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Export processing: definition and important aspects for buyers
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Export processing in a nutshell:
Export processing includes all operational and documentary processes for the legally correct export of goods abroad. This is particularly relevant for purchasing when it comes to international procurement, as incorrect export documents can lead to delays in delivery, additional costs and legal risks.
Example: A German company imports electronic components worth 50,000 euros from Japan and must submit the certificates of origin, export licenses and customs declarations in full within 24 hours before shipment to ensure smooth transport and punctual delivery after 14 days.
Contents
What is export processing?
Export processing includes all processes required to ship goods or services legally and efficiently from one country to another. It includes preparing the necessary documents, complying with customs and trade regulations and coordinating with logistics service providers and authorities. The aim of export processing is to ensure that international trade runs smoothly and that all legal requirements are met.
Core elements of export processing
Significance for purchasing
Export processing is extremely important for purchasing, as it has a direct impact on delivery times, costs and compliance. Efficient export processing ensures that goods are delivered on time and additional costs due to delays or penalties are avoided. It also helps Purchasing to make effective use of international procurement markets and secure global supply chains.
Export processing: From manual processing to Automated Export System
Export processing forms the backbone of international trade. In practice, this process has long been characterized by manual activities that are time-consuming and error-prone. With globalization and increasing trade volumes, efficiency and accuracy in export processing has become essential. There is therefore an urgent need for a transformation towards automated processes in order to meet the requirements of modern global trade.
Old: Manual export processing
Traditional approach: In traditional export processing, all process steps are carried out manually. This includes filling out physical forms for customs documents, manually creating export documents such as commercial invoices and delivery bills, and checking documents with customs authorities and freight forwarders in person. The data is often managed in different systems or even exclusively on paper, which can lead to inconsistencies. The manual processes are not only time-consuming, but also carry a high risk of human error, which can lead to delays and additional costs.
New: Automated Export System
Automated Export System: Modern export processing relies on digital solutions and automation. The Automated Export System (AES) enables the electronic transmission of all required export data to the customs authorities. By integrating ERP systems with customs software, data can be transferred seamlessly and duplication of work can be avoided. Artificial intelligence and machine learning improve the accuracy of data and identify potential compliance risks in advance. This leads to a significant reduction in processing times of up to 50% and demonstrably reduces the error rate by 30%. In addition, real-time tracking and monitoring enable greater transparency within the supply chain.
Practical example: Automation at XYZ GmbH
XYZ GmbH, a medium-sized mechanical engineering company, decided to implement an Automated Export System. By integrating their ERP software with specialized customs software, they were able to reduce the time spent on export documentation from an average of 2 hours per shipment to 30 minutes. Compliance was improved, reducing the number of customs complaints by 40%. Overall, the automation led to annual process costs of €150,000 and enabled the company to reduce its international delivery times by 20%.
Conclusion on export processing
Export handling is a complex but crucial process in international trade. With the right combination of digital solutions, efficient document management and strategic planning, companies can optimize their export processes and achieve competitive advantages. The key to success lies in the continuous adaptation to new regulations, the use of modern technologies and the proactive management of risks. Well-structured export processing is therefore not just an operational necessity, but a strategic success factor in global business.
