What is import and export? Types and importance

Although they are different terms in terms of the action referred to by each of them, they have great relevance in terms of the commercial and technological development of the countries, which is why they must be applied regardless of their economic level, always considering the impact that these may cause.

Import and export are simply based on the shipment or receipt of merchandise, which may not exist in the recipient countries, generating a greater index of competitiveness or commercial innovation, or simply the improvement in terms of economic relations. , as is the case with export.

To know what is the importance of these, you must first know what they are, how they work and what their characteristics are.

What is Import?

This is defined as the transport of any product or service within a country to sell them legally throughout the territory of the state that acquires them.

Importing diversifies the amount of products that exist within a country, since it is possible to obtain articles that are not manufactured regularly in that region, giving an incentive to local companies to use imported models, thus generating greater competition within the commercial and industrial zone of the same.

Types of imports and their characteristics

Ordinary import

It is the simplest of all, it refers to obtaining foreign products in order to be marketed within a country, going through the customs process in a legitimate way

Some of the factors that characterize it are that the merchandise remains indefinitely or until it completes its commercial cycle in the territory, and is freely available.

Duty free import

It is an import by means of a treaty or agreement, in which customs restrictions may or may not be present.

Its most relevant characteristics are that, like the others, it has merchandise of foreign origin, they are carried out through agreements, they enjoy restriction of some guidelines in the ports, and the merchandise may be restricted.  

Reimport for liabilities

It is when the goods that may have technical or presentation failures are returned, which are reimbursed to the companies that sent them, generating more expenses for tariff applications when they are sent again.

It is characterized by being merchandise with free disposal, by re-entering the territory from which it came, by being previous exports, and by having attributes added by forwarding of the same

What is export?

This happens when a country is interested in marketing the products originated and manufactured in it, to other regions interested in buying them, which produces an exponential economic benefit due to obtaining new foreign exchange.

This generates a large amount of income to the countries that practice them, as long as they have commercial agreements that facilitate the shipment of the goods or services that they want to provide, or sell.

Export types and their characteristics

It can be classified depending on the time in which the merchandise is in a place and its trajectory, the types of export are:

Direct

It is when there are no intermediaries, so the business owners direct the entire operation without the need to hire third parties to help with the procedure, this type is recommended for companies with more experience in the area because they require a great capacity for knowledge on the subject to carry them out.

It is characterized by being a purely company process that wants to export, has a more controllable handling of the merchandise, because it passes through the hands of trusted personnel, external expenses are not generated with third-party equipment that does the process.

Hint

When a company is starting with the alternative of exporting its products or services, they do not have experience in the area, so they decide to hire third parties specialized in the field.

Its main characteristics could be that the merchandise travels safely in the hands of professionals in the field, the packages are tracked by the security system of the exporting companies, the packages can be insured, so if a box of merchandise gets lost, the responsible company would take care of the situation freeing the contractor from worries.

Temporary

At the time of sending merchandise which the customs of the receiving country does not give the permits to stay in the territory of the same, it is considered as a temporary stay, since eventually the product will have to return to its place of origin.

It is characterized more than anything by being exports of services, which when completed, its permanence in the place to which it was exported would simply not have much relevance, as well as the sending of materials or machinery for repair, which would be the inverse of the first.

Indefinite

At the time of being checked by customs and accepting it in a totally legal way, the merchandise remains within the territory of the same, with the aim of being consumed in the place.

They are consumable goods such as food, electronic devices, cars, clothing and footwear, among others.

Importance of import and export

Both activities are extremely necessary for the optimal development of a country, either to achieve a better economic balance, or as a source of employment and economic diversity.

• It generates competitiveness among the world's companies, due to the fact that the goods become international in nature.
• They are an excellent source of employment for people living within a state that carries out import and export.
• Create commercial agreements between several states, unifying them on several occasions.
• It encourages the creation of new companies dedicated to these areas, as well as specialized markets in international marketing areas.
• Products made with materials that are not in the receiving areas arrive.
• They help the entry of new technologies and at the same time their spread.

And there are still many factors that make this economic activity important for the development of countries economically, socially, and in some cases even politically.

It should be noted that there is a trade balance, which is governed by the regulations that the economic income of a country will be at a good level, as long as there is more export than import, this is because exports generate income, while Imports are expenses for the purchase of merchandise that is made.

As long as a region is producing what is necessary for its population and apart from having the possibility of selling its producers in order to obtain foreign exchange, the better it will be economically speaking.