Post by Trade Coach on Nov 4, 2013 8:27:14 GMT 1
As international businesses take advantage of the revenue-generating potential that cross-border trading offers, DHL Express Sub-Saharan Africa vice-president, Oliver Facey says international trade remains a complex process in Africa, which if not managed correctly, can create unfavourable situations for businesses and their partners, particularly small to medium enterprises trying to take advantage of the global market.
According to Facey, entrepreneurs who wish to establish a business in Africa need to have a clear understanding of the trade regulations and implications when moving shipments across the various borders of the continent and abroad.
Although the latest World Bank Doing Business 2013 report revealed that Sub-Saharan Africa boasts of the largest improvement in the rankings from last year as a result of the business regulatory practices in various countries converge; Facey says the perfomance of the region leaves much to be desired because of the challenges that local businesses face in terms of understanding document requirements and customs procedures.
To this end, the DHL Executive said businesses need to have an understanding of customs requirements applicable to their product’s origin and destination in order to minimise any delay and extra costs at border clearance, which could adversely affect their profits and expected transportation service levels.
For smooth shipment process on the continent Facey said entrepreneurs must know that: “…customs usually require the importer or exporter to register as an importer/exporter before transacting internationally. Following this, businesses need to ensure they have the correct paperwork.”
“Typical documents that are required includes certificates stating the proof of the products origin as some goods could attract preferred rates of duty depending on their country of origin. There are also goods that require inspection and release by other government agencies, such as The Health Department, so it is imperative to enquire whether the goods being shipped from specific countries require additional permits.”
Invoices, he said also need to be provided and these need to be in a specific format and include the purpose for the product (commercial or non-commercial) and the proof of their values.
“Another aspect to consider is whether there are any special requirements for the specific country the product is being shipped to, such as temporary imports / exports and restrictions. There are prohibited and restricted goods that can only be shipped in and out of the country under a permit or license, such as plant products which require a phytosanitary certificate or medicine and scheduled substances which usually need a medical control council certificate,” he added.
To further guarantee a smooth shipment process for both the business and customer, Facey recommended that companies should ensure traceability and transparency in the transportation process.
“Not only will this help keep the customer informed, it will also assist the company prevent delays should there be a stoppage in the process.”
“With the knowledge of a particular stoppage, a business can then help resolve the issue quickly and efficiently, as in some instances, the delay is likely solved by supplying extra data or forms,” he explained.
He also advised business owners to seek assistance from appropriate service providers that can support and advise according to a business’ individual needs.
“This enables good local knowledge and the assistance with the clearance process and procedures. They will also ensure that all requirements are met and understood before shipping, as well as manage expectations and navigate customers through some time very difficult procedures.”
“By fully understanding the processes and terminology involved with entering the different markets, African businesses can build a long-term foundation for even more successful international trade,” Facey said.
Source: www.ventures-africa.com/2013/10/africa-opportunities-abound-complexities-dhl/
According to Facey, entrepreneurs who wish to establish a business in Africa need to have a clear understanding of the trade regulations and implications when moving shipments across the various borders of the continent and abroad.
Although the latest World Bank Doing Business 2013 report revealed that Sub-Saharan Africa boasts of the largest improvement in the rankings from last year as a result of the business regulatory practices in various countries converge; Facey says the perfomance of the region leaves much to be desired because of the challenges that local businesses face in terms of understanding document requirements and customs procedures.
To this end, the DHL Executive said businesses need to have an understanding of customs requirements applicable to their product’s origin and destination in order to minimise any delay and extra costs at border clearance, which could adversely affect their profits and expected transportation service levels.
For smooth shipment process on the continent Facey said entrepreneurs must know that: “…customs usually require the importer or exporter to register as an importer/exporter before transacting internationally. Following this, businesses need to ensure they have the correct paperwork.”
“Typical documents that are required includes certificates stating the proof of the products origin as some goods could attract preferred rates of duty depending on their country of origin. There are also goods that require inspection and release by other government agencies, such as The Health Department, so it is imperative to enquire whether the goods being shipped from specific countries require additional permits.”
Invoices, he said also need to be provided and these need to be in a specific format and include the purpose for the product (commercial or non-commercial) and the proof of their values.
“Another aspect to consider is whether there are any special requirements for the specific country the product is being shipped to, such as temporary imports / exports and restrictions. There are prohibited and restricted goods that can only be shipped in and out of the country under a permit or license, such as plant products which require a phytosanitary certificate or medicine and scheduled substances which usually need a medical control council certificate,” he added.
To further guarantee a smooth shipment process for both the business and customer, Facey recommended that companies should ensure traceability and transparency in the transportation process.
“Not only will this help keep the customer informed, it will also assist the company prevent delays should there be a stoppage in the process.”
“With the knowledge of a particular stoppage, a business can then help resolve the issue quickly and efficiently, as in some instances, the delay is likely solved by supplying extra data or forms,” he explained.
He also advised business owners to seek assistance from appropriate service providers that can support and advise according to a business’ individual needs.
“This enables good local knowledge and the assistance with the clearance process and procedures. They will also ensure that all requirements are met and understood before shipping, as well as manage expectations and navigate customers through some time very difficult procedures.”
“By fully understanding the processes and terminology involved with entering the different markets, African businesses can build a long-term foundation for even more successful international trade,” Facey said.
Source: www.ventures-africa.com/2013/10/africa-opportunities-abound-complexities-dhl/
