There are basically three stages of foreign trade. These are called export, import and transit trade. The following are the advisory services that we provide in the 3 stages of foreign trade;

1- Export Foreign Trade Consultancy

• Letters of Credit
• Market Research
• Government Support
• Product Research
• Inclusive Processing Permits

2- Importing Foreign Trade Consultancy

• Special Permission Follows
• Letters of Credit
• Product Research
• Tax Planning
• Logistics Services
• Investment Incentive Document
• Exception Processing Permits
• Used Machine Permit Documents
• Control Document Operations

3-Transit Foreign Trade Consultancy

• Payment Systems Organization
• Document Editing Services
• Logistics Planning

Foreign trade, otherwise known as international trade, can be defined as the exchange of goods or services between international borders and regions.

Foreign trade is divided into:

1. Export (export)
2. Import (import)

Although exports may seem more important and patriotic than imports, foreign trade is bipedal in terms of the country's economies. The fact that one foot is short means that the country is going erratic.

If your exports are excessive and your imports are relatively low, this means that you are entering foreign currency into your country, but it may mean that your export items are low in value, that you are increasingly consuming and that one day you have a resource that will be completely depleted, that you are a fasonist of major brands in developed countries, or that you are clearly exploited; we can multiply the possibilities.

In the opposite case, however, as a country whose imports are higher than its exports, if your currency is not dollars, euros, pounds, or francs, it may indicate that your production (goods and technology) is scarce and that you are a country that cannot sustain your existence without being dependent on the outside. Now let's talk about two separate branches of foreign trade. Of course, when we say foreign trade, there are two things that we visualize in our minds: imports and exports.

1- Export (Export)

It is the removal of a property or economic value outside the country (the customs area) or region (free zones) in accordance with the applicable export legislation and customs legislation. At this stage, we can divide exports into indirect and direct exports.

1. Indirect export, we can say that the business carries out exports with a self-independent intermediary institution. Examples of these include foreign trade companies, brokers, exporters and importers, foreign national representatives, exporter associations and cooperatives, export management companies, etc.
2. Direct exports are called for manufacturers to sell their own products and services without using the vehicle.

 

Export General Stages:

1. Acquisition of the Exporter title

• First of all, starting a first business company: earning the title of merchant, becoming a taxpayer
• Membership in the relevant Exporters Association
• Notification of the taxpayer's writing and company documents to customs (to the customs to which the export will be made) is mandatory

2. Market research and customer identification
3. Negotiating with the customer and ensuring the agreement
   Although it is an excellent advantage to know the language of the customer's country in order to communicate with the customer, it is unlikely to know all languages, but English, the most common language in trade, must be learned so that you can reach potential customers all over the world.

During the negotiation phase, negotiations are mostly conducted via e-mail. In this way, all of the interviews you make are recorded and, if necessary, you can return to your old correspondence and get the information you need back. The downside of phone calls is that you don't have a record to go back and look at.

The details to be discussed are generally as follows:

• Issues such as the quality and technical characteristics of the product to be exported
• Quantity-price negotiation of the product
• Packaging and master's packaging
• Forms of delivery
• Forms of payment
• Asking for required documents in the customs of the importing country
• Organizing surveillance reports if needed
• Other details on the subject

If an agreement is reached in the negotiations, a proforma invoice is prepared by the exporter (we) and sent to the recipient in an e-mail environment to check and approve it. If the form of payment in the agreement reached is determined as an letter of credit, production should not be started until the acquisition text about the letter of credit is available to us.

4. Preparation of goods for export
5. Preparation of related documents (vesaics)

Preparation of export documents, delivery of goods to the transport vehicle (logistics) and customs clearance are carried out simultaneously.

The documents that must be prepared for Turkish customs are the main documents (which will tell you the necessary documents when you ask your customs counsel) if we exclude the extra requested documents in some products:

• Customs declaration (your authorized customs consultant will prepare it for you)
• Turkish invoice
• List of Turkish cheques
• If your recipient has a Free Trade Agreement (STA) or Customs Union Agreement between his country and Turkey, the Circulation Document will be added to the documents. If the agreement is a STA, the required circulation document is EUR-1 (e.g. Israel, Tunisia). If there is a Customs Union agreement, the required paperwork for circulation is A.TR. (e.g. Germany, France). Since your customs consultant will also issue these documents, there is nothing you need to do. Once the transaction is complete, your customs consultant will then deliver the documents to you along with his/her service invoice.

If you are not sure what the paperwork needs to be prepared for the importing country, you can find out by asking your buyer. The basic documents are:

• The delivery method is CIF, CnF if you have agreed to one of the Consignment, CMR, CIM, Airline consignment documents. (your logistics services provider will arrange this document, you have nothing to do). If you have agreed on the delivery method as FOB, your buyer's logistics agent will arrange it.
• English bill (you can make a draft similar to your official bill into documents by preparing it in excel, word etc.)
• English Check List (Packing List)
• Relevant circulation document (A.TR, EUR1)
• The Covenant of Origin (Certificate of Origin – CeO)
• Other documents required
• Plant Health Certificate (if the product to be exported is unprocessed agricultural product)

6. Shipping phase

While the above mentioned vesaiks are being prepared, there is also a loading organization. Let's assume the transport will be by ship. If FOB is the agent that your recipient has sent you information from, CIF or CnF is the agent that you have agreed to. It is loaded from the factory to the truck and sent to the port to be loaded onto the ship where the agent has received the reservation in your name under your approval. Now the business is between your agency and customs office. It is then transferred to customs. Meanwhile, the document representing the ownership or burden of the property is delivered to the exporter (you). These documents include:

• Sea and air transport: consignment
• In road transport: CMR
• In rail transport: CIM

The documents in question are delivered to you to be given to your importer, or sent to your buyer on your behalf by an agent or bank on your instructions.

7. Customs clearance

Customs clearance is also carried out at the same time as the above operations are carried out. In order for your customs consultant to be able to process the customs of the issue loading, you must have informed your customsman in advance by submitting the ship detail and invoice. The documents you will send to your customsman are generally:

• Turkish invoice
• Checklist

After submitting the documents, your customsman will provide the declaration and other necessary documents (circulation document, etc.) and arrange them in your name and submit them to the customs. Meanwhile, the consignment is prepared by the shipping agency, and your container is now free to leave the customs border. Customs checks the documents and allows the goods to go abroad, and the actual export (in-touch) is carried out. The date of closure of the declaration is taken into consideration by the administration where customs clearance is made in practice for the In-touch date.

The stages I mentioned above give a general idea of how the export process is done. If you look at the issues mentioned in other articles, you will learn more about exports.

Let's go to import...

2-Import (Import)

We will not dwell on exports as much as we do when processing imports because imports are in a way the opposite of export transactions and we take exports to our focus, but it is also useful to know. Since countries do not have the capacity and ability to produce all the products consumed around the world, it is also natural for them to supply pencils from outside, such as the raw material they need, the finished product that appeals to the end user. As a result, if we close ourselves to imports by acting on the logic that our money doesn't go abroad, in a way, we have isolated ourselves from the world. Today and in the past, all countries with a strong economy have an important role in global money circulation, not only with their exports but also with their imports. The developed countries with a strong economy owe their wealth to outsourcing in a way. The production locations of the famous brands we consume today are in developing, underdeveloped or underdeveloped countries, as you know. Countries such as the United States, the United Kingdom, and Germany are at the top of the list on an import basis as well as exports. In short, we can say that 100% of the rate of importing is desirable in terms of foreign trade.

Imports are the making of de facto imports of a goods or economic value within the framework of the current customs legislation and related regulations, and transferring the import amount to the exporter country within the framework of the exchange legislation, except for free imports. We can also divide imports into three, priceless, free and temporary imports.

1. Bedelli import: It enters the import described above.
2. Free import: It is said that the imported goods are not transferred abroad. Various reasons can be counted, such as items that come free or the price being paid abroad.
3. Temporary import: Items entering our customs borders are called to remain within the Turkish customs limits for a certain period of time without entering free movement and without paying taxes – or paid in part.

General stages of import;

1. Acquisition of the importator's title
2. Finding of the Exporter
3. Negotiating with the supplier and ensuring the agreement
4. The arrival of documents and goods
5. The delivery of goods by customs

Please contact for detailed information.

Gökhan EROL
e: gerol@inovakademi.com
g: +90 (533) 761 19 34
t: +90 (216) 709 73 32