origin

Some countries require a certificate of origin to identify in what country the goods originated. These certificates of origin usually need to be signed by some semi-official organization, like a chamber of commerce or a country’s consulate office. A certificate of origin may be required even if you’ve included the country of origin information on your commercial invoice.

Usually a chamber of commerce will charge you a fee to stamp and sign your certificate or require you to be a member of the chamber. You’ll need to deliver a completed form to the chamber office where they will stamp and sign it for you.

More and more companies are foregoing the time-consuming process of relying on expensive courier services or taking the time to hand-deliver a certificate of origin to a chamber of commerce for certification and are relying on electronic certificates of origin (eCO) for their shipments. An eCO is often quicker to turn around, allows you the option of delivering the certificate electronically to the importer, and can be registered with the International Chamber of Commerce to provide added credibility.

Country-Specific Certificates

In addition to the generic certificate of origin form, there are also country-specific certificates of origin. The United States currently has signed 14 free trade agreements with 20 different countries in which U.S. goods are eligible for reduced or zero duty rates when imported into those countries. Some free trade agreements, including the United States-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), cover multiple countries, including the U.S. In our article When to Use a Certificate of Origin Form for Your Exports, you’ll find links to country-specific certificates. 

On July 1, 2020, the United States-Mexico-Canada Agreement (USMCA) replaced the NAFTA agreement between the three countries. You’ll find the differences between the two free trade agreements in the article NAFTA vs. USMCA: The North American Free Trade Agreement and the U.S.-Mexico-Canada Agreement.

5. Certificate of Free Sale

Sometimes called a “Certificate for Export” or “Certificate to Foreign Governments,” a Certificate of Free Sale is evidence that goods—such as food items, cosmetics, biologics or medical devices—are legally sold or distributed in the open market, freely without restriction, and approved by the regulatory authorities in the country of origin (the United States).

A Certificate of Free Sale is used when you are registering a new product in a country. You’re essentially informing the customs authority in that country, “This is a new thing I’m going to start importing, and here are my support documents that confirm this product(s) is legal to sell in the country of manufacture.”

If your international customer requests a Certificate of Free Sale, you can easily apply for a certificate online (there’s no cost or obligation for registering).

6. Shipper’s Letter of Instruction

One of the most important people you will work with in the export process is your freight forwarder, who usually arranges the transport of your goods with a carrier and helps ensure you’ve taken care of all the details.

Depending on your agreed-upon terms of sale—remember, that’s typically the Incoterm you choose—either you hire a freight forwarder to work for you, the exporter, or, in the case of a routed export transaction, the buyer hires a freight forwarder.

Regardless of who hired the forwarder, it’s important you provide a Shipper’s Letter of Instruction (SLI) with all the information needed to successfully move your goods. (Here are several good reasons why a letter of instruction is necessary.)

I often describe the SLI as a cover memo for your other export paperwork. Depending on whether or not the forwarder works for you, the SLI may include a limited Power of Attorney, providing authority to act on your behalf for this shipment. Learn more about how to fill out an SLI here.

AES Concerns

Depending on who hired the forwarder, the SLI may also grant the forwarder permission to file the export information electronically through the Automated Export System (AES). Most exports valued at more than $2,500 per item must be submitted to customs via AES, which makes filing through AES an important consideration for many exporters.

If the freight forwarder is hired by the buyer, then the forwarder typically does the AES filing. Even if you, as the seller, hire the forwarder, you may pay the forwarder to do the AES filing on your behalf.

In either case, even if you aren’t doing the AES filing yourself, you are legally required to provide certain data elements to the forwarder for filing purposes; this is usually done via SLI. As an aside, I strongly believe that you, as the exporter, should almost always be the party that does the AES filing—even in a routed export transaction where the buyer picks a forwarder.

It’s simple to file the documents needed for shipping through AES, and doing it yourself gives you more control over the process. More and more of our clients are assuming that responsibility for every export shipment for just that reason—get a step-by-step guide to filing here.

However, I understand that many companies do rely on a freight forwarder for their AES filings, so an accurately completed SLI is very important.

7. Inland Bill of Lading

An inland bill of lading is often the first transportation document required for international shipping created for your export. It can be prepared by the inland carrier or you can create it yourself. It’s a contract of carriage between the exporter and the shipper of the goods that states where the goods are going; it also serves as your receipt that the goods have been picked up.

In an international shipment, the inland bill of lading is not typically consigned to the buyer. Instead, it is consigned to the carrier moving the goods internationally or, if not directly to the carrier, to a forwarder, warehouse or some other third party who will consign your goods to the carrier when ready.

8. Ocean Bill of Lading

If your goods are shipping by ocean vessel, you’ll need an ocean bill of lading. An ocean bill of lading can serve as both a contract of carriage and a document of title for the cargo. There are two types:

Straight Bill of Lading

A straight bill of lading is consigned to a specific consignee and is not negotiable. The consignee takes possession of the goods by presenting a signed, original bill of lading to the carrier.

Negotiable Bill of Lading

A negotiable bill of lading is consigned “to order” or “to order of shipper” and is signed by the shipper and sent to a bank in the buyer’s country. The bank holds onto the original bill of lading until the requirements of a documentary collection or a letter of credit have been satisfied.

9. Air Waybill

Goods shipped on a plane require an air waybill. It is a contract of carriage between the shipper and the carrier that is distributed by the International Air Transport Association (IATA). Unlike an ocean bill of lading, an air waybill cannot be negotiable.

The purpose of an air waybill differs from the purpose of a bill of lading:

An air waybill is a receipt of goods; the carrier or agent sends it in order to show the place of delivery.

A bill of lading is a document of title to goods. It is a receipt by the shipping company with an agreement to deliver the goods at the destination only to the party the bill of lading is consigned to.

10. Dangerous Goods Forms

If your products are considered dangerous goods by either the International Air Transport Association (IATA) or the International Maritime Organization (IMO), you need to include the appropriate dangerous goods form with your shipment. Shipping dangerous goods or hazardous materials can be tricky. Before you do it, the appropriate people at your company need to be trained to properly package, label and document these shipments.   

The IATA form—the Shipper’s Declaration for Dangerous Goods—is required for air shipments. There is a different version of the form for ocean shipments. Again, these forms need to be completed by someone who has been trained to handle dangerous goods shipping.

11. Bank Draft

A bank draft is an important part of the international sales process for transferring control of the exported goods from the seller in exchange for funds from the buyer. It is often called a documentary collection, because the seller attaches various documents to a bank draft and a cover letter.

Usually the seller’s bank will send the bank draft and related documents via the freight forwarder to the buyer’s bank or a bank with which it has a relationship in the buyer’s country. When the buyer authorizes payment for the goods, the buyer’s bank releases the documents to the buyer and transfers the funds to the seller’s bank.

The bank draft may or may not include a transmittal letter, which includes details of the bank draft transaction, including the types of additional documents that are included and payment instructions.

Contract : Meaning & Scope

What is the meaning of contract?

Meaning of Contract: – A contract means an agreement, which is enforceable by law. An agreement consists of reciprocal (mutual) promises between the two parties. In the case of contract each party is legally bound by the promise made by them. A contract is legally enforceable when it meets the requirements of applicable law.

A contract or an obligation to promise may arise in the following ways: –

By Agreement and Contract

By Standard Form Contract; and

By Promissory Estoppel.

What is an Agreement?

Meaning of an Agreement: – An Agreement is a promise between two entities creating mutual obligations by law. According to section 2(e) of the Act, every promise and every set of promises forming the consideration for each other is an agreement. In an agreement, there are promises from both the sides. All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.

For Example: – ‘A’ promises to deliver his watch to ‘B’, and in return ‘B’ promises to pay a sum of Rs. 2,000 to ‘A’. There is said to be an agreement between ‘A’ and ‘B’.

What is the definition of contract?

Definition of Contract: – Contract is a promise enforceable by law. The promise may be to do something or to refrain from doing something. The making of a contract requires the mutual assent of two or more persons, one of them ordinarily making an offer and another accepting. Contract is an agreement or set of promises giving rise to obligations that can be enforced or recognized by law.

According to section 2(h) of the Indian Contract Act, 1872, contract is an agreement enforceable by law. An agreement becomes a contract when it satisfies all the essentials of a valid contract mentioned in Section 10.

How a Contract is formed?

Contract is formed in 3 steps given below: –

Offer + acceptance = Promise

Promise + consideration = Agreement

Agreement + enforceable by law = Contract

What is the nature of contract?

The nature of contract is that it’s the branch of law which determines the circumstances in which promises made by the parties to a contract shall be legally binding on them. It does not lay down the duties and responsibilities which the law will enforce but It consists a number of limiting principles, subject to which; the parties may create rights & duties for themselves which the law will upload.

Nature of contract, a contract is an understanding enforceable at law, made between two or more persons, by which rights are acquired on the one side to acts or forbearances on the other. To make an agreement which results in a contract, there must be an offer and an acceptance; and to the promises which stem from the offer and acceptance the law attaches a binding force of obligation.

What are the essentials of a valid contract?

Essentials of a valid contract are as follows: –

Two Parties: – A valid contract must include at least two parties identified by the contact. One of these parties will propose the offer and the other party will eventually accept it. Both parties should have legal existence, e.g. must be companies, schools, organizations, etc. or natural persons.

Agreement: – A contract is initially an agreement when the person to whom the offer is made indicates his acceptance to it. There is an agreement that is the foundation of a contract. 

Free Consent: – The parties must agree on the same thing in the same sense and at the same time. An agreement without consent is not legally binding. The parties are called to consent when they agree on the same thing in the same sense; moreover, the parties to the contract must have free and genuine consent to constitute a valid contract i.e., not to be obtained by misrepresentation, fraud, undue influence or mistake. If the agreement is not free, the contract is void.

Intention to create a Legal Relationship: – There should be an intention by both parties to form a legal relationship and to bind themselves legally as a result of such agreement. Thus, agreements of a social or domestic nature are not contracts, as the parties do not intend to have a legal relationship.  For Example: – where two parties agree to move together, a legal contract will not amount.

Contractual Capacity: – The parties to the agreement must be able to enter into a valid contract. According to the Act, every person is capable of entering into a agreement, if he or she: –

is of the age of majority;

is of sound mind; and

is not disqualified from contracting by any law.

Consideration: – An agreement by an incompetent person is not valid. A valid contract should be supported by consideration. The idea means “something in return”. It can be cash, kind or an act. It can be past, present or future. The idea must be genuine and valid.

No Unlawful Considerations: – According to the Act, the consideration of an agreement is called unlawful if: –

it is prohibited by law,

it is of such a nature that, if allowed, it will defeat the provisions of any law,

it is fraudulent,

it includes or means injury to the property of the person/other, and

the court considers it immoral.

Lawful Consideration: – Something in return is a consideration. In each contract, the agreement must be supported by consideration. It must be valid and genuine.

Lawful Object: – Section 23 of the Indian Contract Act, 1872, The consideration or object of an agreement is lawful, unless it is forbidden by law; or is of such a nature that, if permitted, it would defeat the provisions of any law; or is fraudulent; or involves or implies injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy. In each of these cases, the consideration or object of an agreement said to be unlawful. Every agreement of which the object or consideration is unlawful is void.

What is the scope of Contract?

The scope of the contract defines all aspects of the document. Contracts have different forms, and the amount involved ranges from small to large amounts. Some contracts last for years while others have shorter deadlines. The materials found in contracts also vary depending on their purpose.

There are many aspects of commercial law, and sometimes it is difficult to define all areas. Typically, commercial law practice involves human research as it relates to, but is not limited to, contracts, sale of goods, taxation, insurance, and rental.

The identification phase provides a basic scope of the contract. Some projects have different development and management affiliations that lie under different scopes of a contract. This means that the obligations or services go toward other parties.

For instance, a project involving a hospital might include a condition on clinical services. If the hospital transfers the clinical service to a private partner, the hospital must decide to include other services, such as cleaning and catering, in addition to its maintenance services. The hospital must also determine what services to include in the contract’s boundaries.

There is also expertise in contracts, such as: –

Membership for a club or

Domestic or marriage contract

Unformed contract

Fully executed contract

What is a Void Agreement?

Meaning of Void Agreement: – According to Section 2(g), of the Indian Contract Act, 1872, an agreement which is not enforceable by law is known as void agreement. An agreement that was void from the beginning is said to be ab-initio. For example: – An agreement by a minor is considered as void agreement.

Agreements without consideration are also void. An agreement which impose any restrictions on marriage and an agreement that impose any restrictions on trade.

What is a Voidable Contract?

Meaning of Voidable Contract: – According to section 2(i), of the Indian Contract Act, 1872, an agreement which is not enforceable by law at the option of one party and not at the option of other then that agreement is voidable. In a voidable contract, one party can be bound by the contract terms while the other party has the right to change their mind.

If the agreement is made without the free consent of one party then that person can avoid the contract. If such a party does not avoid the contract, then the contract remains valid, but if party prefers to avoid the contract, then the contract will become void.

For example: – If the consent is obtained by following ways the contract will be considered as voidable at the party whose consent is obtained so by Coercion, Fraud, Undue influence or Misrepresentation

What is Void Contract?

Meaning of Void Contract: – Section 2 (j) of the Indian Contract Act, 1872 defines Void Contract as a contract that no longer remains a valid contract and cannot be enforced in the court of law. Such contracts do not have any legal effect and cannot be enforced by either party.

Void contracts are valid, when they are entered into, as they conform to all the conditions of enforceability, laid down under section 10 of the act and are binding on the parties, but later on becomes void because of impossibility to perform.

Such contracts becomes unenforceable in the eyes of law due to: –

Supervening impossibility

Change of law

Subsequent Illegality

Repudiation of voidable contract

Contingent contract etc.

What are Void and Voidable Contracts?

The main difference between the two contracts is that a void contract cannot be performed under the law but a voidable contract can still be performed, until it is avoided by one party.

With a void contract, it’s invalid from the very beginning. It doesn’t require one party to back out or challenge its validity. In this case, neither party can enforce a void contract since it’s viewed as though the contract never existed. With a voidable contract, it doesn’t become invalid until one party asserts a legal reason for canceling or revoking it. This means without one party raising a legal objection, the contract would remain valid.

Contracts that are no longer enforceable become void. If one party uses a tactic like fraud or coercion, the contract will become voidable as well. With a void contract, the contract can’t become valid just by both parties agreeing, as you can’t commit to doing something illegal. Voidable contracts can be made valid if the party who isn’t bound agrees to give up their rights to rescission.Voidable contract is valid until it has been avoided, but becomes void only if and when it is avoided.

Key Differences Between Void Agreement and Void Contract

The following points are the difference between void agreement and void contract is concerned: –

• A void agreement is one, which according to law is neither enforceable nor it creates any legal consequences. The void contract, on the other hand, is a contract which is valid at the time of formation but becomes unenforceable, due to impossibility or illegality.
• A void agreement is void since it has been created. As against this, a void contract is valid at the time of creation but later on becomes void.
• A void agreement is never valid, whereas a void contract is a valid contract, till it does not lack enforceability.
• A void agreement is void due to the absence of one or more necessary elements that result in a contract. On the contrary, a void contract is one that becomes void due to the impossibility of performance.
• The void agreement does not satisfy the prerequisites of a valid contract, and because of this, it is considered as void. Conversely, the void contract is one that fulfils all the requirements of a valid contract, but cannot be enforced due to unexpected circumstances, thus becomes void.
• Restitution or restoration is not granted in the case of void agreement, although in certain circumstances, restitution is permitted on equitable grounds. On the contrary, restitution is granted to the concerned party when the valid contract, eventually becomes void.

What are Illegal agreements?

Meaning of Illegal Agreements: – An illegal agreement in contract law is a contract that was made for an illegal reason and is consequently against the law. If the content of the agreement causes the parties to perform illegal actions, then the contract is illegal. There are certain agreements which are illegal in the sense that law prohibits the very act, doing of which is considered as illegal.

For example: –

an agreement to commit a crime or a tort.

an agreement to defraud public income.

Such an agreement are opposed to public policy. And the law prohibits the making of such agreements. An illegal agreement may be distinguished from a mere “void” agreement which may not be opposed to public policy.

For example: – An agreement to do an impossible act is void which is not opposed to public policy. An illegal agreement is one which is not permissible by law. An illegal agreement is void since very beginning.

Case laws

B.P. Refinery (Westernport) Pvt. Ltd. vs. Shire of Hastings

In this case court laid down five conditions which are to be satisfied for an implied terms of contract. These are: –

Competency of the parties

Consensus

Lawful Consideration

Lawful object, and

Certainty

Skills To Be A Successful Import/Export Manager

 Handling logistics can be a challenging job. These nine skills will help you ace the challenge.

The job of an export/import manager anywhere in the world can be extremely challenging, more so if they work with small and medium enterprises or SMEs because these organizations tend to suffer from resource constraints.

Export/import managers may, for instance, often find themselves juggling an increasing number of tasks every day – planning  and coordinating shipments and supervising delivery, managing customers and personnel and ensuring that shipments comply with domestic laws as well as international export, trade and financial laws.

As is the case with any other job, having the right skills for all this work will not only help them complete it efficiently, it will ensure they grow professionally.

In this blog, we list nine skills – ranging from finance and technology skills to communication and interpersonal skills – that export/import managers must have or must develop to become better at their jobs. While some of these skills are specific to export/import managers, others are skills that anyone working in a professional space can use.

Life is all about continuous learning which is why we have included online links to tutorials and training wherever available. If you are an export or import or logistics manager or aspire to be one, we hope this blog inspires you to upgrade your skill sets or even learn new skills.

Here are the 9 Skills to be a successful Export/Import manager

1. Understanding finance and budgets

Anyone in business must be financially savvy because that is the key to financial success, and this holds true for export/import managers too. Among other financial skills, export/import managers must have the ability to understand accounting systems and contribute to the budgeting process.

Budgets are essentially spending plans that help businesses set goals and priorities for the financial year. Some responsibilities of export/import managers include drafting expenditure reports, helping determine budgets and ensuring that teams stick to approved budgets.

Financial skills are especially valuable for export/import managers working with small businesses because such organizations often operate on small budgets, and any deviations from approved budgets can hurt the business.

2. Understanding technology

Unless you’ve been living under a rock for the past two decades, you will be using basic technology such as laptops and desktops, smartphones, cloud platforms and web-based applications.

Among other things, technology has helped small businesses leverage capital efficiently, improve customer service, minimize costs by automating routine tasks, taking documentation online and accessing global markets. It has helped these organizations become more efficient and competitive.

As disruptions caused by the Covid-19 pandemic forces business worldwide to embrace technology or speed up their digital transformation in order to survive, it is all the more important for SMEs to know how to leverage technology in order to stay relevant and competitive in a fast-changing world.

Export/import managers must be familiar with the following technology tools in particular:

Inventory management software: This software allows businesses to track stocks, plan production, procurement and sales and even prevent stock-outs or excess stocks. This helps to increase productivity, efficiency, improves cash flow and subsequently leads to cost savings.

Project management tools: These tools help in planning and scheduling jobs to be done, collaboration with colleagues as well as hassle-free documentation and evaluation. 

3. Understanding of international trade compliance requirements

Complex rules govern the import and export of goods between countries. Trade compliance is the process of understanding and conforming to the import and export laws and regulations of a country and any trade agreements it has signed.

In most organizations, trade compliance is the responsibility of the export/import manager. These managers need to ensure that they and other organization employees are familiar with the country’s updated import and export laws and regulations. Failure to do so can result in audits, penalties, and inspections of shipments at the border all of which can prove costly in more ways than one. For instance, when shipments are held up at ports for inspection because of problems with documentation or suspected violation of trade compliance laws, besides the risk of penalties, these hold-ups can damage your relationship with your customer, hurting your business in the long run.

Just to give an example, Country A may decide it doesn’t want to export defense equipment to Country Z. When companies in Country A that manufacture this equipment go ahead and sell to Country Z because they are not aware of these restrictions, they can be slapped with heavy penalties.

4. Networking skills

One of the responsibilities of an export/import manager is interacting with multiple stakeholders such as customers; vendors such as freight forwarders, transport service providers; and representatives of government agencies such as customs officials.

These relationships must be maintained and nurtured.

It is easy to connect with customers using social media platforms. Most of these platforms allow you to easily create a business profile that you can use to interact with customers. Similarly, an effective way to build networks with industry stakeholders and government agencies is to attend events such as conferences and fairs that these bodies organize.

Nurturing such relationships has various advantages. One, it builds customer loyalty and is a good way to attract new customers. Two, service providers and government officials you know personally may be more responsive to your needs if you run into problems during the export/import process. Three, you carry these relationships with you wherever you go, helping you build your career and reputation as an expert in export/import business. 

5. Analytical skills

Every SME business wants to attract more customers and cut costs. Data analysis will help them do exactly that.

How is that possible, you may ask?

Businesses generate data every day as do entire industries. Analyzing all this data can give businesses insights into customer behavior as well as demands of domestic and international markets, allowing them to make more informed business decisions.

Data analytics has three key components: gathering data,  analyzing data, and obtaining insights from data.

Export/import managers, for instance, could gather and analyze existing customer data such as sales statistics to anticipate their needs – providing them exactly what they are looking for when they want it – increasing sales in the process.

Similarly, analyzing trade data can give businesses insights into the demand and supply of goods and services across the world and also their movement. These insights could guide decisions related to production, procurement of raw materials from global supply chains. It can also help businesses decide which markets to target or even ways in which they can improve the product.

In our experience, owners of small businesses tend to think that larger businesses are best placed to benefit from data analysis. That is not true. The value of knowing the customer – one of the biggest benefits of data analysis – is important to every business regardless of size. 

6. Accountability and adaptability

Accountability refers to the act of taking responsibility or ownership for your work, adaptability can be defined as a person’s ability or willingness to change their way of thinking or established processes to suit new or changed circumstances.

Both these skills are useful for export/import managers to have or develop. Accountability builds trust with people you interact with internally (such as team members) and externally (with clients, vendors, and representatives of government agencies). Similarly, a manager who is adaptable is better equipped to face challenges that their highly-stressful job throws at them.

7. Ability to receive feedback

Most businesses exist to bring value to the lives of a particular customer. Customer feedback therefore is very important and must always be heeded. An export/import manager closely works with customers and must not only have the ability to take any feedback positively but to also act on it.

Always keeping the customer at the center will enhance your business’s reputation and lead to word-of-mouth sales too, which is great for business in the long run

An article titled Logistics Management Best Practices, by PLS services, highlights why customers must be at the center of anyone who works in the logistics industry. It says:

70% of customers are willing to pay more for better customer service.

62% of B2B and 42% of B2C customers make future purchases with a company after they have a good buying experience.

66% of B2B and 52% of B2C customers stopped buying after a bad experience from the very first purchase.

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8. Communication skills 

An export/import manager has to deal with several stakeholders such as customers, transport service providers, government representatives and so on. Clear and concise communication is essential to avoid any misunderstandings with these people. Always ensure that those you deal with clearly understand what you mean and, most importantly, that you closely listen to and understand what others have to say.

Email serves as a great tool to maintain contact with the different stakeholder you connect with, and to build relationships with them. 

9. Ability to handle stress

Export and import managers will often find themselves having to make quick decisions under stressful circumstances. For example, you might find that a shipment has been delayed, cargo has been damaged or payments haven’t been released according to schedule. All this can lead to a huge amount of stress for you and the customer and also requires quick decision-making about how you want to proceed. This is why the ability to take calm and measured decisions in the middle of a crisis is a valuable skill for an export/import manager to have.

Conclusion

Do remember that this list of skills and desirable qualities that export/import managers must have is not an exhaustive list but a guide for those of you who want to step up your game and build your reputation and career as an expert in the export/import or logistics industry.

Things Every Exporter Should Worry About

 Twenty years ago, it took some effort to become an exporter. Today, primarily due to the internet, you can market your products and services around the globe without even trying. In fact, if your company has a website, you already are!

But just because it may be just as easy for someone in Tunisia to order your products online as it is for a person in Topeka, it doesn’t mean you’re ready to be a successful exporter. Being an accidental exporter is easy; being a successful exporter—one who makes money, grows a business, and stays out of trouble—takes some work.

Here are several important tips you can use to become a successful, professional exporter with a respectable company:

1. Develop Your Export Strategy

Identify products to sell.

Most, but not all, exporters sell something tangible, but that’s not always the case. Some companies export services or knowledge, but that doesn’t make them any less of an exporter. (That’s right—you can be an exporter without knowing it!)

Whatever it is, you must identify a product or service that people in other countries want to buy. That leads us to the next step.

Identify markets to sell to.

Where do you want to sell your product? Do your research to determine if there are applicable duty rates, tariffs or other taxes in the markets you’re interested in exporting to. You should also make sure it’s not illegal or especially cumbersome because of export license regulations. Make sure you’re asking the right questions when considering if you should modify your product for export markets.

Identify your strategy for selling.

1. You can sell directly to end users. If you choose to sell directly to the end user, your company is responsible for all aspects of the transaction—shipping, payment, product servicing, etc.—unless you make other arrangements. If you don’t anticipate and include these costs upfront, you may end up with less profit than you were hoping for.

2. You can sell to distributors who purchase goods from you (often at a discount) and resell them for a profit. When working with a foreign distributor, expect to have less responsibilities for support and service; the distributor will take care of these aspects, which can be challenging for new exporters.

The U.S. Commercial Service can help you find and select distributors who are reputable and advise you in beginning steps with your distributor.

3. You can use partners. Partners represent a step up from a distributor relationship. In this case, you may find an existing company in your intended foreign market who has an existing distribution and support system in place. Partnering with such a company can make entering a new market easier and can lessen the cost and pain of setting up an infrastructure in a country.

Identify how you will support your products.

In addition to figuring out what you’re selling, where you’re selling it, and how you plan to sell, you’re responsible for planning and implementing the care you provide after the sale. That includes determining how you will support your products; a critical factor if you want to be a successful exporter with a good reputation. Things to consider include service, technical support, warranties, and returns.

International trade makes it more difficult and costly to service, repair or replace damaged goods or items. Two major service delivery options include the following:

1. Requiring the buyer to return the product. This is an expensive option. It is also inconvenient for the foreign buyer. They are saddled with high costs and don’t get to use your product for an extended amount of time.

2. Figuring out a way to service your product locally. This is a cost-effective, time-saving option for most exporters. Options include using local service facilities or creating an office to provide service in-country.

How you handle your service and support will speak volumes about your reputation to your customers (current and potential). Make sure you take the time to plan for this in advance, so you don’t waste customers’ time and try their patience once your export transactions are already underway.

Identify any intellectual property concerns.

Intellectual property (IP) considerations are tricky. When you export, you don’t get the benefit of the U.S. rights granted in the U.S. by patents, trademarks, registrations, copyrights, et al. In a foreign country, these protections may mean little, if anything. You’ll want to do your research beforehand to identify how intellectual property issues are handled in the country or countries you will be exporting to.

We’ve got several articles that will help you navigate the choppy waters of IP. Read each of them to learn specific methods and hints that can assist you as you proceed:

You can get help with intellectual property issues and learn about the U.S. government’s Strategy Targeting Organized Piracy (STOP) initiative at STOPfakes.gov.

Decide how to price your products.

Pricing is one of the most difficult challenges for all exporters, even experienced ones. According to A Basic Guide to Exporting, there are 10 questions you need to answer in order to make sure you’re determining the best price for your product.

1. What price should your company sell its product in the foreign market?

2. What type of marketing positioning—also known as customer perception—does your company want to convey from your pricing structure?

3. Does the price reflect your product’s quality?

4. Is the price competitive?

5. What type of discount and allowances should your company offer foreign customers

6. Should your prices differ by market segment?

7. What should your firm do about product-line pricing?

8. What options are available if your firm’s costs increase or decrease? Is the demand in the foreign market elastic or inelastic?

9. Is the foreign government going to view your prices as reasonable or exploitative?

10. Do the foreign country’s anti-dumping laws pose a problem?

Traditionally, determining proper pricing depends on costs, market demand, and competition. You’ll also want to consider additional costs the importer will incur, including tariffs, customs fees, currency fluctuation, transaction costs, and value added taxes, because they can add to the final price substantially and may even double the U.S. domestic price of your good.

Another aspect of pricing is the initial export transaction, which begins with the receipt of an inquiry form that is followed by a request for a quotation. You’ll prepare a proforma invoice in order to describe your product, set a price, set timetables, and specify terms of sale and terms of payment.

Pricing is a complicated, important aspect of your new exporting venture, so make sure you’re doing all of the research you need to do to understand how and what to charge for your products. Looking for more help with pricing your goods?

2. Review and Understand Export and Import Regulations

Make sure you know if there are any restrictions on exporting your goods from the U.S.

Determining which of your products are subject to export regulations is one of the first, most important steps you’ll need to take. Here are some key things to look out for:

Export license requirements. A relatively small number of exports require a license from either the U.S. Department of Commerce or another U.S. agency like the State Department. Depending on your product’s technical characteristics, destination, end users, and the end uses, your product may be one of them.

Our white paper, How To Determine If You Need an Export License, is a must-read resource for new exporters. Once you’ve done your background research, you can use our Export Controls Wizard to find out more about your specific product’s requirements.

Embargoed countries are countries you are not allowed to do business with. You will need to find out what those countries are and then not export with them. 

Restricted parties are individuals, businesses and other organizations that have been identified as engaging in activities related to the proliferation of weapons of mass destruction, are known to be involved in terrorism or drug trafficking, or have had their export privileges suspended. You should not be doing business with people and organizations on these lists.

All exporters should check all the parties in every export transaction against the various denied party screening lists to prevent penalties. You can do this manually via the Federal Register, but be aware that you have to check every single list in order to be in compliance. Yes, it is time consuming, but you could face jail time if you are found to be violating these regulations.

To make it easier to stay in compliance and save you precious time, you can try our Restricted Party Screening Wizard for free. Because this information is stored online on our secure web server, you can be sure that you are accessing the most current information available.

Find out if there are any restrictions on importing your goods in prospective countries.

Just as there may be restrictions on exporting your goods from the United States, there may be limits or prohibitions about importing goods into your chosen market(s). In addition to identifying the correct Harmonized System (HS) number for your products, which is used to determine how much duty you must pay for the goods, you need to be aware of other various types of import controls for your products including import licenses and permits, various types of certificates, absolute and tariff rate quotas, and anti-dumping and countervailing duties.

Research to see if your products qualify for any free trade agreements (FTA).

You’ll want to do your research to see if your products could qualify for any FTAs that could potentially save you a lot of money. In The Not-So-Sexy Checklist for Becoming a Successful Exporter, we mention the importance of finding out if the duties and taxes that may be added to the cost of your goods could prevent them from being competitive in a chosen market.

3. Prepare Your Goods For Shipping

Identify partners like freight forwarders.

Whether you’re looking for a new partner or reviewing your relationship with your current freight forwarder, here are at least seven questions you should ask:

Do I have a specialized product line or type of import?

How many ports will I be using for imports?

Is automation easy with this partner?

What is the broker or freight forwarder’s general reputation?

Do I need a dedicated account representative?

Do we have a written working agreement?

Are there warning signs?

The answers to your questions about freight forwarders will help you identify if your relationship is as functional and profitable as it could be.

Understand Incoterms.

It may seem easier said than done, but you can’t skip this step. You absolutely must know what you’re talking about when you use these three-letter codes.

We’ve written extensively about Incoterms. Here are a couple of the most popular resources:

An Introduction to Incoterms

The Incoterms 2020 Chart of Responsibilities

Understand product labeling requirements in your destination country.

Here are a few things you need to consider:

Does the country legally require using specific language?

Do the product content and country of origin need to be included?

Are weights and measures stated in the local units?

Do items need to be labeled individually?

Download Sample Packing List

Pack your goods.

Think about this for a second: Losses from improperly packed containers add up to $5 billion a year worldwide. That’s a pretty good reason new exporters should make sure they’re avoiding potential problems when they prepare their export shipping crates.

In our three-part series, The Art and Science of Packing a Shipping Container, we explain several tips that can help you make sure your goods and containers are prepared for the journey ahead. You can also download a free export packing list to help you in your export process.

Understand and correctly apply hazmat requirements if appropriate.

Depending on what you’re exporting, you may need to apply certain hazmat and/or dangerous goods, requirements. To get an understanding of the basics of shipping dangerous goods, watch the free recorded webinar: An Introduction to Shipping Dangerous Goods.

The regulations for shipping hazardous materials and dangerous goods have a variety of similarities and differences, which you can learn about here. However, the most important step you can take when dealing with hazardous materials danger and dangerous goods is to make sure you and the employees who will be dealing with these goods are thoroughly trained and knowledgeable about these regulations.

Make carrier choices.

New exporters need to decide what methods they are going to use to get their goods to their destinations—air, ship, rail, road or a combination. Just as with freight forwarders, make sure you’re asking questions, not just partnering with the first company you meet. Be aware that what you think may be the most inexpensive, efficient ways to carry your exports may not be, and explore all of your options to find the most economical and efficient combination.

Understand insurance requirements.

Insurance is an important, necessary protection for U.S. exporters. A Basic Guide to Exporting covers the options available and the information you need to know in order to purchase insurance, and you should also consult with international insurance carriers or freight forwarders for more information about your specific goods.

4. Complete Your Export Paperwork

Once you’ve completed all of the above steps, you’ve still got a way to go. You now need to fill out all of the documentation and supporting paperwork that will accompany your goods on their export journey. This is crucial to the success of the new exporter, because any errors (even simple typos) in your paperwork could delay your shipments and delay your payday.

Depending on what you’re exporting, you could have dozens of forms to complete. You can either do this slowly—by typing the same information again and again—or you can use a product that’s specialized for export documentation: Shipping Solutions. With Shipping Solutions, you’ll complete your paperwork up to five-times faster than the traditional, manual process. Request a free online demo of the software today.

5. Make Sure You Get Paid

Arguably the most important part of being an exporter is getting paid for your goods. To make sure you get paid, you need to find an international banking partner and understand all of your payment options.

Find an international banking partner.

1. Interview several bankers from multiple banks. Get an idea of whom you’re comfortable with, whom you have a good rapport, and whom you can trust.

2. Make sure your bank can help you. The bank you choose should provide valuable guidance in getting paid, but that’s not all. A good fit will help you with assessing creditworthiness and identifying the best payment methods for your particular situation.

3. Your bankers need to know the details about each type of document and supporting information you need in order to facilitate a smooth letter of credit. They also should know the sticking points regarding letters of credit and any other payment type, and can advise you regarding the best payment methods for your exports.

Understand your payment options.

Just as you need to make sure your banking partner is someone you feel comfortable working with, it’s your responsibility to make sure you understand the terms that can help you get paid and know your payment options.

The five methods of payment in international trade are consignment, open account, documentary collections, letters of credit, and cash-in-advance. Methods of Payment in International Trade provides information about each method.

Do the work now, and you’ll worry less later.

For new exporters, it’s easy to be so excited to get started that you jump the gun and get penalized. However, by stepping back and taking care of these five things up front, you’ll have much less to worry about down the road.

While this is by no means a comprehensive list, it is a good starting point. By taking responsibility for understanding terms, regulations, procedures and processes, you stand a great chance at becoming a successful exporter.