The concept of e-export refers to the trade carried out by selling products to customers abroad through online sales channels. Online sales channels can be websites, electronic marketplaces, social media, etc. In order to make e-export, an e-commerce platform is needed to enable action to be taken. E-commerce is a type of trade carried out by conducting trade online in a digital environment. Thanks to this e-commerce platform, customers will contact the business. Following the sales transaction, an invoice will be issued and the e-export process will be realised if the product is exported by issuing the Electronic Trade Customs Declaration (ETCD) through micro export.
There are various differences between the concept of export and the concept of e-export. E-export has many advantages compared to traditional exports. For example; There is no need for a customs broker for the customs declaration, and an electronic customs declaration (ETCD) is issued instead of the standard customs declaration. Under normal conditions, the customs clearance process in the recipient country of the export is between 2-7 working days and depends on the customs brokerage, the buyer and the documents, while e-customs clearance can be carried out within 12-48 hours in e-export within the scope of many countries. In addition, B2C Customs Clearance Tax Exemptions for facilitating e-commerce and increasing the volume are fully valid for e-export. E-export operation preparation, business processes and follow-up are simpler and easier than exports under normal conditions. In economic terms, e-export is more economical than traditional exports, as well as easier in terms of planning and programme. There are various factors to be considered before e-export is carried out. These are:
- Identifying the e-export potential correctly
- Suitability of the product for foreign markets
- Legislation related to e-export
- Opening the website abroad (e.g. providing services in different languages)
- The right logistics plan in terms of product dispatch.
As mentioned above, there are two ways for a product or service to meet with the buyer in the e-export process. The first one is that the seller offers a product or service through a website to be created by the seller without an intermediary platform or company. The second way is to bring the product and service together with the buyer through an intermediary company or platform. The working principle of intermediary companies is basically divided into two. The first of these is the Aggregator Business Model; the other is the Marketplace Business Model. In the Aggregator Business Model, the intermediary company establishes a partnership with service or product providers and gathers them under its own brand. For example airbnb, uber, bitaksi etc. In the Marketplace Business Model, the intermediary company aims to gather sellers in the same environment. In this business model, sellers make sales under their own brands. For example amazon, alibaba, hepsiburada etc.
Problems Encountered in E-Export:
1. Logistics and Transport
The Logistics and Transport process covers all storage, stock, distribution and customs operations. In this process, excess cost and excess delivery times are often a problem. Another output of this situation for the product or service provider is customer loss. Acting individually in the logistics process is one of the mistakes that increase the cost. As a matter of fact, collective action in this process will significantly reduce the cost.
For example, the FBA (Fulfilment by Amazon) service provided by Amazon provides a serious advantage for product and service providers. With Amazon Logistics, also known as FBA, the products are stored in Amazon Turkey's contracted logistics centres. Amazon manages the preparation, packaging, fast delivery and dispatch processes and provides 24/7 customer service and satisfaction for these orders.
ETCD (Electronic Trade Customs Declaration), which also constitutes an advantage of e-export, is an application used in the customs procedures of goods arriving/departing by air, road, mail or fast cargo transport, where all transactions related to customs declaration are carried out electronically and no paper printout is required. In this way, exporters exporting on a micro scale are enabled to export and receive tax refunds by reducing customs declaration costs.
The following express cargo transactions can be made within the scope of ETCD:
- A book or similar printed publication for personal use with a value not exceeding EUR 150,
- Goods subject to the export regime, the amount of which does not exceed 300 kilograms gross and 15.000 Euro,
- Goods with a value up to 1.500 Euro and not exceeding 30 kilograms gross, excluding diplomatic goods and passenger goods, which are not subject to the free circulation entry regime and do not have commercial quantity and nature,
- Specimens and models
- Personal belongings of the traveller arriving one month before and three months after arrival,
- Books or printed publications sent to or received by public institutions and organisations, libraries, museums, organisations engaged in education or scientific research.
In accordance with the customs legislation, it is forbidden to import mobile phones, supplements, sports foods, cosmetics, electronic cigarettes and cartridges into the country within the scope of fast shipping.
The entry of medicines used in personal treatment with documents such as prescription, doctor's report and sports foods can be allowed under certain conditions.
2. Customs
High costs in the customs process constitute another sectoral problem. High costs at the airport, stamps, taxes and expenses paid, and excessive warehouse entry fees are among the factors that prevent e-export from reaching the targeted point.
3. Sales and Marketing
Product and service providers advertise the product or service they provide through digital platforms. These digital platforms are primarily Google, Facebook, Twitter, Instagram, etc. At this point, the problem of taxation of digital advertising revenue collected in the relevant market and transferred abroad arises. Accordingly, as of 01.01.2019, it has been decided to deduct tax from the payments made to those who provide digital advertising services or those who mediate the provision of the service. Pursuant to the Presidential Decree No. 476, it has been decided to withhold tax as follows from the payments to be made to those who provide or mediate online advertising services as of 1 January 2019.
- 15% for real persons within the scope of Article 94 of Income Tax Law No. 193,
- 0% for corporations resident in Turkey within the scope of Article 15 of the Corporate Tax Law No. 5520 (""CTL''),
- 15% for corporations that do not have a place of business in Turkey (limited taxpayer) within the scope of Article 30 of the CTL
Therefore, this withholding tax creates a heavy financial burden for the advertisers by keeping the digital advertisement budget in excess. This creates commercial problems for product and service providers, directly and indirectly affecting e-exports, and reduces their competitiveness.
4. Payment
With the spread of e-export, the issue of payment has also come to the agenda. Regarding the payment process, the importance of factors such as secure shopping and payment facilities has increased. Although PayPal, one of the online and reliable payment systems, provides great advantages in the international arena in terms of payment in terms of enabling secure shopping over the internet or sending money to the desired person only through an e-mail address, PayPal announced that it stopped its activities in Turkey with the statement published on its official website on 30 May 2016. In this case, product and service providers in Turkey had to resort to alternative payment methods, and this time the problem of high commission fees emerged. In addition, not using or not recognising local payment systems, not offering local currency as an option are some of the problems emphasised by the participants in terms of payment systems.
5. Return Status After Sales
Return possibilities arising after the sale also constitute a problem for product and service providers. Pursuant to Article 446 of the Customs Regulation, the final exported goods may be returned due to reasons beyond the control of the exporter, such as not being able to enter free circulation due to the legislation in force in the country where they are sent or not being accepted by the buyer due to defects. Pursuant to Article 451 of the Customs Regulation; In order for the goods returned after export to enter free circulation exempt from customs duties, if there are rights and benefits benefited due to export, the document showing that they have been returned must be attached to the declaration. Otherwise, in case of return, the financial burden of the exporter may become heavy.
6. Human Factor
In the event that procedural procedures are carried out by persons who are not familiar with the systematics of Turkish Customs Legislation and technical terms and rules, the process is prolonged and the cost increases accordingly. Therefore, it is important that customs affairs and procedures are carried out by experts and exports are realised as soon as possible without procedural problems. In practice, the lack of qualified labour force is often felt in e-export and this situation has negative consequences.
CONCLUSION
The whole of the business and transactions of distance sale of goods, which is carried out towards another country with a simplified customs declaration or customs declaration with remote communication tools and declared as e-commerce, is called e-export. E-export constitutes one of the developing processes in Turkey. As a natural consequence of its development, it brings along various problems today. This article explains some of the problems that create a financial burden for exporters in the e-export process.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
