What is the Export ?
What is Export? Who Can Be an Exporters?
Although export is conceptually expressed as taking something out, as a foreign trade term, it means the sale of products or services to buyers in different countries. In order for a transaction to be considered as an export, the production of the sold product must be made in that country. Every foreign sales realized within this scope can be considered as an export transaction.
Although sales are generally carried out in foreign currency in issuance practices, it is known that barter practices also occur from time to time. For this reason, it should be said that the sale is not only for a certain currency. This concept, which passes through Arabic to Turkish, may be confused with imports from time to time. In this case, we can say that the Export expression is also in question from time to time.
How Are Export Transactions Made?
How the export process, which can be expressed as the sale of a good or service to foreign countries, is one of the most curious issues. If you want to be an exporter, all you have to do is take a look at how the process progresses.
Export processes, which constitute the main item in a country’s income, can be expressed as the opposite of imports. In other words, the buyer of a transaction for which you are a seller is considered an importer. These processes, which are one of the most valuable options in foreign trade balance, must be managed meticulously. During the process, while the follow-up of the transactions and the delivery of documents should be done without delay, the production tools are also strengthened. It is necessary to closely examine the export transactions with different types according to their types.
What are the Types of Export?
Export types refer to the basic method that a producer will prefer in sales to foreign countries. Although the export transaction generally means selling products to foreign countries, it should be stated that not every product sale is evaluated in the same scope. Here are the types of transactions you will encounter during export!
Free export or export that is known as non-specific export; It is a product sales process that does not require any permission. Many companies that perform export operations in Turkey makes selling products in this context. It is among the easiest and most common processes.
Export Based On Permission
It is the export transactions that take place when the products to be sold are strategic or considered very valuable at the borders of the country. In such transactions, permission must be obtained from the relevant unit before the process is initiated. Otherwise, the sale is out of the question.
The List of Registered Goods published by the Undersecretariat of Foreign Trade every year aims to control the sale of certain products. In this context, Registered Issuance procedures are applied for a product sold. The Customs Declaration regarding the product is approved by the Exporter Union Secretariat and notified to the relevant customs administration within 30 working days.
Credit export transactions are actually the equivalent of the letter of credit concept, which is mostly used in foreign trade. The payment of the product or goods to be sold is made within a certain plan. In credit export transactions, the letter of credit must be approved by the General Secretariat of the Exporters Union. Foreign trade transactions are diversified with the sales that will take place after the permission.
In this form of sale, which derives from the Consignee concept seen in foreign trade documents, the sale of the product takes place on a date after the dispatch date. After obtaining permission from the relevant unit and the ministry, the sale of products sent to overseas dealers or branches may not be immediately realized. These products, which must be sold within 1 year from the date of shipment, must be withdrawn if they cannot be sold after 1 year. Revocation is possible within the framework of these transactions that must be done in accordance with the Customs Legislation.
Exporting Imported Goods
Products purchased from a foreign country and sold abroad after a certain period of time can be considered within this scope. Inward Processing Regime can also be counted in this context. In the export of imported products, the products must first be nationalized and then resold. Otherwise, there is no question of this process.
As can be understood from the name, it is the export transactions carried out without any fee for the product. Sample or spare parts that are sent within the warranty period are examples of free export. It is necessary to take into account the products that are prohibited to be exported related to the export transactions carried out free of charge. Because these products are not sent free of charge.
Export by Barter
In the exchange between the two countries, it is the trade that is in question in the payment of the value with another good instead of using money. This export method is the most important. The detail product price can be covered by another product completely or partially.
It means the direct sale of the trade between two countries by organizing by a third country. Since the purpose of transit trade is to create a favorable profit, it is considered within the scope of exports. In this type of trade, the sale of products forbidden to import and export is out of question.
It is a type of trade that takes place in the border regions and plays an important role in the development of the region. In this trade carried out by companies located in the border province, it is necessary to obtain a special permit with a Border Trade Certificate from the Governorship.
How to Become an Exporter?
In order for a good or product to be sold to foreign countries, certain conditions must be met. If you cannot meet these conditions, it will not be possible to sell products as an exporter. The elements that the exporter should have are listed below.
Exporters’ Association Membership
You must be registered with the Exporters Union of your province. It does not matter whether you are a sole proprietorship or a capital company. If your aim is to sell products abroad, you should register as soon as possible.
Access to the Foreign Market
Once you are authorized to export, you need to discover a market in which to market your product. Although there are buyers in many countries of the world who will be interested in your product, it is very difficult to find these buyers. With a correct market analysis, you can take successful steps in becoming an exporter.
Sales and Sales Agreement
You must also sell in order to gain the qualification of an exporter. After contacting one of the potential customers you find and marketing your product, it means that you have gained the export qualification in full. In this case, all you need to do is make moves that will increase your market share.
What are the Export Documents?
While there are special cases to be considered in issue transactions, the most valuable issue is the arrangement of documents in issue transactions. An error with the documentation can cause the process to be interrupted.
Invoice – Commercial Invoice: Invoice (Turkish) and Commercial Invoice (English) are issued in 2 ways. This document showing the type and price of the goods must contain correct information.
Certificate of Origin – Certificate of Origin: Indicates the country of origin of the product.
Packing List – Packing List: Weights and dimensions of the products are shown. It should be prepared in 2 languages, Turkish and English.
Bill of Lading Instruction: It is an instruction sent to the shipping company that contains information about the products. This instruction must include the delivery address.
Bill of Lading – CMR – AWB: It is the transport document issued by the shipping company. CMR by road, Bill of Lading by sea and AWB by airline.
You should examine all the details regarding these documents and avoid mistakes. Otherwise, it will be inevitable that you will have problems in export.