Export finance, which is used to cover the time between an export order being placed and payment being made, is a means of facilitating international trade. Financing can play a role, for instance, when exporters may need to protect against the higher risk of payment default by an unknown buyer situated in a foreign legal system; because export orders often require more working capital, relative to sales, than domestic orders and exporters may wait an average of three to five months between shipment and payment; or buyers require funds from a financial institution to purchase goods and services.
Direct Labor CostsPaying wages to employees will be one of your major manufacturing expenses. You will need to constantly monitor this cost to make sure you are getting enough production for the money you are putting into labor.
Materials Costs The cost of raw materials used in the manufacturing process is one of the most common manufacturing expenses companies measure. You should always strive to deal with vendors to get the lowest possible prices on raw materials, and you should initiate quality control methods to avoid wasting raw materials.
Indirect Overhead Your manufacturing facility incurs expenses whether you are manufacturing or not. These costs include utilities, rent or mortgage payments, depreciation on equipment and security.
Incidental Expenses In addition to the three most common manufacturing costs, you have expenses for supplies such as tools, tape, lubricants and safety gear.
They’re required by customs. Breaking it down, however, these two items are important for different reasons: Commercial invoice: Like other types of invoices, the commercial invoice describes the transaction happening between the exporter (your supplier) and importer (you). It lists your goods and the price you paid your supplier. Details on the commercial invoice will be used to determine the duties and taxes applicable to your shipment. Packing list: At first glance, the packing list may look similar to the commercial invoice. However, where the commercial invoice focuses on item prices, the packing list focuses on the physical count and breakdown of the related shipment. For example, a packing list would include the size, weight, and count of individual boxes/cartons matching a corresponding commercial invoice. Therefore, the packing list can be used in insurance claims to identify losses or by Customs when inspecting cargo or by your warehouse to reconcile what was expected vs. what was actually received.
Freight forwarders will provide you with a range of options to find the most cost-efficient rate, however, be familiar with freight markets so you can gain the most competitive rate. Your overseas buyer will often specify the preferred option and this could depend on ease of customs clearance at the port of discharge or the frequency and reliability of sailing. Transhipment is a common feature of liner shipping. ‘Hub’ ports such as Singapore, Hong Kong and Dubai distribute containerised cargo to other ports by ‘feeder’ vessels. Make sure, however, that the transhipment hub is efficient so your cargo does not suffer delays. Most freight forwarders have space and freight rate deals negotiated with sea and air carriers. What’s important is to locate a forwarder who caters for your business profile – both in scale of operation as well as geographic coverage.