Nov 2020, 20

What is E export? Why E-export?

Barış Dur
| Blog
What is E export? Why E-export?

What is E-Export?

Advances in technology have enabled commerce to gain a new dimension. E-commerce, which makes the shopping culture faster, easier and more accessible through digital channels, has also created the infrastructure for selling outside the borders of the country. In the past, it was necessary to reach distributors or direct consumers in the target country in order to export, but now it is much easier to reach the end user with this new system that came into our lives with the concept of e-export. E-export is an advanced e-commerce structure that allows direct sales to consumers in other countries through digital channels, and has various conveniences in shipping, collection and bureaucratic transactions.

What are the differences between Export and E-Export?

Perhaps the most crucial part regarding export is the customs clearance process. It is also the customs clearance process, where you need to spare the most time in the process, follow all the steps in a certain discipline and increase your expenses with payments such as taxes and fees. However, it should put Turkey's laws as well as the procedures and laws that apply in the country you are shipping, you must make a very good analysis. The smallest mistake you will make in the export process may come with a very heavy return. E-Export is much faster than the export we know, thanks to various incentives, legal regulations and many improvements that make your life easier. For example, while customs clearance works take 2-7 days in normal exports, this process results in 24-48 hours in e-export.

E-export is supported by various tax exemptions with the regulations made. These exemptions, which vary from country or region to region, provide data exemption for e-exports up to a certain price. You can find examples of tax exemptions below:

European Union: 22 EUR and below, Russia, Belarus and Kazakhstan: below 1000 EUR, Azerbaijan: below 500 EUR, Ukraine: below 150 EUR, USA and Australia: below 800 USD and Gulf Cooperation Countries: Customs duty on individual orders below 270 USD and It is exempted from VAT payment.

What are the advantages of e-export?

E-export, which has rapidly replaced exports in recent years, is supported by states as well as its advantages such as making profits and increasing awareness of companies in the short term. So if we want to list the advantages, what are the leading advantages?

1- Investment costs are much lower compared to traditional exports.
2- Unlike in classical exports, you do not need a bank letter of guarantee. Payments are managed by online payment organizations.
3- Risks are minimal. The problems experienced in the products sent with the container bring serious obligations for the seller.
4- Accessibility is at the maximum level. Thanks to the sales and marketing operations carried out through digital channels, your customers can reach you more easily and make their purchases at any time.
5- Since it is micro export, you do not deal with certificates and similar documents.
6- The government has incentives and support regulations for e-export. For example, a company dealing with e-export receives a refund of the VAT amount paid by VAT refund.
7- You will not be stuck with borders. The whole world becomes your potential customer.

What are the delivery types for e-export?

Another issue that you should pay attention to when making e-export is the type of delivery. There are two different types of delivery that work on the basis of the sharing of customs duty between the parties. To explain them briefly,

DDP: In this type of delivery, which is translated as duty-paid delivery, the buyer makes all payments to you and you pay the buyer on behalf of the buyer, including customs duties, and deliver the order to him.

DDU: DDU, which is the opposite of DDP, is a type of service where customs duties and fees are calculated when they reach the recipient's customs. When the order reaches customs, all duties and taxes are invoiced on behalf of the buyer, in this delivery type, the buyer pays all taxes.

When we examine the delivery types above, it is important to work with the DDP delivery type to ensure customer experience and fast delivery. Considering the convenience and exemptions brought by e-export, it will be easier and more profitable to manage the whole process.