Some professionals find their way into international trade by chance. For Ismail Benmezdad, CITP, it was a deliberate choice. From early in his career, he was drawn to the scale and complexity of global commerce; how goods move across continents, navigate regulatory frameworks, and ultimately reach the markets and communities that rely on them.

“I was drawn to international trade because of its complexity and global scope,” he explains.

“I wanted a career that combined strategic planning, analytical problem-solving, and the opportunity to connect markets across borders.”

That combination of strategy, execution, and global integration has defined his professional journey.

Rising through the ranks: where operations meet ingenuity

As Director of Operations at KLN Logistics Inc., Ismail leads large-scale logistics and warehouse operations, aligning service performance with financial and strategic objectives. His career progression reflects a consistent ability to safeguard revenue, manage risk, and deliver operational transformation.

One pivotal experience involved a high-value shipment placed under unexpected customs hold, threatening a major client commitment.

“The hold would have disrupted delivery timelines and placed a strategic account at risk,” he recalls.

“By engaging customs authorities directly and aligning cross-functional teams under accelerated timelines, we mitigated the risk and preserved the client relationship.”

Beyond immediate problem resolution, such situations underscore the importance of structured risk management and proactive stakeholder engagement.

In another initiative, he led a comprehensive warehouse optimization program that reduced operating costs by more than 20% while improving service reliability.

“The real achievement was not only cost reduction,” he notes, “but creating a performance-driven culture that connected operational efficiency with customer outcomes.”

The initiative integrated process redesign, performance metrics, and targeted technology enhancements, laying groundwork for sustainable operational scalability.

Engineering stronger supply chains

In his leadership roles, including Director of Operations and former Terminal Manager, Ismail has overseen complex freight and warehouse networks, implementing initiatives that enhance service levels while controlling cost structures.

“One of the most impactful projects involved optimizing freight operations to simultaneously reduce transit times and operating expenses,” he explains. “The outcome strengthened both customer satisfaction and overall operational performance.”

These improvements were driven by disciplined route analysis, vendor negotiations, workforce alignment, and a willingness to challenge legacy processes.

His experience reinforces a fundamental principle: operational excellence is not accidental, it is systematically designed.

The lesson he wishes he learned sooner

Reflecting on his career, Ismail identifies adaptability as the most critical leadership insight.

“The most valuable lesson I learned is that adaptability must be embedded into operational strategy,” he says.

“Global trade is influenced by regulatory shifts, geopolitical volatility, and market fluctuations.”

“Organizations that succeed are those that institutionalize agility—through scenario planning, diversified partnerships, and continuous improvement.”

For him, adaptability is not reactive. It is a strategic design principle that strengthens enterprise resilience.

FITTskills training: turning experience into strategy

Ismail’s natural leadership was strengthened through formal training. Completing the FITTskills program allowed him to reinforce years of hands-on experience with structured methodology and global best practices.

“FITTskills provided me with in-depth knowledge of international trade,” he says. “These courses have strengthened my ability to evaluate cross-border risk, regulatory exposure, and market-entry feasibility with greater strategic clarity.”

One course stood out in particular: Feasibility of International Trade.
“It gave me the most value,” he notes. “It helped me, and I use what I learned now in my daily work.”

With this training, he now approaches decisions with a sharper analytical lens, balancing operational realities with long-term strategic considerations.

Why he pursued the CITP designation

For Ismail, applying for the Certified International Trade Professional (CITP) designation was the natural next step.

“I chose to apply for the CITP designation because it’s a globally recognized certification that reflects expertise and commitment in international trade,” he says.

“Earning the CITP designation was a proud and rewarding milestone for me. It validated my expertise in international trade and logistics.”

Recognition matters in an industry built on trust. And for Ismail, the designation amplifies both confidence and credibility.

Looking ahead: using the CITP to unlock future opportunities

Ismail views the CITP designation as an enabler for expanded executive responsibility.

“It positions me to contribute at a more strategic level—supporting enterprise-wide supply chain optimization, cross-border growth initiatives, and long-term operational resilience.”

As global supply chains face increasing complexity, digitization, and geopolitical pressure, he remains focused on building systems that balance efficiency, risk management, and sustainable growth.

The post CITP Spotlight: Ismail Benmezdad — Director of Operations, Kerry Logistics Inc. appeared first on Trade Ready.

Grab a cup of something nice and warm and immerse yourself in our TradeReady reader favourites from 2021:

10 global trade trends we’ll be watching in 2021

We’re ending the year with a popular article from the beginning of the year on 10 global trade trends. In the article, we dove into our international business predictions for 2021—mainly focused on the incredible pivoting that businesses around the world would have to do in order to succeed throughout the pandemic. From virtual trade missions to supply chain as a service (SCaaS) and elastic logistics, there were so many innovations that we foresaw going into use. Read the article to see if we got our forecast right.

Drivers for a circular economy: Why businesses are shifting from linear models to circular economies

In celebration of Earth Day 2021, we discussed the drivers for circular economies—production models that focus on reusing, recycling, repairing, refurbishing, repurposing, or sharing existing materials and goods for as long as possible. Discover the drivers, which include price risks, supply risks, degradation of natural systems, and regulatory trends, and more.

10 Export costs you need to consider when projecting cash outflows

To help readers understand more about some of the common costs in international business and exporting, we compiled a list of 10 export costs that need to be considered when projecting cash outflows. Peruse the list and discover our export cost timeline as well.

What’s the difference between inbound and outbound logistics?

Among the important fundamentals that individuals involved in international business need to understand are inbound and outbound logistics. This article covers the details surrounding the two common exporting terms and gives insightful examples of how you use both when doing business around the world.

A quick guide to international trade organizations

If you conduct international business, there are several main organizations that you need to know about, from the World Trade Organization (WTO) to the International Chamber of Commerce. Discover some of the most important ones, what they do, and how they relate to international trade in this useful article.

The biggest international trade lessons from the Suez Canal crisis

One of the biggest topics discussed in 2021, the Suez Canal Crisis spawned many memes and critical dissections of the international trade ecosystem, especially in regard to shipping and critical shipping routes. Read this article and discover what happened during the crisis and the most important lessons trade professionals can take away from it.

How the Jobs and Growth Fund supports Canada’s economy through COVID-19

It’s no secret that 2021 was ripe with economic stress for individuals in Canada and across the world. Luckily, in Canada, there were several important initiatives that promoted jobs and growth throughout the year in response to the pandemic, important among them the Job and Growth Fund. Learn all about it in this insightful read.

3 common reasons why startups fail internationally (and how to avoid them)

Starting a business isn’t easy. For many, there are mistakes made along the way, but those who plan ahead learn about these mistakes so they can avoid them. In the article, get prepared for global business by reading about 3 common reasons why startups fail internationally.

10 effective techniques for managing requests for discounts in international trade

In our economically turbulent times, requests for discounts are becoming common practice between trade professionals. Managing them, however, requires tact, strategy, and finesse. Learn some of the best techniques from CITP Rahim Mohtaram.

Demystifying market entry strategy: The three key parts of an effective ASEAN entry strategy

Discover how to create an effective ASEAN entry strategy in this article by CITP Peter Gray. With over 20 years of Asia Pacific experience, he discusses everything from SLEPT factors to sales and marketing strategy in this in-depth look at overseas expansion for today’s global businesses.

The post Best of 2021: Our top 10 most popular international business articles from the past year appeared first on Trade Ready.

Global value chains have a critical role in the world economy and in our daily lives, representing more than two-thirds of global trade, providing essential products and services, and supporting jobs across a diversity of economic sectors ranging from agricultural and natural resources to traditional and high-tech manufacturing and a vast and diverse list of services.

While the ongoing discussions on GVCs have produced worthwhile conversations by creating more awareness and a better understanding of their relevance, we cannot deny that these discussions are not enough to remedy future disruptions that might happen as a consequence of new contingencies. Nor can they support efforts to build more resilient value chains after COVID-19.

The ongoing discussions that have occurred over the last two years are promising, but tangible actions are missing. So, what can we do to guarantee the proper functioning of global value chains and to build the desired resilience? What should we do to avoid the shortage of essential products and services for the benefit of all? What has to be done to pave the way for SME success in GVCs? How can we make GVCs more inclusive to underrepresented groups such as businesses led by women, youth, and indigenous people? How do we support the shift that GVCs are experiencing from operating under traditional business models to innovative and digital ones? Even though there are no simple answers to these complex questions, there are a few actions that can bring us closer to the goal of achieving resilient and sustainable supply chains.

Learn more about Global Value Chain fundamentals for business in the FITTskills Online Course: Global Value Chain.

Below are three proposals that could push us from fruitful discussions on supply chains toward meaningful actions:

1) Private and public sectors should work together 

To minimize or avoid future disruptions, input and coordinated efforts from all the participants and stakeholders of GVCs are imperative. Two key players in this process are the members from private and public sectors who have been very active in GVC discussions since the pandemic arose. Both have shown a strong commitment and determination to support effective and efficient vaccine production and distribution worldwide and have guaranteed access to essentials for all—which are a precondition for inclusive and strong global supply chains.

The actions that could be implemented as a result of the synergies built between private and public sectors are certainly diverse, but one that could be particularly useful is working together to predict future shocks and prepare for them.

International organizations, such as the OECD, have suggested that governments and companies should apply stress tests at the GVC level for ensuring that essentials can be supplied when disruptive events happen.

Both companies and governments may be interested in these findings via the implementation of these stress tests, as they would highlight the blockages, gaps, and fragile links in the GVCs when facing crisis scenarios. Testing the systems would allow greater visibility of any concerns across the entire supply chain. 

In addition, trade experts, policymakers, scholars, business people, and leaders from private and public sectors need to work collectively to design formal mechanisms for sharing information among them. This will create and produce available dedicated platforms where participants and stakeholders can find relevant GVC data to revise statistics and define new metrics that respond better to GVC dynamics and the decision-making process.

Private and public sector members must move quickly and take the issues of GVCs seriously. They need to learn what has worked well and what can be improved while working collaboratively to avoid repeating the same mistakes. Research from the McKinsey Global Institute (MGI) found that disruptions are occurring more frequently than we think and that these have a costly price for companies. The MGI study also points out that manufacturing companies can expect to see their production disrupted for two weeks every two years on average and that, over the course of a decade, these companies can expect to lose nearly forty percent of their earnings in one year due to these interruptions.

The call for action for private and public sector members to collaborate is real and necessary. It will put all their expertise and knowledge on the ground, starting with the implementation of stress tests, followed by the use of the results to define risk management strategies and provide financial and technical assistance for GVCs participants. GVCs may continue being powerful engines for growth and development, but they require coordination and collective actions between the private and public sectors.

2) Promote free and open markets for GVC resilience

It was reasonable that national governments closed their borders during the first stage of the Covid-19 pandemic to protect their people. We were facing a health emergency that we did not know how to address and contain, and so, a logical solution was to restrict the movement of people and goods across borders. However, the closure of borders alongside government measures taken to tackle the COVID-19 pandemic have seriously affected GVC operations. Unsurprisingly, they’ve had an overall negative impact on trade and investments worldwide, with The Global Trade Alert Report finding that, from the policy interventions made, 170 countries experienced their merchandise exports facing their worst market-access scenario abroad in 2020, whereas only 26 economies actually saw improved market access. The same report added that policy measures implemented around the globe represented 17,252 negative spillover effects.

It must be highlighted that global trade was not the cause of the COVID-19 pandemic, but the interconnected commercial networks among nations meant that policy responses of one government had mostly adverse effects on their trading partners. Every nation has the right to design its own trade policy according to its own economic reality, but closing borders and isolation are not the solutions.

Public policies that aim to unwind trade integration and re-shore production are harmful strategies that will have a negative impact on domestic companies. They increase fragility to local disruptions with no option to implement diversification strategies through international markets.

GVC resilience should not be seen as simply a domestic matter, but as regional and international matters that need to be addressed in collaboration with like-minded countries.

Thus, it is indispensable to promote free, open, and inclusive markets as a basic element to create resilience and sustainability in supply chains. Lowering and eliminating barriers to trade can help companies diversify markets by maximizing sourcing opportunities, easing access to new markets, and reducing risk exposure. Likewise, revising rules on Foreign Direct Investment (FDI) should be considered as a fundamental element for strengthening GVC performance.

A particular consideration that governments must assess is the strategic role that multinational enterprises (MNEs) play in global supply chains. MNEs are key drivers in GVCs, investing in trading inputs and outputs, investing in productive assets wherever needed, and integrating and working with SMEs across supply chains. The actions to open markets are diverse, from standardizing and digitizing customs processes, reducing the cost of cross-border trade, and working on the permanent removal of import tariffs and export restrictions on essential products and services to the establishment of predictable rules on investments and the elimination of barriers to the movement of businesspeople and essential workers.

3) Boost cooperation at the regional and multilateral level

As countries continue to navigate paths towards recovering from the effects of the global pandemic, it must be recognized that cooperation among governments and companies is instrumental in improving resilience to shocks in supply chains for three main reasons:

First, it can support diversification efforts by articulating regulations across different nations that mean access to new markets, which, otherwise, local companies would not have access to.

Second, collaboration among nations can help in anticipating and managing risks in a better way by sharing business intelligence data, research, and analyses on potential shocks of critical inputs and other elements that could disrupt supply chains—namely weather, transportation, logistics, ports, airports, telecommunications, labour market changes, and industry trends.

Third, cooperation can help share real-time data in global supply chains so governments and companies can react and make adjustments if needed, identifying bottlenecks, gaps, and potential threats and opportunities further down GVCs.

Resilience building will give better results if actions are implemented and harmonized across countries. Governments need to utilize collective forums to turn ideas into concrete policies, rules, and/or programs. They also need to take advantage of their participation and memberships in regional and multilateral organizations and in trade agreements. Cooperation must be promoted on an ongoing basis under fundamental principles such as prosperity for all, non-discrimination, inclusiveness, transparency, equity, predictability, and sustainability.

A particular action that nations may want to consider is reviewing and updating the provisions of their trade agreements, ensuring these are not running behind business challenges and can respond to the new realities that GVCs face. They must also be tailored to confront crises. To carry out this process, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which has brought together eleven Asia-Pacific economies, could be used as a benchmark.

Moreover, an important action that should be prioritized at the multilateral level is concluding at least one of the ongoing SME, e-commerce, services, investment, or agriculture negotiations that are currently happening in the WTO. Reaching an agreement in any of these negotiations will contribute to GVC resilience.

For all the above reasons, the invitation to translate fruitful discussions into tangible actions at the local, regional and multilateral levels will guarantee that key products and services can move freely around the world. It will also ensure that global value chains operate resiliently during periods of crisis and will continue to positively drive the global economy for the benefit of all.

Learn how to adapt and sell products and services in international markets with the FITTskills Online Course: Products & Services for a Global Market.

The post Global value chains: From fruitful discussions to meaningful actions appeared first on Trade Ready.

Sustainability is one core component of an effective supply chain. Fortunately, modern tools, devices, and software, such as the Internet of Things (IoT) and blockchain, are streamlining how we balance these systems. With highly transparent and secure networks, we stand to improve the overall sustainability of supply chains for cleaner and more lucrative results.

The IoT and blockchain support sustainable supply chains in a variety of ways. By exploring these sustainable functions and how you might integrate them into your business processes, you can build the supply chain stability you’re looking for in an uncertain economy.

IoT provides data transparency that supports decision-making

The Internet of Things is the term given to devices that collect data and then communicate that data over the internet. IoT devices range from industrial sensors to wearable devices, all with various implications when it comes to the functionality of a supply chain. These implications are far-reaching across transportation and supply chains and would not be possible without the world of big data that the IoT taps into and makes useful.

IoT is instrumental, for instance, in developing eco-friendly, efficient fulfillment center strategies. That’s because these processes rely on the kind of big data transparency that only the IoT can offer on a scale that reverberates through the entire supply chain. The IoT enables accurate tracking methods, consistent protocols, and data analysis that all stand to change supply chain decision-making for the better.

Many companies have already experienced the sustainable benefits that come through industrial IoT. Shipping line giant Maersk, for example, built an infrastructure of sensors and mobile and satellite communication technology with the help of Ericsson to monitor its fleet of 300,000 refrigerated produce containers. The increase in transparency of container conditions led to a decrease in necessary inspections. This, Maersk says, means reduced resource use and even CO2 emissions.

As we have seen, the IoT supports supply chain flexibility in the following ways:

• By improving supply chain transparency
• By improving system efficiency
• By reducing resource consumption

As you explore the use of connected devices in your supply chain, consider these benefits. But also understand that with more connected devices, you present your company with more digital security risks.

Want to learn more about managing your company’s supply chain? Take the FITTskills Global Value Chain course here.

Blockchain protects data from interference

Connectivity offers us much in terms of actionable insight and effective communication. And yet, digital threats are a huge concern for supply chain companies. In one infamous example, Target became the subject of a data breach through its vendor and had to inform 110 million customers of their potentially stolen credit card data.

It is precisely attacks like these that make it necessary for supply chain companies to protect themselves against all the threats of the digital world. Malware opens up the gates to your data. From there, you stand to suffer incalculable losses from the damage to your reputation alone. Blockchain systems, however, are changing the playing field with enhanced security measures for protecting data.

Blockchains are decentralized data systems designed for cryptocurrencies like Bitcoin. They store data in nodes linked by cryptographic hashes. Now, blockchains are being integrated by companies like FedEx to improve the traceability of their packages because blockchain can store a (mostly) tamper-proof record of inventory locations and conditions.

With greater accuracy in a record, any data breach can be caught and prevented more efficiently. Simultaneously, these improvements offer much greater sustainability potential through their ability to pinpoint spoiled products or remove recalls with greater precision. Supply chain companies that can track inventory can more effectively reduce waste.

In this sense, blockchain and the IoT fulfill similar functions and offer similar benefits across a supply chain. In fact, utilizing these technologies in tandem can be a great way to maximize supply chain potential.

IoT and Blockchain streamline security and sustainability

The IoT offers unprecedented insight into business functions and supply chain conditions. But traditional networks for hosting this data present all kinds of digital threats. That’s where blockchain can come in to help improve the security of an IoT network and provide new business potential.

Blockchain is unique in its use of servers in various locations to host, protect, and backup data. To infiltrate such a system typically requires absurd amounts of computing power. By leveraging the power of the IoT to assemble supply chain insights, then protecting those insights on a blockchain, you can build greater accountability and security for your supply chain. From here, sustainability becomes easy.

That’s because sustainability means longevity without damage. Getting there requires insight only accurate data records can provide. Apply the IoT and blockchain as you assemble the information architecture needed to streamline a supply chain, and watch cost and resource-saving opportunities open up across your ventures.

The post How the IoT and blockchain are supporting sustainable supply chains appeared first on Trade Ready.

There are many important details that need to be covered when dealing with cargo insurance—defined as the transfer of risk to a third party, the insurance company, who takes on the risk for a fee called an insurance premium—and every stakeholder involved in the international trade transaction has insurance.

Want to learn more about how to manage your company’s supply chain and logistics? Check out the FITTskills Global Value Chain online course!

For those who are aiming to obtain insurance, they must be aware of the process, which requires the following agreements by the insured and the insurer:

Setting the insurable value

The shipper can insure the cargo for the invoice value of the goods, plus freight and other charges. Most insurers offer insurance at 110 percent of the CIF value. The additional 10 percent is included as compensation for loss of profit. Generally, the beneficiary of the insurance policy determines which risks should be covered by insurance and negotiates to include that degree of coverage in the sales contract. It is rare to obtain insurance for more than 110 percent of the CIF value of the goods. The purpose of insurance is to compensate the insured for loss or damage, not to generate profit to the insured for the accident or event that led to the loss or damage.

Determining who takes out the policy

Usually, the terms of the sales agreement indicate which of the parties must obtain insurance. The Incoterms® 2020 rules for CIF or CIP require the seller to obtain cargo insurance to protect the buyer against the risk of loss. The rules require a policy that will allow the buyer to claim directly from the insurer, and requires the seller to provide the buyer with a copy of the insurance policy or other evidence of insurance coverage.

The remaining Incoterms®2020 rules leave the purchase of marine cargo insurance to the discretion of the buyer. Most insurance brokers are familiar with the requirements applicable to each trade term. The insurance ramifications of the Incoterms® rules being considered should be investigated before entering into a sales contract. Insurance can be quite costly, and in some cases it is unavailable.

Do you need a better understanding of Incoterms^® 2020 definitions/rules and obligations? The Incoterms^® 2020 online course, presented by FITT and the Canadian Chamber of Commerce (CCC), is designed to help international trade professionals gain an understanding of the latest edition of the Incoterms^® rules (which came into effect on January 1, 2020).

Finalizing the policy

Once all details of the policy are determined and the insurance premium paid, an insurance policy is issued to the insured. The insurance policy is the contract between the insurer (i.e. the insurance company) and the insured (the shipper on the B/L or waybill) in which the insurer promises to pay the beneficiary (the person named in the insurance policy) for damage to, or loss of, the insured goods due to particular risks.

Legal Considerations

In terms of risk, it is also important to understand the protections that may be provided to international trading organizations based on the conventions, treaties and agreements to which countries are signatories. It is important to understand the geopolitical aspects of international trade in order to determine how international conventions, treaties and agreement may be beneficial.

The answers to the following questions will assist in this assessment:

• What is being shipped?
• What is the shipment’s final destination?
• Who owns the land, air and sea en-route to the final destination?
• Where is it stopping along the way to the final destination?
• Are there passage rights, bans, boycotts, wars or trade restrictions on specific goods that could hinder the transportation of the goods being shipped?
• What is the process if an accident or natural disaster destroys some or all of the goods?
• What is the percentage of coverage, and where do the obligations of different stakeholders begin and end?
• What is the notice period to file a claim or initiate liability litigation? How should the notice be given?

The post Necessary agreements and legal considerations for cargo insurance in international trade appeared first on Trade Ready.

That’s why, last week, Startup Canada hosted a Twitter Chat with FITT and an all-CITP®|FIBP® (Certified International Trade Professional) panel of business experts. These seasoned professionals gave practical advice on “How to weather-proof your business.” With varied markets, supply chain disruptions and so many other hurdles in the international business landscape right now, they offered up international market entry strategies, risk-mitigation techniques, and personal stories on how to best navigate these waters.

The Twitter Chat featured:

Daniel Lewis, Author, and International Speaker, CITP
Lora Rigutto, Loyalty and Engagement Manager, FITT, CITP
Craig Atkinson, Founder and Director, Lexmerca International Trade, CITP

Question 1: Staying agile and adaptable

The chat started off with this question: “Business is always changing, but some changes, we never see coming. How do you stay agile and adaptable?”

CITP Lora Rigutto had sage advice about upskilling and updating your knowledge in different areas of business.

While CITP Daniel Lewis answered with the following:

“To stay agile and adaptable I suggest diversifying and developing your skills. Become more knowledgeable about your products, industry, or new industries to gain a competitive edge. Consider becoming an educator, expert, or content creator in your field.”

While I was building my tea business over the past 10 years, I also found opportunities to put myself out there as a Public Speaker and Brand Strategist. When the pandemic hit and rattled my supply chain, I switched on my virtual keynotes and brand strategist superpowers. As a result, I have been able to weather the storm and still generate good business. #StrategicPivot—Daniel Lewis, Author, and International Speaker, CITP

Meanwhile, CITP Craig Atkinson talked about remaining on top of your sector specifics: “I think the best way to stay agile and adaptable is to stay abreast of what is going on in your sector and the potential impact of disruption. Adaptability depends on having a business structure that is flexible.

The second question prompted some excellent advice as well:

Question 2: Planning for global growth

Daniel Lewis chimed in first, suggesting that businesses need to start by asking the questions “why?”:

” I always suggest starting with ‘WHY?’ Whether starting or expanding your business internationally, asking WHY first can provide you with all the reasons (or lack thereof) for a specific course of action. WHY are you expanding?  WHY now?  WHY this market?”

“At the same time, I decided to polish my professional image and sharpen my international business knowledge by becoming a #CITP. With these tools on my belt as a foundation, I was ready to rock n roll!”

“If your WHY is compelling enough, then you can get to the HOW? Approached my global growth plans by first going through international business training where I developed an export plan to better materialize my goals and ambitions.”

Meanwhile, Lora Rigutto gave this nugget of wisdom:

If you fail to plan, you plan to fail. You need to determine how to move goods or deliver services to a target market, overcome regulatory or cultural hurdles, and use market entry and international sales and marketing strategy with clear and measurable sales and marketing objectives.—Lora Rigutto, Loyalty and Engagement Manager, FITT, CITP

Question 3: Weather-proofing and risk mitigation

Question three, “How do you weather-proof your business your own business as you grow globally?” got down to the details and surfaced some great insights, including notes on addressing knowledge gaps from Lora Rigutto.

Daniel Lewis, on the other hand, talked about creating multiple contingency plans with an “If this” guide:

Question 4: Risk and business

Question four addressed an important reality about business: that it always comes with risk.

There were multiple answers for this one from panelists and participants alike:

Question 5: How to expand

Question five dove into global expansion, a quintessential topic for SMEs, and it garnered advice that ranged from influencer adoption strategies to joining trade shows and trade missions.

Question 6: When to expand

Knowing exactly when you’re ready to expand your business is critical for success, and that’s what question six tackled:

Questions 7 and 8: Economic risk and opportunity

While questions seven and eight talked about economic risk and the opportunities they present. Panelists and participants recounted their experiences during the pandemic and how they used these to create opportunities for themselves:

Final Thoughts and Questions

And with that, the official questions were over and the panelists and participants were given an open mic to talk about topics, such as their CITP experiences:

And the single most important thing they did to weather-proof their business over the past year:

A fantastic gathering of great business minds, the Startup Chat gave emerging entrepreneurs and SMEs a lot to think about, in addition to access to Startup Canada and Startup Global’s plethora of resources, contests, and funding opportunities too.

Learn more about Startup Canada’s Startup Global Portal here: http://ow.ly/OBns50FXewH

Don’t forget, once you register, you can access several FITT presentations, workshops, videos, and even a discount on FITTskills training.

The post How to weather-proof your business: CITPs weigh-in with Startup Canada appeared first on Trade Ready.

Updated Nov 8, 2024

Prince Khan’s career journey in international business began in 2012, when he was a fresh college graduate and worked for a new small business as a part of their business expansion team. Playing a central role in the company, his responsibilities were to oversee the custom-made products going out to customers in both Canada and the U.S., and manage service requests in both countries. As their lead on operations and finances, he spent three fruitful years helping the company grow. This was a great learning opportunity for the then 21-year-old Prince, who had just completed college and was looking to enter the workforce. The tenure gave him valuable insights on supply chain management and the issues that can occur if products are delayed, damaged, or held at customs because of missing paperwork.

His next role at the Brampton Entrepreneur Centre in 2015 was mainly advisory; giving him the opportunity to assist small businesses in the local community. His responsibilities revolved around helping clients understand import/export regulations and how to get products in and out of the country. With the experience he had from his previous employer, he was able to effectively help his clients learn about international markets from a regulation standpoint.

In March 2020, Prince joined the Halton Region and got involved in the deeper details of international trade while working at the Global Business Centre.

“I fell in love with the idea of wanting to learn beyond the basics of regulations and wanted to help the Halton Region establish a global presence as a place to invest in Canada. I also wanted to provide my clients with advice on how to effectively conduct trade abroad—beyond just the regulations.”

Returning to the Brampton Entrepreneur Centre as Supervisor in July 2024, Prince continues his work helping entrepreneurs succeed both domestically and in global markets.

Helping a client get access to a vast expansion opportunity

One of the most fulfilling stories from his career was getting his client connected to the director at CCBC (Canada-China Chamber of Commerce). This was of great significance for her because she had a factory in Shenzhen and was able to tap into their connections to grow her business in China via companies that offer a QVC business model.

“By going forward with this expansion strategy, she can now access over 70 million customers in the Greater Bay Area alone. She was also able to go on a trade mission for women in China, even when the deadline closed, so she could meet with potential businesses that might be of value to her. With one simple connection, she gained access to a huge opportunity.”

An impressive array of professional achievements:

• Brampton Mastermind: Prince worked with a group of local entrepreneurs to start a monthly event that attracted crowds of up to 130 people. They roped in successful entrepreneurs to speak about their entrepreneurial journey. This grassroots initiative was a resounding success that received many positive responses from the Brampton community.
• Entrepreneurs Connect: It was while working at the Brampton Entrepreneur Centre in 2015 that Prince has launched this series. It began as an exclusive summer offering where they had local speakers discuss various business topics. Although it started with upwards of 50 people attending, it created quite a buzz in the small business community. In 2019, they went on to obtain sponsorship for the event from established partners, which fetched them a revenue of 25K+. The series soon progressed from being only a summer event to having an occurrence every season, with different sponsors for each.
• Distinguished Alumni Award: A noteworthy feather in his cap was receiving an award from the University of Guelph-Humber in 2017 as a Distinguished Alumni. This was in acknowledgment of his efforts in volunteering over 100 hours to help students place at case competitions. All the students he trained placed somewhere in the top 3 at various events. This was a huge recognition for him.

Learning is a journey that has no end

Prince’s advice to individuals in this profession is to chart a path and set milestones on how you would like to progress in your career.

“Look at how you can improve your knowledge and step outside your comfort zone by taking additional courses or added job responsibilities. Without this, you may feel you haven’t accomplished enough, and that might  hinder your professional growth.”

Motivated by a desire to learn about international trade

In 2012, while Prince was still in the earliest stages of his small business work experience, he decided to pursue a deeper understanding of the various aspects of international trade. He signed up for FITTskills courses and gained important insights on how to prepare when exporting abroad.

“My favourite course was Global Value Chain. With my deep interest in logistics and operations, this course was exactly what I was looking for. It had everything I wanted to know and more. Some of my favourite areas were learning about stakeholders, international trade documents, distribution channels, Incoterms®, and global sourcing. I would highly recommend this course to everyone in the supply chain industry.”

Within five months, he had completed all six courses required to earn the FITT Diploma in International Trade, and this set him on course to apply for the elite CITP®|FIBP® designation, which he earned in February 2021. He believes that leveraging the CITP designation will help him exponentially grow his career and realize his dream of achieving international recognition for the Halton Region Global Business Centre.

For Prince, the word “excited” would be an understatement if he were to describe how he feels about having earned the industry-recognized designation. He has already begun to use his knowledge and credibility to connect with industry professionals, chambers of commerce, trade commissioners, and more.

Prince is now sharing his knowledge as an Adjunct Professor at the University of Guelph-Humber and Algonquin/CDI College, where he teaches courses on emerging technologies, market research, and entrepreneurship. By passing on what he’s learned through his experience and education he aims to build a stronger and more resilient community in Brampton through a bottom-up innovation approach.

“My goal is to create an ecosystem of international trade opportunities for our clients at the Halton Region. By connecting with the right people, I aim to grow international opportunities for those thinking about exporting to new markets.”

It’s just a matter of time before Prince achieves all his cherished goals and dreams. With his energy, talent, and motivation, we’re sure that no horizon is unattainable for him.

The post CITP Spotlight: Prince Khan, Supervisor, Brampton Entrepreneur Centre + Co-working space appeared first on Trade Ready.

On Monday, March 29th, ships stuck behind the colossal Ever Given vessel in the Suez Canal heard the echo of blaring boat horns and triumphant chanting. These were the sounds of celebration and hope, for the Ever Given, a 400m-long, 200,000-tonne (or 1,312-foot, 220,000 ton) ship carrying 18,300 containers, finally showed signs of movement. The ship had been wedged between the canal shores since Tuesday, March 23rd, causing a delay in an estimated $9.6 billion USD of trade goods per day, and an estimated $95 million in toll revenue for the canal, according to data firm Refinitiv—all in just under one week.

Image by kees torn – EVER GIVEN, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=89201715

A tenacious and exhausted team had been working to unblock the canal and managed to free the ship’s stern on Sunday. The next morning, they liberated its mammoth bow deeply embedded into the canal’s eastern bank. This set in motion the final stages for the ship’s full re-floatation and, later, the canal’s reopening at 6 pm local time.

All the manpower in the area wasn’t enough to complete the task, however. Truly, the strong rising and falling full-moon tides played a significant role in the operation—giving crews and other personnel a small window of time in which to take advantage of the gravitational gift, along with the team of tugboats that had presumably pulled and pushed one of the heaviest loads they’ve ever moved, with the Ever Given being one of the world’s largest and longest container ships.

At first, what seemed to be a comical social media meme quickly turned to panic as the crisis revealed a much-overlooked reality within the international trade community: Most businesses and consumers take the world’s shipping routes for granted, vastly underestimating their fragility and vulnerability to accidents and delays—weaknesses that can breakdown supply chains in the blink of an eye.

With the Ever Given now freed and traffic in the canal slowly moving again, it’s a good time to reflect on the lessons learned from the 6-day ordeal, giving international trade and business professionals much to think about in the aftermath. Here are some of the most prominent international trade lessons from the Suez Canal obstruction:

1. Contingency and risk mitigation planning make crises manageable

It’s cliché, but always expect the unexpected. The most prudent businesses perform thorough commercial risk assessments that cover all areas prone to hazard, allowing them to identify weaknesses in their business strategy (such as international shipping risks).

This allows them to create contingency plans that involve having the proper financial resources, inventory, supplies and supply-chain alternatives in times of crisis or delay.

Many risk mitigation and contingency strategies include proactive contract negotiations at the start of trading relationships that clearly define accountability for unforeseen shipping delays, as seen in the image below:

FITTskills Lite: Analyzing and Mitigating Commercial Risk, copyright © 2017,2019,2020 FITT

Interested in this topic? Get our FREE FITTskills Lite Download here:

2. Know your Incoterms® and who is responsible for shipping delays in your contracts and negotiations.

Incoterms® are integral for creating bullet-proof contracts that clearly define who pays for shipping charges and when. Businesses engaging in international trade use The International Chamber of Commerce Incoterms^® rules in contracts to clearly communicate the obligations, costs and risks associated with the transportation and delivery of goods, providing clarity for sellers and buyers.

Businesses who know their Incoterms® well, carefully use them to ensure there are no areas of risk or uncertainty between the seller and buyer in the contract—and specifically, with shipping, no questionability as to whom is responsible for shipments and costs in the various stages of transport. They are essential for avoiding costly disputes between both parties.

Incoterms® also make it easier for the buyer and sellers to

• outline their individual obligations in the trade transaction
• determine when risk moves from the seller to the buyer under each specific rule
• define the buyer and seller costs and responsibilities.

Last year, Incoterms 2020® was released with updates and changes from their previous version. Those seeking to create advantageous contracts should make sure their knowledge or credentials are up-to-date, especially in light of recent events.

3. Option just-in-case supply chains

In recent years, “just-in-time” supply chains—supply chains that transport items to factories on an as-needed basis for manufacturing—have been popular. But with the glaring effects of the Suez Canal playing out in real-time, experts are predicting that some companies will move toward “just-in-case” supply chains that focus less on predicting the right amount of demand and goods in the moment, and more on having goods in stock and ready at all times—just in case delays occur.

“We are moving towards a just-in-case supply chain, not just-in-time,” noted Søren Skou, CEO of shipping firm Moller-Maersk, in an interview with The Financial Times on Monday, adding “It’s great when it [just-in-time supply chains] works, but when it doesn’t you lose sales. There’s no just-in-time cost savings that can outweigh the negative of losing sales.”

4. Think about more than one supplier

It’s not uncommon for international businesses to have more than one supplier because of scenarios like the Suez Canal incident. Even before the blockage, many businesses around the world were already in the midst of diversifying their supply chains and suppliers because of COVID-19-related shipping delays and restrictions.

The Suez Canal obstruction only served to amplify this need even more, serving as a sober reminder of the importance of planning for anything and everything that can go wrong when it comes to international shipping and international trade.

In a Forbes article, Mark Dohnalek, President and CEO of Pivot International, a global manufacturing, engineering, technology, product development company, also suggested another way for companies to avoid unpleasant surprises: “… have multiple sourcing options in place, as we learned during the pandemic. Another element of this recommendation would be to do business with one preferred vendor that has multiple operations across many regions of the world. This will avoid the massive impact a single location event would have on their business. This is by far the key toward mitigating exposure to these types of events in the future.”

*Main image contains modified Copernicus Sentinel data [2021], processed by Pierre Markuse – Container Ship ‘Ever Given’ stuck in the Suez Canal, Egypt – March 24th, 2021, CC BY 2.0. https://commons.wikimedia.org/w/index.php?curid=102400564

The post The biggest international trade lessons from the Suez Canal obstruction appeared first on Trade Ready.

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The post Best of 2020: Our top 10 most popular international business articles from the past year appeared first on Trade Ready.

COVID-19 is continuing to influence international trade. The supply chains of small and medium-sized enterprises (SMEs) are facing all kinds of disruption due to the current fast-moving and ever-changing situation. The reality is that many SMEs are struggling to continue their businesses, an element of which has been conflicts or disputes with their suppliers.

The Incoterms® rules are an internationally recognized standard and are used worldwide in international and domestic contracts for the sale of goods. Incoterms® help businesses operating internationally avoid costly misunderstandings by defining the costs, risk and obligations in each international trade transaction, protecting both parties.

Incoterms are one element of many in building strong, clear contracts that can protect both SMEs and their vendors, ensuring proper communication, expectations, and clear procedures in the case of disruptions. For SMEs especially, this is critical to their success, and even survival in challenging times.

To help get some answers on how SMEs can protect their supply chains and their businesses during this time of disruption we brought together experts in supply chain management, contracts, customs and the Incoterms® 2020 rules to answer key questions on how SMEs can protect themselves and have confidence in their international transactions.

The conversation was led by moderator Emiliano Introcaso, CITP – Export Advisor, Export Development Canada, EDC

Emiliano has close to two decades of experience working with manufacturers and exporters looking to increase their global growth by providing them with support and guidance in all things export.

His work focuses on navigating companies through the complexities of global supply chains, but also in the small details that can make or break an international trade transaction. Emiliano is an Export Advisor at Export Development Canada (EDC), a Certified International Trade Professional (CITP) with the Forum For International Trade Training (FITT) and an International Chamber of Commerce (ICC) Registered Trainer on Incoterms® 2020.

Incoterms rules are key to mitigating risk with your suppliers

Floyd Simpkins, CITP – Founder Simcor Solutions Inc., Incoterms^® 2020 Trainer

Floyd Simpkins has over 35 years of international business experience in both the private and public sectors. He’s worked as a senior trade consultant with the government of Ontario, led multiple private sector companies to success in their international ventures as Founder of Simcor Solutions and is a certified Incoterms^® 2020 trainer.

Emiliano: How can Incoterms rules be used to ensure contracts have covered all the different key areas of risk and provided proper instruction for any disruptive scenario of the deliveries?

It’s a very important question in today’s environment, and what it comes down to depends on the risk tolerance of both parties. How much risk is a seller willing to take given its size and capabilities, and correspondingly, how much risk is the buyer willing to assume, and how will this affect the prospective sale?

Using Incoterms in a COVID environment requires first and foremost, a whole lot of upfront discussion between sellers and buyers about that risk tolerance before the contract is established, and then the acceptable Incoterm can be applied to the shipment, because if we don’t have that, we’re not going to have any agreement on the contract.

Deciding which Incoterm to use is also more important now for sellers and buyers to access certain practical capabilities of their carriage partners, because we’re moving goods from seller to buyer.

For example: protocols that our providers have in place to manage COVID risk on delivery. Does a carrier now use some form of digital confirmation that delivery has taken place like a “no-touch” solution? An example of a possible solution to this matter is  what Conestoga College is doing – they are building a mobile software application that will help supply chain workers maintain physical distancing, and still obtain the necessary signatures to complete their delivery documentation.

For delivery drivers, typically when they arrive, they have to go into a building and get a physical signature, but this application will use geo-fencing to get a reading on where the trucks are, how they can be monitored to travel within that range to their destination, and then be routed to the correct door to deliver, and then stay in their truck and complete their documentation digitally. Those kinds of innovations might help us with a critical element, which is ensuring delivery has taken place.

Emiliano: What are some of the specific Incoterms that are particularly important for contracts in this type of environment?

If we look at it from the seller’s perspective, any term where the seller takes more responsibility for getting the shipment closer to the customer before officially transferring risks is particularly important. We can also think of Incoterms as a marketing and sales tool to keep our customers satisfied that delivery is going to be in their hands where, and when they want them. Using Incoterms to clarify risk where risk actually transfers in the contracts of carriage is the most critical at this time, especially where many different carriers are being used to deliver contracted product to buyers.

So we want to use the terms that get the product closer to the customer:

• CPT “Carried To Pay”
• CIP “Carriage and Insurance Paid”
• DAP “Delivery At Place”
• DPU “Delivered At Place Unloaded”
• DDP “Delivery Paid”

Those are terms that are particularly important in this environment to make sure that, above all, we’ve got the delivery point clearly identified because we’re trying to get it in the buyer’s hand safely and securely, and ensure that delivery is in the right place at the right time.

Learn more about the latest edition of Incoterms® and learn how to properly incorporate them into sales contracts and invoices

Emiliano: Since Incoterms® 2020 was just updated in January, what are some of the changes that importers and exporters should know about? Are there any specific resources that you would recommend?

There are a few technical terms that have changed. And one of the big ones was FCA where the buyer selects the means of transport. This is one to look at because FCA was clarified to make it very clear that when the goods are handed over to the buyer’s means of transport, that’s when delivery takes place. There are a lot of resources out there, both public and private.

I would suggest that FITT’s Incoterms training, now delivered online, is as good as any resource out there because it’s based directly on the partnership that they have with the International Chamber of Commerce – ICC, who defines the Incoterms in trading guides and materials.

Customs issues can quickly eat up profits and damage your reputation with customers. Avoid them by doing due diligence and working with experts.

Audrey Ross, CITP – Logistics & Customs Specialist, Orchard Custom Beauty

Audrey is the in-house expert on global shipping, supply chain operations, customs and international tax for Orchard Custom Beauty, a cosmetics and private labeling global project management specialist where she also manages the logistics coordinator position.

Emiliano: What are some of the problems that people are dealing with at the border with international shipments right now? And what are some of the tips you could provide to businesses on how to prevent those common issues?

The current situation specifically around COVID is just an increased scrutiny, which a lot of businesses weren’t prepared for. Depending on your product line, if your business had made pivots into making hand sanitizer or making fabric face masks, for example, there will be increased scrutiny because these are highly regulated health and safety products.

For most businesses it was a great idea to pivot, but at the same time when there were some regulatory concerns that they may not have been aware of.

So for those kind of the hot items, anything around PPE fabric, face masks, even hand sanitizer pivots in general, the most common custom problems are around HS codes.

Make sure that your businesses is using the tariff tools, there’s a number of resources on TariffFinder.ca. The World Customs Organization can also help you out there. If you’re going into different countries, the World Trade Organization has lists as well. In terms of customs, HS codes are really the most important kind of descriptor. The next problem you might encounter is that your descriptions are too vague. Along with your HS code, customs authorities have to see what the description of your product is because they want to ensure that matches. So if you say that it’s say a bag, you need to specify what kind of bag, because as it turns out in chapter 42, there’s something like 50 different types of bags. Is it made of leather? Is it made a PVC? Is it a handbag? Those kinds of key descriptor words on your commercial invoice and even on your bill of lading are very important to helping match that HS code.

When you’re dealing with free trade agreements and cross border trade, there’s country of origin versus country of transit. I know here in house there can be some confusion from my teammates around this. If you see that a product or component is coming from this country and it’s going to the U.S., where was it made? Was it actually made in Canada? Was it made somewhere else? Because that’s going to have a big impact on the usability of those free trade agreements.

Another thing I’ve noticed is that the parties who were involved in the transaction are unclear. Now your business might be a bit more straight forward and you are a seller and you have a buyer. But for some of us, it’s much more complicated and we have a manufacturing partner. You might have an agent involved and you yourself are the overseeing party, which is sort of what Orchard does. We call these contracts triangulation. And then we have a buyer and we also have the party we are delivering to, and that might be five different addresses. How do you fill out that paperwork?

It’s important to be really clear on who’s doing what and show in your Incoterms who’s responsible at each point.

If you are doing importing, depending on what your Incoterm is and what you’ve set up, if you are the importer of record, you should be aware that in some countries you can’t have a foreign importer. For example if you’re making Canadian exports and you’re shipping down to Mexico, Mexico, doesn’t have a non-resident importer program. You need to rely on the person who’s buying the goods or another party to be able to import on your behalf because they have to be Mexican resident. And if you are the importer of record, the key from a customs department’s perspective is who’s making the payment of these duties and taxes? CBSA here in Canada wants to know who they’re getting the money from and that they’re going to get it.

Supply chain management has never been more complicated for SMEs. In today’s environment, it’s all about risk management.

Bruno Morin, CITP – Global Market Manager, Axens

Bruno has been working in international trade for 25 years. During that tenure he has been to more than 60 countries negotiating contracts. He has experience and expertise in all aspects of international trade, including shipping, customs, and finance. He also served on the FITT Board of Directors.

Emiliano: What are some of the main issues that suppliers and shippers are facing in terms of delivering the products and how can the SMEs work with their vendors to prevent them?

As an SME or a buyer, it’s perfectly normal to be nervous these days. So many things can go wrong.

And it’s not always the fault of the buyer or the supplier. We saw the strike at the Montreal port earlier this year, and all the COVID related problems and shut downs around the world at the ports. A common problem historically, is when a container gets damaged at the transshipment port, while in transit. That wouldn’t be the fault of the supplier or the buyer. It just happens.

So for me, it’s really important as a buyer, and as an SME, that you make sure your supplier has a good insurance policy, and that when you make a list of the required shipping documents, that the insurance certificate is included in that list. This you know your supplier is serious, and that if there’s a problem you have an insurance company that’s going to help both the supplier and buyer to resolve the problem, because the problem in international trade is the costs go up.

If you have a problem in transshipment or at arrival at the seaport, and you don’t have your documents done properly, your goods will get stuck at customs. The fees you have to pay will be on a per day basis. And if you are small, it won’t be long before the buyer is going to abandon this cargo because the fees are more than the value of the goods. So as a supplier, you’re stuck. Right now, again, it’s perfectly normal to be nervous, to ask for extra time. As an SME you probably can’t afford to go for just in time delivery. In my opinion, you need to plan for extra time for delays from A to Z. Your trucking company might not have a driver, because there was an explosion of COVID cases in that specific city. It’s better to receive the goods a little bit earlier than to wait until the last minute and risk having problems.

Emiliano: So what happens in the inverse situation where the buyer is dealing with a supplier delinquency? How would you address that?

The main point is as a buyer, you need to document each step. Before you signed the contract, you should have made sure the supplier had a good insurance contract. So with that assumption as a buyer, you need to document everything you did. As soon as you have a problem with the supplier, you need to file an “intent to claim” letter and send it to the freight forwarder and the buyer. Then, six months down the road after you went back and forth with the supplier and the insurance company, it’s documented that your intention was to get your money’s back either from the supplier or the insurance company.

Emiliano: Where should you position your suppliers and manufacturers to prevent disruptions and/or build in redundancy in case of emergency? Should you go closer to your customer base?

This is the whole other aspect of risk management.

In general, it’s recommended to have more than one supplier, because particularly these days with COVID, it’s quite risky to put all your eggs in one supplier.

For example, you might have a local supplier that has higher costs and the product that they sell is not perfect. But as a backup plan, it’s really important that you keep a good relationship with that local supplier, because your international supplier, that may have a better product at a lower price is physically very far away and therefore riskier in times of disruption.

Negotiating and signing a contract that clearly defines risk and responsibility is key to protecting your business, and even more important during times of disruption.

Clarecia Christie, CITP – Founder, Global Compass Consulting

With over a decade of experience, Clarecia’s professional focus is the intersection of international market access and women’s economic empowerment. She has managed projects commissioned by regional and international development agencies such as Global Affairs Canada, in various sectors in the Caribbean region, Central and South America.

Emiliano: Before the contract is written, what should SMEs be asking for from their suppliers/manufacturers to ensure that they cover their bases? As a buyer, what can you expect the suppliers to ask for during negotiations?

From an SME perspective, it’s always good to have an understanding of your supply chain from end to end.

And you need to know the rules of the game – the trade rules. If you’re going to be supplying to a country where you have a trade agreement, understand what you can capitalize on within that trade agreement and what you’d have to do to that product to make sure that it can enter that country. 

Capitalize on different trade rules or different provisions that are in a trade agreement that you can utilize. You may have to modify your product to adhere to the rules of that trade agreement which will have associated costs, so it’s extremely important to be aware of these considerations. Another thing that you’d have to look at is your suppliers to produce the goods, or if you’re manufacturing the goods offsite from out of your country, will they be able to deliver and what are their costs? Do you expect any change in the cost to produce that modified product? When you’re doing the costing of your product, you’re going to have to include that in it, to come to your final price.

So the questions you’re going to be asking that supplier include the cost to deliver time, and the capacity to deliver. You should also know before going into negotiations, are you going into a country where the culture is different from yours? Do you have to look at language changes? These are some of the many aspects that you have to take into consideration before the contract is written. And even before going to negotiate, you have to pull your costs together. Then, think about how you’re going to get the goods from one place to the next. Are there any problems or anticipated risks along the way? These are some of the things that an SME will be asking their suppliers and manufacturers, to ensure that they can actually deliver on the promise that they’ve made to their potential buyer.

Emiliano: What are some red flags that may come up during contract negotiations?

There are many red flags that can come up during a contract negotiation. Let’s take a look at something that’s a creative product. During your negotiations the other party may ask for transfer of your IP. You have to be diligent to understand why they would want that. Will that restrict you, your IP, or your product from selling to another company? So that is a red flag to look for. Another thing that we could look at is non-competition. Why would you ask for a non-competition clause for a product? Maybe you have plans to go into that field. And eventually the person who is your first supplier will be pushed out. Look out for payment. If someone is asking for payment upfront, from a buyer perspective that’s a red flag.

If you have a lead, you have to do your due diligence to learn more about who your buyer is and what their performance has been with other suppliers.

Emiliano: What are the most common contract errors SMEs make and how can they fix them/ prevent them? And when should an SME engage lawyers, or contract experts to help?

A common error I see is that a business gets an order and they’re really excited about it. It’s just a verbal agreement, and because the seller may be inexperienced and excited to fulfill this opportunity, they go ahead and start making preparations without due diligence. They haven’t thought about risk. Who’s going to take on the risk at what point of the logistics chain? A verbal contract is not a sound contract.

Another common error is also is flip-flopping on price.

You have to do your costing analysis and pricing analysis so that you know that the price that your contract is proposing is the price that will give you your profit will cover your costs and cover your risk.

I have seen instances where a price was quoted and the seller was very happy about that price, but inflation, foreign exchange, fluctuation rates have eaten away that profit. You don’t want to come back to a buyer who you have signed a contract with to say, I can’t supply these goods at that price.

Another thing that you have to be clear about is in which jurisdiction will any sort of dispute settlement occur and which method of dispute settlement. Make sure you have all your I’s dotted and your T’s crossed before going into a contract negotiation. It’s always good to pull together a team so that you have the expertise to cover all your bases. You’re covering most favored nation. You’re covering certificate of origin. Making sure you have the right HS code because you don’t want to be a burden on the buyer, but you also don’t want to be losing anything on your end.

And yes, you have to have legal counsel, whether you’re a seasoned exporter or a new exporter, because laws change. Even if you have a revolving contract, there are instances when laws change and whether you have a revolving contract or not, you’re going to have to make amendments to those contracts to go with the law of the land, especially if you’re using a third party jurisdiction for dispute settlement.

Watch the full webinar including a live Q&A with the panel!

The post Incoterms 2020 & COVID-19 – Protecting your business and supply chain through diligent contracts appeared first on Trade Ready.