Com Basic Guide to Exporting

Definition of Exports • Goods and services produced in one country and sold to other countries in exchange for goods and services, gold, foreign exchange, or settlement of debt • Countries devote their domestic resources to exports because they can obtain more goods and services with the international exchange they earn from the exports than they would from devoting the same resources to the domestic production of goods and services Basics of Exporting • • • • • • • • Develop an export plan Identify your market Prepare to enter your market Sell to your market Conduct business online Get logistic support Methods of Payment Secure export financing Develop an Export Plan • Conduct an “audit” of your company to determine how exporting will impact your operations • Understand the key components of an effective, actionable export plan • Have a clear idea of the information you need to collect and where you might find that information • Begin developing your export plan Identify Your Market • Classify your product • Find countries with the largest and fastest growing markets for your product • Determine which foreign markets will be the most penetrable • Define and narrow those export markets you intend to pursue • Research export efforts of your competitors • Determine which countries might be profitable markets for your product/service Prepare to Enter Your Market • Create an action plan to address the pros and cons you generated from the last section • Determine product modifications based on consumer preferences, market environment, trade barriers, etc • Understand regulations and licenses that apply to your products International Legal Considerations • Export Regulations • Import Regulations of Foreign Governments • Export Processing Zone • Customs-Bonded Warehouses • Intellectual Property Considerations Selling to Your Market • Determine the distribution method for your product or service • Calculate the optimal pricing for your product or service • Create a sales and promotion action plan Going Online: E-Exporting Tools • Determine your online strategy for your target market • Determine what enhancements you might need to make to your website (e.g., online payment) • Understand web security requirements, potential scams, etc Get Logistic Support • Update your export plan with the documentation requirements for getting your product(s) from point A to point B • Understand what you need to know about labeling • Identify your method of shipment Shipping Your Product • • • • • • • • Freight Forwarders Packing Labeling Documentation Shipping Insurance Tariffs Major Shippers 10 Methods of Payment • • • • • Letters of Credit Bills of Exchange Cash in Advance Open Accounts Forfaiting 11 Secure Export Financing • Determine your financing needs • Understand where to find financing resources • Understand how to apply for financing tools 12 The Exporting Process Leaving the Exporting Country Licenses General Validated Documentation Export declaration Commercial invoice Bill of lading Consular invoice Special certificates Other documents Entering the Importing Country Tariffs, taxes Physical Distribution International shipping and logistics Packing Insurance Nontariff barriers Standards Inspection Documentation Quotas Fess Licenses Special certificates Exchange permits Other barriers 13 Samples Forms • • • • • • • • • • • • • Air Waybill Straight Bill of Lading Liner Bill of Lading Commercial Invoice Certificate of Origin Shipper’s Export Declaration Shipper’s letter of Instructions Export Packing List Insurance Certificate Pro Forma Invoice Export Quotation Worksheet Draft Transmittal Letter Confirmed Irrevocable Letter of Credit 14 ... where to find financing resources • Understand how to apply for financing tools 12 The Exporting Process Leaving the Exporting Country Licenses General Validated Documentation Export declaration Commercial... to pursue • Research export efforts of your competitors • Determine which countries might be profitable markets for your product/service Prepare to Enter Your Market • Create an action plan to. .. your company to determine how exporting will impact your operations • Understand the key components of an effective, actionable export plan • Have a clear idea of the information you need to collect