Import Export Guide for Beginners

Basic Concepts of Import and Export

Exporting is the activity of selling goods or services to foreign countries, generating foreign exchange earnings for the nation. Importing is the activity of purchasing goods or services from foreign countries to meet domestic needs. Both activities play a vital role in the global economy, promoting development and international economic integration.

Basic Import and Export Procedures

1. Document Preparation:

Required documents include: sales contract, shipping documents (Bill of Lading, Air Waybill), customs documents (Invoice, Packing List), quality certificates (if required), business license, import and export licenses (if required).

2. Customs Declaration:

This is the most important step in the import and export process. You need to accurately declare information about goods, value of goods, HS code to avoid penalties or detention of goods. Currently, customs declaration has been computerized, saving time and costs.

3. International Payments:

Common payment methods are L/C (Letter of Credit), T/T (Telegraphic Transfer), D/P (Documents against Payment), D/A (Documents against Acceptance). The choice of payment method depends on the agreement between the buyer and the seller.

4. Goods Transportation:

You need to choose a suitable transportation method (sea, air, road) and find a reliable transportation partner to ensure that goods are transported safely and on time.

5. Taxes and Fees:

Imported and exported goods will be subject to several taxes and fees such as import tax, export tax, customs service fees, transportation fees…

Choosing Import and Export Partners

Finding reliable and experienced partners in the import and export field is crucial. You should thoroughly research the partner’s information and seek advice from experienced people before deciding to cooperate.

Risks in Import and Export and Mitigation Strategies

Import and export involve many risks such as political risks, economic risks, transportation risks, and legal risks… To mitigate risks, you should thoroughly prepare documents, choose reliable partners, seek expert advice, and purchase insurance.

Conclusion

Import and export is a challenging but also potentially rewarding field. With thorough preparation and sufficient knowledge, you can succeed in this field.