How do you succeed in the complex business of international trade? Whether you’ve been trading internationally for years or are considering taking your first steps, in this blog New Horizon Freight Solutions offers you tips from the experts.
Electronic systems for filing, transferring, processing and exchanging customs information have become important tools for managing flows of information in complex trading environments. The most advanced web-based systems allow traders to submit relevant documents and pay duties online. When implemented effectively, such systems provide long-term benefits; they save time and money while streamlining procedures, limiting direct interactions with government officials and reducing opportunities for bribery.
Furthermore, the national economy can benefit from customs electronic data interchange systems, as they can help governments promote cross-border trade, combat fraud and track statistical information on foreign trade transactions.
Inspections on your business and goods—for tax, security, environmental, border control and health and safety reasons—is often necessary. How these inspections are carried out, including how cargo is selected for inspection, however, varies across economies. Inspections can be a serious obstacle to efficient and predictable trade when done with a heavy hand.
Over the years, customs administrations around the world, working in tandem with other border control agencies, have developed systems for establishing risk profiles that allow them to perform physical inspections in proportion to potential risks of consignments. Investing in equipment is another way to help expedite the processing of cargo.
National economies face special challenges in competing globally due to the size of the domestic market, diverse trade barriers (including technical, physical and fiscal controls at the borders, information asymmetries and regional externalities) as well as transportation networks connecting with trading partners. These economies can accelerate trade through efforts towards increasing border cooperation agreements and reducing the number of checkpoints so that cargo can move freely—without being stopped for customs or other inspections—until it reaches its final destination.
Deepening regional cooperation through such agreements may also lead to the creation of regional markets, generating economies of scale for local firms and increasing competition, increasing trade flows between cooperating partners, improving processes at the borders, correcting information asymmetries and regional externalities, and interconnecting transportation.
Inadequate infrastructure is one of the main burdens in international trade, and it can severely impact trade facilitation. Automation improves the reliability, predictability, safety and competitiveness of operations. Ports are land-intensive; automated cranes and vehicles in ports improve the productivity of stacking crane interchange zones, which allows for more efficient land allocation and use. Additionally, modern automated machinery is fast, economical and low-maintenance and it helps to avoid collisions and other physical damage.
A well-trained and educated workforce is equipped to increase the efficiency of the overall trade process. By developing workers’ competencies and skills, training can act as a catalyst for improved organizational productivity. Education and training facilitate the implementation of new policies as well as the development of the specific skills or knowledge required to make those policies operational.
Training can support the successful implementation of trade-related reforms by communicating relevant information about new programs and their requirements. Education and training can also improve communication, which is crucial for conveying pertinent information on new standards.
Have a sound, quality product. Then, do your homework. Prepare. Do market research and ask for help. Don’t just be opportunistic—develop a global strategy and identify markets where your product is needed and where customers can benefit. It’s all about good relationships, which we are committed to developing.