What is New-to-Export?

New-To-Export is a term used for describing the enterprises that are new in the export business. Companies enter the export business to gain access to new markets and customers. There are certain rules required to be followed while sending a shipment abroad. The new-to-exports businesses often find it difficult to understand all the rules and fail to execute it properly.

Why it matters to be New To Export Companies

Efficient and organized operational staffs are key to achieve a success in exporting goods. All the information including client details, payments, shipments, and orders need to be maintained and organized in a central database in order to avoid any mistake. The stellar logistic team is another important factor in an export business. The logistics staffs ensure the products are packaged properly for sending out to a foreign country. Packaging needs to be done with utmost care in order to ensure it reaches undamaged to the receiver. The packaging rules must be followed thoroughly, otherwise, it may not pass the customs. 

The logistics team is also responsible for maintaining a liaison with freight forwarders in order to make sure the product reaches the destination on time and the company gets the best service at the best price. A company may decide to outsource the logistics operations by hiring external logistics companies. Whatever the case may be, the team needs to be highly efficient, thorough and detail oriented. Packaging and documentation are very important for a successful export business. As all the shipments are thoroughly checked by the destination country's customs officials, the shipment needs to be packaged and labeled according to the guideline. If the customs find any discrepancy, they might refuse to permit its entry into the country or it can delay the inspection process. The exporting company loses both time and money on such occasions of delayed delivery. 

The basic requirement for any international shipment includes export invoice, applicable licenses, EEI filing, and dangerous good tag. Each country has its additional requirements, so it is important for the exporter to know the rules of the destination country properly before establishing a trade relationship with them. Shipping platforms provide guidance on such requirements, also the U.S. Customs and Border Protection can be followed to know more about the regulations. In the United States, eleven International Commercial Terms (Incoterms) are in effect. Each of it has different rulings regarding which party (seller or buyer) is responsible for which documents, taxes, fees, and risks that are applicable to the shipment. The company needs to clearly communicate to both the customer and freight forwarder that which incoterms are being used for the shipment. 

HS/HTS codes differentiate the type of products. Each international shipment must carry the correct HS/HTS code so that the Customs department understands what is inside the package. It is very important to put the correct code on packages. Each HS/HTS code and each country has their own regulation regarding the fees and tariffs. The company needs to pay all the required fees and tariffs for a successful international delivery. Freight forwarders are extremely helpful for sending a product outside the country. It is not necessary to appoint a freight forwarder company but a company who is new-to-export should get help from a freight forwarder to ensure everything is in place. 

Freight forwarders guide the company properly throughout the process. They can also prepare the documentation for an international shipment on behalf of the company. Appointing a freight forwarder company licensed with the International Air Transport Association and the Federal Maritime Commission is always advisable for sending goods abroad. In international trading, the clients do not generally pay the full amount upfront. So, it is important to have a strong financial back up to deliver the product on time. Before entering the international trade, a company must ensure it has the required financial support for successfully completing the delivery process.