Ever wondered how exporting works? We'll break it down for you. (Image via: Maine International Trade Center)

Keen on Export? 4 Beginner Guides on How to Export Your Goods

Alfonsus Adi Putra
Market & Investment
Export Import
Jul 05, 2019
2693
Nowadays, more and more governments are encouraging their people to be entrepreneurs on their own. In other words, those governments want their people to contribute to the development of their countries by their own effort.

Moreover, this entrepreneur does not mean that they only reign domestically, but globally. In Indonesia, we have the Primaniyarta award, an award for a notable exporter in hope that it will encourage other exporters to do more.

Have you ever wondered about the process of selling your goods abroad? Or are you thinking about it now while already having the product within your grasps? Good for you, we have 4 guides in terms of exporting your goods if you want to start fast.

First, you need to make a Sales Contract Process, an agreement between you as an exporter and the importer to do the trading consisting of terms of payment, price, quality, quantity, shipping method(s), insurance, etc. However, before entering the 4 steps, we need to ensure that you have done these processes.

One, you need to promote your products. You can promote your products at a fair, conference, or expo in order to attract buyers from domestic or international scale. Once you have attracted the buyers, now we can talk about exporting. Next, when a buyer is attracted, they will send a letter of inquiry to you covering description of goods, quality, price, and the shipping period. Once the letter of inquiry is received, you have to reply to it with an offer sheet, a letter that answers all of the inquiries from the buyers, in addition to payment method and sample/brochure delivery.

Then, you will make a sales contract with the buyer, covering the force majeure clause and inspection clause. The sales contract will be signed by the exporter and delivered in 2 copies to the buyer. When the buyer has already studied the contract and agreed, they will send the contract back with their signature on it as sales confirmation. Now, since you already have the confirmation sales, let’s move to base 2.

The importer will ask a foreign exchange (forex) bank to open Letter of Credit (LoC), a contract to secure the money sent to the exporter in accordance with the sales contract and confirmation. Then the forex bank will send the LoC to its branch in the exporter’s country to be scrutinized. The branch is called the advising bank. The LoC will later be used as a guarantee for export goods.

Lastly, you will order shipping from an export-import shipping company. You are required to make an export declaration at the Customs Office at the port and pay export and additional export duties to the advising banks. Then, your goods will be imported and the shipping company will deliver to you the shipping document, to be sent to your advising bank. Advising bank then will forward the document to the forex bank in the importer’s country.

How was that? Once you understand these 4 methods, exporting will not be a difficult matter for you.

Source: http://paktanidigital.com/artikel/4-langkah-tata-cara-ekspor-untuk-pemula/#.XR77BOgzbIU

Market , Investment , Export , Import , Economy , Forex