Differences between export and import

The international trade of a country with other countries is referred to as import and export. The word import refers to international trade where a country buys goods and services from another country, while the word export refers to international trade where a country sells goods and services to other countries. The differences between export and import are derived from this definition and concept.

The process of exporting goods

Now, we will discuss the process of exporting goods to understand the differences between export and import in the way they are implemented.

1. Request receipt: Buyers send inquiry requests to all potential sellers. The seller is obliged to send the price of the order and the conditions of sale in response.
2. Receiving the order: In case of agreement, the buyer will send you the order receipt, which includes the information about the order.
3. Buyer’s credit inquiry;
4. Obtaining an export permit: To ship goods, the exporter must obtain a permit.
5. Production: The goods are produced according to the buyer’s needs.
6. Certificate of origin: Certificate of origin is sent to the importer to confirm the production of goods in the country.
7. Reservation of shipping space with the exporting company: You must coordinate with the shipping company in advance and inform them of the type of goods, quantity, shipping date and delivery destination, etc.
8. Preparing the order and packaging to send to the shipping company: After the order is ready, you must pack the goods so that they are not damaged during transportation and mention the destination address and the type of goods on the packaging.
9. Insurance: When transporting goods, you can secure your shipment from natural disasters or accidents with insurance. Therefore, you should insure the goods to avoid future losses.
10. goods clearance;
11. Receipt receipt: The receipt is issued by the port supervisor when the goods are loaded.
12. Invoice production: after sending the goods. You must prepare an invoice to send to the buyer.
13. Receipt of fees: After delivering the goods to the buyer, you are required to receive documents such as invoices, bills of lading, certificates of origin and letters of credit, etc. These documents are delivered to the seller in exchange for the invoice.

Differences between export and import

• The definitions show the simplest and main differences between export and import. As discussed, import means that a country buys goods and services from other countries for domestic use or sale in the domestic market, while export means that a country sells its goods and services to other countries.
• The import of goods and services is done to meet the country’s needs, but the export of goods and services is formed to be present in the world market.
• One of the most important differences between export and import is its financial discussion; High imports are detrimental to a country’s economy, while high exports will be beneficial to a country’s economy.
• High imports indicate high demand in the country, but high exports indicate a trade surplus in a country.
• Import is a cost for the country, but the country earns through exports.

final word

Import and export concepts, processes and differences are important in all countries. Countries should export the goods they can produce and import products to meet the country’s needs. In order to have a growing economy, every country should have more production and export in its agenda than imports.

Basically, there are two methods for exporting and importing goods and services; The first method is direct, in which the company directly communicates with buyers or suppliers abroad and performs all the legal formalities related to transportation and financing. But in the second method, which is done indirectly, the companies have very little participation in the operation and the intermediaries do all the tasks. Therefore, in indirect import and export, companies as suppliers and sellers do not interact directly with each other.