Understanding the Dynamics of Import-Export: A Comprehensive Guide

Md. Joynal Abdin

Founder & CEO, Trade & Investment Bangladesh (T&IB)

Executive Director, Online Training Academy (OTA)

Secretary General, Brazil Bangladesh Chamber of Commerce & Industry (BBCCI)

 

In the interconnected world of commerce, import and export are vital engines of economic activity. Whether you’re planning to start your own trading business or trying to understand the benefits of international trade, this article explains the key aspects of the import-export process while answering 10 important questions in depth.

 

1. How to Set Up an Import-Export Business

Setting up an import-export business requires both legal and operational groundwork.

• Market Research: You must first identify which products are in demand in specific markets and analyze competitors, pricing trends, and buyer behavior. This ensures your business idea is viable and competitive.

 

• Business Registration: Legally establishing your company by registering with the government allows you to open bank accounts, sign contracts, and operate lawfully.

 

• Import-Export Certificate (ERC or IRC): Most countries, like India or Bangladesh, require an ERC or IRC from Controller of Export –Import. Commonly known as Export or Import license to import or export products across borders.

 

• Customs and Compliance: You need to understand documentation, tariffs, and laws like prohibited goods lists. Mistakes here can result in fines or shipment delays.

 

• Logistics and Supply Chain: It’s crucial to set up reliable transport methods and warehouse facilities. Partnering with freight forwarders and shipping lines ensures smooth global movement of goods.

 

• Payments and Currency Exchange: Since international transactions involve foreign currencies, you should know how to handle exchange rates, avoid fraud, and use secure payment methods like Letters of Credit or PayPal.

 

2. Support Export

Governments and organizations often help businesses reach international markets.

• Export Credit Agencies (ECAs): These agencies provide financial backing like loans, insurance, and guarantees to minimize risks for exporters selling to unfamiliar or risky markets.

 

• Trade Promotion Councils: Bodies like the Export Promotion Bureau (EPB) guide exporters in understanding international regulations, attending trade shows, and connecting with foreign buyers.

 

• Reduced Tariffs and Free Trade Agreements (FTAs): These agreements lower taxes and duties, making it easier and cheaper for businesses to export to partner countries.

 

• Training and Capacity Building: Many programs help businesses especially SMEs learn documentation, packaging, logistics, and digital marketing to succeed globally.

 

3. How Can I Import Products from China

Importing from China is popular due to low prices and diverse manufacturing capabilities.

• Find Reliable Suppliers: Use platforms like Alibaba, Global Sources, or attend Canton Fair to meet manufacturers. Always vet suppliers via reviews, audits, and references.

 

• Request Product Samples: Before placing large orders, ask for samples to test quality and packaging, ensuring it meets your expectations.

 

• Negotiate Pricing and Terms: Discuss product costs, payment terms, delivery timelines, and Incoterms (like FOB – Free On Board or CIF – Cost, Insurance, Freight) clearly to avoid misunderstandings.

 

• Place Orders and Sign Contracts: A formal written contract protects your interests. Include clauses for disputes, quality standards, and delivery failures.

 

• Arrange Logistics: Choose between air, sea, or rail shipping based on your budget and urgency. Freight forwarders can manage documentation and booking.

 

• Handle Customs Clearance: Engage a licensed customs broker to process taxes, duties, and ensure smooth port release of your goods.

4. How I Import Goods from China

As an individual or small business owner, importing is similar but may involve simpler processes.

• Get a Trade License or IEC: Depending on your country, even individuals need basic registration or trade codes to import legally.
• Choose the Right Shipping Option: For small shipments, express courier services like DHL or UPS offer fast delivery. For large shipments, sea freight is more cost-effective.
• Understand Taxes and Duties: Know what customs duties, VAT/GST, or special taxes apply to your imported goods.
• Use a Customs Agent: An agent or broker helps you avoid mistakes in paperwork and ensures your goods are released on time.
• Pay Attention to Product Standards: Certain items require safety certifications or import permits, especially electronics, food, or pharmaceuticals.

 

5. How to Import Goods from China to Bangladesh

Bangladesh has its own procedures and regulations for imports.

• Register with the Registrar of Joint Stock Companies (RJSC): This gives your business legal standing and a registration number.
• Obtain a BIN and IRC: The Business Identification Number (BIN) is for VAT registration. The Import Registration Certificate (IRC) is required to conduct import activities legally.
• Open a Letter of Credit (LC): This is a financial instrument used to pay suppliers. Bangladeshi importers must often open an LC through a bank to guarantee payment.
• Choose a Chinese Supplier: After finding a reliable supplier, negotiate prices and product specifications.
• Hire a C&F Agent: Clearing and Forwarding Agents handle all port and customs work at the Bangladesh end, saving you time and effort.
• Pay VAT, AIT, and Duties: You must pay Value Added Tax (VAT), Advance Income Tax (AIT), and any other import duties based on the product category.

 

6. How Do Exports Support Jobs in the US Economy

Exports create ripple effects across the economy by increasing employment in several sectors:

• Manufacturing Sector: U.S. companies that export cars, machinery, and electronics hire more workers to meet international demand.
• Agriculture: Farmers depend on overseas sales of soybeans, wheat, beef, and cotton to stay profitable and grow operations.
• Logistics and Transportation: Export growth leads to more shipments, which increases the need for truck drivers, warehouse workers, and shipping companies.
• Professional Services: Businesses expanding internationally hire accountants, lawyers, consultants, and marketers to navigate foreign laws and market their products abroad.

 

7. How to Export Support Files on Aruba Switch

Support files contain logs and diagnostic data needed for technical troubleshooting.

• Login to the Aruba Switch via CLI or Web Interface: You need access to the switch to initiate an export.
• Use the GUI: If using the web interface, go to Maintenance > Support > Export. Select the type of file and destination (TFTP, USB, or internal storage).
• Files Help in Troubleshooting: These files are useful when working with Aruba support or managing complex networks.

8. How Do Exports Help PNG Economy

Papua New Guinea (PNG) depends heavily on exports for economic health.

• Natural Resources: PNG exports minerals like gold and copper, plus oil and gas, which make up a large portion of its GDP.
• Foreign Exchange Earnings: Exports bring in U.S. dollars and other currencies, which the country uses to import goods and stabilize its currency.
• Employment: Export-driven sectors like mining, agriculture, and forestry employ thousands of locals directly and indirectly.
• Infrastructure Development: Export earnings fund the building of roads, ports, schools, and hospitals in rural and urban areas.
• International Trade Relations: Strong exports improve diplomatic and trade ties, which can lead to further foreign investment and aid.

 

9. How Does Export Help Businesses and Economic Growth

Exports offer a wide range of benefits to businesses and nations.

Business Benefits:

• Access to Larger Markets: Selling overseas expands customer base and boosts revenue potential.
• Increased Revenue: International sales can lead to higher profits and better margins.
• Diversification of Income Sources: Exporting reduces dependence on local markets, lowering risk during downturns.
• Better Economies of Scale: Producing in bulk for global markets reduces unit costs.

Economic Growth:

• Inflow of Foreign Currency: Helps stabilize national reserves and boost currency strength.
• Job Creation: Export-related industries create employment across sectors.
• Industrial Expansion: Exporting encourages investment in production and innovation.
• Improved Trade Balances: Higher exports help reduce trade deficits.
• Enhanced Innovation and Competitiveness: Exposure to global markets pushes companies to improve quality and efficiency.

10. How to Export Service Now Tickets

Service Now is widely used for IT service management and issue tracking.

• Log in to Service Now: Access the platform and navigate to the incident list or task list that contains the tickets you want to export.
• Apply Filters: Refine your list by date, type, or assignee to ensure you export only the necessary data.
• Use List Export Feature: Click the menu icon (≡) in the top-left of the list view, then choose Export > Excel, CSV, or PDF based on your preference.
• Use APIs for Automation: For large-scale or regular exports, Service Now’s REST API allows you to automate the export process programmatically.

 

Conclusion

Whether you’re managing global shipments, exporting data, or analyzing how trade affects economies, understanding import-export dynamics opens the door to new opportunities. Importing from China, supporting national exports, or simply managing IT data like Aruba switch files or Service Now tickets all are connected to the broader framework of global commerce. By learning the strategies, regulations, and impacts involved, individuals and businesses can participate more effectively in the international marketplace.