Exporting

Export Process

After an order has been produced, correct labeling, packing, and shipping will ensure that your products reach your customer without delays.  This module will focus on the requirements for export shipping--what you need to do to correctly prepare and ship your order.

This module covers the following topics:

Labeling an Order

Labeling an Order

A label is information which is attached to a product.  Labels have many uses.  They may identify the product, give information about the product (for example the price or materials), outline instructions for how to care for the product, or tell more about how it was made.

Clear labeling of products is important because it helps your order travel from you to the end customer as efficiently as possible.

Common labels for craft products include those that are:

1.  Regulatory Labels

How you label your products will depend on your country's government and the requirements of the country to which you are shipping your product.  Adhering to government regulations is important so a shipment is not delayed in customs.  You should understand and follow all regulations pertaining to your order.

Following are some examples of regulations when shipping to the U.S.

Apparel, Bedding, Pillows, Rugs, Textiles: All textiles must be in compliance with the Fibers Identification Act and Care Labeling Regulations (www.ftc.gov/os/statutes/textilejump.shtm).  Examples of textiles include but are not limited to apparel, bedding, pillows, rugs, table linens, towels, potholders, etc. A fiber content and care label must be affixed to the item.

Products used with Food: All products that may come in direct contact with food must be in compliance with the U.S. FDA standards.  Examples of food-use items include but are not limited to mixing bowls, plates, serving platters, ladles, fruit bowls, silverware, serving pieces, salad sets, etc.  All ceramic and metal products must be permanently marked with the manufacturer's name and country of origin. You must provide a label or insert with information as to whether the item is safe for use in an oven, microwave or dishwasher.

Country of Origin: The U.S. government requires a "Made In (Your Country)" label affixed to all products.

If you have any questions about regulations, ask the buyer for more information or, if you have internet access, learn what you can online.

 

2.  Labels Requested by the Buyer

Your buyer may give you special instructions for labeling in your Purchase Order.  The buyer may want labels affixed to each product with the price, care instructions, instructions for assembly or other information.  Some buyers may supply pre-printed stickers to label their products.

If there are any questions or concerns about using or attaching labels requested by your buyer, it is important to communicate this clearly.  It is better to resolve these in the beginning so you don't have problems later on.

 

3.  Labels for the End Customer

Many end customers like to know more about their product.  Information about the producer, design, the technique, materials, the history of the craft tradition, or the good work your organization is doing can set your product apart and educate customers.  This adds interest and value to your product.

You must receive the approval of the buyer before putting these labels on products in their order. Some buyers encourage the addition of a label, others prefer to only have their own label.

If you plan to add a label of your own for the end customer, remember to add the cost to your FOB price.

Guidelines for Label Placement

Guidelines for Label Placement

If your buyer wants labels attached to products, ask where labels should be placed if you have questions.

Here are some general guidelines on label placement:

Labels should be placed in the least noticeable location (on the back or bottom of the item and/or packaging), but must be visible and easily located.  The label should be securely attached to the product and/or packaging and be able to withstand handling.  The label must be attached without damaging the product.

For boxed or packaged items - label should be square to edges near a corner

 

 

For round items (i.e. ceramics, glassware, etc.) - label should be centered on the bottom

 

Attaching a Label to a Product

The type of label you attach to a product will depend on the size and type of the product.  A label should be eyecatching, but not detract from the product itself.

Some common ways labels are attached to craft products are:

  1. Stickers with pressure sensitive adhesive
  2. Tied on with string, twine, yarn or raffia
  3. Sewn on to textiles

Which is the right label for your product?

Think about how your product will appear with the label and what the end customer will want to do with the label.  Stickers are a good choice for labeling packaging and products from which they can easily be removed (like ceramics), but can damage some products.  Labels attached with string or twine (often called hangtags) are low-cost and effective and can easily be removed after the product is purchased, but must be added in a way that they do not tear off the product before it reaches the end customer.

 

Good questions to ask when labeling your products are:

  1. Is your label securely attached to the product?
  2. Is it in a eye-catching place that customers will see?
  3. Does it contain the correct information?
  4. Can the words be clearly read?
  5. Does it look attractive?

 

CASE STUDIES

  1. An artisan group in Madagascar shipped raffia bags to the U.S., but did not include a label on each product that said “Made in Madagascar.” U.S. Customs held the bags for five weeks before releasing them to the buyer. The buyer missed selling the bags during the busy holiday season and decided not to buy from the artisan group in the future.
  2. A group received 2 sets of price labels from a buyer. Their Purchase Order stated that one was to be attached to the product and the other was to be attached to the box. The group affixed the label to the box, but not to the vases inside. When they realized the error, they unpacked each of 500 vases to attach the label. They lost many hours unpacking each piece to affix the label.
  3. As part of their marketing strategy, a group developed attractive labels to tie to each of their products. They did not account for the cost of the hangtags in the FOB price of the product. They sold 100,000 products and the labels cost 3 cents each. The group lost $3,000 by not accounting for this cost.

 

RAPID REVIEW

  1. Why is it important to follow government regulations in both your country and the country to which you are exporting?
  2. Explain what you would do if you had questions or concerns about the directions given in a Purchase Order about labeling your products.
  3. What are 3 important considerations when adding a label or hangtag to market your products?

 

Packing & Packaging

Packing and Packaging

Once an order is finished, it is time to prepare it for shipping. The first step is careful packaging and packing of the products to assure they will get to their destination without damages.

Packaging refers to the way products are put inside an out layer of wrapping material either individually or in sets. Packaging protects the product from damage during shipping and can also be the way products are presented to the final customer.

Many buyers like to reuse and conserve original packing materials as much as possible to avoid waste. Items that are packed individually in sturdy boxes help to minimize breakage and the same boxes can often be reused to send the product to the final customer. If items are not packaged in boxes, some kind of protective layer should be used.

Buyers can request specific packaging for their orders.  These requests will normally be outlined in the purchase order. If special packaging is requested, it should be made clear who is responsible for extra costs that may result.

Packing refers to placing the already packaged items into the master cartons for shipping. Cartons are often loaded and unloaded several times during shipping and can be roughly handled, dropped, or exposed to potentially damaging weather. Items that are not properly protected and rub against each other inside the carton can damage the product's finish or cause fibers to break, in the case of baskets. It is the exporter's responsibility to assure that products are properly packed and to cover the cost of adequate packing materials.

Moisture

A common cause of damage to products is moisture. Products made from wood, leather, textiles, bamboo, grasses and other natural fibers should be completely dry before packing to avoid growth of mold and mildew that can damage products. A desiccant such as silica gel can be used to reduce moisture. Cartons being sent by sea shipment are susceptible to weather and moisture.  They should be sealed carefully and covered with clear plastic protective wrap to protect from mildew and water damage

 

Packaging Recommendations for Different Kinds of Products

These recommendations are from the SERRV Producer Partner Manual 2007 and indicate how SERRV prefers different kinds of products be packaged. This is one example. Buyers' preferences will vary.

 

Master Cartons and Packing Lists

Marking the Master Cartons for Shipping

All cartons in a shipment must include the following markings (this also applies to crates or other packing units used):

  • Carton number and the total cartons being sent, for example: 1/25, 2/25 or 1of 25, 2 of 25, etc
  • The carton's weight in kilos and volume in cubic meters
  • The destination port
  • Country of origin
  • The name and address of the buyer (listed as the consignee on the commercial invoice)
  • The name and address of the exporter
  • Other information specified by the buyer, for example: purchase order number, buyer code for product, quantity of each product, name of each item in the carton

Add photo of correctly marked boxes

 

Guidelines for packing items in master cartons:

  • Do not overpack. Cartons should be snug but not too tightly packed.
  • Pack heavier, more durable items in sturdier cartons
  • Do not pack items against the wall of the master carton; provide a layer of cushioning between the products and the box to prevent breakage.
  • Provide a layer of cushioning between products, and fill all empty spaces in the carton.
  • Make the packing list as you pack. For instructions on preparing the packing list, click here.
  • The outer or master carton must be very strong. We recommend a weight of 250 pounds per inch, or tri-wall construction. Use a large size of master carton to minimize rough handling. Lighter cartons can be damaged too easily in transit.
  • For cushioning inside the carton use:
    • Shredded paper
    • Crushed paper
    • Paperboard structures
    • Plastic bubble wrap
    • Air-cushion plastic bags
    • Corrugated fiberboard pad
    • Single-faced corrugated fiberboard
    • Avoid using newspaper unless products are well wrapped in other materials since ink can transfer on to products.

 

From SERRV Producer Partner Manual 2007

 

Preparing the Packing List:

The packing list gives information about the contents of the cartons, where they are being shipped from, and where they are going.  Packing lists for shipments to the USA must be written in English.  The packing list will be used by U.S. Customs when inspecting the shipment, so it is important that it is accurate and contains the following information:

  • The seller's name and address (as it appears on the commercial invoice)
  • The Consignee information (as is appears on the commercial invoice). If the shipment is going to a customs broker (often listed as the notify party) their information should be included here.
  • Information about the packaging materials used (carton, crate, etc), gross weight and measurements of each individual carton, total number of cartons.
  • Contents of each carton: must be listed separately. Include carton number, product code, product description, material content, and quantity per item. The product information stated on the packing list should be the same as the information on the commercial invoice.
  • For ocean freight shipments, the packing list is attached to the original commercial invoice that is given to the broker. Keep a copy for yourself. For other methods of shipping, the packing list should be attached to the outside of carton #1, with a copy of the packing list inside carton #1.

View a sample Packing List

RAPID REVIEW

  1. Explain the difference between packaging and packing.
  2. What packing materials are available in your area?  Make a list. Which of these materials do you think are most effective in protecting products during shipping.
  3. Make a list of the types of products you ship and the value of the product. List next to each product type how you would package it to best protect during shipping.
  4. Use the sample packing list to prepare a packing list of your own

 

Product Certifications

Product Certifications

Certification helps consumers know how a product was produced.  Certification ensures that producers and products meet certain standards.  When products meet those standards, they can display a certification mark, which indicates to customers that the product is in compliance with those standards.

There are fair trade and environmental certifications which may apply to some artisan products, but even more to producers of food products.

Fair Trade Certification

Fair Trade Labeling Organization

FLO InternationalFair Trade Certified products meet Fair Trade standards, including wage, labor, and environmental criteria.  oversees Fair Trade certification worldwide.

Certification is done by an independent international certification company FLO-CERT GMBH, which is responsible for inspection and certification of producer organizations according to Fair Trade standards.

FLO certified products meet a Fair Trade Minimum Price and use a Fair Trade certification mark, which is specific to the country in which a product is marketed.

Fair Trade certification is currently available for bananas, cocoa, coffee, cotton, flowers, fresh fruit, honey, juices, nuts, rice, spices and herbs, sugar, tea, wine, and soccer balls.  Additional products are in the process of receiving Fair Trade certification.

 

World Fair Trade Organization

The World Fair Trade Organization, although not yet a certifying organization, gives global recognition to organizations that are committed to Fair Trade principles. Once an applicant has succes fully met the requirements of the Standards and Monitoring system they become Registered Members. They currently have a network of more than 350 Fair Trade Organizations in 70 countries. WFTO was formerly called IFAT, the International Fair Trade Association, and changed its name in 2009.

 

Organic Certification

Organic Certification applies to food and agricultural products which have met standards in growing, storage, processing, packaging and shipping.  Organic products are produced without the use of conventional chemical pesticides, fertilizers made from synthetic ingredients, and genetically modified organisms.  Generally, organic products must be produced on land that has been free of these contaminants for three years, and must be separated from non-certified organic products at each step of the production chain.

Many regions and countries have Organic Certification programs.  It is important to understand which certification program is right for your organization and the countries to which you export.

Organic products exported to the United States must comply with the standards set by the U.S. Department of Agriculture's National Organic Program (NOP). The NOP also accredits the certifying agents in different countries who inspect organic production and handling operations to certify that they meet USDA standards. A list of accredited certifiers is available on the NOP website.  In addition to being certified organic by an accredited certifying agent, each shipment of organic products requires an Export Certificate in order to be imported into the United States.

Sustainable Wood Certification

As consumers are increasingly concerned about the impact of wood and paper products depleting the world's forests, various certification and production systems for these products have been developed.  Different wood, timber, and paper certification systems adhere to different environmental and social standards.  Many of these systems were developed by or are supported by organizations seeking to preserve the world's forests

One example is Forest Stewardship Council Certification

The Forest Stewardship Council Certification:

More information

If you would like to learn more about certifying your products, visit the websites of the organizations listed above. You can also find more information about different kinds of certifications on the website Buyer Be Fair