Exporting goods abroad is one of the business activities that business people dream of. Entrepreneurs of course want the business they run to develop so they can reap lots of profits. One of the efforts made is to expand their market reach by exporting the goods they produce.
If you want to develop the business you started, you should consider an export business. Of course, SMEs (Small and Medium Enterprises) are familiar with the term export. Exports are often interpreted as a marketing activity in business that has complicated stages.
Most entrepreneurs consider exports to be synonymous with expensive costs, with the impression that dealing with customs will be complicated, and the quantity of goods to be exported must be in large quantities or at least one container. However, export activities that are carried out well will bring success and large profits. Apart from being useful for increasing the market share of business actors in Indonesia, export activities are also useful for increasing state income.
In exporting, there are a number of stages that you must prepare first. You need to study and understand well the ins and outs of exporting. It is important for you to take this step, considering that export activities involve you and also business people from abroad. Apart from that, you also need to understand the various policies and regulations relating to the business you run, both those that apply domestically and in the country you are exporting to.
Preparations and Requirements that Must Be Completed Before Exporting Goods Abroad
Prepare Purchase Order Documents
Make sure you have the purchase order document. This document is proof of a request for goods from a buyer located abroad which will later become a requirement for creating an invoice document or collection letter to the buyer.
Create an Export Plan
Export planning is something you must prepare well. You must prepare your export plan in detail and thoroughly to make your future steps easier. There are a number of things you must discuss first with potential importers, including:
- The products you export
- Determine product classification
- Export destination country
- Product packaging
- Goods delivery route
- Determining the export schedule
- Fumigation (pest free)
- Prepare a certificate of origin (SKA)
- Prepare export notification letter (PEB)
Prepare Export Documents
You must also prepare a number of important documents to support the delivery of goods. The documents in question include: a. Packing List This document comes from the sender which contains information and specifications of the goods, such as the packing list number, date the packing list was created, PO number, complete data on the exporter and importer, full name of the goods, gross weight and net weight of the goods, and number of goods.
b. Commercial Invoice: This document contains information on goods data and the value of the goods in foreign currency according to the country of export destination, consisting of invoice number, PO number, complete data on exporters and importers, quantity of goods, name of goods, as well as price per unit and price. total.
c. Proof of payment of export duties. This document is very important and must be owned by exporters so that goods can be sent abroad. Things that can support this process are that the PEB application has been approved with an Export Approval or PE document and payment of export duties in accordance with the rates stated in the goods export notification document. Once all the documents are complete, then the goods can be sent abroad.
How to Export Goods Abroad
If you understand all the preparations and conditions, it's time to export in the following way.
Find out about the goods you export
First of all, you have to find out whether the products you are exporting are goods that are prohibited from being exported by the Indonesian government or not. To find out, you can check via www.insw.go.id and you will get information regarding goods permits and taxes. Also make sure that the goods you will export can enter the country you specify.
Look for product buyers abroad
In this process, you can respond by creating a marketing team or by creating a website to introduce your company and products. Apart from that, you can also enter your goods or products on international e-commerce or on platforms that are usually used in your destination country.
Prepare important items and documents
If you have found a buyer, quickly prepare the goods and documents. Next, you must notify Customs by bringing the PEB documents and other supporting documents.
Getting NPE
If Customs has approved your export goods, you will get an NPE. From here you can stuff goods to be sent to the destination country.
Shipping Process
In parallel with the customs clearance process at customs, you can carry out the shipping process (handling) of the goods to be sent. You can prepare export goods at the exporter's warehouse, create documents related to shipping such as invoices, packing lists, etc., pack goods according to the standards you have agreed with the buyer, load goods into containers, prepare trucks to take containers to the port, and then load goods to ships or planes.
Apart from that, you can also use the PLB or Bonded Logistics Center services which are provided by the Indonesian government for all Indonesian companies.
Insurance
The next step, make sure you don't forget to insure if the agreement between you and your buyer is CIF (Cost, Insurance, and Freight).
Take payment at the bank
Make payment at the bank (if payment uses a Letter of Credit or payment at the end after the goods are shipped). The choice of payment methods from buyers to exporters varies. Apart from paying at the end, you can also make payment in advance before the goods are shipped or you can also give half payment as a down payment and the remainder will be paid after the goods depart or when the shipping documents have been released.
The export business does have quite promising opportunities, especially if you can find the right or suitable market. You have to make sure that you have studied and also run this business with the right steps, so that it is not impossible that everything you do can run smoothly and successfully.
You need to prepare yourself and your product as well as possible so that you can penetrate foreign markets and overcome intense business competition. So, if you are sure and ensure that all preparations and requirements have been met, don't hesitate to start exporting abroad. It may be a little complicated to become an exporter, but that doesn't mean you have to give up. Stay enthusiastic about developing your business until it is known to the world and brings in lots of profits.