{"id":1089,"date":"2021-01-11T07:11:29","date_gmt":"2021-01-11T07:11:29","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1089"},"modified":"2021-01-11T07:15:43","modified_gmt":"2021-01-11T07:15:43","slug":"common-mistakes-in-import-export-business-and-how-to-avoid-them","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/common-mistakes-in-import-export-business-and-how-to-avoid-them\/","title":{"rendered":"Common Mistakes in Import Export Business: How to Avoid them?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Import Export trade is highly thriving venture. It provides extremely viable opportunities on a global scale. It is necessary for a business to obtain <strong><a href=\"https:\/\/swaritadvisors.com\/iec-registration\" class=\"text-primary\">IEC registration<\/a><\/strong>. It is one of the most flourishing trading businesses engaged in providing high profits or returns. However, there is always a certain drawback in every business and hence, the Import Export trade is also not smooth running all the way. It too has many challenges. And the trader can try its best to avoid the disadvantages of trading by being cautious. Therefore, this article will deal with the most common mistakes in Import Export Business and How to avoid them. <\/p>\n\n\n\n<p>There have been\nmany changes in the Import Export business such as, ease of doing business,\nopportunities at a large scale with the support of the government in promoting\nthe Import and Export of goods and services from one county to another, better\ntransport management and etc. But, due to some small mistakes, it leads to a\nhigher risk, resulting in reduction of profit margin that the business can earn\nthrough import export. Thus, such mistakes shouldn\u2019t be ignored. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37f35598a4c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37f35598a4c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/common-mistakes-in-import-export-business-and-how-to-avoid-them\/#What_are_the_common_mistakes_in_Import_Export_business_and_How_to_avoid_them\" title=\"What are the common mistakes in\nImport Export business and How to avoid them? \">What are the common mistakes in\nImport Export business and How to avoid them? <\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/common-mistakes-in-import-export-business-and-how-to-avoid-them\/#Signing_a_Contract_without_confirming_the_legitimacy_of_the_Seller_or_the_Buyer\" title=\"Signing a Contract without confirming the legitimacy of the Seller or the Buyer\">Signing a Contract without confirming the legitimacy of the Seller or the Buyer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/common-mistakes-in-import-export-business-and-how-to-avoid-them\/#Lack_of_Import_Export_Knowledge\" title=\"Lack of Import Export Knowledge\">Lack of Import Export Knowledge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/common-mistakes-in-import-export-business-and-how-to-avoid-them\/#Incompetent_Customs_Broker_increases_the_risk_of_losing_money\" title=\"Incompetent Customs Broker increases the risk of losing money\">Incompetent Customs Broker increases the risk of losing money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/common-mistakes-in-import-export-business-and-how-to-avoid-them\/#Understand_the_Regulations_of_the_Country\" title=\"Understand the Regulations of the Country\">Understand the Regulations of the Country<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/common-mistakes-in-import-export-business-and-how-to-avoid-them\/#Lack_of_Familiarity_with_Incoterms\" title=\"Lack of Familiarity with Incoterms\">Lack of Familiarity with Incoterms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/common-mistakes-in-import-export-business-and-how-to-avoid-them\/#Avoiding_or_not_paying_Attention_to_Foreign_Exchange_Rates\" title=\"Avoiding or not paying Attention to Foreign Exchange Rates\">Avoiding or not paying Attention to Foreign Exchange Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/common-mistakes-in-import-export-business-and-how-to-avoid-them\/#Insured_Goods_Imported_or_Supplied\" title=\"Insured Goods Imported or Supplied\">Insured Goods Imported or Supplied<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/common-mistakes-in-import-export-business-and-how-to-avoid-them\/#Conclusion\" title=\"Conclusion \">Conclusion <\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_common_mistakes_in_Import_Export_business_and_How_to_avoid_them\"><\/span>What are the common mistakes in\nImport Export business and How to avoid them? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are some of the common mistakes in import export business. These have been discussed below along with the ideas to how to avoid them:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Untitled-4.png\" alt=\"common mistakes in Import Export business\" class=\"wp-image-1092\" width=\"529\" height=\"511\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Untitled-4.png 869w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Untitled-4-300x290.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Untitled-4-768x743.png 768w\" sizes=\"(max-width: 529px) 100vw, 529px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Signing_a_Contract_without_confirming_the_legitimacy_of_the_Seller_or_the_Buyer\"><\/span>Signing a Contract without confirming the legitimacy of the Seller or the Buyer<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many of the small traders and manufacturers in India wish to expand their business globally by engaging in import export trade, but sometimes they do not give much importance to check the reliability of the importer. Due to such ignorance, the company might come under the risk of involving themselves into more losses. There are many companies that try to lure and inveigle the importer of exporter by providing fake company profiles and product portfolios. Understanding the customer is a right, be it on the domestic market or on the international market. Checking the legitimacy of the buyer or seller with the proper <strong>government officials<sup><strong><em><a class=\"text-primary\" href=\"https:\/\/en.wikipedia.org\/wiki\/Category:Indian_government_officials#:~:text=Chief%20Economic%20Advisor%20to%20the,Telecom%20Regulatory%20Authority%20of%20India\">[1]<\/a><\/em><\/strong><\/sup><\/strong> helps the business to minimise the risks factor and helps it to maximise the profit. Hence, signing a contract without confirming the legitimacy of the seller or buyer must not be done. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lack_of_Import_Export_Knowledge\"><\/span>Lack of Import Export Knowledge<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A common\ndrawback that the small and medium enterprises face is the conception that they\ncan easily supply the products in the international market without facing any\nlosses. But the lack of knowledge of the import export regulations would result\nin a great loss than expected. The International Chamber of Commerce (ICC) has\nimplemented certain terms to make sure that the import export business is\nperformed smoothly with fewer risks and at a high profit margin. It is must to\nunderstand the import export regulations before stepping into the world of\ninternational business so as to be on a safer side and avoid the risk of\npenalties.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Incompetent_Customs_Broker_increases_the_risk_of_losing_money\"><\/span>Incompetent Customs Broker increases the risk of losing money<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The customs\nbroker performs a duty to make sure that all the businesses done in the import\nexport industry adhere to the strict rules and norms of the government of both\nthe countries, i.e., the place of country of both the importer and the\nexporter. An incompetent customs broker would result in making great losses in\nthe business if the documents are not verified and met with the legal norms on\ntime. Therefore, it is import for businesses engages in import export trade to\ncontact a reliable customs broker after the verification from the competent\nauthority to make sure that all the requirements of the businesses are met with\nease with hassle free documentation and a customs broker is fully aware of all\nthe paperwork which is required to supply the products. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understand_the_Regulations_of_the_Country\"><\/span>Understand the Regulations of the Country<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One of the most\ncommon mistakes in import export business is that the exporter while supplying\nthe goods to the foreign countries is thinking that anything can be supplied to\nthe foreign countries. However, in reality it is not true. When a product is involved\nin an Import Export trade, certain countries have their own norms which allow\nonly few products and restrict the importing of other goods from another\ncountry. It is necessary for the exporter to understand these norms which would\nhelp him to save a large amount of money and its products, both at the same\ntime. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lack_of_Familiarity_with_Incoterms\"><\/span>Lack of Familiarity with Incoterms<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Incoterms means International Commercial Terms, which is one of the easiest terms defined by the International Chamber of Commerce (ICC) to make the export of import of goods from one country to another easier. The Incoterms uses abbreviations such as FAS for free alongside ship, FOB for free on board, FCA for free carries, EXW for ex-works and etc. If a business is willing to engage in import export trade, it is important to be aware of these Incoterms as it would help to overcome the risks of handling goods and providing a safer way for trade with the help of legal documentation, thereby saving enough money. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Avoiding_or_not_paying_Attention_to_Foreign_Exchange_Rates\"><\/span>Avoiding or not paying Attention to Foreign Exchange Rates<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another common\nmistake in Import export business is that many business owners tend to avoid\nthe foreign exchange rates while importing or exporting the products from one\ncountry to another. This sometimes occurs, because the traders overlook the\nrisk factors involved any only focus on the profit margins. But, in reality the\nrate fluctuations might be a reason to lose the enough margins. Thus, it is\nnecessary for the business owners to focus on the exchange rates when the\nmaterials are shipped on the 30 to 90 days credit terms and wait until the\nfluctuations in the foreign exchange rates get stabilised for smooth\ntransactions and gaining high margins. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insured_Goods_Imported_or_Supplied\"><\/span>Insured Goods Imported or Supplied<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The key factor\nin the import export trade which makes sure that the goods imported or supplied\nwill reach safely or if any damage or loss occurs, is to insure the goods\nbefore it is dispatched, either from the importer\u2019s side or from the\ntransportation authority. The insurance of the goods is advisable in the course\nof trading goods and services in a foreign market so as to secure the products\nwhich can be done easily through the documentations between the consignee and\nthe shipment company. If the goods are not insured, it might result in\nunbearable losses of the goods as well as the capital. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To become a successful buyer or supplier, it is important to avoid the common mistakes in import export business. It not only helps the businesses to easily reach the global market but also helps it in avoiding risks of losing money and instead earning profits in it.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/what-to-do-if-your-iec-application-is-rejected\/\">What to do if Your IEC Application is Rejected?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Import Export trade is highly thriving venture. It provides extremely viable opportunities on a global scale. It is necessary for a business to obtain IEC registration. It is one of the most flourishing trading businesses engaged in providing high profits or returns. However, there is always a certain drawback in every business and hence, [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[40],"tags":[163],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1089"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1089"}],"version-history":[{"count":8,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1089\/revisions"}],"predecessor-version":[{"id":1099,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1089\/revisions\/1099"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1091"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}