Now, of course, customers can simply go to a grocery store and buy boxes at a time without a second thought to the complex nature of how they came to be in their hands. Non-perishable goods are even easier to come by, requiring the click of a few buttons to get them across countries and seas right to your doorstep. Need a specialized service from someone working in a region hundreds of thousands of miles away? No problem; technology has that solution covered. 

As trade evolves, so do the job roles that support it

Put simply, the movement of goods and services across borders has evolved at a breathtaking pace. Alongside these transformations, the teams that make global commerce possible have grown in both size and sophistication. What was once the domain of a few specialists now involves entire departments dedicated to logistics, technology, supply chain, and trade compliance, the latter being a job area that has recently seen incredible growth. 

Compliance specialization is booming

“Companies with greater than 15% expected growth allocate an average of eight people to trade compliance activities, compared to six in companies anticipating little or no growth,” states a 2025 benchmark study by Descartes Systems Group.

This increase can be attributed to many factors, from geopolitical shifts and tariff policies to shipping disruptions and natural disasters.  

The World Economic Forum also highlights this shift in their paper, Trade Compliance for Leadership, stating, “Non-compliance with new trade requirements could affect hundreds of billions of dollars of trade flows. The stakes are high: compliance safeguards business continuity, avoids supply chain disruption and can be a competitive advantage. It also mitigates the risks of penalties and reputational damage.”  

Customs roles are also becoming a C-suite discussion

Other trade roles seeing expansion include those focused on customs.

“Customs will be used as a business strategy, becoming an important C-Suite level discussion point to navigate the ever-complex international trade waters,” notes a recent article by shipping giant Maersk. And it’s easy to see why.

With a growing web of tariffs, counter-tariffs, and shifting regulations worldwide, importers and exporters must manage their classification codes, documentation, and compliance procedures with precision—or else risk costly penalties and delays. 

And then, there is AI

Virtually all areas of business, including global trade, are being touched by artificial intelligence and associated technologies. In fact, “The global AI in logistics and supply-chain market size was valued at USD 20.1 billion in 2024 and is projected to grow at a CAGR of 25.9 % between 2025 and 2034,” states a report by Global Market Insights. And these technologies are focused on improving operational cost, streamlining logistics planning, and managing real-time supply chain efficiency—but only if teams are trained on how to operate these new technologies.  

Agility, accuracy, and technology: core focuses for trade teams

All in all, in 2026, trade teams need to lean their roles toward technology, compliance, and risk planning for resiliency.  

The World Economic Forum notes in their Future of Jobs Report that “The most prominent skills differentiating growing from declining jobs are anticipated to comprise resilience, flexibility, and agility; resource management and operations; quality control; programming, and technological literacy.” 

That sets the stage for roles like trade-compliance analyst, customs strategy lead, global trade-technology architect, and import/export risk manager—titles once rare, but now increasingly common.  

A simple browse of current job postings finds top companies like Amazon hiring for Global Trade Compliance PMs or Global Customs Ops Analysts, requiring candidates to have the skills to build scalable trade-compliance programs and broker networks. While grocery chains like Loblaws are looking for Customs and Trade Analysts, roles focused on import and export clearance and risk.  

Globally, there are thousands of jobs focused on customs and international trade compliance, including many on FITT’s job board—making it more important than ever for competitive teams to make these professions a priority for successful international market expansion.

Offshoring, nearshoring, and re-shoring: strategies to mitigate volatility 

With increasingly unpredictable supply chains, companies are also rethinking where and how they allocate their trade teams. Offshoring, nearshoring, and re-shoring have become hot-topic strategies in this conversation—each offering clear advantages and trade-offs. 

• Offshoring refers to relocating production or services to a distant country, often to reduce labour costs or take advantage of specialized expertise. It can yield significant cost savings and access to global talent, but also exposes firms to geopolitical risks, shipping delays, and reduced control over quality and oversight. 

• Nearshoring involves shifting operations or sourcing to a nearby country or region—one that lies closer in geography, culture, or time zone. The proximity allows for faster communication, shorter transit times, and improved responsiveness to market shifts, though it may come with slightly higher labour and logistics costs compared to far-off locations. 

• Re-shoring (or on-shoring) brings previously relocated operations back home, offering the greatest control, supply-chain transparency, and resilience against global disruptions. However, domestic production typically comes with higher costs, and the process of re-establishing facilities and workforces can be both expensive and time-consuming. 

Together, these strategies reflect a broader recalibration of global trade—one that weighs efficiency against resiliency, and cost against certainty. What businesses choose to employ depends on their needs and goals, but they will all have to consider the risky environment in which they exist: 

“Geoeconomic fragmentation and geopolitical tensions are expected to drive business-model transformation in one-third (34 %) of surveyed organizations in the next five years. Over one-fifth (23 %) of global employers identify increased restrictions on trade and investment … as factors shaping their operations,” states the World Economic Forum in their job report, pinpointing the need for businesses to be prepared from all angles.  

Training is a unifying factor for all roles

At the heart of these workforce transitions lies a single, unifying factor—the need for continual training and upskilling. Finding employees with a new set of in-demand skills isn’t something that happens overnight. Most often, it starts with giving current teams training to upgrade their knowledge to current-day trends. 

“If the world’s workforce was made up of 100 people, 59 would need training by 2030. Of these, employers foresee that 29 could be upskilled in their current roles and 19 could be upskilled and redeployed elsewhere within their organization. However, 11 would be unlikely to receive the reskilling or upskilling needed, leaving their employment prospects increasingly at risk,” warns the WEF. 

Lora Rigutto, Partnerships and Community Lead at FITT, agrees. She personally sees how training benefits companies and employees working in international trade daily: 

“I’ve seen how upskilling and trade training can change the trajectory of both employers and employees. Many who complete FITT’s international trade training go on to work in government, policy, and business at some of the world’s leading organizations, while others use that knowledge to grow their own SMEs.”

What really stands out is the value of having a CITP®—someone with a broad, practical understanding of international trade who can connect the full A-to-Z process, from market entry and compliance to sales and growth strategy. Whether in a large enterprise or a small business just getting started, that ability to see the whole picture and bring in accredited knowledge created by business for business, along with industry best practices and frameworks—makes a meaningful difference.” 

The world is changing, but resiliency will always remain a strength

In 2025, it may seem like our world is changing faster than ever. But it’s important to put these shifts into perspective. Only 100 years ago, we were still delivering some products by horse and buggy. 50 years ago, we were sending customs documents via fax machines, and just 25 years ago, the biggest technological threat that dominated the headlines was Y2K. The point being, the world has always been in a state of rapid change, but those who flourish in it, no matter the challenge, remain aware, prepared, and upskilled for those changes. 

Curious about current job roles in trade? Below is a list of popular trade jobs that companies currently hire for: 

See active international trade job listings here 

• International Trade Consultant: Advises companies on entering new markets or expanding globally including assessing tariffs, trade agreements, and regulatory risks and recommending supply chain and market entry strategies 
• Export Manager: Responsible for planning, executing, and overseeing a company’s sales of goods or services into foreign markets; a mix of strategy, operations, and relationship management 
• Commodity Trader: Buys and sells commodities, such as agricultural products or metals, on international markets. 
• Economist: Analyzes data and develops theories related to the production and circulation of goods, services, and resources in a global context. 
• Data Analyst: Analyzes data for companies to help inform business decisions, which can include international market data.  

Logistics and supply chain

• Freight Forwarder: Manages the transportation of goods, including coordinating shipments, choosing carriers, and negotiating terms. 
• Logistics Specialist: Handles the planning and management of international logistics, including warehousing and last-mile delivery. 
• Customs Clearance Specialist: Processes paperwork for inbound and outbound shipments to ensure goods clear customs without delays. 
• Ocean/Air Export/Import Coordinator: Manages the specific details of export or import shipments via sea or air freight.  

Sales, marketing, and business development

• International Sales and Partnerships Manager: Develops and manages relationships with international partners and clients. 
• International Marketing Manager: Creates and implements marketing strategies for products and services in global markets. 
• Business Development Manager: Focuses on expanding a company’s business through new markets, partnerships, and services, often within a specific sector like freight forwarding.  

Compliance and analysis

• Trade Compliance Specialist/Manager: Ensures a company’s operations adhere to all trade regulations, sanctions, and export/import laws. 
• Customs Broker: Acts as an intermediary between businesses and government customs agencies, navigating complex regulations to facilitate the movement of goods. 
• International Trade Analyst: Conducts research and analysis to help companies make informed decisions about global markets and trade policies. 
• Policy Analyst: Researches and analyzes policy outcomes, which can be applied to trade policies and social issues.  

The post Growing global trade jobs: Top roles, skills, and trends to watch in 2026 appeared first on Trade Ready.

With geopolitical tensions reshaping supply chains, unilateral tariffs disrupting established trade agreements, and regulatory complexity increasing across regions, global business decisions carry more weight and risk than ever before.

According to the World Trade Organization, global merchandise trade volumes are projected to grow in 2026, but at a slower and more volatile pace than in previous decades, driven by geopolitical fragmentation and policy uncertainty. In other words: opportunity is there, but so is risk.

Against this backdrop, the most successful organizations are not asking whether they should grow internationally. They’re asking smarter questions about how.

1. What are some of the most important steps to take before venturing into a new market?

One of the most common mistakes in global expansion is reacting to opportunity before assessing readiness.

Before venturing into a new market, organizations should conduct a situational analysis, including assessing organizational readiness and planning and analyzing the results of international market research. This is not simply a planning exercise, it is a risk filter.

As the guide explains, “Before an organization embarks on a new initiative in international trade, it is important to assess the organization’s current conditions, attitudes, and resources”. This assessment helps determine whether the initiative is feasible and whether the potential gains justify the exposure.

Companies that skip this step often become reactive exporters, responding to inquiries without clear strategy or trade expertise. In today’s environment, readiness is a competitive advantage.

2. What international market research do you need to do before expanding into a new market?

International expansion demands structured research, not guesswork.

The guide outlines a seven-stage approach to international market research, beginning with defining the research objectives and progressing through stages such as screening potential markets, selecting the research design and data sources, and ultimately presenting conclusions to then apply the research. Each stage reinforces disciplined decision-making.

Beyond methodology, macroeconomic indicators play a critical role. The guide highlights key data points including Gross Domestic Product (GDP), GDP per capita, Household Disposable Income, market size, unemployment rate, population, and inflation rate. These metrics help businesses evaluate market suitability and purchasing power before committing resources.

In other words, expansion decisions should be evidence-based—not optimism-based.

3. How do tariffs introduced unilaterally by the U.S. government affect trade between Canada, the United States, and Mexico, even with CUSMA in force?

North America illustrates how quickly trade conditions can shift.

While CUSMA is designed to facilitate trade, recent unilateral tariff actions by the U.S. government (2025) have disrupted this predictability. Businesses that once relied on stable, tariff-free access have faced sudden cost increases and regulatory uncertainty.

As a result, companies must assume volatility. The guide notes that businesses must assume the possibility of future, unexpected tariffs and plan accordingly. Practical strategies include diversifying supply chains, strengthening trade expertise and maintaining contingency plans.

The broader lesson extends beyond North America: formal agreements do not eliminate political risk. Professionals must remain agile and informed.

4. What integrative export and FDI approaches can businesses employ when expanding into Asia?

International growth is not limited to exporting finished goods.

Organizations can expand through export, international transfer, international partnering, or through FDI. Within these pathways are multiple approaches: indirect export, direct export, licensing, franchising, strategic alliances, representative offices, greenfield investments and mergers and acquisitions.

Each model carries different levels of investment, control and exposure. For example, the guide explains that Greenfield/Brownfield investing is the riskiest and most expensive market expansion option. Conversely, indirect export may limit risk but also reduce market visibility and control.

Selecting the right strategy requires alignment between organizational capacity and long-term objectives. There is no universal blueprint, only informed decision-making.

5. When a company expands into a new market, how important are cross-cultural considerations?

Market entry is not only about economics and logistics. Cultural alignment can determine success or failure.

The guide emphasizes that understanding and adapting to cross-cultural differences is critical for success. Communication styles, consumer behaviour, marketing imagery and negotiation practices can differ significantly between markets. Ignoring these nuances risks damaging relationships before they begin.

Cultural intelligence reduces friction, accelerates trust-building and strengthens long-term positioning.

6. How are tariffs determined on products that are being exported?

Amid strategic discussions, technical fundamentals remain essential.

A tariff is the rate that is used to determine the amount of duty that will need to be paid to the government of the importing country when goods are shipped internationally. Tariffs are determined using the Harmonized System (HS) of nomenclature, an internationally standardized coding system. Many governments have online tools for importers and exporters to determine and obtain a HS code for their materials and products.

Accurate classification directly affects cost, compliance and clearance timelines. Errors can lead to delays, penalties or reputational damage. For international professionals, understanding these mechanisms is not optional, it is operational risk management.

A more disciplined approach to global growth

Across regions, from the United States to China, the Middle East and the Caribbean, the opportunities are real. So are the risks. Regulatory unpredictability, infrastructure differences and currency considerations all influence outcomes.

As the guide concludes, a well-informed and adaptable approach is central to long-term success.

For professionals navigating global markets today, the essential questions are not simply “Where can we grow?” but:

• Are we prepared internally?
• Do the macroeconomic fundamentals support entry?
• What risks exist within the regulatory and political landscape?
• Which market entry model aligns with our capabilities?
• Do we understand the cultural and compliance dimensions well enough to execute effectively?

Exploring these questions in greater depth, along with region-specific insights and practitioner perspectives, can help organizations move from reactive expansion to structured global strategy.

For readers interested in examining these issues further, the Essential International Trade Questions Answered guide offers additional context and practical insight drawn from experienced international trade professionals.

The post 6 Essential questions every international business professional should be asking before they go global appeared first on Trade Ready.

With a strong desire to travel and learn, Daiana Leandro moved to the U.S. from Brazil in 2013 as part of a one-year exchange program. Her goal was to familiarize herself with the English language, to better position herself for future travel plans.

When she went back to Brazil, she decided to enroll in university and wanted to incorporate her newly developed English speaking skills into her formal education as well. This prompted her to pursue a bachelor’s degree in international trade.

“I wanted to use language as well because I felt very good about my English language skills and decided to look for a course that would accommodate that skill.”

Beginning her international trade career and meeting her mentor

After moving back to Brazil, Daiana had a few months gap before starting university. She applied for a trainee job in international trade and was hired at Takata, a Japanese auto parts manufacturer. This is where she met Mario, who hired her and would go on to become her mentor. It was with his support and guidance that she transitioned from a trainee to an assistant, and eventually an analyst, towards the end of her four year tenure at Takata.

“I feel that it’s important to have gratitude for the people that support you and actually contribute positively to our growth.”

Once she left Takata, Daiana went on to work for various trade companies. During this time she had the chance to work in customs clearance, logistics management, and import/export operations. This experience gave her deeper insights and more visibility of international business as a whole.

“I was working with more products, and we also worked with customs which are very different, especially in Brazil, because it’s a very protective country. You need to understand lots of legislation to do that, and that was very interesting for me to understand from the inside.”

Switching sides – moving from production to transportation

Next, Daiana began a new role as logistics coordinator with freight forwarding company JAS.  This new role placed her on the opposite side of transactions she was used to in her previous roles. Now working on the transportation side, she was able to use the insights she’d gained as the importer/exporter to understand her customers’ challenges with carriers which allowed her to  empathize and ultimately better serve them.

“I knew people have limited budgets and I would go over their invoices with them checking every line item that was charged and walking them through how it was charged and why.”

Working in freight also familiarized Daiana with the strict processes and rules that are followed and all the people involved in different stages of these processes. Always with a mind to the possibilities of working abroad, she was pleased to build her know-how in the world of transportation since it’s a knowledge area that transfers well internationally.

Moving to Canada and becoming a certified professional

After having experienced so many great adventures during her stay in the U.S., Daiana and her husband were inspired to look for opportunities to travel and work abroad after completing university. They considered several options for relocation with a particular eye to countries where they would be welcomed and find decent professional opportunities.

Want to learn more about the Certified International Trade Professional (CITP®|FIBP®) designation? See why it’s the world’s most recognized designation for competency and credibility in global business.

During her research, Daiana discovered the FITTskills courses being offered through Nova Scotia Community College’s Advanced Diploma program for International Business, and realized that it lined up with her previous education. She was also attracted to the program by the opportunity to go on to apply for the CITP designation that FITT offers, after earning the FITT Diploma.

“One of my professors used to say that it’s not fair that lawyers study law and can call themselves lawyers. Like people who study medicine and become doctors. And for those of us who study international trade, there’s still too little recognition for us as professionals.”

“I think that having a professional designation is important to back you up. To show that you’re committed to what you’re doing.”

Ulitmately, Daiana has proven exactly that. The hard work she has put into her learning, both on the job and through her education, has helped her become a validated, competent and committed international trade professional.

“The FITTskills courses enhanced my education in international logistics by expanding my understanding of international trade. It provides thorough training in 15 competency areas, creating numerous opportunities for entering the job market or starting an international business.”

She shares that her favorite FITTskills course in was the Feasibility of International Trade course as it helped her pull together all the knowledge and skills she had gained in the past few years through both education and work, to conduct international trade research.

Doubling down on customs specialization and plans for the future

Today, Daiana is putting her skills and knowledge to work as Customer Success Specialist at Ocean Sonics – a manufacturer of hydrophones (microphones used to listen under the water). They have a large clientele worldwide and across a range of industries. Daiana’s role focuses on serving clients on the export side of the business.

“Day to day I don’t only deal with exporting items out, but with returns as well. I work with return naturalization of products that are under warranty. If I ship something to Tasmania and it needs to return to Canada I help customers to return this unit. And I work with customers to provide the best and cheapest option to save money and avoid expensive unexpected costs so that customers pay what’s fair.”

Daiana wants to learn everything that she can about customs processes as she believes that this knowledge is crucial for any business that does international trade. It allows them to smoothly navigate customs and take advantage of whatever’s available. This is why she wants to build on her CITP designation and international business training and become a Certified Customs Specialist.

“I’m in contact with the Canada Broker Association to do another course that’s going to lead me to another designation to become a Certified Customs Specialist. Building an understanding of the whole process will help me bring a lot of value.”

Daiana credits the FITTskills courses she took for providing her with crucial knowledge and hands-on experience to further her international trade career. She has plenty of ambitions for the future and becoming a Certified Customs Specialist and delving into procurement to widen supply options for Ocean Sonics are just the start.

“Many aspire to work in international trade for the travel opportunities, but the reality is that the field encompasses much more. As international trade professionals, we drive global commerce. I truly love my career it is dynamic, exciting and fulfilling.”

Her key piece of advice to anyone starting out in international trade:

“I’ll rephrase something that Mario used to tell me since day one. We never know everything. So that’s the exciting part of the job.”

The post CITP Spotlight: Daiana Leandro – Customer Success Specialist, Ocean Sonics Ltd. appeared first on Trade Ready.

It’s not a rhetorical question. At least not if you’re talking about a specific form of fog: fogponics technology, which increases water efficiency when growing plants. The technology comes from NASA, originally part of a project to grow food on the International Space Station. And at Plantaform, an Agritech startup employing fogponic technology for the at-home gardener, fog is a game-changer.

Plantaform, a cleantech startup based in Gatineau, Quebec, Canada, is the brainchild of co-founders Alberto Aguilar, Kiwa Lang, and Georges Hamoush. While reading an article about fogponics during his studies in industrial design at university, Lang immediately recognized how water-efficient it might make a home garden.

He became obsessed.

“He made [fogponics] his entire thesis,” reports Aguilar, who first met Kiwa while attending high school together in Dubai.

“When he was initially developing this project we were living in two different continents. But Kiwa knew I had an entrepreneurial background and I used to work in a startup which I co-founded—working on bacteria mutation for cannabis—and he reached out asking me if we could start a business with this technology.”

With Canada importing 90% of its leafy greens from Mexico and the U.S.—and the UAE importing some 98% of its leafy greens from neighboring countries—it seemed like a revolutionary technology for an underreported problem.

And it all comes back to a simple idea:

The Nespresso machine.

The product: Understanding Plantaform

Plantaform is an indoor gardening system similar to a Nespresso machine. With a touch, you can grow up to 15 different varieties of plants—the same way you might brew a single cup of coffee.

Plantaform works by inserting capsules into the system, adding some water, and then clicking a button. The plants can be ready to harvest as soon as four weeks later. What’s revolutionary here is “fogponics,” the new technology pioneered by NASA.

This has become the most water-efficient technology in the world—using a suspension of nutrient-laden water to deliver the oxygen and nourishment each plant needs at a root level.

The concept is similar to aeroponics, except instead of using mist action to deliver these nutrients, the sustenance is delivered through a steady fog.

“I found the concept fascinating,” says Aguilar of the early prototypes for Plantaform. “I never saw a product like it. It looked very futuristic.”

Plantaform now offers a variety of plant pods. Herbs. Basil. Mint. Leafy greens and edible flowers. This diversity gives Plantaform’s users fresh, organic produce year-round, complementing their home gardens and reducing food waste.

“Food waste is a major issue,” Alberto explains. “We aim to minimize this by allowing people to grow what they need and avoid the common problem of produce spoiling before it’s used.”

With a revolutionary way of growing greens indoors and a prototype in hand, they decided to start Plantaform. By October 2019, they spent every day doing research on the problem of unsustainable or inefficient plant cultivation.

“We saw a huge problem that we could address with this product,” says Aguilar. “And that problem was sustainability.”

Understanding international business through the carbon footprint lens

Leafy greens are big business. With Canada importing 90% of its leafy greens and water-poor countries like the UAE relying even more heavily on imports, the transportation system is under increasing strain to deliver plants to the people who need them. This is a problem. Greens are being shipped internationally via carbon-intensive trucks. Fogponics could make leafy greens a cinch to cultivate at home.

According to Aguilar, self-sustainability was one of the key reasons for Plantaform. But shipping their product across borders proved to be an unexpected obstacle.

“We’ve faced a lot of challenges when exporting an agritech product and consumables.”

Exporting produce—especially seeds—is complicated. “Seeds are a very delicate matter when exporting. And so our first export was actually to the U.S.—and that device did not make it through the border.”

The problem? Regulatory load. Plantaform did not have its phytosanitary certification, which meant the products were sent back. And when the products were returned, they didn’t arrive in great condition.

“I’m telling you,” says Aguilar, “It was destroyed.” Customs had reportedly opened the box and turned the device upside down, resulting in scratches everywhere and a device that was no longer salvageable.

The U.S. wasn’t the only problem. Plantaform experienced the same problem on a shipment to Italy, having sent a custom device to a new investor and partner, Formula One driver Yuki Tsunoda. The product was bounced back at the border. The issue? Once again: certifications.

If Plantaform was going to succeed, it needed to start creating an export plan—and dealing with the certification processes.

Certifiable: Blazing Plantaform’s path through international trade

Aguilar and the other co-founders knew that the key to getting Plantaform’s products to their international customers was to obtain the proper certifications. And they’ve found some strategies that have worked:

• Shipping in bulk. Plantaform knows that if its company is going to succeed, it’s going to have to achieve scale. And while one or two machines might have gotten across borders at the prototype stage, larger orders are more likely to raise red flags. “One of the ways that we’ve addressed this challenge has been shipping [products] in bulk,” reports Aguilar. This makes it easier to obtain one phytosanitary certification for each batch. According to Aguilar, that strategy is currently in place for Plantaform’s U.S. expansion.
• Developing an international presence. Plantaform has also expanded its global footprint. They recently registered a new corporation in Florida and are shipping “loads” of new inventory to a 3PL warehouse in Vermont. Once the products are in Vermont, it’s much easier to ship locally within the U.S. without concerns over any new certification issues.
• Add-your-own-seeds. The original device came with its own seeds, which made it more convenient. This was essential since the Plantaform systems are capable of adapting their cultivar conditions to each seed. But now Plantaform is experimenting with an add-your-own-seeds approach. The device can use machine learning (ML) to learn what’s growing, adapt to its needs, and adjust the cultivar conditions independently. It’s still a hands-off approach for the consumer. And since this system doesn’t require specific seeds to ship with the devices, there will be fewer shipping rules to worry about.
• Training. When Plantaform started, they weren’t aware of FITT, which offers training for handling the difficult logistics of dealing with customs. Aguilar has dubbed their learning process one of “trial and error,” with continuous adaptations as they learn the risks inherent in global trade. They’re also being proactive with how they learn, taking advantage of the Feasibility of International Trade course and the Creating an Export Plan course to be more systematic and avoid costly pitfalls

It’s been a long process of learning and adaptation for Plantaform. The company has learned that compelling technology isn’t always enough to make business success happen at scale. But thanks to these innovations, the future for fogponics is looking clear.

It’s a global market, and Plantaform’s seven-person team based in Gatineau, Quebec, has big ambitions. Plantaform manufactures its product in a factory in Montreal, so it’s fully Canadian and Quebec-made.

It’s a point of pride for the team—but it has led to some challenges. One of the appeals of creating a fogponic system for growing greens at home is that it can separate plant lovers from an intensive global supply chain. But to extend its reach to those customers—including those who need it the most—Plantaform has had to embrace a new challenge. They have to learn how to extend products and services to a global market.

Helping the world deal with the sustainability crisis

Pick up a piece of fruit at the store. The sticker likely won’t read “locally grown.” In fact, chances are good that the fruit came from another side of the planet.

“Every piece of produce that you buy in the supermarket has traveled an average of 2,400 kilometers just to get to your door,”

And that’s a major problem. It’s hard to get serious about environmental concerns like carbon dioxide removal when something as simple as purchasing an orange at the store may require ridiculous amounts of carbon just to make the logistics work. With geopolitical concerns weighing on the feasibility of international trade in the long term, the world is in dire need of sustainable solutions for cultivating fresh produce.

Plantaform’s goal is to make at-home produce more convenient and accessible—like starting up a Nespresso pod. For starters, growing produce at home reduces greenhouse gas emissions. Rather than relying on an extensive trade network that brings produce from one area of the world to another, people can enjoy fresh, organic produce year-round. If users are growing their greens at home, there’s also less food waste.

The idea is simple: put more control in the consumer’s hands. “We can try to buy organic products,” says Aguilar, “but how do we know if it’s truly organic? How many hands have touched it? I would challenge anyone to buy a bunch of cilantro or basil from the store, put it in water, and shake it up a bit. You’ll be amazed at all of the dirt that comes out of it—not to mention the microbes and chemicals from pesticides that you can’t see. That’s all stuff that you put in your body.”

It’s a sad truth about our modern agriculture. And while pesticide residue or dirt might not kill the consumer overnight, it’s certainly not helping. The industrial practices that lead to this kind of cultivation can lead to soil degradation at mass scales.

With Fogponics, there’s no need for cultivating soil, and there’s no need to continue to buy produce from companies who aren’t committed to a sustainable future.

Funding the products that change how we live—that just might stand a chance.

And all that R&D that goes into developing and improving their technology goes to good use, whether it makes it into their final products or not.

“Every Wednesday, we donate all the produce from our R&D lab to two incredible local organizations, the CRC Rideau-Rockcliffe CRC and Ottawa Good Food Box, both of which are fighting to make a difference in our community. At Plantaform, we’ve committed to donating hundreds of pounds of freshly harvested produce every year,” explains Alberto.

Finding inspiration in new technology—and new solutions

Planting greens in your own home is a small-scale solution. But Plantaform’s ambitions are at scale.

Aguilar points to a company he admires, Bowery and Aerofarms, as inspiration. “They’re incredible,” says Aguilar. “They’re in every corner of the world.”

As one of the largest vertical farming companies in the world, Bowery has a global presence that Plantaform would love to emulate. Aerofarms has partnered with companies like Emirates Airlines, growing produce for the airline’s flights straight from Aerofarms produce. Aguilar mentions that the goal isn’t to feed a thousand. The idea is to give people such at-home growing capabilities that Plantaform’s indoor gardens eventually feed millions of people.

Changing the world one plant at a time: People are beginning to notice

If you’ve seen Plantaform before, it may have been from Startup Canada. This national, grassroots organization aims to empower entrepreneurs across the country—providing resources like mentorship and networking opportunities to companies with great ideas who might not have the resources to grow themselves.

Plantaform pitched during the Startup Global program in 2022, performing extremely well—and even making it to the finale. Aguilar reports that Startup Canada has been following the Plantaform journey ever since. In fact, Startup Canada reached out to Plantaform and asked them to be part of a panel to help support other entrepreneurs in the agritech field as part of a  Sustainability Industry Advisor Circle.

Plantaform has already received considerable attention for its product. It was featured as “Startup of the Year” by Faces Magazine, won the 2023 “Next Big Thing” award at the Best of Ottawa Business Awards, and “Tech Smallbiz of the Year” by Zenbooks. It earned the aforementioned semi-finalist status at Startup Global and additionally won “Ottawa’s Green Initiative of the Year” from Faces Magazine.

Plantaform’s journey from a university thesis to a global player in indoor gardening shows just how much is changing around the world. Innovation, adaptability, and understanding international markets are going to be more important than ever as the 21st century unfolds. With a clear vision for the future and a commitment to sustainability, Plantaform is poised to make a lasting impact on how we grow and consume our food.

The post A Canadian startup’s quest for sustainable agriculture and global market success appeared first on Trade Ready.

Looking for ways to survive, recover any thrive again, businesses are doing everything they can to increase cashflow and efficiencies. But a recent U.S. Bank study by found 82% of businesses fail due to cash flow mismanagement.

When it comes to international businesses there is an increased layer of complexity and expenses to consider. To find out the most impactful ways businesses can reduce costs and keep cash flowing, FITT brought together experts in customs, shipping, international business strategy and import/export finance.

We explored partnerships, product adaptation, customs issues and preventative measures, shipping methods pros and cons as well as funding options and other cost cutting strategies relevant to international businesses of all sizes.

Watch the full webinar including a LIVE Q&A with the panel

Small business strategies to cut costs without damaging your business

Bernadette Fernandes – Founder & CEO, The Varanda Network

Bernadette’s global business career began in 1986 and has spanned several sectors. She has spent the last 10 years consulting her Varanda Network clients all over the world. She is passionate about helping SMEs develop their export readiness and connect them to business opportunities in markets worldwide.

What are some costs that businesses can cut from their budgets without damaging their businesses?

Bernadette:
Well, in an ironic way, COVID has cut a lot of those costs for us, such as travel. I can’t say that it was without damaging our businesses, as revenues are almost always negatively impacted when big opportunities are cut such as traveling to meet a buyer or to cast our nets wide at a trade show or networking event. But certainly cutting what I call “non-essentials” early on and focusing on profitability will lessen that impact. Costs could be cut would be things like office space. If you’re leasing for example, you could negotiate a new lease agreement given the remote working that’s happening due to COVID. Office supplies, such as printing, coffee, post, especially if you have less people coming into your office space are an easy cost to get rid of.

Technology is a tough one because I don’t normally advocate cutting technology, especially the technology that allows you to automate and streamline. But now’s not the time to invest. So if you’re looking at an inventory management system, for example, you may want to defer that decision and make do with spreadsheets and data entry. Corporate training is another one. Training and education is so important, but this is an area where you can instead focus on the best practices training that exists within your own organization. And then as much as I hate saying this, consulting services like mine would be a place to cut and focus on your more essential services.

Could you expand a bit more on what businesses should definitely not economize on right now?

Bernadette:
The top thing that I don’t think anyone should ever economize on is people. I don’t think that businesses should start looking at saving on their talent. The cost of getting them back tends to be far greater than retaining them. But if HR is your biggest cost, the one thing you can do is to shift the responsibilities to more revenue generating activities, streamlining processes to become more efficient and productive and things like updating your website and collateral.

By the same token, it is tempting to reduce wages or to lay off as a quick fix in times of crisis. But I find it’s always better if your people costs are so high that you have to do that, to reduce hours than to potentially use your top talent.

Marketing is typically among the first costs that people get rid of. But marketing is so essential because you’ll probably be looking to identify new target markets and develop new outreach strategies. So if you cut marketing, you will definitely damage your growth potential.

And lastly, I would say insurance. A pandemic is bad enough let alone a disaster accident in your operational facilities, but also insurance to cover product delivery and customer payments.

Could you tell us about some strategies that businesses are using to adapt and pivot while also keeping those costs down during a crunch time?

Bernadette:
Well, I see businesses showing their resilience all over the place, and in adapting to things that are beyond their control, like attending Zoom meetings instead of travel. In my line of business, I’m seeing a lot of virtual trade missions and site visits that we weren’t seeing before. And in some cases, when physical site visits are absolutely necessary to visit a supplier or a buyer, I’m seeing a lot of temporary outsourcing. An example of temporary outsourcing as I call it, would be contracting local boots on the ground to visit and gather the decision-making criteria that you need.

In terms of pivoting, the strategy I’m most seeing is a transformational strategy, mostly to digital and virtual business models, leveraging and maximizing on things like social media and advertising on Facebook for example, where it’s so inexpensive and effective for target marketing. Some businesses that have never leveraged government programs or funding, have found it useful to start leveraging some of those reimbursement programs or incentive programs to generate additional revenues.

And what I personally recommend is to focus on what you do well and cost-effectively, but expand your footprint. So you don’t have to reinvent or rethink, just go deeper into the market. But what businesses are doing most isn’t really a strategy at all but it’s just being ready to think and act fast.

Innovation and time to market are both critical during times like these. At the onset of COVID, many companies were able to pivot almost overnight to provide critical equipment and supplies, the respirators, the ventilators, PPE like face shields and gowns and rapid testing and disinfecting autonomous robots.

Finding, improving and optimizing partnerships to do more with less

Sonia Galat – Founder & Managing Director, Africa Business Venture

Sonia is the director of Africa Business Venture, an online platform providing advice and solutions for companies that are looking to do business in Africa or expand within the African markets. She is also the director of the Chamber of Commerce of the Ivory Coast. Coming originally from a legal background, Sonia has extensive experience working with international companies in the energy sector, helping them to outsource their supply chains and implementing global partnerships.

Sonia, what are some ways that businesses of all sizes are using partnerships to improve their business offerings, and efficiency?

Sonia:
Depending on what businesses want to achieve, they can use partners to enter new markets and develop some new channels. They might want to create new intellectual property or put their resources together to develop some new infrastructure or simply to reduce risk. I’m specialized in Africa and gaining access to new markets there. Having a local partner that already has a customer base and a niche is something that can really be helpful for companies. Especially now, this is the period where everybody’s at home, everybody’s more open to discussion, so this is a very good time for SMEs to position themselves in a market they may have never have previously considered.

The other elements that where you can use partners to reduce on costs could be sharing a piece of technology. See which elements of your company could be used by another company and create a whole new service, and test multiple things with different partners and see where it will lead. Another way to reduce inefficiencies and cut costs is to look into outsourcing the administrative tasks or low-level tasks that take a lot of energy and resources to countries such as Mexico or South Africa or any other countries where those low level tasks could be accomplished at a lower cost. That will free you up to put your resources and energy into developing new products that will help you get back to growth.

Can you tell us more about how businesses are finding these types of partnerships and ensuring that they’re a good fit for their business plans?

Sonia:
The first thing businesses should do is look at their existing partners. Is there any room for improvement? I often see businesses sign a partnership but then never put the marketing resources behind it to really develop the partnership. Is your partner trying to compare new markets? How can you support your partner? Once you’ve done this exercise, if you’re looking for new business partnerships because maybe you want to go into new territories, you will a lot of resources and databases available to help find potential partners.

I also recommend looking into joining a local Chamber of Commerce. They are great places to meet potential business partners. Trade organizations and associations are also really good places to find business partners that are pre-vetted so you know that they have the same vision in terms of what they want to achieve. And look at the virtual events that are happening at the moment. For a lot of SMEs, the cost of trade exhibitions is very high so they can usually do only one or two trade exhibition trade exhibitions per year. But right now the virtual trade exhibitions are almost all completely free, perfect for SMEs.

If there’s an opportunity to speak at a virtual event, that can be great visibility, or you can network online with other attendees. And one other place where I found some of my best contacts is through LinkedIn. You can use the LinkedIn sales navigator, but ensure you have a real strategy in terms of sourcing your contacts.

What are some of the ways that you’re seeing companies use technology to improve efficiency?

Sonia:
At Africa Business Venture this year we really dug into online marketing tools to automate how we reach out to customers and generate leads. I had no idea how many tools were out there, but they all offer free services. To take advantage of them you should develop a commercial strategy to reach new business opportunities by implementing those tools. We talked about attending virtual trade shows, but you could also create your own event with a focus on your own business and what your business can bring. Using platforms like Zoom, any business can create a whole curated event centered around their expertise and these events can be a perfect way to showcase their products.

Then when it comes to team development, you have also all of the online training that is available. There is so much content out there at the moment that this is a great time to dig into some online training for your staff to prepare for the next phase of your business.

Reducing customs and shipping costs is about more than just shopping around for the best prices

Rahim Mohtaram – Global Supply Chain and Purchasing Consultant, Smartech Investment Corp.

Rahim has been working in global supply chains for 15 years and has negotiated and executed more than 155 international contracts in sales, purchasing, agencies and distributors in 25 countries. He is also a CIFFA certified instructor and provides consultation on cost reduction strategies.

Where are importers, exporters losing money in international shipping right now?

Rahim:
Let’s look at our attitude about costs and price. I’ve seen many companies who are trying to decrease their costs by just decreasing the fees of customs brokers or transportation companies. A very important point which I always advise my customers to have in mind is that you have to think about the total landed cost, not just about the price that you are paying for services. In some situations, decreasing certain costs requires increasing some other costs in other fields. For example, if you pay a bit more to a professional transportation company for their freight, you may avoid many hidden costs.

Businesses are often surprised with hidden costs over the course of their supply chain. I expect my transportation company to clearly explain me what types of costs are included in their fees and what types of costs are not included. So we have to define the exclusions and inclusions. For example, sometimes I might give incorrect information to the transportation company about the weight and that might cause a very high fine such as, VGM, Verified Gross Mass. You should do the work to have a clear and comprehensive agreement with the transportation company and customs brokerage companies you work with.

I have a tip for small businesses: pay attention to abbreviations! When you see in your contract or in your quotation, the abbreviation, for example my price is $1,000 FIOST. FIOST means Free In Out Stowed and Trimmed. This has a technical meaning. And if you do not understand the meaning of this, it means that you will be surprised when you will receive your invoice. So, whenever you see something that you do not understand, ask for a clear definition.

Are there any other cost-saving logistics strategies that you’re seeing businesses employing right now during a time of disruption?

Rahim:
I think when we talk about costs, it’s not good to just talk about financial costs. We have to pay attention to some costs which are related to time and to headaches. Instead of just decreasing the financial costs, I suggest companies keep more inventory, because your credibility is more important than $1,000 or $2,000. Try to have some alternatives from local suppliers instead of buying 100% of your products from overseas.

Also ensure the optimum usage of weight and volume in air transport and road transport. We have to make the best of the space that we have. Along with that, ensure you are using the most suitable packaging for your product and your mode of transport. One of the best ways to do this is to have close relationship with your partners and suppliers and always look at ways of decreasing the costs together. Because we are a part of the same competition unit. Nowadays experts say that companies do not compete with each other, supply chains are competing with each other. So we have to find solutions along with our suppliers and with customers, and we have to work together to find the best solutions. Engage with customs brokers as early as you can because the rules are changing fast and you need the updated information.

Increasing your cash flow through financing may be more accessible than you think

Amesika Baeta, CITP – Senior Account Manager, Export Development Canada (EDC)

As a senior account manager at Export Development Canada, Amesika works with companies of all sizes, of all industries, helping them take their business abroad providing them with trade finance, knowledge and risk mitigation strategies. She has worked in international trade for over 10 years.

For businesses who are looking to increase their cash flow during a tough time, what are some of the available finance options?

Amesika Baeta:
This is probably the number one question that I receive, companies asking how do I access the necessary cash flow or working capital to grow my business? And what I tend to see is a company’s first step is always to run to their bank to ask for money. However, I feel strongly that running to your bank without being prepared can actually force you to lose out on opportunities to improve your position. This question come down to three important key items:

The first being self-evaluation in terms of the cost cutting experience. Does your company have a business plan? Have you adjusted your business plan to reflect the current pandemic? And by doing so, you are evaluating your business processes, the priorities for your company at this time, and really determining where that cashflow or that working capital is needed in your business at this time. Part of that strategy is also evaluating your expenses and reviewing what expenses can be cut. So for example, I’ve had some clients who’ve cut their executive pay, they’ve maybe reduced bonus payouts, sometimes reduced their workforce or they’ve found better efficiencies within their operations where they could quickly pivot to sell online as well.

Secondly, working with your current clients can also be a strategy, such as asking your clients for larger deposits or installment payments to get cash in the door much quicker. In this time, companies are very aware of the difficult position that various companies are in, especially when you’re a small business. We have to remember that conventional business practices are changing and you have to find the best practice that will suit your business. If your company has traditionally given longer payment terms such as net 60 or net 90 day terms, maybe this is a time where you should be re-evaluating that and cutting that back. Maybe you should only be extending 10 days or 15 days or maybe 30 at most in order to get that cash in as quickly as possible.

I also recommend, depending on the type of industry that you’re in, whether you provide a service or a product that you should be working with your clients to figure out whether there’s another type of product or service that they need at this time, and this can be another source of additional revenue for you. Right now, companies do not want to be going to multiple vendors or suppliers to provide them with the resources that they need. So if you can find a way to fulfill that need for them, it will not only bring more revenue into your business, but it will also further cement your relationship with that client because you’re serving their needs. So do not hesitate to speak to your clients, ask them what they need at this time and see how you as a business can support those needs.

And lastly, let’s talk about working capital. I know as a small business owner, it can be really scary to go to your bank, but I’ll tell you, the banks do have appetite right now. This is a social crisis with economic impacts, meaning we’re not yet in a recession so the banks do have a lot of money. Speak to them to see what they can do for you at this time, whether that means bumping up your operating line or establishing a new operating line.

It’s also important that businesses look at the different government programs that are available right now. EDC in partnership with the banks right now have a BCAP guarantee program, which is the Business Credit Accessibility Program, which helps get working capital to companies who are having specific cashflow challenges as a result of the pandemic. You do not have to be an exporter to apply for it and EDC is providing the 80% guarantee which will enable the bank to have more appetite to lend you the working capital that you need.

EDC itself is another great resource to go to for working capital right now. They are the small business bank and provide a variety of types of financing options for clients. Factoring is another way to get that cash flow that you need to complete a contract – you sell your purchase order to a factoring company and they will give you money up front so that you can use those proceeds to complete the contract. So these are some of the great measures that I think companies can think about and implement to improve their cashflow during this time.

Learn everything an importer or exporter needs to know about payment, risk mitigation, financing, and the flow of goods and services

How does insurance play into cost savings and what is your advice about how businesses can approach that right now, especially the ones who might be struggling?

Amesika:
We know that risk is inevitable as a business owner, especially when you’re doing business abroad. The real key is to evaluate where your risks are and have a plan to mitigate them. By having a plan and being prepared for whichever scenarios may arise will save you money down the road. You won’t be blindsided for any foreseen costs or charges that you didn’t know were coming. Credit insurance or what’s often referred to as “accounts receivable insurance” is a cost of doing business. It helps mitigate your risk of not getting paid. That saves you a lot of money because the amount of effort and time that go into replacing that revenue is a lot more detrimental and a lot more expensive than it is to pay for insurance in this time.

The post Save Money & Recover Faster – How international businesses can reduce costs through smarter shipping, partnerships & financing appeared first on Trade Ready.

Kellen Spence, now an Account Manager with the Erb Group in Kitchener, Ontario, got his start in international trade while working in manufacturing and quality control at BlackBerry.

“I have always been interested in international trade and global supply chains. I worked for BlackBerry after high school and I watched the supply chain gradually become global, and then the manufacturing activities were outsourced to foreign markets as well. It was at that time I decided to jump straight into the international trade industry.”

After nearly five years there, Kellen accepted a new position with Farrow, one of North America’s largest logistics, customs broker and compliance companies, as a Customs Release Agent. In this role, he worked with clients to facilitate the release of their goods from customs, ensured all shipping and customs documents were completed and filed properly, and dealt directly with CBSA to solve any client issues.

As his responsibilities evolved, he then took on a new Business Development Analyst position. He helped research and prospect qualified leads, analyzed client activities to find new ways to assist, built relationships with new clients to meet their logistics needs.

Since evolving job responsibilities are increasingly common, trade continues to change at a rapid rate and resources are available, he recommends other trade professionals in a similar situation do everything possible to stay up to date however possible.

“Read! Consume as much industry content as you can get your hands on. With the advent of Youtube and other video recording platforms, I now watch as much industry related content as I can as well.”

Applying his skillset to a diverse set of logistics experiences

Over the past few years, Kellen has tackled a varied set of challenges within the logistics industry. When he first started with the Erb Group, his current employer, he worked with truckers to ensure their manifests and other documents were accurate, plan shipments based on availability, and assist them in other ways, including speaking to CBSA and CPB on their behalf regarding border crossings and compliance questions.

As an Account Manager, he now works with clients to find the best solutions to their specific opportunities and problems, and foster productive long-term business relationships with a multitude of companies.

“I’ve been fortunate enough to work on a couple of projects with a large fair trade retailer based in southern Ontario,” he explained to illustrate the kind of projects he works on. “Combining my passion for global trade and fair trade has by far been the best story to come of my career so far.”

As he worked with clients, he wanted to expand his knowledge into other areas of international trade and maximize his potential opportunities, so he took the FITTskills courses online.

FITTskills was a great experience and has given me the knowledge needed to leverage my career and develop brand new opportunities.

“I enjoyed the International Trade Finance course the most. Understanding different insurances and financial instruments that can be used to mitigate and eliminate risk is an area not usually explored within the logistics industry. It allowed me to bridge the gap between the finance and logistics business functions.”

Matching experience with the education and credentials to back it up

Once he completed all six FITTskills courses to earn his FITT Diploma, Kellen successfully applied to become a CITP (Certified International Trade Professional) to prove his competency and skills in global trade and continue to help his company achieve their goals.

“I feel extremely optimistic about the potential opportunities that the CITP designation will bring in my career. I plan to help my company build brand new services and solutions that focus on global markets. I strongly believe that the CITP designation is my platform to achieve this.”

His CITP designation, along with his other credentials, experience and education, now serve as a point of pride as he continues to make new strides in his career.

“I’m most proud of the diverse experience and education that I’ve gathered so far in my career. Having the opportunity to work in customs brokerage, international freight forwarding, and trucking has allowed me to package that knowledge along with my Certified Customs Specialist designation, an advanced certificate in freight forwarding from the Canadian International Freight Forwarders Association, and now the CITP designation. I now have an excellent hand of knowledge cards to play as my career progresses.”

The post Kellen Spence, CITP|FIBP – Account Manager appeared first on Trade Ready.

International trade transactions involve considerable negotiation between sellers and buyers to determine which party will pay for transportation, cargo insurance and other costs associated with shipping goods, as well as who is responsible for the goods at any given time during shipping. Given differences in culture, language and government regulations, negotiations have the potential for confusion and misunderstandings, which could result in irresolvable disputes.

In 1936, as part of their work towards rules-based trade, the International Chamber of Commerce (ICC) created a system of standardized international trade terms, known as the Incoterms® system, that represents different methods of transportation and assumption of risk and cost between sellers and buyers.

The use of the Incoterms® system is for domestic and international trade and refers to the parties as gender-neutral buyers and sellers.

New Incoterms® 2020 rules come into effect soon

Since their inception, Incoterms® rules have undergone seven revisions in order to reflect the development of international trade. At the time of this publication, Incoterms® rules 2010 are in use, but new Incoterms® 2020 rules have been introduced and will come into effect on January 1, 2020.

Contracts made under Incoterms® 2010 rules remain valid even after 2019. It is recommended that you use Incoterms® 2020 rules after 2019, however, parties to a contract for the sale of goods can agree to choose any version of the Incoterms® rules. It is important however, to clearly specify the chosen version of Incoterms® rules, either 2020 or 2010. If using Incoterms® 2010 in the contract of sale, be sure to understand what the older terms mean.

What are Incoterms® rules?

Incoterms® rules are used in negotiations to resolve specific terms and conditions of sales contracts by addressing the following:

• Costs: Who is responsible for the expenses associated with a shipment at a specific point in the shipment’s journey, such as export packing costs, the main transport costs and custom duties?
• Risks: Who bears the risk of loss or damage to the shipment, i.e. who is responsible for the goods during transit?

Incoterms® 2020 rules clearly define the obligations and responsibilities related to the transport of goods for both the seller and buyer. Incoterms® 2020 rules should not be considered a contract of sales. They do not:

• Provide specific details of transfer points, transport, and delivery (must be defined in sales contract)
• Determine ownership or title transfer of the goods
• Determine payment terms
• Apply to intangible services
• Define contract rights or dispute processes
• Relate to goods before or after delivery
• Specify the types of document to be issued or what their content should be
• Provide default Incoterms® rule

It is worth noting that Incoterms® rules include the use of electronic data information systems for customs purposes and other documentation and information exchange. The terms also include customs requirements for security for specific types of goods including chain of custody documentation.

Although many reference tables suggest that buyers must buy cargo insurance, the Incoterms® rules do not specify insurance as a requirement, except for two Incoterms® rules: CIF and CIP require the seller to purchase cargo insurance for the benefit of the buyer, i.e. the buyer can make a claim for loss or damage directly to the insurance company. The rest of the terms do not require the seller to obtain cargo insurance, nor do the terms require the buyer to obtain insurance.

The decision to purchase cargo insurance is the responsibility of buyers. However, given the cost of replacement and the loss of profit should cargo be lost or damaged, it is generally in buyers’ interest to obtain cargo insurance. Organizations should consider the cost of insurance in a per-transaction basis versus the utilization of an umbrella insurance that can cover all of their shipments.

Each of the Incoterms® rules represents a different situation involving the domestic or international movement of goods. Incoterms® rules also deal with the documentation that is required for international trade because they specify which parties are responsible for producing each document. Because documentary requirements vary so much between countries, this specification is very helpful in facilitating trade transactions.

What are the different categories of Incoterms® rules?

There are two categories of Incoterms® rules:

• Rules for any mode or modes of transportation
• Rules for sea and inland waterway transportation

Each Incoterms® rule is referred to by three letter abbreviations, and are usually listed by category of transport. It is important to note that there are several charts with images for Incoterms® rules online, and they tend to have significant differences. The key to learning Incoterms® rules is not to memorize, but to interpret each of the rules. Depending on the shipment’s point of departure and point of arrival, and the modes of transportations used, rules might or might not apply.

The first letter of the abbreviation provides information on the focus of that group of terms:

• Terms beginning with the letter E indicate that the seller’s responsibilities are fulfilled when the goods are made available for shipping by the buyer’s chosen carrier. There is only one rule under the E term: EXW.
• Terms beginning with the letter F refer to shipments where the primary cost of shipping, or main carriage, is not paid for by the seller.
• Terms beginning with the letter C refer to shipments where the seller pays for a portion of the shipping, usually the pre-carriage and main carriage, but the seller’s responsibility ends when the goods are delivered to the carrier somewhere on the seller’s side.
• Terms beginning with the letter D are destination contract terms because the seller delivers somewhere on the buyer’s side. The shipper or seller’s responsibility ends when the goods arrive at a predefined point. Delivery on the buyer’s side means that recognition of payment is deferred. With these terms, the seller pays the pre-carriage, main carriage and onward carriage.

The post Read this Incoterms® overview to start preparing for the new Incoterms® 2020 updates appeared first on Trade Ready.

Whenever organizations try to enter a market, they will encounter some obstacles or conditions that make entry more challenging, more expensive or even impossible. Without a full understanding of the different types of market entry barriers, organizations may choose an ineffective market entry strategy. The research and risk analysis completed as part of the feasibility study may reveal potential barriers.

Here are nine of the most common market entry barriers and potential strategies to address them.

1. Trade and economic sanctions

• Choose a different market not affected by economic sanctions
• Export a different line of products/services not subject to trade sanctions
• Delay market entry if it appears sanctions may be lifted

2. Export and import controls

• Select a different market with which to trade
• Develop alternative goods/services to trade

3. Customs tariffs and taxes

• Develop value-added activities in the target market, such as after-sales service, that are not subject to tariffs and will enhance the value of the more expensive product
• Start producing goods in the target market to avoid the need for importing
• Partner with an organization in the target market that will produce goods at its facilities

4. Import and tariff quotas

• Export to a different market
• Develop products/services that will not be subject to quotas
• Produce goods/services in the target market to avoid having to import

5. Government subsidies

• Develop value-added activities in the target market to increase the attractiveness to foreign purchasers
• Adapt the product or service to give it more appeal and justify the enhanced price

Want to learn more about developing a strategic plan for market entry? Check out the FITTskills Planning for International Market Entry online workshop!

6. Trade blocs (if the organization’s nation is not a participating member)

• Partner with an organization in a preferred trading relationship with the chosen market or in the chosen market
• Set up a subsidiary organization in the chosen market or in one that has a preferred trading relationship
• Invest in production facilities in the chosen market to avoid the need for exporting
• Adapt the product or service to enhance its perceived value and justify the increasing price

7. Political instability

• Enter the market for a short-term venture only
• Limit exposure by not locating facilities or employees in the country
• Request cash or an irrevocable confirmed letter of credit up front, before delivering goods or services

8. Customer preferences (product familiarity, religious and cultural aspects, language, etc.)

• Adapt products or services to appeal to the target market

9. Economic barriers (costs for land, construction, raw materials and resources, tax rates, market wage rates)

• In markets that will not bear the cost of the product/service, assess ways to cut costs
• Reposition product/service as a luxury item
• Specify payment in stable currencies
• Use hedge funding techniques to mitigate currency risk

How will you handle the market entry barriers facing your business?

Careful research will identify potential problems in a market and those problems will vary from one market to another. For example, Canadian exporters to the U.S. might not encounter many cultural barriers, but they will have to overcome those imposed by U.S. protectionist legislation.

It is important to evaluate exactly which barriers apply to which markets. Only then can decision-makers responsible for logistics, marketing and distribution develop a plan, recommendations and proposed solutions to overcome or minimize the impact of the specific barriers, allowing for the desired market penetration.

There are few barriers, no matter how difficult or insurmountable they seem, that cannot be overcome or at least minimized. The process requires a detailed study of each barrier and consultation with available experts, including local business people.

A preferred strategic approach is to use partnering to help overcome most, if not all, barriers to entry. Local partners can provide insights and useful advice into market dynamics, serve as representatives and agents, and become business associates and even permanent joint-venture partners. A careful use of partnering strategies can go a long way toward eliminating barriers, reducing risks and smoothing the way to market entry.

The post Overcome 9 of the most common market entry barriers with these strategies appeared first on Trade Ready.

Governments use export clearance, customs and security clearance processes to monitor trade, collect revenue and prevent criminal and terrorist activity. These processes also provide data that assist governments in assessing the state of their economies and the need for regulatory changes.

As countries continue to move towards integrating their economies and removing trade barriers, the regulatory processes of exporting and importing should become easier, however that does not remove the need for continued collection of data, therefore documentation will continue to play an important role in the import and export clearance processes.

Given the number of countries in the world, it is impossible to offer one set of guidelines that would cover all eventualities, especially because requirements and procedures can change frequently. However, due to the WCO and the adoption of international recommendations for customs and border security practices, there are some common activities required of exporters and importers.

First, take care of the basics of export clearance

The export clearance process will differ depending on several variables:

• The trade regulations of the exporting and importing countries
• Type of goods being exported, e.g. restricted, food products
• Free trade agreements currently in force
• Level of customs and border security agency’s use of information and communication technology, e.g. Electronic Data Interchange (EDI)

With consideration of the above variables, typical activities for obtaining export clearance could include all or some of the following:

• Registering with customs and border security agency, e.g. obtain export/ import business number
• Determining country of origin for the goods being exported
• Ensuring product is exportable, i.e. not a prohibited good or service
• Ensuring product is allowed into importing country
• Determining HS code for product
• Filing export declaration, if required
• Obtaining export licences or permits, if required
• Obtaining product-specific/packing certificates and import specific documentation
• Determining shipping method and identifying reporting time frame

Want to learn more about how to keep your customers, clients and suppliers happy by transporting goods in a timely manner and in compliance with all regulatory requirements? Check out the FITTskills Global Value Chain online course.

What do the Incoterms® rules say?

Submitting export declaration and other documentation to customs and border security agency prior to shipping, if required

• Shipping goods as agreed upon with importer
• Providing certificate of origin and other documents to importer or importing country’s customs and border security agency
• Keeping export records for required time period

The responsibility for the cost and completion of these tasks will vary depending on the sales contract agreement, usually defined by the agreed upon Incoterms® rules. It is to the mutual benefit of both the importer and exporter if they help each other complete the export clearance process.

Next, check the local laws and regulations for further requirements

There are other factors that must be considered when exporting goods, including:

International export regulations:

Most countries have some form of export control. For example, 41 countries are signatory members of the Wassenaar Arrangement, which was established in 1996 to establish controls over sales of arms and dual-use products and technologies.

The control lists covered by the Wassenaar Arrangement cover a wide range of goods and technologies, including protective clothing, materials used in aircraft construction, metal alloys, many chemical compounds, submersible vehicles, robots designed for underwater use, telecommunications equipment, satellite components and many forms of software.

In order to export any of the controlled products or technologies, certain procedures must be followed. The importing company will often have to assist the exporter to obtain an export licence from its government, usually by providing an import certificate or other documentation.

Where an export licence or permit is required, both the importing and exporting companies need to consider the time it will take to obtain exporting and importing licences/permits when planning delivery schedules. The importing company must also include clauses in its agreements to require the exporter to obtain all required licences.

Exchange control licences:

Most countries also have some form of foreign exchange control, i.e. controls over the amounts of foreign currency in their economies. This means that exporters may have to provide proof that they will be paid by the importer in a specific currency before they will be permitted to export valuable products. Importers may also require a licence from the exporting country to convert payments into local currency to pay exporters. Importers should check whether this is necessary because otherwise delays might result while exporters wait for payment.

Some countries require payment to be made by specific means, such as a letter of credit. Some governments also impose strict payment regulations on all foreign trade contracts in order to ensure payment.

Export quotas:

Export quotas are restrictions imposed by a government on the amount or number of goods or services that can be exported annually. The purpose is to ensure that domestic prices of this good or service do not increase because of exports. Importing companies must make sure there are no foreign government quotas that could make their purchase agreement unsustainable.

Have all your documents ready – here’s what else you may need

Standard export transactions require that the exporter provide standard documentation to accompany shipments of goods:

• Commercial invoice
• Bill of lading or transport document
• Export declaration
• Packing list
• Insurance documentation
• Certificate of origin

Documentary requirements can vary significantly, due to the specifics of a transaction or shipment, as well as the payment and financing arrangements, which may be based on the tendering of documents by the exporter, depending on the agreed mechanism of settlement.

In addition to this standard list of documents, some export trades might require additional documents because of complications or the nature of the goods being transported.

These documents include the following:

• Export licences or permits: Either general (permitting any good to be exported, usually for shipments exceeding a specific value) or specific (required for restricted or controlled goods).
• Dangerous goods declaration: A statement about the contents and emergency handling of a dangerous goods shipment.
• Exchange control document: A declaration that the payments received for the shipped goods follow regulations.
• Inspection certificates: A certificate confirming that certain products (including packing materials) have been inspected for safety or conformity purposes.
• Consular invoices: Invoices provided by the importing country’s consulate located in the exporter’s country approving the shipment for import. It is important that the information on documents is complete, consistent, and accurate, whether electronic or hard copy.
• Intellectual property registration: When exporting to another country, it may be necessary to ensure that intellectual property is protected. It is prudent to check and register patents, trademarks, and copyright in the importing country to prevent infringement. Despite efforts, protection will depend on how rigorous the importing government’s regulations are, as well as the level of enforcement.

The post Use these lists to get through the export clearance process more quickly appeared first on Trade Ready.

While it’s common to meet local residents during trips to other countries, few of these incidents have had as lasting an impact as the trip Takayo Shinji took from her native Japan to visit tea farms in Ningbo, China.

“I had a chance meeting with an old woman, who must have been 80 or 90, in one of the villages near to Ningbo. As we spoke and she explained how they dealt with the tea leaves, I realized she had likely witnessed the Japanese invasion of the area during the Second World War and could have lost relatives or friends during that invasion.”

“I was afraid to talk to her much longer, worrying I would hurt her feelings. So I bought a handful of tea and said ‘Thank you’ in Mandarin, preparing to leave. Right after I said it, she smiled, cried a bit, and replied ‘That’s what I was supposed to say to you. Thank you for buying these tea leaves.’ Seeing her forgiveness towards my country was a transformative moment, and helped me deal with my own feelings about my country and its past. She enlightened my life, and the experience motivated me to study abroad and work to improve the livelihoods of people like her through international trade.”

Moving to Canada to build her global trade skills

Soon after, Takayo moved from Japan to Vancouver, British Colombia to study at Ashton College and take the FITT-accredited International Business Management Diploma program.

“The instructors there helped cultivate the abilities of each student, and were always fair in all of their assessments and evaluations. I enjoyed learning more about global business and trade law, and would also recommend the International Trade Finance and International Sales and Marketing courses.”

Throughout the program, she also kept focus on her original goal of helping farmers and agricultural workers in less populated areas, particularly in China. Her sales and marketing project focused on how companies can take advantage of ASEAN regulations and China’s domestic transportation system to move more goods from China to neighbouring countries.

For her business plan project, she provided a product export model for small-scale domestic agriculture enterprises. Takayo’s supply chain project focused on how comprehensive multi-modal transport systems could revitalize local farming and manufacturing.

The program also offered opportunities to use some of what she learned in practical settings. Takayo took advantage of these opportunities to take on internships as an operations assistant in ocean freight at CEVA Logistics in Richmond, BC and at Canaan Transport Group in Vancouver.

Back to Japan to put her skills into practice

Upon graduating from her program at Ashton College and earning her FITT Diploma in International Trade in 2016, Takayo moved back to Japan to take a position with Sanko Air Seltech Ltd doing logistics work. A few months later, she started a new position at the Tokyo International Air Cargo Terminal as vice manager and export operator, offering her greater responsibilities.

Her duties included checking the condition of cargo, booking arrangements, handling contract documents and special load notices, customer service and data entry and management.

“We worked hard to ensure there were never any errors with any cargo or shipments, but it was still always a relief to hear when flights would land without any problems. Our team did an excellent job each and every time, and performed each step of our routine confidently and efficiently.”

She is now looking for a new role that will align with her goal of ensuring global trade will help society as a whole, and feels optimistic about her career future.

“I would like everyone to feel secure and hopeful for their future wherever they live. For all people, I want to improve infrastructure, energy supply, economic disparity, educational systems, welfare service, and more. I am going to improve these issues through working in international trade, step by step.”

Priming her future with prestigious professional achievements

Takayo has worked hard to add several awards, accomplishments and certifications to her resume. In 2016, she was given an award in excellence from the Institute for International Business Communication, an organization based in Japan focused on helping professionals who are trying to improve their English and global trade skills.

She also has her Canadian Transport of Dangerous Goods Certificate, Canadian Sales Professional Certificate, British Columbia FOODSAFE Certificate, Levels 1 and 2, and is a licensed customs specialist in Japan.

“I wish I had known what certificates I should get when I started my career in global trade,” she explains, “as they are so important to advancing my career goals.”

Her latest and proudest achievement was earning the elite Certified International Trade Professional (CITP®) designation in January 2018.

Having the CITP® designation will demonstrate my skills and expertise, and make any employers feel comfortable that I have everything I need to work for them. It also adds credibility to my career when doing business globally.

I’m grateful to everyone who has patiently supported me along the way, and helped me reach this important goal.”

With a strong sense of purpose and direction for her career, and her experience and accomplishments in hand, Takayo is poised to make waves in global trade in the years to come.

The post Takayo Shinji, CITP|FIBP – Logistics and Customs Specialist appeared first on Trade Ready.