Import/Export 101: Your Guide to Global Trade

Introduction

If you’ve managed a delayed container or reworked delivery schedules due to customs issues, you know firsthand how critical import/export operations are. Whether it’s sourcing materials from overseas or delivering finished goods across borders, international trade is central to any supply chain strategy.

This guide is built for logistics professionals who need clear, actionable steps to improve efficiency, reduce risk, and scale global operations with confidence.

Choosing the Right Products

If your business is active in international trade, it’s essential to regularly evaluate which products are performing best across your trade lanes. Focus on items that move consistently, maintain strong margins after duties and freight, and are backed by dependable, compliant suppliers. Identifying these high-performing SKUs can help you streamline operations, reduce customs friction, and allocate resources more strategically.

• Review market data: Use tools like Trade Map and Statista to identify demand shifts, regional saturation, and emerging opportunities in your existing markets.

• Assess compliance risk: Flag underperforming products that face recurring inspection issues or regulatory hurdles, such as dual-use goods or high-risk electronics.

• Audit supplier reliability: Even trusted vendors should be evaluated periodically for lead time stability, certification renewals, and trade performance.

Calculating Costs & Setting Prices

It’s not just about product cost—your landed cost must include every factor from factory to final delivery.

Break down:

• Shipping and Freight (Air/Ocean/Drayage)

• Customs Duties and Taxes

• Insurance Premiums

• Port Fees and Handling

• Warehousing or Delivery

Use cost modeling tools or work with a forwarder who can provide full landed cost visibility. This is key for accurate pricing and profit margins.

Trade Regulations & Compliance

Avoid delays and penalties by staying current with international trade laws. Focus on three core areas:

1. Tariffs and Licenses

• Use Harmonized System (HS) codes to determine duty rates.

• Check for required import/export licenses, especially for electronics, defense goods, or perishables.

2. Restricted Goods

• Products like firearms, hazardous chemicals, and animal-based items may be banned or heavily restricted.

• Use the U.S. Consolidated Screening List to vet goods and trade partners.

3. Documentation Accuracy

• Ensure all export paperwork (e.g., Bill of Lading, Certificate of Origin, Commercial Invoice) is accurate and submitted early.

Customs Clearance Process

Smooth customs clearance saves time and cost. Here’s how to keep things moving:

• Pre-clear cargo when possible to avoid storage and demurrage fees.

• Use a licensed customs broker, especially for high-value or complex shipments.

• Verify payment of duties before cargo arrival.

Required documents often include:

• Commercial Invoice

• Bill of Lading

• Certificate of Origin

• Packing List

• Export/Import License (as applicable)

Shipping Methods (Including Multimodal)

Choosing the right transport method affects everything from delivery time to cost:

• Ocean Freight:

  • FCL (Full Container Load) = Cost-effective for bulk

  • LCL (Less than Container Load) = Ideal for smaller shipments

• Air Freight:

  • Best for time-sensitive or high-value goods

  • Higher cost, faster transit

• Multimodal:

  • Combines air, ocean, rail, and truck

  • Reduces handling and speeds up customs

Tip: Multimodal is ideal when using bonded warehouses or moving goods inland from major ports.

International Commercial Terms (Incoterms): Responsibilities & Risks

Understanding Incoterms is essential for defining responsibilities in international shipments. Here are four commonly used terms and what each party is responsible for:

• EXW (Ex Works)

  • Buyer Handles: All transportation, export duties, import clearance, and delivery from the seller’s facility onward

  • Seller Handles: Making goods available at their premises

• FOB (Free on Board)

  • Buyer Handles: Ocean freight, import clearance, inland delivery

  • Seller Handles: Export duties, delivery to port, loading goods onto the vessel

• CIF (Cost, Insurance, and Freight)

  • Buyer Handles: Import clearance, duties, inland delivery

  • Seller Handles: Export clearance, freight to port of destination, marine insurance

• DAP (Delivered at Place)

  • Buyer Handles: Import duties and clearance

  • Seller Handles: All transportation and delivery to the buyer’s location

FOB and CIF are most common for first-time importers, offering a good mix of control and support.

Working with Freight Forwarders

A forwarder is your operations partner in global logistics. Look for:

• Strong global network and preferred carrier relationships

• Customs brokerage and regulatory support

• Technology tools: Real-time tracking, EDI/API integrations, automated documentation

MyFreightWorld’s vetted network ensures coverage across key lanes with proactive exception management.

Cargo Insurance: What You Need to Know

Protect your shipments from loss, theft, or damage:

• All-Risk Coverage: Best protection, covers most loss/damage scenarios

• FPA (Free of Particular Average): Covers major losses only

• General Average: Shared risk for ship-wide loss (e.g., cargo jettisoned to save vessel)

Premiums vary by:

• Mode of transport

• Product type and value

• Destination risk (e.g., high-theft regions)

Pro Tip: Cargo insurance typically costs 0.5–1% of value—well worth it for peace of mind.

Payment Methods & Currency Risk

Choosing how to pay (and get paid) affects cash flow and risk:

Currency Tips:

• Use forward contracts to lock in exchange rates.

• Multi-currency accounts can reduce conversion costs.

• Watch for currency swings in volatile markets.

Top 5 Import/Export Risks and How to Prepare

1. Political Instability: Use political risk insurance. Diversify supplier regions.

2. Currency Fluctuations: Hedge currency exposure. Invoice in stable currencies.

3. Port Congestion: Book drayage early. Use alternate ports when needed.

4. Supply Chain Disruptions: Have backups for suppliers and transport partners.

5. Customs Delays: Pre-clear, use brokers, and keep documents ready.

Conclusion: Scaling with Confidence

Import/export success is about more than moving goods—it’s about planning ahead, managing risk, and working with the right partners.

MyFreightWorld and Drayage Trucking offer:

• Real-time shipment visibility

• Seamless port-to-door solutions

• Customs and compliance support

• Strategic insights to optimize costs and timelines

Request a Quote today and make your import/export operations as seamless as possible.