Looking to start exporting products to earn extra revenue for your business? Exporting can help your company expand it’s sales and therefore profits.
The world is a big place and there can be huge demand for the products that you manufacture and sell, this presentation can help you get started on your exporting journey.
Presentation title – Think before you ship: the basics of exporting UKTI Webinar Presenter: Jamie Hill UKTI Introduction: Tim Maloney Overseas Trade Services
UKTI’s E-Exporting Programme Global growth of e-commerce 1. Opportunity 2. Advice 3. Events Opportunities in 360+ global marketplaces 13 E-Commerce Advisers UKTI presence at industry events Improved-Commercial Terms E-Commerce Business Network. i.e. World Retail Congress, Spring & Autumn Fairs, London Fashion Week Brands and Retailers can benefit from UKTI’s E-Exporting Programme in 3 ways.
UKTI’s E-Exporting Programme Find out more on: www.gov.uk/e-exporting or email: firstname.lastname@example.org
What I will cover 1. Why should you export? 2. Some facts about shipping 3. How to get started 4. Points to consider 5. Shipping terms 6. Think before you ship! 7. What do I need to begin exporting? 8. Side notes
Why should you export? Increase in overall sales Increase in revenue Increase in client base Greater brand awareness of your products and company Can lead to further opportunities Worldwide expansion If products sell well it could lead to you opening further offices or depots overseas
Shipping Facts 1. Shipping gives us 90% of our worldwide trade 2. Shipping has quadrupled in size since the 1970’s 3. Over 100,000 working vessel’s on the seas 4. Heard of Microsoft? What about Maersk shipping line? • Maersk lines have the similar revenue to Microsoft, with approx $60 billion per year in sales. 5. A mid-size-container ship can carry over 7000 containers 6. Shipping by sea is a very efficient way of moving your products, the system works like clock work, on average just 20 crew to a vessel 7. Shipping is the Greenest form of transport – emissions about 1/10th of trucking 8. Large companies now opening up base depots in ports 1. Next, Marks & Spencer etc. to cut down on inland transport costs.
How to get started 1. Locate a freight forwarder 2. Obtain quotes for shipping 3. Locate an overseas agent in country of destination 4. Speak to UKTI to find out more information about what is needed in country of destination 5. Agree payment terms with buyer 6. Figure out the logistics involved such as collection, loading, etc.
Points to consider 1. What paperwork will you need to export? Bill of lading, etc. 2. Are you vat registered? You will need to apply for EORI 3. Will your packing be acceptable in the country of destination? 4. Will your products be allowed in to the country of destination? 5. Will your buyer incur local charges? 6. Will you pre-pay local charges and freight? 7. Have you included and factored in freight costs? 8. Do you need an export licence? 9. Transit times, will you meet a deadline?
Common-shipping terms • LCL – Less container load / Shared container : This is where you pay just for the space that you take up in the container • FCL – Full container : This is where you pay for all the space in the container • 40′ or 20′ – These are the most common container size’s available – the actual inside length is slightly shorter • RO RO – Roll on Roll off – this is the most common method for shipping cars around the world • FOB – Free on board – this where products are sold not including freight price • C&F – This is cost & freight – where items are sold including the freight price • UCR – This stands for Unique Consignment Reference – you will need to present this to the shipping line that you are exporting with.
Think before you ship 1. Will your products be allowed to be imported in to the country that you are shipping to? 2. Research your export market. 3. When will you be paid by your client? 4. Marine insurance ! Are you covered? GET INSURANCE IN PLACE 5. Is your packing suitable for the country of destination? • e.g. are you using wooden pallets? If so, has the wood been treated? 6. Will the local charges in the country of destination be costly? You not want to upset your new overseas client if they get a big bill in! 7. EORI / UCR – Get your numbers in place for exporting. 8. Do you have all the relevant information to present to the shipping line? Consignee address, name, contact details etc.
What do I need to begin exporting? • Do you need an export licence? • UCR number • EORI number • Shipping notes • Bill of lading • Packing list • Purchase invoice • Commodity codes • Full-buyers details
Side Notes Marine insurance – This is very important – Shipping lines only offer a very limited insurance cover, if something was to happen to your goods or the vessel sank etc. then you will be mostly responsible for the value of the items. What is worse, if the vessel does indeed sink and salvage needs to be put in place then the shipping line can then pursue you for contribution of fees towards the salvage costs. Most freight forwarders will offer you marine insurance – PLEASE MAKE SURE THAT YOU HAVE THIS IN PLACE BEFORE SHIPPING TO PROTECT YOU AND YOUR CLIENT. Loading – If you require collection of a pallet or crate and you do not have facilities to lift the items then let the forwarding company know, they will send in a basic unit for collecting otherwise, let them know and they will add a tail lift for collection. The same applies for a full-container load, if you not have a ramp how will you load? Will the container need to be lowered to the ground?
Thank you for watching. Any questions? Contact me on Twitter – @JamieHillUK