In this article ExFrO is going to describe in a simple way all the stages of the export process, whether for companies or individuals.
What is the export process ?
We understand by export process all the procedures that a person or company must carry out to send merchandise or products outside their national market.
Actors involved in the export process
In general, these are the actors involved in the export process:
1. Exporter
2. Importer
3. Exporter’s Bank
4. importer’s bank
5. carrier or freight forwarder
6. Custom agent
7. Insurance company
What are the stages of the export process ?
The stages of the export process are as follows:
1. Commercial closing of the operation
The procedure for exporting a product begins when two or more companies from different countries reach an agreement to buy and sell any product or merchandise. For this, they agree on delivery conditions (Incoterms 2020) at a certain price.
2. Submission of contract and documentary instructions
Once the agreement between the two parties has been closed, the next step will be to formalize the operation. This stage is formalized thanks to the international purchase-sale contract. Subsequently, it is best that the buyer/importer send the seller/exporter the relevant documentary instructions. In other words, the buyer should establish what international documentation he will need to carry out the import.
3. Product manufacturing and packaging
The manufacturer must manufacture the product according to the characteristics agreed with the buyer. You must also carry out a product packaging and labeling appropriate to both the buyer’s conditions and the requirements of the country of destination.
4. Carrier Nomination
Depending on the agreed Incoterm , the exporter or importer will have to nominate a freight forwarder or transport company, who will take charge of international logistics.
In maritime transport, the freight forwarding company will be in charge of making the booking of the container and the reservation of the ship.
5. Collection of merchandise
According to the inconterm, the nominated carrier will send the truck or container to be loaded to the merchandise collection point.
6. Transport to port
The loaded merchandise will be deposited at the maritime or airport terminal.
7. Export procedures
Customs procedures and export clearance are carried out. The registration of the dispatch will be carried out through the comprehensive customs management system.
8. Stowage and loading of merchandise
The stowage company will be in charge of moving the container or merchandise to accommodate it within the international means of transport. Usually the means of international transport are the ship and the plane. The merchandise may travel in bulk, in a container or by parcel.
9. International transport
It can be by sea, land or by plane depending on the means of transport used. On the other hand, it can be considered versatile, when the merchandise moves between several different means of transport.
10. Download and import procedures
Upon arrival in the country of destination, the stevedoring company will unload the goods. The merchandise will remain in the terminal at the disposal of the import and customs personnel until the subsequent import clearance. In the import clearance, they will pay the corresponding tariffs based on the Merchandise Code ( Taric Code ) and the origin of the product. On the other hand, the import customs will verify the international documentation accrediting the operation, and may carry out a registration or inspection of the merchandise in situ.
11. Delivery to customer
Once the merchandise is declared and suitable for use in the importing country, the transport company at destination will pick up the merchandise at the terminal and deliver it to the delivery point agreed with the importer.
