How to Export?

In the globalizing world, exports, which stands out as the most prominent activity in the field of economy, is one of the most important factors in the growth, development and development of countries. Countries with high exports to other countries are defined as countries with developed and prosperous local production and service sectors. So what is exporting, what are the types of exports, and how to export? Briefly, export is defined as the process of selling products to other foreign countries through individuals and institutions in the country of production. Nowadays, companies are not only operating in their own country, but also in the international business field to take their competition and returns to the next level and start exporting. With this activity, which is also known as exporting, the buyer in front of the exporter performs the same transaction and simultaneously performs the import activity. For this reason, import and export are compound terms that work simultaneously and it is not possible to realize one without the other. With the development and widespread use of the internet, there have been many changes in this field. With this, exporting has also become easier. However, some difficulties can still be encountered.

The importance of exports is increasing day by day for companies that want to develop and grow in the globalizing world. Exporting is the sale of products or services to customers abroad. There are two types of exporting: direct exporting and indirect exporting. Direct exporting is done by contacting intermediaries abroad, while indirect exporting is done by contacting intermediaries at home. In addition, many companies export both ways. There are many steps involved in exporting, such as finding intermediaries, arranging documentation, arranging transportation routes. However, it is also necessary to take into account many situations such as the cultures of the countries, whether they are open to these products or not. One of the most important tools for exporting is today's indispensable device, the internet. Many companies use the internet to reach and communicate with other companies. Therefore, companies' websites are of great importance in today's conditions.

Export consultancy has naturally become a growing field with the increase in exports. Export consultants provide great benefit to companies in areas such as documentation, finding intermediary companies and potential buyer companies, and making sales calls. Of course, as in every field, brands differ in the work they will do in export consultancy. While some of them help exporting companies in every field, others are not interested in every field. In order to receive these consultancy services, export consultancy companies in the private sector generally stand out. In addition, in addition to export consultancy companies, there are also companies that export directly for you and receive commissions. Export consultancy firms help you with export transitions and instead of a commission, these firms need to be paid a certain fee, but this varies from company to company. Consulting companies aim to successfully realize the export transition phase for this fee. The biggest reason for companies that prefer export consultancy is usually the slowdown in the growth of companies within the country or the lack of room to grow further. This is because exporting not only leads to growth, but also enables networking with companies abroad. It creates market diversification, and in the product life cycle, it extends the life of the product and provides incentives from the government.

As a result, exports have a very important place in this globalized world for companies that want to grow. Not only growth, exports also provide many benefits for companies. That is why the number of companies that want to venture into the field of exports has increased considerably in recent years. Naturally, even export consultancy services are in high demand. At this point, it is of great importance for companies to know what exports are and what stages they will take.

What is exporting?

How are exports realized?

Characteristics of exports

Export Date

Exporting is the process of selling or sending goods and services produced by a country to other countries. The history and early activities of exports date back to the early periods of human history. In early times, tribes and civilizations used to export the goods they produced in their own regions to neighboring regions through barter. These barter transactions enabled the growth of local economic activity and encouraged cultural interaction.

In ancient times, large empires and trading cities became famous for the products they exported. For example, during the Roman Empire, the city of Rome was a central export point and traded with countries around the Mediterranean. Rome exported a variety of products such as agricultural products, ceramics, textiles and precious metals, while importing from different regions. After the Middle Ages, the era of exploration and overseas discoveries began and contributed to the development of global trade. With geographical discoveries, European countries traveled to Asia and the Americas, discovered new markets and started to trade with these regions. In particular, trade routes such as the Spice Road and the Silk Road enabled different cultures and materials to interact with each other.

With the Industrial Revolution, advances in production technologies and the development of transportation facilities greatly affected export activities. As machinery and factory production increased, goods could be produced and exported faster and more efficiently. New means of transportation, such as railways and ships, made it easier to transport goods to more distant markets. Today, globalization and rapid advances in technology have further boosted export activities. Countries support economic growth by exporting their goods and services to world markets. International trade agreements and free trade agreements provide regulations that encourage exports. While exporting contributes to a country's economy, it also supports the profit rate of companies by creating various job opportunities.

What are the Advantages of ExportingWhat are the Advantages of Exporting

What are the Advantages of Exporting?

Exporting stands out with its advantages. Firstly, it has a direct impact on the growth of companies' market shares and allows companies to find new discoveries and operate in new areas. On the other hand, it allows both to create value-added jobs for our country and to increase Turkey's brand perception. If companies do not have a certain production intensity related to the domestic market, they can directly increase this with exports. This allows for more competitive pricing by reducing the labor force and production costs in production. Thus, companies reduce their dependence on the domestic market. Remuneration is particularly important when imported products are exported abroad with R&D and various innovation-related developments.

While some of the people engaged in trade consider their activities in their local area to be sufficient for them, others may want to provide services in a larger area in their trade.

Thus, we encounter the concept of exporting and this sector becomes a sector where businesses want to grow. Accordingly, exporting has many advantages. The advantages of exporting, which provides benefits not only in terms of globalization but also in financial and social terms, are as follows:

You can increase your customer potential by selling to foreign countries through exports. It is easier to find new customers for your products and services in large masses. Thus, you can find the opportunity to accelerate your transactions and commercial activities.

Exporting businesses not only gain direct sales experience to a large customer base. They also gain global social experience by getting to know other cultures and people. Therefore, exporting can not only help you advance in your business, but it can also help you grow personally.

Many businesses aim to sell to a small audience by staying in their own field instead of exporting, but those who export will reach larger sales figures and audiences and will also advance in the competitive environment.

Of course, selling in one country and selling in more than one country have different revenue-generating results. Exporting companies reach more market share, revenue and development results as they sell their products to different customers in different countries.

If the export values of exporting countries are higher than the import figures, it means that the foreign trade deficit of that country disappears. If they are very successful in this sector, the volume of foreign trade increases noticeably. Thus, foreign currency is earned to the country in line with import-export values.

Exports are also seen as a source of motivation for countries, individuals and organizations. An increase in exports means an increase in local production, which, along with all the other advantages, also plays an incentive role.

Export Types

Self-Authorized Export

Consignment Export

Free of Charge Export

Registered Exports

Transit Exports

Non-autonomous Export

Indirect Exports

Actual Export

Re-export

Temporary Export

Free Export

Exports are not just a single transaction. There are different types of exports depending on the country, product, service, payment methods and many other factors. In this direction, the types of exports according to the types of products exported and the way they are exported are as follows:

Pre-Authorized Export

Pre-authorized exports are a method of trade in which a country must obtain prior authorization to export certain products or services. This type of export usually applies to specific sectors or products and is intended to control exports subject to certain government policies or regulations. A company or exporter from a country wishing to export must obtain prior authorization to export a specific product or service. This permission is usually granted by the government or the relevant regulatory body. The exporter must prove that the product or service it plans to export complies with certain standards, quality controls or international transportation requirements. In addition, the export may need to comply with certain policy or economic objectives.

The purpose of these exports is to protect the country's interests, correct trade imbalances, ensure product quality and safety, and ensure that products of technological or strategic importance are kept under control. In particular, sensitive or potentially dangerous products such as military equipment, nuclear technology, pharmaceuticals or chemicals may fall into the category of exports requiring prior authorization.

Each country may have different mechanisms and methods to control or regulate exports. Therefore, the details and processes for pre-authorized exports may vary from country to country. A company or exporter wishing to export should research its country's export regulations and requirements and contact the government or relevant organizations.

Consignment Export

Consignment exports are a method of trade in which an exporter holds goods or products at the buyer's warehouse or point of sale for a specified period of time before selling them at the buyer's request. In this method, the exporter stores the goods on its behalf under the buyer's control and payment is made when the sale takes place. In this export, the exporter stocks and maintains the goods or products according to the buyer's demand. The exporter is paid when the buyer makes a sale and delivers the goods to the customers who have purchased them. In this method, exporters stock products according to the demand of their buyers and realize potential sales.

Consignment exports can reduce the buyer's risk while at the same time giving the exporter easier access to potential customers. However, with this method, there is a risk that the exporter's goods or products will not be sold by the buyer. Therefore, a good relationship of trust and cooperation is required.

Consignment exports are subject to the agreement between the parties and the import and export regulations of the country where the trade takes place. Therefore, it is important to consider the relevant legal regulations and contracts when exporting on consignment.

Free of Charge Export

When Turkish citizens go abroad on a permanent or temporary assignment and present the products they will take to the relevant authorities with the necessary documents, they carry the product they will send or send on their behalf. Especially in fairs, such shipments are frequently encountered. The products you send to present abroad are carried out under the name of free export. After a product that you have previously exported abroad with the necessary documents is sent free of charge, the appropriate parts, wastage and the provision of parts that need to be renewed within the warranty period of the goods exported under warranty are realized under the name of this type. The situation arising from the duties or agreements of public institutions and organizations also belongs to this type of export.

Recorded Export

Today, it is not clearly known which products belong to this type of export. At this point, in the light of the regulations published by the Ministry of Export Customs, it is necessary to notify the general secretariat of the exporters' union with the customs declarations of the specified goods. After this process, it must be sent to customs administrations. This process takes a maximum of 1 month to process. At the moment, the most noteworthy export products are nulle stone, licorice root, unprocessed olives and live bovine animals. In recent days, exports to Russia as a country under economic sanctions have been of this type.

Transit Exports

When a product is shipped, it enters one country, then the bills of lading are exchanged again and sent to another country. This export does not require the goods to be processed. On the other hand, these exports can be carried out within the framework of customs legislation and certain laws. After the products arrive at customs, they are exported to another country without entering the country through customs. No VAT and similar taxes are paid in transit exports. The invoice received by the company for the imported materials and the invoice sample to be imported are sent to the customs.

Non-Autonomous Export

A country produces goods and services based on its own resources and exports these products to other countries. This aims to improve the country's balance of trade, promote economic growth and increase its competitiveness in international trade. Non-autonomous exports, on the other hand, refer to the situation where a country exports without relying on its own resources or being independent. In this case, the country cannot adequately cover its production or has to import the goods and services required for export from other countries. Non-autonomous exports usually occur when production capacity is insufficient or when technology and know-how in a particular sector are lacking. In this case, the country runs a foreign trade deficit and tries to balance the imported goods and services with exports. This type of export is an indicator of a country's external dependence and may pose risks to economic sustainability. A country can aim to develop an autonomous export strategy by reducing its dependence on external resources and increasing domestic production. In this way, the country increases its ability to export based on its own resources and strengthens its economic independence.

Indirect Exports

As the name suggests, indirect exports are companies that do not export on their own and sell their goods through foreign companies.

Actual Export

This is done by selling such products abroad. Thus, they play a key role in the economic development of countries. In this type of export, normal export procedures apply, and the inspection company proceeds by obtaining conformity after providing inspection according to the product norm information required for import.

Re-export

This is usually an export method used by economically strong countries. With this export method, raw materials are bought from different countries, reprocessed and sold at higher prices. The company in question earns certain profits without making large investments.

Temporary Export

Temporary export is the process of temporarily taking a good or article out of the borders of a country and bringing it back to the same country after a certain period of time. Such exports are usually carried out temporarily for a specific purpose and their ownership and possession within the borders of the exporting country do not change. Temporary exports have several reasons and areas of application. Equipment, tools or other materials may be exported under temporary exports for use in temporary activities such as business trips, fairs, exhibitions, events and demonstrations. In addition, goods sent from one country to another for purposes such as repair, maintenance or reprocessing can also be considered under temporary exports.

Free Export

Free exports are, in general, an increase in the production and export of goods. In this case, the entry of foreign capital into the country is also encouraged. The subjects of free zones are the same and goods are brought into the free zone by customs officials. Free zones benefit transit trade, taxation, companies engaged in foreign market-intensive production, etc. and insurance companies.

Export Making Features

In order to be able to export, one must first know the necessary regulations and some important anecdotes. First of all, in order to export, one needs to be under a business entity. Therefore, the first action to be taken is to establish a company and carry out activities under the name of this company. Those who want to export through an existing company must meticulously examine and fulfill the necessary regulations and legal rules. Before exporting to a country, it is necessary to learn the customs regulations and engagements of that country. This information can even be obtained from commercial attaché offices or customs brokerage firms. In the following process, it is important to determine your customer channels correctly and to make the right pricing. Before this process, necessary actions and measures should be taken in the pricing of the products you will sell in that country. Then, after the necessary work is done and the right prospect is researched and identified on various portals, it is necessary to contact and communication should be established properly.

Every company that wants to sell products abroad and earn money in foreign currency should look for answers to these two questions. Which products do we want to sell abroad and where should our primary target market be? In short, companies should start exporting.

Transit Exports

When a product is shipped, it enters one country, then the bills of lading are exchanged again and sent to another country. This export does not require the goods to be processed. On the other hand, these exports can be carried out within the framework of customs legislation and certain laws. After the products arrive at customs, they are exported to another country without entering the country through customs. No VAT and similar taxes are paid in transit exports. The invoice received by the company for the imported materials and the invoice sample to be imported are sent to the customs.

Non-Autonomous Export

A country produces goods and services based on its own resources and exports these products to other countries. This aims to improve the country's balance of trade, promote economic growth and increase its competitiveness in international trade. Non-autonomous exports, on the other hand, refer to the situation where a country exports without relying on its own resources or being independent. In this case, the country cannot adequately cover its production or has to import the goods and services required for export from other countries. Non-autonomous exports usually occur when production capacity is insufficient or when technology and know-how in a particular sector are lacking. In this case, the country runs a foreign trade deficit and tries to balance the imported goods and services with exports. This type of export is an indicator of a country's external dependence and may pose risks to economic sustainability. A country can aim to develop an autonomous export strategy by reducing its dependence on external resources and increasing domestic production. In this way, the country increases its ability to export based on its own resources and strengthens its economic independence.

Indirect Exports

As the name suggests, indirect exports are companies that do not export on their own and sell their goods through foreign companies.

Actual Export

This is done by selling such products abroad. Thus, they play a key role in the economic development of countries. In this type of export, normal export procedures apply, and the inspection company proceeds by obtaining conformity after providing inspection according to the product norm information required for import.

Re-export

This is usually an export method used by economically strong countries. With this export method, raw materials are bought from different countries, reprocessed and sold at higher prices. The company in question earns certain profits without making large investments.

Temporary Export

Temporary export is the process of temporarily taking a good or article out of the borders of a country and bringing it back to the same country after a certain period of time. Such exports are usually carried out temporarily for a specific purpose and their ownership and possession within the borders of the exporting country do not change. Temporary exports have several reasons and areas of application. Equipment, tools or other materials may be exported under temporary exports for use in temporary activities such as business trips, fairs, exhibitions, events and demonstrations. In addition, goods sent from one country to another for purposes such as repair, maintenance or reprocessing can also be considered under temporary exports.

Free Export

Free exports are, in general, an increase in the production and export of goods. In this case, the entry of foreign capital into the country is also encouraged. The subjects of free zones are the same and goods are brought into the free zone by customs officials. Free zones benefit transit trade, taxation, companies engaged in foreign market-intensive production, etc. and insurance companies.

Export Making Features

In order to be able to export, one must first know the necessary regulations and some important anecdotes. First of all, in order to export, one needs to be under a business entity. Therefore, the first action to be taken is to establish a company and carry out activities under the name of this company. Those who want to export through an existing company must meticulously examine and fulfill the necessary regulations and legal rules. Before exporting to a country, it is necessary to learn the customs regulations and engagements of that country. This information can even be obtained from commercial attaché offices or customs brokerage firms. In the following process, it is important to determine your customer channels correctly and to make the right pricing. Before this process, necessary actions and measures should be taken in the pricing of the products you will sell in that country. Then, after the necessary work is done and the right prospect is researched and identified on various portals, it is necessary to contact and communication should be established properly.

Every company that wants to sell products abroad and earn in foreign currency should seek answers to two questions. Which products do we want to sell abroad and where should our primary target market be? In short, companies should decide which products they want to sell and which target markets they should focus on before they start exporting. After answering these important questions and identifying their product groups and target markets, they should take action and try to find customers. Intelligence platforms such as Trademap, Kompass and social media platforms such as LinkedIn and Facebook can be used during customer potential studies. After finding a customer willing to buy their products, companies should ask for the customer's approval by sending the customer a proforma invoice or an offer form with information about the product order to be sold in order to start the sales process. Once a consensus has been reached, it is advisable to obtain a purchase form and a proforma approved by signature to guarantee the process.

The smooth realization of the exchange between the two companies and the signing of a contract on the solution and penalties of the problems encountered constitute trust for both companies. When this stage is reached, it is necessary to agree on the mode of transportation through which the orders will be shipped and the delivery method accordingly. The agreed delivery method should be written on the proforma or offer form to ensure transparency of the process.

Another important issue to be decided now is how the payment will be made. If the exporting company wants to secure itself in terms of payment, it can use the letter of credit. Although this form of payment may seem costly, it stands out as the most secure form of payment. Other payment methods that can be used are payment against goods and payment against documents. Export is realized by specifying the agreed payment method in the proforma or offer form. At the last stage, customs procedures must be completed. Therefore, a customs consultancy company that the company has agreed according to its commercial capacity should carry out the procedures according to the invoice list. After the registration of the customs declaration, the export process officially begins.