Import and Export
Export and import are two closely related concepts. Exporting refers to the act of selling goods or services abroad whether produced by a country, a region, or an economic entity.
Export is the mirror concept of import (“importation”), since a sale from country X to country Y is the same operation as a purchase by country Y from country X.
Key Benefits
Benefits of Importing
- Importing makes it possible to introduce new and trending products to the local market.
- Importing is particularly attractive when you sign an exclusive distribution agreement with a foreign supplier.
- It is also advantageous when the end customer is willing to pay a higher price than in the product’s country of origin.
Benefits of Exporting
- Exporting allows businesses to expand the size of their market.
- It helps improve cash flow and maximize returns on investment.
- Exporting can also increase the company’s value more rapidly.
6 Key Questions to Ask Before Getting Started
1. Product
Can the product I want to import or export legally leave the exporting country?
Key points to verify:
- Goods prohibited from import or export
- Goods subject to specific conditions or regulations
- Goods that cannot be transported
2. Payment
How should potential suppliers be paid?
Best practices include:
- Mastering international payment methods
- Securing payment guarantees
- Avoiding cash payments and advance payments whenever possible
3. Purchasing Conditions
Are there any specific purchasing conditions to consider?
Important aspects to address:
- Procedures in case of defective or non-compliant goods
- Deciding whether to inspect the goods before export
- Documents required prior to import in international trade
4. Authorizations
Do you have all the required authorizations?
Key elements to check:
- Choosing the legal status best suited to your activity
- Export licenses, if required
- Exporter identification and registration
5. Transport
Who will organize transportation and customs clearance?
Key decisions to make:
- Choosing the appropriate mode of transport
- Negotiating the right Incoterm
- Allocating risks between the seller and the buyer
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