International Trade Agreements and Commodity Services

The ones you need to know if you are trading into or out of USA.

Money exchange for services or products is the norm, regardless of the nature and size of the trade. Market values, set out by free commerce, rule many of these economic transactions and regulate the prices, according to the offer and demand of a product. They operate by a simple estimate value of the products, and consumers and providers happily oblige to that set of pricing and exchange. But in the commodity business and international trade, it’s harder to state rules to commercialize products and services. For this reason, the International Trade Agreements were created.

The General Agreement on Tariffs and Trade (GATT) is the main one of the set out international trade agreements. Within its parameters (established in 1947) the trade is liberal and can be monitored and worked in close cooperation with more than one nation, to create market opportunities where all parties involved are protected and can benefit from these norms. While this institution has been under the WTO for quite some time, its original nature is the base for most international trade conventions nowadays.

Most of these trade agreements, however, are defined by the World Trade Organization (WTO), which is under the GATT normative since 1995. These organizations were created to establish the requirements and interactions for all signing countries of the treaty, and to provide support and mediation in trade disputes and negotiations, along with the monitoring and assistance and training for countries that are developing their presence in the international trade market. This institution is established to define and track the transport of products into and out of the United States. International trade agreements, set between two or more nations, often cover particular characteristics of the importation and exportation process and can be specific for certain products (or categories), depending on the nature of the trade.

The US government is currently engaged in more than 320 international trade agreements. 20 of those are with the following nations: Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Korea, Mexico, Morocco, Nicaragua, Oman, Panama, Peru, and Singapore. These, along with the Trans-Pacific Partnership (TPP) agreement with Asia, and the Transatlantic Trade and Investment Partnership (T-TIP) with Europe, create a strong base for the trade of products and services, as both importers and exporters. They offer economic opportunities to the commercial sector of the US, fomenting safe trade of prime and manufactured goods from foreign territories.

These, along with the commodity service brokers, help to increase the commercial alliances with other countries profit chances. Ideally, these trades are beneficial for both parties, helping to establish a reliable economic infrastructure from which any company with knowledge can benefit. The commodity brokers often consider these international trade agreements, as norms that can be used on their behalf to create commercial success, when offering economical opportunities to their clients.

If you want to make the most out of any international commercial agreement, Coagro Corp is your best choice. They are professionals in the field and work with experts to create opportunities that will benefit both parties. Make the most out of the international trade agreements! Contact them now to use their experience in your favor!

Knowing these regulations will ensure better commercial agreements.

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How are Products Classified for International Trade?

This knowledge will help you create a stronger business. 

For commercialization, all companies must create their products to fit certain criteria. The defining factors will be set by standards of quality, security, hygiene measures, production, and origin, to name a few, considering the particular trade market of choice. But when the identification of all of these characteristics is required for commercialization purposes, it’s necessary to create a nomenclature to ensure that all parties understand what’s being commercialized. This is especially important when products are going to be sold or traded abroad. International trade requires strict classification to ensure customer satisfaction, and today you’ll learn all about it!

How are products classified for international trade?

To deal with language barriers and other technical difficulties that can arise when trading on international markets, the creation of a standard code is required. These systems assign numbers that indicate the characteristics of a product by hierarchy and offer a detailed guide that can be assessed by anyone that knows the nomenclature.

However, these international rulings vary depending on the market and the particular requirements of the field so that products can be labeled according to one or more of the following identification methods:

Harmonized System (HS):

It’s set by the World Customs Organization (WCO) and is among the most frequently used classification systems. It’s a series of 6 digits. Each pair of them designates particular characteristics. The first two are the chapter indicator; the following pair is the heading; the next pair is the subheading. These codes are used for international trade and are compiled and updated every five years.

Harmonized Tariff System (HTS):

Countries of origin and destination often require additional information to introduce the traded goods into national classifications, hence the creation of the HTS classification. In the case of the US market, this is a code limited to the requirements of their own field of work. It's composed of the HS code, with 4 additional numbers, creating a 10-code number unique to the country. In the case of the US, these are updated annually, with midyear modifications when necessary, and are determined by the US International Trade Commission.

Schedule B codes

This system is used for the exportation of products out of the US markets. These are a form of HS code and comply with the same normative, as far as nomenclature (as they will be in international markets, where this is required). It’s composed of 6 digits, and its classification and register are done through the Automated Export System, with the US Census Bureau to publish the numerical determinants per market and amount.

Why are products classified for international trade?

While commercialization might be the obvious answer, nomenclature does more than just to define and indicate the origin of products and help its commercialization. These classifications are important for all parties involved in the trading process, and they can help speed up the process of transportation. International trade codes also make the whole process more efficient and likely to comply the requirements of the buyer and seller.

It's no wonder why most countries value what the code systems do for their business and stick to them. Why? Because they can help achieve the following goals:

• Ensure correct custom tariff payments.
• Allow the collection of internal taxes.
• Create international trade statistics.
• Determine origin.
• Allow concessions for market negotiations.
• Improve the effectivity of risk assessment, compliance and information collection.
• Help to monitor transported goods (to ensure they are legal and controlled).
• Reduce the risk of legal transportation of illegal products.

All commodity and trading companies know that following the correct nomenclature systems speeds up the process, and ensures the safe traveling and arrival of the products they send to their customers. Coagro Corp knows this and makes sure that every single element they offer to their consumer is properly identified to ensure satisfaction. Contact them and do business with professionals of the commodity world!

The paperwork and amount of transported products make part of these classifications.

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What is Import Compliance?

In the importation trade, knowing the fundamental steps is vital.

Importation processes require care and attention to the market details that can affect the commercial procedures. One of the things that commodity companies know is that taking care of the details and verifying the requirements and documentation is the way in which they can ensure correct results for all parties. Commercialization, especially importation, requires extensive knowledge of something particularly important: import compliance.

All companies must abide by a particular set of rules indicated by the national trade organization or the respective entity in charge. They are the ones that establish the regulations for the transit of materials, along with the variable differentiation among the different elements that need to abide by their rules. These are set according to the international trades, but depending on the particular policies of each country. There could be slight changes in the requirements and standards when compared to other international sets of rules. As you surely know, every product has its own characteristics and legal requirements to enter other countries premises, and that’s when importation compliance comes into play.

The entity in charge of ensuring the compliance of products in the US territory is the Custom and Borders Protection (CBP). The CBP is the organism that makes sure that all these characteristics, inherent to the US market, are met. In the process, they ensure the particular responsibilities of each party are met. Legal liability, payments, and regulations according to the nature of the product are just some of the factors they consider in the import compliance ruling. These, along with other commercialization risks, such as payment issues and satisfaction risks, are also taken into account when inspected to fit the criteria for importation compliance.

These are just some of the things companies do to fulfill the import compliance and posterior approval:

• Define a logistic field of work for all parties involved.
• Create a coalition of employees, and set individual responsibilities.
• Establish policies for compliance in documentations.
• Review company processes and controls.
• Certify all members of the operation.
• Create standardized processes per product.
• Define and implement record-keeping for products, according to each documentation.

Coagro Corp is a company that focuses on creating a commercial relationship set on the basis of trust and responsibility. For that reason, they are aware of importation compliance and make sure to have the necessary data and processes to fulfill all the requirements. Contact them if you want to import raw material for your business or to associate and acquire the right assistance in your commercial endeavors. Check their social media profiles to know more!

This is one of the most underrated characteristics of the importation processes. 

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Understanding the Risks of International Trade

Especially when these are related to the trading business. 

International trade business is one of the most complicated fields of work. It requires attention to detail, extensive knowledge and connections that give you access to all the relevant information that you need to accomplish favorable business deals. This field is as risky as any other high demand business and is subject to particular problematics that threaten the security and profit for all the parts involved. International trade needs to be taken seriously, and you, to succeed and minimize your losses, need to know the factors that make this business particularly risky.

These set the liability for all the parties in the commercial agreement (being this of any nature) on international terms, according to the World Trade Organization. These conventions rule importations, exportations, foreign production and commercialization of any product, and most companies and traders abide by these rulings. But what happens when one or several parties don’t stick to them? What are the consequences of the risks one is subject to when trading in international models?

Credit risks: For its nature, most international commercial agreements require an advance payment, and then to set a due date for full payment. Credit risk implies the inability to fulfill or finish the bargain.

Legal risks: The documentation and subsequent inspections of the transaction could become a problem if they are not done adequately. Which, in turn, can lead to other hazards, such as the inability to seal the deal or satisfaction risks.

Performance risks: When the seller or the buyer is unhappy with the attention quality or the international transactions presents some setbacks, then one or two parties in the commercial dealing have solid ground to complain about performance risks to legal entities.

Satisfaction risks: Less common, but equally risky, is the unsatisfaction of the buyers. This means that the product provided by the seller does not comply with their requests, which can lead to a legal procedure.

Transportation risks: Companies that transport material from one place to another know that the process can damage said products. These risks directly relate to the satisfaction ones, as the inability to ensure the product security requirements during transportation can influence the valorisation of your company.

Currency risks: The commercial world often works in dollars, but other big markets, like the Asian and European, also work with other currencies. While this can happen in one-to-one transactions, it’s more common to find complaints on the currency when providing to or acquiring from several businesses.

Sovereign risks: Foreign and homeland policies can affect all commercial trading. And while this is something that can’t be avoided, it’s a risk that most trading companies face, as they work with businesses around the world, regardless of politics.

International trade is plagued with commercial and personal risks. These, however, should not deter you from working in this field. Besides, if you want to make sure that these risks are taken into consideration by professionals on the field, you don’t need to look further: Coagro Corp will be the perfect assessor. With almost 20 years in the trading and commodity service, they can assist you from day one to reach your commercial success with their prime material and consulting services. Contact them now!

In any business, knowing what could affect your profit and work is important.

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What are the Most Common Measures to Protect Your Packages?

The shipment of goods faces a great deal of complications from start to end. From having all permissions and regulations, both the FDA and CBD, to the sanitary measures, each product requires to arrive in a perfect state. Besides that, some factors can't be entirely controlled and could compromise the quality of the commodity, like the weather, vibrations and rough handling. How can you ensure your products are safely protected for transport? As it is impossible to foresee unexpected complications, protective packing is the solution to the problem!

Sea Freight

Shipping through the seas is one of the most efficient ways of transport, but it can also pose a risk for most commodities. Salt water contamination and salt water vapors are factors that could make their way into your goods. To avoid these two from affecting your products, have your shipper incorporate vapor barriers into the design of your packaging. Also, make sure that all your goods are properly sealed and placed in the case that tides cause excessive movement and misplacements.

Air Freight

Most companies need their packages to arrive as soon as possible, making this option a must for them. This mode of transport is, generally, really safe, and it also improves the level of service for customers. Unfortunately, not all goods are allowed or suitable for air transport. Also, this transport method often comes with airport taxes, excise, and customs restrictions.  

If you decide to use this method of transportation, you must consider the atmospheric pressure, as it can affect your products if not packaged properly. The movement is another factor that can affect your packages due to the acceleration, take-off and possible turbulences. To avoid potential damage to your goods, make sure all your products are properly wrapped to secure and isolate them.

Road Transport

All packages will require road transport at some point in the shipping process. Road transportation is the least expensive and the most efficient way of transporting perishables and raw material. But you must keep in mind that there are many complications on the way as well, like unexpected delays, bad weather, vibrations and careless driving.

To ensure the protection of your goods during road transport, you must be very selective with the design of your packages. For example, vibrations can be prevented by adding cushions to your package, as they absorb the movement. The cushion should be devised in a way that there’s no influence from vibration and the good is isolated from it.

Protecting your package will determine if your products arrive safely or damaged. If you work in a business that requires regular shipping, it’s your responsibility to handle your goods transport properly. Does your business need assistance in the whole shipping process? This is where Coagro steps in! They’re importation experts, covering all the requirements for shipping, from beginning to end. Make sure you contact them to receive the products you want safely!

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What are Product Satisfaction Levels?

What most people don't know is that products are indeed rated by the satisfaction they generate on consumers.

Customers are the most important elements for a company. Yes, even though the products are relevant for your business, you need to remember that the raison d'être of your business is satisfying a need. This is the base of your operation and the reason why, at the end of the day, you are working in your particular field. But how do you measure the objective reason why your company or brand is appealing to your customers? How do you make sure to stay on top of the fulfillment of their needs? That is done through the study of product satisfaction levels within your offering.

What are product satisfaction levels?

In short, they are the levels by which any company or business, related to the selling of products and services, fulfill the needs of their consumers. These can be measured by the qualities of the product and the effect they have on the consumer's opinion or the fulfillment of their needs. The information provided by the study of this levels can help you correct some details that prevent your business to succeed.

These levels, however, are not numerical in form. While numbers can indeed measure them, it’s the empirical value of their assessment what makes them important. They are methods to allow businesses a way of ensuring they stay at the top of their game and always offer products or services to potential customers according to their feedback.

For providers and manufacturers, the product satisfaction levels are of particular importance: they are the reason why they go to a specific company. They are the reason why some users are loyal; not only for monetary benefits but also for the quality and general value of the products. But what are these levels exactly?

• Core benefit: This is the top level of the product satisfaction pyramid. It implies the fulfillment of the need of your customer base and the reason why they buy your product in the first place. Identifying the core benefit can help the way in which you focus your sales and processing.
• Generic qualities: Think of this as the vessel for your product. It can be the method by which you provide your customers with the element they are looking. The generic benefit is complementary to the core and is often a good 30% of the overall reason why customers acquire what you offer.
• Expected element: The consideration of this benefit is key for brands to assess the characteristics expected by their customers. It requires brands to identify the benefit that their consumers are looking for in the purchase. It’s the “package” of your product, the way it is presented or showcased to appeal to customers.
• Augmented qualities: These are the complementary features that make your product unique. What makes it superior to the other options? This is the core question to identify the qualities that augment its appeal in the competitive market of your particular niche.
• Potential characteristics: How is your product useful to your customers outside a particular field? How could they use it to create something else? Unless it’s a personalized design or element, the potential characteristics that the product acquire to complement others are part of the overall satisfaction process of your customers.  
• Compliance factor: Products need to comply with a set of rules on specific fields. These, depending on the nature of the product, can be quantitative, qualitative or empirical, but the compliance to them ensure satisfaction from customers.

Ensuring that your offering satisfies the needs of whoever buys from you is a way or guaranteeing economic success for both parties in any commercial relationship. The attention you give to the characteristics of your product or service is the reason why your current and potential customers will consume over and over your brand.  

Coagro Corp knows this better than anyone: they connect with their clients on a deep level and find the elements that will appeal to their needs. Experts in the commodity service work to ensure their clients acquire the best in the market, which grants personal and professional satisfaction. Contact them and expect the best service and results!

In the commodity trade, the satisfaction of customers is an important thing to monitor the overall quality of the product.

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