Step-by-step export plan

If you decide to export outside the EU, you will reach new markets and customers. However, this does involve extra rules, such as customs declarations, export and import regulations, taxes, and export documents. This step-by-step plan explains how to export products outside the EU.

1. Choose your export market

You start with market research. Before you begin, you will want to know in which countries you have the best chance of success. Draw up a list of 3 to 5 countries that look promising. Compare them and choose 1 country to start with. This will help you keep track of things and learn how exporting works more quickly. Next, consider your market approach – in other words, how you want to sell your products. 

Which market approach will you choose?

A market approach is also known as an entry or market entry strategy. These approaches are common:

• Collaborating with a wholesaler, distributor, or commercial agent. A distributor or wholesaler holds stock on your behalf and supports your customers. A commercial agent acts solely as an intermediary.
• Selling directly from your Dutch business to overseas customers. Or opening a foreign branch for this purpose. Doing everything yourself makes you less dependent on business partners. At the same time, working without partners often involves greater financial risks and requires higher investment.

2.Check the requirements and regulations of the export destination

Your products must comply with the requirements of the export destination. These may differ from those in the EU. Every country has its own laws and regulations. So always check the product requirements in your customer’s country. You can do this using your product’s HS or commodity code. For exports, you should use your product’s commodity code.

Sometimes you need to adapt products for the export market. For example, the information on packaging and the language on labels. Or a technical modification or additional certificate may be required. For instance, there are differences in sockets and plugs all over the world.

Import restrictions abroad

Some countries have import bans on certain products. For example, a country will only allow cars built after a certain date. Or there may be an export ban from the EU in place. International sanctions also restrict exports . For example, Russia's boycott of European agricultural products. 

3. Determine your export price

You calculate your export price differently than your price for Dutch customers. You have extra costs for transport, customs clearance, and the translation of your labels, for example.

Determine the expected costs, profit margin and market price in advance. Wherever possible, work with fixed export prices and agreements. This will help you avoid disputes with foreign partners and customers.

Be aware of import duties for your overseas customers

Your overseas customers usually have to pay levies when importing products into their country, such as import duties. The amount of these levies varies by product and country. High import duties make your product more expensive for your overseas customers.

You can look up import duties here:

• Using the Access2Markets'Trade Assistant, you can find the import duty rates for every product. You will also find other import taxes and the documents you need.
• In the International Trade Centre’s (ITC) Market Access Map, you can find countries not listed in Access2Markets.

4. Find customers and make agreements

Have you chosen a market? Are you familiar with all the rules there? And is your price in line with the competition in that market? Then it is time to start looking for customers. You can find foreign customers and business partners by, for example, visiting or taking part in international trade fairs. Sometimes foreign customers find you – because they want to buy your products.

Draw up a price quotation first

A price quotation ensures that you and your customer know what to expect from one another. You set out clear agreements on matters such as prices, delivery times, transport, and payment methods. In your price quotation, also refer to your general terms and conditions. Or include your general terms and conditions directly in the price quotation.

Are you only fulfilling a single order? Then get your customer to agree to your price quotation. This is not mandatory, but it is sensible. That way, the agreements are finalised.

Record your agreements

Always record your agreements by email. Also confirm any telephone agreements by email. That way, you will have evidence should any problems arise.

Are you working with foreign business partners over a longer period? If so, set out your agreements in a contract. You can do this using:

• A distribution agreement if you are working with distributors.
• An agency agreement setting out your arrangements with commercial agents.

The International Chamber of Commerce (ICC) sells English-language model contracts. Drafting a contract is a tailored process. If in doubt, consult an adviser.

5. Agree on risks and payment

Agree with your customer on the transport of your products. You can use Incoterms® for this. This way, you will know:

• Which party is responsible for arranging transport.
• Who pays the transport costs.
• Who bears the transport risk.

You can cover risks with insurance, for example, for transport or product liability. Insurance is often not mandatory, but it is advisable. Assess the risks you face and whether you already have, or want to take out, insurance to cover them.

Discuss the payment method in advance

Discuss with your customers how and when they will pay. When exporting, the risk of non-payment is greater than when selling within the Netherlands. Communication is different because you speak a different language. And your customer is also further away.

Payment in advance is the least risky option for you as an exporter. A Letter of Credit (L/C) carries the lowest payment risk for both parties. There are also other payment methods. For example, 50% in advance and 50% on delivery.

Discuss with your bank which payment method best suits your situation.

6. Organise transport and customs

The type of product and the size of the order determine the method of transport. Before you dispatch the consignment, you choose how to do so: by road, air, sea, or rail.

International transport involves the movement of larger quantities of goods. This means a carrier often imposes extra  packaging requirements for international transport. This results in extra costs for the exporter.

Arrange the documents you need on time

As well as an invoice and a packing list, these include, for example:

• Transport documents for international transport. Each mode of transport always requires specific documents.
• Export documents. The export documents you need vary depending on the product and country.

Having the correct paperwork with your consignment prevents delays at customs. Are you exporting for the first time? If so, consider hiring a forwarding agent. This logistics service provider will help you identify and apply for the correct documents.

Submit a customs declaration

Before exporting, you must submit an export declaration digitally to the Customs Administration of the Netherlands. You will need an EORI number for this. This mandatory identification number allows customs to identify your business. You can apply for it free of charge from the Customs Administration.

Next comes the import declaration in the country of arrival. Who completes this import declaration depends on the Incoterms® you have chosen. Carriers or forwarding agents can help you with this. They’ll take care of the paperwork for exports from the Netherlands and for imports into the destination country.

7. Deliver and finalise

Your delivery must be accompanied by an invoice. How do you apply the VAT rules for deliveries outside the EU? You must draw up your invoice in a language your customer understands and charge 0% VAT. However, in the event of a tax audit, you must be able to prove that the goods supplied have left the EU. You can do this using your accounts.

Keep your records carefully

Keep your records well organised. This will prevent you from having to pay additional VAT retrospectively in the event of an audit. It also makes it easy to see whether your customers are paying on time.

From the first order to regular exports

Do you want customers to come back to you? And place orders more often? Then build a relationship with your overseas customers. Keep a record of your conversations and appointments. For example, details of the products purchased and the questions asked. 

Is your export business growing? If so, consider whether you need to hire staff with specialist knowledge. For example, knowledge of the export process and other languages.