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Many designers dream of having an internationally recognised brand but exporting tends to be more demanding, financially, than selling in the UK. Orders may be larger, lead times are longer (putting a greater strain on cash flow) and the risks are more difficult to control especially if English is not the first language of the exporting country.
Negotiating the terms of an export sale is a matter of balancing the risks and the costs to you and your customer. At the same time, you may need to take into account the problems of handling payment in foreign currencies. A common querry is the payment terms is it FOB (free on board) or CIF - does price include Carriage Insurance and Frieght? Step by Step..... Before you confirm any type of order provisionally you must ensure both you and your cusotomers are perfectly happy to proceed further. You must therefore agree on common ground such as: The ‘terms of delivery', covering the division of responsibility for costs and for the risk of loss or damage in transit. Remember the passing of property or "title" as it is legally called does not occur until you have full payment of goods. This must be specified in your contract. Standard international terms are set in ‘INCOTERMS 2000' Ask potential customers what terms they prefer and what causes them problems. The payment method. The customer's creditworthiness will determine what payment method you are prepared to accept. Credit ratings can be reviewed by organisations such as Dun and Bradstreet. * The currency you will be paid in and remember to fix the currency rate at a given time. * The documentation - what are the contract terms, the delivery notes, insurance cover, payment terms. Price is so important - you must ensure that you negotiate with your overseas all additional costs which include Transportation costs may include the cost of special packaging and labelling. Documentation may involve special costs, beyond just issuing an invoice. You must provide all the documentation required by the purchaser and by the payment method you are using. Export invoices generally need more detail than those for UK sales. Goods for non-EU countries must be declared to Customs before they are released for export, so export invoices must be prepared ahead of dispatch. Insurance of the goods while they are your responsibility, and the cost of any credit insurance you purchase, must be discussed fully beforehand prior to any confirmation of invoice. Share this Article:                        Advertisement |
