How does import and export work?

What does the import and export of merchandise consist of?

Foreign trade has become a great business opportunity for logistics companies. In addition, the importance of importing and exporting products internationally has been growing.

However, do we know what exactly it is? Thanks to the rise of freight transport international level, online sales techniques are changing. This offers a new formula for foreign trade that requires a different form of investment from 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 movement, but depending on the term it means one thing or another:

• Export: It refers to the shipment of goods outside the national territory to a foreign territory.
• Import: It refers to “within”, that is, it refers to bringing merchandise from foreign territory to national territory.

What is the difference between import and export?

In an international buying and selling activity, two parties are involved: buyer (importer) and seller (exporter).

Both parties are linked to each other through a contract by which they have to deliver a material or object in exchange for a certain amount of money.

Who is who? The buyer is obliged to satisfy the economic consideration through the agreement reached before the exchange of goods. In exchange, he receives from the seller the desired merchandise, which is indicated in the initial contract established by both parties.

What requirements are there for the import and export of products?

These types of operations are established under a contract since they are located under different countries or borders and in order 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 delivery conditions
• Export: Merchandise leaves the country.
• Goods are transported until they reach the border of the destination country
• Import: Merchandise crosses the border and the buyer or the destination receives it.

How to create an import and export company?

To create an import and export company, regardless of which country wants to do it, I must 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 manner.

In these cases, not only do we have to add production, but we also have to offer the customer quality and added value such as quality/price, adaptability...

Potential and demand

It is important that we know the merchandise that we are going to sell internationally, the documents that are needed for its export, etc.…

You also have to know the demand for said product in the countries where it will be exported, the transportation alternatives in case something happens during the trip, etc.…

Cost simulation

Before starting an international trip, you must simulate all the possible costs that it may have, since you must make a calculation of the export of the product and the sales price.

At this point, before starting the export, they should simulate the possible costs of the trip, evaluate the possible alliances in the distribution channels to see how greater profits would be obtained in said export and in the negotiation channel.

Sell

Not only should you focus on price, but a small or medium-sized business should focus on competing through good service and quality rather than price.

Is the import and export of products under the protection of any Law?

The import and export of products is under the protection of the Law 53/2007,, of December 28, on the control of foreign trade in defense and dual-use material. In many cases it is necessary to fill out a DUA in order to perform the service.

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