Detailed 10-Step Goods Export Process Diagram [2024]
Businesses will contribute to faster economic growth if they have a comprehensive understanding of the procedures involved in exporting goods abroad. Additionally, knowing the goods export process the timely and efficient transportation of commodities. Don't miss this article by Dolphin Sea Air if you're also learning about the typical export procedure phases!
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1. General comprehension of the exportation of goods procedure
Vietnam is currently pushing for comprehensive economic growth and integrating more and more. This presents a difficulty as well as an advantage for a large number of logistics-related firms. It is challenging for organizations to enter international markets when they do not fully comprehend the goods export process. If yes, let's examine a few of the following commercial issues:
1.1 What does it mean to export goods?
Transporting things from one nation to another for usage or sale is known as exporting goods. Individuals or organizations in the nation that have the items to sell to individuals or organizations in another nation that need to source the commodities can carry out this operation. The following steps are typically involved in the goods export process: packing, preparing the goods, shipping them, clearing customs, and delivering them to the destination.
At the moment, exporting commodities internationally is a commercial endeavor with the goal of advancing the economic growth of the nation. Many people find work in the expanding export sector. Additionally, if the commodities export procedure is carried out properly, it will support the growth of partnerships with nations worldwide. Vietnamese goods and services have also become more accessible to a wider range of nations since that time.
1.2 What are the steps involved in exporting products?
Businesses must become knowledgeable about the goods export process and the contents of goods paperwork if they hope to clear products swiftly. Thus, the following are some of the documentation that companies must meticulously and completely prepare:
- Declaration of customs.
- Goods must have documentation from customs authorities, such as export license or export permit documents, for shipments that are managed under export licenses.
- There must be a commercial invoice (Invoice) or other comparable documentation in the event that the buyer pays the vendor.
- Notification of results return or exemption from specialized inspection, or other documentation required by law for specialized management and inspection of import and export commodities.
- A certificate attesting to the product's specialist inspection by a qualified body.
- The business may submit any copy in situations where particular regulations demand photocopies or do not specify which should be submitted—the original or a photocopy.
- If the exporting company has a specialized inspection certificate that is still valid and has been used multiple times, it just needs to submit the products to the customs branch where the first export is made once.
- Entrustment contract in the event that the receiving party entrusts, using the license or confirmation documents of the entrusting party, the export of goods belonging to a group that requires a specialized inspection certificate, export license, or documents proving the enterprise's eligibility under the laws.
- Papers and documentation (provided once when exporting the first products) demonstrating the enterprise's eligibility to export goods in accordance with legislation.
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1.3 Which kind of fees are part of the price of exporting goods?
Businesses are required to incur certain expenses in accordance with the protocols and procedures involved in exporting goods overseas. Businesses must comply with legislation and pay in full for some of the following expenses:
- Export tax: Companies are required to pay the entire amount of tax in accordance with their duties. The government is quite concerned about the current export levies since they make it easier for companies to ship goods abroad. As a result, the following are the specific tax regulations:
- Businesses that export goods that fall under the taxable products category are required to pay export tax. This import and export tax will not apply to the enterprise's exported items if they are not on the approved list.
- Value-added tax: As of right now, Vietnamese exports to international markets are exempt from value-added tax (VAT) under existing legislation.
- Shipping costs: Export goods can be transported in a variety of ways, including by air, road, sea, etc. Shipping charges will differ based on the mode of transportation and the time of delivery. Businesses must cover the following basic shipping expenses for every export package:
- The price of shipping products from a warehouse or manufacturing to an export port.
- Insurance, quarantine, and C/O fees must be paid.
- The expenses associated with clearing customs, shipping internationally (if sold under CNF terms), paying foreign delivery fees (if sold under DDP, DDU),...
- Local fees at the port, like THC, package lifting/lowering, loading and unloading, seal fees,...
2. Comprehensive export procedure for products
Businesses must correctly and rigorously adhere to the international exporting process in order for commodities to reach the countries where they are needed. Businesses will save a great deal of money and time when all the phases in this procedure are completed. The comprehensive 10-step export process diagram looks like this:
2.1. Step 1: Construct and execute international trade agreements
In the process of exporting goods, contract negotiation and signing come first. A foreign trade agreement must be exchanged and negotiated before both parties agree to sign it. The conditions of the contract need to be carefully reviewed because they will have a direct impact on the parties' rights and interests. Prior to accepting and signing the terms of the agreement, companies ought to take the following actions:
- Market research in general.
- Create possible business plans.
- Look for a way to test it.
- Determine the cost of items that are imported and exported at a profit.
Following that, the parties involved in the import and export of commodities will negotiate the terms and conditions. The following significant clauses and aspects must be included in the contract: delivery, payment method, pricing, service fees, goods packaging, and so on. Foreign commercial contracts will be signed by both sides with mutual consent.
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2.2. Step 2: Follow the guidelines to apply for an export permit
Applying for an export license is a time-consuming process. In order to properly prepare documentation, businesses must therefore thoroughly understand the import-export procedure in advance. If a shipment is part of the group that needs a license in order to export products to a foreign country, the owner of the shipment will work with the authorities to apply for an export license. In this instance, the company will submit a single application for a license that it may use repeatedly.
2.3. Step 3: Locate and choose an empty container
Should the export customs officer sell your shipment on a CIF basis, they will:
- Contact with the freight forwarder (FWD) or shipping business directly. Next, move on to look for an affordable order shipping cost.
- Businesses do not need to complete the aforementioned contact step for shipments sold under FOB terms because the consignee will reserve the ship on their own.
Businesses who export goods under CIF must travel to the port to exchange for a booking confirmation before they can pick up empty containers. This is to verify with the shipping business that the exporter accepts the exporter's offer to accept and seal the container. The exporter shall obtain Transport confirmation for the FOB exportation process. This implies that the manufacturer will carry out the same export procedure in CIF format and exchange for Booking.
2.4. Step 4: Get ready and inspect the exported products
The business will carry out the production plan after the partner signs off on the proforma invoice. This is to guarantee the amount and caliber of goods in accordance with the agreed-upon contract. Businesses must arrange and schedule the pickup of containers for secondary packing prior to product sealing when there is a booking.
2.5. Step 5: Pack and label the package for shipping
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Packing for exported goods at the warehouse |
Packing for exported goods at the port |
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✅To package the product in this instance, the department in charge of importing and exporting commodities will cooperate with the technical department and the manufacturing staff. Businesses should take note of this:
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✅Comparable to the warehouse's export goods packing procedure. However, there will be more and tighter procedures needed for packing products at the port. In this instance, laborers must be employed to pack the cargo right at the port. Consequently, companies must pay extra costs to hire this person. |
Samples will be taken for fumigation, quarantine inspection, and other procedures if the items are part of the group that needs to be examined by a specialist at this stage of the goods export process.
2.6. Step 6: Purchase shipping insurance for exports
When traveling, every mode of transportation may give rise to issues. Consequently, purchasing insurance is a step in the international export of goods procedure. This is essential to ensure that there are no unforeseen shipping issues. The insurance limitations will change based on the goods' worth. The insurance threshold for typical exported items is 2% of the shipment's total value. Cargo insurance will not be required for export goods that are conditional, such as FOB/CNF shipments.
2.7. Step 7: Declare the processes for customs
Customs processes must be declared by enterprises in order for items to be exported without incident. Among the steps in a customs declaration are:
- Get the necessary paperwork ready, including the declaration's opening documentation.
- The registrar will open a customs declaration to enter shipment-related information based on the information given. The declaration will then be given to the leader of customs for signature and confirmation that the items have been cleared through customs. The shipment will enter the green channel if there are no issues. Conversely, shipments that require inspection due to questionable issues are categorized as red or yellow channels.
- Pay the required amount to complete the customs process.
- Get the customs authority's authorized customs declaration.
- To have the container and seal checked, show the port controller the verified declaration. Your container will then be received by the system after that.
- The forwarding crew will need to verify the container status confirmation and handover record when the container is unloaded, since it will be noted in the ship's book.
- Following the buyer's receipt of the exported items, the delivery personnel will create the following export documentation for shipment:
- Customs declaration: 01 original + 01 copy
- Commercial Invoice - Commercial Invoice: 01 original copy
- Ship Bill - Sea bill of lading
2.8. Step 8: Transfer the merchandise to the vessel
As per the goods export procedure, the firm needs to provide the Ship Bill to the company for creating a bill of lading once the customs declaration procedures are finished. Prior to the actual export of the products and Closing Time, this job needs to be completed. When the company receives the bill of lading, which includes the three original bills or the surrendered bill, the procedure of sending the items to the ship will be finished.
2.9. Step 9: Pay for the items that were exported
Payment is the following stage in the export of products to another nation. In order for payment to be made, the application must guarantee that all documents are complete:
- Commercial Invoice - Commercial invoice
- Packing List (Packing list of exported goods)
- Sea shipping
- C/O paper (certificate of source of goods)
- Specialized inspection certificate (sterilization certificate)
Businesses that pay using letters of credit must notify the guarantee bank by submitting the necessary documentation.
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2.10. Step 10: Forward paperwork to the overseas purchasing division
As specified in the signed contract, submit all necessary documentation, including the originals. In order for partners to receive information, documents should also be scanned and provided by email at the same time. Proceed to arrange the procedures involved in bringing products into their nation.
3. Notes to remember while exporting products
Businesses need to be aware of several key points in addition to the goods export process in order to prevent items from not being carried efficiently. Businesses should bear the following in mind when they conduct the export process:
- Documents required by regulations: Complete documentation of commodities must include documents attesting to the goods' provenance, stamps, and other administrative paperwork. Businesses should take pictures of drafts and soft copies of the key papers for the buyer while adhering to the export procedure. The buyer's responsibility is to verify and validate the accuracy of the information. Please add any mistakes or omissions right away.
- Weight and shipping method: Businesses select the most efficient mode of transportation based on the number of goods. Select air freight, for instance, if the items are light and must be delivered swiftly. On the other hand, two forms of canal or road transport for export commodities should be employed for extremely long and extremely heavy goods.
- Make contact with the shipping unit to obtain information on shipment routes, schedules, and freight costs. In order to sign the delivery record and offer further information, the company additionally gets in touch with the delivery person directly. To obtain bills of lading and settle the fees, lastly get in touch with the business to exchange records and receipts.
- Packaging of goods: There will be unique rules and specifications for every item in the export procedure. The goal is to ensure that the commodities are adequately protected to prevent damage during transit. This will vary depending on the nation. For instance, items going to the US need to be declared as AMS, commodities going to Europe as ENS, etc.
- Information about the recipient's address: It needs to be written properly and completely. By doing this, items won't be returned because the recipient's status is unclear.
- Examine the products' quality before exporting: Before exporting from Vietnam, the products' quality must be thoroughly examined. This is to guarantee that the buyer receives goods of the same caliber as the original. The company's reputation and brand have improved since then. In addition, this keeps the two parties from having to deal with issues like product quality compensation or lawsuits in the future.
- Address disagreements or grievances: Adhere to the agreement and steer clear of mishaps or mistakes. Businesses need to respond to unforeseen events with poise, caution, and promptness. Businesses need to exercise extra caution starting with the contract drafting phase of the goods export procedure.
4. Dolphin Sea Air - Reputable import and export services for goods in Vietnam
Dolphin Sea Air, which was founded in 2008, is presently among Vietnam's top export-import transportation companies. With the goal of offering a whole chain of logistics solutions, we have worked tirelessly every day to raise the standard of our services and make significant advancements in the movement of goods across international borders.
Dolphin's companies and key partners are currently found both domestically and outside. Dolphin is growing more powerful and accomplishing numerous goals because:
- The goods export process is a quick and efficient operation.
- Our workforce is skilled, committed, and informed about the industry.
- 15 years of expertise and a vast and sustainable partner network; shipping dates are handled sensibly and satisfy the urgent needs of numerous small and large organizations.
Customers can use the details below to get in touch with us if they would like guidance on the import and export procedures for goods to other nations:
Dolphin Sea Air Services Corporation
- Office contact:
- Hanoi: 18th Floor, Epic Tower, 19 Duy Tan Street, Dich Vong Hau Ward, Cau Giay District
- Hai Phong: 3rd Floor, No 274 Danang Street, Van My Ward, Ngo Quyen District, Haiphong City
- Da Nang: 6th Floor, Truc Thang Mien Trung Building, Nguyen Van Linh Roadm Thac Gian Ward, Thanh Khe District, Danang City
- Ho Chi Minh City: 6th Floor, Hai Au Building, 39B Truong Son Street, Ward 4, Tan Binh District, Ho Chi Minh City, Vietnam
- Hotline: 1900986813
- Email: info@dolphinseair.com
This is the goods export process for companies that wish to understand how to export goods in compliance with rules. With any luck, the information above will save companies a great deal of time, money, and effort when it comes to export customs clearance procedures. Always follow and go with Dolphin Sea Air to learn and stay up to date on additional helpful information regarding logistics services!
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