The great performance of the Chemical Industry has been the only silver lining in India’s economy over the last decade. Such has been the positive global mood for the industry that there has been a consistent increase in the volume and list of chemicals exported from India. If you too are planning to start a chemical import-export business, stars could not have been better aligned in your favor.
Here are a few considerations that you must make to ensure business growth and success:
Keep An Eye on Regulations First and foremost, it is important to understand that chemicals are subjected to a different set of regulations across different countries. Hence, a chemical that is easily imported in India may not enjoy the same degree of approval in other countries. By keeping an eye on regulations, it would be much easier to create demand for your products as well as escape penalties.
Payment Method Choose a payment method that best suits your buyers. Rather, don’t be restricted by a single payment method and integrate all categories of payment methods like Letter of Credit, DA, DAP, DDP, etc.
Don’t Forget Insurance The risks in chemical export are particularly more pronounced than those in other businesses. From packaging to transparent, there is always an element of risk involved. As chemical exporters, it is essential to take insurance cover and keep yourself safe against any unforeseen mishaps.
Do Thorough Quality Check Quality checks are particularly stringent in case of import-export of chemicals. Hence, it is essential to ensure that chemicals meet all quality standards set by a particular jurisdiction. In some cases, heavy fines are levied on companies who don’t meet the quality standards.
Share Cargo Space We are sure cost-effectiveness would be on top of your priority list. As you gain experience, you will find out ways to run your export-import more cost-effectively. However, a good first step would be to use cargo space and cost with other exporters.
Hope these tips will help start on a high note with your chemical import-export business. Equally, important is to keep an eye on global chemical prices as they dip and rise based on various tangible and intangible factors. This will help you procure export chemicals at the best price for improved profit margins.
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