The Institute of Export (IOE), in conjunction with Trade and Export Finance Limited, is calling on businesses trading internationally to take part in a national survey which will measure confidence, issues and current trends affecting the export industry.

The survey builds up a clear evaluation of the UK’s export market which is then used by Government, the Bank of England and other UK policymakers to shape and influence future government policy.

Exporting has been consistently cited by Government as a vital element in the UK’s recovery, creating skilled jobs and boosting the national economy. The survey will provide an invaluable benchmark against which to evaluate the effectiveness of initiatives to kick-start international trade.

“We anticipate that the survey will reveal vital information about the state of the UK’s export industry and how changes in both the national and global economy are impacting our exporters,” Lesley Batchelor, director general Institute of Export, said.

“Historically these surveys have provided a fascinating snapshot of the attitudes of exporters. For example the 2001 results revealed that the vast majority of exporters were largely in favour of joining the Euro, while 50% expressed concerns about the impact on their business of China joining the World Trade Organisation. It will be interesting to see how the recession has influenced changes in attitude towards historical issues and new challenges.”

Businesses can access the survey here.

Speaking to business leaders in Cambridge, at the Going Global: Helping small businesses trade abroad conference, Business and Enterprise Minister Mark Prisk encouraged entrepreneurs to get trading and help boost the UK economy.

Business and Enterprise Minister Mark Prisk said: “Giving businesses the confidence to trade abroad is vital to help boost growth in the economy. UK Export Finance is supporting SMEs by introducing a range of financial support for businesses that want to export but can’t obtain the finance they need through the normal commercial routes.

“We are also helping businesses to protect their intellectual property abroad by introducing an online register of advisors as well as placing our first international attaché in China to help UK businesses with enforcement issues. With support from UKTI we will give entrepreneurs the confidence to explore new markets and grow their business.”

The conference was hosted by Vice Chairman of the European Parliament’s International Trade Committee Robert Sturdy MEP.

No matter where you travel, you are aware of increasing prices.  Luxury goods and brand names are snatched from the shelves as soon as they appear.

I have always held that the Chinese bubble will burst one day in the near future. We cannot continue to look to China for quality goods at a very competitive price. Who in the end is paying for this competitive price?  Answer: The Chinese factory worker. The key To China’s industrial success is labour, and low cost labour at that.

Put your average worker on the high street and what do they see, luxury goods selling at ridiculously high prices.  For example, a Hermes handbag retails for £8,000 in the UK and you can pay up to £10,000 in China for the same bag and they are snapped up at that price! They also see the price of their daily essentials increasing by the month.

What’s the knock on effect of all this?

Simple, the worker demands higher salaries, higher salaries mean higher ex factory prices, higher ex factory prices means the China bubble bursts.

It’s not going to burst today or next year but that bubble is getting bigger little by little.

My point is that traders should also look outside China for suppliers.  Don’t wait for that bubble to burst.

How can they do this? How can they get the same quality as they are getting from China and at a competitive price?  Answer: Trade with preferential trading partners.

The EU has nominated certain countries from whom we can import duty free or at a reduced rate of duty. However, it is not as easy as that. The goods you intend to purchase must comply with the Rules of Origin. For details of the rules consult your local custom office, Chamber of Commerce or Business Link.

By preferential trading you can reduce two of your major cost centres:

China                                                            Preferential Trading Country

Duty Payable                                               Zero Duty

Deep Sea Freight                                       Truck or low cost air freight

From a logistical point of view the preferential trading countries are nearer the UK than China, hence savings on freight.  Savings on freight combined with Zero or reduced duty often results in a lower cost from a Preferential Trading Country than purchasing in China.

Try it. It works.

Alan Bracken of ABTS Training Services said: “This is welcome good news in a gloomy economy.  Exports are still holding up and contributing to the steady growth of our economy. However we are in a very competitive global market place.

“We must continue to offer quality products, services and delivery times to meet the demands of overseas customers.  Exporters must be encouraged by our government to secure orders which in turn can be translated into jobs in the UK.

“Exporting companies need to exercise best practice in all aspects of their export drive from negotiation techniques to delivering the finished produce and getting paid on time. Having a well trained and motivated staff is key to their overseas success.”

ABTS Training Services offers export, import, negotiation and methods of payment training wrapped up in one five week part time course based on Alan Bracken’s twenty years experience in international trade.

Check out our website for further information about the International Trade course or write to us at consultancy@abtslogistics.co.uk to find out how we can help your export drive.

Alan Bracken of ABTS Training Services commented: “Many UK companies are now expanding into new global markets which can only be good for our faltering economy.

“However, they must have a strong understanding about the business of exporting, such as negotiation skills with overseas partners and understanding the different commercial cultures.  They must be in a position to deliver the sharp end of exporting in terms of understanding documentation and freight rates and working with third party providers such as clearing agents and freight forwarders.

“Get it right and it is a smooth operation. Get it wrong and you are in deep trouble.”

Getting it right is the theme of ABTS Training Service’s five week, part time, International Trade course.  By the time you have completed the course you will be ready to export profitably and with a clear knowledge of what is required of you.

The old “over the ships rail” has gone (how did we ever manage that with RO/RO?) and been replaced with “on board” the vessel, a clearer and more sensible place to transfer risk and delivery.

The new Incoterms DAT and DAP have been a welcome addition for traders, giving them a better variety of delivery points.

Incoterms 2010 has been a welcome and refreshing edition and as ever illustrates clearly the  trader’s responsibilities under place, cost and risk.  However traders are still making the same fundamental mistake with Incoterms 2010 as they did with previous editions.

They do not indicate that the term they quote is subject to Incoterms 2010, thus leaving the responsibility under  place cost and risk up for grabs, contrary to the  reason why  Incoterms  was initially established back in the early 1930s.

If you have been trading under Incoterms 2000, understanding the transition to the latest edition can be accomplished in our half day ‘Incoterms 2010’ course.

For beginners, our one day introductory course will set you off on the right foot.

Recently, for example, a Turkish buyer requested an ATR movement certificate from a UK seller for goods despatched direct from Peru to Izmir in Turkey.  This was not possible as the ATR movement certificate can only be issued for goods which meet with the rules or origin that goods must be manufactured and produced within the EC or in free circulation.

Alan Bracken of ABTS Training Services stated at a recent seminar on letters of credit:  “You get the letter of credit you deserve, if you don’t ask you don’t get.

“In order to get a workable letter of credit you must give the seller details of the letter of credit you require.”

ABTS Training Services is running one day in-house and public courses on documentary letters of credit throughout the year; one of the topics addresses how to request a workable letter of credit.

David Kern, Chief Economist at the BCC, commenting on the trade deficit for August, said: “The trade figures for August show an improvement in the overall trade deficit, and are better than expected. A revision of previous figures means that the trade deficit was smaller than previously estimated. Excluding all erratic items, exports have increased more strongly than imports over the last month, and also on a three-monthly basis. It is encouraging that, even in a difficult international environment, Britain is able to strengthen its trading position.

“The figures provide a welcome contrast to the steady flow of negative news we have recently. However we cannot underestimate the challenges ahead for exporters, particularly in the face of the serious problems facing the Eurozone, which remains our major trading partner. As the fiscal austerity plan dampens domestic demand, net exports have to be the main engine of Britain’s economic recovery.

“This means that the government must support a national export drive. Unless we accelerate the pace of export growth and we gain market share from imports in the domestic market, it will be difficult to sustain UK growth. The government must strengthen its backing for SME exporters in key areas such as trade finance, insurance and promotion.

“While a competitive pound and low interest rates can help our exporters, further efforts are needed to ensure that our businesses can compete equitably with foreign exporters. On their part, Britain’s exporters must make every effort to diversify their sales towards fast growing economies such as India, China and Brazil.”

Alan Bracken, course director at ABTS Training Services, added: “Companies who need to export from the UK must retain highly trained staff that can confidently provide an export service to support the companies export drive.”

We have been working hard on our new site and will be soon offering an online import export training course.  Register your email and mobile if you would like to be notified when the course is online.  We expect it to be ready by the end of the year.

Keep an eye on our blog for the latest industry news and any news and updates within ABTS Training Services.