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FAQs

1. What are Incoterms, and why are they important?

Incoterms (International Commercial Terms) are standardized terms used in international trade to define the responsibilities of buyers and sellers regarding the delivery of goods. Understanding and using Incoterms correctly is crucial for clarifying responsibilities, avoiding misunderstandings, and minimizing risks in international transactions.

2. How do I find potential customers in foreign markets?

Finding potential customers in foreign markets involves market research, networking, attending trade shows and exhibitions, leveraging online platforms and directories, working with local partners or distributors, and seeking assistance from government trade agencies or trade associations.

3. What financing options are available for exporting?

Financing options for exporting may include trade finance, export credit insurance, government-backed export financing programs, letters of credit, and export factoring. It's important to explore and select financing options that best suit your business needs and circumstances.

4. How do I handle documentation and customs procedures for exporting?

Export documentation and customs procedures vary depending on the countries involved and the type of goods being exported. Common export documents include commercial invoices, packing lists, certificates of origin, bills of lading, and export licenses. Working with experienced freight forwarders or customs brokers can help navigate these processes efficiently.

5. Do I need any special licenses or permits to export?

The requirements for exporting vary depending on the type of goods being exported and the destination country. Some products may require export licenses, permits, or certifications. It's important to research and comply with the export regulations of the countries involved.

6. What happens if there are issues with customs clearance?

If there are issues with customs clearance, such as missing or incorrect documentation, customs duties or taxes owed, or goods being held for inspection, we as your freight forwarder or customs broker will work to resolve the issue on your behalf.

7. How does customs clearance work?

Customs clearance involves the process of declaring and releasing goods for import or export. It includes submitting required documentation, paying duties and taxes, and undergoing inspection by customs authorities to ensure compliance with regulations.

8. What information do I need to provide to a freight forwarder or customs broker?

You will typically need to provide details such as the nature of the goods being shipped, their value, quantity, weight, dimensions, origin, destination, and any special handling requirements. You may also need to provide documentation such as invoices, packing lists, and certificates of origin.

9. How do I choose the right freight forwarder or customs broker for my needs?

When choosing a freight forwarder or customs broker, consider factors such as experience, reliability, reputation, geographical coverage, services offered, and cost. It's important to work with a company that has a proven track record and understands your specific requirements.

10. What’s the best mode of shipping, sea or air?

Technically both sea & air shipping modes are widely used depending on your & your customer’s requirement. Generally if the goods are of high value and in time bound in terms of urgency then you can choose air other sea is always the more economical option.

11. If my cargo falls under Hazardous/Dangerous Goods classification, can I still ship it?

It actually depends on the DG class of your goods, so share MSDS of your products with your Freight Forwarding for him to check with the carrier if they accept the goods, only then you can be sure to ship it.

12. How to get IEC code or Import Export Code?

Incoterms (International Commercial Terms) are standardized terms used in international trade to define the responsibilities of buyers and sellers regarding the delivery of goods. Understanding and using Incoterms correctly is crucial for clarifying responsibilities, avoiding misunderstandings, and minimizing risks in international transactions.

13. How do I know if my product falls under any Govt Regulatory body or agencies?

To know for sure, we request you to share the Product description, technical name, end use purpose, country of origin and it’s HS code if you have it. After thorough study our team can guide you properly with the process.

14. What is Equipment Type Approval (ETA)?

Equipment Type Approval (ETA) is required to promote the import of wireless devices in India, this approval shall be obtained by the WPC department. If a product isn’t certified by WPC and functions in the de-licensed frequency band then they must obtain an ETA certificate. The scope of Equipment Type Approval (ETA) from WPC covers mobile phones, RFID, Bluetooth devices, Wi-Fi technology, and others.

15. What is BIS Certification?

BIS is an acronym for Bureau of Indian Standards. BIS is a national standard-setting body responsible for developing standardization, marking and quality certification of goods.

16. What is BIS Certification for import?

In India, all imported and manufactured products are required to meet Indian standards as specified by BIS. It ensures that products brought into India from other countries adhere to the specified Indian standards and regulations. This certification is mandatory for various imported goods, including electronics, machinery, chemicals, and more.

17. What are the types of BIS Certificates for Importers?

There are two types of BIS certification for importers depending on the product type.

1. The foreign manufacturer certification scheme (BIS FMCS)
2. Compulsory registration scheme (BIS registration for electronics and IT products)

18. What is Direct Port Delivery (DPD) ?

Direct Port Delivery (DPD) facility was introduced to create Ease of Doing Business for its customers. DPD facilitates a container to be picked up from the port terminal for customs formalities.

19. Who is an AEO (Authorised Economic Operator)?

An AEO is a business entity involved in international movement of goods requiring compliance with provisions of the national Customs law and is approved by or on behalf of national administration in compliance with World Customs Organization (WCO) or equivalent supply chain security standards. The security standards are detailed in World Customs Organ- isation Safe framework of standards [WCO SAFE FoS], which is the basis of the Indian AEO programme.

20. What are the benefits of being an AEO to Importers & Exporter?

The benefits of AEO include faster processing and clearance of cargo, deferred payment of duty, direct port delivery/entry, and benefits under Mutual Recognition arrangements (MRA).

For more information on any of these questions, please get in touch with our team via call/whatsapp at +918655441444 or write us an email mktg@thakurshipping.com

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