WHAT IS EXPORT?
A goods, the customs legislation with export regulations in force in accordance with the removal of the customs territory of Turkey or outside the free zone will be considered as exports by means other exit Or, undersecretaries and operations.
Exporter; exporters association on by trowel to be issued by a member of the general secretariat, real people with the identification number or refers to resident tax number with legal entities with effect although not having the legal entity status that granted the authority to make legal transactions pursuant to the provisions of the legislation partnership in Turkey.
HOW IS EXPORT MADE?
The sale of a good produced in a country to foreign countries in exchange of foreign currency. for the realization of export transactions must first have a product to be sold in the middle, after the legal or natural person who is resident and tax number in the Republic of Turkey to perform this operation (it is sufficient T. C. identification number of natural persons) is required.
If it is to be exported for the first time;
It is mandatory to register with the Customs Administration and the Exporters Union, all documents listed below are required for registration: Signature circular (for legal persons), statement of signature (for real persons), Certificate of Activity (for legal entities), Trade registry gazette (for legal entities), Tax liability letter (for legal entities), Power of attorney (in case of transaction through representation), Identity copy of the authorities.
Following the above-mentioned general practices applicable to all products, other transactions (invoice issuance, payment of the exporters’ Union fee determined according to the invoice price, preparation of circulation document, etc.) are carried out within the framework of the legislation to which the goods to be exported are subject.
TIPS OF EXPORT Preparation for Export
Before starting export, “export business plan” should be developed, Within the scope of export business plan; Products with export potential, advantageous aspects of the firm compared to its domestic and foreign competitors in the target market, target customers, sales tactics, ways to enter foreign markets, distribution channels should be determined, marketing strategy and international pricing strategy should be established.
Target Market Selection
When choosing a target market, sector-based market research should be done.
While conducting market research, attention should be paid to the following points;
The demographic, social, economic and political structures of target markets should be investigated, When determining the target market, information about geographic location should be taken into account, The industrial structure of the sector in the target market (production and consumption amounts of the exported product in the target market, the number of enterprises, etc.) should be investigated, The level of technological development in the target market, the use of goods produced with this technology in the sectors should be examined, The cultural structure, lifestyle, preferences and behaviors, attitudes and habits, income status of the target consumer should be determined, their needs and expectations should be determined correctly, Web pages on the internet can be used electronically to gather information about the market.
Information obtained from the target country’s statistical institution, export development organizations, chambers of commerce and industry, trade consultancies and other sources can be used. Ready-made data such as reports, studies and researches that can be provided free of charge or for a fee from research institutions abroad, national and international organizations, Competitors working in the same sector in the target market should be well known, their weaknesses and strengths should be determined, Information about licenses, standards and certificates in the target market should be obtained, Information on patents, trademarks and copyrights should be collected, Turkey agreement made between the target country and protocols should be examined, The status of the market’s transportation and communication infrastructures should be investigated, Taxes, fees, quotas and non-tariff barriers to be applied to the product to be exported should be determined.
Determination of the Target Product
Demand to the exporter may come from the importer or the exporter can determine the product (s) that he thinks will be profitable. When determining the product, the company should analyze its performance in terms of corporate, financial, marketing, capacity, etc. If the exported product requires after-sales service, the exporter must open a service in that country or find a distributor / agent that can provide these services. If the exporter does not have the financial or technical resources required to provide this service, the product may not be suitable for export.
Finding Customers and Promotion
Companies that want to find customers and promote their products abroad can create a good web page that will include topics such as their production capacities, quality control systems, and company references.
After the web page is prepared, its existence should be announced, Advertising can be made on the Internet or through publications such as commercial catalogs, It may be beneficial to attend fair and exhibition organizations, Product requests from abroad can be reached from the Ministry of Economy, Exporters Unions, Export Development Study Center, Istanbul Chamber of Commerce Newspaper, When promoting the product, attention should be paid to the labeling and packaging rules of target markets, Presentation and packaging are as important as the product itself.
While designing and producing the product, the habits and tastes of the target consumer group in that country should be taken into account.
Determination of Foreign Market Entry Method
It can be directly exported to the foreign market. Direct export is that the exporter does all the export transactions himself, without using any intermediaries.
In order to export directly, the exporter must create an export department in its domestic companies, Companies that want to export but do not have the necessary personnel and resources can export to the foreign market through brokers, agents, sectoral foreign trade companies, foreign trade companies, local purchasing offices.
Selection of Distribution Channels
Distribution channels differ according to countries and regions and reflect the development level of the countries and the standard of living of the people.
For this reason, when determining the distribution channels, exporters should consider the specific structures of the markets, the product and the features of the product, When choosing the distribution channel, the sales thought to be made by the channel and their costs should be compared, and qualified and equipped intermediaries should be selected, A company that exports directly to foreign markets can export through main agencies, distributors, marketing channels of markets, cataloged sales points, direct sales to the end user, and sales representatives.
Agencies, distributors, representatives not only represent the company against their customers, but also represent the country and businessmen.
Therefore, trading partners must be selected and followed very carefully, The type of vehicle an exporter works with depends on the product it will export, the market structure and the company’s objectives.
For consumer goods, agencies may be more suitable. The reason for this is that, thanks to their close relations with consumers, agencies can ensure that changing consumer demands and choices are immediately reflected to the exporter.
Distributors may be more suitable for the marketing of durable consumer goods and goods that require after-sales service, If your goal is not to sell once, you should also consider after-sales satisfaction.
The importance you give to the customer should be shown both with your service spare parts network and customer tracking.
There are many factors in price formation in exports. While some of these factors can be controlled (production costs, sales and distribution costs, marketing costs, advertising costs), some of them are difficult to control (price level in the target market, supply and demand situation, level of competition, market conditions) making pricing difficult.
Therefore, price decisions should be constantly reviewed and audited. The most important element of pricing in export is flexibility, Among the cost increasing factors when exporting; Sales commissions, letter of credit expenses, packaging costs, labeling costs, transportation costs within the country, insurance costs, translation costs for documents belonging to the product, costs for storage, and these costs should be taken into account when determining the price, Cost should be calculated by considering production, transportation, marketing, advertising costs, Competitor company analysis should be made, information should be obtained about the prices of the companies that export the same products, and the marketing techniques applied by the competitors for customers should be determined.
Prohibitions, Controls and Permits Regarding Exported Goods
The exporter must know very well the legislative features of the product he is considering to sell without sending an offer to the importer abroad.
List of Goods Prohibited to Export and Pre-Authorized, The List of Products with the Standard in Mandatory Application in Export, List of Goods Exported to Registration It should be checked whether it is subject or not.
First Transactions in Export
According to the goods to be exported, natural or legal persons who are members of the General Secretariat of the relevant Exporters’ Unions and have a tax number and partnerships that are authorized to make legal savings, although they do not have the status of legal entity, can export, After deciding on the product to be exported, “Customs Tariff Statistics Position (GTIP)” of the product should be determined correctly. You can find the GTIP of your product by examining the website of the General Directorate of Customs, Export is a team work. The team is mainly; It consists of a customs broker, carrier, insurer and banker. Care should be taken to organize the team by an experienced staff.
One of the most important stages of export is the preparation of the offer to be sent by the seller to the buyer. There are two main ways of submitting the proposal; Proforma invoice, Offer Letter.
1) Proforma invoice must definitely contain the phrase “Proforma Invoice”,
2) Proforma invoice must contain the quantity and characteristics of the product, unit and total price, packaging, payment method, account number, loading method, origin,
3) The information in the proforma invoice must be included in the bid letter. If a sample is to be sent, it should be specified in the offer letter,
4) The importer’s request should be responded to as quickly as possible,
5) The validity period of the price offer must be written.
Preparation of Sales Contract
While exporting, the preparation of a written contract has an important place in resolving any disputes that may arise between the parties and clearly revealing the rights and obligations applicable to each party. For this reason, a written sales contract should be prepared when exporting.
The sales contract should be detailed to include all aspects of the commercial transaction, The names and addresses of the contract parties must be specified in the contract, The contract must include the name of the product, its technical name, dimensions, standards, the conditions requested by the buyer, and the regulations regarding the samples, if any, The quantity of the goods should be indicated in numbers and letters, and the unit size should be written clearly, If the buyer and seller have agreed to inspect the product by pre-shipment surveillance companies, this must be clearly stated by indicating which company will be made in the sales contract and which issues will be included, The total value should be specified in numbers, letters and currency, Delivery conditions should be determined, a delivery method should be given according to international commercial terms (incoterms), If the sales price includes expenses such as customs tax and fees, it must be specified in the contract.
Who will pay the taxes should be clearly written in the contract, The place of shipment and delivery of the goods should be clearly stated in the contract, the date on which the delivery period will start should be clearly written, It should be stated how the transportation will be, Explanations regarding the packaging, label and signs that should be placed on the product should be included in the contract, The method of payment, the amount and currency must be specified, The amount of discounts and commissions, if any, and by whom will be paid, how and at what rate the commission will be calculated Transport insurance information must be included, The validity period of the product warranty should be stated, The conditions under which the failure to fulfill the contract will not create liability should be specified,
The legal remedies to be used in cases where the contractual obligations are not fulfilled, the law of the country under which the contract will be administered or if it is planned to be implemented, there should be an arbitration court.
Documents Used in Export Bills Commercial Invoices;
Commercial invoices, which are an account document sent by the seller to the buyer, in which information such as the type, name, amount, unit sales price, delivery method and total price of a sold good are declared, are issued by the exporter with a fiscal stamp or notarization.
It is an offer for the purpose of providing information, which includes the unit price, characteristics and sales conditions of the product by the exporter at the stage of the agreement.
It is the sales document issued by the seller on behalf of the buyer.
In the sales invoice related to the goods, the freight amount may be included in the cost of the goods or shown separately.
A.TR Documents; It is the document used in the export of industrial and processed agricultural products within the scope of the Customs Union Agreement. ATR Circulation
Certificate for Simplified Procedure;
Real persons and legal entities authorized by the Undersecretariat of Customs as “Approved Exporters” may be issued by the customs administrations or the organizations granted by these administrations and the customs administration may be authorized to issue A.TR Movement Documents without the need for visa procedures. and applying to the Undersecretariat (General Directorate of Customs) by filling the letter of undertaking.
Eur-Med Circulation Certificate;
It is the document used in bilateral or cross cumulations within the framework of Pan European and Pan European Mediterranean origin cumulation. Eur.1 Circulation Certificate; It is the document used in the export of goods covered by Free Trade Agreements and ECSC products, agricultural products of EU origin.
Certificate of Origin / Special Certificate of Origin;
It is a document that is certified by the Chamber of the exporter and shows the origin of the exported good. In order to benefit from the concessional customs rates applied by the countries within the scope of the Generalized Preferences (Preferences) System, a special certificate of origin (Form-A) must be issued for exports to these countries.
Document issued countries: Japan, Russian Federation, Belarus, Ukraine.
Document Regarding Not Being In The Arab Boycott List;
Companies that will export to Arab countries must apply to the Chamber of Commerce to obtain a document stating that they are not included in the Arab Boycott List.
As a result of the examination, the document prepared after it is determined that the company is not among the exporting companies boycotted by the Arab countries, is approved by the Chamber.
When the invoice requested to be submitted during the export and the certificate of origin, a stamp is printed on the back of the invoice and certificate of origin stating that the exporter company is not included in the Arab Boycott List.
It is a document that replaces the guarantee that allows the temporary acceptance of goods without being subject to customs tax. from the date they are given a validity period of 1 year with ATA Carnets Turkey Chambers and Commodity Exchanges (TOBB) authorized by petition of the rooms, letters of guarantee, undertaking, certificate of authenticity, signed the copy and type of goods to be exported circulars, ads, and provided with general submitted a list containing the unit price and returned to the room after being used.
The TIR Carnet, which can be obtained from the Chambers authorized by TOBB by the companies carrying out transportation in the TIR system, are the documents that provide customs tax coverage of the goods in the vehicles. TIR carnets are returned to the Chamber after the transportation process is completed.
It is made by the exporter in line with the information and instructions given by the importer and on the exporter’s account. In this way, commercial goods are insured against risks.
Parcel Curriculum List;
It is the list indicating the quantities of goods to be exported, their prices and the number of packages contained in the containers. Extensive information that does not fit in the invoice belonging to the parcel is included in this list.
The packing list includes how many goods are loaded on which vehicle, weight of each unit, package, sack and so on. It can be requested by customs administrations and by insurance companies in case of damage. Bill of Lading; It is a valuable document showing that the goods have been received for transportation and will be delivered at the destination.
It is the document that is demanded by Islamic countries for meat import and that proves that animal slaughter is in accordance with Islamic rules. This document is issued by the mufti offices. Radiation Certificate; Radiation Certificate is a document proving that agricultural products do not contain more than acceptable radiation or that they are non-radiation.
The importer can request a Radiation Certificate by informing the exporter that it will not accept more than a certain degree of radiation in a certain weight of agricultural product. The authority authorized to issue this document is the Atomic Energy Commission.
It is a document that shows whether the exported goods are suitable for health conditions. It is taken from the Ministry of Food, Agriculture and Livestock, the Ministry of Forestry and Water Affairs or the relevant departments of universities.
It is a necessary report that requires analysis, especially for food and chemicals.
Standardization Control Certificate;
An application should be made to the Regional Directorates of the Ministry of Economy in order to show that the exported goods are in accordance with the applicable inspection regulations and the mandatory standards in practice and that they are exportable. This document must be presented to the relevant customs during export.
Stock Exchange Registration Statement;
Exit declarations are sought before customs registration in order to withhold income tax from agricultural products to be exported on the List of Commodity Listed on the Exchange.
Documents Required in Customs Administration in Export Transactions The following documents are sought in customs in export transactions.
These documents must be prepared completely;
The invoice of the goods, If necessary, the packing list, Forest / Monopoly Transport License, “Health Certificate for Plants and Its Parts” showing that there are no diseases and pests in plant and herbal products, Control Certificate in Controlled Goods, In Goods Subject to Monopoly, Transport Permit Given by This Administration,
Permission Papers issued by the Competent Authorities for Goods subject to the Permission of the Relevant Administration, Agency or Company Document that informs the Arrival of the Transport Vehicle where the goods will be loaded when necessary,
Other Documents Required by Foreign Trade Regime and Decisions and Communiqués for the Protection of the Value of Turkish Currency: (Such as license, agency letter, registration statement, bank letter, commitment statement), Food List: (It is the document in which the food to be given to departing sea, land and air transport vehicles is registered. This document is accepted and the customs procedures are carried out on them.),
Standardization Control Certificate: (It is the document sought for the export of the products (pistachio, cotton, edible olive oil, bonito, etc.) whose output has been subjected to standardization control.
The exit of the mentioned items that do not have this certificate is not allowed by the customs under any circumstances.) Foreign Owned Eden Trip to the Country Temporary Exit Declaration and Undertaking: (residence with Turkish and foreign real and legal persons in Turkey, temporarily they will draw to a foreign country and will bring back the latest within two years, the certificate issued for their own vehicles.) (Tryptic or If the Customs Transition Carnet is not submitted.).
As stated above, the customs declaration duly drawn up to contain the necessary information and documents and signed by the exporter and, if any, the broker is registered in the exit manifest service of the Customs Administration in the exit registration book. With the registration of the exit declaration as specified, the process for export begins at the customs administration.
Closing of Export Accounts within the Framework of Foreign Exchange Legislation
Savings of export prices are free.
Procedures to be made after export in terms of VAT Applications in Exports
Export exemption in VAT application, the goods T.C. It will be declared in the VAT declaration for the period when it leaves the Customs Area, The taxpayers who export goods within the scope of exemption shall declare the amount related to deliveries within this scope in the export exemption section of the relevant period declaration. The following documents must be submitted to the tax office in order to fulfill the refund requests of the taxpayers in cash or on account;
2) Customs declaration (instead of the original or copy of the declarations, it is also sufficient to list them.),
3) Copy or list of sales invoices,
4) The table showing the value added tax list to be deducted for the period in which the export takes place and the calculations regarding the tax amount included in the exported goods,
5) Foreign trade capital companies and sectoral foreign trade companies are obliged to submit a list of value added tax to be deducted for the taxpayers whose exports they intermediate.
Payment Methods in Export Advance Payment;
It is a form of payment that requires the exporter to send the goods and the documents representing the goods directly to the importer in return for the buyer-importer to pay the cost of the goods to the seller-exporter through his bank.
In this form of payment, the exporter undertakes no risk. In terms of the importer, there is a risk of damage due to reasons such as not sending the paid goods by the seller or the goods sent are not suitable for the order qualification or not sent on time.
Payment Against Goods;
The exporter sends the goods to the importer without collecting the cost of the goods. In this form of payment, the exporter sends the goods and the documents certifying them to the buyer without any payment order, and the importer pays the price of the goods after a while. Here, the trust factor between the parties should be very strong.
Cash Against Documents;
After the cost of the goods is collected and the documents are delivered to the importer by the bank, the goods can be cleared from customs.
The exporter is more secure in this form of payment. Letter of credit; The Letter of Credit is a contingent payment guarantee and there are four parties in its operation: Supervisor (importer), Supervisor Bank (importer’s bank), Beneficiary (exporter), and Beneficiary Bank (exporter’s bank).
Buyers and sellers use this form of payment in order to make their agreements with the desired quality and under suitable conditions through intermediary banks.
When appropriate documents are submitted, the seller knows that he will receive his money and the buyer will receive the desired quality.