Disclaimer: The views and opinions expressed in the following article are those of the guest author and do not necessarily represent or reflect Mentor Works Ltd.
If you don’t know the rules of the game, how can you expect to compete fairly and win?
Let’s not kid ourselves, exporting is a very competitive game, played in a wide-open international arena. Keeping your blades sharp, knowing the rules, and knowing how and when to apply them to your advantage will make you an export winner.
Luckily for Canadian exporters, most of the essential rules are readily available and can be learned relatively quickly.
Incoterms® 2010 Terminology Defines Export Responsibilities
Are you negotiating a sale to a new customer in Asia or Europe or South America? You can bet that when your customer says – “Is that selling price CIP Destination?” he knows what CIP Destination means. The big question is, do you?
Do you know if the selling price takes into consideration all of the transportation, documentation and risk that you are agreeing to with a CIP sale?
Incoterms® 2010 gives Canadian exporters a common language with customers around the world. They are the globally recognized rules to international trade, and even a basic understanding, will let you know which questions to ask and how far you can negotiate with your customer to ensure a win/ win sales contract.
Knowing these terms of sale helps to secure an accurate quote from your global logistics service provider. When you ask your freight forwarder for a DAP Venice, Italy quote, both of you will know what costs and responsibilities are yours and what will be for your customer.
Ever wonder who is responsible for unloading goods off the barge, then taking them up three flights of stairs to an old building in a medieval city? Incoterms outlines these responsibilities in a transparent and universal way.
Cargo Insurance Protects Against Liabilities
What does the ‘I’ in CIP stand for? Ah, yes. Cargo insurance.
Hand in hand with Incoterms® 2010 training goes the need for a basic understanding of cargo insurance. But who knows what type of insurance is required – and what types of cargo insurance are readily available?
Carriers limit liability. Trucking companies will pay $2.00 per pound (C$ 4.41/kg) for loss or damage, but do you know:
- That you must prove liability and there are lots of exclusions?
- To what extent ocean carriers limit their liability?
- The difference between a carrier’s liability and cargo insurance?
- That even after your shipment arrives safely at its destination a General Average declaration could cost you hundreds or thousands of dollars?
- If an exporter can rely on a carrier’s liability to ‘make his customer whole’ after a shipment goes poorly? (The short answer – No!)
Understand Canada’s National Exporting Laws
Remember too, as an exporter, you are responsible for compliance with all of Canada’s laws relating to export. Even though your freight forwarder will certainly help you with your export declaration, it is the exporter’s responsibility to know the rules and to comply.
Can you ship to that country? Does your shipment need an export permit? Do you even need an export declaration? Essentials of Exporting training will help discover where to find these answers.
Build Exporting Knowledge with CIFFA Online Essentials Workshops
Who knew there were so many rules?
Incoterms® 2010, Cargo Insurance, and Export Essentials are basic tools that must be sharpened and ready to pull out of your exporter’s toolkit when you need them. Making a simple investment of time will increase your business’ export competitiveness and give you an edge in the international trade arena.
Each topic can be taught through two webinar sessions, each session lasting 1.5 hours. Are you ready to invest in yourself, your business, and your exporting potential? Use the links below to learn more about export training programs that will bolster your abilities.
CIFFA Online Training Workshops for Exporters
To view more information and sign up for an export training webinar, please use the following links:
Incoterms 2010: August 9-10
Transborder- Shipping to the U.S.: September 27-28
Essentials of Exporting: November 8-9
Letters of Credit: November 22-23
Cargo Insurance: December 6-7
Guest Blogger: Ruth Snowden
Ruth Snowden became Executive Director of the Canadian International Freight Forwarders Association (CIFFA) in 2008 after a 30 year career in freight forwarding.
The Canadian International Freight Forwarders Association (CIFFA) represents some 250 small, medium and large freight forwarding companies in Canada, and has 150 Associate Members offering products and services to regular members. Please visit www.ciffa.com for details on CIFFA’s robust education programs including training on Transport Canada’s Air Cargo Security, Dangerous Goods, Essentials and other web-based workshops, and Certificate & Advanced Certificate programs. All CIFFA training is available to importers, exporters and third party service providers.