Who is the exporter?
Any real or legal person who holds a business card or a Ministry of Commerce permit and commits to export goods.
Export: Export means moving goods or sending goods from one place to another domestically or internationally.
Export is communicating and working with professional markets and market professionals across borders. Export is the starting point for communicating with others, earning currency incomes, and helping to balance trade and economics.
Export Types: Export is divided in terms of two perspectives. In the first perspective, the export is divided into two types of direct and indirect, and in the second perspective, it can be divided into 9 parts.
Direct Export: Companies that are encouraged by foreign buyers to export usually use this method. Sellers whose exports have grown so large that they can handle the costs of running their own export organization are also using this method. companies that undertake all necessary activities to sell their products in the host country can export directly. These activities include determining market capacity, finding a buyer, identifying distribution channels, and doing export activities such as preparing documents, shipping and insurance measures.
Direct export is done in the following ways
- A) Export Agents: Export agent is a buyer intermediary who buys goods from the seller and receives commissions in the exporting country. Agents can be distributors or manufactures.
- B) Traveling Sales Agents: The company can send its agents abroad at certain times for commercial activity.
- C) Overseas Sales Branch: A foreign sales office allows the manufacturer to have more presence in the foreign market and to better control its plans. The sales office is responsible for sales and distribution, and may carry out warehousing and advertising activities for goods’ sale.
- D) Domestic Exports Division: Exports sales specialist, with some export assistants, performs export tasks and provides assistance to export markets when necessary.
- E) Free Marketing: This method is mostly American, and especially for large international corporations; companies using its own distribution channels to sell other goods that are suitable or complementary to the company’s products. Its incomes come from the royalties or permits for its exclusive sale.
- F) Mail Order: Sometimes, companies sell their products by mail. In this way, the buyer completes the product form obtained through the mail offices or the newspaper and sends it to the company along with the check form.
Indirect export is more common among companies that have just started exporting. This type of export requires less capital and the company does not have to hire vendors or execute contracts abroad, and it also has less risk to exporters. Indirect export itself can be implemented in several ways.
- A) Commercial companies: These companies are a broader form of exporting merchants who buy different goods from different manufacturers and export them to their target markets. The most important commercial companies in today’s modern market are Japanese companies called Sogo shosha. Selling through this kind of export is like selling internally, but it is less stable due to lack of control and lack of market information.
- B) Export Management Company: This intermediary agrees to carry out all export related steps, including advertising, discounting, transportation and so on, in return for payment.
- C) Export Cooperative Company: An export cooperative company carries out export activities on behalf of multiple manufacturers.
Definitive Export: Definitive exports are the shipment of goods outside the Customs territory of the country for sale or consumption abroad. Definitive exports are exempt from Customs duties, business profit, duties and taxes but are subject to Customs costs.
Temporary Export: Goods that are shipped overseas for temporary use and shipped after the intended purpose.
Definitive Export in Business Volume: There is no standard or definition for the volume or commercial aspect of the goods. Article 3 of the Export and Import Act states that exporting and importing merchandise requires a business card and the criteria for the commercialization of goods is that it is imported or exported for sale according to the Customs, whether it is sold in the same form or after manufacturing, separation and packaging operations.
Non-commercial definitive exports: Non-commercial definitive exports are carried out by mail and passenger.
Re-export: Re-export is the export of goods that have already been imported without any additional processing or modification; unless re-exported through ports, free zones or warehouses under Customs protection, they will be exempt from Customs duties. Transit or quasi-transit goods are items whose owner is not known and do not hold the citizenship of the country in which the goods are located.