Hooper & Co
One of the region’s leading international trade experts says firms in the region can grow significantly if they look at new markets overseas.
David Hooper, of Hooper & Co – the sister company of Nuneaton-based Independent Freight Solutions, regularly works with the Coventry and Warwickshire Chamber of Commerce on helping businesses of all sizes and sectors to understand the dos and don’ts of global trade.
David said companies should not be put off trading abroad by fear of complexity and that the benefits far outweighed any challenges.
He said: “Businesses that export are far more likely to survive and to grow. There has been a lot of noise around exporting after Brexit and with the Government striking new trade deals but, ultimately, it’s about each business doing what’s right for them.
“I’ve pulled together some hints and tips but my first suggestion would be to get in touch with an expert that can support you on your journey. That could be us at Hooper & Co and also the team at the Chamber. The more help you can get, the better!”
Market research
“Conduct research to identify most promising export markets based on demand, regulations, tariffs, competition level and what you do as a business.
“Tailor your marketing, pricing strategy, distribution channels to local preferences in each export market as every territory is different. There might be a huge gap in the market for your product or service in a particular market.
“Market research will also help to understand cultural differences and any localisation required for product/services. This is really important.”
Customer Requirements
“Before you start any kind of distribution, it’s important to understand any labelling requirements, any necessary markings that might be required or approved packaging specifications for your customer or for the territory you are exporting to.
“Make sure that when pricing and scheduling you account for agreed delivery terms and the final-destination address.
“And, finally, factor in any special handling needs, certifications, or packaging your buyer requires. If you consider all of this, it will cut down on any potential issues.”
Incoterms (International Commercial Terms)
“These are the terms and conditions that you’d have in any contract but they are especially important when trading overseas. Make sure you clearly define responsibilities between buyer and seller for shipment costs, obtaining insurance, customs clearance procedures, and delivery location.
“You’ll see common Incoterms such as FCA, CPT, CIP, DAP, DDP - research which term best fits your transportation needs and risk tolerance. Again, this is where you might want to check with an expert because having the wrong Incoterm can lead to unexpected costs, delays, and general misunderstandings between parties.
“Don’t let this put you off, but work with international trade experts to ensure you get it right.”
Shipping Documentation
“Before you send anything, make sure all of your shipping documentation is in order. This includes a commercial invoice, packing list, and bill of lading/airway bill. They are essential documents required for every international shipment.
“You must also determine if certificates of origin, export/import licenses, inspections, or other certificates are mandatory for your products for the destination they are heading for.
“It’s important to note that any inaccurate or missing documents can lead to customs delays, penalties, or even seizure of cargo. Again, this shouldn’t put you off but underlines why it’s worth seeking advice if needed.
Utilising Free Trade Agreements
“Free Trade Agreements have been mentioned a great deal since Brexit and merely beginning negotiations has been hailed a success by the Government wishing to prove the benefits of leaving the EU.
“The best thing to do is research free trade agreements (FTAs) between the UK and your products’ destination and check if your products qualify under the FTA's rules of origin requirements.
“Qualifying allows claiming preferential duty rates rather than what we call full most-favoured-nation tariffs. It should make it cheaper to export if your product falls under an FTA.”
David Hooper, of Hooper & Co, will be conducting online international trade training sessions this September. Check the Coventry and Warwickshire Chamber of Commerce website for details.
