Kerim Allam

Many exporters, think that freight forwarders and customs brokers are two names for the same thing. This is further from the truth. Freight forwarders are defined as experts connected within the supply chain who concentrate on the logistics and physical transportation of cargo. They are in touch with any entity in the exporting process who handles or is aware of a shipment moving via truck, boat, plane or a combination thereof. In other words they are as “travel agents for cargo,” a third-party entity who sets a trip up, and then, for a sum of money, will facilitate that entire trip, including paperwork and documentation. On the other hand Custom broker is defined as a private individual, partnership, association or corporation licensed to assist importers and exporters in meeting country government requirements governing imports and exports. Brokers submit necessary information and appropriate payments to CBP on behalf of their clients and charge them a fee for this service. They must have expertise in the entry procedures, admissibility requirements, classification, valuation, and the rates of duty and applicable taxes and fees for imported merchandise.

South Africa the largest trading partner of Europe. The region is a free trade area and its trade policy with the EU is ruled by the Trade, Development, and Co-operation Agreement (TDCA). Most food and drink products imported from the EU have no restrictions.Most regulations are for food and drink that are imported from countries outside the EU. In this case you may need:- health certificates- import licencesFood which is intended for human consumption must meet the general food safety requirements of European Union law. Food must not be unsafe, this means: (injurious to health, unfit for human consumption).

Exporters may require a third party, usually a bank, to guarantee payment of a bill of exchange drawn on an importer under a trade contract. This action, known as "avalisation", can be provided by a bank on behalf of the exporter upon request. By endorsing the bill on the back, the bank commits itself unconditionally to pay should the drawee default. An "avalised" bill substitutes the bank's risk for the importers risk thus providing the exporter with assurance that payment will be met. This bill can subsequently be discounted or used to negotiate better credit terms thus can enhance the trading relationship with the importer. Whereas an avalising bank assumes the credit risk of the importer, it plays no part in any independent document examination role and thus may not offer any comfort to the exporter.

Any business venture involves certain risks and exporting is no exception. Exporting involves not only the normal risks of a domestic sale but also the risks associated with doing business in a foreign country. Most of the risks from exporting can actually be minimized or even eliminated with careful planning and effort. Simply by knowing what the potential risks are, a potential exporting business will be able to make a better decision. So, as for me, there are some risks of exporting such as: the demand for the product in the export market may dry up before profits are realized; competition from other similar products in the export market; export business usually requires additional financing to fund the export business, which may flop; longer wait for payments and difficulty in collecting export proceeds; possibility of non-payment for products received by importers; expense of developing new promotional materials, which may not improve product awareness; product may not reach the export market due to transit bottlenecks such as pilferage, theft and other non – tariff barriers; company may face litigation if the product is harmful to consumers; political and cultural risks may affect the demand for the product.