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What You Need to Know Before Starting Foreign Trade Processes

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What You Need to Know Before Starting Foreign Trade Processes

International trade is very important for the continuation of globalization and countries aim to increase exports and decrease imports in order to increase economic development. The exchange of goods that takes place across national borders is called foreign trade, foreign trade; It takes place in two different ways, namely import and export.

International trade is very important for the continuation of globalization and countries aim to increase exports and decrease imports in order to increase economic development. The exchange of goods that takes place beyond national borders is called foreign trade , foreign trade; It takes place in two different ways, namely import and export. Foreign trade is not generally different from domestic trade, the motivation and behavior of the parties involved in the trade do not differ depending on whether the trade is cross-border or inter-regional.

The primary difference between them is that foreign trade is more costly than domestic trade. The main reason for the cost difference is; cross-border tariffs, time and language costs due to border delays, legal system or country differences.

What are the Types of Foreign Trade?
It is possible to list the types of foreign trade as follows:

  • Import: The process of purchasing goods and services made in another country is called import. For example; Importing cooking oil from Chinese producers to sell in a European country is an example of an import process.
  • Export: The process of selling locally produced goods in another country is called exporting. Exporting food, textile and other products from our country to Germany is an example of the export process.

Foreign Trade Processes - Export
There are certain processes and operational stages of export, they are listed as follows;

Export Procedures Operation Stages
Exporting means selling the goods produced in one country to another country, and the excess of exports contributes to the development of the country. Export transaction processes are important and should not be disrupted.

Export Procedures Processes
These processes can be itemized as follows;
  • Order taking, preliminary negotiations, correspondence,
  • price negotiations,
  • Payment method, delivery method, export method negotiations,
  • Preparation of documents,
  • production of goods,
  • delivery of goods,
  • Payment.

Export Operation Stages
Export operation phases start with preliminary negotiations. The operation stages are as follows;
  • Showing sensitivity in export transactions and transaction stages,
  • Negotiating the price with the customer after the preliminary negotiations and the sales contract,
  • Reaching a mutual agreement on the price and then deciding on the payment method,
  • Deciding on the delivery method after the payment method is decided,
  • Preparation of documents on these principles after the delivery method has been decided,
  • Deciding and clarifying all information such as the day of delivery, what the goods are, the amount, etc.,
  • After the product is ready, the shipping company comes into play,

Foreign Trade Processes - Import
There are some stages that must be followed while performing operations in import processes. These stages lay the groundwork for the smooth execution of transactions. Import procedures and operation stages must be carried out carefully in order for the import operations to be carried out in a healthy manner. Import processes can be divided into three main items. These;
  • Things to do before ordering and loading,
  • What to do during the shipping process,
  • The arrival of the goods is the process that needs to be done.

Import Procedures
These processes can be itemized as follows;
  1. Order and Pre-Loading Processes;
  • GTIP Detection,
  • Arrangement of Documents,
  • Control of Documents,
  • Quality control,
  • Insurance.
  1. Shipping Process Transactions;
  • Loading the Goods,
  • Delivery of Documents,
  • Import Preparation,
  • Summary Statement.
  1. Transactions to be Performed with the Arrival of Goods;
  • Warehouse Operations,
  • Customs clearance,
  • Tax and Expense Payments,
  • Domestic Shipping,
  • Archive.

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