How Exporters in Your Area Spend Less on Export Permits?

Exporting a consignment containing products in the categories like agriculture, horticulture, dairy, poultry and meat must be done as per the prescribed protocol. Firstly, the exporter must submit a request for permits to the Department of Agriculture, Water and the Environment. Next, the Department must conduct an inspection to review the quality of goods. Finally, the Department issues an export permit and associated certificates that match the importing country’s requirements.

It should be noted that the entire process requires exporters to pay the prescribed fees. However, you may find many exporters in direct competition with your export business spending less on it than you do. So, how does that happen? Let’s find out some of the top reasons that may reduce the overall costs for you as well.

Manual vs. Electronic Certificates

Among the top reasons behind the cost difference is the way you apply for health/phytosanitary certificates. Compared to the fees that an exporter pays in order to obtain these certificates manually are higher than what one needs to pay online. The Department operates an EXDOC system which allows exporters to apply for electronic certificates. Apart from lower costs, the system also offers benefits like faster turn-around times, on-site certificate printing and so on.

So, how can you make the switch? First, you need to buy software, registered with the Department, to be able to communicate with the EXDOC system. Second, you must register with the Department as an exporter or as an EDI user.

Manual vs. Automated Application

Even if you have software for the process, it may demand your staff to manually fill the required form. As a result, you might be experiencing one of the hassles like human errors, wrong information and slow processing. Going further, it can lead to delays in shipment or penalties resulting from non-compliance.

The solution is to automate the process and let your software fill in the forms electronically. It not only saves time and costs but also introduces higher productivity.

Permits for Different Commodities

Just like you export products in different categories, there must be other exporters doing it as well. However, they still spend less on obtaining permits and certificates for each one of these commodities. Why? The answer is simple. You might be using different software tools to request permits for grains, fish and fish products, meat and meat products and so on.

Due to this, you not only pay extra costs but also spend unnecessary time and effort. The chances are high that your competitors use a single software that covers each of these categories. Hence, the process is simpler and cost-saving for them.

Small vs. Large Teams

Ado you employ a team of 4-5 employees to manage export documentation? It is a possibility because of your traditional methods of applying for export permits and communicating with authorized agencies.

On the other hand, a number of exporters, who automate their processes, use cloud-based software and use electronic systems to prepare documents, need just 1-2 employees. It might further reduce their costs.

In addition, you may also reduce the costs by taking advantage of the Single Electronic Window (SEW). It allows obtaining export permits as well as the export declaration number (from the Customs) in one go and hence saves costs.