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Managing risks associated with manufactured products

Listed below are just some of the issues to consider relating to risk and liability when exporting manufactured goods.

This does not constitute legal advice. When entering into commercial agreements you need to be aware that there will be potential legal issues and you are advised to seek specialised legal advice.

  • Product design and compatibility. Does it comply with industry, environmental, government, product compatibility and other required standards ?
  • Product testing and certification. What mistakes could a customer make? What is the potential for harm? Brainstorm possible ‘what if?’ scenarios with your staff.
  • Safety audit. Third party testing of your product can be useful to help you meet international standards or complete certification procedures.
  • Marketing and promotion. Have you cut out any over-hyped features? Will the product deliver what you promise? Do you emphasise the safety features? Is your packaging environmentally responsible? Can the product or its components be recycled? Do you accept ‘cradle to grave’ responsibility for the product and has it been produced in an environmentally and socially responsible manner? International legislation and growing consumer demand make this mandatory in some markets if you wish to compete successfully.
  • Manuals. Do your manuals cover safer usage, care and maintenance, hazards and even warnings on plastic bags?
  • Installation and service manuals. Do you require authorised installers for the warranty to apply? Training?
  • Warranty and product support. How will you provide this? Does your warranty meet the requirements of local consumer protection laws?
  • Tracking. Are you able to track the products (for example through embedded chips or serial numbers) for possible product recalls?
  • Training. Will you provide necessary training for distributors, resellers and customers?
  • Market assessment. Finally you might want to assess the market. Is it simply too risky? For example, lawsuits are common in the US. Can you get liability and indemnity insurance cover and can you get it an affordable price?

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