COMMON EXPORT MISTAKES MADE BY BUSINESSES

Exporting goods is a complex process that requires a high degree of accuracy at every stage, from document preparation and customs declaration to transportation and payment. However, many businesses still encounter mistakes that lead to shipment delays, additional costs, or even customs rejection. Below are the 10 most common export mistakes that businesses should be aware of.

1. Errors in Document Preparation

Export documents play a crucial role in customs clearance and payment processing. Common mistakes include:

• Missing required documents.
• Incorrect information on export documents.
• Failing to prepare supporting documents as required by partners or customs authorities.

Solution: Businesses should thoroughly check the list of required documents for each shipment and ensure compliance with the regulations of the importing country.

2. Incorrect HS Code Declaration

The Harmonized System (HS) Code determines the tariff rates and import policies for each product. Common errors include:

• Selecting the wrong HS code, leading to incorrect tax calculations.
• Incorrect classification of goods, causing difficulties in customs clearance.

Solution: Refer to the official HS Code classification list from customs authorities or seek advice from trade experts.

3. Inaccurate Product Description

Providing an incomplete or incorrect product description can result in:

• Customs inspections, delaying clearance.
• Importers rejecting the shipment due to discrepancies.

Solution: Provide a detailed and accurate product description, including product name, composition, usage, and key characteristics.

4. Incorrect Declaration of Country of Origin

Some businesses misdeclare the country of origin to gain tax benefits, which can lead to:

• Customs inspections and the imposition of higher taxes.
• Loss of trust from business partners and potential penalties.

Solution: Ensure that the Certificate of Origin (C/O) complies with the regulations of the importing country to benefit from tariff preferences lawfully.

5. Errors in Payment Processing

International payments require absolute accuracy in timing and documentation. Common mistakes include:

• Delays in sending payment documents to the bank.
• Incorrect details on the Letter of Credit (L/C), leading to payment rejection.

Solution: Closely monitor the payment schedule and carefully review all documents before submission.

6. Missing or Incorrect Industry-Specific Certificates

Certain exports require specialized certificates such as quarantine or quality inspection documents. Mistakes in this process can lead to shipment rejection.

Solution: Carefully review the import regulations to ensure all required documents are prepared in advance.

7. Violating Packaging Regulations

Many countries impose strict regulations on packaging, labeling, and packing materials. Non-compliance may result in import rejection.

Solution: Ensure that packaging meets the required material, labeling, and size specifications set by the importing country and business partners.

8. Lack of Export Licenses

Certain controlled goods require special export licenses, and failing to obtain them can prevent export approval.

Solution: Verify whether your goods require an export license and complete the necessary procedures in advance.

9. Inconsistencies in Documentation

Errors occur when businesses reuse old documents without properly updating them, leading to discrepancies between:

• Invoices and Packing Lists vs. Customs Declarations.
• L/C details vs. payment documents.

Solution: Carefully review and cross-check all documents before submission to customs or banks.

10. Missing Deadlines for Declaration and Document Submission

Failure to track submission deadlines can cause:

• Extra storage and demurrage fees.
• Missed shipment schedules, delaying delivery.

💡 Solution: Establish a tracking system to ensure that all documents are submitted on time.

Conclusion

Common export mistakes can significantly impact delivery timelines, costs, and business reputation. Therefore, understanding critical export steps and preparing thoroughly is essential to ensuring a smooth and successful export process.

If you need legal support or assistance with customs procedures in import-export activities, please contact Smart Link Logistics for fast and efficient consultation. With over 14 years of experience in the transportation field, we are proud to accompany you throughout your journey.