Beginner's Guide to Exporting. 4th Edition.

3 Beginner’s Guide To Exporting 1.2.5 Export Requirements and Compliance • Conform to mandatory international standards, accreditation and certification • Comply with export and import requirements (permit, licensing and quota) • Adhere to packaging and labelling requirements of the importing country 1.2.6 Legal • Comply with international legal requirements • Understanding of Free Trade Agreement (FTA) • Awareness on Intellectual Property Rights (IPRs) • International Sales Contract • Knowledge in arbitration and dispute settlement 1.3 MYTHS OF EXPORTING • Exporting is too risky – With proper training and advice export risks can be adequately mitigated. Selling anywhere has risks even in the domestic market particularly risk of non-payment. This risk can be mitigated by using internationally accepted terms of payment e.g. Letter of Credit • There is only one (1) term of sale – There are different types of terms of sale to suit the different modes of transportation • Avoid unfamiliar or difficult market – The key to selecting any market is proper marketing research and sufficient preparation • Too small to export – There is an array of market entry strategies to suit various types of exporters and target markets. Whilst large companies typically account for far more total exports but the real fact is that vast majority of exporting firms in most countries are small and medium- sized enterprises (SMEs) • Cannot afford to export – There are various [financial and non financial] efforts and schemes by the government to assist e.g. trade financing schemes to assist and exporters’ development programmes • Cannot compete with large overseas companies – Other competitive factors play a large role including intellectual property (IP), quality, service, and consumer taste - these may override the size of the company • Exporting is too complicated – The steps in exporting are systematic and its process and practice is consistent worldwide. There is an abundance of resources available online that helps the first time exporter about all ins and outs of exporting GETTING STARTED CHAPTER 1