• Analyze the market & plan the export process
• Find foreign sales partners
• Requirements: dealing with third countries
• Special features of international business
• EU export regulations
• Export control: do you need an export permit?
• Import regulations in the recipient country
• Additional import duties in the recipient country
• Temporary use abroad

Analyze the market & plan the export process

Are you interested in expanding your business across national borders? Then it's best to start with a detailed analysis. Think about the market in which your product has the best sales opportunities. Take a close look at your current and planned sales market. Make use of your experience from business transactions that have already been carried out and plan for future ones. You can obtain information from your Chamber of Industry and Commerce or the chambers of commerce abroad, as well as from embassies or associations.

• It is advisable to plan the possible export process, especially before launching your product in a new market. Pay attention to the following aspects:
• Does the production of the goods correspond to the local conditions?
• Are there any restrictions or bans on certain product groups?
• If the sale of your goods at all in the country/region allowed?
• How much capital can you bundle for processing export transactions?
• Are your employees/freelancers sufficiently trained and already have experience in processing export transactions, do you need further education/training or do you need new staff?

Doing international business also means that there are language barriers to be overcome and that you are familiar with the cultural background of your business partners. The ability to fill this gap is often the most critical factor for success in international business. Show empathy and adaptability. Cultural differences also influence your product range and marketing tools.

You should be focused and structured. Create a strategic plan that encompasses the entire export marketing strategy. In addition, an operational plan in which you define which goals should be achieved by when. Think about when the best time would be to launch your product on the market. How should the sale take place and do you need representatives/dealers on site. And make contacts!

Find foreign sales partners

Finding sales partners abroad is less of a problem than finding the RIGHT one among them. The partners can be agents, resellers, intermediaries or the customers themselves. It is important to choose the most suitable from the multitude of possible partners.

• Find out for example:
• through own internet research
• International company databases
• Trade fair catalogs - better still, visit relevant trade fairs abroad
• Ask your Chamber of Commerce and Industry (IHK)
• Advertisements in foreign trade journals/media

You have found a sales partner - find out more before the first contracts are signed. You should know about your new business partner:

• How long has his company existed?
• Which business connections in which regions to which potential customers does it already have?
• Which other domestic and foreign companies are already represented?
• What experience does your potential business partner have with comparable products?

Serious, experienced, and interested partners will be happy to answer these questions! Foreign chambers of commerce, embassies, international information and economic files, credit institutes with international connections, and also German companies that already have export experience in this market can help you to get a rough overview of the financial and economic circumstances of your potential business partner.

Paper is patient ... what counts now is the personal impression. Prepare yourself well for the personal interview. Not only the first impression your potential business partner has on you but also the impression he gets of you is important.

• Prepare a small presentation
• Provide information about your company, products, and your visions
• Take a look at the general conditions on site
• Let the market and competitive situation be described to you
• How exclusive will/can / should your business partner work for you

Your interlocutor should radiate professional and personal competence. After all, he should market your product abroad.

Requirements: dealing with third countries

A distinction must be made between trade within the EU and with third countries. In trade with third countries, defined processes must be adhered to despite increasing liberalization.

No export business without:

• Business registration at the locally responsible public order office
• Entry in the commercial register from certain size classes or always for corporations (limited liability company) and partnerships (OHG)
• Citizens from non-EU countries need a residence permit that also allows them to carry out self-employed commercial activities.

Special features of international business

The order from abroad has arrived. In addition to checking the product-specific properties, the following commercial policy measures should be checked for correctness.

Delivery terms

When doing business with third countries, costs and risks arise in the area of ??customs and transport processing. The allocation of costs and risks should be agreed upon in advance between the exporter and the foreign importer. Internationally standardized delivery conditions are helpful here. These are set out in the so-called INCOTERMS

Terms of payment

The terms of payment range from prepayment to an invoice with a long-term payment term. Prepayment represents the lowest risk for the seller, while invoices with payment terms are riskier. An alternative option is to pay by means of an irrevocable documentary credit. The so-called letter of credit is opened by the bank of the foreign business partner in favor of the seller. The advising foreign bank corresponds with the domestic bank via a correspondent bank, generally with your house bank.

In some cases, economic and political risks can also be insured with government export guarantees. (Hermes Cover, Internet: //agaportal.de/pages/aga)

It is advisable to speak to the foreign department of your house bank about other options.

UN sales law

The UN sales law was created especially for the international movement of goods. It often applies even without a special agreement and can form a common basis for the contractual partners. Individual components can be changed. The UN sales law is available in all major commercial languages. The content and consequences should be known to the trading partners.

German export regulations

In principle, export declarations can only be processed electronically. The system with which the sender communicates with German customs is called ATLAS. For more information, see International - Atlas Export

If you regularly participate in foreign trade, it is advisable to apply for a so-called EORI number (Economic Operators Registration and Identification number).

The electronic export declaration is necessary from a goods value of 1,000 euros and a weight of 1,000 kg. This regulation also applies to dispatch by post or train.

If there are agreements between the EU and the recipient country, your customer can claim tariff concessions after submitting movement certificates (EUR.1, A.TR, declaration of origin).

From a goods value of 3,000 euros or more, the export declaration must be processed in advance by the locally responsible inland customs office. The shipment is then accompanied by an export accompanying document (ABD).

To prepare the export declaration you need:

access to the ATLAS system. On the one hand, all freight forwarders are networked with this system and, on the other hand, you can enter the export declaration into the ATLAS system yourself via the customs website.

Tariff number; this enables the precise allocation of goods in accordance with the “list of goods in foreign trade statistics”. For more information, go to the Customs website

Address/address of the recipient

The commercial invoice or a proforma invoice showing the value of the shipment and the delivery terms.

Gross and net weights

Type of export (here final export, temporary export, etc.)

Information on export restrictions, if necessary, a declaration must be submitted that the goods are not included in the export of dual-use list. You can find out whether your goods are covered by export restrictions from the information on the relevant goods tariff number.

If you enter the export declaration into the ATLAS system yourself, you will also need the following information:

Customs office of exit

Route of transport; All transit countries must be displayed, especially in the case of truck transports

You can get more information from your responsible customs office or on the website of the customs administration.

Export control: do you need an export permit?

Basically, before exporting, it is advisable to check whether the export of the goods is subject to authorization and an export authorization is required before accepting the order.

Here it must be determined whether the goods are included in the export list or the dual-use list. The current lists are available on the website of the Federal Office of Economics and Export Control ( www.bafa.de or www.ausfuhrkontrolle.info ). With the help of the conversion directory, the export list can be checked to see whether the tariff number is recorded. The exam often requires technical expertise. The Federal Office of Economics and Export Control (BAFA) can, however, confirm bindingly whether your goods require approval. In the case of sensitive goods (e.g. weapons, ammunition, armaments), your customs office can request confirmation during export clearance or the customs officer will consult BAFA.

If it turns out during export clearance that the goods require a permit, the export is stopped and can only be started again when the export permit is available.

Another thing to check is whether there is an embargo against the recipient or recipient country. On the one hand, there are country embargoes and, on the other hand, personal embargoes.

The current lists and embargo regulations can be found on the website of the Federal Office of Economics and Export Control www.bafa.de or www.ausfuhrkontrolle.info .

Import regulations in the recipient country

Abroad, depending on the type of goods, various documents must be presented for import processing. Your business partner depends on your support. The agreed delivery conditions regulate the extent to which you have to provide documents (INCOTERMS 2010).

The requirements for the foreign customs administrations and the consignee extend to the form and content of commercial invoices, certificates of origin, and import licenses. The certificates of origin are certified by your competent Chamber of Industry and Commerce.

There are also, in some cases, detailed regulations on the packaging and marking of deliveries.

Various reference works provide you with assistance. They are widespread

"Consulate and model regulations (K and M)", published by the Hamburg Chamber of Commerce; Obtained from Mendel Verlag GmbH & Co. KG, www.mendel-verlag.de . "

"Accompanying documents for export shipments" can also be obtained from Mendel Verlag,

“The import regulations of other countries” can be obtained from form publisher CW Niemeyer, www.formularverlag.de

In some industries and countries, it is necessary to comply with specified certification obligations or pre-shipment controls are necessary.

If possible, the importer in the country of destination should specify which documents are required for customs clearance. Also, note which documents are required in the case of a letter of credit. Before accepting the letter of credit, it is advisable to check these points in advance to ensure that they can be fulfilled.

Additional import duties in the recipient country

The type and amount of the additional import duties vary greatly from country to country. In addition to customs duties and import sales tax, other taxes and handling fees may apply. The IHKs will be happy to provide you with non-binding information on foreign customs tariffs and additional import duties. Binding information on foreign customs rates can only be given in writing by the customs authorities in the respective country.

Foreign duty rates can be researched in the Market Access Database. Who pays the foreign taxes can be regulated in the delivery conditions / INCOTERMS 2010.

Temporary use abroad

You intend to take part in a trade fair in a third country and would like to present your goods.

Or your customer would like a sample of the goods to be sent or you need material, tools, machines, etc. abroad to practice your profession

AND

the goods will be returned to the territory of the European Union (EU) after the event/use, then there is the possibility of temporary importation. In this case, the foreign customs require the deposit of security in the amount of the usual import duties - usually in the respective local currency and in cash.

ALTERNATIVELY, it is possible to have a so-called CARNET ATA / CPD issued.

About 50 states have contracted to accept this form for temporary use. Your chamber of commerce and industries will be happy to advise you.

We are offering a Personal Coaching Program for less than $50 per year. I will be there to guide you through the whole process of setting up an import export business from your country. If you are serious about A-to-Z Practical Consultation of Exim, then this is the program for you. Our expertise will help you in your journey to becoming a successful businessman.

Join our personal coaching program and get access to www.exportimport.guru with our Personalized Whatsapp Support for your Startup. Kindly Whatsapp us on +91 8128111191 or email barai@exportbooster.in for all help

 

Cordially Yours,

Kishan Barai

www.baraioverseas.com