3 mistakes to avoid in international trading.

Caution in necessary in trading. Using your intuition and getting a right team of experts is crucial to safely navigate the waters of international trade. But sometimes the promise of a little extra profit can lead importers and exporters into dangerous, illegal, and expensive territory. In this post, we explore few practices that might seem right but eventually hurt you.

Don't cut corners in trading

If you're cutting corners on things, someone may blow the whistle on you.- Alan Kaufman.

Our team appoints below 3 trading mistakes to avoid at all costs with suggestions of the best things to do in each case.

• Dumping

Many countries have anti-dumping laws to protect them from unusually cheap imports that originated from certain countries, and the regulations about dumping can change frequently on a country-by-country basis. Depending on the terms of their contract, buyers and sellers may have to make the dumping declarations. Playing by the book and paying the dumping fees imposed at your port of entry is the right thing to do, because trying pinch pennies here could really cost you a lot. Violations of anti-dumping laws are severely condemned, and you can end up serving prison or be sentenced to pay fines.

• Non-Discriminating origin

If your country has sanctions on trade with another nation – no matter how many buyers there are waiting for your goods, you cannot export your products to them. While the repercussions are obvious in the case of weaponry and military supplies, some traders fail to heed the laws when it comes to goods that appear to be more controlled.

Exporters have paid a significant price (both in fines and jail time) for violations on everything from computer chips and software to drilling equipment. In fact, traders can avoid this mistake, if well orientated by trading experts.

• Diminutive Declarations

At first, it seems a good idea to cut corners by lowering the price of the goods you bought so to reduce custom clearance costs. However, in most countries, custom and fiscal entities communicate and you might end up with fines that will cut into your profits, or higher taxation. This practice might also provoke the loss of your license of importation. Therefore, we will advice to seek tax exemptions from your local authorities or by choosing products from countries with trade agreements with yours.

In conclusion, be sure to run all your big ideas past legal counsel or trading experts – especially if you’re venturing into new territory. The commission or fees to experts might save you a whole lot of time, headaches, and money later. Our team at SEAND Trading knows the regulations and agreements in many countries, so we will be happy to help you find the right trading strategies.