Guide To Exporting Requirements

Exporting is a way to increase your market size and profits. On average, by doing exporting, you could potentially grow your sales, more jobs are created and have access to global markets. Here’s a summary to help you understand everything about exporting requirements. To learn more in depth about guide to exporting, you can check out Beginner’s Guide to Exporting.

Exporting Requirements

Today’s small businesses can operate anywhere around the world and exporting becomes essential for them in order to grow. Exporting can be profitable, gain more access to consumers and businesses as well as diversifying your market opportunities. Other reasons why companies are doing export are to expand their sources of revenue, to enhance competitiveness and to achieve economics of scale. However, before venturing into export markets, there are six considerations that companies should consider which are:

Understanding Export Requirements Of Products And Services

Domestic Procedures

The export of products and services are regulated by the relevant authorities. However, these regulations can change from time to time. Thus, it is important for exporters to check with the relevant authorities.

International Procedures

Requirements to meet the international standards will bring at least three major benefits such as :

Increase competitiveness in the global marketplace
Translate into faster, easier access to foreign markets
Simultaneous acceptance to countries adopting common standards

Market requirements may vary between countries depending on the types of products. Among the requirements to be fulfilled are:

Labeling And Packaging
Products Safety
Sustainable Products
Product Design
Consumer Preference
Import Restrictions

Sourcing For Export Financing

Payment Instruments

All these payment instruments are applicable for both conventional financing or islamic trade financing.

Letter of Credit (L/C)
Advance Payment
Open Account
Documents Against Payment (D/P)
Documents Against Acceptance (D/A)
Open Account
Consignments

Other Useful Considerations

Free Trade Agreement (FTA)

FTA is a legally binding agreement between two or more countries where member countries provide each other more favourable treatment such as :

Lower or zero tariff for export of goods
Relaxed or removal of quantitative import restrictions
Hassle free custom procedures
Improved market access for various services
Easier entry for businessmen
Better terms for investment

International Procedures

Requirements to meet the international standards will bring at least three major benefits such as :

Increase competitiveness in the global marketplace
Translate into faster, easier access to foreign markets
Simultaneous acceptance to countries adopting common standards

Market requirements may vary between countries depending on the types of products. Among the requirements to be fulfilled are:

Labeling And Packaging
Products Safety
Sustainable Products
Product Design
Consumer Preference
Import Restrictions

Trade Barriers

Government placed restrictions on trade between nations which can be in the form of subsidies, tariffs, quotas, duties and embargoes.

Tariff Barriers: High tariff rates imposed by importing countries
Non-Tariff Barriers: Restrictions imposed by importing countries namely licensing, quotas, duties, embargoes aimed at reducing the quantity of imports in order to protect the interest of the domestic producer or to conserve the currency exchange.
Other Barriers: Language, political, cultural, religion, infrastructure and currency are other common barriers faced by exporters.

To have a better understanding on Malaysian export and other export compliances, you may click here.

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