General Operating Mechanism of Foreign Trade (International Trade)

International trade can be defined as the exchange of products and services across the borders of different countries. This complex process promotes the expansion of the world economy and plays a vital role in the network of international relations. In today’s global economy, foreign trade activities are important not only for national economies but also for companies and consumers. The interdependent activities of exporters and importers directly affect countries’ economic growth rates, employment levels, and diversity of consumer choices.

The functioning of international trade is deeply linked to the functioning of the market mechanism, both theoretically and practically. The market mechanism refers to the free movement of goods and services, an environment where prices are determined by supply and demand. This situation is directly reflected in the functioning of the price mechanism and therefore foreign trade earnings.

Export and import stages can be listed as follows:

1. Market Research: The first step of the exporter and importer is to determine the target markets.
2. Principles and Rules: International trade laws and regulations must be understood.
3. Financing of Trade: Financial resources required for the purchase or sale of products must be provided.
4. Agreements and Contracts: Commercial agreements must be made with buyers or sellers
5. Customs Procedures: Customs procedures must be followed during the movement of products between countries.
6. Logistics Planning: Transportation and distribution must be planned effectively.
7. Payment and Delivery: Payment and delivery terms should be clarified based on mutual trust.

However, a country’s international competitive strategy determines how that country is positioned in foreign trade and in which sectors it will gain competitive advantage. For example, some countries may be rich in natural resources, while others may have a competitive advantage in high-tech products or the service sector.

The functioning of market conditions is shaped by local, regional and global economic dynamics, especially in the context of international trade. Factors such as political stability, economic policies, infrastructure quality and workforce quality in a country directly affect that country’s foreign trade performance.

Finally, strategic trade policy is a set of policies and regulations that direct and protect a country’s foreign trade activities. Tools such as tariffs, quotas and subsidies help protect national industries and create competitive market conditions.

This framework reflects the scope and complexity of foreign trade. As integration between economies increases, the performance of countries in foreign trade is shaped by developments in the international system as well as their own internal dynamics. That’s why international trade experts have to develop flexible and knowledge-based approaches in the ever-changing global trade environment.

The functioning of international trade is based on the exchange of products and services between countries. Foreign trade is one of the cornerstones of the global economy and makes significant contributions to the economic growth of both exporters and importers. Here is a general summary of these processes:

🌍 International Competitive Strategy: Every country develops a specific competitive strategy to gain advantage in the international market. This could be innovation, cost leadership or differentiation. The operation of international trade is shaped according to these strategies and affects foreign trade earnings.

🔄 Function of Market Mechanism: Market mechanism includes the free movement of goods and services within the scope of foreign trade. Prices are determined according to the laws of supply and demand, and this forms the basis of the functioning of the price mechanism.

📈 The Functioning of the Price Mechanism: Prices are directly related to the balance of supply and demand during international trade. Prices affect import and export volumes as a reflection of market conditions.

🚢 Stages of Exporting and Importing:

1. Conducting market research.

Making agreements within the framework of the relevant principles and rules.

Arranging resources for trade financing.

Completing customs procedures.

Planning logistics and transportation.

🔁 Function of Market Conditions: Market conditions include supply and demand trends in international trade, economic stability and the political situation. These conditions play a critical role in determining the strategies of exporters and importers.

📜 Strategic Trade Policy: Countries implement strategic trade policies to improve the trade balance and protect their economic interests. These may include tools such as tariff walls, quotas and subsidies.

Foreign trade is also an important tool that enables countries to strengthen their position in the functioning of international trade. The basic stages of exporting and importing and the difficulties encountered are important factors in shaping trade policies. In order for countries to be successful in foreign trade, they must constantly develop strategies to understand the needs of exporters and importers, to optimize foreign trade earnings, and to maintain competitiveness in global markets. They need to re-evaluate.

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Exporting Process

The export process begins with taking an order and after a meticulous market research, preliminary meetings and correspondence with potential buyers. em> continues. At this stage, companies hold price negotiations and negotiate the quality and cost structure of the products. During the export operation, payment and delivery methods are determined and payment method agreement on is reached. Export mode and delivery mode negotiations are factors that directly affect the logistics part of exports, and these negotiations are carried out based on negotiated trade terms (Incoterms).

The second stage includes preparation of documents and production/preparation of the goods within the export operation stages. At this stage, all required “documents to be used for export” must be prepared completely before delivery of the product to the buyer. When production is completed, the necessary customs procedures and export customs procedures for the products are initiated. Finally, within the framework of planning based on the results of market assessment and market analysis, products ready for export are shipped and this process is completed with the payment made by the buyer. A successful export operation requires detailed organization and coordination at every step, and thus it becomes possible to transform into export.

Registering with the Customs Office

Registration with the Customs Administration is of vital importance in international trade and export operations. In order for a company or individual to start exporting, it must first register with the customs office in its own country. This registration process usually includes these steps:

1. 1. Preparation of Company Information: Compilation of basic information such as the legal structure of the company, tax number, commercial activities.

1. 1. Working with a Customs Consultant: In most cases, companies prefer to work with a customs consultant who is an expert in customs procedures.

1. 1. Collection of Required Documents: Documents to be used in export include documents such as chamber of commerce registration, signature circular, authorization documents.

1. 1. Application to Customs Administration: Making an official registration application to the relevant customs administration together with the documents collected.

1. 1. Customs Information System Registration: Many countries carry out customs procedures through digital platforms and registration in these systems is required.

1. 1. Audit and Approval: The customs administration carries out the necessary inspections about the company and approves the registration.

1. 1. Registration Number and Entry Permits: After successful registration, the company is given a special customs registration number and customs procedures are carried out with this number.

This registration process constitutes a prerequisite for export customs procedures and export transactions without registration are illegal. In addition, making this registration has an important place in the export stages following the company’s market research and market analysis studies and is considered the first step of the process. Registration with the customs administration is a critical step to ensure that export activities are carried out within the legal framework and to ensure the smooth functioning of export operations.

Finding the Customer

It is the starting point for the export operation and is one of the most critical stages of the process. Companies intending to export should conduct comprehensive market research to find the right customers. Here are some important steps in this process:

1. 1. 🌐 Market Research: Collecting and analyzing extensive information about potential markets.

1. 1. 📊 Market Analysis: Evaluating sectoral trends, consumer behavior and competitive dynamics.

1. 1. 🔄 Determining Products Suitable for Export: Selecting products that will be in demand in the market.

1. 1. 📈 Assessment of the Target Market: Analysis of the growth potential and profitability of the selected markets.

1. 1. 🤝 Business Relations and Networking: Participating in fairs, developing relations with chambers of commerce and foreign trade units.

1. 1. 📢 Marketing and Promotional Activities: Developing and implementing marketing strategies to promote products or services.

1. 1. 💼 Determining Customer Profile and Communication: Identifying target customer segments and communicating with them through direct marketing or digital campaigns.

1. 1. 📝 Price Negotiations and Agreement: Negotiating with potential customers on price and reaching an agreement.

1. 1. 📜 Documents to be Used in Export: Preparing the documents that will be required for export transactions in advance.

1. 1. 🛃 Preparation for Customs Procedures: Becoming familiar with the customs procedures necessary to fulfill the legal obligations of export.

The process of finding customers is a fundamental part of the exporter’s strategic trade policy and requires continuous improvement and renewal throughout the export stages. These stages are generally based on the exporter’s market assessment results, and the company’s success in foreign trade depends on a well-planned and implemented customer finding process.

Making a Written Purchase-Sell Agreement

Making a Written Purchase-Sell Agreement provides formality and legal assurance within the export operation stages. After finding the customer and completing the preliminary negotiations, all the details of the commercial agreement between the parties are determined and signed in this contract. Here are the important points of this stage:

1. 1. 📝 Clear Description of the Product or Service: The contract must clearly state what the export is based on. Features such as quality, quantity and brand of the products should be detailed.

1. 1. 💰 Price and Payment Terms: Financial details such as price, payment method, payment timing and currency agreed upon by the importer and exporter should be included.

1. 1. 🚚 Delivery Method: According to INCOTERMS rules, the delivery method (FOB, CIF, EXW, etc.) and the place of delivery must be clearly stated.

1. 1. 📆 Delivery Time: It should be stated when the products will be delivered, taking into account the production and transportation process.

1. 1. 🛂 Customs Procedures: Customs procedures and expenses that will be borne by both the exporter and the importer should be clearly defined.

1. 1. 🔒 Insurance and Risks: Risk sharing and insurance details regarding damages and losses that may occur during the transportation of the goods should be included.

1. 1. ✅ Quality Control and Certification: The procedures regarding how and by whom the compliance of the products with the determined standards will be inspected should be in the agreement.

1. 1. 🔍 Market Research and Compliance: Checking whether the contract terms comply with the legal requirements of the target market and the needs of the customer.

1. 1. 🚨 Dispute Resolution: Legal procedures and solutions to be applied in case of a dispute between the parties.

1. 1. 🌐 Effectiveness and Execution: The effective date of the agreement, its validity conditions and the obligations of both parties.

The written purchase-sale contract creates an official and legal basis within the export operation stages and plays a central role among the documents to be used in export. The contract serves as the reference point at every step of export, including export customs clearance, and contains the terms and conditions agreed upon by all parties before starting to export. Therefore, it is of great importance to prepare a detailed and clear purchase-sale contract in all aspects for the export operation to transform into export successfully.

Making a Financial Agreement with the Bank

Establishing a Financial Agreement with the Bank process is critical to ensuring the financial aspect of export operations. Export financing is generally determined depending on the needs and risk profiles of the exporter and importer. Here are the main points to consider about this process:

1. 1. Payment Conditions: Payment methods to be used in export (letter of credit, money order, payment against goods, etc.) must be determined.

1. 1. Bank Selection: The bank to work with for the export operation should be carefully selected in terms of the breadth of services it offers and international trade experience.

1. 1. Financing Structure: Determining the loans, financing rates and maturities required to finance the export operation.

1. 1. Credit Agreement: An official agreement containing the loan usage conditions should be prepared with the bank.

1. 1. Export Customs Procedures: The financial contract made with the bank should include customs guarantees and other financial documents that may be required during export customs procedures.

1. 1. Risk Management: Using derivative instruments (options, futures, etc.) to protect against exchange rate fluctuations, interest rates and other financial risks.

1. 1. Payment Flow: Establishing mechanisms that will guarantee that the payment is made to the exporter on time and in full.

1. 1. Preparation of Required Documents: Preparation and approval of all official documents required for the bank contract in line with the bank’s requests.

1. 1. Market Assessment: Ensuring that the contract terms are compatible with the economic conditions of the market to be exported.

The stage of making a financial contract with the bank covers important elements such as liquidity management of the exporter, payment security and cost control among the export operation stages. This agreement also creates a critical infrastructure for the success of exports and provides the financial support and assurance required for its transformation into exports. Therefore, the financial implications and requirements of each stage in export operations must be planned and managed correctly.

Production of Goods, Insurance and Customs Clearance Procedures, Loading on the Transport Vehicle and Commencement of Actual Export

It is one of the most active parts of the export operation and involves a number of critical steps. This process, which is among the export stages, refers to the initiation of the logistics chain from the production of the goods until they reach the buyer. Here are the key steps in these stages:

1. 1. Production of Goods: The exporter produces or prepares the products in accordance with the qualifications specified in the purchase-sale contract.

1. 1. Preparation of Documents to be Used in Export: Preparation of all documents required for export such as invoice, certificate of origin, packing list.

1. 1. Insurance: Insuring the goods against the risks they may encounter during transportation. This is commonly known as freight insurance and provides protection for goods against damage or loss.

1. 1. Customs Procedures: The exporter completes the procedures required for the goods to exit customs. This means filling out the customs declaration and submitting the necessary documents.

1. 1. Loading to the Transport Vehicle: Loading the produced goods to the transport vehicle in accordance with the predetermined delivery method.

1. 1. Start of Actual Export: The start of actual export when the goods depart for the determined delivery point.

This process emphasizes the physical movement of goods within the export operation phases and the importance of customs clearance and logistics planning. At this point, the export operation completes the export customs procedures and moves on to the actual transportation of the goods. Thus, goods leaving the exporter’s area of responsibility reach the final stage of being transferred to the hands of the importer or end user. This is a key turning point in the success of exports and means that all planning and preparations for exporting become reality. Professionals in export operations are expected to be particularly meticulous and careful at this stage, as each step must be carefully managed.

Initiation of Payment Transactions by the Importer

It is an important phase in international trade, that is, leading to the end of the export operation and the successful completion of the trade. This stage generally begins within the export stages, after the goods reach the buyer or when the conditions specified in payment methods such as letters of credit are met. Here are the important steps in this process:

1. 1. 💰 Payment Order: The importer gives the necessary instructions to make payment to his own bank.

1. 1. 📑 Documents to be Used in Export: The importer examines the necessary documents such as commercial invoices and shipping documents sent by the exporter before initiating the payment transactions.

1. 1. 🏦 Bank Intermediation: The importer usually makes the payment through his own bank through methods such as international transfer, opening a letter of credit or payment against documents (D/P, D/A).

1. 1. 🔄 Money Transfer: The process of the bank withdrawing the required amount from the importer’s account and sending it to the exporter’s bank.

1. 1. 🛃 Export Customs Procedures: It can take place before or after the importer makes payment and requires the exporter to complete the customs procedures that will ensure the exit of the goods.

1. 1. 📅 Payment Schedule: If a letter of credit is used as the payment method, compliance with the dates and conditions specified for payment.

This process minimizes the risks of both the exporter and the importer and ensures a safe payment flow, thanks to mechanisms such as payment guarantees and letters of credit. The importer’s initiation of payment transactions also means the financial completion of all transactions planned to be converted into exports and marks the completion of the export operation stages. This process is the point where exports, which are generally carried out after market research and analysis studies, turn into real income.

Collection of Export Price Foreign Currencies, Export Operation

Collection of Export Price Currencies refers to the income flow that represents the financial result of the export operation and that ultimately occurs for the exporter. This stage, within the export stages, takes place after the delivery of the goods and the completion of the relevant customs procedures. Here are the main steps to consider in this process:

1. 1. Collection Through Bank: The export price is transferred from the importer’s bank to the exporter’s bank. This mostly happens according to the payment method and terms determined in the preliminary agreement between the seller and the buyer.

1. 1. Examination of Documents: Banks examine the documents to be used in export and check them for compliance with the payment terms.

1. 1. Foreign Exchange Reaching the Buyer: The arrival of the export proceeds to the exporter’s account is generally affected by exchange rate fluctuations. Therefore, monitoring exchange rates is vital for companies that decide to export.

1. 1. Accounting Record: Once the issue price is collected, the transaction is recorded in the accounting records and reported as income.

1. 1. Market Evaluation: Export fee collection is also important for exporters in terms of market analysis and evaluation because the foreign exchange income obtained depends on the market conditions and strategies. It shows its success.

1. 1. Export Customs Procedures: The exporter is expected to offset the costs of all customs procedures for exported goods with this foreign exchange income.

1. 1. Updating Financial Planning: Collection of the export proceeds affects the company’s cash flow and financial planning and forms the basis for future projections of exports.

Collecting export remittances is considered the financial expression of success in international trade and has a critical place among the export operation stages. This process is generally the final step that ensures the recycling of all commercial activities that the exporter plans to turn into export and is considered as an indicator of his ability to compete in international markets.

Import Process in Foreign Trade

Importing Process is the opposite process of exporting operation and refers to the entry of goods or services into a country from abroad. The basic steps of this process are:

1. 1. 📈 Market Research: A comprehensive analysis study carried out by importing companies to determine the products needed in their target markets.

1. 1. 💼 Preliminary Negotiations with the Supplier: The importer’s first contact with the suppliers abroad who will provide the products and negotiate the conditions.

1. 1. 💲 **Price and Export Mode Negotiations: Negotiating the cost of the products, delivery conditions and payment terms.

1. 1. 📝 Making a Written Purchase-Sell Agreement: Preparation and signing of the official contract in which all trading conditions are stated.

1. 1. 🏦 Making a Financial Agreement with the Bank: Making financial agreements including payment methods (letter of credit, D/P, D/A, etc.).

1. 1. 🛃 Export Customs Procedures: Official procedures carried out by the exporter that regulate the exit of the goods from the export country.

1. 1. 📦 Production of Goods, Carrying out Insurance and Customs Exit Procedures and Loading to the Transport Vehicle: Preparing the goods for the importer, insuring them and making them ready for transportation.

1. 1. 🚢 Delivery and Transportation of the Goods: Transportation of the goods to the delivery point determined by the importer.

1. 1. 💳 Collection of Export Price Foreign Currencies: Payment to the seller after the delivery of the goods.

1. 1. 🛂 Registering with the Customs Administration and Initiating Import Customs Procedures: Presenting the goods to the customs of the importing country and carrying out the necessary import procedures.

The import process requires a similar set of strategic and operational decisions for the importer compared to exporting. The importer must manage a series of processes that begin with market analysis and evaluation and end with the physical delivery of the goods to the importer. In this process, it is also necessary to act in accordance with the principles and rules of foreign trade, foreign trade gains and risks. The importer’s initiation of payment transactions and export customs procedures are also integral parts of this process. Every stage of the import process must be handled carefully in accordance with local and international legislation, trade financing and logistics operations.

Being an Importer

Being an importer is a business process that involves bringing foreign goods or services into a country and selling or distributing those products in the local market. Entering the import business requires good market research, a strong logistics network and a solid financial plan. Here are the basic stages of this process:

1. 1. Market Research and Market Evaluation: The person or institution that wants to import first analyzes the target market and potential competition. This is critical to understanding which products are in demand, market size and trends.

1. 1. Learning the Necessary Principles and Rules for Import: The importer candidate must have knowledge of local and international trade laws, tax regulations and import quotas.

1. 1. Supplier Finding and Preliminary Negotiations: Ideal suppliers are determined and negotiations are held on issues such as price, delivery conditions, payment terms.

1. 1. Preparation of a Contract Between Exporter and Importer: It is important to determine the details of the purchase contract in writing and clarify the rights and responsibilities of both parties.

1. 1. Determining Financing and Payment Methods: Import transactions generally require large amounts of capital. Payment methods must be agreed upon, such as secure payment methods such as letter of credit or money order.

1. 1. Planning Logistics and Transportation Operations: Agreements are made with logistics companies to transport the products from the supplier to the buyer in a safe and efficient manner.

1. 1. Customs Procedures and Documentation: The necessary documents for the customs procedures of imported goods must be prepared and submitted to the customs administration.

1. 1. Marketing and Distribution: Introducing the products in the market and establishing distribution channels.

To become an importer, it is necessary to be able to accurately evaluate the potential of the product in the target market, understand and manage each link of the supply chain, and have in-depth knowledge of the functioning of international trade. Every step should be handled meticulously and action should be taken in accordance with the dynamics and legislation of international trade. In addition, individuals or companies who decide to import should be careful about issues such as trade financing and insurance to reduce the risks they may encounter.

Registering with the Customs Office

Registration with Customs is a fundamental step in international trade processes and is critical for both import and export operations. This process is designed to ensure that companies or individuals trade in accordance with the country’s customs laws. Here are the critical components of this process:

1. 1. Preparation of Official Documents: When registering at customs, documents such as legal documents of the company, tax registration documents and commercial licenses must be prepared.

1. 1. Entering the Customs Administration Web Portal: Many countries carry out their registration with the customs administration through online platforms. It is expected that the necessary forms will be filled in and other procedures will be completed in these portals.

1. 1. Professional Consultancy: Due to the complexity of customs procedures, it is recommended to manage the process with the help of a customs broker or foreign trade consultant.

1. 1. Physical Registration at the Customs Administration: If necessary, in certain cases, a physical registration must be made at the customs office and an official registration must be made that allows the company or individual to engage in trading activities.

1. 1. Permits and Licenses: Special permits or licenses may be required depending on the type of products to be imported or exported. For example, some agricultural products, chemicals or medical equipment may be subject to extra regulations.

1. 1. Taxes and Duties: During the registration process, various taxes and duties determined by the customs administration may be required to be paid.

1. 1. Regular Updates: Customs laws and regulations may change, so registered importers and exporters need to monitor and comply with updates.

Registration with the Customs Administration ensures that foreign trade activities are carried out within a legal framework and creates a basis for these transactions to proceed smoothly. This step contributes to the transparent and orderly conduct of customs procedures and is of great importance for the functioning of international trade.

Finding the Exporter

Finding an exporter is a critical stage for the success of foreign trade processes. A company or individual planning to export must be able to communicate effectively with buyers in international markets and develop a strong business relationship. The process of finding an exporter includes the following steps:

1. 1. 🌐 International Market Research: Analyzing potential markets and customer segments is necessary to understand in which countries or regions there is demand for products or services.

1. 1. 🤝 Business Events and Networking: Establishing direct contact with potential buyers and business partners by attending trade shows, industry meetings, and various business events.

1. 1. 💼 Chambers of Commerce and Industry Associations: Local chambers of commerce and international trade associations can provide resources and support in establishing business contacts and finding companies suitable for exporting.

1. 1. 📊 Market Analysis and Evaluation: Exporters should conduct a comprehensive market analysis to understand the needs and expectations of potential customers.

1. 1. 🌐 Digital Marketing and Online Presence: Online marketplaces, company websites, social media platforms and digital advertising allow products and services to be discovered by global buyers.

1. 1. 📩 Communication and Marketing Materials: Professional brochures, catalogs and sales presentations can attract the attention of potential buyers by clearly explaining the features and benefits of products or services.

1. 1. 🔍 Reference and Previous Work Experiences: Exporter candidates can increase their credibility and gain new customers by sharing their previous work experiences and references.

1. 1. 📝 Certification and Compliance with Standards: Certification in accordance with international standards and regulations facilitates the acceptance of products and services in foreign markets.

1. 1. 🔄 Feedback and Continuous Improvement: Feedback received from customers is vital for the continuous improvement of product and service quality.

Finding an exporter is necessary not only to find suitable buyers, but also to develop an in-depth understanding of issues such as the operation of international trade and trade financing, to build long-term business relationships and create foreign trade profits. This process should be supported by strategic trade policies and a good evaluation of market conditions.

Making a Written Purchase-Sell Agreement

Establishing a written purchase-sale agreement is one of the most critical stages of any export operation and should include the following elements:

1. 1. Party Information: Clear indication of the full name, address and contact information of the exporter and importer.

1. 1. Contract Date: The date the contract was signed.

1. 1. Product Information: Detailed description, quantity and quality standards of the goods or services that are the subject of export.

1. 1. Price Negotiations and Payment Method: Details regarding the price of the products, payment terms and the functioning of the price mechanism between the parties.

1. 1. Delivery Method and Export Mode Negotiations: The delivery method determined within the scope of INCOTERMS, who will carry the cargo to where, the place and time of delivery.

1. 1. Documents to be Used in Export: Sales contract, transport documents, insurance policy, other documents required for customs procedures and mandatory for export.

1. 1. Export Customs Procedures: Procedures to be carried out during the exit of the export from customs and the responsibilities of the parties.

1. 1. Market Research and Analysis: Confirms the compliance of the requested products with market conditions and international competitive strategies, based on the market research and analysis of the contract.

1. 1. Function of the Price Mechanism: Articles on how prices are determined depending on factors such as exchange rate fluctuations, local and international market conditions.

1. 1. Dispute Resolution: Determining the methods to be followed and the law to be applied in case of any dispute between the parties.

This contract clearly sets out the rights and obligations of the parties during export and export stages. A well-prepared contract will ensure successful completion of the export and help the exporter maximize foreign trade earnings. The functioning of international trade and the principles and rules should be taken into consideration at every stage.

Making a Financial Agreement with the Bank

Making a Financial Agreement with the Bank stage forms the basis of the financial dimension of the export operation. In this process, a comprehensive agreement on export financing is made between the exporter and the bank. Here are the important points of this stage:

1. 1. 💳 Determination of Payment Terms: The bank provides the necessary financial instruments according to the payment terms accepted by the exporter and importer. For example, letter of credit, payment against goods, deferred payment etc.

1. 1. 💰 Export Financing: The bank offers various financing methods that will provide the cash flow required for the export operation. This can range from financing production costs to extending credit to the buyer.

1. 1. 📉 Risk Management: Financial risk management tools such as hedging against changes in foreign exchange rates should be considered by the exporter.

1. 1. 📑 Documents to be Used in Export: Financial contracts made with the bank must be supported by various export documents. For example, documents such as bill of lading, invoice, insurance policy.

1. 1. 🛂 Customs Procedures and Payment Guarantees: During export customs procedures, banks can provide letters of guarantee to customs authorities that payments are guaranteed.

1. 1. 🌐 Operation of International Trade: Financial contracts must be prepared in accordance with the principles and rules of international trade. For example, regulations of international chambers of commerce or WTO rules.

1. 1. 📈 Market Evaluation: Banks can also provide loans based on the evaluation of the market in which the export will take place. Market research and market analysis become important at this stage.

This financial contract with the bank is key to maintaining liquidity and reducing financial risks throughout the export operation phases. In order for export to be successful and for the exporter to obtain foreign trade profits, financial contracts must be made correctly and carefully.

Arrival of Documents

In export operations, the “Arrival of Documents” phase constitutes an important part of the logistics and legal processes of the transaction. This stage includes the receipt of the documents sent by the exporter by the bank or importer in the importer’s country. Here are the main components of this process:

1. 1. 📄 Delivery of Documents to be Used in Export: The exporter sends mandatory documents such as transportation documents (bill of lading), commercial invoice, certificate of origin, insurance policy to the relevant bank or buyer.

1. 1. 🏦 Banking Transactions: In case of letter of credit or other forms of payment, documents are processed through the bank. The bank checks the compliance of the documents with the letter of credit conditions.

1. 1. 🛂 Documents Required for Customs Procedures: Complete the documents requested by the customs administration. and must be provided in full. These documents include the export declaration and necessary permit documents.

1. 1. 🔍 Control of Documents: The importer and/or his bank examines the submitted documents in detail and checks whether there are any errors or omissions.

1. 1. 🔄 Approval of Documents and Conversion to Export: Once the documents are accepted and approved by all relevant parties, the export process is actually completed.

1. 1. 📤 Initiation of Payment Transactions: Following the acceptance of the documents, the bank initiates the payment transactions and the export price is transferred to the exporter’s account in foreign currency.

1. 1. 🌐 Operation of International Trade: During the delivery and processing of documents, the principles and rules of international trade should be taken into consideration.

In this process, it is critical to prepare the documents required by the trade financing methods determined as a result of market analysis and market evaluation and the agreed upon delivery method accurately and on time. The arrival of the documents also serves as an indicator that the exporter and importer’s obligations have been fulfilled and allows foreign trade profits to be obtained.

Performing Insurance Procedures

The Insurance Procedures step in export operations is extremely critical in terms of safe transportation of goods and protection against potential risks. Here are the important aspects of this step:

1. 1. Risk Assessment: Regardless of the export method and delivery method, before deciding to export, the risks that your product may encounter during transportation must be evaluated.

1. 1. Policy Preparation: After negotiations with the insurance company, an insurance policy is prepared in line with the demands of the exporter. This policy provides protection against all risks that the goods may encounter during transportation.

1. 1. Calculation of Cost: In addition to export customs procedures and transportation costs, the insurance cost is also included in the total cost of export.

1. 1. Documents to be Used in Export: When the insurance transactions are completed, documents such as insurance policies are added to the export documents and these documents play an important role during payment and customs procedures.

1. 1. Function of International Trade: Insurance transactions must be carried out in accordance with the principles and rules of international trade. These rules include details regarding delivery terms, in particular INCOTERMS.

1. 1. Market Assessment: As a result of market research and market analysis, appropriate insurance coverage must be determined according to the risk profiles in different markets.

1. 1. Payment Transactions and Conversion to Export: After the insurance policy is presented to the buyer or the buyer’s bank, payment transactions are initiated after the accuracy and validity of this document is confirmed.

Carrying out insurance procedures allows minimizing the risks within the export operation stages and protects the interests of both the exporter and the importer, thus securing foreign trade profits.

Arrival of Goods to Customs, Payment and Customs Entry Procedures

In the export process, the stages of “Arrival of Goods to Customs, Payment and Customs Entry Procedures” constitute important parts of the process in terms of both logistics and legal obligations. These stages work as follows:

1. 1. 📦 Arrival of Goods to Customs: Delivering the goods to the customs zone in the country to which they will be exported is a logistical part of the export operation. At this point, the goods are held for inspection by the customs administration.

1. 1. 💳 Making Payment: This step is usually carried out by the buyer. After the exporter notifies that the goods are loaded and ready for export, payment transactions are initiated by the importer or his bank. These payments can be made by different methods such as letter of credit, foreign currency transfer, counterpayment.

1. 1. 🛂 Performing Customs Entry Procedures: The exporter or his customs consultant submits the customs declaration and other relevant documents to complete the necessary customs procedures regarding the goods to be exported. Documents to be used for export include commercial invoice, certificate of origin, transport documents and necessary permits, if any.

1. 1. 🔄 Export Customs Procedures: The customs administration allows the export to take place after reviewing the submitted documents and physically checking the goods.

1. 1. 📈 Market Evaluation: The arrival of the goods to customs and customs procedures are carried out in accordance with the requirements of the selected export market in line with the market research and analysis.

1. 1. 🔍 Conversion to Export: Successful completion of all these processes means that the goods are actually exported and thus the export operation is actually completed.

Each step in these stages is carried out within the framework of strictly regulated principles and rules within the functioning of international trade. It is of great importance for the exporter to master the current customs legislation and international trade standards throughout the export stages in order to optimize his foreign trade earnings.

Free Export

Free Export refers to the movement of goods abroad without permits, quotas or tax payments specified in the legislation of a particular country. Within the framework of Customs legislation, exports to free zones are generally considered an area outside the local market, and transactions carried out in these areas are generally exempt from local customs duties.

Export support means financial supports or regulations made by governments to encourage the opening up of the national economy and strengthening it in international competition. In particular, free export; It is the process of sending a product abroad free of charge, usually for promotional or aid purposes, and in this case, certain facilities may be provided within the customs legislation.

One of the basic documents in free export is the Commercial Invoice. This document contains the details of the sales agreement between the seller and the buyer, the quantity, value and payment terms of the goods shipped. Customs Declaration is an official document that ensures the passage of goods through customs in export transactions. Within the framework of free trade agreements with the European Union, the ATR Certificate can be used; This document facilitates the free movement of goods within the EU.

Here are the outlines of free exports among export types:

1. 1. Commercial Invoice and Customs Declaration preparation: It is essential to fill out these documents accurately and completely at the beginning of the export process.

1. 1. Shipments to free zones: These zones play an important role in free exports as they are generally exempt from customs duties and quotas.

1. 1. Export support programs: Reducing costs and increasing competitiveness for exporters by taking advantage of the supports provided by governments.

1. 1. ATR Certificate: Document confirming the origin and providing some tax advantages for exports from Turkey to EU countries.

1. 1. Free export: Exports that are generally made for the purpose of promotional materials, samples or assistance, and are carried out without expecting in return

1. 1. Payment and Financing: Clearly determining the payment terms in export transactions and utilizing financing services if necessary.

1. 1. Knowing the customs legislation: Having knowledge about the customs legislation of the country to be exported and acting in accordance with these rules.

Free export is one of the most flexible forms of foreign trade and enables the exporter to take an active part in global markets. What is important for exporters is to benefit from mutual trade agreements and free trade zones at the maximum level and to complete customs procedures smoothly by completely preparing the documents that will facilitate these processes.

Commercial Invoice

Commercial Invoice is an important document that is accepted as proof of the sales transaction between the buyer and seller in international trade. It usually includes the quantity of goods sold, price, total invoice price, buyer and seller information, payment terms, delivery conditions and other commercial terms, if any. This document is also used as a basic document in customs procedures.

The importance of Commercial Invoice in international trade:

1. 1. Contains the details of the agreement made between the buyer and seller.

1. 1. It is a document used by customs administrations in import and export transactions and taken as basis in tax calculations.

1. 1. Documents the real and legal owner of the goods.

1. 1. It is the basic document presented to banks for payment transactions.

1. 1. It is a document expressing the content and value of the cargo for transportation companies.

1. 1. The commercial invoice is also evidence proving that an export has occurred and that the exporter has shipped the product.

1. 1. In many countries, in accordance with customs legislation, it is mandatory to present the original of this document in import or export transactions.

Issuing commercial invoices in international trade must be carried out in accordance with certain standards and the customs regulations of the relevant country. Correct management of this process plays a critical role in the smooth execution of export and import transactions.

Customs Declaration

Customs Declaration is an official document that must be submitted to the customs administration in international trade when goods enter or exit the customs territory of a country. This document contains a detailed description, value, origin and quantity of goods exported or imported and is used for purposes such as applying customs tariffs, calculating import duties and keeping foreign trade statistics.

The importance of Customs Declaration in international trade:

1. 1. It is the basic document on which customs administrations regulate import and export transactions.

1. 1. It ensures the classification of goods and the calculation of necessary customs duties and other taxes.

1. 1. It is used to check the compliance of trade with customs legislation and the principles and rules of international trade.

1. 1. Customs Declaration is also transmitted as electronic data in modern customs systems that allow customs transactions to be carried out electronically.

1. 1. It provides detailed and official information about the exporter or importer‘s goods

1. 1. Trade without a Customs Declaration is considered illegal (illegal) trade and may result in serious criminal sanctions.

1. 1. At the same time, this document may need to be submitted in order to use the incentives provided by states in the context of export support

In every export and import transaction, the customs declaration must be filled out accurately and completely and submitted to the relevant customs office in order to complete the customs procedures. This process is usually carried out by customs consultants or customs brokers and ensures the smooth functioning of international trade.

ATR Document

ATR Certificate is a preferential trade document used in mutual trade within the framework of the Customs Union Agreement signed between Turkey and the European Union (EU). This document is used for exports from Turkey to the EU or from the EU to Turkey and allows the import of certain goods free of preferential tariffs or customs duties.

The importance of the ATR Certificate in international trade:

1. 1. ATR Certificate ensures the free movement of Turkish goods within the European Union and allows the reduction or removal of customs duties for these goods.

1. 1. This document provides a competitive advantage by reducing the costs of both the exporter and the importer.

1. 1. Customs administrations use the ATR Certificate to verify the origin of goods and to promote trade in accordance with the agreement.

1. 1. By simplifying customs procedures, it supports faster and more efficient trade.

1. 1. Export support provides great benefits to Turkish producers and supports Turkish goods to be more competitive in the EU market.

1. 1. In accordance with the customs legislation, in trade without an ATR Certificate, high customs duties may be required to be paid on the goods, as preferential tariffs will not be applied.

1. 1. It is a necessary document for the implementation of preferential trade agreements and is an indicator that both parties act in accordance with the trade agreements.

ATR Certificate is required to verify the origin of the relevant product and tax advantages for exports to countries within the scope of the Customs Union. In order to obtain this document, the exporter must prove that the goods are produced in Turkey or sufficiently processed in Turkey. The use of the ATR Certificate is an important step that should be taken into consideration during export operations and is one of the strategic decisions that can be taken as a result of a correct market analysis and market evaluation. 

What are the Advantages of Foreign Trade?

Foreign trade enables countries to transcend their economic borders and integrate into global markets. This integration directly contributes to a country’s economic growth and prosperity with the numerous advantages offered by foreign trade. Foreign trade has become one of the cornerstones of the global economy by increasing the interdependence between countries.

The diversification advantage provided by foreign trade expands the development of foreign trade and access opportunities through foreign trade beyond local markets. Thanks to foreign trade, countries can increase their production capacity and service diversity through foreign trade by gaining access to resources, materials and intermediate goods that are not available domestically.

The competitive advantage promoted by foreign trade requires producers and exporters to be more effective and efficient. This situation encourages companies participating in foreign trade to innovate, reduce costs and improve product quality. Thus, foreign trade both offers a wider range of products to consumers and increases competitiveness on a global scale for local businesses.

Another important advantage of foreign trade is the economic scale advantages. Thanks to foreign trade, companies can access larger markets, spread fixed costs in production over more products, and thus reduce costs per unit. These economies of scale provided by foreign trade allow international trade to result in lower prices and higher production capacity.

Finally, the strategic advantages provided by foreign trade shape the foreign trade policies and international relations of countries. Foreign trade plays an important role in establishing international alliances and strengthening diplomatic relations. Foreign trade relations, covering political and cultural exchange as well as economic ties, contribute to the maintenance of cooperation and peace in the international arena.

These advantages of foreign trade bring countries to a global platform not only economically, but also socially and politically. This comprehensive integration, led by foreign trade, strengthens each country’s place on the world stage and opens the doors to sustainable development.

Foreign trade, that is, international trade, refers to the exchange of goods and services between countries and provides many advantages. Here are some main advantages of foreign trade:

1. 1. Product Diversity: Foreign trade offers consumers a wide range of products produced in different countries. This makes it easier for consumers to access products with better quality and different features.

1. 1. Effective Use of Resources: Each country has different natural resources, technology and skills. Foreign trade ensures that these resources are used in the most efficient way, so that countries can specialize in areas where they have their own advantages.

1. 1. Economic Growth: Foreign trade enables countries to earn foreign currency through exports and to access the goods and services they need through imports. This supports economic growth in general.

1. 1. Increase in Competition and Fall in Prices: Foreign trade increases competition in local markets. This helps reduce the prices of the products and increase the quality.

1. 1. Employment Opportunities: Employment increases in exporting sectors. At the same time, foreign trade encourages the creation of new business lines, which can reduce unemployment rates.

1. 1. Financing of Trade: International trade contributes to the development of financial markets. Thanks to the financing of foreign trade transactions, the banking and finance sectors expand and deepen.

1. 1. Technology Transfer: Foreign trade enables technology transfer and thus contributes to the technological development of countries.

1. 1. Strengthening International Relations: Trade builds economic ties between countries and can help improve political relations.

1. 1. Foreign Trade Gains: According to the theory of comparative advantage, countries can gain more profits by trading with other countries than they can in their own domestic markets.

1. 1. Strategic Trade Policies:Foreign trade allows governments to develop strategic trade policies to support specific sectors and achieve strategic economic goals.

Each of these advantages shows how critical an economic activity foreign trade is and how market conditions are shaped by the functioning of international trade. A good understanding of the scope of foreign trade and its principles and rules plays a great role in the economic development of a country.

For the official website regarding foreign trade you can click.

Foreign Trade Examples

Foreign trade refers to the exchange of goods, services and capital between countries. It is one of the basic building blocks of the world economy in its various forms, and examples reflecting the functioning of global trade can be found in many different areas. Here are some basic examples of foreign trade:

1. 1. Import and Export of Raw Materials:
      • • A country imports raw materials such as oil, natural gas or minerals from another country.
      • • Brazil exporting coffee around the world or Middle Eastern countries exporting oil.

1. 1. Agricultural Products Trade:
      • • The United States exports agricultural products such as corn and soybeans to other countries.
      • • European countries import fruits and vegetables from Africa.

1. 1. Manufacturing Industry and Trade in Industrial Products:
      • • Germany exports industrial products such as automobiles, machinery and chemicals.
      • • China exports electronic goods and textile products.

1. 1. Service Trade:
      • • India’s export of software development and information technology services.
      • • United States’ exports in the financial services and insurance sector.

1. 1. Trade in Food Products and Processed Foods:
      • • Italy exports processed food products such as pasta and olive oil.
      • • Turkey exports food products such as hazelnuts and olives.

1. 1. Trade of Technology and High Technology Products:
      • • South Korea’s export of high-tech electronic products.
      • • US exports of aircraft, medical devices and high-tech products.

1. 1. Trade in Cultural Products:
      • • Worldwide distribution of content produced by the American film and music industry
      • • France exports luxury fashion products and perfumes.

1. 1. Tourism and Travel Services:
      • • Countries such as Spain, Thailand and Egypt generate tourism revenues.
      • • Students go abroad to study in other countries for educational services and provide foreign currency inflow to those countries.

These examples illustrate the wide range of foreign trade and how it can take many different forms as a result of economic globalization. Foreign trade is fundamental to national economies and supports global economic growth while regulating the flow of labor, capital, technology and raw materials.

Export from Turkey to Free Zone and Import from Free Zone to Turkey

Exports from Turkey to free zones and imports from free zones to Turkey have an important place in the Turkish foreign trade structure. Free zones are considered outside the customs border and transactions taking place in these zones can benefit from various tax, customs and commercial advantages. Here is a general summary of these processes:

Export from Turkey to Free Zone:

Exports from Turkey to free zones are recorded as exits from the Turkish customs territory. The following steps are generally followed during this process:

1. 1. Exporter Registration and Documents:The company that will export must register as an exporter and prepare the necessary export documents.

1. 1. Customs Declaration:A customs declaration is prepared for the goods to be sent to the free zone and export incentives, if any, are stated.

1. 1. Customs Procedures: Necessary customs procedures are completed when the goods enter the free zone. No customs duty is collected from products processed or stored in free zones.

1. 1. Transportation and Logistics: Appropriate logistics services are used to transport goods safely to the free zone.

Imports to Turkey from Free Zone:

Imports from the free zone to Turkey are considered as entry into the customs zone. In this process, the following steps are followed:

1. 1. Importer Registration and Documents: The importer company must register as an importer and prepare the necessary documents for import.

1. 1. Customs Declaration:A customs declaration is prepared for the goods to be imported and the necessary taxes, duties and other expenses are calculated.

1. 1. Customs Duty and Other Expenses: Necessary customs duties and other expenses are paid for goods entering the Turkish customs territory from the free zone.

1. 1. Transportation and Logistics: Appropriate logistics services are used to transport goods safely from the free zone to Turkey.

During these processes, thanks to the advantages offered by free zones, both exporter and importer companies have the opportunity to carry out their transactions at less cost and faster. Free zones are generally designed as special areas encouraged for investment and production, and Turkey’s strategic location makes these zones particularly attractive.

However, both of these processes require detailed market research, market analysis and market evaluation, and companies must be familiar with current customs legislation and international trade rules. Additionally, since free zone transactions are subject to special regulations, it is of great importance to receive correct consultancy before the transactions.

Export with Letter of Credit to Algeria

Exporting to Algeria with a letter of credit is an important option, especially for exporters who want to ensure payment security. Letter of credit is a payment method in which the exporter’s payment is guaranteed by the buyer. In exports made with this method, the financial part of the trade between the seller and the buyer is secured. Here are the general outlines of this process:

1. 1. Market Research and Market Analysis: Before entering the Algerian market, a comprehensive market research and analysis is carried out. At this stage, the demand for the products to be exported in the Algerian market, the competitive situation and local regulations are examined.

1. 1. Agreement with the Buyer: An agreement is reached with the buyer in Algeria on the quantity, price, delivery method and payment terms of the goods to be exported.

1. 1. Opening a Letter of Credit: The buyer opens a letter of credit through his own bank and this letter of credit is sent to the exporter’s bank. A letter of credit guarantees that payment will be made if certain conditions are met.

1. 1. Preparation of Documents and Customs Procedures: All documents required for export, customs declaration and special documents such as ATR document, if necessary, are prepared.

1. 1. Production/Preparation and Delivery of the Goods: The goods are produced or prepared in accordance with the order and shipped according to the delivery method specified in the letter of credit.

1. 1. Submission of Documents to the Bank: The exporter submits the commercial invoice, transportation documents, insurance policy and other necessary documents issued in accordance with the terms of the letter of credit to his bank.

1. 1. Payment: After the exporter’s bank reviews the documents and confirms their compliance with the terms of the letter of credit, it makes the payment or ensures that the payment is made by the buyer’s bank.

1. 1. Collection of Export Price Foreign Currency: The exporter collects the export price in foreign currency after the goods are delivered to the buyer.

When exporting to Algeria with a letter of credit, the country’s customs legislation, foreign trade policies and international standards regarding letter of credit transactions (such as UCP 600) should be taken into account. While this process minimizes the exporter’s financial risks, it also provides a kind of guarantee for the buyer that the goods will be delivered in accordance with the specified conditions. For this reason, foreign trade consultancy services are frequently used resources in such complex transactions.

Importation of a Waste Textile Product within the Scope of Warehouse Regime and Import Regime

Import of waste textile products is a process kept under strict control, especially within the framework of environmental regulations and recycling policies. Such products imported under the warehouse regime may be subject to different rules in terms of customs duties and trade policies. Here are the general outlines of this process:

Import within the Scope of Warehouse Regime:

1. 1. Registration and Permission to the Customs Administration: For the import of waste textile products, the necessary permits must first be obtained from the customs administration. These permits depend on environmental regulations and hazard classification of waste.

1. 1. Entry to the Warehouse: The goods are taken to the warehouse before entering the country. This allows products to be stored for a certain period of time without paying customs duties.

1. 1. Preparation of Required Documents: Necessary import documents, customs declaration and documents allowing the import of waste are prepared by the importer.

1. 1. Disposal or Processing: In the warehouse regime, waste textiles are either liquidated to be processed for recycling or, in some cases, can be offered directly for sale.

Import within the Scope of Import Regime:

1. 1. Market Research and Analysis: The importer evaluates the waste textile market and analyzes import feasibility.

1. 1. Compliance with Health and Safety Standards: Documents proving that waste textiles do not harm human health and the environment must be provided.

1. 1. Customs Procedures: When the products are removed from the warehouse, customs procedures are carried out and the necessary taxes are paid.

1. 1. Entry of Goods into Free Circulation: Once the taxes are paid, the goods enter free circulation and can be sold or processed in the domestic market.

Important points to be taken into consideration in these processes are customs legislation, import support policies and environmental legislation. Additionally, commercial invoices, ATR documents and other commercial documents must be prepared properly. In such complex import transactions, companies generally benefit from foreign trade consultancy services. Consulting firms provide expertise on issues such as import regime and warehousing regime and help complete the transactions properly.

Adapte Digital: Your Expert Solution Partner in Foreign Trade

Are you stuck with the difficulties of

International Trade? The key to achieving commercial success across borders is Adapte Digital. We provide a wide range of services, from export operations to export stages, from export method to documents to be used in export. We are a foreign trade consultancy company.

As Adapte Digital, we start by conducting strategic trade policy and market research for businesses that want to take part in the global market. The secret of success in foreign trade lies in accurate market analysis and in-depth market evaluation. This comprehensive preparation process forms the vital basis of exports and imports and shapes the international competitive strategy of enterprises.

As soon as you decide to export, we are with you at every stage of your business. We provide strategic support in critical preliminary preparations such as order taking, preliminary negotiations and correspondence, price negotiations, payment and delivery method determination. Then, we provide consultancy on preparation of documents and production/preparation of the goods, ensuring that the process proceeds smoothly.

We facilitate the difficulties that companies frequently encounter regarding customs procedures and provide professional guidance to complete export customs procedures accurately and quickly. We provide support at every step of the export operation phase, from managing the logistics processes of the goods after production, to delivery of the goods, and ultimately to tracking the payment transactions.

The scope of foreign trade is wide and complex, but with Adapte Digital‘s experience and expertise, the operation of international trade will not be an obstacle for you. Our system, which is based on principles and rules that will help you carry out your export operations in accordance with international trade rules, is designed to maximize your long-term profits in foreign trade.

In short, as Adapte Digital, we constantly follow the changing dynamics in the market at every step of your foreign trade journey, ensuring that you turn your potentials that need to be converted into exports into real profits. Trust Adapte Digital’s knowledge and innovative approach for your business’s rise in global trade.

Exceed the borders, maximize your foreign trade earnings with Adapte Digital. You can get more information about our foreign trade consultancy services by contacting us.