Exporting risk

 Risk about condition of the container

Cause: the temperature and the humidity can cause the damage to the Fruit

Solution: Storing fruits in cool-air container to keep the dragon fruit fresh and on stable condition,
unless it may be rotten because of temperature and moisture

 Risk about the product quantity and market price

Cause: Products exported to Taiwan may have surplus or shortage

Solution: Suppose, the product is in excess, then we will negotiate the excess selling price based on the
market price or the price in the contract. If the market price rises, the exporter makes a profit, and if it
falls, the exporter loses.

 Risk about damaged of goods during the transportation

Cause: During the transportation of goods, there will be some unexpected accidents that cause damage
to the goods and because of using FOB, we have 2 parts of shipping

 Part 1: From seller warehouse to the loading port.

 Part 2: From loading port to unloading one and then transfers to the buyer.

Solution: If the goods are damaged, there are 2 choices of solving this problem.

1. Compensation
 Shipping from seller warehouse to the port: the seller must take the responsibility
 Shipping from loading port to unloading one and then transfers to the buyer: the buyer must
take the responsibility
2. Negotiation
 If the damaged products are caused by case of force majeure, then both sides can negotiate to
make the final deal or decision about that problem.

Importing risk

 The changing of import policies

Cause: During the time of preparing document and shipment, the government of import country can
change the import policy, this can cause the problems: the goods may stuck at the port, then cause the
lost for the importers and exporters.

Solution: Depending on which types of policies they are changing since this is about legal system. There
will be two solutions: Negotiation and Following their policy.