The questions of what is export and how to do it have come up a lot lately. With exports, the service or product is sold to foreign countries from the country of origin, thus bringing foreign currency to the country. The clearest answer to the question of what is it is to sell or send products and services produced in one country to another country with the aim of selling.
This process includes customs clearance, logistics, marketing and many other sectors and employees. The development of the sale of goods abroad both develops these sectors and makes great contributions to the country’s economy. Turkey is also working on this issue.
According to the 2020 Turkish Exporters Assembly, the figures on the last sectoral basis in Turkey are $167,090,837.
After understanding the importance of increasing the sales figures abroad, the answer to the question of how to do it, for example; In order for a product that is ready for sale and has stocks to enter a market abroad, a production company in Turkey needs to find a market (market) where you can sell suitable for the product. After an agreement is reached with the company that receives your products, you determine the mode of transportation according to INCOTERMS 2020 by choosing a suitable transportation mode according to the product G-TYPE and to the country of destination.
What Documents Are Needed When Exporting?
After the answer to the question of what is an export, detailed answers to the question of how it is done and the Export Certificate are in this section. The following documents may differ in many ways in Turkey and in the world. You should follow the exporter associations.
- Customs declaration
- Commercial Invoice (Commercial Invoice), Proforma Invoice (Proforma Invoice-p/i), Original Invoice, Freight Invoice (Freight Invoice), Legalized Invoice (Certified Invoice), Special Invoice (Exception Document), Detailed Invoice,
- Certificate of Origin
- A.TR Movement Certificate
- EUR.1 Movement Certificate (EUR.1 Movement Certificate)
- Suppliers’ Declaration
- EUR-MED Movement Certificate (EUR-MED Movement Certificate)
- ATA Carnet
- Inspection Certificate
- Insurance Documents
- Insurance Policy
- Bill of Lading, Transport Documents, CMR (Convention Marchandise Routier) document
- Packing List (Weight Note)
What is an Export Contract? What Does It Contain?
The export contract is the proof of sale abroad. Care should be taken to prepare the contract carefully and without attachments for commercial transactions. There may be differences in the export according to the countries and institutions, so these contracts have made regulations that are accepted in the world with the UN and ICC (International Chamber of Commerce) authorities and these regulations are specified by the rules. Contracts are the content of the product, which is the subject of purchase and sale; The type, type, quality, product ADR, net, gross and tare weight of the goods must be specified. Content is not limited to these only. The applied INCOTERMS includes the price, how the payment will be made, the place and time of delivery of the goods. According to these contents, the rights of the buyer and seller are protected.
What is Micro Export? How is it done?
The answer to the questions of what is micro-export and how it is done is carried out with micro, where goods and services originating from Turkey are less than 300 kilograms and the invoice amount excluding VAT is less than 15.000 Euros. Therefore, micro exporters can easily carry out their activities without the need for a customs consultant and by minimizing bureaucracy. The answer to the question of how it is done is to use the cost and time in the best way by preparing an electronic commerce customs declaration for international sales under 15,000 Euros. Many institutions can arrange ETGB, the main ones being PTT, UPS and DHL. SMEs can easily enter foreign markets with micro issuance. While issuing these documents, you can send them in Turkish and English via the courier company they want to work with.
What is the Difference Between Import and Export?
We have given the answer to the question of what is export and how it is done. The sale of goods abroad, for example, is the transfer of goods and services originating from Turkey to markets abroad. The product entering the market brings foreign currency to Turkey and the country of origin of the product. What is import and how it is done, is that the services and products produced abroad pass the customs clearance and logistics processes to Turkey and mix with the market and affect the current figures. More importantly than how export and import are structures, both balance the economy of the country and the figures, so the balance of these figures should be maintained while countries are driving or exporting goods and services to the country’s market. The difference is that while importing goods and services from a country to the market, the stocked product produced in the export source country is sold to another country.
What is Market Research in Export? How is it done?
Along with the answers to how and what is export, what is market research and how to do it are among the questions that are wondered. After determining the type of product, market research is about how you will position the product in which country. In addition, since you will choose the market for your product according to the competitive environment, you can follow the market entry announcements on Ticaret.gov.tr. For those who will make it from Turkey, you can look at your product’s target and priority products category. You can review free trade agreements and trade policies and choose the one that suits your product and market.
By measuring the potential of the market, you can sell your products and services with maximum profit.
The rankings of research at market entry are as follows.
- Classification of the Product
- Identification of Information Sources
- Classification of Data
- Creating the Database
What is E-Export? How is it done?
What is e-export and how it is done is one of the frequently asked questions. It is the use of the internet when taking products and services abroad, that is, you can sell products and services abroad with the permissions given by digital channels, which is the answer to the question. Digital abroad sales, which is a profitable business model in terms of numbers, creates a great opportunity for the entrepreneurs of countries and makes it easier for companies to reach abroad. In this way, companies in Turkey and in the world can work globally. They can provide foreign exchange flow to their countries with the movement from the local to the world. How it is done, this form of trade is done within the scope of ETGB. Websites that carry out commercial activities in Turkey should make an agreement with the distributors of the markets they will enter in another country. They still face the costs of filing e-export declarations and arranging checklists, but these costs are not included in the customs process.
What is Consignment Export? Where to apply?
The answers to the questions of what consignment export is and how it is done are wondered. The answer to what is consignment export is the overseas activity whose final sale is not made when the goods are sent. In other words, consignment is the sending of the goods to the brokers, the branches or representative offices of the sales person before the final sale. How to do and where to answer the question; Consignment applications are made to the General Secretariat of the relevant Exporters’ Associations. Afterwards, the final sale of the product should be made within a maximum of one year, through the feedback document from the union in Turkey. In case of application, the final sale period of the goods can be extended for two years by the exporters’ associations in Turkey. It is not subject to VAT for the product that has not been definitively sold yet.
2020 Export Figures
According to the figures announced by the Turkish Ministry of Trade, October 2020 Foreign Trade, Trade, Tradesmen and Cooperative figures increased by 5.6% and import figures increased by 8.5%. When the increase in these figures is compared with the figures of October 2019; Exports increased by 5.6% to 17 billion 333 million dollars, imports increased by 8.5% to 19 billion 729 million dollars, and the ratio of exports to imports was 87.9%.
In addition, TurkStat Foreign Trade Indices for Turkey, October 2020 figures, states that “Export unit value index increased by 0.6% in October compared to the same month of the previous year.” The next update with this index will be in January 2021.
What is Advance Export?
When looking for the answers of what is a cash export and how to do it, the answer to the question of what is the advance payment is the payment of the product sales amount by the buyer before the sales activity abroad. How it is done, the product sold abroad collects the amount of the product in cooperation with the bank and in return receives a foreign currency purchase slip from the bank. The foreign exchange purchase slip must be approved by the customs. It must be done with an export certificate within 18 months from the date of DAB. In addition, if the institution or person is required to receive the payment in cash to Turkey, therefore, the person must obtain a foreign currency declaration report from the customs. Since this document has the approval of the customs, the DAB is considered invalid in the absence of approval.
What is Foreign Trade Deficit?
Foreign trade deficit signals the need for countries to balance their foreign trade activities, which causes a deficit in the current figures of the countries. When foreign sales figures and import figures balance each other, national economies develop. For example, if the sales activities abroad exceed imports in Turkey, the country’s financial welfare improves.
In order to achieve this prosperity, countries should support domestic production and increase their work. Again, when the balance is not ensured, the necessary balances of foreign trade can be achieved by aggravating the process with some trade barriers by the economy and trade authorities. The reasons for the formation of foreign trade deficit in Turkey; the low domestic production, the implementation of policies that will be foreign-dependent, and the underutilization of its geographical richness. When these problems are resolved, current balances are achieved.
What is the Difference Between Export and E-Export?
There are sanctions and obligations that must be followed in classical foreign trade. These obligations are arranged in accordance with the logistics requirements of tax payers, manufacturers and suppliers. The rules set by international agreements constitute binding elements. In customs processes, this binding takes time as cost and transaction burden. In e-export, you can issue VAT-free invoices to your overseas customers after online sales are made, and you can make the sale by issuing ETGB. You carry this sale after contracting with various companies and trading with less liability. It differs from the classical one in that it has less cost and liability during payment method and customs clearance. Due to its cost and advantage, digital commerce contributes to the country’s economy.