Definition of Exportation of Goods and Services
Exportation of Goods (Lat. carry out of port) is the sale of goods produced on the territory of the Russian Federation to customers in foreign countries.
Entering the global market implies a step-by-step process of exporting products, services, intellectual property products from the territory of Russia and their importation into any other country of the world in compliance with legal norms, regulations, international rules. Customs authorities track how the freight crosses the Russian border.
Capital transactions, financing the construction of production facilities in the territory of a foreign country are also subject to the export procedure.
Peculiarities of Contract Conclusion
Conclusion of an international trade deal with a foreign company for the supply of goods or a specific service implies the discussion of terms, which must be included in the contract. It also stipulates the obligations of the parties, penalties, force majeure, the terms of the contract. Export documents are drawn up by the seller of the country of export.
It is recommended to describe the goods, services, consignment size, packing methods, the currency in which payment must be made, the way the buyer must make payments, whether advance payments are stipulated. It is necessary to clearly state the terms of delivery and acceptance of goods, the term of the contract, as well as correctly specify the details of both parties.
List of Documents for Export
According to the legislation of the Russian Federation, for the realization of export operations FEA participant must provide a set of documents, which includes:
- international contract drawn up in two languages: Russian and the buyer's language;
- an invoice for payment for goods, which contains the details of the seller, buyer, consignee (if the latters do not match), the date of shipment, bank details, cost, name, number of product units;
- packing list, which describes the gross weight, net weight, volume of product consignment, the number of places in the vehicle, the type of packaging;
- transport documents ‒ the names of required documents depend on the mode of transportation and the type of transport used;
- declaration – this is the fundamental document for the exportation of cargo, in which each category of products is classified according to the CN FEA (Commodity Nomenclature of Foreign Economic Activity (HS)) On the basis of it the calculation of customs duty and VAT refund is made.
Certificates of quality, conformity, safety, licenses and permit documents may be required for customs additionally. Veterinary, phytosanitary certificates are required for exportation of products of animal and plant origin. The list will differ depending on the type of goods. You should be guided by the Customs Code and federal laws of the Russian Federation.
Filling out the customs declaration and correct indication of the CN FEA(HS) codes often causes difficulties. Incorrect determination may lead to delay of the goods at the border, fines, and in some cases ‒ confiscation.
To successfully export your products from Russia, contact the professional declarants at MW-Trade company. For more than ten years we have been successfully carrying out export services and customs control operations for our clients.
Export Clearance Procedure
Export clearance is the slang term for the official description of export customs clearance. Export clearance operations are either carried out by a customs broker on behalf of the cargo consignor or by the consignor in person. First you need to get permission to send goods from the Federal Service for Technical and Export Control, draw up a set of necessary documents.
Then you need to submit a customs declaration, make the payment of obligatory payments and notify the authorized bodies of the arrival of products at one of the checkpoints. Customs officers checks the data directly at the border. If any violations are suspected, the customs officer inspects the freight and decides on its release or detention in the temporary storage warehouse until the violations are eliminated.
How to Transport Goods
There are several ways to transport goods: by air, sea, road, and rail. Combined (multimodal) option implies the use of two or more means of transport. Finding out which type will be suitable for you depends on the peculiarities of products, their cost, weight, volume, distance, and financial abilities.
The fastest way is considered the use of air transportation. The goods will be at destination within several days. As a rule, air shipments are used for urgent and valuable cargo. Delivery by trucks is a perfect option for places with good road infrastructure. For long distances, when the points of departure and receipt are separated by sea, the sea freight mode is suitable. It is also used for transportation of heavy, oversized, bulky freight.
Separate attention should be paid to groupage cargo transportation. When it is necessary to send a small consignment from Russia, the groupage method gives opportunity for significant cost savings.
When to Enter the International Market
In order to enter the global market with your products, you need to analyze the business, its processes, the viability of the product, its potential and demand for it among buyers. Below are some factors that will allow you to make a preliminary assessment:
- the demand for the product in Russia (here it is necessary to understand the sustainability of domestic demand);
- competitiveness in the foreign market;
- readiness of the business owner to organize export processes from scratch;
- financial resources.
After making a decision to supply goods abroad, it is worth analyzing the sales markets, take into account the possible restrictions of importing countries, the peculiarities of taxation, the nuances of the legislative framework, and cultural differences. It is important to work out the logistics, choose right means of transport, and meet the requirements of customs control.
What Russia Exports Most Often
Mineral raw materials and minerals constitute the greater part of exports. The list of the most frequently exported goods also includes:
- chemical, woodworking, pharmaceutical, metallurgical, agricultural products;
- equipment, engines;
- products of plant and animal origin;
- precious metals;
- rubber;
- plastic;
- software.
The main trade partners are Belarus, Kazakhstan, Germany, the Netherlands, Turkey, Asian countries: China, Japan, and the United States of America.
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