Saturday, May 4, 2013

Export Labeling Requirements and Full Container Loads

Another Key aspect of the search and learn tactic of export sales is the buyer overseas has no better idea of labelling requirements, government permits, etc than you do.  The idea that a third party somehow, anywhere can assist you in getting that right is delusional.   Further, if this "helper," whether official or consultant, is wrong, they have no skin in the game.  Too bad for you. Not only is labelling requirements, permits etc chaotic for the USA importer, so it is for the overseas importer too.  The only reasonable tactic is trial run.

The very best defense one has in importing, whether overseas or here, is precedent.  "This is what we did last time...!"  No one likes to contradict another easier precedent.  Turf battles and hurt feelings play a big part in government, government workers must tread lightly when contradicting earlier work. So while slightly, slowly growing minimum orders serves the importing testing the market, it at the same time serves the importer in testing the system.

But contradiction also can and will happen.  In USA importers can see what controversies have happened before in their product category by going to

http://rulings.cbp.gov/

and entering their product... say yours is from coca leaves, so you enter that,  and see

http://rulings.cbp.gov/index.asp?ru=m81368&qu=coca+leaves&vw=detail

Well, if you are exporting your buyer overseas will research such things too.  It is not your job to worry about the requirements overseas.  And if you are wrong, then you get blamed.  No good deed goes unpunished.

If I can bring in one small shipment, sure I am risking the $2000 or whatever, but all the "overseers" are at once not terribly concerned about such a small shipment nor am I risking much.  If it goes bad as an importer overseas, then I am not out too much.  As the exporter from USA, since I have been prepaid I am out nothing.  Either way, both sides want small test shipments upon which to build trade.

Oddly, the schools, export promotion entities, banks, all seem to presume export means full container loads (fcl).  Nothing could be further from real world experience and practice. The people who actually handle shipments, 3PLs, airlines, steamship lines realize most of their cargo is lcl (less than container load).

I have a little lesson plan on ocean freight that demonstrates how illusory the "full container load" savings benefit is, and I am happy to send a .pdf of the same to anyone interested.Feel free to forward this by email to three of your friends.


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