Arrange export shipping and documents

Shipping an export comes down to four decisions: how the goods travel, who bears which costs and risks, who looks after the move, and which documents go with the shipment.

Choose how the goods travel

Weigh the cost and distance against when the goods must arrive. Then look at what you are shipping. Consider its size and weight, whether it is perishable and whether it needs extra security. Restricted goods, dangerous goods and animals need special rules or licences. Some shipments combine several modes, and a forwarder can arrange that for you.

Agree an Incoterm with your buyer

Incoterms are three-letter trade terms from the International Chamber of Commerce. They record where you deliver the goods, who arranges transport, who insures them, who handles customs and who pays duties and taxes. Put the term in your sales contract and on your export invoice.

The choice shifts risk and control. Under Ex Works the buyer takes on all transport costs and risks from your premises, and you lose control of how the goods are looked after. Under Free on Board, which is for sea freight, you pay the costs and keep control until the goods are loaded at the UK port. Under Cost and Freight you also pay the freight to the overseas port, and the buyer takes the costs and risk from there.

Decide who handles the move

A freight forwarder is an intermediary between you and the shipping line, airline, rail or haulage company.

You may not need a forwarder if you understand your cargo's customs requirements and have an agent overseas to handle delivery. The same goes if you ship enough to get good rates direct from carriers and have time to arrange the transport yourself. For small or regular parcels, a parcel courier can be simpler, cheaper and quicker: collections are often free and deliveries tracked.

Prepare the documents

For a country where English is not the main language, consider an extra set of documents in the local language. If your buyer requires you to insure the goods and pass on the cost, you also need proof of insurance.

Check the rules for dangerous goods

The sender, called the consignor, classifies, packages and marks dangerous goods and completes the form that travels with them. The rules differ by mode, and if you move dangerous goods internationally you should employ a dangerous goods safety adviser.