It is no secret that the global trade is thriving nowadays. According to the most recent data from World Trade Organization (WTO), merchandise trade volume growth will grow to 4.4% in 2018, roughly matching the 4.7% increase recorded last year. This industry growth is expected to attract more players, as more and more business people see this sector as a potential area to build their wealth.
However, if you are planning to venture into the international trade, you must first go over every nook and cranny of the industry before you actually start full force. This is even more important when you are deciding to start an importing/exporting company.
In an import-export business, you will not only deal with things such as international trade regulations, fluctuations in currency, and many other factors. You will also have to deal with many different people – your customs broker, freight forwarder, and suppliers, among others.
Are you planning to start your own international trading company soon? If yes, then read these key takeaways from the infographic below from Excelsior Worldwide Logistics which discuss the most common mistakes you should avoid when running an import and export business.
- Lack of Knowledge of Import and Export Regulations
- Hiring an Incompetent or Unexperienced Customs Broker
- Not Declaring the Correct Value in Customs
- Unfamiliarity with Incoterms
- Failing to Insure Goods Properly
- Not Verifying the Legitimacy of the Supplier/Buyer of the Product
Check out the infographic below to learn more: