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Entering the world of exports is a turning point on the path to development and globalization for many Iranian businesses. However, this path is not as simple as domestic marketing. Differences in laws, customs requirements, payment methods, business culture, and even the language of the destination country have turned exporting into a complex and specialized field. Many novice exporters make mistakes in their first steps that sometimes lead to irreparable losses. In this article, we will examine the most common mistakes made by novice exporters and provide practical and proven solutions for each.
Mistake 1: Not analyzing the target market before exporting
Many exporters export without detailed knowledge of the destination country, simply because there is a buyer or initial connection. This approach is dangerous. The product in question may have a saturated market in that country, or different standards may be required that the product does not meet.
Solution:
Conduct target market research before taking any action. Use sources such as joint chambers of commerce, international exhibitions, official import statistics of the destination country and international platforms to analyze the market, competitors, prices, licenses and consumer habits. If possible, cooperate with specialized export consulting companies such as Mahir Group.
Mistake 2: Drafting weak or oral contracts
In some cases, the exporter makes an informal or email agreement with the foreign party and ships the goods without a written and detailed contract. In the event of a dispute, the possibility of legal action will be very limited.
Solution:
It is essential to draft a professional export contract based on international standards, with precise determination of the payment method, Incoterms, shipping conditions, insurance, governing law, dispute resolution authority, contract language and performance guarantee. For this, seek the help of international law consultants and lawyers who are proficient in cross-border trade.
Mistake 3: Choosing the wrong Incoterms
Not being familiar with the precise concepts of Incoterms such as FOB, CIF, EXW, DDP can cause the exporter to accept responsibilities beyond their capacity or incur unexpected costs.
Solution:
Before choosing Incoterms, thoroughly review the duties of each party in the delivery of goods, insurance, customs and transportation. If you do not have experience in this field, be sure to consult with an international transportation expert or export consultant.
Mistake 4: Ignoring the customs laws of the destination country
Some exporters only pay attention to the domestic laws of Iran and are unaware of the customs requirements, import restrictions, health and technical permits of the destination country. This can lead to the return of the goods, their seizure or heavy fines.
Solution:
Before exporting, find out about all legal requirements, licenses, brand registrations, and necessary documents by consulting the official customs sources of the destination country or trade representatives in embassies. Working with an experienced customs broker is also recommended.
Mistake 5: Choosing an Insecure Payment Method
Using payment methods such as “Open Account” or sending goods before receiving payment, without knowing the other party, is very risky. In many cases, novice exporters face fraud or non-payment.
Solution:
Use secure methods such as letter of credit (L/C) as much as possible. If you are also considering methods such as advance payment or remittance, be sure to obtain a bank guarantee or valid collateral. Also, reduce the level of risk by researching the buyer’s credit and business history.
Mistake 6: Neglecting cargo and export insurance
Many exporters, especially when exporting to neighboring countries, send goods without insurance. In the event of an accident during transportation, the exporter will suffer heavy financial losses.
Solution:
At least C insurance is recommended for export cargo. For sensitive goods, choose more complete coverage such as A insurance. Make sure that the international insurance policy is valid and traceable.
Mistake 7: Lack of standardization and proper packaging
Export products are sometimes shipped without complying with the technical, health, or appearance standards of the destination country. Improper packaging or incomplete information on the label is also a factor in product rejection at the border or consumer distrust.
Solution:
Find out about the technical and appearance standards of the destination country. Labeling, the language of information on the package, expiration date, safety warnings, and contact information must comply with the requirements. For Arabic-speaking countries, labels must be in Arabic; for Russia and Central Asia, labels in Russian or English are essential.
Mistake 8: Failure to return foreign exchange from exports according to Iranian laws
In some cases, novice exporters do not return the foreign exchange to the country or use illegal methods, which may result in the deprivation of a business card or legal action.
Solution:
According to the Central Bank’s instructions, foreign exchange from exports must be returned through the NIMA system or other authorized methods, such as transfer to another importer. Consulting with a foreign exchange or international finance expert is essential in this regard.
Mistake 9: Ignoring international arbitration in contracts
In the event of a dispute, if the arbitration or dispute resolution authority is not specified, legal action will be very difficult. Some novice exporters think that they can get their money back from the foreign buyer by filing a complaint in a domestic court.
Solution:
In the contract, be sure to designate one of the reputable international arbitration centers such as ICC or UNCITRAL as the dispute resolution authority. Also, the law governing the contract (e.g. international trade law or the laws of a neutral third country) must be
Clearly stated.
Mistake 10: Lack of accurate documentation and digital registration of documents
In international trade, accurate registration and maintenance of copies of invoices, bills of lading, certificates of origin, export licenses, correspondence and contracts is essential. Novice exporters sometimes lose the possibility of legal or insurance follow-up by losing vital documents.
Solution:
Use digital document management systems. Scanning and storing original copies in the cloud or internal platforms of the organization increases information security. Have a complete documented file for each export.
Mahir Group; Specialized solution to prevent export errors
As we have seen, successful export is not just about sending goods. Familiarity with processes, standards, international law and understanding the target market all play a key role. To avoid costly mistakes, it is essential to have a professional and expert companion by your side.
With years of experience in the fields of export, international contracts, arbitration, customs law and market consulting, Mahir Group offers comprehensive services for novice and professional exporters. From drafting secure contracts and market analysis to risk management and resolving international disputes, Mahir Group’s legal and commercial team is by your side to ensure a safe, profitable and sustainable export.
Conclusion
Exporting without knowledge and preparation can be detrimental and risky. The mistakes reviewed in this article are realities that dozens of novice exporters have faced. However, by adhering to professional principles, using expert consultants and continuous learning, these risks can be overcome and export can become a secure opportunity for growth.
If you are also at the beginning of the export journey or have a bitter experience from past mistakes, it is time to contact Mahir Group’s specialized consulting team and continue your business path safely and professionally.
