Tips for Saving Money on Importing & Exporting Costs

Extra cargo shipping costs are never pleasant. Unfortunately, unexpected costs that may occur throughout the importing and exporting process are more common than people think. For those involved in the freight industry, it is beneficial to be well aware of all the regulations and requirements. This will help you protect yourself from being overcharged. In addition, if you are able to better manage your own import and export matters, you can likely save on costs. Here are some tips to consider during the import or export process in effort to save on shipping costs.

Importing

Know the Declared Value

Don't just assume that the purchase is the declared value of goods. The value of the goods typically depends on the shipment day, instead of when the order is placed or the supplier is paid. Therefore, it is helpful to pay attention to the dollar amount when the value of the goods is declared.

Benefiting from free trade agreements

Free Trade Agreements are always fluctuating based on the country’s trade relations. Therefore, when importing from countries that have a current Free Trade Agreement with your country, you will be able to save on expenses by dodging the duty-free charges.

Understand import audit rules

Import documentation can be pulled for customer reference up to five years post-shipment. If a mistake was found on the paperwork, you could be penalized. Be sure to store all your import records very carefully during this time period. Consider hiring a freight forwarder to reduce these concerns.

Exporting

Know your Incoterms

Incoterms can be quite complex, but it is crucial to completely understand the terms that you are agreeing to so you will not be held responsible for more than you are supposed to or hit with unexpected fees. Exports should be well aware of all their obligations, rights and expenses that are inherent in the use of a specific Incoterm. It is in your best interest to know the exact costs associated with the exported goods to avoid overestimated prices.

Research export location

It is helpful to be well versed in the specific countries of import and export legal requirements. When you take on a new area, learn how to comply with safe cargo arrival at its destination. Your goal should be to avoid documentation issues at customs, as this will typically just cost you more money. Researching the exportation process in each country is well worth your while to keep down shipping costs.

Undergo paperwork

With each country’s unique set of import regulations that require different licenses and customs paperwork, you may have to obtain certain stamping, legalizations or original documents (as opposed to copies). Avoid waiting time and money by being prepared with the exporting country documentation requirements. Contact your NJ importers and exporters insurance agent to learn how to protect your business through this process.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we help our clients decide which of these options is best for them based on their current situation and risk factors.  Contact us at 1-855-977-1842 or insureme@dsayles.mysites.io for a consultation!