What are the main tasks involved in an import or export transaction?
Domestic trade is the part of trade that only deals with the distribution of goods within the borders of the country. Within this framework, the domestic trade organization buys goods from domestic producers and sells them to consumers at a place and time that suits their needs. Encouraging domestic trade is important for all countries. If customers prefer domestic products over foreign goods, they promote the strengthening of domestic producers and thereby the growth of the economy.
The task of domestic trade enterprises is to encourage the purchase of domestic products over foreign goods. On the part of businesses, one of the tools for this can be e.g. developing a marketing program based on knowledge of the domestic market. It is worth taking advantage of the fact that domestic businesses know consumers' way of life better and assess their needs more easily. Another advantage of the domestic environment is that domestic entrepreneurs are able to validate their relationships, obtain information more easily, and know their competitors better.
Foreign trade is buying and selling between countries. Standards of conduct were developed to manage trade between countries, which regulate the conclusion of international contracts. Foreign trade organizations can be import or export companies, or they can perform these two activities at the same time. During import, goods from abroad are brought in, and export means the sale of domestic products abroad.
Do yo need help to determine the Incoterm, the Taric code, the CPT, the import duties, or managing and contacting foreign companies?
There can be many reasons why one of your foreign customers does not pay: political reasons, economic changes, the customer's banking relationships or the business culture of the country in question, and so on. In the case of international sales, one of the most important tasks is to monitor such factors. Information is therefore fundamental in order to increase sales and is essential for making the best decisions.
One of the most important steps in foreign business expansion is the determination of the payment terms applicable in international trade. Requiring payment in advance is the safest method of payment in international trade and should be followed in all cases where the risk of non-payment is high. However, many buyers are unable to pay in advance, so such conditions limit the number of incoming orders. In order to maximize the potential sales revenue, it may be worthwhile to trade on the basis of subsequent settlement. In such a case, the risks of this must be recognized and the creditworthiness of each customer must be checked. Between the two extremes of advance payment and subsequent settlement are documentary debt collection (during which your bank collects the amount owed to you) and letter of credit, which is a useful intermediate solution, but can also be quite time-consuming to manage.
Whichever method we choose, every year the detailed examination plays an increasingly important role. We thoroughly check the importing party, its bank agreements, business partners, collecting the most accurate information possible. Do not forget that it is essential to obtain accurate information when issuing letters of credit, customs documents or other official documents. In foreign trade, the most important aspects are the same as in many other areas of business life: well-defined procedures, well-trained employees, and regular monitoring. When you work with us, you get access to data and services that align with and support your business processes and systems. Our goal is to ensure that whatever conditions you establish in international trade, you can apply them successfully. We also provide assistance in finding supplier companies based on the conditions you specify, whether in Europe or in a third country. We participate in making contact with suppliers, requesting price offers, making suppliers compete, conducting price negotiations with the supplier company, conducting full-scale procurement and KTF administration. It is essential that the farmer knows exactly which customs tariff code the product he manufactures or distributes falls under, this is especially true when it comes to an export-import transaction, because it is mandatory to provide this during customs procedures. The Mandatory Valid Tariff Information (KTF) is legally binding in all member states of the European Union. So, it serves the safety of the farmer in that there is no possibility of error when the goods are charged.
In the course of import, we bring in goods from abroad, while in export we serve the sale of domestic products abroad. Please contact us for more information.
The distribution industry is one of the most important and integral industries in the world, which is the basis for the global supply, without which basically no industry could operate properly.