With the successful sale of your product into an international market, you now must be aware of the differences between shipping domestically and abroad. It is important to create a good checklist to make sure you have everything you need to get your product seamlessly out through US customs and into another country to your end buyer. This is a graphic that shows the basic steps for shipping your product to an export market, for each of these steps, we have broken out the things you need to consider.
An order is placed, and the product is manufactured.
The product is shipped from the manufacturing plant to a warehouse to be staged for shipment.
U.S. Customs reviews export documentation to verify ITAR and EAR compliance.
U.S. Customs has the right to inspect any shipments leaving U.S. ports to ensure national security.
Upon customs clearance, containers can then be loaded onto vessels for shipment.
After arrival or inspection, the cargo is released by customs in the destination country, and permission is given to pick the container(s) up from the port.
The cargo is picked up and delivered to the destination by either the shipper or the recipient, depending on the Incoterm used.
Generally, there are four modes of transportation to move product from one country to another.
For any shipping transaction, someone is legally and logistically responsible for each piece of the process. Sometimes this responsibility is explicitly stated, and sometimes it's considered common knowledge. For example, when you order something online from a reputable retailer, you expect it to be delivered to you. If it's not delivered, the retailer takes responsibility and either resends the item or refunds the cost.
For commercial shipments, this type of expectation is explicitly stated with terms and agreed upon by both buyer and seller in advance via Incoterms, a pre-defined set of international rules published by the International Chamber of Commerce and used worldwide in commercial transactions.
The following terms apply to any mode of transportation:
The following terms apply only to sea and inland waterway transport:
The demands that international shipping puts on packaged goods can be very specific. Many potential problems, which must be thoughtfully considered beforehand, can arise during shipment. Be sure your goods are prepared using these guidelines:
A freight forwarder will help you ship your goods to an international market. Some of those most commonly used in Montana are FedEx, UPS and DHL. These companies have a fleet of vehicles that operate locally and can work to get your product out through U.S. Customs and into your desired region.
Freight forwarders help prepare export documentation, book transport for your products and, if needed, arrange for customs clearance at the port of arrival. You are not required to have a freight forwarder, but they can be useful, especially if you are exporting for the first time, exporting to a new country or prefer someone else to handle these formalities. There are many large shipping and freight companies that fall under this category.
Customs brokers focus on importing goods into a country. They act as an intermediary between the importer and a government’s customs department. Exporters don’t need a U.S. Customs broker because they are shipping out of the country. Whoever is importing will need a customs broker.
If you are shipping large volumes or very large items, a freight forwarder may make sense for you. If your shipments are smaller, you may be better off using a familiar parcel shipping company like UPS, FedEx or DHL. These companies can take care of shipping and import clearance, as they often have their own brokerage services.
Insurance can be purchased through private banking or through a freight forwarder or shipper. However, the U.S. government has a low-cost alternative for many shipping and payment services through EXIM Bank. Read about Montana businesses that have used their services and contact our regional representative for more information.
If you need further information on transportation, please reach out.
Montana Department of Commerce
301 S Park Ave, Helena, MT 59620
Contact Us | 406-841-2700
Montana Relay 711