Don'ts of Exporting part 3

                                                Don'ts of Exporting part 3

Don't #10

Don't neglect to give a letter of instruction to your freight forwarder and to make sure that your freight forwarder carriers errors and omission insurance. Exporters who fail to provide their forwarders with written instructions leave too much to fate and often find themselves without recourse when they discover that their forwarder has made a costly error against the exporters' interests.

This discovery is further exacerbated when a ''guilty''  forwarder doesn't carry errors and omissions insurance and can't or won't make good on the expense that the forwarder's action has forced on an exporter.

Don't #11

Don't forget to insure consistency in your export transactions. By reviewing your selection of payments terms, sales terms and insurance coverage against the terms of your export sales contract and the instruction letter given to your forwarder, you insure your transactions against problems that result from contradictory, overlapping information.

Exporters who fail to perform a consistency check expose themselves to unnecessary problems that quickly and effortlessly unravel even the most soundly structured transaction.

Don't #12

Don't randomly assign your product a harmonized code number. Most countries in the world subscribe to the harmonized tariff schedule to classify products for duty purposes. There is, however, often some room to maneuver with regard to the applicable harmonized code for a particular product, i.e., there is generally not one absolutely correct product code, but rather several possible choices.

Since the choice of a harmonized code impacts the duty rate that will be applied against a product and since duty rates vary country by country, it does not make sense to select one harmonized code over another, without also considering the applicable duty rates.

Don't #13

Don't ignore your responsibility to comply with the U.S. export laws as they relate to required export documents. Exporters are required to prepare and submit a shipper's export declaration(SED) for each shipment, cite the appropriate export license, and identify the final destination, end user, and end use. Failure to provide a SED exposes an exporter to civil and or criminal penalties.


Don't #17

Don't be greedy - if an export opportunity looks too good to be true, it often isn't true! just think of all the U.S. exporters who have gotten caught in export scams - several thousand in 2001 alone - and don't get lured into participation by thoughts of the millions of U.S. dollars available to you for little or nothing in return. Don't loose your good business sense in the face of an export opportunity and give export sales opportunities the same level of scrutiny that you would give any business deal.

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