Import or export products or services
Overview
This standard is for entrepreneurs who import or export products and services. There are many things that are different about trading abroad versus trading locally or in the UK. It is important to monitor and adjust overseas activities and make sure these have a positive effect on your business. If you want to import or export your products or services, you will need to meet the legal requirements of all the countries concerned, use the most efficient and effective communication and transport methods, check the ongoing effects on the business, get the right payment terms and conditions, monitor risks and situations in the countries you trade with.
You might do this if you need to:
widen your spread of suppliers;
find new overseas customers for your products and services;
find new markets;
try selling new products and services overseas;
increase sales and distribution;
open a new business or social enterprise that operates overseas.
Performance criteria
You must be able to:
- identify the products and services suitable for import or export
- identify the countries or economic zones for import or export
- establish the ways of communicating with your customers or suppliers
- select transport and storage activities that meet your requirements
- ensure your knowledge and compliance with rules and regulations or international trade is up-to-date
- keep your knowledge current on legislation changes
- make sure you have all relevant import or export paperwork you and your customers or suppliers are responsible for
- seek additional information or professional expert guidance on completing the paperwork
- confirm the payment terms and conditions for your operations
- make sure the terms and conditions meet the needs of your business
- check that the information and administration methods you are using are right for your business
- inform all parties involved about their roles, responsibilities, and changes in processes
- keep regular updates on progress of import or expert operations
- regularly monitor the risks and situations in the countries you are trading with
- use the relevant IT systems in relation to import, export and other related operations
- take action to minimise risks and deal with changing circumstances
- identify any new opportunities that emerge and review your export or export plans as required
- monitor the progress of your overseas activities on a regular basis to make sure targets are met and overseas trading benefits your business
Knowledge and Understanding
You need to know and understand:
- the laws and regulations you must comply with for import or export operations
- why it is important to find out the protocols and processes for the countries you are dealing with
- the different methods of communication used to interact with your customers or suppliers
- the costs and benefits of information and administration methods related to import or export operations
- the relevant IT systems in relation to import, export and other related operations
- the logistics systems for freight forwarding, consolidations, shipments, collections and deliveries
- the transport modes and relevant arrangements to suit your needs
- the current channels' characteristics, such as cost, speed, reliability, frequency, size of loads
- the variety of payment options and terms
- the administrative requirements, staff time, technical support, customer service
- the benefits of using a third party, such as courier, freight forwarder
- the required packaging, documentation, labelling, insurance, delivery confirmation notes, after sale agreements and etc
- the impact on warehousing and storage requirements
- the export or import paperwork required
- the terms and conditions for you, your customers or suppliers
- the foreign exchange currency rates and how your operations may be affected by their fluctuations
- the delivery or pick up arrangements
- the relevant international commercial terms (Incoterms), detailing buyer and seller responsibilities for transport, insurance, duties and clearance apply to the country you are trading with and the transport method you are using
- how to take account of unfamiliar cultural practices, expectations and business processes when dealing with overseas companies or customers
- how to deal with planned and unplanned opportunities
- what to monitor to be able to pre-empt situations, such as political factors, changes in industries or markets
- how to guarantee a suitable return on your investment
- how to calculate whether exporting has been successful for your business and how to spot new opportunities in other countries
- how to review your products and services in terms of their profitability and consider other opportunities, such as new markets in other countries, new products or services, increasing sales and distribution