The basis for the ease of e-export is the advantages of micro export. Micro export includes export up to 150 kg and 7500EUR ECCD (Electronic Commerce Customers Declaration). You don’t need a customs broker for ECCD. ECCD is prepared by the express carriers in the export in an electronic format.
Every exporter experiences one thing. Your order has arrived from abroad. The order must be delivered to the customer in a fast way. The amount of order is profitable. But bureaucratic processes such as fees, customer declarations are both slowing your down and prevent you to make a fast delivery. Actually, this problem as an easy and actionable solution: E-Export
China has gained its e-commerce success with e-export. While cross-border e-commerce is at 0.6% level in Turkey, it is up to 40% in China. When %40 e-export is considered for Turkey, 60 million dollar export is not a dream. These numbers will both increase the export rate of the country and significantly increase the cross-border e-commerce gains of the firms.
1. What Is E-Export?
If you are sending products from your online sales page or social media account to the customers in other countries with official sales invoice excluding VAT and with ECCD, you are doing e-export.
2. Ease of E-Export
The basis for the ease of e-export is the advantages of micro export. Micro export includes export up to 150 kg and 7500EUR ECCD (Electronic Commerce Customers Declaration). You don’t need a customs broker for ECCD. ECCD is prepared by the express carriers in the export in an electronic format.
3. Advantages of E-Export Over Traditional Export
In traditional export, customs operations take the most time and money. This process is complex due to the long duration and various process that needs to be monitored.
Additionally, since there are different customs regulations between the countries, traditional export is challenging depending on the products sold, sales amount and customer location. In e-export, you can easily solve the problems with software without being affected by different factors.
Let’s explain this with an example: A business in Germany paid from your online website and placed an order for a certain textile group. They wanted the order to be delivered this week. When you try to fulfil this order in the traditional export, you need to prepare documents such as brand certificate, hygiene certificate, laboratory analysis, company documents and invoice translation. It will become almost impossible to deliver the order within the required time. Or when you try to ship the order, the order will be declined in the customs and return to Turkey. You will not generate income and even experience a loss with this high shipment cost and bad customer experience.
However, you can deliver the same order with e-export solutions without additional documents when you prepared the required customer address and contact information.
When we try to show the difference between traditional export and e-export, we end up with a table like this.
Traditional Export | E-Export | |
Customs Declaration | Customs broker is needed. | E-export prepares solutions in an electronic setting. |
VAT return | Yes | Yes |
Customs period | 2-7 workdays | 12-48 hours |
B2C customs tax exemption | Not valid | Completely valid |
Export operation preparation | Detailed, hard | Simple, easy |
Export business processes and business monitoring | Hard | Simple |
Operation costs | High | Affordable |
End-to-end service | Hard to plan, high cost | East to plan, low cost |
brand registration certificate | Mostly mandatory | Not necessary |
Document translation | Mostly mandatory | Not necessary |
Seller and buyer company documents | Mostly mandatory | Not necessary |
Hygiene certificate | Mostly mandatory | Not necessary |
Laboratory analysis | Mostly mandatory | Not necessary |
In terms of customs cost and customs speed, e-export clearly one step ahead. Beyond these advantages, since you directly sell B2C, you can benefit from the B2C customs tax exemption in your customer’s country.
4. What Are Customs Tax Exemption Offered by Countries in E-Export?
In terms of customs operations, the most important thing to know the delivery type which could be DDP or DDU.
DDP means deliver with paid customs taxes. Customs tax and fees are invoiced to the company that does e-export and your customer will have a complete service including customs payment.
DDU means deliver without paid customs taxes. The customs tax and fees are calculated when the goods are in the customs and these fees are invoiced to the buyer. The e-export company is not responsible for the customs tax.
Based on this information, DDP delivery service is becoming more important for the best customer experience and fastest delivery solution. When the ease of e-export and customs tax exemption by cross-border e-commerce is considered together, it will be easy to manage orders from abroad.
Each country has different customs exemption limit for e-export. When you analyse the customs exemption of the countries, you can check our “What Are Customs Tax Exemption Offered by Countries in E-Export?” article for more information.
If we need to explain cross-border e-commerce processes with an example, let’s imagine the Germany example above and delivering the goods to the customer with cross-border e-commerce. At this stage, the responsibility of the exporter will be preparing sales invoice without VAT, order-receiver information and transferring the package delivery to the business partner. The remaining operations will be completed by the cross-border e-commerce partner.
5. What Are Government Incentives for E-Export?
The government provides various international incentives for e-export companies for their international activities. But to benefit from these incentives, the company must not be a sole proprietorship. Additionally, the website must be prepared in the language of the activity country. At the same time, products that will be sold with e-export must be manufactured in Turkey. The companies can take important steps to grow with e-export government incentives that many firms can benefit from. These include necessary incentives such as foreign investment as well as company establishment abroad government support. You can check our “What Are Government Incentives for E-Export?” article for more information.
Comments are closed.