Exportation refers to the legal departure of domestic or nationalized products to international markets, which is transcribed as a key activity for the economic growth of any country. This process allows importation and exportation companies to diversify markets, increase income, and enhance their global competitiveness.
In Chile, any natural, legal, or foreign person residing in the country can carry out exports and become an exporter as such, according to the Ministry of Foreign Affairs. However, it is important to meet certain legal requirements, such as being up to date with tax payments and having formalized the start of commercial activities.
Why Export?
Exporting is not only an opportunity to relate to international markets but also drives business development and strengthens the national economy. For an export company, entering foreign trade represents an opportunity to benefit from free trade agreements and tariff agreements, maximizing its competitive advantages.
Requirements to Carry Out Exportation in Chile
The National Customs Service, which is in charge of regulating import and export processes, requires compliance with certain processes before starting product exports.
Main requirements:
- Evaluation of Operational and Financial Capacity
It is crucial to analyze whether the company has:- Productive capacity: the ability to meet foreign demand without neglecting the domestic market.
- Financial capacity: availability of funds to cover transportation, tariffs, and international insurance costs.
- Team training: qualified personnel to manage import and export processes.
- Registration with the Internal Revenue Service (SII)
All individuals, both natural and legal, must process the Start of Activities with the SII, which is mandatory to legally operate as an export company. - Compliance with the Customs Regulations Compendium
This is issued by the Customs Service, which contains information on merchandise classification, customs valuation, and fiscal procedures. - Obtaining the Tariff Code
Each product intended for export must have a tariff code that consists of a standard numerical classification that identifies it internationally. This code is processed with the help of a Customs Agent, who must be registered in the official list. - Certificate of Origin
This certificate allows exporters to access tariff benefits under Chile’s trade agreements.
Remember: some agreements allow this certification to be processed electronically through the Digital Certificate of Origin System (SCOD), facilitating the process.
Steps to Start Exportation
Step 1: Market Research
Identify countries with high demand for your products, considering tariff, cultural, and regulatory barriers.
Step 2: Necessary Documentation
Prepare the required documents, such as:
- Commercial invoice.
- Packing list.
- Specific certificates depending on the type of merchandise.
Step 3: Selection of Incoterms
Incoterms define the responsibilities of sellers and buyers during the export process:
- EXW (Ex Works): the buyer assumes all costs from the seller’s facilities.
- FOB (Free on Board): the seller covers until the merchandise is loaded onto the transport.
- CIF (Cost, Insurance, and Freight): the seller includes transportation and insurance costs to the destination port.
Step 4: Logistics and Transportation
Hire services from import and export companies to manage international transportation, customs, and insurance, ensuring an efficient process.
Step 5: International Commercial Strategy
Participate in international fairs, establish a presence on digital platforms, and collaborate with local distributors to maximize the visibility of the products.
Benefits and Challenges of Exporting
Advantages:
- Expansion of markets and diversification of income.
- Access to preferential trade agreements.
- Increase in business competitiveness.
Challenges:
- Complying with international regulations.
- Adapting to new cultures and market dynamics.
- Managing logistical and fiscal costs.
Being an exporter involves challenges, but it also opens enormous growth opportunities for companies. With a solid strategy, knowledge of legal requirements, and proper use of tools like the Incoterms EXW, CIF, FOB, any company can successfully position itself in the international market. If you wonder “How to export?”, remember that the key lies in planning, regulatory compliance, and constantly seeking global opportunities.
Don’t forget that at ComexPoint, you can optimize your logistics and be part of the exporter community.
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