On the other hand, export implies a trade in which a company sells goods to other countries which are manufactured domestically. Trade refers to that branch of commerce which deals with the sale, transfer or exchange of products and services for a money consideration. It also aids in supplying goods to the ultimate consumer.
Trade is of two types internal trade and external trade. Internal trade is when goods are traded within the geographical boundaries of the country and includes wholesale trade and retail trade. On the contrary, external trade occurs when goods are traded different countries of the world and includes import, export and entreport. Basis for Comparison Import Export Meaning Import is when a company buys goods from another country, with an aim of reselling it in the domestic market.
Overview and Key Difference 2. What is Import 3. What is Export 4. Import means receiving items or services to the home country from another country on the financial basis. Basically, import is buying products and services from other countries.
It directly affects the economic status of the receiving country. A lot of countries import the crude oil and fuel from Middle East countries that are rich with them. Therefore, the importing countries have to spend a lot of their national income to import these necessary resources to their countries.
It is the endeavor of all countries of the world to achieve parity in their exports and imports. After September 11, the twin goals of safety and facilitation were met through three interrelated initiatives:.
The World Customs Organization WCO created a framework that calls for cooperation between the customs administrations of different countries. Under the WCO Framework of Standards to Secure and Facilitate Global Trade, if a customs administration in one country identifies problems in cargo from another country, that customs administration could ask the exporting country to do an inspection before goods are shipped. Businesses across the world benefit in terms of speed and cost if there is one common set of security standards globally, and the WCO is working toward that goal.
In addition to the main players described above, intermediaries can get involved at the discretion of the importer or exporter. Entrepreneurs and small and midsize businesses, in particular, make use of these intermediaries, rather than expending their resources to build these capabilities in-house. A freight forwarder Entity that typically prepares the documentation, suggests shipping methods, navigates trade regulations, and assists with details like packing and labeling.
At the foreign port, the freight forwarder arranges to have the exported goods clear customs and be shipped to the buyer. The process ends with the freight forwarder sending the documentation to the seller, buyer, or intermediary, such as a bank.
The EMC handles the necessary documentation, finds buyers for the export, and takes title of the goods for direct export. In return, the EMC charges a fee or a commission for its services. Banks perform the vital role of finance transactions. Various forms of documentation are required for import and export transactions. The bill of lading acts as proof that the shipment was made and that the goods have been received.
A commercial or customs invoice The bill for the goods shipped from the exporter to the importer or buyer. Exporters send invoices to receive payment, and governments use these invoices to determine the value of the goods for customs-valuation purposes. IBM does business with countries. Daily, it sends 2, customs declarations and ships 5. The export declaration Documentation that provides the contact information of both the exporter and the importer i.
Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors. Mary McMahon. Please enter the following code:. Login: Forgot password?
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