Exporting can open up new doors for many UK businesses. The rise in globalisation and the internet has made it easy for companies to grow their audience worldwide. International markets can expand your business long into the future if it's done correctly and efficiently.
If exporting is new to you, understanding the key exporting process can provide you with enough background to do it successfully. You can partner with exporting experts, such as WTA UK, to benefit from the international markets without spending the resources on doing it yourself.
In this article, we explain the key exporting process to familiarise yourself with the requirements to fulfil international orders.
What is an export?
Generally, exports are items sold in one country by buyers in another. It's a broad term that includes items sent by mail, carried on an aeroplane, software emailed overseas or even technology shared in a phone conversation.
International trade helps businesses expand by rapidly increasing their customer base. The success of your export operations depends on creating a streamlined process that considers all of the requirements for compliance. Exports can have an excessive process attached to them because they deal with more than one country, which is where the complications come from.
The key exporting processes
To explain the complete exporting process from the UK, we can break it up into three sections; ordering, shipping and arrival:
1. The ordering process
To begin the exporting journey, an order is agreed between a buyer from one country and a seller from another. We go into more details below:
Receive an enquiry
To get the process started, a buyer will enquire about an item for sale. They can ask about the product's details, pricing and shipping process. This can come from many platforms, including your website or through international trade websites. A letter of enquiry will be sent to you outlining their interest and a request for a quote.
Receive an order
When a buyer is ready to purchase, they'll create a Purchase Order document that confirms the exact details of the goods to be exported. The buyer will send this document directly to the supplier, and it should generally reflect the supplier's quote.
Following this, the supplier should send a Proforma Invoice document to acknowledge the purchase order and confirm the details of the exported goods. Both parties are to sign both documents before the export can progress to the next stage. These documents are legally binding, so any disputes relating to the order will reference them.
2. The shipping process
When both parties have confirmed the order, the exporter can produce them or make them available. The shipper will need to package the goods and arrange the export process in line with the shipping documents below:
Commercial Invoice document
A Commercial Invoice is an essential document in the exporting process as it provides the details of the goods in the shipment. The Commercial Invoice is required at the country of destination before customs can clear it. It's also a key supporting document for insurance claims.
Shipper's Letter of Instruction (SLI)
Each export must come with a Shipper's Letter of Instruction (SLI), which provides the complete instructions for the export agent. The SLI is an essential legal document because it outlines the needs of the exporters after they hand over the goods. The freight forwarders can then arrange the logistics of the cargo correctly.
Bill of Lading document (BoL)
A Bill of Lading document (BoL) is issued by the carrier to the exporter to confirm proof of shipment. The BOL is a legal transport document, and it's essential for all exported shipments. The exporter should also send a copy of the BoL to the importer.
Certificate of Origin (COO)
The Certificate of Origin (COO) describes where the goods originated. The COO is widely used in international trade because it helps customs officials determine which rules apply to the export. It's especially important when the importing and exporting countries have a free trade agreement so that the export can claim duty-free entrance.
Export Permits / Licenses
Some countries require export permits and licenses to be able to export certain goods especially if they are restricted. . It is important that you verify this with your freight forwarder.
Phytosanitary certificate
A phytosanitary certificate can be required if you are shipping regulated goods such as plants, plant products or other regulated articles. This certificate is required for the products mentioned above to be cleared through customs before the shipment arrives in port.
Packing List document
The Packing List document states how the goods have been packaged inside the shipment. Packing Lists typically include an inventory list as well as package types, sizes and weights of all packages in the shipment. Packing Lists can act as a record for your inventory if something was to go wrong.
Verified Gross Mass (VGM) declaration
You will need a Verified Gross Mass (VGM) document if you're shipping a full container. VGM's are required so that the carrier knows the exact weight and can plan within their limitations. It's not needed when you're not shipping your items in a full container.
Packing Declaration ISPM15 document
A packing declaration describes the packing materials used to pack the goods in the shipment. This document highlights any risky materials that could contain insects and diseases that could be a hazard to the destination country.
3. The arrival process
Once the shipment arrives in the destination country, the freight forwarder sends the appropriate documents to the importer. Arrival documents can include customs clearances, arrival notices and invoices.
Summary
For businesses that are new to exporting, the key exporting processes can seem overwhelming. There can be a lot to learn in order to comply with international shipping regulations. Companies like WTA are well-established in exporting and freight forwarding. If you want to pick up some quick tips for exporting product out of the UK, click here.
Partnering with us means you benefit from a system that's already in place and ready for you to capitalise on. Contact us to make an enquiry today.
