Should we avoid shipping to Russia and only sell on ex-works due to customs difficulties i.e. clearing customs.

Question

Should we avoid shipping to Russia and only sell on ex-works due to customs difficulties i.e. clearing customs.

This question was asked as part of our webinar on Russia which can be found at:

http://opentoexport.com/webinars/beyond-the-eu-russia/

Answer

Hi Conrad
most successful exporting companies i have worked with either work with Ex- Works or FOB/FCA for everybody.

To promise anything more, especially outside of today’s EU, means that you pick up all the costs, all the headaches and all the risk.

If Russian companies buy from China or USA they are used to ex works or Fob .
Gilio
www.exportadvisory.com

Answer

It depends on the sector but on the whole, I disagree with Gilio.

If you are selling a unique engineered design of very high value then you might expect to sell ex-works or FCA in your own country.

If you are selling consumer goods or even manufacturing consumables then you may expect to sell on CIF or even FCA within Russia terms. The Chinese do sell EXW but their prices are extremely low. If you sell without a service component, such as local delivery, you are compelled to match the Chinese on price.

Volga Trader has subscription to a Russian database that lists literally every shipment in and out of Russia. For any particular product we can advise you on the usual terms in that industry. In fact, we can advise you on the identity of every importer, their suppliers, the quantity shipped and the prices charged. The software we have to extract this information is unique to us.

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