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IMPORT AND EXPORT - Coggle Diagram
IMPORT AND EXPORT
UNIT 1: EXPORT INCENTIVES
INFORMATION NEED
CREATION OF THE TECHNICAL COMMISSION OF INCENTIVES FOR EXPORTS
INTEGRATED BY:
The Ministry of Planning and Economic Policy or the official that he designates.
A member of the Legislation Commission appointed by the Executive Branch
El Ministerio de Hacienda y Tesoro o funcionario que él designe.
A representative of the Industrial Union of Panama chosen by the Executive Body
An official from the Ministry of Commerce and Industries who will preside.
FUNCTIONS
To rule on the content of national added value of each exportable product for the purpose of setting the amount of the Tax Credit Certificate in accordance with the regulations of the Executive Branch.
Advise the National Government on any measure to be taken in relation to tax incentives for exports.
Recommend to the Executive Branch the mechanisms or instruments it deems necessary to promote exports of non-traditional products.
STEPS TO FOLLOW FOR THE EXPORT TO BE GIVEN.
Get accurate information.
How can you get your goods delivered?
What price and conditions should you sell?
Where can a customer be found?
What should be the precautions you must take into account for the operation to be successful?
Available resources
Qualified personnel from the institutions and entities and officials of the Ministry of Commerce and Customs can also effectively advise companies that are starting up in the foreign market.
Chambers of Commerce, Banks and Customs agents are usually able to report on extremes and are usually in a position to put, within the reach of companies, bibliographies and reference books in which they can know what export is and what they are international markets.
Main data that make up the export merchandise.
International price level of the product to be exported.
Export incentives that are added on behalf of the Public Treasury or preferential interest on the credits, obtaining a return on foreign sales.
Data that once known, will allow us to begin to seriously consider what is usually called "the conquita of foreign markets!".
Process required for export organization
Search for suitable potential clients.
Compliance with the procedures to be followed to carry out the export.
Materialization of shipments.
Collection of the export made.
Observations
Organizing the export does not mean ensuring the sale of such quantities as it is not, rather, looking for what is called "appropriate customer", capable of absorbing increasing quantities of products depending on the availability of consumption or marketing quantities, and with financial solvency proportionate to the potential possibilities that the product being exported may have; not only in the short term but in the medium and long term.
Do not allow yourself to be imposed "exclusive contracts" or hasty.
Do not let yourself be bought and take actions to organize yourself well before starting the export process.
Getting organized requires effort and usually comes at a cost and can only be profitable from a medium and long-term perspective.
Getting organized does not mean being burdened with specialized personnel who know languages or perfectly know export techniques, as this is a second step that should only be undertaken when the export volume reaches sufficient levels to make the comparison of costs and benefits positive. selling abroad reprimands the company.
THE MATERIALIZATION OF SHIPMENTS CHARGED
OBSERVATIONS:
The exporting company must choose the medium that best suits its product and its packaging.
Proper packaging is obviously necessary and it must be a professional packer who prepares the merchandise so that it does not suffer during transport or while it is in a warehouse or warehouse in the countries of export, import or transit.
Shipments must materialize in the proper way and at the right time because if this is not the case, the precise conditions will not be met for the bank to pay the exporter the amount agreed with the importer.
PRICE FIXING
Documents required to export agricultural products:
Commercial invoices, Certificate of origin, Phytosanitary Certificate.
For seafood: Commercial Invoice, Export Declaration, Certificate of Origin, Plant Certification, ZooSanitary Certificate.
Requirements and necessary information:
That export products have a minimum national content of 0% in the Cost of Manufacturing and production and 20% of the National Added Value.
That the Company has been operating in the country for at least one year.
The interested party must collect a form or request from the IPCE and fill it out with the Production Costs of the exported product. Said form must be countersigned by a Certified Public Accountant (CPA)
Exports of Services
Selling services is more personal than selling products because they very often require direct contact with the customer.
Services are much more difficult to standardize than products.
CAT CHARACTERISTICS
They are nominative and transferable, their value is in national currency, they become effective 9 months after their issuance, they do not accrue interest, they are exempt from taxes, they are negotiable in the stock market.
Direct taxes that are paid with CAT: Income Tax, Import Tax, Complementary Tax and Transfer Tax of Movable Property (ITBM)
For the exporter, 3 financial aspects are important:
Cost calculations - price
How to react to changes in prices.
List at market price
THE SEARCH FOR POTENTIAL CUSTOMERS
The companies that intend to export are the ones that must move, look for potential clients and try to convince them with the arguments that every buyer seeks in the product they acquire; quality, price, novelty or opportunity, delivery conditions and deadlines. etc.
To project towards countries that offer few risks and that are relatively close and well connected for the transport of goods.
Concentrating efforts in a developed good paying country is usually better than complicating your life looking for clients in distant markets or that have restrictive foreign trade regulations based on reduced economic development or a chronic deficit in their transactions abroad.
Try to export to the best markets which are the member countries of the Organization for Economic Cooperation and Development (OECD).
Another way of searching is usually the Trade Shows and Monographic and specialized Shows that constitute authentic forums for the contact of buyers and sellers of a sector.
Exporter organizations usually have information on opportunities abroad collected by members who have participated in trade fairs or missions abroad organized by the organization.
STEPS TO EXPORT
Send you a "proform" invoice with the price you will be charged for the merchandise.
Import license if required.
Opening of credit in favor of the exporter.
Certificate of origin of the merchandise.
Hire the services of a good customs agent to carry out all the necessary export procedures.