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Export process to the USA by Rui Pinto - COO of Multicargo

Publicado por: Ferreira, Paulo em 7/18/17 11:00 AM

Export process to the USA by Rui Pinto - COO of Multicargo.png

He started working in the Transport and Logistics industry for almost twenty years ago, at Unicordas. He subsequently collaborated with several multinationals, such as the Marmedsa Group, Nippon Express and Bax Global.

In 2001, he began a new career step in Justlog, and was responsible for starting the Air Cargo department. He was involved in this project during 9 years, most of them as Manager of the Export Department.

He has been cooperating with Multicargo since its establishment in 2010. Currently, he is the company Chief Operating Officer, supervising all the day-to-day operations of the company and contributing to the development of new services and solutions, customized to the clients’ needs.

In addition to being a professional, he shares his free time between family and sports. The constant search for new challenges has already led him to complete some ultra marathons in Trail Running and endurance races (24h in Portugal). Triathlon is his current focus, with the goal of one day reaching Ironman status.

We asked him about his opinion about the export process to the USA:

For Portuguese companies the US market continues to be one of the most important destinations for their exports. Today it is even the largest, if we exclude the European Union.

Traditionally, however, exports to this country are made on FOB (Free On Board) or EXW (Ex Works), transferring to the buyer all costs and risks for transportation. The explanations of exporting companies for this phenomenon generally translate into the following justification: "because it gives less work" or "because that way the responsibility is not ours". But it is precisely at this point that Portuguese companies are losing opportunities that could leverage their business with their counterparts on the other side of the Atlantic.

The more than 15 years of involvement with the American market, let me claim that there are a large number of companies that do not want to waste time and resources on the transportation process, focusing exclusively on their core businesses. As such, when they buy products they negotiate DAP (Delivered At Place) conditions, where the importer only performs the import clearance and settlement of duties/ charges to the customs authorities, or DDP (Delivered Duty Paid), where the importer receives the Warehouse without any intervention in the transport process.

The shipment of goods by air or sea, in these conditions (DAP or DDP), generally, has the condition to "scare" the exporters, who, for lack of knowledge of the necessary procedures, fearing the costs involved, opt to try to convince potential customers to buy FOB or EXW. In many cases, the result of this situation turns out to be the non-concretization of the business.

Selling DAP or DDP does not have any mysticism, nor should it "scare" any exporting company, to the point being a hindrance to carrying out any business with the US. Multicargo counts on its team with collaborators who can help the exporters in the different phases, to estimate the costs and to guide in each step of the export process.

Over the years we have handled hundreds of DAP and DDP shipments, whose end result has invariably been happy exporters to increase their turnover and importers satisfied by receiving their goods under the required conditions. This satisfaction has led to the loyalty of customers, resulting in an increase in the quantities handled.”

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Autor: Ferreira, Paulo

Paulo Ferreira is the CEO and founder of Multicargo. A businessman with more than 25 years of experience in the logistics and forwarding business. Widely accredited in the sector for his professionalism and extensive connections worldwide, having a vast international network of agents at his disposal with more than 300 offices in 170 countries, in all continents.

Tópicos: Export