There are customs clearance charges, transportation costs, customs

There are many challenges in exporting goods. One of the challenges faced in exporting goods is the royalty rate imposed on goods such as timber. Royalty rates have been raised in 2010. The government has increased the royalty rate to increase the amount of revenue collection. This has caused a lot of loss to logging companies to produce products from logs. Each type of timber has different grades and royalty is subject to freed logging.
Other than that, the other challenges faced are transport costs. The transportation cost for the results is very expensive. This is because logs need to use cargo vessels to export abroad. Only special cargo vessels are only used to transport in bulk. This service should be booked and should be in accordance with their schedule. If the product is delivered late it will hurt the company and affect the image of the company.
Other challenges in exporting goods are quota systems and trade relationships with other countries. Relations with every country are very important. Malaysia needs to maintain good relations with all countries. If there are restrictions such as quota of goods and the country’s quota it cannot benefit the company. This has proved that restrictions on goods to enter into a country become a smooth factor in the export process.
Furthermore, the challenges faced in the export of goods are, the additional costs imposed on goods. Additional costs have hurt the company. There are many additional costs involved during the export process. Among the additional costs incurred in the goods exporters are customs clearance charges, transportation costs, customs duties, port fees and bank charges.
Finally, the challenge in export is the uncertainty of the current global economy. This is especially true for the growth of some of the major markets such as the Europe. It has been difficult for local businesses to export their products. Global economic uncertainty is a factor in the fall of the ringgit. The ringgit’s downfall has been detrimental to Malaysia for export to foreign countries and greatly benefiting the outside world.

x

Hi!
I'm Owen!

Would you like to get a custom essay? How about receiving a customized one?

Check it out