SHIPPING AND BILLING IN MICRO EXPORT
In this blog, we will examine many topics such as what is cargo shipping in e-export, how it is done, how to bill. Also, before reading this blog, I recommend you to read my blog named Countries with the Highest E-Commerce Volume and Export Data of These Countries.
E-Export Cargo Shipment
In order to carry out e-export, it is necessary to have an e-commerce platform. The most used of these are e-commerce sites such as Etsy, Amazon, Bol.com, Aliexpress, Allegro. Sales made from here are included in the scope of micro export. A VAT-free invoice must be issued after the sale is received.
So what is this micro export? The export type whose weight does not exceed 300 kilograms and whose invoice amount does not exceed 15,000 Euros excluding VAT is called micro export. The biggest advantage of micro export is that you don’t need to work with a customs broker. You can complete all export processes with ETGB (Electronic Trade Customs Declaration). In other words, you do not have to deal with customs procedures and documents and bear the costs of these as in traditional exports. That’s how easy and fast the e-export cargo process works.
In order to receive ETGB, it is necessary to work with international cargo and logistics companies that are authorized to issue and prepare ETGB. The original Turkish invoice of the product you are exporting and a copy of the English invoice must be delivered to this international cargo company. It will be sufficient to pack the products you export and send them to the cargo company with the invoice.
When using ETGB, there is no need for a written printout, it can be arranged electronically without the need for a customs consultant.
Requirements for Micro Export
For micro-export, you must have a company. Having a company is also important for you to issue invoices. Your company must also have a customs taxpayer registration. How to make this registration varies according to the type of company. You can register for a sole proprietorship via e-government. However, for limited liability and joint stock companies, you must apply to the customs directorate.
Customs Taxpayer Registration for Private Companies
If you are a sole proprietorship, you can make the customs taxpayer registration via e-government. You should search for Taxpayer Registration Application for Customs Transactions on the e-government platform and click on the Taxpayer Registration Application for Customs Transactions of the Ministry of Commerce. In the next step, after registering your information on this page, your customs taxpayer registration will be completed.
Customs Taxpayer Registration for Limited and Joint Stock Companies
If you have a Limited or Joint Stock company, you should prepare your documents, write a petition containing your tax office, tax number and company name and submit them to the customs office in your city.
The documents we need to make a Customs Taxpayer Registration are;
-Copy of identity card of the company official,
-Commercial registry document and circular of signature.
Although it is easier than traditional export, certain documents are required. These;
-ETGB (Electronic Trade Customs Document) declaration,
-E-archive invoice (stamped, signed).
What is E-Archive Invoice?
This invoice, also known as micro export invoice, is the invoice issued to the products while exporting. This invoice is a document issued electronically in return for the sale. The e-archive invoice should be VAT-free, with Turkish explanations, signed and stamped, containing the GTIP code.
What is Proforma?
It is a document that defines the proforma sold product in the sale area. There is information about the seller and the buyer, information about the product that has been sold.
VAT Refund in Micro Exports
Within the scope of micro export, tax exemption is offered to the exporter. In order to benefit from this exemption, the ETGB document is sent to the exporter upon the request of the exporting company. After this document is digitally approved by the Customs Directorate, it must be uploaded to the Tax Offices Automation Project (VEDOP) system. In the next step, you can make a VAT refund request by selecting ETGB in the declaration inquiry section of the Ministry of Commerce website, entering the declaration number, and taking a screen printout and submitting it to the tax office.
GTIP Code and Detection of GTIP Code
We can think of the GTIP code as the identification number of the product. We use this code to reach the list with detailed information about our product in cross-border trade. This code has 12 digits and shows the Customs Tariff Statistics Position of the goods. In order to determine the GTIP code of your product, you can find it in the GTIP search section of the Turkish Exporters Assembly website.
How is E-export Invoice issued?
E export invoice is a mandatory document in e export sales. This invoice should be issued in accordance with the standards set by the Revenue Administration, in the digital environment of the Revenue Administration, without VAT. To edit the invoice, you can search for it as an e-invoice portal. You can also issue an e-archive invoice from the E-archive portal site. You can issue invoices in Turkish and English here. The information on your ETGB and e-export invoice must be one-to-one. The first thing to do for an E export invoice is to apply to obtain a financial seal. After approval, you can issue your invoices with some integration systems. In these systems, the signing process with financial seal is done digitally. After all these processes, you can now perform your signing processes in the digital environment.
Required Information on the Export Invoice
- The name, title, tax office and tax number of the sender/seller company,
- If the buyer company is; name, title, tax office and tax number
- If the buyer is the person; name, surname, address information,
- Condition of delivery of the goods
- The unit price of the good, the selling price (unit x price = total)
- Quantity, weight, length of the goods
- The type, type, number, number, brand of the container in which the goods are contained,
- The place of delivery and payment of the goods
- The way the goods are sent and the details according to the shape (air, road, sea, rail, etc.),
- GTIP code of the goods
- Customs tracking number for goods service lines,
- Account number to pay (IBAN, SWIFT)
- Payment method and terms (instalments, cash)
- Payment channel
- Stamp and signature of the company,
- The invoice date, invoice type and number,
- The date the invoice was issued,
- Name, surname of the person issuing the invoice
E-export Invoice Example
- E-export invoices should be issued as e-invoices.
- E-export invoices should be issued without VAT.
- E-export invoices should be issued in Turkish and English.
- The information on the E export invoice and the customs declaration must be identical to all details. If there are different information from each other, your delivery process will be blocked and prolonged.
- Information about the product should be written clearly and precisely. GTIP number must be determined correctly. Incorrect information will cause problems at customs.
Cargo Calculation in E-Export
E-export cargo calculations are different from cargo calculations in Turkey. The value of the cargo in desi is calculated. The value to be taken as a basis varies according to the companies (weight, price, volume). The distance of the country to which the cargo will be sent is also added to the cargo price calculation.
Width x Length x Height / 5000 (Volume divisor)
The volumetric divisor number (5000) here is standard. For example, let’s say the dimensions of our package are 50x50x30 cm. The price of this package is charged according to 15 decis, which is the result of the “50x50x30/5000” transaction.
Things to Consider About Cargo Sending in E-Export
- The legal trade conditions of the receiving country should be known because the shipping subject differs according to the continents. The things we need to pay attention to are;
- Export information form, invoice, representation authorization document must be filled in completely.
- You should definitely determine whether your package is within the scope of micro export.
- We recommend that you notify your customer of any additional sales tax fees and charges.
- You should definitely find out if the cargo company you work with has the authority to issue ETGB.
- You should use a package according to the dimensions of your products, otherwise you may pay extra shipping costs.
- Your cargo must comply with international standards.
Cargo Companies We Can Use For Export
As seen above, many companies that provide domestic cargo services also have e-export cargo authority.