There are various types of exports, and different regulations apply depending on whether you're exporting within or outside specific customs areas, such as the EU. In this article, we talk more about what export is and the meaning of export. We will also go through concepts such as value-added taxation for exports and how exports affect GDP.
WHAT DOES EXPORT MEAN?
What does 'export' mean? When a country exports goods, it sends them beyond its borders to be used or sold in another country or region. Let's explore the concept of export from the basics.
SO WHAT IS EXPORT?
Export means that a good or service is transported out of a country. Within the EU, there are no customs borders between the member states; instead, a common customs duty is applied to countries outside the Union.
Generally speaking, exporting means that goods are sent out with a final purpose. On the other hand, there are also temporary exports, when goods are temporarily exported for purposes such as exhibitions or displays and are planned to be returned to the same condition. In addition, goods can be exported for processing or repair and can be returned after undergoing the necessary processes. The processes are regulated by various international and national regulations to facilitate and monitor the transfer of goods across borders.
Do you want to learn more about importing? Read our article: What is import?
WHAT DOES EXPORTING MEAN?
Exporting is the actual process of selling and transporting goods or services.
Read also: International shipping: A comprehensive guide to what international shipping is
DIRECT EXPORT
What is direct export? You carry out a direct export when you register your goods for export in a country where the goods leave your region or customs area. The export customs office and the exit customs office are located in the same country. Direct export includes the following situations:
- When the export begins in your country and the goods are transported to a destination outside your customs area or region.
- When using a single carriage contract (a through-way shipping document), your item is transported to another location within your region before ultimately leaving the area. In this case, it's important to note that the transport does not end with road transport.
INDIRECT EXPORT
What is indirect export? Indirect export is when you register your goods for export in one country but leave the customs area or region through another country. In this scenario, the export customs office and the exit customs office are located in different countries, meaning the export process involves two distinct national customs authorities.
Indirect exports may involve intermediaries, like an export company, which facilitate the process in the country from which the goods ultimately leave. The exporter must meet the export requirements and regulations of the destination country outside the customs region, while also taking into account customs procedures in the transit countries.
EXPORT WITHIN THE EU
There is a difference between exports within and outside the EU. There are largely export regulations that differ within and outside the EU. Within the EU, goods typically move freely across borders. However, there are some exceptions. There may be different product requirements for the goods to be exported.
Read also: What’s driving the 2024 increase in shipping costs?
VALUE-ADDED TAXATION OF EXPORT TRADE
Value-added taxation of export trade means that sales of goods to countries outside the EU are exempt from VAT. Customs perform an export-confirmed transfer decision after the goods have been exported. With this document, the seller can prove VAT exemption on sales to the tax authority of the Member State where the seller is established.
CUSTOMS RULES
Customs regulations govern the export and import of specific goods, with variations depending on trade policies, environmental protection, health, and safety standards. Special restrictions may be imposed to ensure compliance with these aspects.
Examples of goods with special customs rules include:
- Agricultural products
- Food
- Cultural objects
- Chemical products
- Radioactive waste
- Animal products and live animals
- Endangered animals and plants
- Drug
In addition, goods containing ozone-depleting substances, such as spent refrigerants in refrigerators, freezers, or air conditioners, are subject to specific customs rules. For further information about the rules regarding these goods, you can contact World Customs Organization.
It is important to be aware of and follow customs regulations to avoid problems with the import and export of the above-mentioned goods.
WHAT IS AN EXPORT DECLARATION?
An export declaration is a necessary and statutory process for companies and private individuals dealing with exports. Below are some reasons why the export declaration is important:
Monitoring of export restrictions and bans: The customs authority in the exporting country uses export declarations to monitor and control any restrictions and prohibitions that may apply to specific export goods. It helps ensure that exports comply with applicable laws and international agreements.
Statistical data on foreign trade: Export declarations provide important information used to collect statistics on foreign trade. The statistics are needed to analyze trade flows, identify trends, and make informed decisions to promote economic growth and stability.
Combating terrorism and international crime: By closely monitoring the export process, customs authorities can help prevent goods from being used for illegal or criminal purposes. It could be, for example, the financing of terrorism or the smuggling of prohibited goods.
Determining the correct customs duty: In some countries, export duties may be levied on certain goods. The export declaration serves as an essential document to determine the correct customs duties and ensure that the exporter pays the correct duties as required by law.
Monitoring of exit from the EU: For EU countries, the export declaration is relevant to monitoring and controlling the export of goods from the EU. This ensures that goods follow common rules and standards when exporting to other countries.
Feeling overwhelmed? Don't worry — Bertling is here to assist with your export declarations and ensure smooth transport. Contact us here.
BERTLING OFFERS FREIGHT OPTIONS FOR EXPORTS
Bertling is specialized in logistics and freight transport. We offer customized global transport solutions and a high degree of flexibility in our configurations. To work proactively and to meet new conditions when they arise is our vision. Regardless of whether you are exporting goods within or outside the EU, we can offer the best transport option for your cargo.
See our freight options; sea freight, air freight, road freight, and rail freight.
