Compliance Expansion in Southeast Asian Markets

Specializing in the export of rubber and plastic additives, the enterprise encountered multiple difficulties when attempting to expand into the Southeast Asian market in 2020 due to unfamiliarity with local compliance policies: The first batch of goods was detained because the MSDS documents did not meet ASEAN standards, and subsequent products failed to enter the Indonesian market due to incomplete raw material composition registration, resulting in direct losses exceeding 2 million yuan. To break cross-border trade barriers, the enterprise launched a compliance system construction project: A professional compliance team was set up to deeply interpret chemical product access policies of Southeast Asian countries (such as Indonesian SNI standards and Malaysian MSDS certification requirements), sorting out prohibitive clauses and restrictive indicators (such as heavy metal thresholds for some rubber and plastic additives). Customized compliance document templates were developed for different target markets, including internationally standardized MSDS, component analysis reports, certificates of origin, and product manuals in local languages, ensuring document information accurately met policy requirements. Strategic cooperation was established with professional customs clearance agencies at major Southeast Asian ports (Jakarta, Port Klang), communicating declaration processes and inspection priorities in advance, and quickly responding to document supplement and component explanation needs during customs clearance. Meanwhile, cross-border logistics solutions were optimized, selecting logistics enterprises with hazardous chemical transportation qualifications, formulating transportation routes avoiding prohibited roads, and configuring transportation insurance to mitigate logistics risks. After the improvement of the compliance system, the enterprise’s customs clearance cycle was shortened from an average of 21 days to 7 days, and the detention rate dropped from 28% to 3%. It successfully entered 6 Southeast Asian markets including Indonesia, Malaysia, and Thailand, with sales in Southeast Asia accounting for 35% of total revenue in 2023, becoming the core growth driver of the enterprise.

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