Let’s answer the questions of what is export and how to do it before we move on to micro-export. Export is the sale of goods and goods outside the country, that is, foreign trade. So what is micro export? Exports with a maximum weight of 300 kg and an invoice amount of up to 15,000 Euros excluding VAT are called micro exports. Micro export is also called as paid exports abroad with ETGB (Electronic Trade Customs Declaration). In this article, we will share the answers to questions such as what micro export means, how it is done and why it is preferred.
One of the most advantageous features of this type is that you have the opportunity to export without the need for a customs consultant and with less bureaucracy. To briefly touch on the how-to point, you can easily export products with a financial value of 15,000 Euros or less without the need for a traditional customs consultant. In this way, you can both make a profit and trade in an advantageous way. It is a type of export that provides convenience to SMEs and individual traders and is more preferred than traditional exports.
How to Micro Export?
After the answer to the question of what micro export means, our second question is how is micro export done? Import and export processes are extremely advantageous but also require long processes and documents. First of all, let’s explain how traditional export is done. Customs consultancy services should be used in traditional exports. These processes are both cumbersome and costly. How is this process done in micro export? In micro-exports, you can send products or goods with a value of less than 15,000 Euros to foreign countries through institutions that are authorized to issue electronic commerce customs declarations, and in this way, you can save a significant amount of time and money.
What kind of logistics you want to choose when micro-exporting is also an important issue. Different procedures are applied in all transportation lines, including air, sea, road and railway. When we look at what are intermediary companies for micro export, we come across companies such as PTT, UPS, DHL, FedEx. Many institutions prepare customs declaration + and export e-invoice for electronic commerce, e-export and e-import. Especially if you are an SME, micro export is for you. For SMEs, traditional exports can often be too cumbersome and costly. When you think that you are big enough to go abroad, it is very logical to embark on an export adventure by giving a chance to micro export. This type of export can be a key point in your company’s growth.
What are the Documents Required for Micro Export?
While answering the questions of how micro-export is made and what documents are required for micro-export, it is necessary to master the procedures between the two countries to which the export will be made. For example, ETGB is issued for the goods included in the export regime with a maximum of 7.500 Euro per shipment by road cargo transportation between the TRNC and Turkey. This situation and the requested documents may vary according to other countries.
Although it is an extremely easy and advantageous type of export for SMEs and small businesses, there are also documents required for micro export. What official documents are required for micro-export?
Documents required for micro export in general terms;
- Indirect representation authorization certificate
- Micro export shipment information form
- Finance approved original Turkish invoice or e-archive invoice
- English invoice or proforma
- Copy of Bill of Lading
- It can be listed as an ATR document.
What is ETGB? How to Query?
There are various points that need to be considered in exporting and importing. One of them can be expressed as ETGB (Electronic Trade Customs Declaration). What is ETGB and how to query ETGB? ETGB (Electronic Trade Customs Declaration) is a system that is used in the customs process of incoming and outgoing goods via ladles or fast cargo transportation, which is intended to be transported by air or road, and that allows all transactions related to customs declaration to be carried out electronically. In this system, you can quickly handle customs procedures without the need for any paper printouts.
ETGB (Electronic Commerce Customs Declaration) declaration can be made by authorized fast cargo operators other than buyers and senders. Within the scope of the Electronic Commerce Customs Declaration (ETGB) application, the costs of exporting micro-scale exports for customs declaration are reduced, it is ensured that they export and get tax refunds easily. ETGB inquiries are made over the internet.
Advantages of Micro Export for SMEs
What are the advantages of micro export? First of all, it saves time thanks to the ability to perform all transactions electronically. While making e-export and e-import easier, it allows you to switch to the e-invoice period. It makes it easier for you to get a VAT refund. Products reach their buyers easily. Ease of customs procedures. You get weekend shipping. You do not need exporter association approval for export. When we look at what these advantages are for SMEs;
- Thanks to micro imports, SMEs do not need to pay customs consultancy and warehouse fees.
- There is no power of attorney requirement.
- It enables SMEs and individual exporters to be more profitable in accounting.
- It allows you to save time by reducing paperwork.
- It allows the company to receive a VAT discount on its shipments.
- It also allows sending on weekends.
- It allows the buyers to reach the products more easily.
- No exporter association approval is required.
What are the goods that are prohibited to be exported?
After important questions such as what micro-export is and how it is done, institutions and organizations that want to export should know the goods whose export is prohibited. Otherwise, they will not perform the export process and at the same time the reputation of institutions and organizations may be damaged. While analyzing the product for export, the goods to be exported should not be banned in both countries where e-commerce will be made mutually. Therefore, a good research should be done on the prohibited goods in Turkey and the opposite country.
What are the micro export prohibited goods for Turkey?
- Cultural and natural assets (Ancient artifacts)
- Cannabis
- Tobacco seeds and seedlings
- All game and wild animals (live and non-living and their smallest recognizable parts and ready-made garments)
- Export of walnut, mulberry, cherry, pear, plum, yew, ash, elm and linden tree species as logs, logs, timber, planks and draft
- Natural flower bulbs collected from nature
- Wood
- Sweetgum (liquidambar orientalis)
- Licorice (pterocarya carpinifolia)
- Datça date (Phoenix the ophrasti crenter)
- Olive (excluding domestically certified varieties of registered varieties published in the National Variety List), figs (excluding domestically certified varieties of registered and published varieties in the National Variety List), hazelnut, pistachio, vine (sultani seedless) ) seedlings
- Salep (in powder, tablet and any form)
- Substances that are prohibited to be transported by cargo companies
Is VAT Refund Possible in Micro Exports?
Micro export offers you the opportunity of VAT refund, but how is this refund process done? As in normal export processes, VAT refunds are also possible in micro-exports. You can + apply together with the ETGB (Electronic Commerce Customs Declaration) and product invoice to get VAT refund. You can find the answer to the question of how to make an ETGB document in the upper lines. You can make your application through the declaration system. How to make a VAT refund of the shipments you provide with micro export? If you submit the ETGB (Electronic Commerce Customs Declaration) output to the relevant unit, you will have created a VAT refund request, and then VAT refund of the product you exported will be provided to you if it is deemed appropriate.
Who Can Use Micro Export?
We learned what micro export is, how it is done, what are the necessary documents, but who can do micro export? All businesses with a maximum product of 300 kilograms and less than 15,000 Euros can export micro-exports. Micro export is a logical option for industries that export products that are light in weight and in cost. The biggest advantage of this system is that it provides the opportunity to handle many procedures electronically and thus saves time and money for businesses.
Small-scale textile companies can be given as an example of this export model. It is among other examples in sectors such as accessories and spare parts. If e-commerce companies use courier to send their products, they can sell their products in many more markets. However, in this case, the orders they receive must be less than 300 kilograms and less than 15,000 Euros in financial value. Otherwise, businesses cannot perform micro-exports.
When considering light-weight products, phone accessories, various gift objects, all kinds of clothing products (fabrics) are products suitable for micro trade. For example, there are many different products such as “alibaba.com”, “aliexpress.com”, but there are pens, key chains, etc. You can take as an example the websites where light and affordable products are available. Such products should be light in weight as well as light in cost. For example, a solitaire ring may be light in weight, but its financial value is quite high. These types of products are not suitable for micro export. It is possible to trade small-scale products in the micro-export system, which is generally created for the use of small businesses and SMEs.
Where to Find Customer for Micro Export?
I want to do micro export, but the question of how to reach the customer, how to find it and where can I find it is on the minds of all SMEs who want to start micro export. There has always been the question of how to find customers in trade. With the changing and developing world, the expectations and demands of the customers have changed and at the same time the number of customers has increased. This increase in the number of customers has made it easier for people or institutions dealing with trade to find customers.
For example; It is possible to find thousands or even hundreds of thousands of customers all over the world from online shopping sites such as “amazon.com”, “eBay.com” and “etsy.com”. To be able to sell on these sites, you must have a membership to these sites. The expenses you make in return for your membership in these types of trade sites are covered by T.C. You can get it back under the Ministry of Economy support program.
At this point, “How to make sales from e-commerce sites?” You must find the answer to the question. In order to find customers, it is important that your products are attractive, reliable and affordable. Otherwise, you cannot get ahead of other sellers on the site. You can pay attention to the product photos you upload to the trade site, express clearly what the product descriptions are and what is not, and thus start your micro export process.