23/07/2022
As an exporter or importer, have you ever felt that the products that you want to use in your factory or want to trade are not locally available? In such cases, we have to rely on cross-border trading as we have to get the supplies that are sourced from outside or third-party manufacturers. I have found that many times we deal with products that can have a potential dual use. Research shows that many times a product may fall into multiple HSN codes, depending on its “trade “ use and its interpretation. The common problem that we often face is that our “trade “ may have its own understanding of the product usage but customs and government laws may interpret it in a different way.
Under the above circumstances, it is prudent to have a careful understanding of EXIM policy and as a professional, you should prepare all the documents very carefully. This is because if we export any wrong product or import any product in the wrong category, the penalties can be very huge and may result in big problems. So, let me share the following 2 tips that can help in correct documentation and can save your precious time and money.
Strict compliance with the export law: Always follow the law and apply for a proper license to avoid fines & penalties. For example, in the case of dual-use materials, apply for a SCOMET license. SCOMET is an abbreviation for Special Chemicals, Organisms, Materials, Equipment, and Technologies. These are the dual-use items that can be used for both civilian and military applications and as an exporter or importers, we need to be extremely careful while dealing with such items. There are 8 categories specified and cover items like Nuclear material, equipment, technology, toxic chemical agent, chemicals, special materials, munitions, etc. While dealing with such items, we should take the SCOMET license and avoid costly mistakes.
Strict law compliance of Importing country: Your home country may be accepting your products easily but many importing countries insist on additional documents and this makes the role of exporter a bit challenging because sometimes they are not aware of the correct law. For example, the USA insists on USFDA certification on most food items or UAE insists on Dubai Municipality pre-approval before imports are allowed in the country . Each bar code should be registered with customs. Many GCC countries insist on local language, particularly for ingredients, manufacturing, expiry, and country of origin details. Some GCC countries may ask for “Halal certificate “ or “Freshness certificate “ Under such a situation, it's good to follow Country specific Commercial Guidelines & keep things smooth for your cargo at the destination.
In the end , we should remember that in global trade ,beside the goods or services , it is the right compliance of rules by the exporter as well as importer makes the commercial transaction easy ! Afterall , it take two to tango !
