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Sooner or later, almost any entrepreneur whose activities are related to production or trade is faced with the need to import goods from abroad. And it's not only products for sale, it can also be production equipment, raw materials and more.
However, in order to properly import goods into Russia without making serious miscalculations, it is necessary to have a good understanding of the issue of foreign economic activity, be familiar with the provisions of the laws governing the import of goods into Russia, and take into account many other equally important factors that can affect the success of the intended event. This article will be entirely devoted to the most important aspects this type of activity.
What characterizes the import of goods to Russia
The import of goods should be understood as a process characterized by the importation into the country of products manufactured outside its borders (in another country) for the purpose of domestic consumption, subsequent sale of the imported goods or its re-import.
A company intending to expand its interests and engage in foreign economic activity always strives to think over the optimal scheme for importing goods to Russia, which will take into account its material benefits and, no less important, time costs.
However, importing goods to Russia is a rather complicated procedure and is very different from similar activities, for example, in the European Union. Despite this, many European and American companies are showing a genuine interest in the issue of importing their goods into Russia and the countries of the Customs Union.
Introduction Russian Federation to the World trade organization had a positive effect on the import of products from foreign countries. In particular, there was a reduction in customs duties on many types of goods, which made the Russian market more attractive to foreign companies. But the procedures for passing customs control themselves remain very confusing.
The procedure for importing imported products into Russia is regulated by the Customs and tax codes RF. All imported goods in without fail are subject to taxes: customs duties are collected, excise duty is collected, VAT (value added tax) and other types of customs duties are levied. The fees are paid by the importer (declarant) or an authorized representative of the importer, whose authority is to represent the interests of the importer at the time the cargo crosses the border and is confirmed by relevant documents.
Import of goods to Russia in 2016 in figures
According to statistics provided by the customs service, imports of goods to Russia in 2015 exceeded imports for the same period in 2016 (through October) by only 1% within 10 months. For 10 months of 2016, goods worth a total of $131.5 billion were imported to Russia. This fact indicates a gradual recovery in the level of imports.
Hopes that the investment pause will soon end are reinforced by the growth in the number of machinery and equipment imported from abroad. This will only be possible if the rapid fall of the ruble can be avoided. However, the risk of depreciation of the Russian currency remains along with the decline in exports, and the rate of this reduction is still measured in double digits. The positive balance of the current account of the balance of payments also continues to decrease. All this can lead to a slowdown in the already low growth rates.
The Ministry of Economic Development gives its forecasts for the growth of the gross external product, while maintaining current trends and based on an estimated oil price of $40 per barrel. According to the ministry, it will be only 0.6%. At the same time, the forecasts of the World Bank are more optimistic - an increase of 1.5% with the expected increase in oil prices to $55.2 per barrel.
According to preliminary information provided by the Federal Customs Service, in October 2016 alone, the volume of products imported from non-CIS countries increased by 8.4% compared to the same period in 2015 and reached $15.6 billion.
The volume of purchases of products of the machine-building industry increased by 16.7%, the volume of purchased goods of the chemical industry increased by 1.4%, textile products and footwear also began to be purchased more actively (1.3%). It is the growth of imports of products of the engineering industry that can be considered a positive indicator of the assessment foreign economic activity, as it is an important part of investment in fixed assets. There has also been an increase in imports mechanical equipment(17.8%) and means of land transport (11.5%).
Along with positive trends in the issue of imports, there are also negative processes that are the result of the Russian food embargo. In the same October 2016, the volume of imported food products.
The most negative import indicators were found in meat products and by-products - 29.5%. Imports of vegetables decreased by 28.3%, tobacco - by 21%. From the general negative statistics on food products, an increase in the volume of imported fish by 40.8% and a number of other food products is knocked out.
Export and import of goods in Russia: ratio and trends
Consider the structure of exports and imports of goods in Russia and determine the main goods of exports and imports of Russia.
Main part Russian export comprises:
energy carriers (oil and oil products, gas, coal);
rolled steel;
ferrous and non-ferrous metals;
mineral.
The leading position in terms of exports in this list belongs to oil and oil products - 300 million tons. Along with oil, Russia is engaged in the export of gas (250 billion cubic meters), timber, mineral fertilizers, machinery and equipment, weapons, meeting the needs of the CIS countries in these goods almost in full, which makes Russia the main trading partner for neighboring countries.
Import to Russia consists of the following items:
machines and equipment;
food;
chemical products;
consumer goods.
The main import flow comes from Germany, Italy, China, Turkey, Poland, Switzerland, Great Britain, USA, Finland.
December 2016 was marked by a decrease in the positive balance to $9.2 billion in the trade relations of the Russian Federation. The Bank of Russia explains this state of affairs by a reduction in the difference between the value of the entire volume of exports and imports, which in turn occurred due to a decrease in prices for raw materials exported by the Russian Federation (such as crude oil, oil products, gas, mineral fertilizers, ferrous and non-ferrous metals) , and a gradual recovery in the volume of imports (machinery, equipment, vehicles, chemical products, etc.).
However, according to the Central Bank, the reduction of the surplus foreign trade was somewhat offset by the fact that the negative balance of other items of the current account was reduced.
Why is the import of food products in Russia so in demand?
A major item in the total volume of imports is food imports of goods in Russia. Statistics confirm these data. Currently, the volume of imports food products in terms of value is about 2 billion dollars a month. September 2016 showed the volume of imports in the amount of $1.9 billion.
According to data provided by Rosstat, the share of imported food products sold in the total volume retail sales food products amounted to 27%. According to the analysis of data for June 2015, of the total volume of imported food products, 82% are imported from far abroad, the remaining 18% are from neighboring countries (CIS).
The Federal Customs Service reports that the volume of imports of food products from distant countries in value terms as of December 2016 amounted to $16.44 billion and increased by 10.4% compared to November 2016.
There was an increase in the volume of the following imported food products: grain crops - by 1.9 times, vegetables - by 33.3%, meat and offal - by 21.6%, fruits and tobacco - by 17.7%, vegetable oil- by 16.8%, dairy products - by 15.9%, fish - by 8.9%. At the same time, the volume of sugar imports decreased by 21.3%, alcoholic and non-alcoholic products by 3.6%.
Compared to the same period in 2015 (December), the volume of imported goods from abroad increased by 10.9%.
What documents do you need to prepare for importing goods to Russia
The rules for importing goods into Russia require the mandatory execution of a number of documents. To import you will need the following.
Constituent documents of the company acquiring the goods (their copies).
The original of a properly executed (according to the "Contract Requirements") contract and two copies of it, which will bear the seal of the company purchasing the goods.
Passport of the import transaction (copies certified by the bank; copies certified by the buyer).
Accompanying documents related to the arrived cargo, and an invoice (invoice), which will indicate the current details of the buyer and seller, the number assigned to the contract, the cost of products, essential conditions delivery (all of the above data must necessarily coincide with similar data specified in the contract).
Translated invoice (invoice) of the cargo, certified by the seal of the company.
Documents confirming the company's license to conduct foreign trade, various certificates and other permits (if required).
Payment order or any other document confirming the payment of customs duties (original).
Information (packing list) on packaging material, product weight, number of pieces per intended consignment should be indicated - for each item of goods.
Other documents specified in the terms of delivery and contract. For example: bill of lading (if transported by sea); TIR, CMR (if road transport); documents confirming cargo insurance; documents confirming the availability of prepayment, etc.
Documents confirming the customs value of products: transportation documents, documents confirming insurance (if specified in the terms of the contract), documents in which transportation costs are indicated, if they were not indicated in the invoice.
The customs service may request the following additional documents:
the customs declaration of the sending country, certified by the seller;
additional contracts concluded with persons related to the transaction;
invoices for payments to third parties in favor of the seller;
accounts related to commission, brokerage services and related to the goods being valued;
payment accounting documents;
export/import licenses;
receipts from product storage warehouses;
documents confirming the order for the delivery of goods;
catalog, specification, price list from the manufacturer;
calculation made by the manufacturer for the goods being valued (provided that the company agrees to provide such a calculation to the buyer from the Russian side);
payment and other documents related to the conduct of similar transactions or the purchase of similar goods;
other documents capable of confirming the value of the goods declared in the customs declaration.
If the goods, after crossing the border, are delivered to their destination within the territory of Russia, then the cost of delivery is deducted from the customs value. However, in order to recalculate, clear documentary evidence is required that the goods were transported through the territory of Russia, and evidence of the legitimacy of such deductions and their amount. These can be contracts for cargo delivery services, which will indicate the cost of delivery and the method of payment, invoices indicating the details of the parties, documents confirming payment for delivery services according to the issued invoice.
Paragraph 1a of Article 19 of the Law "On Customs Tariff" states that the cost of delivery includes the cost of transporting goods, the cost of work related to the unloading and loading of goods, the cost of cargo insurance. Accordingly, when considering the issue of reimbursement of customs value at the expense of the cost of delivering goods through the territory of Russia from the place where it was imported, each component of the delivery cost is considered separately, since the cost of transportation will depend on the distance, loading operations - on the weight of the goods, and insurance - from the cost of the product itself.
Explanatory materials are provided for a specific product: brochures, samples, technical description goods, drawings, etc. Copies of these documents must be certified by the seal of the company acquiring the goods.
What is the scheme for importing goods to Russia
You can import goods into Russia on your own, having thoroughly studied the current legislation. But if there is a big deal to be made and it is necessary to reduce possible risks to zero, it is worth connecting an intermediary to the import procedure. As a rule, this is an organization that narrowly specializes in processing transactions related to the import of goods into Russia.
There are two most common import options.
The first scheme for importing goods to Russia is used for residents of the Russian Federation. It is convenient for companies that need to purchase goods abroad, but at the same time they do not plan to become participants in foreign economic activity. To do this, these organizations resort to the services of an intermediary company, reducing the possible risks associated with the import of goods and avoiding the payment of additional taxes in Russia. Currency transactions (if necessary) are carried out by an intermediary, so the customer may not open his own foreign currency account, for transactions with an intermediary, an existing ruble account will be enough.
Members of the scheme:
a resident (Russian company) planning to purchase goods abroad and, at the same time, wishing to protect itself from the anticipated risks that may arise, for example, in the process of customs clearance of imported goods;
an intermediary (importing company) that undertakes the customs clearance of goods that have arrived on the territory of Russia and sells the imported goods to a resident;
supplier (foreign seller of goods and most likely the sender of the goods).
Benefits of the scheme:
currency control and customs authorities do not check the resident when importing goods into Russia and after they are released for free circulation;
there is no need to take part in each accompanying procedure:
– registration of the organization in customs authorities;
– execution and registration of a foreign trade contract;
– opening a transaction passport in the bank;
– control of storage periods in temporary storage warehouses.
At the same time, the resident has in his hands all the documented reports on the transactions and expenses carried out.
The intermediary assumes all responsibility for violations when declaring the import of goods to Russia, that is, an administrative penalty is applied to him in case of violations of the transaction. The owner is the buyer. However, using the services of a customs broker will not be enough to avoid administrative liability. For false declaration of goods imported into Russia, both the customs broker and the importer of goods will be punished.
No one can guarantee absolute accuracy when declaring goods. It is worth the counterparty to add a gift to the product or exceed the ordered volumes of goods, and you may be held administratively liable for the revealed fact of violation.
This scheme for importing goods into Russia is relevant for companies included in the customs register (duty-free shops, customs carriers, customs warehouses, etc.), because it is unacceptable for them to have administrative violations prescribed in the Code of Administrative Offenses of the Russian Federation.
To implement the scheme, the intermediary and the resident may conclude a commission agreement or a sale and purchase agreement. On behalf of the intermediary, on behalf of the resident, a foreign trade contract is concluded with a supplier for the import of goods and services to Russia. If necessary, an advance payment for the goods is made, this is done by an intermediary. Then the goods are delivered to the address indicated by the intermediary, and then he carries out customs clearance of the goods.
The second import scheme to Russia is used for non-residents (foreign persons). As a rule, it is used in companies that are manufacturers, forwarders, carriers, or in any other foreign companies interested in exporting their products. This option is used when a customer in Russia wants to buy goods and at the same time does not want to import, customs clearance to participate in foreign exchange transactions.
Members of the scheme:
non-resident (foreign organization);
an importing company (consignee) registered in Russia, engaged in customs clearance of cargo in Russia and selling goods manufactured by a foreign company;
a client (buyer) who is registered in the Russian Federation and wants to buy goods in Japan, Sweden, Great Britain, Canada or any other country, but at the same time he does not want to deal with customs clearance of cargo and be under currency control by inspectors.
The customer selects the goods, after which he turns to the intermediary for help in order to import the selected items to Russia. The mediator takes care of all organizational issues:
conclusion of an agreement with the customer, making an advance payment by the customer on the basis of the concluded agreement;
conclusion of a foreign trade agreement with a non-resident;
purchase of goods abroad and import to Russia;
customs clearance of goods;
payment of state duty and VAT;
sale of goods to the customer.
Benefits of the scheme:
The customer relieves himself of all risks, because the advance payment is made by a Russian company, and there are no problems associated with customs clearance of imports of goods to Russia.
What are the features of importing goods from Kazakhstan to Russia
Import of goods to Russia is subject to VAT (subparagraph 4 of paragraph 1 of Article 146 of the Tax Code of the Russian Federation). All importing companies are required to pay VAT on imports, including VAT-exempt companies and individual entrepreneurs operating on a special regime.
Import of goods to Russia is not subject to VAT in certain cases prescribed by law (Article 150 of the Tax Code of the Russian Federation).
The VAT rate for goods imported into Russia is 10% or 18%. The sale of some goods may be subject to domestic VAT at a rate of 18%, in which case the import of goods into Russia is paid at the same rate.
When importing goods into Russia from Armenia, Belarus, Kazakhstan or Kyrgyzstan, companies and individual entrepreneurs transfer VAT not to accounts customs services, and in the IFTS at the place of registration. In addition, a correctly completed declaration must be submitted.
Import VAT amount = tax base x VAT rate,
where the tax base = the customs value of goods imported into the territory of the Russian Federation + the amount of import customs duty+ amount of excise.
According to paragraph 13 of Appendix No. 18 to the Treaty on the Eurasian Economic Union, signed in Astana on May 29, 2014, the tax base is determined on the date of registration of imported goods.
In accordance with the order of the Ministry of Finance of the Russian Federation dated July 7, 2010 No. 69n, the import VAT declaration for the import of goods into Russia from the EAEU countries must be submitted to the Federal Tax Service by the 20th day of the month following the month of import of goods.
If the average number of employees of the company for the year preceding the filing of the declaration exceeded 100 people, the VAT declaration for the import of goods into Russia from the EAEU countries must be submitted to the Federal Tax Service Inspectorate via telecommunication channels in electronic form.
If the average number of employees of the company does not exceed 100 people, the declaration can be submitted on paper.
VAT when importing goods to Russia from the EAEU countries must be paid not late submission of the relevant declaration.
Import VAT calculated in accordance with Article 160 of the Tax Code of the Russian Federation. Paying for the services of a foreign counterparty, the client in certain cases is obliged to pay VAT to the budget as a tax agent. This happens if the territory of the Russian Federation is recognized as the place of sale of the services provided (Article 148 of the Tax Code of the Russian Federation). In this case, the income of the seller of services will be less by the amount of VAT.
VAT on imported services is transferred to BCC 182 1 03 01000 01 1000 110 simultaneously with the transfer of money to a foreign counterparty. In field 101 of the payment order, you must specify "2".
Based on the results of the quarter during which the agency VAT was withheld, it is necessary to report to the IFTS no later than the 25th day of the month following this quarter. Pay attention to the fact that according to the Order of the Federal Tax Service of October 29, 2014 No. ММВ-7-3/ [email protected] in red. Order of the Federal Tax Service of December 20, 2016 No. ММВ-7-3/ [email protected] starting with the reporting for the first quarter of 2017, it is necessary to submit a declaration in a modified form.
When paying domestic VAT, after accepting imported goods for accounting and paying this tax to the budget, payers can deduct imported VAT. In accordance with paragraph 1 of Article 172 of the Tax Code of the Russian Federation, import VAT is deductible in accordance with documents confirming the payment of this tax.
Companies with a special regime and those that are exempt from the obligation of VAT payers include import VAT in the cost of goods and services received.
Why is importing goods from China to Russia so popular?
By 2010, China was finally approved as the leader in world exports. Over the years, the reforms have significantly changed the very structure of exports, where a large share was occupied by cars, manufactured goods and industrial equipment. Importing goods from China to Russia brings a clear benefit - the quality is getting higher, as European and American technologies are copied, and prices are more profitable.
Russian-Chinese trade in 2015 did not develop in the best way - the decrease in trade was 36%. The exchange rate of the ruble collapsed and remained in an unstable position, while the yuan, on the contrary, became more stable. Purchasing power has gone down. Taking into account currency risks, exporters from China have become more cautious when concluding foreign trade contracts.
But, as you know, there is a blessing in disguise - the current economic situation is fueling the interest experienced by Russian and Chinese companies in relation to each other. For Russia, new ways of diversifying foreign economic activity are important, and China perceives the Russian market as one of the main directions of its exports.
Both Russia and China strive to make the movement of goods from country to country as attractive as possible. The transition to settlements in the national currency is being systematically implemented. The first transactions in rubles with Chinese partners were made by Siberian companies in 2015. On October 8, 2015, the People's Bank of China announced the launch of the first phase of the Cross-Border Interbank Payment System (CIPS). This was done in order to introduce a single accounting for cross-border payments in Chinese national currency and reduce currency risks for importers.
Re-export and import of goods from China to Russia is becoming more and more profitable business. The most important thing is to choose the category of goods to import and the destination.
It is high time to debunk the well-known myth about the import of goods from China to Russia, which claims that mostly consumer goods are imported into Russia: toys, clothes and shoes.
Today, the main goods imported from China are electrical machines, various equipment, sound recording and sound reproduction equipment. The next largest imports are such items as nuclear reactors, boilers, mechanical devices and their components. In percentage terms, all of the above goods account for 53% of the total share of Chinese imports.
The volume of imported clothing and accessories, hand and machine knitwear and other textile products is 8% of total imports.
The volume of imports of products from ferrous metals, tools and cutlery made from non-precious metals is 7%.
The volume of imports of children's toys, sports equipment, playground equipment, furniture, bedding, mattresses, lamps and lighting equipment, illuminated signs, illuminated signs is 5% of the total volume of imported goods.
It also imports organic and inorganic chemical compounds, other chemical products, which is 5% of all imported Chinese goods.
Land transport, its parts and accessories, ships, boats and floating structures are imported in the amount of 4% of the total import volume.
Gaiters, shoes and similar articles, hats, umbrellas, etc. - four %.
Plastics, rubber and rubber, as well as products made from them - 4%.
Food products of plant origin - 2%.
The volume of imported optical instruments and apparatus, cinematographic, photographic, control, precision, measuring, medical or surgical equipment is only 2%.
All imported commercial goods China imposes state duty. The amount of duties depends on the cost of the goods, the costs associated with transportation to the border, and the amount of insurance. Not subject to duty promotional items, goods serving as demonstrative samples, defective goods, as well as duty-free goods, the list of which is approved by an international agreement.
In addition to paying customs duties, goods exported from China are subject to VAT. In addition, there is an additional consumption tax on cars, alcohol, tobacco and cosmetics. Different categories of goods differ in the VAT rate. Usually it is 10% for agricultural goods and 17% for industrial goods.
There are goods included in the list of products intended to stimulate exports. When they are exported, a VAT refund is possible. To be able to issue a refund, you must carefully consider the execution of all related documents and avoid mistakes in them. Refunds are made within three to four months.
Regarding the import of goods to Russia from China, there are a number of restrictive measures. So, for example, with regard to the states that are members of the Customs Union, there are national and unified regimes of technical regulation. There is a single list of goods, the import or export of which requires a single, general or exclusive license.
Significantly reduce input VAT when importing goods or equipment to Russia from China, it is possible using the services of an intermediary from Hong Kong. In fact, this is a legal offshore. Russian legislation assumes that obtaining a tax benefit cannot be an end in itself. The Chinese government turns a blind eye to such schemes, as all efforts are aimed at stimulating exports. The laws of the Republic of China and the People's Republic of China (where Hong Kong is located) do not provide for such restrictions.
Important: when conducting transactions related to the import of goods to Russia from China, you need to track the entire path of the document flow from suppliers from China, control the adequacy of the information filled in all documents for export.
The organization of import of goods to Russia requires the study of a large amount of information, which the company often does not have. Therefore, it is worth turning to professionals. Our information and analytical company "VVS" is one of those that stood at the origins of the business of processing and adapting market statistics collected by federal agencies. The company has 19 years of experience in providing commodity market statistics as information for strategic decisions that reveal market demand. Main client categories: exporters, importers, manufacturers, participants in commodity markets and B2B business services.
commercial vehicles and special equipment;
glass industry;
chemical and petrochemical industry;
medical equipment;
production of animal feed;
electrical engineering and others.
Quality in our business is, first of all, the accuracy and completeness of information. When you make a decision based on data that is, to put it mildly, wrong, how much will your loss be worth? When making important strategic decisions, it is necessary to rely only on reliable statistical information. But how can you be sure that this information is correct? It can be checked! And we will give you such an opportunity.
Main competitive advantages of our company are:
Accuracy of data provision. The pre-selection of foreign trade deliveries, which are analyzed in the report, clearly matches the subject of the customer's request. Nothing extra and nothing missed. As a result, at the output we get accurate calculations of market indicators and market shares of participants.
HOW TO CREATE Successful business and enjoy your work? Engage in import - export! This business not only DOES NOT require large investments, but also offers the PRESTIGE of working with clients from ALL CONTINENTS.
You do NOT need special experience in this area, but you must have SKILL in ORGANIZATION. A SUCCESSFUL import-export business requires PERMANENT ATTENTION.
Do you know local MANUFACTURERS, looking for ways TO INCREASE THE MARKET FOR YOUR PRODUCTS? Or are you planning a trip abroad and want to establish BUSINESS CONTACTS?
If you know how to SELL, and are DIPLOMATIC, Import - Export Business is FOR YOU.
When you gain EXPERIENCE in business, many things will become obvious and simple. You must find a person to work with the cargo, called the FORWARDER. You must establish RELATIONSHIPS with SUPPLIERS. After a while you will be on your way to BIG INCOME - with very LOW overheads.
Are you interested in MANAGING YOUR OWN BUSINESS? Do you like business TRIPS ABROAD? The benefits of an import-export business are numerous, but the BIGGEST BENEFITS is the MONEY you earn. COMMISSIONS on sales are SIGNIFICANT amounts. After MULTIPLE operations, the time spent will be REWARDED OVERALL.
HOW THIS BUSINESS WORKS
Of all MANUFACTURERS in RUSSIA, only a SMALL percentage of enterprises distribute goods OUTSIDE of Russia. Goods that find a FOREIGN MARKET form EXPORT. What is produced outside of Russia and imported for sale is IMPORT.
While it seems obvious that ALL manufacturers need a WORLDWIDE MARKET - this is NOT easy to do for a company with limited scope and capability. Here is a job for you.
IMPORT OR EXPORT AGENT - an entrepreneur who seeks demand for supply and supply for demand. DOMESTIC manufacturers of goods are looking for a FOREIGN market, FOREIGN manufacturers need a RUSSIAN market. You must FIND them, make RELATIONSHIPS, and establish BUSINESS RELATIONSHIPS with these companies.
The agent's COMMISSION is approximately TEN percent. Think ten percent of $500,000 or ten percent of a MILLION. Although it may look like a TOO big order - such an amount is VERY REAL, especially when it comes to EQUIPMENT, RAW MATERIALS, or COMPUTERS.
The market is almost UNLIMITED. HUNDREDS OF MANUFACTURERS are in search of the FOREIGN market. SPORTING GOODS, WATCHES, ELECTRONIC GAMES, CLOTHING, TOOLS - all can be easily imported or exported - if there is a consumer DEMAND and if you CAN ORGANIZE THE SUPPLY.
BUSINESS BASICS
You can start your import/export business AT HOME, by PHONE. You need a COMPUTER Business Cards, and AUTO ANSWER. It is also necessary to have FAX, INTERNET, and letterhead. Until you establish PERSONAL connections, your FIRM LETTER will represent you. The FORM should look PROFESSIONAL.
FIRST, business will be SLOW. You have to CAREFULLY PLAN your steps, build CONNECTIONS, and present YOURSELF to OTHER people. Once you make a few SALES and sign a few exclusive CONTRACTS, you will realize that it was worth it.
WE MAKE CONNECTIONS
The most IMPORTANT step in building your business is finding the right LINKS. Perhaps you have relatives abroad. Maybe you have BUSINESS RELATIONSHIPS in a particular country. Or just know WHAT and WHERE will be SOLD?
In foreign consulates located in Russia there are COMMERCIAL ATTASHES (representatives), whose task is to establish CONNECTIONS and open the way for foreign goods to the RUSSIAN MARKET. Consulates can HELP you to find information about their own import-export companies.
RUSSIAN EMBASSY abroad is another SOURCE OF CONTACTS with distributors. They can help you find information about the SOLVINGNESS and REPUTATION of certain companies.
Start small, don't try to conquer the whole world at once. WHERE do you want to sell Russian goods? WHICH countries do you want to import from? Find out EVERYTHING about these countries: WHAT is offered there, and WHAT is in DEMAND.
GET READY FOR A MASSIVE MAIL CAMPAIGN
Master the BEST professional programs EMAIL. The program should be able to cope with MAILING LISTS, send FORMATTE messages. Email- Your MOST IMPORTANT tool.
Send a LETTER INTRODUCING your company to ALL addresses found, and containing a REQUEST for NAMES, NAMES and ADDRESSES of suitable companies and entrepreneurs. Ask to PUBLISH your letter in the monthly NEWSLETTER, or DISTRIBUTE to the appropriate places.
After receiving a new LIST of names and addresses in response, write another letter introducing you AGAIN and requesting information regarding their company. You can use the QUESTIONNAIRE for the survey, and invite to answer.
WHAT goods do they want to IMPORT? WHAT products are currently imported and HOW are they distributed? Does the Company have a specific LOCATION, commercial REPRESENTATIVES, or BRANCHES in other cities? What DETAILS they are willing to share - such as the company's HISTORY, its VALUE, GROWTH plans, etc.
Ask for ALL the information you need to find out WHAT they will BUY and WHAT they can SELL. If the company is a MANUFACTURER, ask for SAMPLES or CATALOG, facts and data about working with OTHER COUNTRIES and DEMAND for a certain product in their country.
ANALYZE THE MARKET
Stay up to date. Read EVERYTHING you can find about WORLD TRADE. Ask for TRADE PUBLICATIONS, international NEWSPAPERS, world news MAGAZINES and FINANCIAL REPORTS. WHO SELLS WHAT and TO WHOM? There are THOUSANDS of small manufacturers waiting for your services - in every city in Russia.
You can get a product for SALE, but you must BEFORE make sure you know WHERE it will find DEMAND and that you CAN set a PRICE that EXPORT will be PROFITABLE. Your QUESTIONNAIRE will tell you what to do next.
Russian market of imported products FLUSHES depending on the exchange rate of the ruble against the dollar. And this is directly reflected in IMPORT PRICES. CAN Russian consumers AFFORD to pay the price of imported goods?
Finding the right MARKET is just as important as learning how to run a business and sell a product. WHAT DO YOU THINK WILL BE SOLD? If you do RESEARCH and think about TRENDS, you will identify HUNDREDS of products for IMPORT and EXPORT.
The import-export business is ACTUALLY LESS than you might think. The field for activity is IMPOSSIBLE!
WHERE TO LOOK FOR HELP
Establish BUSINESS RELATIONSHIPS with the BANK that deals with INTERNATIONAL BUSINESS. Your bank will set CREDIT to international transactions. This is one of the IMPORTANT factors in the import-export business. You need RELIABLE CREDIT and good reputation. Your BANK will provide valuable advice and recommendations on working with Russian and foreign MANUFACTURERS and DISTRIBUTORS.
Read ALL possible sources of EXPORT INFORMATION, special reports and FREIGHT guides. Familiarize yourself with the STOCK MARKET, LAWS, REGULATIONS, and GOVERNMENT DOCUMENTS.
CONTACTS
Continuing your CORRESPONDENCE with foreign companies, establish LINKS with their REPRESENTATIVES. Find a few companies that meet THEIR needs. Which product finds their GREATEST demand?
Consider their DISTRIBUTION methods. You may be able to work directly with a WHOLESALER working for an overseas IMPORTING company. Your COMMISSION WILL BE LESS, but your responsibilities WILL BE SIMPLIFIED as they will take care of DISTRIBUTION THEM. Working with a NETWORK of small companies or sales representatives from a larger conglomerate, you will have to provide CATALOGS and SAMPLES.
MOST HIGH profit, which you will be able to receive, will be from the RAW bought from the ORIGINAL SOURCE, and delivered DIRECTLY to the MANUFACTURER of the goods. But you must be sure of the GUARANTEED quantity of raw materials, and the possibility of a CONTINUOUS supply.
If you are IMPORTING a product, you must find Russian distributors who can handle a LOT of product at a price that is HIGH enough for you to make a SIGNIFICANT profit. One or two retailers is NOT far enough to make a SIGNIFICANT profit. See how BUYERS work and find LINKS in a large network of RETAIL stores - if you are in RETAIL.
RECEIVING GOODS
There are HUNDREDS Russian manufacturers with disabilities who are in SEARCH FOR FOREIGN MARKET. EXPORT of their goods is a good opportunity for your business.
Convince the MANUFACTURER to HIRE YOU as the SOLE EXPORT AGENT. You have LINKS abroad and know the DEMAND for a certain product. You will take care of SALES, DOCUMENTS, MONEY, SHIPPING, CUSTOMS CLEARANCE, and DISTRIBUTION.
The MANUFACTURER sets the PRICES, and you add your share from the TOP. Therefore, you do not cost them ANY RUBLE. The manufacturer only PURCHASES - increase in SALES, expansion of the MARKET, and increased PROFIT. And you get - BUSINESS and COMMISSIONS from the sale of goods. This is the BASIS business connections and MUTUALLY BENEFICIAL contract.
Contact LOCAL MANUFACTURERS first and then move towards EXPANSION. You can make contacts by PHONE, IN PERSON, or by being REPRESENTED by other companies. You can also place ADVERTISING in business publications.
Before compiling LEGAL contract- be sure to check the REPUTATION of the company. What is the AGE of the company? WHERE are their products sold DOMESTIC? What is the SOLVENCY and RELIABILITY of the company and product?
LEGAL AGREEMENT
Once you have agreed to REPRESENT THE MANUFACTURER as an EXPORT AGENT, you must sign a CONTRACT to CONFIRM the agreement. Your ATTORNEY has to draw up this contract YOURSELF - later you use the SAME contract, only indicating the names of OTHER MANUFACTURERS.
The contract is between the MANUFACTURER and YOU as the EXPORT REPRESENTATIVE. You are granted EXCLUSIVE rights to DISTRIBUTE the product to ALL COUNTRIES, except where they are ALREADY distributed.
The manufacturer will pay you a certain COMMISSION assigned to the DISTRIBUTOR - ABOVE the price of the goods. He will also provide you with CATALOGS and SAMPLES.
You, the EXPORT REPRESENTATIVE, in turn promise to do EVERYTHING POSSIBLE to establish CONTACTS and DISTRIBUTE the manufacturer's GOODS in foreign territory.
Then the TERMS OF THE CONTRACT must be stated: how many YEARS the contract will be valid, the terms of the CANCEL of the contract by any party - VOLUNTARY or due to NO SALES for a certain period of time.
SALE
You have established CONTACTS with foreign DISTRIBUTORS who have agreed to BUY THE GOODS. You SIGNED A CONTRACT with a Russian MANUFACTURER who WILL SUPPLY the goods. Now one of the distributors asks for a FIXED PRICE for a CERTAIN QUANTITY of goods.
You go to a manufacturer and demand a PRICE QUOTE for a certain quantity of a product. It must be valid for the DECLARED period of time. The manufacturer may agree to DELIVERY the goods to the SHIP, and take care of the INSURANCE up to this point, or YOU will have to take care of the delivery from the manufacturer.
You add COMMISSION to the PRICE of the item. You then add ALL ADDITIONAL COSTS to ship the item from the factory to the DISTRIBUTOR'S WAREHOUSE.
If you have established an appropriate agreement with a FOREIGN import - export company, THEIR REPRESENTATIVES will accept the shipment, and will pay you the GOODS PRICE and your COMMISSIONS. This is the simplest, but your COMMISSIONS will be significantly LOWER.
If you are selling to a company that WILL WHOLESALE or RETAIL the product on YOUR OWN terms, you must take care of TRANSPORTATION.
TERMS OF SHIPPING
You will get acquainted with the TERMS OF SHIPPING in the course of work. Your OBLIGATIONS depend on the TERMS of the agreement and on ORDERS. Speak to the FREIGHT AGENT and clarify your OBLIGATIONS.
A SHIPMENT RECEIPT is a RECEIPT for a shipped item. It is signed by the SHIP AGENT and ASSURES THE BUYER that the goods have been UNLOADED in the SAME condition in which they were ACCEPTED. You must deliver this document to your BANK in order to issue a LETTER OF CREDIT.
FOB means FREE ON BOARD. The SELLER delivers the goods to a specific PURPOSE WITHOUT additional charges. Seller INSURES and IS RESPONSIBLE up to THIS paragraph. THE BUYER is responsible and assumes the COST - THEREFORE. For example, FOB VLADIVOSTOK means that the SELLER'S QUOTATION includes FULL RESPONSIBILITY and delivery to VLADIVOSTOK.
SF stands for COST and FREIGHT. The seller pays the freight charges. The buyer insures the goods and accepts full responsibility AFTER the destination.
CIF stands for COST, INSURANCE and FREIGHT. The seller is responsible for the CONDITION of the item, and pays INSURANCE and FREIGHT charges up to a CERTAIN point. AFTER this, the Buyer is responsible.
CARGO FORWARDER
CARGO FORWARDER - a person who takes care of the DELIVERY PROCESS of the goods. He quotes FREIGHT RATES, provides ROUTE INFORMATION, and purchases SPACE for CARGO.
FORWARDERS prepare DOCUMENTATION, INSURE delivery, specify the CARGO ROUTE with the LOWEST customs costs, and provide STORAGE. They are VERY IMPORTANT to you as an export agent.
You need the help of a freight forwarder when you make a TOTAL QUOTATION for a DISTRIBUTOR, in which you not only include the MANUFACTURER PRICE and your COMMISSION, but also the ROAD TRANSPORTATION, FORWARDER'S WORK, FREIGHT costs, INSURANCE, PACKAGING costs, and other costs.
When preparing a quote - Be ESPECIALLY careful. It's unworthy of a professional to go back to a distributor with a higher quotation, including costs that you FORGOT. Review the quote TOGETHER with the FORWARDER and make sure NOTHING IS MISSED.
The quote consists of THREE main CATEGORIES: THE VALUE OF THE GOODS (including your commissions), FREIGHT charges from point to point, and INSURANCE charges.
There must be a FORMAL LETTER accompanying the price quotation. As soon as you receive the ORDER and L/C, inform the distributor about the DATE OF SHIPMENT. Send the letter and quote by registered mail.
L/C
L/C REMOVES financial RISK- Yours, manufacturer, and distributor. When the distributor CONFIRMS THE ORDER, HIS bank sends a letter of credit to YOUR bank.
The letter of credit CONFIRMS that the distributor has FUNDS sufficient to cover the AMOUNT that you have QUITED (stated). The letter of credit GUARANTEES that the order will NOT be abruptly cancelled. When the letter of credit is CONFIRMED BY YOUR bank, the distributor can be SURE of DELIVERY. When the bank confirms the L/C, the CURRENCY EXCHANGE is confirmed and you DO NOT have to worry about the fluctuation of the exchange rate.
The bank HOLDS the money until ALL shipping DOCUMENTS have arrived. The LETTER OF CREDIT stipulates the TERMS and CONDITIONS of delivery, and serves as PROOF OF PERFORMANCE OF THE CONTRACT. Your FORWARDER will help you get all the documents. When you hand them over to the banker, the L/C turns into LIQUID ASSETS that pay the MANUFACTURER'S INVOICE and other bills associated with the transaction.
NEVER work on a promise. Otherwise, you are NOT ONLY taking on a huge risk, but you are also putting EVERYONE you work with at risk. L/C - The only way GUARANTEE ALL PAYMENTS.
SUPPLY OF GOODS
There are MANY combinations used to DELIVERY the ordered item. BEFORE specifying the QUOTE of the goods, you should have considered the ENTIRE WAY of the goods. Check again.
Do you have a CONFIRMED ORDER signed by authorized DISTRIBUTOR REPRESENTATIVES? HAS YOUR BANK APPROVED THE LETTER OF CREDIT OF THE COMPANY?
Compare the LETTER OF CREDIT AMOUNT with the GOODS PRICE (quotation). Make sure they are EXACTLY equal.
CONFIRM the quotation and sale with the MANUFACTURER, the FREIGHT FORWARDER, and the INSURANCE agents. Then act.
In order to guarantee the QUALITY of the goods, some manufacturers prefer to INDEPENDENTLY take care of DELIVERY to the docks, which SIMPLIFIES your task. If YOU care about LAND shipping - make sure that the goods have ARRIVED at the destination and ACCEPTED.
Find out the DATE OF LOADING the goods onto the VESSEL. The manufacturer must take care of TIMELY loading in order to avoid high FEES for the use of the dock.
Since ALL details of the sale must be EXACTLY met in order to fulfill the terms of the L/C, you need SIGNED documents. At ALL stages of the shipment to its destination, your forwarder must CERTIFY THE WAYBILLS.
Once you have received all the documents, submit them to your BANK. If all conditions are met, FUNDS will be available. Since your COMMISSIONS are part of the QUOTED PRICE of the goods, you will receive your money FROM THE MANUFACTURER. When everything is done, you will take your money and get a PROFIT - simply for USING your LINKS.
IMPORT
Look at things at home. Made in Germany, made in Japan, made in Korea. Clothes from India, boots from Brazil, wallet from Italy. The car may be from Japan. TV may be made somewhere else. The import market is HUGE.
What to take on? Maybe you know distributors who are looking for certain products? Maybe you already have contacts in the countries that produce these goods? Contact the manufacturer and arrange for yourself an EXCLUSIVE DISTRIBUTOR AGREEMENT.
IMPORT requires the same as EXPORT. You need a CONTRACT signed with the manufacturer that you are its EXCLUSIVE DISTRIBUTOR in Russia.
You must obtain the manufacturer's QUANTITY - for the QUANTITY required by YOUR distributor. These quotes must be converted into the corresponding RUBLE data representing the exchange rate.
Check the REPUTATION of the manufacturer and the RELIABILITY of the product. If you are importing something like electronic components, check the MARKET for the AVAILABILITY of such a product. The manufacturer must GUARANTEE the quality of the goods.
Your COMMISSION will come from the FOREIGN MANUFACTURER. Require your bank to investigate the SOLVENCY and REPUTATION of this company. Since the company is located in a FOREIGN territory, there may be great COMPLICATIONS with legal ACTIONS, even in the light of INTERNATIONAL LAWS.
Prepare a QUOTE. The simplest thing is to request the TERMS OF DELIVERY to the border PORT of this country. Your FORWARDER will help move the goods from the port THROUGH BORDER and through inland CUSTOMS.
Specify the details of the SHIPMENT. Be sure to check the INSURANCE FEES, DOCK fees, STORAGE and LAND MOVEMENT prices. Don't miss anything! Your QUOTATION for a Russian distributor must be TOTALLY ACCURATE.
Write down the quotation BY POINTS, and give it to the distributor. AFTER receiving the ORDER - check the PRICES, and deal with DELIVERY.
The LETTER OF CREDIT will go from the RUSSIAN distributor to the MANUFACTURER's bank. All terms and conditions regarding PRICES, FREIGHT, and INSURANCE will be specified in the letter of credit. The representative of the MANUFACTURER will confirm the RECEIPT of the LETTER OF CREDIT, and the goods will be ready for SHIPMENT.
Your FORWARDER must FOLLOW the SHIPMENT of the goods. The goods must be moved from the factory to the docks. Transportation needs to be arranged. Then - CUSTOMS and UNLOADING in the Russian port. Then - delivery by LAND to the DESTINATION.
The item has reached its destination. The documents must be registered and SUBMITTED to the BANK holding the L/C. Then all agents and other participants are paid a commission, and you collect your COMMISSIONS.
PROMOTION
After making several commercial transactions, you must ADVERTISE your import Export business, and gain possibly MORE CUSTOMERS. The first deals will give experience and connections - in Russia and abroad.
To gain more useful connections and expand your territory, join COMMERCIAL ORGANIZATIONS and FOREIGN TRADE ASSOCIATIONS. Advertise your services in the media. Manufacturers do NOT know how to build relationships with foreign distributors. Show them your testimonies, and make a contract. A little EXPERIENCE - and you can sell ANYTHING and ANYWHERE.
BUSINESS EXPANSION
THE PROFIT of the import-export business lies in the QUANTITY OF GOODS SOLD. The HIGHER the cost of the goods, the HIGHER the profit from your commission percentage. The more SIMULTANEOUS sales you make, the HIGHER your PROFIT will be.
CONTINUELY email your business to a MAILING LIST made up of people you've worked with before. Gradually BIG companies learn about your reputation. Meet MANUFACTURERS and DISTRIBUTORS in ALL countries. STRENGTHEN YOUR LINKS.
FURTHER WORK
The business of import - export is a HIGH PROFIT enterprise. Because of the LOW OVERHEADS, almost ALL commissions are YOURS. But creation PROFITABLE business demands PASSION and GOOD KNOWLEDGE of the business.
You need multiple LINKS - people who know you, respect you, and can RECOMMEND your work. You need good AGENTS - in Russia and abroad, who will help you to DELIVERY the goods. You need a good BUSINESS RELATIONSHIP with YOUR BANK and possibly with OTHER BANKS where the L/Cs go. If at this stage you need legal advice - contact a PROFESSIONAL.
There is a stereotype in Russia that China is only a supplier. China is an importer. Now Russian business just starting to think about exporting to China. Maxim Dorofeev, head of the Domax company, talks about the new challenges of the time. He is engaged in export support Russian companies to the countries of the Customs Union and the CIS for more than 7 years, the main specialization of the company is VAT refund.
Imports to Russia have practically stopped. Against this background, a very good situation is emerging for exporters (given the growth of the dollar and the euro). Our products are becoming more competitive.
Why is it more profitable to sell goods for export than in Russia? Thanks to the VAT refund of 18%, the profitability of the export business is higher.
A typical mistake of an exporter is the preliminary deduction of VAT from the final cost of the goods sold. If you set the price immediately after minus VAT, the product is often sold below its cost. Tax audit and refund take six months. Thus, your company's foreign trade balance will be negative.
How do you explore foreign markets for customer companies (small and medium businesses)?
To find out which Russian goods will be in demand in China and offer analysis as a finished product (service) to the client, it is necessary to be in China - this is an axiom. It is impossible to find out something while in the Russian Federation, it is practically unrealistic: either the picture will be distorted, or the price of the error is high.
Much depends on the specifics of the product: if these are b2b products, then the easiest option is direct sales. Combining a telephone survey with a sales attempt potential buyers in China. A temporary call center is organized, which is assigned a specific task. Based on the results of the call, a data sample is formed according to certain parameters. It can be considered representative.
If the goods are b2c, then there is either a search for a representative in China, or promotion via the Internet. Although there are a number of cultural and legal restrictions for China.
The simplest and least expensive way is to use Baidu for a rough estimate of demand, "shooting" to the market.
After that, you either look for a partner to represent your interests in China, or open your own local office. It is worth starting with small towns - even if the experience is negative, the losses for the business will be relatively small.
Whether there is a successful cases Russian companies that have already entered the Chinese market?
There is a stereotype in Russia that China is only a supplier. China is an importer. Now Russian business is just beginning to think about exporting to China. Sounds like crazy. But gradually you will get used to this idea. Trading in yuan is, whatever one may say, a peg to the dollar (all recalculations go through it).
Russian goods are potentially becoming more interesting to China.
But to say that there are already many companies that have succeeded is impossible.I can give an example of "Sportmaster". They are investing about 200 million dollars for development retail network and promotion own brand in China.
The Chinese are now much richer than even 5-10 years ago: the standard of living has risen, domestic consumption is being stimulated at the state level. The goal is to develop our own economy, where the share of consumption of goods and services will be close to the indicators of the developed economies of the world.
In China, it is now fashionable to buy expensive branded goods. Therefore, it is pointless to bring just a product to the market: the Chinese will simply copy it, as they have been used to doing for a good quarter of a century. Bringing a branded product to the market, adapting it to the local mentality, is more difficult, but ultimately more profitable. Now in China, the saturation of the domestic market with European brands has just begun. Due to this, goods from abroad are shrouded in a halo of prestige, even luxury. Therefore, supplying only raw materials is no longer profitable. In addition, judging by world energy prices, this is a vulnerable spot for the Russian economy as a whole.
There is a great demand for quality food in China. A large number of people, everyone wants to eat every day. To feed 1.5 billion people, various tricks are used, the achievements of modern chemical industry, genetic engineering. More than a year ago, the world media reported that Chinese chemists had created an artificial chicken egg in the laboratory. But what are the consequences of the consumption of such products, scientists, of course, preferred to remain silent. Moreover, it is known that it is already possible to create even artificial fat! It is clear that the quality of Chinese food, in general, leaves much to be desired.
High export potential for Russian products grown on the ground, in favorable environmental conditions.
What is your forecast for development scenarios economic situation in the country for 2015?
Fear is not the best assistant in business. In conditions of economic instability, the price of a mistake increases. However, those who are afraid of making a mistake and do nothing will lose. Production of competitive goods, bringing them to a foreign market, promotion - any actions involve mistakes, but experience will give your company an impetus for development: increase market share, turnover, grow qualitatively. This strategy is much closer to me!
Taking this opportunity, I want to congratulate the clients of our company, participants in the foreign economic activity of the countries of the Customs Union, all Russian exporters, existing and potential, on the coming New Year. Despite the fact that we have entered a difficult period for business and life, I wish everyone to look to the future with optimism, continue to work, compete and achieve their goals. Let your efforts, perseverance and determination turn into new contacts, new clients and confidence in the future. Good luck and prosperity in the coming year!
Petersburg small business is actively exporting its goods, despite the fact that in the stereotypical view, the exporter is a large holding company with a huge assortment and offices in different countries. For example, Irina Baranova, the founder and designer of the Milamira wedding dress brand, receives 60% of her earnings from retail sales abroad. The manufacturer of rafts TimeTrial supplies them to Europe, while having an annual revenue of about 15 million rubles. And the owner of the Shulz brand, Alexander Ivanov, sells bicycles all over the world, from France to Singapore. The turnover of his company is about 30 million rubles.
Everyone has different ways of promotion, most often these are international social networks like Instagram, personal professional connections, cooperation with big brands. The reasons for success also differ: for the USA and Europe, this may be a low exchange rate of the ruble, for the CIS countries - more low competition. For any country, the quality and uniqueness of products will work. But of course, it is always more difficult for small businesses to export: in order to make a profit, they need resources and investments, and small companies often do not have enough of them. Experts told DP how to cope with minimal costs.
Why do small businesses need to export?
Expansion to other countries not only expands demand, but also makes the audience more diverse. It is insurance in case of a crisis or a change in fashion, and it is an opportunity to find buyers for a unique product. For example, in Russia, despite the population of 140 million people, there may not be enough people who want to buy, for example, collectible dolls or expensive equipment for a fashionable sport. By the way, according to business reviews, the low solvency of people in Russia is a very common reason for small firms to go abroad. Vladislav Varshavsky, Managing Partner law firm Varshavsky & Partners adds that small businesses are interested in exports not only as a way to expand the sales market. "This is also an opportunity to reduce the tax burden on business," he explains. "When exporting goods to another country, a small entrepreneur is refunded the full amount of VAT. And St. Petersburg has an advantage: proximity to the European market, which leads to lower transport costs."
How to choose a name?
The name of the brand for export from St. Petersburg entrepreneurs is most often the same as inside the country: TimeTrial, Shulz and others. But if the brand is written in Cyrillic and consists of Russian words, the most important thing is to check with the help of native speakers what this word looks like, whether it sounds good for local residents. For example, "Milamira" did not change the name, but simply wrote it down in Latin: Milamira Bridal.
"Before exporting, you need to register your trademark on the territory of the selected country, for this it must be registered in Russia, - adds Alexey Fedoryaka, Head of the Industrial Property Department of the Patent and Law Office "Gardium". - This is necessary at least in order not to collide with overseas market with another player whose trademark is confusingly similar to yours. Moreover, confusing similarity is an association of trademarks with each other, it can be present even if there are individual differences. "He adds that the examination that the state conducts when applying for registration guarantees that there will be no such marks in the selected country. But if they are found after the fact - this threatens the manufacturer with a ban on the sale of goods, its withdrawal and payment of a fine.
What needs to be done before exporting?
Vitaly Litvinenko, head of the export department of the Promet company, believes that before entering the foreign market, maximum efforts should be made to sell it on the domestic market. “When the company understands that the product is interesting and competitive, exports will be more successful. Therefore, it is very important to solve product quality problems at the “before” stage, foreign buyers are much more demanding, in Europe, for example, there are stricter quality standards than with us," he argues. "Without the appropriate certification, you just can't get there. It's worth going for export if you produce a really high-quality product, production capacities can satisfy market demand and you already have enough strength to make yourself known in the world."
He advises to communicate as much as possible, go to exhibitions and show your product. “This should not be a one-time event, but continuous work. It is necessary to constantly remind yourself, talk, accustom the buyer, see competitors, constantly look for new ideas and what can be improved in your product,” continues Litvinenko. in Moscow, the main feature of exports is high costs, which are due to high salaries of employees, respectively, it is more expensive to produce goods than in other regions of Russia.On the other hand, the proximity of the Finnish border may play a role - more opportunity communicate with Europeans, understand their style of doing business. We ourselves started exporting from the countries of the former USSR. At that time, these markets were more understandable for us - a similar mentality and business methods, as well as easier logistics due to common borders. And I advise everyone to start with the countries that are members of the Customs Union."
What difficulties can be expected?
Ekaterina Dyachenko, founder of B2B-Export, an online platform for exporting goods from Russian manufacturers, says that the main difficulties Russian entrepreneurs when trying to enter foreign markets are associated with poor knowledge of languages and lack of international marketing skills. "Win the world markets without professional approach difficult for sales. Packaging, Promotion, Professional offer, reasonable and competitive price, high-quality presentation materials on foreign languages understanding the needs of the client, knowing your competitors, understanding the global standards of interaction are part of the entrepreneur's arsenal," she adds. All this does not necessarily require huge financial costs, but it does require time and preparation.
Vitaly Litvinenko adds that Russia is seen in foreign markets as a supplier of resources. “But few people know that complex technological goods are actively produced in our country,” he complains. “Therefore, when exporting a company, a company often has to prove a lot, gain trust, build long-term relationships. But these efforts make no sense if the project is short-term and "It's a fast paced business. Exporting is a long and expensive process. It pays off in the long run, you just have to set yourself up for the long haul." Many entrepreneurs say that Russian firms are really not trusted in the IT sector and complex industries. In other areas, bias is less common. Some domestic technology firms register offices, for example, in the Baltic States and hide their origin. But this is not the only way: there are also many examples of manufacturers who openly call themselves Russian.
How to choose a country?
"Original goods will be in demand in emerging markets: Russian goods are of high quality and competitive in price," Ekaterina Dyachenko is sure. favorable conditions foreign small and medium-sized businesses to enter their markets. In developing markets, there is no production of final products in many categories, these may not be very noticeable, but very significant goods in terms of volume. "There are many examples: a St. Petersburg company" "supplies crushers to African countries, LLC" "works in Nairobi.
Consumer goods manufacturers, on the other hand, are moving to Europe and the US. Russian designer dresses, shoes and sports equipment are often cheaper than local ones, but better than Chinese ones.
How to make your way to other countries easier?
"One of the ways to get new market- find a partner, - says Ekaterina Dyachenko. - But the selection of a reliable partner can be an expensive pleasure: trips, networking, negotiations, product improvements require investments. This tactic can work in rich markets, where it is easier to sell than in poor markets. Tenders, participation in exhibitions and opening of representative offices are also effective and working tools. But without support in the format e-commerce they are no longer enough."
Online shopping is indeed one of the first and most common steps taken by St. Petersburg exporters. They organize the promotion, delivery and acceptance of payments from other countries, and often this is quite enough for work abroad.
How to save?
Irina Baeva, Managing Director of Regus in Russia, recalls that in many countries without a physical presence it is impossible to get a bank account and register a company, you have to rent an office for this. "It's a problem for small businesses, but now there are virtual offices," she says. "This service includes postal and legal address in the right city, local phone number. The call is forwarded to another number or answered by the secretary. And after the new market is probed, the next logical step is to open your own permanent office with a staff. At the same time, we recommend that you first rent a furnished office for a short-term lease, with the ability to quickly increase the premises or transfer them to another location."
Entrepreneurs are also advised to create company pages on international social networks and post photos with hashtags. Even if you don't hire a professional marketer, this is a free and easy way to find potential clients.
When is it not necessary to enter the markets of other countries?
"There is no point in exporting when there is not enough production capacity and you can barely keep up with the demand for domestic market", - notes Vitaly Litvinenko. The owner of the confectionery "" adds that not all goods are suitable for this. "In general, for small businesses in any country, export is useful and meaningful, look how many Chinese small companies sell their goods with us she argues. - But, for example, our cakes are not a product that can be exported. If only in a freeze, but in this case, the costs and reaching the required production volume will turn us not into a small business, but quite a medium one. So it makes sense if the products do not spoil, if they are innovative and there is no such thing abroad, or if their cost is lower than that of the same abroad."
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