Export Procedures

Export

Export of goods takes place when there is a change of proprietorship from a resident to a non-resident; this does not essentially infer that the goods in question physically crosses the border. However, in specific cases national accounts credit changes of ownership even though in legal terms no change of ownership takes place such as cross-border financial leasing, cross-border deliveries between affiliates of the same enterprise, goods crossing the border for significant processing to order or repair. Also smuggled goods must be included in the export measurement. Exporter has to submit a ‘shipping bill’ for export by sea or air and a ‘bill of export’ for export by road. Relevant documents i.e. copies of packing lists, invoices, export contracts, and letters of credit are also to be collected.

For many companies, export begins in the sales or marketing department. That department may develop leads or identify clients located in other countries. Inquiries or orders may come from potential customers through the company website where the destination is not identified. When such orders come in, the sales salesperson needs to determine what steps are different from its domestic sales in order to fill those export orders?

Export: Order processing quotation (Source: Johnson, 2010)

Because export orders require special procedures in manufacturing, credit checking, ensuring, packing, shipping, and collection, it is likely that a number of people within the company may have input on the appropriate way to fill the order. As the export increases, the handling of such orders should become more routine and the assignment of special procedures related to an export sale should be given to specific personnel (Johnson, 2010).

Export order processing: Order entry (Source: Johnson, 2010)

Export order processing: Shipment (Source: Johnson, 2010 )

Basic Export Procedures

1. Market Research and Setting Objectives of Distribution: Selecting target markets, methods of exportation and channels, setting foreign market objectives on pricing and terms
2. Trade Regulations:
   
• Export regulations and requirements
• Overseas import regulations and requirements
• Patent, trademark, and copyright
3. Making Contacts:
   
• Investigations from interested overseas buyers
• Checking buyer's background from ECIC and/or banks
4. Quotation and Terms:
   
• Making offers and quotations for potential buyers
• Costs, quotations and pro forma invoices, and terms of sale
5. Sales Contract:
   
• Confirming the sales contract and terms of transaction such as payment terms.
6. Contract Execution:
   
• Producing or sourcing goods
• Packing and labelling
• Arranging shipment
• Preparing exports documentation
• Arranging insurance, if necessary
7. Customs Clearance:
   
• Arranging export declarations and applying for export licenses when necessary.
8. Getting paid:  
   • Subject to the payment terms specified in the sales contract, the exporter should present the required documents to the relevant parties for payment

Export order processing: Collection (Source: Johnson, 2010)