A basic process to exporting for beginners

You are fresher in export area and don’t have exactly knowledge about basic process to exporting.

Through this article, Indochina post will provide an overview knowledge.

What is export?

Exports are goods and services that are produced in one country and sold to buyers in another. Exports, along with imports, make up international trade. Instead of confining itself within its geographical borders, countries often intentionally seek external markets around the world for commerce, allowing greater revenue and transactional opportunities.

Overview of the export process

The basic export process will include the following steps:

Negotiate and sign contracts.

Before signing a contract, businesses will prepare carefully for the transaction. Accordingly, it is necessary to study the market, make a suitable business plan, and find out methods to check and calculate the price of imported and exported goods. This is an extremely important step to help businesses reduce the risks that may occur when exporting goods. Next, both sides need to sit down and negotiate together the requirements and contents of the import-export transaction. Some important information in the contract to be negotiated includes the following:

• Regulations on packaging of goods
• Price
• Payments
• Delivery
• Service fees
• Promotion
• Complain
• Delivery

After the exporter and importer negotiate, discuss and exchange terms with each other, if both agree, they will proceed to sign an export contract. 

Apply for an export license

According to regulations, for goods exported under permits and conditions, it is necessary to make a dossier of an application for a license. 

Prepare for export

The exporter collects it and packs it into an export shipment. Then pack the goods in accordance with regulations and ensure that the goods are always safe, intact, and not damaged during transportation. In addition, note that on the packaging it is necessary to include the mark of the export product.

Check the quality of the goods

For export inspection and quarantine, it will be conducted at two levels: at the establishment and at the border gate. The transport agency and the importer will be responsible for checking the quality of the goods.

Buy cargo insurance

Transporting export goods often involves risks and losses, so buying insurance for exported goods is the best way to ensure the safety of exported goods during transportation. Enterprises can buy insurance for their exported goods from insurance companies.

Types of insurance that businesses can consider buying:

Institute cargo clauses A: risk insurance.

Institute cargo clauses B: private loss insurance.

Institute cargo clauses C: separate loss coverage

The selection of insurance conditions is based on the following criteria:

the terms stated in the contract, the nature of the goods, the nature of packaging and loading, and the type of ship.

Rent a means of transport

If exporting under D condition, the exporting unit will be responsible for the transportation of goods. So now businesses will need to hire a shipping service company to do the necessary steps in the door-to-door delivery process. A carrier is usually a forwarder or agent.

Customs procedures

This is a mandatory rule for any type of goods, and this work is carried out in three steps:

Customs declaration: the goods owner is responsible for declaring the full details of the goods honestly and accurately on a declaration for inspection by the agency.

Contents include: type of goods; goods name; quantity; value of goods; means of goods; importing country. The customs declaration is presented with a number of other papers, such as the export contract, license, and packing invoice.

Presentation of goods: export goods must be arranged in an orderly manner convenient for control. Implementation of customs decisions: this is the final job in the process of completing customs procedures.

Delivery

During the negotiation process, the enterprise will finalize the delivery of goods by sea or by air and under what Incoterms terms. Depending on the shipping method, the enterprise will prepare all documents to deliver to the importer.

International payments

There are currently a number of basic international payment methods. Each method will have different levels of security and different costs. Choosing the other depends on your relationship with your counterparty, on your relationship with your counterparty, on the risk of the transaction.

• Remittance 
• Letter of Credit (L/C) 
• Open account
• Collection 
• Guarantee and standby credit.

Complaints and the settlement of complaints (if any).

During the performance of the export contract, if there is a dispute, either party can complain to arbitration. In cases of necessity, it can be brought to court. Complaints must be carried out carefully, meticulously, in a timely manner, and accompanied by documents.

Hopefully, through this article, you will have a better overview of the process of exporting goods. In addition, Indochina receives international shipping cheaply and quickly!

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