Mistakes are part of our life and so, in case of trade as well. If you can amend or correct the flaws that you have done, then it is better. But if you are not able to amend the mistakes in your life, then you can face several problems. The same goes in the case of import-export business. There are several complications that are associated with the trade. Presently, exporters send their objects overseas which require lots of screening. It is very important for the exporters to comply with export laws and regulations.
Though exporters try to avoid certain mistakes, but there are certain faults that if not corrected, can give rise huge penalties. Some of the exporters think that it is not always required to screen the trade partners and maintain rules and regulations. But in the true sense, a small mistake from the side of importer or exporter can result in paying huge penalties and fines to the government. Sending the products to the illegal end-user or misinterpretation and the fact are some of the mistakes exporters often do when in the import and export business.
HERE ARE SOME OF THE MISTAKES THAT CAN BE AVOIDED TO MAINTAIN LEGAL TRADE.
- Ignorance is considered no excuse under the law. This saying is true in the case of the export compliance. As an exporter, you can have to know the business properly before sending your products overseas. It is the right of the exporter to screen the products and partners to maintain compliance with export laws. It is not enough for the exporter to know that products are EAR99. You should know various things that who is buying the items, who are doing business with the exporters and who are exporting. You should know all the details sending your products to other business entities overseas.
- No business is complete without the help of management. It is obvious that all the knowledge in the world can benefit you in operating the business. It is the duty of the top management to support your business. Taking help of the management is very important to make your export business complaint with the trade rules and regulations. Each and every employee working in the company should have knowledge about export compliance and know how to deal with it.
- Sometimes, people traders think that appropriate training is not required when exporting goods, mainly the defense items and arms. Lack of training is very important for proper implementation of laws and regulations. Training and teaching will not only empower the employees working in the company, but help in taking the right decision. Studies have shown that right knowledge is important to make the company more productive.
There are some of the vital mistakes that should be avoided by the exporters in order to avoid penalties. Mostly, in the case of exporting defense items, it is very important to comply with ITAR compliance. Make sure that you are exporting items to the right destination.