David’s Top Tips for ‘Growing Global’

1. 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.”

2. 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.”

3. 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.”

4. 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.

5.

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 with the Chamber of Commerce this September. Visit Coventry and Warwickshire Chamber of Commerce website for full details and to secure your place.