Export – An Effective Marketing Strategy For Your Business
Whether it is a vehicle, product or service from one country to another, there are some basic steps that must be followed to successfully export a product. For starters, the exporter needs to be aware of the specific laws prevailing in the foreign market, along with the corresponding requirements of the exporting entity. For instance, a clothing manufacturer in America requires a license to export clothes to Japan. The manufacturer would have to apply for an export license for this. Other items such as petroleum need different permits from different foreign markets.
There are several entry modes in the exporting sector, and each one needs to follow the law of the land. However, the most common way of exporting goods through the use of a commercial import-export business is through contract law. Virtually all large-scale exporting companies employ a set of specialized personnel who undertake the necessary tasks of preparing contracts and organizing shipping procedures, although their primary function may very well be to prepare and review export proposals.
Virtually every country has its own rules and regulations related to the exports and imports of goods. For instance, the rules on the role of the customs and the Department of Commerce in licensing activities are different in many countries. The exporters need to be aware of these differences. If the products need to pass through another country’s customs, they will need to prepare a contractual agreement based on the nature of goods to be transported. Many companies also engage the services of professionals like attorneys, accountants and agents to draft and review export proposals before submitting them to the appropriate authorities for review and eventual approval.
The next step involves applying for a certificate of Import and Export. There are many ways of doing so. In the USA, there is the Federal Automated Export System (FAESS) which is administered by the US Department of Commerce. This system was developed to simplify the registration process of exporting goods into the United States. Most exporting corporations also have an International Marketing Organization (IMO) account. However, IMO is not compulsory when exporting to a foreign market.
Once these preparations are complete, it is necessary to determine the ultimate destination of the consigned goods and identify the legalities and documentation required for exporting and importing goods into and from a foreign country. For exporting, it is important to understand the difference between exporting and importing. While importing, you can simply take possession of the goods from the importer. You are then free to dispose off them as you wish. On the other hand, when exporting, you are legally bound to send the goods to the right destination.
The main reason why many companies export goods is to tap new markets. One can always rely on importing when the need arises, but it becomes difficult to locate an adequate market for the product in the new markets. For example, there are limited sources of export in the electronics industry. However, if a company is able to locate one such source, it would be very easy to tap into the consumer electronics market and sell its products to the potential consumers. Many software companies export their products in new markets like China.
Some companies even choose to keep the focus on a few specific segments and export their wares to these markets, and this makes things much easier. However, keeping an entire focus on a single segment can sometimes prove problematic. Therefore, companies that are looking to export often opt for an entire marketing strategy, along with effective entry strategies, by opting for exporting via various entry modes. Most importantly, most of these exporting companies adopt advanced technology for shipping their consignments across the globe.
It is important to note that while some exporting firms may prefer exporting using contractual entry modes, most export-oriented firms are quick to switch to using electronic mailing services. This is primarily because shipping costs involved in electronic delivery have become more affordable. Moreover, the packaging costs involved also have come down over time. Electronic delivery has become possible because electronic mail has been invented. Basically, if you want to successfully export goods from any corner of the world, it is important to keep these factors in mind. By doing so, you will be able to maximize the potential benefits of your investment in export-oriented businesses.