IMPORT OR EXPORT ACTIVITY

Import or Export Activity

Actual Import or Export Activity

Thesis Statement

“The import and export between the countries have flourished the economy of the Country.”

Analysis of the transaction

Introduction to the process

Foreign trade is the exchange of goods, services and capital between countries. When goods enter a country needs to import occurs, which is defined as "the legal introduction of foreign goods for use or consumption of the country."

Despite the advantages of free trade in goods, it is important to consider some aspects that involve limiting the entry of foreign goods, which is known as protectionist measures represented in import tariffs. The application of these tariffs is pivotal to the economy of a country allow, for example, obtaining fiscal resources and limit imports to protect domestic industry (Chu, 1986).

Guatemala, in its external trade relations, depends mainly on the United States, Mexico, Japan and El Salvador, but no less important is the negotiation that takes place with other countries of the globe.

Any individual or legal person wishing to import or export the goods to Guatemala, you must complete a series of requirements and procedures for the importation of goods, with the Administration of Customs of the Superintendence of Tax Administration (SAT), the main institution directly responsible for controlling imports, which establishes procedures to follow, based on compliance with established tax law and compliance with existing trade treaties. This tool presents and describes the set of procedures carried out in the import process, developed with the aim of:

Publicize rationalized as the actions are applied throughout the import process.

Gearing entrepreneurs in the import procedure to facilitate their knowledge and application.

Provide guidance to link the various public and private sector involved in the import process.

Process of the transaction

Purchase of foreign inputs

On average, goods and services purchased represent between 50 and 60% of the turnover of a company. Good management of the acquisition costs of purchasing and supply can increase competitiveness, as it helps to reduce costs, enhance quality and respond more quickly to market changes and technological improvements (Crane, 1990). To accomplish this, must be addressed as follows:

Carefully evaluate the requirements to be met by importing the products, ie cover the payment on time, complete the appropriate documentation for entering them into the country, transit time of goods and others.

Analyze risk factors and cost of imports.

Examine the international supply markets and take advantage of the best deals.

Define the type of business relationship to be established with its suppliers to meet the objectives of the offer.

Ensure that items purchased are stored efficiently and safely, that the inventory is well done and the items are available at low cost when required.

 

Negotiations between foreign supplier and importers

Before to start an import transaction, it is advisable to obtain market information and product source potential suppliers:

Producing countries

Countries marketers

Prices, variety, quality, etc.

When assessing the potential supplier, it is important to check the existence of trade agreements signed by Guatemala and other countries that provide the ability to leverage incentive tariff for that product.

 

Import Policy

The import policy is the document that legalized the entry ...