In this post, we are giving an overview of the Kuwait as high business potential middle east country. If you are interested to start your own export/import business, find new great business ideas or learn, what products could be exported from Kuwait and to which countries and what are some best business opportunities in this country nowadays. Or if you looking to expand your overseas business and start exporting and finding customers from Kuwait, or why not start importing from there, then we will also cover the topics for you.
Kuwait is a country located in the Middle East, a territory of 17, 820 km2, a population of more than 4 million people (including long-term immigrants), of which the population of native Kuwait is only 45%, GDP income per capita is about 34, 000 USD / person/year.
Besides oil, Kuwait also exports other commodities such as vehicles, fertilizers, cell phones, jewelry parts, precious or clad metal, milk, and cream condensed or added with sugar or other sweetening matter, flour.
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Since the population is mainly muslims, there are some caveats that investors planning to invest in this market need to pay special attention.
As a member of the Gulf Nations Cooperation Council (GCC), Kuwait obliged to implement intra-regional trade liberalization agreements (imports and exports between GCC countries enjoy higher preferences than goods).
Goods imported into Kuwait from countries outside the GCC are usually subject to import duties of 0-5% CIF. The goods imported into Kuwait enjoy a 0% preferential tax rate including food, food, medicine, fresh plants and animals, gold, essential consumer goods, printing materials, and products. Agro-industrial products have a 40% content of production value in GCC, raw materials / semi-finished products, and spare parts for new industries. Goods imported into the GCC only taxed once.
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Kuwait applies a Sponsorship system. Accordingly, foreign businesses wishing to do business in Kuwait must have sponsored by Kuwaiti enterprises or individuals.
In recent years, the Kuwaiti government in its efforts to reform the economy has considered removing the patronage system that is to obstruct business freedom, increase costs and reduce this competition.
According to Kuwaiti law, only enterprises with import licenses from Kuwait Industry and Commerce (KCCI) or import licenses from the Kuwait Ministry of Industry and Trade have the right to import.
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Kuwaiti enterprises can easily apply for this license. Must renewed the Permits annually. Having an import license, the businessman can import without limitation the type, quantity, and origin, except for some special goods such as firearms, explosives, alcoholic beverages, addictive substances, gems … Special permits required from relevant agencies such as the Department of Defense.
Goods entering Kuwait must meet Halal requirements – Islamic quality standards, for example, prohibited foods derived from pigs, or alcoholic materials, depraved cultural products, etc.
Imported as well as domestically produced goods must comply with Kuwaiti technical standards (KSS). In the absence of KSS standards, apply standards for such goods as specified in Gulf Technical Standards (GSS).
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Market research is the collection, systematic analysis of market information (statistics, customer opinions, etc.) to decision-making to find market opportunities for an enterprise’s existing or produce goods and services.
Market research helps find the largest market for your product, the fastest-growing market, market trends and prospects, conditions, business practices, and opportunities for your products on the market.
Commodities with the potential to exports into Kuwait are tea, coffee, dried fruit, canned, canned drinks, fruit juices, cashew, pepper, spices, clothes, furniture, and frankincense , aromatherapy, premium silk, premium pearls, charcoal, marble, white granite …
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Goods imported into Kuwait, to get clearance, need at least 4 types of documents: Commercial Invoice, Certificate of Origin, Official Delivery Order, Packing List.
The invoice, CO, bill of lading must be in 3 originals and must endorse by a chamber of commerce in the exporting country. Normally, if verified by a joint local- Arab chamber will be more valuable and must consular certify (also known as consular legalization) by the Saudi Consulate, or by any Arab country any other (except Iraq).
Information about the foreign country of origin required must show in the packing sheet and must display on each packaging unit (package).
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Developing an online marketing strategy is entirely up to how well you understand your target market and where they spend most of their time online. Depending on your customer base, you may choose to use any (or all) of these ways of marketing:
– Search Engine Optimization (SEO is search engine optimization to help the website get a naturally high ranking on search results. SEO is one of the basic forms of Online Marketing to help a website get natural traffic for stable and long-term growth)
– Email Marketing: marketing through email. It is one of the highly personal forms of Online Marketing because you reach out to each customer individually.
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– Display Ads: Display ads on a website (you pay for another website to advertise your banner, or you do advertising on Youtube).
Marketing Online allows you to reach a large customers in seconds. As long as you have a computer online, you can reach millions of people at the same time without any geographic or time constraints.
When signing a contract, the more information a business can get from its partner is the better. Especially information about the legal, financial capacity of the partner.
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If they do not have the capacity but still sign the contract, the possibility of them breaching the contract is very high. Or before signing a contract, it is necessary to find out the partner’s information through some diplomatic representative lawyers
In addition to the above main terms, depending on each transaction, the contract may further stipulate one or more of the following terms:
3.1. Penalties for breach of contract for failure to perform or improper performance of the contract: delayed delivery, delayed notice of delivery, delayed payment, delayed notice of train (in case of purchase and sale under FOB terms), lack of delivery, or no delivery, etc.
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4.2 Choosing arbitration: should choose the form of statutory arbitration, ie a standing arbitration organization, an intermediary, established specializing in adjudicating foreign trade disputes.
The difference that makes the freight difference between sea and air freight mainly comes from speed. Airfreight typically ranges from a few to 10 days, including airport hold times, flight routing and waiting times available, and handling at origin and destination. Sea freight depends on the distance and available services, ranging from one week to 70 days.
The cost of shipping sea air is not as cheap as sea cargo, but it is cheaper than air cargo. Transit time is also faster than by sea but slower than by air.
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To import goods yourself, or even just one shipment from Kuwait to your home country, you must first have a business license to import those goods. In case you do not have an import license, you can go through the import companies, customs services, or customs agents to sign a contract to import that item. Make sure you meet the legal documents to import.
When you import goods by yourself, you need to find the source of the goods in Kuwait, then sign a foreign trade contract. The contract will specify the method of international payment as well as documents required for delivering the goods.
The supplier is hugely important in your import business. The supplier must ensure to provide sufficient quantity, stability, accuracy goods which meet the requirements of production and business.
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So you need to spend time researching and selecting suppliers carefully. You can rely on objective reviews of previous customers, or go directly to the product review site.
First of all, it is necessary to collect secondary information: reports on purchasing and supply analysis in enterprises, information in media (newspapers, magazines, social networks, …) through supplier promotion information.
Classifying suppliers according to the criteria, such as economic sectors, location in distribution channels, technology level. Each type of supplier according to classification methods will give the most characteristics to evaluate.
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Ordering is an offer to sign a commercial contract from the buyer. In the order, the buyer specifies the goods to purchase and all the necessary contents for the contract.
People only place orders with regular customers, or the two sides have signed long-term contracts and multiple delivery agreements. As for other conditions, the two parties apply according to the contracts signed in the previous transaction.
If the exporter or service company FWD neglects or does not update you, you must actively ask them to update you regularly to grasp the progress of your order.
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The goods importer needs to understand the value of the business to decide whether to buy insurance because this is an optional element.
In many cases, imported goods have arrived, but documents and certificates related to the shipment have not completed. It causes a delay in shipments, time-consuming and costly.
In international payment, you need to prepare documents by the stated contract. For example, in the contract that says the full payment term of 100% after receiving a copy of BL, invoice, packing list, you must have all the papers …
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If you do not have a lot of capital or are reluctant to risk then consult these new import/export ideas, maybe this is a little exercise before
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