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Monday, December 15, 2014

Exporting Considerations You Better Know


7 BASIC AREAS  FOR YOU TO UNDERSTAND
The continuing changes in the world marketplace suggests awareness in order to mount the best possible campaign.

I    KNOW IMPORT REGULATIONS IN YOUR TARGET MARKET
Non tariff trade barriers pernicious to market entry.  Ex:  1.    Consumer safety laws in the EU.  2.    Import licenses & quotas in Latin American countries.  3,    Import Tariff valuation - is shipping chgs. part of the applicable tariff?

II    LOGISTICS
Transport facilities locally - food prods. delayed at entry port with total loss due to deterioration.  Check out free zone
facilities.   Ports costs & fees that affect the landed cost to your customer.

III    DISTRIBUTION
Determine if any local gov'ts. have bias toward the USA.   Ex:   Some Middle East countries stigmatize types of prods. that have ethnic issues.   Obviously the full progression of know prods. are moved toward the user need to be understood from wholesale to retail to ultimate destination.   Regional dist. cntrs. are an effective way to enter the market.  Packaging should be consistent with what the local client has had experience with - not radical changes.

IV    CREDIT PATTERS
Know how customary payment is made.   Ex:   60 day delays are considered same as cash.    Or, 180 days from billing date is not unusual.   NOTE:   Learn how to gather credit info on your clients - thru D & B, local refs., other US exporters,  

V    ADVERTISING    TV and magazine publication vary widely due to the demographics of wealth.    Rely on your customer -   some type of co-op.  News papers are widely read & noted.  

VI    LEGAL
Protective measure taken to avoid loss of brand names.   Register it or it may be bought up by a rival.  Know what after sale rights your costumers have.   Prior to any contractual arrangements determine what is involved upon cancellation.
Ex:   In Puerto Rico a contract is a lifetime agreement and can only be cast asunder by the local signee.

VII    STATISTICS
Be aware of your competition.  Where is it coming from.   China?   Or, a local alternative product.

Bottom line:   NEVER agree to any territorial market on the basis of just getting an order.   Every agreement must have an ending date based on mutually agreed performance.


Henry Samuel Certified SCORE counselor;    hanksamuel2@gmail.com

visit us at: www.scoresouthflorida.net

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