During this global pandemic, there is a higher chance of delivery delays, mostly due to confusion around complex and changing customs requirements, as well as problems with border clearance documentation. To prevent these avoidable situations, here are 5 tips to ensure your products get through customs and into your customers’ hands seamlessly.
1. Look before you leap. Understand all your target market’s rules and regulations before sending your first shipment.
Make sure you understand all the local market’s rules and regulations before you consider sending your first shipment otherwise you might end up with unexpected licensing costs, delays to your customers, or even having your shipments turned back at the border.
2. Let local customs authorities help you. Most Asia Pacific countries offer free government advisory services for SMEs.
SMEs face increasingly complex regulations throughout the world. Even once a product has entered a country, it may be subject to regulations from a range of sources. Taking advantage of freely-available policy advice, they can stay fully compliant and maintain a level footing with far larger competitors.
3. Use end-to-end logistics services for B2C exports. Work with a door-to-door logistics provider for greater simplicity
When exporting direct to consumers in other countries, SMEs will usually adopt a model that’s known as “Duty and Tax Paid on Import”, thus the SME is responsible for all customs compliance in the country they’re exporting to, rather than the consumer. However, this usually means that the SME has to deal with a range of different agents to handle duties, taxes, and other customs clearance procedures. Working with a single door-to-door agent like DHL Express simplifies matters if a dispute or challenge occurs at any stage of the process.ฃ
4. Consider a B2B sales model: Selling to local distributors can help boost higher volume and market shares
Many of the customs hassles associated with B2C models can be avoided by exporting to a local distributor. Distributors can typically provide more industry-specific advice than authorities may be able to, as well as allowing SMEs to take advantage of existing processes that can speed up and streamline entry into new markets. While this may mean lower profit margins, it enables SMEs to confidently ship in higher volumes and build market share.
5. Don’t be afraid to go big
With a working knowledge of the customs and regulation practice specific to their products, SMEs can expand faster than ever before into new territory. Develop a baseline understanding of what customs will require of you, work with your logistics provider to fill the gaps, and focus on getting the process right before you start making promises to consumers. The same fundamental lessons can be applied to any country, making regional and global expansion surprisingly fast and simple for SMEs.
