Taking the Next Step: Exporting Your Goods

So, your products have been selling so great here in the U.S. that you’re thinking about selling them in another country. That’s great! Exporting can be a terrific way to grow your business and expand your market.

Exporting can seem a bit intimidating to those who have never done it, but if you have all the information and take the time to thoroughly understand the process, you’ll find that exporting can be a fairly simple process.

Here are some basic steps to help you understand the exporting process:

Finding your overseas market - Once you’ve decided that you would like to export your products, you will need to find buyers for your products. Many exporters find that working with a foreign partner makes the most sense, since they have the buying contacts. Finding the right overseas retailers or distributors for your products may be time consuming but it’s definitely not impossible. A good place to start is on two websites that are sponsored by the U.S. Commerce Department: www.export.gov and www.buyusa.gov. Both sites contain directories of foreign buyers.

Making your product ready for a foreign market - This isn’t always simple. If you are selling an electrical product, you may need to make modifications to both the voltage and adapter. Another thing to consider is whether or not your product needs to be in metric standards in order to integrate with other foreign products. Also, your instructions, warranties, product packaging and labels will need to be in that country’s language, with an easy way for foreign customers to submit warranty information.

Shipping Your Products - There is a lot of documentation involved in exporting products and many companies choose to hire a freight forwarder to take care of the shipping and prepare the paperwork. The money that you spend on a freight forwarder will many times be saved by their shipper connections and discounts. For more about freight forwarding, read our article Choosing and Using a Freight Forwarder.

Here are the documents you may need in order to ship your products overseas:

Export license - Normally, exports don’t require this license, however, there are certain categories of products which do need an export license in order to leave the U.S. They are:
* Foodstuffs and chemicals
* Agricultural products

Certificate of origin - In order to qualify for a country’s preferential tariff treatment, you will need to have this form. Many countries allow products a duty-free entrance into their country as long as you comply with their rule of origin.

Insurance certificate - This is usually required in order for your goods to be in transit. Usually the exporter pays for insurance up to the arriving port and then the shipping company provides insurance to the final delivery destination.

Bill of Lading - This is the contract between the exporter and your carrier. The carrier is typically the issuer of this document; however the terms are usually negotiable.

Airway bill - This is only needed for freight shipping via air. Again, the carrier issues it; however, this bill is typically non negotiable.

Invoice - If your goods are being shipped to a particular buyer, and not to a warehouse, then your shipment should include an invoice. This will contain exporter information, payment terms, pricing information, total quantities and the shipment’s weight.

Packing list - The packing list needs to clearly state exactly what is in the containers, the value of the products, and the weight of the products. If there is a mistake on your packing list, it may result in your shipment being delayed in customs.

If you’re a first-time exporter, it may be wise to enlist the help of a freight forwarder to help you with all the details and to make exporting even easier to you. You’ll find that once you understand the process, exporting isn’t as mystifying as you once thought.

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