The business arena has become such a global affair. Therefore the import/export aspect of it is so necessary and lucrative. Conducting business in international trade involves having vast knowledge, including logistics, transportation providers, freight forwarders, customs brokers, shippers, and import/export agents. Understanding each specific position and each position’s role is vital in ensuring that trade is conducted successfully.
A key component of international trade is the agent/company that sends and receives goods to and from countries worldwide. This specific position is referred to as the import/export agent.
You might be wondering what are the specific responsibilities of an import/export agent, and how do you become one?
The objective of this article aims to answer these questions and provide you with the necessary information on becoming an import/export agent.
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Related: How did Alba Wheels Up Started
What is an import/export agent, and what do they do?
An import-export agent is also known as an international trade agent. This person works either independently or for a company that receives and sends goods to and from countries worldwide. This type of agent typically works either in the country where the product is produced or sold.
Also, this agent must match the right buyers with suitable suppliers. Products purchased are only beneficial in profit if they are needed for a specific market. Therefore, it is the responsibility of the agent to make sure this occurs successfully.
Requirements for import/export agents
Even though a license is not available to become an import-export agent, those wishing to become agents are strongly encouraged to obtain an educational degree in either international political economy or international economics. Achieving an education with a degree in this field will provide the essential conceptual and mathematical tools necessary to understand profit from markets.
Also, aspiring agents must become fluent in the primary vocabulary usage of import-export law, currency transactions, trade policy, and all the politics that are involved in making a profitable trade deal.
Obtaining a degree in this field will give you insight into the benefits of international markets and its problems. Education will be an advantage in the vast amount of knowledge required to be a successful agent.
Becoming an expert
To become a successful import/export agent, one needs to be knowledgeable in global trends. Identifying global economic trends requires research and should be monitored at minimum, daily. One needs to know these trends and understand them and translate that understanding to action on behalf of customers.
In today’s fast-paced environment, research, understand, and translate trends need to be done quickly and accurately so that the agent and the customer remain ahead of their competition. For example, check out this article from Forbes on Why Your Business Should Get Into The Export Market. It provides great information on the export market.
For the agent, becoming an expert is critical to set one apart from other agents and build their business, which is achieved with years of work experience in the field.
Related: Export Services of Alba Wheels Up
Specializing in one area
To become an expert, consider specializing in one unique area. For example, it can be a focus on a particular product such as automotive parts. Specializing in a specific geographic region and/or country is another factor to consider.
Being an Asian economy expert is often highly recommended. Especially since China is a large trade partner to the U.S., an essential aspect of an agent’s career is to be fluent in both sides of the transaction’s legalities. Focusing on one political and geographic area is a smart move.
Studying politics/native language
Study the politics of the focus area as well. An essential part of the agent’s job is to speak with the American importer-exporter about potential threats, opportunities, and recurring problems about trading with a specific country.
Also, study the native language. This is a considerable advantage when analyzing market trends. More importantly, there is never a guarantee that all the necessary documents will be in English. One of the agent’s responsibilities is to conduct these translations with speed and accuracy.
Steps to Getting Started
Once an area of focus has been decided upon and a certain level of expertise has been established, then the steps to getting started as an export-import agent are:
- Understand the trade laws and rules of country or region that is the focus. Start with an overview of all the regulations and laws regarding export and import. At the least, know what products are restricted for import and export and the export and import procedures in specific countries.
- Learn international trade and relevant business disciplines. This will help one to understand what products are being exported and imported. Understanding trends and prices worldwide and how the focused country and/or region compare is also essential.
- International logistics and rates are also essential to know and should be considered when calculating prices. For example, the cost to transport by ocean vessel or air freight operator and warehousing requirements is critical to understanding. It is useful to select a freight forwarder such as Alba Wheels Up as a partner to assist in the arrangement and management of needed logistics services.
- As an agent, understanding of incoterms is also fundamental. Incoterms are the standard terms widely used by all the exporters and importers for transport, insurance coverage, and export and import procedures.
Related: Core Expertise
The Overall Picture of Becoming an Import/Export Agent
An import/export agent has to demonstrate expertise in their focus areas and be knowledgeable in the logistics and transportation markets. Partnering with an expert and knowledgeable company like Alba Wheels Up will significantly benefit by expanding an agent’s capabilities, insights, and expertise. Additionally, Alba Wheels Up has specialized knowledge in specific areas such as apparel and footwear, electronics and consumer goods and pharmaceuticals, and medical devices.
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