A consolidator receives various goods/products from different customers and packs (or 'stuffs') them in the same manner for shipping. When the container arrives at it is 'destuffed' and the different consignments are released to their various owners.
As a first-time exporter, there are some key matters that may affect the export of your product, therefore familiarise yourself with the following:
- Tariff Numbers: These determine the customs duties and taxes to be applied.
- Customs Procedures: Understanding these may result in an ease of shipping.
- Trade Barriers: Know which barriers affect your export, to avoid unnecessary roadblocks along the process.
- Sanitary & Phytosanitary Issues: These will inform you of the various certificates required for exporting. These can include food safety and plant health certificates.
- Rules of Origin: This area outlines any preferential treatments that exist between your country and the country of export.
For more information, please refer to our Export Checklist, or get a copy from DEXIA's main office on the Bayfront.
Please review our export checklist to see further details on what you need to export a product
Before you export, you need to research the market you will be exporting to. On the domestic end, you also need to develop a strategy to ensure that you have everything to you need to have an exportable product and to be able to export it.
Here are some things to consider:
- Evaluate the export potential of your product.
- Determine whether you are really willing to make a commitment to exporting to regional or international markets.
- Evaluate whether your product is actually 'export ready'.
- Identifiy key foreign markets for your products. This is possible through conducting market research.
- Evaluate distribution and promotional options. Establish an overseas distribution system.
- Determine export prices, payment terms, methods, and techniques.
- Become familiar with shipping methods, export documentation procedures, export financing, and other requirements for exporting.
This is a 6-digit standardised numerical method of classifying traded products. HS numbers are used by customs authorities around the world to identify products for several reasons including:
- Applying duties and taxes
- Import and export admissibility
- Whether or not the good should be physically examined.
The first 6 digits of the Harmonized System code indicate the same product description for all 190 countries that are part of the World Customs Organization*.
However, this does not mean that custom duty rates are the same in all of these countries. There are over 5,000 groups of 6 digit codes. Some governments choose to additional digits to the HS code to further distinguish products in certain categories. The HS code is also used to establish the basic rules of various trade agreements such as NAFTA. The World Customs Organization is an independent, intergovernmental organisation based in Brussels, Belgium.
There are occasions, whereby certain goods may be restricted from export, or prohibited, meaning they will not be exported under any circumstance.
Here's a list of the types of products that are prohibited or restricted on exportation:
- Agricultural and Food Products
- Cultural Artifacts
- Counterfeit or Pirated Goods
- Indecent Articles, Publications, Video Recordings
- Endangered species of flora and fauna
Before making your first shipment to any country, the following factors must be critically assessed:
- Demographics of the country including the distribution of population age and income
- Per capita income, rate of economic growth, and stages of economic development
- Political stability, rule of law, regulations, ease of doing business
- Culture and business practices
- Market entry, taxes, duties, import licenses, and inspection
- Infrastructure, ease of moving products, communication, roads, ports, and airports