How do I know if my product is exportable?

April
30, 2021

5 min read

As the owner of a business that has already conquered the geographic market in which it is located, you are probably wondering how to take the next step to look further and take your venture to other parts of the world. When you ask yourself this question, you should carry out the research corresponding to the export requirements, especially what they are and if it is a good investment.

Other basic aspects that you should take into account are the market research of the new place, who are your competitors in that country, the added value of your product or service and an approximate number of local consumers who will be willing to prefer your brand over of the national ones.

According to data from the National Institute of Statistics and Geography (INEGI) , in February 2021, the value of merchandise exports reached 36.19 billion dollars, which meant an annual reduction of 1.1%. Those directed to the United States decreased at an annual rate of 2.9% and to the rest of the world they increased 4%. Companies have the opportunity to recover the figures while they can diversify their business and improve the presence of Mexican products in the world.

In this context, Ilan Epelbaum, general director of Mail Boxes Etc. , shared two aspects that are essential to review to know if your product or service is exportable.

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1. What are the requirements of the country where you want to export?

To know if you can export your product or service, you must investigate the requirements of the country of destination. Check if Mexico has international agreements or treaties with the nation where you want to go. Also, don’t forget the regulations that this could entail.

International treaties can benefit certain countries with lower tariffs depending on the type of product and the market they come from, these are called tariff regulations. The agreements also have different specifications regarding non-tariff precepts, such as permits or certifications necessary to control the flow of goods depending on the origin and destination.

2. Requirements by product

What kind of paperwork should you do depending on the product you are going to export? You must review these clauses in each nation. For example, if you want to sell fruits in the United States, you must take into account that for these types of items to leave Mexico, they must comply with certain documents from the Ministry of Agriculture and Rural Development (SADER). In addition, what you sell must be legal in the destination or that the species is not considered invasive for the native flora and fauna.

According to the director of Mail Boxes Etc. , it is elementary:

• Prepare a detailed export plan for new shipments, that is, a document containing the necessary and indispensable points that must be met to export.
• Create an international purchase-sale contract. If the client from another country is a company, it will be very useful to support the transaction with a document.
• Make clear the Incoterms, which are marketing rules that specify in which part of the process the producer is responsible for the batches and from where the importer is. For example, it may be that an Incoterm is negotiated in which the buyer will take care of everything, that is, they will hire a service to pick up the product at the manufacturer’s warehouses and manage everything until it is taken to their warehouses, or one can be agreed in the one that arriving at the customs of the destination country, the importer takes charge.
• Delimit the logistics chain in accordance with the Incoterm. Depending on the destination country and the products you are going to export, you should consider what type of transport the items will take.
• Secure the shipment. It is important to contract an international freight that protects the merchandise. This must also be negotiated with the buyer. If he does not agree, it would be good if you hired him in the parts of the process in which the merchandise is your responsibility.
• Before agreeing to any transaction, it is important to review and confirm the correct export documentation.

Is it possible to export without complications?

Due to some bad paperwork, the merchandise could get stuck in customs and the export task can become complex and expensive. For this, it is important that you approach the chambers of commerce, the Ministry of Economy and government agencies that promote exports or even a customs agency from which you can receive advice.