The first step in breaking into the foreign market is to find a buyer for freeze-dried or frozen vegetables in India who is happy with your offer. You must still settle on the conditions of delivery and the contract, gather the necessary paperwork for the goods and the shipping, arrange transportation to Europe, and receive full payment.
There are a lot of obstacles to overcome, despite how simple and technical the task seems. To overcome these obstacles and establish yourself as a reliable, effective, and prosperous exporter of processed fruits and vegetables.
Pick the payment type that best suits your trust level.
Your sales contract should include the mode of payment. Your best interests and those of your customers will be served by settling on a mutually advantageous mode of payment. When working with a buyer for the first time, this agreement might be particularly challenging to establish. In most cases, the buyer will want to pay for the products at a later date. It is standard practice to require prepayment before shipping products or to secure payment with export insurance or a letter of credit when dealing with buyers you do not know well.
Obtain export insurance to lessen the impact of any losses.
There are many dangers associated with sending processed fruits, vegetables, and edible nuts abroad. Some of these risks are inherent to the shipping business itself, such as the possibility of damage, theft, or improper temperature management; others are more external, such as the possibility of currency changes, political unrest, or theft. So, it's a good idea to get product and payment insurance. Insurance against political risk, export credit, and cargo and marine are among the most popular policies.
Products may be safeguarded by cargo insurance while they make their way to the buyer. This will safeguard your items from any harm that may come from things like careless handling of pallets or crane breaks, or from containers that aren't properly regulated in terms of temperature or humidity. The elimination of the need to gather evidence of loss or damage is a notable benefit of cargo insurance. It is sufficient to prove the occurrence of harm or loss in the event of a claim.
Shipping firms do not provide full cargo insurance while transporting goods by water. Marine insurance is a standard provision in contracts entered into with shipping companies. The shipping corporation buys this insurance specifically for marine-related hazards. This implies that it won't pay up if the products aren't loaded properly or if the damage happens anywhere other than on the water.
The primary objective of export credit insurance is to safeguard you in the event of non-payment. This insurance also lets you provide your buyer-deferred payment, which is a huge plus. Your competitiveness might be enhanced with export credit insurance since many European clients want postponed payments.
Your business may avoid political risk with the help of political risk insurance. A few instances of political risks include the possibility that the government may seize your products, the unpredictability of currency exchange rates, or the revocation of an import permit. While it isn't often required for exports to the EU, it might be helpful when dealing with politically risky nations. In addition, export credit insurance often includes political risk insurance.
You may find that you are less competitive when exporting to Europe due to tariffs and other trade restrictions. Importers often look for nations that provide duty-free imports since they are the ones who typically pay the tariffs. The tariff rate is $0 for the majority of processed fruits, veggies, and nuts imported from poor nations. The reason is: that the EU's Generalized System of Preferences (GSP) is always open to developing nations. Several additional free-trade agreements including the elimination or reduction of tariffs exist between the European Union and some nations outside of GSP.
Management of papers
Transport documentation, business invoices, and certificates of origin are the most crucial kinds of paperwork needed for customs clearance. A certificate of origin is required to apply for reduced tariffs on shipments to Europe.
Documents required by customs officials as proof of export include a business invoice. It essentially spells out the sum that will be paid in exchange for your goods.
A packing list details the contents and quantity of each box such as IQF mango. Typical information includes package dimensions, weight (both gross and net), and quantity (pallets and individual items). Although it is not strictly necessary, it might be helpful for customs inspectors when they wish to open a specific package for examination. Transportation firms often ask for this paperwork, even though it's not required by law.
Think carefully about your logistics and transportation choices.
The European Union imports more than 90% of its processed fruits and vegetables from underdeveloped nations via maritime transit. But there are exceptions; for instance, when importing frozen berries from nations in Eastern Europe, road transit is also an option. Rarely, air transport is also used when dealing with low quantities at high rates. Medical mushrooms (like cordyceps or reishi) and powdered items (such as maca from Peru, cordyceps from China, and ashwagandha from India) are also sent by air.
Transportation plays a crucial role in maintaining the quality of processed fruits and vegetables (such as frozen items), but it also has the potential to hurt your reputation (you might lose a customer due to late delivery) and impact your pricing (20–40% of the sales price can be logistics costs).
In planning your export, you must take into account several facets of transportation and logistics.
Make sure the packing is both secure and affordable.
One of the most important components of trading processed fruits and vegetables is using the best packaging for export. This container has to:
- Ensure that the product's quality, appearance, texture, and aroma are preserved.
- Avoid contaminating the product with bacteria and other pathogens, including those that might be present in the packing.
- Make sure the product doesn't become dry, dehydrated, or leaking in any way.
- Avoid imparting any off-putting flavors, colors, or smells to the product.
After you've finished labeling and packaging, make a packing list that everyone from carriers to cargo handlers to warehouses to consumers may utilize. Notes, numbers, gross and net weights in kilograms, measures in centimeters, volume, and contents descriptions are all part of a packing list. In addition to the total volume and gross weight, this list also includes the total number of packets.
A variety of globally recognized trademarks may be seen on the outside of the packaging, depending on the product. Make sure your client has all the necessary information for clearance by sharing them with them before shipping.
Get in touch with export support groups for help setting up your export to Europe.
Both domestically and internationally, there are a plethora of organizations from whom you might seek assistance. Another resource that can be useful is your local chamber of commerce. Common areas of expertise for its employees include transportation, trade agreements, and legal matters.
Ready to ship your first export? Contact Flex Foods, the premier among freeze-dried food manufacturers in India for assistance!
