What is the import and export of goods?
International trade has become a great business opportunity for logistics companies. Furthermore, the importance of importing and exporting products on an international scale has been growing.
However, do we know exactly what it involves? Thanks to the rise of international freight transportation, online sales techniques are changing.” This offers a new form of foreign trade that requires a different form of investment compared to the conventional one.
What does import and export mean?
In both cases it refers to the movement of a commodity that is, therefore, subject to displacement, but depending on the term it means one thing or another:
- Export: Refers to the shipment of goods out of the national territory to a foreign territory.
- Import: Refers to “inside”, i.e., it refers to bringing merchandise from foreign territory into national territory.
What is the difference between import and export?
An international sale and purchase activity involves two parties: buyer (importer) and seller (exporter).
Both parties are bound to each other by means of a contract whereby they must deliver a material or object in exchange for a certain amount of money.
Who is who? The buyer is obliged to satisfy the financial consideration by means of the agreement reached prior to the exchange of goods. In return, he receives from the seller the desired goods, which are indicated in the initial contract established by both parties.
What are the requirements for importing and exporting products?
This type of operations are established under a contract since they are under different countries or borders and in order to be able to carry out a satisfactory import and export of the merchandise we must leave it reflected in a contract prior to the trip.
How should we do it?
- Signing of the contract with terms of delivery
- Export: Merchandise leaves the country.
- Goods are transported until they reach the border of the destination country
- Import: Merchandise crosses the border and is received by the buyer or destination.
How to create an import-export company?
To create an import and export company, regardless of which country I want to do it, I must follow some steps to create an international business.
What are we going to export?
We must select a product to know that we are going to export internationally and focus on its production in a continuous and stable way.
In these cases, it is not only necessary to add production, but also to offer the customer quality and added value such as quality/price, adaptability…
Potential and demand
It is important that we know the goods we are going to sell internationally, the documents required for export, etc…..
It is also necessary to know the demand for the product in the countries to which it will be exported, transportation alternatives in case something happens during the trip, etc…..
Cost simulation
Before starting an international trip, it is necessary to simulate all the possible costs that this may have, since it is necessary to make a calculation of the export of the product and the selling price.
At this point, before starting the export, the possible costs of the trip should be simulated, and the possible alliances in the distribution channels should be evaluated to see how to obtain greater profits in the export and in the negotiation channel.
Sell
Not only should you focus on price, but a small or medium-sized company should focus on competing through good service and quality rather than price.
Is the import and export of products covered by any law?
The import and export of goods is covered by Law 53/2007, of 28 December, on the control of foreign trade in defence and dual-use equipment. In many occasions it is necessary to fill out a DUA in order to perform the service.
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