Exporting is an integral part of all international business, whether the company is large or small, or whether it markets in one country or is a global marketer. Goods manufactured in one country and destined for another must be moved across border to enter the distribution system of the target market.
Most countries control the movement of goods crossing their borders whether leaving (exports) or entering (imports). Export and import documents tariffs quotas and other barriers to the free flow of goods between independent sovereignties are requirement that must be met the exporter the importer or both.
In addition to selecting a target market designing an appropriate product establishing a price, planning a promotional program and selecting a distribution channel, the international marketer must meet the legal requirements involve in moving goods from one country to another. The exporting process includes the licenses and documentation necessary to get the shipment legally into another country.
Firms often have staff experienced in dealing with export mechanics but agencies government and private are available to provide expert assistance to firms confronted with unfamiliar situations or a task that is too burdensome. More and more companies are finding it cost effective to outsource many exporting activities, especially since the terrorists attack on New York’s World Trade Center (9/11) called new security and compliance requirements into play. In a number of cases exports are processed in house. The necessary mechanics for exporting can be largely completed using the Internet. These mechanics of exporting are sometimes considered the essence of foreign marketing: however although their importance cannot be minimized they should not be seen as the primary task of international marketing but as a necessary step in completing the process of marketing.
Countries impose some form of regulation and restriction on the exporting and importing of goods fro many reasons. Export regulations may be designed to conserve scarce goods for home consumption or to control the flow of strategic goods to actual or potential enemies. Import regulations may be imposed to protect health, converse foreign exchange serve as economic reprisals protect home industry, provide revenue in the form of tariffs and ensure national security. To comply with various regulations the exporter may have to acquire export licenses or permits from the home country and ascertain that the potential customer has the necessary permits for importing the goods. The rules and regulations that cover the exportation and importation of goods and their payment, and the physical movement of those goods between countries are the special concerns of this article.
Although the US require no formal or special license to engage in exporting as a business permission or a license to export may be required for certain commodities and certain destinations. Export licensing controls apply to exports commodities and technical data from the US; re-exports of US origin commodities and technical data from a foreign destination to another foreign destination US origin parts and components used in foreign countries to manufacture foreign products for exports, and in some cases, foreign products made from US origin technical data. Most items requiring special permission or a license for exportation are under the control of the Bureau of Industry and Security (BIS) of the Department of Commerce.
The volume of exports and the number of companies exporting from the US have grown spectacularly over the last decade. In an effort to alleviate many of the problem and confusions of exporting and to expedite the process, the Department of Commerce has published a revised set of export regulations known as the Export administration regulation (EAR). They are intended to speed up the process of granting export licenses by removing a large number of items forms specific export license control and by concentrating licensing on a specific list of items, most of which affect national security, nuclear nonproliferation terrorism or chemical and biological weapons. Along with these changes comes a substantial increase in responsibility on the part of the exporter since the exporter must now ensure that Export Administration Regulation is not violated.
The export control provisions of the Export Administration Regulations are intended to serve the national security, foreign policy and nonproliferation interests of the US and, in some cases to carry out its international obligations. The EAR also includes some export controls to protect the US from the adverse impact of the unrestricted export of commodities in short supply such as Western cedar. Items that do not require a license for a specific destination can be shipped with he notation NLR (no license required) on the shipper’s export declaration.