In this guide article prepared for companies that want to start exporting, what happens in an export operation is progressing step by step, how and in what order the export stages take place? What documents are used with your export operation? We will see how the shipment is organized, how and by whom the customs procedures are carried out.

Stage 1: The bid and negotiation phase between the exporter and the importer

It is the healthiest way to conduct the first negotiations between the exporter, namely the seller, the importer, that is the buyer, for the exported goods, even if you are meeting by phone or face to face, in terms of being written and registered, via e-mail.

In the event that the exporter company submits an offer form or proforma invoice to the approval of the buyer, namely the importer, which specifies the properties of the goods, the quantity of the goods to be sold such as quantity, kg, m2 and the measures used in pricing, and a consensus is reached, the purchase order or the proforma approved by stamp signature taking it is the healthiest way.

In the prepared proforma invoice, all the explanation and technical details, if any, of the product to be exported should be specified in a way that leaves no room for any dispute later on. Again, there should be sections related to export such as deadline, delivery address, name, address and contact details of both companies.

Making a contract that includes the general rules of the trade between the two companies, the expectations of the parties and the resolution and penalties of possible disputes will be binding for both companies. For example, a buyer who places an order with a deadline, specifies the latest deadline in the contract, determines the daily penalty for the delay and the exporter accepts this, the exporter's delays in the production process and if the shipment is organized by the exporter, the exporter company pays the determined penalty. (www.ihracat.co)

1a – Incoterms, “Determination of Delivery Method”

In order to use a common language in the export proposal form or proforma, it is necessary to specify the delivery forms (Incoterms) and the incoterms to be used. For example, if a company based in Izmir has given a delivery price at Izmir port, it should open a line titled "Delivery terms" in the proforma or offer form and specify it as "Incoterms 2010 FOB Izmir".

1b – Payment Terms, “Determination of Payment Method”

In your export proposal form or proforma, open a line titled "Payment Terms". For example, if you are working in cash, you should write "Cash In Advanced" here.

1c – Bank Details

It will be useful to include the bank account information of the exporter company in the proforma invoice. These details are entered by opening a line titled "Bank Details" at one point of the invoice.

Stage 2: Production, Procurement, Preparation for Shipment Period

The exporter company may be the manufacturer or supplier of the products it will sell. If there are quality documents and / or technical documents needed in the customs procedures and later stages of the products subject to the order, both in their own country and in the country to be exported, they should be prepared at the end of the production and procurement process. If the buyer company has different demands such as packaging, packaging, pallet or case, attention should be paid.

Stage 3: Shipment, Exit Customs Procedures

Considering the dispatch date of the products, if the export is made with an Ex-works or Incoterms F group incoterms, the Buyer company should be informed to organize the vehicle. In Exworks shipments, customs clearance in the exporter's country also belongs to the buyer.

 In general practice, the buyer company pays this amount separately or a line is added to the invoice as customs charges. The exporter company organizes the internal shipment if the material will be loaded at a port in F group exports. It provides the recipient's shipper with a packing list and gives the necessary information to prepare a bill of lading or CMR.

In Incoterms C group exports, the exporter company undertakes to transport the material to a port or address in the buyer's country.

In Incoterms D group exports, the exporter is responsible for all costs, including customs charges in the buyer's country, and DDP exports, including paying local taxes.

Stage 4: Documents to be Prepared by the Exporter

The exporter company prepares an e-invoice, English invoice and packing list in order to complete the customs procedures in its own country and then complete the customs procedures in the country of the buyer. On the other hand, it shares the necessary information for the customs broker to prepare documents such as origin, ATR, EUR1, and to open a declaration. 

• E-invoice (Compulsory)
• English Invoice (Required)
• Package List (Required)
• Certificate of Origin (mandatory)
• TR, EUR.1 (Provides tax exemption for exports to the relevant countries)

Bill of lading is prepared for cargo to be transported by ship or plane, and CMR is prepared for cargo to be shipped by truck. The shipping companies prepare these documents, the exporter company must share the information included in the content of these documents such as product name, GTIP number, number, weight, container number, shipping address, contact details of the recipient with the transporter and check and confirm the draft status of the documents.

Stage 5: Submission of the Export Document Set to the Buyer

The bill of lading prepared by the shipper according to the information received from the exporter in maritime exports is the "Bill of Lading" document, which is the transport bill of the goods. It is loaded and printed when the ship leaves the port in the export country.

5a- Sea freight shipments

After the shipment, the exporter company sends the bill of lading, English invoice, package list and the document set consisting of the origin to the buyer company via international courier companies. According to the country where the buyer company is located, sending documents such as A.TR, EUR.1 is important in order for the buyer to benefit from tax exemptions. In addition, if the buyer requests, various documents such as quality documents, surveillance certificate, technical documents should be sent.

5b- Road shipments

In road shipments, a document named CMR corresponding to the bill of lading is attached to the document set consisting of the English invoice, packing list and origin. In shipments made by road, the original documents go with the driver with the vehicle.

Stage 6: Customs and inland shipping in the recipient's country

If the exporter company has agreed with the buyer to deliver the exported goods to the buyer's warehouses, for example, if the delivery method is CIP or DAP.

For example, if a container shipment has been made by ship. Inland transportation process from the port where the container is unloaded to the address of the recipient in the buyer's country is under the responsibility of the exporter.

If the delivery method is DDP, customs duties and local taxes such as VAT in the country of the buyer are also the exporter's obligation.

Stage 7: Closing the Export File

An export operation, whose shipment process is completed, the exported products are delivered to the buyer, the export price is collected, and there is no damage or quality complaint regarding the exported products, is completely closed.

In the first stage, the expense receipts and the declaration regarding the exported export file are sent to the exporter by the customs consultant upon the closing of the declaration.

The exporter company takes copies of the bill of lading and other original documents to be added to their file before sending them to the buyer company. If any, invoices for costs that may occur later, such as freight invoice, bill of lading, warehouse, demurrage, foreign tax payments, are also compared with the initially anticipated costs after the completion of the exportation. In the last stage, the unit costs estimated at the beginning and the final costs are compared.