
Export of goods abroad. Challenges and opportunities
Each country has its own specific customs regulations, which may include customs duties, tariffs, border controls and documentation requirements. Understanding and complying with these regulations is essential to avoid delays and additional costs. In addition, exported products must meet local norms and standards for quality, safety and health, and sending the goods is only the beginning, because the next step is waiting for the invoice payment. In its absence, the exporter must try to obtain payment from a recipient operating in a different legal system. This, in turn, often entails high additional costs with no guarantee of payment – indicates the BNP Paribas brokerage house.
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Exports are negative this year – only three markets with growth
Export and invoice financing
Negotiating favorable payment terms, such as a letter of credit or documentary collection, can protect the company against the risk of non-payment, but such forms of payment security are expensive and formally complicated. Polish companies face this threat primarily due to the uncertain economic situation in Europe and large fluctuations in currency rates against the Polish zloty. The solution to this challenge is to finance invoices in the currency in which they were issued, taking over the risk of the recipient's insolvency, thus avoiding the risk of non-payment of the invoice by the recipient and the risk of exchange rate fluctuations.
Political instability in the destination country can, in turn, lead to unexpected changes in regulations, trade disruptions or even confiscation of goods. Changes in economic conditions, such as recessions, inflation and changes in trade policy, may affect demand for exported goods. Exporting goods abroad requires careful planning, a thorough understanding of the target market and flexibility to respond to changing conditions. Companies that can effectively manage these challenges can successfully find their place in the international arena.