Exporting Goods Internationally: A Strategic Business Approach

Exporting goods abroad is one of the strategic steps taken by entrepreneurs to expand their market reach and enhance the competitiveness of their products in the global market.

This step not only opens opportunities for new businesses but also helps the national economy grow through increased foreign exchange earnings. However, to run a successful export business, entrepreneurs must understand the procedures, meet the requirements, and prepare the necessary documents.

Therefore, read this article to the end to find complete information on how to export goods abroad, the benefits, requirements, and steps to export goods internationally.

Steps for Exporting Goods Abroad

Exporting goods requires careful preparation and compliance with regulations. Here are the steps to follow:

1. Market Research for International Markets

Entrepreneurs need to understand the needs and trends in the destination country, analyze product competitiveness, and study the applicable regulations and quality standards. This is important to ensure that the product can be accepted and compete in the international market.

2. Product Preparation

Ensure products meet international standards in terms of quality, packaging, and labeling according to the regulations of destination countries. Products that do not meet these standards may impede the export process.

3. Legal Compliance

Export legality requirements must be fulfilled, such as obtaining a Trade Business License (SIUP), Company Registration Certificate (TDP), and Customs Identification Number (NIK). These legal documents ensure exports are conducted lawfully.

4. Export Documentation Submission

Prepare important documents such as commercial invoices, packing lists, and Certificates of Origin (SKA). These documents are necessary for customs processing and goods shipment.

5. Goods Shipment

Select the appropriate shipping method (land, sea, or air) according to requirements, using reliable expedition services to ensure goods arrive safely and on time.

By following these steps, goods export can proceed smoothly and open business opportunities in the global market.

Read Also: 10 Easy Ways to Open a Business Abroad!

Benefits of Exporting Goods

Exporting provides various benefits for both business owners and the national economy, including:

1. Increased Business Revenue: Exporting allows businesses to sell products in broader markets, increasing turnover.
2. Market Diversification: Through exports, businesses don't solely depend on domestic markets but also expand their reach to international markets.
3. Enhanced Local Product Reputation: Products that successfully enter global markets bring a positive image to the quality of local products.
4. Contribution to National Economy: Every export transaction contributes to increasing the country's foreign exchange.

Requirements for Exporting Goods

Exporting goods internationally involves more than just selling products; it also requires compliance with various regulations and preparing necessary documentation. This process ensures that shipped goods meet international standards and are accepted in destination countries. Below is a comprehensive explanation of the requirements that business owners must fulfill before exporting:

1. Purchase Order (PO) Document

This document serves as proof of request from overseas buyers. The purchase order becomes the basis for creating invoices as a payment collection tool for buyers.

2. Legal Export Authorization

If you intend to export goods, you must have official export authorization. To become an authorized exporter, you must fulfill several legal requirements, such as:

1. Trade Business License (SIUP): This document indicates that your business is officially registered as a business entity.
2. Company Registration Certificate (TDP): This document proves that your business is registered with the Department of Trade.
3. Tax Identification Number (NPWP): NPWP is used as a tax identifier that business owners must possess.
4. Customs Identification Number (NIK): You can obtain a NIK from the Directorate General of Customs and Excise as an official exporter identity.

3. Export Documentation

An important step in the export process is preparing the necessary documents. Several export documents that must be prepared include:

1. Sales Contract
2. Commercial Invoice
3. Packing List
4. Certificate of Origin (SKA)
5. Bill of Lading (B/L)
6. Letter of Credit (L/C)
7. Export Declaration Form (PEB)

4. Export Product Preparation

Business owners need to ensure that products for export meet international market standards and demands. This includes several important aspects, such as quantity, where goods must be available in sufficient amounts to meet demand. 

Product quality must also be adjusted to standards applicable in the destination country for products to be well-received. Packaging becomes an equally important factor, where products must be packaged in an attractive manner and in accordance with destination country regulations. 

Additionally, shipping schedules must be carefully arranged to meet buyer demands and ensure timely delivery.

Read Also: 8 Easy Ways to Transfer Money Abroad

5. Operational Preparation

Operational preparation is a critical step in ensuring a smooth export process. Several operational aspects that need attention include:

1. Logistics strategy for shipping goods.
2. Knowledge of export-import policies in destination countries.
3. Understanding of export procedures.

How to Export Goods Internationally

After all requirements are met, follow these steps:

1. Research target countries with high market potential for your products.
2. Register your products on international platforms such as Alibaba, , Amazon, or government sites to attract buyers.
3. Ensure all legal documentation is complete according to destination country regulations.
4. Ensure all necessary documents are prepared before shipping.
5. Submit export documents to customs to obtain shipping permission.
6. After documents are approved, you can proceed with the goods shipping process.
7. Ship products through predetermined shipping channels and ensure shipping follows the schedule.

Read Also: 7 Business Ideas Abroad That Are Trending Right Now

By understanding and following all export steps and requirements, business owners can ensure a smooth process of shipping goods internationally. Besides opening business opportunities in international markets, success in exporting also helps enhance local product competitiveness and provides tangible contributions to the national economy. 

To support your export operations, ensure that international money transfers are also secure and straightforward. Use Easylink, a fast, secure, and reliable money transfer solution to facilitate your international business transactions!