Although it is true that foreign trade has multiple benefits, there are also risks that can bankrupt companies; That is why knowing the risks is vital to avoid future operational, economic and legal problems.
These risks, called “commercial risks”, are preceded mainly by the difficulty of obtaining sufficient information about the seller or buyer, the commercial customs of the country in which we are conducting the negotiation and therefore the legal environment of each one of them.
Main risks of international trade:
- Currency risk
- Legal Risk
The three most serious problems being non-payment, fraud and delivery problems. By making transactions with companies in other countries where they do not have the same filters as being a national company, they put at risk the power to be placing trust in shell companies, companies that make fraud and that make a budget and capital a disaster.
These 3 problems can be solved with a foreign trade practice called Prior in Origin.
What does this term refer to?
To begin, it is necessary to clarify that the prior recognition consists of the physical inspection of the merchandise, which is carried out by the Customs Agent; This, as its name indicates, takes place before the goods subject to customs clearance cross the tax traffic light. But when we talk about priors at origin, we mean to carry out these inspections from the country before shipping, which allows us to anticipate and anticipate any risk long before the merchandise is shipped. The previous one in origin can be not only of the merchandise to check serial numbers, quality, etc. But also the analysis of the commercial partners with whom we are dealing and this includes carriers at origin, freight forwarders, companies that manufacture your product, etc.
Currently, the post-COVID situation has us in an increase in international freight, where correctly reviewing our commercial allies will help us not to fall into false quotes or companies that sell us products at “very cheap” costs but immense risks in the operation and fraud risks.
Benefits of the Previous in Origin:
- Express shipment clearance. Customs clearance time in Mexico is reduced between 24 and 48 hours, allowing an immediate sale of the product.
- Advance and exact knowledge of the shipment. It facilitates the fulfillment of the office in areas such as:
✓Preparation of motions
✓Determination of regulations
- Elimination of additional costs in Mexican port for concepts such as: o Validation of compliance with non-tariff regulations
✓Preview maneuvers o Storage
- Re-labeling of goods
- Elimination of fines or customs sanctions. Your company prevents shipments that do not comply with the regulations and other extra costs (see previous point).
- Prevents theft and missing. By checking the exact quantities loaded into the container and the use of special seals, the risk of theft and missing units is avoided.
At DICEX we have the Early Bird service at your disposal, which we carry out with the help of our strategic ally QUIMA, where we make sure we have everything you need to anticipate your operation. Undoubtedly, this activity adds logistical value to foreign trade operations, making the dispatch of goods efficient, as well as significantly reducing risks abroad.