Exporter

The definition makes it clear that an exporter can be either a country or an organized economic entity. Often it is a company involved in a trade. Interestingly, the transportation of goods between member countries of the European Union is not considered an export. The term exporter refers to the party to the contract that owns the goods or has the right to dispose of them. However, a person established outside the European Union may have a similar right to dispose of the same goods based on the contract for which the goods are exported, in which case the exporter may be the contracting party established in the Community. It should be noted that any exporter who wishes to obtain a movement certificate must produce this certificate at the request of the customs authorities of the exporting country in each case. It is also necessary in these cases to present the documents relating to the origin of the products concerned, as well as the documents in which any other requirements for the issue of the certificate have been laid down. Don't forget that exporters must pay taxes on the goods being shipped, so-called export duties.

Export - definition

When can transportation be considered as export? When the exported goods go to countries outside the European Union and it is done as part of paid deliveries of goods. Moreover, it must be confirmed by the customs office on the border of the European community. When transport meets all these conditions, we can talk about export. 

Export has its opposite - it is import, i.e. not a sale but purchase of material goods, goods, and services abroad and their subsequent introduction into the domestic market. Again, it should be noted here that when we are talking about purchases of goods in EU member states, we are not talking about imports, but intra-community purchases. It is important to note that both exports and imports are extremely important to the economy of each country

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VAT taxation on exports

Value-added tax, or VAT, does not have to be charged on exports, which is why it is sometimes zero percent. When does this happen? When the supplier, before the deadline for filing a return for a specific settlement period, receives a document confirming the export of goods outside the Community. If he does not obtain such a document, he is obliged to pay VAT appropriate to the country.

Export sales

Companies located in Poland are often motivated to expand their revenues, and therefore want to bring their business to foreign markets. Exporters, which they then become, introduce mechanisms of internationalization in sales, because it is not a complicated method and at the same time very effective. Of course, export is not only the sale in other countries of goods produced in Poland. It is done, among others, through franchising, i.e. offering the trademark to a company in another country in exchange for shares. It is also common to transfer a license to produce a specific product for foreign companies. A form of export can also be the construction of a foreign subsidiary, or the establishment of a subsidiary in one of the markets outside Poland. Often separate production facilities are established abroad, which of course meet all local criteria and standards when creating goods. 

Advantages of exporting

Exporters often claim that expanding their company to foreign markets is at some point the only way to grow. Moreover, they claim that it is not a compulsion, but a task performed for a certain purpose because exporting goods has many advantages, which we will present below:

• exporting reduces the cost per unit, and makes fixed costs spread over products sold abroad and at home, which consequently contributes to higher profits,
• the use of economies of scale in production (which enables export) results in lower costs of producing goods,
• export allows you to expand the market for one company, increases the number of potential customers, and thus is the basis for higher profits,
• in a new market, any exporter introducing a new product can count on high demand,
• export allows you to increase the market base, especially of companies that face significant competition on the domestic market.

Disadvantages of exporting

Unfortunately, exporting also has several disadvantages, which is why not every exporter can stay in foreign markets for a long time. Here are some negative aspects associated with exporting:

• the need for good knowledge of the foreign market (often this knowledge is insufficient),
• financing a larger-scale venture makes it more complicated,
• risks associated with foreign sales, 
• the need to hire more employees and often a whole staff that needs to be more qualified (e.g. knowledge of additional foreign languages will be necessary).

The advantages outweigh the disadvantages, this cannot be denied. After all, more and more companies are deciding to enter foreign markets. A frequent direction for exporters in recent times is Central Asia and the Middle East.

also read the article in German - Exporteur 
also read the article in Polish - Eksporter 

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