If you’re going to be exporting goods internationally as part of your business, then you need to learn as much as you can about the exporting of goods. There is a lot involved in the process of exporting goods to other countries, and you can’t simply ship items off without following very specific guidelines. They must be packaged in a certain manner, in special containers, and much more. You could find yourself facing some very hefty fines if you fail to follow all the guidelines, and in some cases, you could even face jail time. Here is an overview of the types and number of exports there are, and more, to help you gain some important knowledge.
Indirect Exporting
One method of exporting is indirect exporting, and it entails exporting items internationally through a third party. The third-party with which you would have an agreement would handle every aspect of the exporting of your goods. From storing your goods in their warehouse to preparing them for shipment, completing the proper documentation, and more, the third party would do it all.
Types of Indirect Exporting
There are two types of indirect exporting: occasional and active exporting. Occasional is just like the name implies, a company would only contact their third party to perform shipments on a very occasional basis. Perhaps for unexpected and periodic shipments, or the company only sells goods internationally from time to time.
Active exporting is when a company decides to use a third party to manage international shipments on an ongoing basis. Orders could come in daily that the third person must prepare and ship. An active indirect exporter decides to make a full-time business of exporting but simply doesn’t want to handle the sometimes frustratingly complex process of exporting packages themselves.
Direct Exporting
This type of exporting does not involve a third party, as the company that manufacturers the products being sold to international customers handles all the exporting themselves. A company becoming involved in direct exporting usually creates a special department that is in charge of all exporting duties. Since exporting goods to other countries is very tedious and must be handled strategically to ensure all guidelines and laws are followed, all employees in exporting departments must be thoroughly trained in every aspect of international shipping. Relationships are usually developed with customers in other countries, which makes the entire process go more smoothly.
Which is Better: Direct or Indirect Exporting?
This is a matter of opinion, and many companies will decide which type of exporting works best for them. Many large corporations that deal with exporting on a regular basis will opt to hire a third party to handle their exporting, as they simply don’t want to create and manage a specific department for exporting, unless they are able to do so for an extremely low price. However, the price of hiring a third party is not only less expensive, but there are additional benefits, as well.
Smaller agencies often opt for direct exporting because they either have extensive knowledge of the exporting process, or they simply don’t have enough funds yet to hire a third party to handle it for them. However, many smaller agencies that receive a large number of international orders eventually hire a third party, because it often becomes too time-consuming to manage every aspect of running a business as well as exporting, which can be tedious. Export guidelines are very strict, and if even one tiny error is made, it could result in penalties hefty enough to potentially put a smaller company out of business.
Advantages of Indirect Exporting
Many companies that prefer indirect exporting do so for the following reasons, which they feel offer some great advantages. There is usually less risk involved in indirect exporting, as third-party agencies are usually experts in all types of exporting, including military, so the company is less likely to be penalized for failure to adhere to international shipping laws. Another advantage of indirect exporting is the fact that the company can save a great deal of money and space, as a special exporting department isn’t necessary. Therefore, there is no need to hire employees or purchase equipment and supplies.
Companies dealing with exporting also don’t have to learn all the rules and laws of exporting, since the third party will handle everything. That can free up time and money to be used on other important tasks.
Finding the Right Shipper
If you’re going to be exporting on a regular basis and you’ve decided that indirect shipping is best for you, then finding the right shipper is important. Just choosing any professional shipper at random isn’t a good idea, because you need to know that the company you opt for is not only knowledgeable and experienced, but also that their rates are affordable and they’re dependable and honest. By choosing a top-notch company, you increase your chances of having a pleasant experience.
If you opt to outsource your international shipments to a manufacturer and shipper that specializes in managing every aspect of international shipments, you need to do your research on prospective companies ahead of time. It is imperative that you choose a shipper that not only offers a secure product, but also understands the requirements of shipping that the United States military requires, so you can rest assured that everything will be handled properly.
Kaiser & Johnson is an experienced third-party shipper that has numerous years of experience handling exporting and various types of shipping for companies everywhere. Kaiser & Johnson would be pleased to take you on as a customer and provide you with the top-notch service that they provide for their multitude of other customers. So, give Kaiser & Johnson a call today to get things started so you can stop worrying about international shipping and the many overwhelming guidelines that there are, so you can start focusing on running other aspects of your business.