Export means goods and services that are produced in one country and sold to buyers in another country. Exports, along with imports, constitute international trade. Exports facilitate international trade and stimulate domestic economic activity by creating employment, production and income.

Exporting is very important to modern economies because it offers people and companies more markets for their goods. One of the main functions of diplomacy and foreign policy between governments is to strengthen economic trade and encourage exports and imports. In 2019, the world’s largest exporters (in dollar terms) were China, the United States, Germany, the Netherlands, and Japan.

Advantages of exporting goods

Companies export their products and services for various reasons. If the goods create new markets or expand existing markets, exporting can increase sales and profits and may even be an opportunity to capture a significant share of the world market, but they must be familiar with the steps of exporting goods abroad. Companies that export expand business risk by diversifying into different markets.

Exporting goods abroad can reduce unit costs by increasing demand. Finally, firms entering foreign markets gain new knowledge and experience and may be able to discover new technologies, marketing practices, and insights from foreign competitors; But what should be done to export goods?

All kinds of goods export

There are different types of goods export, knowing them will help you better understand export.

Definitive and temporary export of goods

In definitive export, all kinds of goods are sent abroad for consumption or sale.

In temporary export, all kinds of goods are temporarily sent to participate in an international exhibition, and the return of the goods to the country is done easily.

Direct and indirect export of goods

In the direct export of goods, the exporter is responsible for the export of the goods, and the person can earn more profit and build a network for himself.

In the indirect export of goods, the individual entrusts the export work to trading companies and the profit is divided between them in an agreed manner. In this method, legal licenses are not required and the experiences of experts can be used.

Classification of export goods

Export goods are divided into three categories that you should be familiar with before exporting.

Authorized goods: These goods do not require a license.
Conditional goods: The export of these goods is subject to customs permits.
Prohibited goods: goods whose export is prohibited according to the laws.

Comprehensive export guide

Does your company intend to export goods abroad? This section will help you find out if your company is ready for export or not and describes the steps to export goods abroad.

If you are planning to export a product for the first time, you should check whether your company is ready for business or not. By answering these questions, you can get the answer to this question.

Is your product already successful in the domestic market or other countries?
Does your company have the capacity to sell products in foreign markets? Does it have enough manpower, time, financial and legal resources?
Is your company’s management committed to expanding to export markets outside of Iran?
Does your company have a comprehensive financial/marketing/business plan with specific objectives to support exports to foreign markets?
Do you have a specific strategy for how to export the product to the export market?
Is your product’s intellectual property protected in your export market?
Does your company have the capacity and expertise to adapt your product to cultural preferences or different technical standards across borders?

Before proceeding, carefully review the above questions and discuss them within your company to decide if you are ready to do business with other countries or what steps you need to take to prepare yourself to do so.

5 stages of exporting goods from Iran:

Now that you have evaluated the conditions of the company to enter international markets, you must go through these 5 steps to export goods.

Step 1: Find the market and the buyer
Choose your new export market.
Evaluate the commercial and competitive potential of your product.
Check the export related costs like tariff, shipping cost, agent fee etc.
Identify potential buyers.
Identify the appropriate agency/institution/partner to support the formalities of the export process. For example, you can use the expertise of others to set up contracts, create payment terms, check the credit of the buyer and the existence of any money transfer restrictions in the importing country.
Carefully define and share responsibilities between the seller/exporter and the buyer/importer, so that only those that can actually be performed are assumed.
Step 2: Check the conditions for exporting goods abroad and assess the requirements of your export market
Identify the legal requirements of an export business.
Get the registration and identification number of economic operators (apply in advance).
Assess whether your product complies with the relevant rules of origin and determine the applicable tariff rate.
Check if there is an export restriction or ban in Iran for exporting to your target country or for exporting your product.
Check which additional taxes and duties apply to your export market.
Identify the health, safety and technical requirements applicable to your export market.
Evaluate the certification process and required documents in the destination country.
Check packaging and labeling regulations in the export market.
Check whether you need to protect your product’s intellectual property in the export market.
Step 3: Prepare the sale and organize the shipping
Prepare and sign the contract with the buyer, including agreement on who is responsible for what and organizing the shipping process.
Consider export insurance.
Identify institutions that can help you organize the export process and possible export support programs (if needed).

Step 4: Prepare documents for clearance
Completing and sending the export declaration.
Identify any additional documents that may be required and plan for customs authorities to require additional documents or perform physical checks.
Present your goods for export to customs for export and exit.

What happens after submitting your export declaration?

There are three modes:

Your goods may be released for export based on your submitted export declaration.
You may be asked to submit additional documents before clearance.
Your export may be selected for a document as well as a physical check.
Step 5: Preparation of documents for customs clearance in the destination country
Coordinate with your buyer what documents are required by the competent authorities in the destination country.
Agree with the buyer what documents each person is responsible for providing and who is responsible for clearance and paying customs duties as well as additional taxes and duties. Only accept responsibilities that you can handle.

What goods are suitable for export?

Exporting goods that are welcomed in the global market due to their high quality, reasonable price or specialization can bring exporters high profitability for their business. Below are some of the goods that are useful for export:

Agricultural products: Agricultural products such as grains, fruits, vegetables and nuts are welcomed in the world market and due to their high quality and reasonable price, they can be a suitable export product for exporters.
Metal goods: Metal goods such as steel, copper and aluminum can be good export goods for exporters due to their high demand in the world market and the specialization of their production.
Petrochemical products: Petrochemical products such as polymers, resins and fertilizers are welcomed in the world market and due to the specialization of their production and reasonable price, they can be good export goods for exporters.
Electronic products: Electronic products such as mobile phones, tablets, computers and their accessories are welcomed in the world market and due to their high technology and high quality of production, they can be good export goods for exporters.
Pharmaceutical products: Pharmaceutical products such as drugs, vaccines and raw materials of drugs are welcomed in the world market, and due to their high quality and effectiveness in treating diseases, they can be good export goods for exporters.

It should be noted that every country has unique conditions for export and should choose the appropriate export goods according to the available conditions and resources.