A company that is able to export its products, in addition to conquer new markets, can enjoy some advantages that few look closely. Therefore, this post is to show the step by step of how to export a commodity.
"Exporting is super advantageous for business because sales are usually made in dollars or other currencies that increase the profit margin considerably. Also, taxes are generally not levied on exports, as is the case with the drawback operation, where you import products with tax suspension, which can result in an even greater gain in margin," says Pedro de Souza, Operational Manager of the Pinho Group.
But before thinking about exporting, the company needs to know deeply all the steps to export with safety, agility and quality. Check it out:
1) Gather the necessary documentation
Because it is an international process the list of documents is extensive, but if your company has no pending tax issues, you will not find problems to gather the necessary documents. Each product may require specific documentation, but the main documents are:
● Registration as an exporter in RADAR/Siscomex;
● Registration of purchase intention by the importer;
● Exchange contract;
● Pro forma invoice templates; and
● Export contract documents.
2) Make register in Siscomex to be able to export
Once your company is regularized before the tax authorities, the Sefaz of your state and the Board of Trade (Jucerja), it is necessary to register as an exporter in the Register of Qualification in the Environment Registration and Tracking of the Actions of Customs Interveners (RADAR).
Depending on the type of goods that your company exports, it may be necessary to make the registration in one of the specific systems that are on the website of the Integrated System of Foreign Trade (Siscomex).
3) To know the Incoterms
The Incoterms (International Commercial Terms) serve to guide / define the rights and obligations of the exporter and importer within an international purchase and sale contract.
There are 11 terms, where each one has its specific purposes:
1. EXW - Ex Works - At Origin (named place of delivery)
2. FCA - Free Carrier (named place of delivery)
3. FAS - Free Alongside Ship (named port of shipment)
4. FOB - Free On Board - Free On Board (named port of shipment)
5. CPT - Carriage Paid To (named place of destination)
6. CIP - Carriage And Insurance Paid To (named place of destination)
7. CFR - Cost And Freight (named port of destination)
8. CIF - Cost, Insurance And Freight (named port of destination)
9. DAP - Delivered At Place (named place of destination)
10. DPU - Delivered At Place Unloaded - Delivered At Place Unloaded (named place of destination)
11. DDP - Delivered Duty Paid (named place of destination)
Contact us for a complete consultancy in all export processes.
4) Develop an integrated export strategy
At this stage, understanding and knowing in depth the import culture of the country that will receive your goods is fundamental, as well as the customs legislation of the destination. Without this security, you run serious risks of facing problems.
When setting up the strategic plan you will understand the costs involved in the export process to define the best route and transport modal for your cargo to arrive safely and within the established deadline.
Tip: Invest in the assistance of a freight forwarder. He will be able to show you accurate information of the export process of your cargo, ensuring a better cost-benefit of the operation.
5) To know the Drawback system
The Drawback regime is becoming more and more important in the Foreign Trade market. A practically obligatory regime for those who wish to export products with great competitiveness.
Simply put, the main benefits of Drawback are tax and financial. Since there is no collection of taxes, there is a reduction in charges and financial/tax costs, which directly influence the company's cash flow.
Therefore, it is a great way to gain competitiveness in the international market.
6) Accompany the product after shipment
It may seem obvious, but we need to reinforce the importance of you thoroughly monitoring the entire process, even after the confirmation of shipment of your cargo to the destination country. This follow-up is essential to ensure that the cargo will reach its final destination and within the stipulated deadlines.
If you identify any problem during this stage, you can then take the appropriate action with those involved in the operation, either by triggering the cargo insurance, informing the client about the real situation or providing the necessary documentation for customs clearance.
As we can see, exporting does have some complex details, however, with the right consulting, you can worry only about the quality of your product, the rest we can take care of for you.
Are you interested in starting to export? Contact us in the form below.