Introduction
- International trade can prove to be extremely complicated due to its intricacies and tricky regulations
- The situation has become even more complex after the arrival of COVID-19, as exporters are now expected to comply with even stricter guidelines
- The time taken to ship products has also gone up, as has the cost
- These factors are proving to be detrimental for new players who are looking to enter the export market
- Even though exporting is quite hard, there are ways in which the entire process can be simplified
- This blog discusses the key aspects that make exporting such a tricky task. At the same time, the blog also focuses on potential solutions that could reduce these complicacies to an extent
The Complicacies of Exporting
- There are several reasons why exporting is so hard. Some of these have been discussed below:
- The first and foremost reason is that exporting requires you to deal with a counterparty that is not located near you. Exports are typically done to countries that are located thousands of miles away from you. In such a case, it can be tricky to keep track of shipments and payments
- Secondly, there are also language and culture barriers to overcome. Since your counterparty is located in a different country, it is not always easy to understand their language and their way of thinking. This could result in misunderstandings and conflicts
- Thirdly, each country has its own sets of rules and regulations. You must be fully compliant with all of these regulations if you are to ensure a smooth transaction. Exporters can find it hard to keep track of all these regulations
- Further, exporters should also be aware of the different terminologies that are used in the field of trade. This is extremely important in order to make sure that both parties are on the same page
- Despite the above complicacies, exporting can be worth it if you make smarter decisions. Here are a few pointers that could help you in doing so:
- The most important factor is to choose the right partner. Even if you are located thousands of miles away, you must find a counterparty that is honest and transparent
- Further, you could also make your life easier by taking the help of industry experts. Trade finance institutions could help you in minimising the risks associated with exports by providing certainty of payment under all circumstances
- Another step that could help you in simplifying exports is to keep reading about the rules and regulations. If you remain updated about export laws of different countries, then you will be able to meet the compliance requirements without any issues
- Thus, if you do follow the above steps, then you will be in a much better position. If executed in the right manner, then exporting is totally worth it. You just need to ensure that you are mitigating all types of risks before proceeding
Conclusion
- To conclude, exporting can appear to be quite hard at first glance. However, if you take the right approach, then these complicacies can certainly be overcome. In case your organisation is unclear about any aspects of business, you can always reach out to the experts. Institutions such as Euro Exim Bank offer customised support to traders in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.
