SHARE WITH FRIENDS:
Import and export
Plan:
General information about imports
-
General information about exports
-
Import and export strategy
Import and export stratеghee
A potential importer should consider two types of directions: procedural and strategic. Processing includes customs regulations and laws related to the import transaction. A person who does not have contact with certain import organizations, who does not have experience in processing documents, cannot carry out import operations. In this case, an import broker will help the importer. The broker processes all the documents related to the import. Bill of lading is a document called bill of lading. The bill of lading is served in the following form:
-
a permit issued by a transport forwarding company to deliver the product to the destination;
-
contract on the service provided by the transport forwarding company;
-
a document giving the right to ownership of the product.
The strategic vision will be evident in the long term. Many firms try to acquire raw materials, services and products of foreign firms. The main reasons for this are:
-
price and quality of products, raw materials;
-
quality of service and delivery time of raw materials;
-
modern technology;
-
communication with foreign companies that are branches of the parent company (for example, General Motors buys spare parts from its branches in Japan and South Korea).
One of the strategic problems of importing is the production of products by foreign branches of the parent company. In 1986-1990, 36% of US export-import transactions were with American firms and their foreign affiliates. This is called an internal intercompany agreement. The emergence of domestic inter-firm import is the technological improvement of the product and the use of high-level technologies.
There are certain difficulties in using the services of foreign suppliers from the above-mentioned benefits or benefits. It consists of:
-
evaluate the quality of their work;
-
timely production and delivery of products, raw materials;
-
the size of the distance makes it difficult to work together;
-
political, legal, economic and social challenges;
-
poor quality products and their return problems;
-
fees and charges.
Foreign trade zones (TSZ, foreign trade zones) or free trade zones (ESX) are also common in the world. Free trade zones are most developed in the United States. Their organization is provided by a special law of 1934. Its purpose is to stimulate trade, speed up trade operations, and reduce trade costs. Such zones are limited areas within the territory of the United States, within which preferences are established for the general economic regime, including foreign economic activity. The law stipulates that at least one free foreign trade zone can be established under each official port. According to US legislation, free trade zones in the country are divided into general and special (sub-territorial) zones. Common areas are located in a small area (several square kilometers) and are outside the national customs territory. Placement and processing of the goods entered in them is carried out (packaging, sorting, etc.). Sub-regional activities are organized for individual large companies that go outside the general area. Subregions produce goods for export or import substitution. By the mid-90s, there were about 500 free trade zones in the United States.
Special "duty free" stores at major international airports can be added to the list of normal free trade zones. From the point of view of the regime, they are considered to be outside the borders of the state. Free trade zones include traditional free ports with preferential status. Industrial production zones are considered second generation zones. They were created as a result of the evolution of free trade zones due to the fact that not only goods, but also capital are imported into free trade zones, and they are engaged in not only trade, but also production activities. Industrial production zones are organized in zones with a special customs regime. They produce goods for export or import substitution. These areas will receive significant tax and financial benefits.
Export production zones (EPZs) are especially common in developing countries. The modern model of such zones is based on the territorial system established in 1959 at Shannon Airport in Ireland. The greatest effect was obtained from such areas in the "newly industrialized countries". The logic of organizing export production zones was determined by the economy of developing countries. In the mid-60s, there was a need to stimulate industrial exports and increase the level of employment with the help of foreign capital flows.
TS3 organized for export in the USA is classified by product types as follows:
-
foreign goods imported before being shipped to a third country;
-
foreign products that are processed and sent abroad;
-
products manufactured from imported materials and raw materials and destined for export;
-
products manufactured from domestic and foreign raw materials and spare parts, then exported;
-
domestic (domestic) produced products in movement in the zone before obtaining export status.
In 1975, there were 27 such zones in the USA, and in 1991, their number reached 176, and the volume of import operations through these zones increased several times. An example of this is "Coastal" corporation in the state of Texas. This corporation imports and processes oil in TS3. He does not pay customs duties at all when he exports oil products (without leaving this zone). If he sells oil products inside the US, he will save $250 more. This corresponds to the calculation of interest rates of duty payments collected until the product leaves this zone. "Smith Corona" company "Smith Corona" assembles a printing machine from foreign parts in TS3, and then imports it to its (USA) country duty-free.
The export strategy consists of its main component, the strategy of locating production and supply sources, and the sales strategy, whose main objective is to supply finished products to markets in different parts of the world. Firms operating internationally often try to export their products. The following advantages and excellent results are achieved in export activities:
-
the volume of sales is increased;
-
it helps to realize the efficiency of production scale;
-
is an operation or activity that is less risky than an investment in other countries;
-
to allow different placement of the company's production capacities
Organization of export strategy. People who are just starting out in export activities may make the following mistakes when solving the problems they face:
-
not being able to attract a qualified export specialist in drawing up an international marketing plan before starting export activities;
-
lack of experience in selecting foreign agents and wholesalers;
-
lack of importance to export activities during economic booms;
-
not being able to do business with foreign wholesalers;
-
refuse to modify the product in accordance with the cultural needs of other countries or do not hesitate to do so;
-
driving the world out of the order-taking process from its voluntary country without thinking about creating a permanent profit base in the future;
-
inability to convey service, commercial and warranty documents to foreign partners in a clear and simple language;
-
not being able to actively use agreements on the establishment of a license or joint venture.
-
Strategy development. This activity consists of several steps:
-
assessment of export potential;
-
receiving assistance and consultation from exporters engaged in export activities;
-
selecting a market or markets;
-
determine the near future goal and carry out the introduction of their products into the selected market or markets.