You might have heard a lot of buzz about exporting to other countries. Well, exporting helps you earn foreign remittance, work with global clients, and give more opportunities to grow your business. But, when you become an exporter, the first thing you must identify is the product or service to sell. And once you know what you want to sell, you need to figure out which export market or country you want to deal with.
Selecting the right country to export will help your export and import business grow rapidly. In this article, we will walk you through the process of selecting the right country to export and how to grow your foreign trade business.
Check Demand in Various Countries
The very first step is to check demand in various countries to import your goods. You can check various websites, marketplaces, your country’s trade websites, to figure out where your country has sent the most goods and services. Some online marketplaces also sell data that shows the insights about companies that export to foreign markets.
List down certain products and services to find out the gross domestic production in your country as well. If your country produces access products, then you can send a shipment and earn foreign currency easily.
Identify the Demand for International Trade
Once you know what many countries are importing from your country and have product classification ready with you, work on finding demand.
There are two major kinds of demand:
- Seasonal Demand of Goods and Services
- Year-wide Demand of Goods and Services
Seasonal demand would mostly come from special fruits or vegetables and services. Like the installation of air conditioners in humid or summer times in various locations. Year-wide demand would come for the majority of the general purpose consumer goods, electronics, and so on.
Identify the Demography
Understand what countries have what leading demographics. Figure out the consuming population that might consume the goods or services you want to sell there. Figure out the aging population numbers as well, this will help you find the right way to find how to run marketing campaigns there.
Getting this information would help you compare one country to another country while finding the right place you want to export to.
Check the Country’s Geopolitical State
Geopolitical issues might become a trade barrier for your export shipment. Thus, always keep your eyes on news and keep tracking the official updates from your customs authorities. When a country faces a challenging situation due to any circumstances, export journey may become difficult for you.
Check the Country’s Free Trade Agreement (FTA) for the Tariff
To maintain trade relations, various countries and regions enter into free trade agreements with each other. This helps improve their net exports and import goods at a fair value to keep the inflation in their country in check. Growth of a country’s total export will improve when the import duties from various countries are kept fair for businesses. The free trade agreement also focuses on keeping the import requirements simple for the importers. That makes the export process simple and smooth.
Check the Economy of That Country
You might have selected the right country and that country might have requirements for your products. But, what about their economy? Can they afford your rates? Check how their government is acting and implementing tariffs are designed to protect domestic products. Finding these insights will help you figure out specific export procedures and export potential goods in their domain.
Check Country’s Business Outlook with Your Country
To determine the country or countries to export, check their relationships with your country. Check export statistics and figure out how you may export there with less complexities involved. To run smooth imports and exports operations, you need to make sure that the domestic products from foreign competition are not going to hinder your export promotion. Check if the country you are targeting has imposed a special tariff rate for your certificate of origin or not.
Apart from these points, a business should also identify the following things:
Check Customs Duty Rules
To follow proper import and export regulations, make sure you check and follow all the customs duty rules. Prepare a proper packing list, check if your product qualifies the quality standards or not, and see export information with your local ports as well. You can find out import tariffs on products concerning the country of origin on their government websites.
Export Procedure From Your Country
Make sure you have an export license to ship to the foreign market. Generally, to trade in the global market, most countries have kept rules to register an organization to keep export records. To capture significant global market share, use a transparent procedure.
Export Policy from Your Country
Exporting paperwork is one of the most complex procedures. You can use a professional export documentation and compliance partner to get this done for your shipments. Or, get an export assistance from your forwarding agent. Check export restrictions from your country as well. Sometimes, people end up getting their entire export stuck in customs by making minor mistakes.
Tariff Calculations and Rules of Origin
As per the import procedure of counties, they impose different tariff calculations on different countries and the goods that have been originated there. To transfer the ownership of the goods, these rates have to be paid at the port.
Benefits on Export Goods
Governments across the world help businesses to export to foreign markets and gain global currency in their banking system. Governments sometimes give export credit to exporters and help them improve processes involved in the export process for goods under sales contracts.
So, these are some of the steps and strategies you can use in your business to figure out the country to export your products and improve your country’s economy. Want to start exporting your goods to the global audience? Come, join hands with Four Turrets to grow your brand.