What is Micro Export? How To? Selling Abroad
Expanding abroad is among the most important goals of almost all trading companies. Because it is extremely advantageous to earn income through currencies that have a high value against TL. Moreover, there is no need to sell a ship full of products to export. Micro export is a model that enables small and medium-sized companies to expand abroad. Micro export is a model that enables small and medium-sized companies to expand abroad. It is valid for one-time sales for products worth less than 15 thousand euros and weighing less than 300 kilograms. Micro-export companies can sell even a few boxes of products abroad. In addition, they also have many advantages. Especially e-commerce companies are closely interested in micro exports. E-export, which is among the popular e-commerce models, can be done on micro scales. You can also sell the products on your e-commerce site abroad thanks to this model. So what is micro export and how is it done?
What is Micro Export?
Micro export is a trade model that covers foreign sales with an amount less than 15 thousand euros. This amount is the sales amount made at once. In other words, a one-time sale must be less than 15 thousand euros, not the total amount within a certain period. Additionally, this amount does not include VAT. Micro export limits are not limited to the amount. The weight of the products to be sent is also subject to the definition of micro export. Accordingly, for an export to be micro, the weight of the products sold must be less than 300 kilograms.
This trade model, which makes it possible to export on a micro scale, is especially useful for e-commerce companies. In a wholesale model such as B2B, the conditions may be sufficient to meet classical exports. But it is not possible to say the same for B2C. When sales are made directly to the consumer, the products remain low in price and quantity. The scope of micro exports is exactly suitable for such business models. In addition, making this export model with ETGB (Electronic Commerce Customs Declaration) increases its suitability for e-commerce.
How to Do Micro Export?
It is a trade model with micro export limits. Therefore, exports must be made within these limits. The most important micro export rules, as mentioned above, are that the amount must be less than 15 thousand euros and the weight must be less than 300 kilograms. In order to put this trade model into practice, the products must first have these qualities. The official process proceeds in a much easier and more practical way than classical export and is completed in a short time.
In order to make micro exports, it is sufficient to work with cargo and logistics companies that are authorized to prepare ETGB. There is no need for a customs consultant, the process is easier and more practical.
Companies engaged in conventional export must contact a customs consultant directly. During this process, a lot of documents are prepared and various expenses are incurred. In micro exports, there is no need for a customs consultant. It is sufficient to contact an institution authorized to prepare and regulate ETGB. The institutions in question are cargo and logistics companies that carry out international transportation. The original invoice and English copy of the products subject to micro-scale export are delivered to these companies. The relevant company carries out the commercial activity in question jointly and severally responsible. Afterwards, the tax refund process is completed. If you are doing e-commerce, this process will be much easier for you. If you want to do micro e-export, you can benefit from the advantages we offer as IdeaSoft. You can expand abroad thanks to IdeaExport, which you can use as a micro export module. This module gives you the opportunity to translate your site into various languages. In addition, your e-commerce site supports more than 160 currencies and reaches the level of receiving payments through international systems.
What is Required for Micro Export?
It is more flexible than the classical model in terms of micro export conditions. But it still has to be subject to certain conditions. One of the conditions that exporters must meet is, of course, being a taxpayer. Being a taxpayer indicates that there is no legal obstacle that prevents a person or institution from doing business. To become a taxpayer, a company must be established. At this point, the scale of the company is not important. It is also possible to make micro-scale exports through private companies such as joint stock and limited companies. So, if you want to export individually, the micro model makes this possible as well. The company must also have the authority to issue invoices and make tax declarations. Because the process is carried out only on the basis of invoices issued in line with legal frameworks. In addition, the company that sells products abroad must register in the customs system with the title of “exporter” via e-government. The task of carrying out the process lies with licensed logistics and cargo companies. Micro exports can be made if products other than prohibited ones are sold abroad within the drawn borders.
What Documents Are Required for Micro Export?
Although micro export is an advantageous method in terms of documents, some documents are required.
When preparing a micro export invoice, it is important that information such as recipient and sender information, product origin, invoice type and invoice number are included completely and without errors.
Missing any of the documents in question or an error on the document may result in the export process not being completed. Therefore, it should be treated sensitively. The documents required for micro export can be listed as follows:
Indirect representation authorization certificate (prepared once)
Export information sheet
Finance approved invoice or e-archive invoice
English invoice (commercial invoice / proforma)
How to Prepare Micro Export Invoice?
Care should be taken when preparing a micro export invoice. The invoice must be prepared without errors. In this process, a finance approved invoice or e-archive invoice must be issued. Micro export is not a transaction that can be carried out with e-invoice. The invoice that must be prepared for this transaction must contain some information. The information that must be included in the invoice is as follows:
Full title, tax office, tax number and address of the buyer company
Full name, tax office, tax number and address of the sending company
Origin of the product (If the origin of the products is different countries, it must be stated separately for each product.)
Invoice type
Invoice number
Invoice date
Date and time of issue
Delivery method of the shipment
Signature and stamp
What Should Be Considered When Preparing a Micro Export Invoice?
There are some details to consider when preparing a micro export invoice. First of all, all of the information listed above must be included in the invoice completely and without errors. It is also necessary to pay attention to the way this information is included in the invoice. Other details are as follows.
Export invoice must be prepared excluding VAT.
The invoice must include a Turkish description along with GTIP and origin information.
The country name must be specified in the address information.
The content and values in the official invoice and the proforma invoice must be exactly the same.
If insurance and freight are paid by the sender, they should be stated separately on the invoice.
The prepared invoice must be printed, signed, stamped and delivered in printed form.
What Can Be Sold With Micro Export?
There are some rules and restrictions regarding micro export products. Exports can only be made if products that do not exceed the limits and are not on the prohibited list are sold. Accordingly, micro exports are not possible in the following cases.
Free product shipping
Exports exceeding the limit
Outlets for repair purposes
Inward & outward processing etc. transactions
Order related samples
Temporary exits for fairs and exhibitions
Products subject to authorization, restriction, prohibition and control
There are also various restrictions and conditions on some products that are allowed to be exported on a micro scale. For example, medicines require approval from the Ministry of Health. It is mandatory to specify details such as labor cost for gold and silver shipments, information such as AC, DC, Watt for machine parts, and fabric content for textile products. There are also products that are definitely not micro exported. Some of these products can be listed as follows:
Wood
historical artifacts
Tobacco seeds and seedlings
Capia type red pepper
licorice
raw meerschaum
Olive oil
salep
What are the Advantages of Micro Export?
Micro export is frequently preferred because it is a trade model with advantages. Especially tax-related advantages play an important role in entrepreneurs choosing this method. For example, micro export is a model for which a VAT refund can be obtained. When the necessary procedures are carried out after the export, the VAT arising from the sales in question can be refunded.
One of the biggest advantages of micro exports is VAT refund. It also offers customs duty exemption, making it an attractive option for e-commerce companies.
In addition to returns, micro exports are known as a trade method that also provides tax exemption. It has serious advantages, especially for e-commerce. Micro exports made through e-commerce also bring customs duty exemption. In addition, it is also possible to benefit from micro export supports offered by the state.
What is ETGB (Electronic Commerce Customs Declaration)?
ETGB can be briefly defined as micro export customs declaration. This declaration is submitted electronically and there is no need for a paper printout. It was put into effect in order to handle the customs procedures of products sold abroad in a practical way. There is no need to work with a customs consultant to submit an Electronic Commerce Customs Declaration. Because transactions regarding micro export declaration are carried out by fast cargo operators authorized on behalf of buyers and senders. The company that acts as a seller can follow the process through the micro export inquiry screen of the Ministry of Customs and Trade.
What are Micro Export Transactions and Global Cargo Companies?
When you make a sale by choosing this trading method, global cargo companies carry out the entire export process on your behalf. After choosing your company, you prepare an indirect representation authorization document and submit it together with your signature circular. In your subsequent micro-scale export transactions, the global cargo company you have agreed with will be your representative. Micro export shipping fees may also vary depending on the company. Therefore, it is useful to take this detail into consideration when choosing a company.
Working with global cargo companies such as UPS, DHL, TNT, FedEx and PTT, which are authorized to regulate ETGB in micro exports, ensures that the process progresses quickly and smoothly.
UPS Micro Export
UPS is a global cargo company that carries out the transportation and delivery of both domestic and international shipments. In this regard, it also carries shipments made with ETGB abroad. The documents required to start the process are sent to the company by e-mail. UPS personnel who come to receive the shipment request the originals of the documents. After the transactions are completed, the shipment is released.
DHL Micro Export
DHL is one of the most popular cargo companies preferred by micro-scale export businesses. It has the authority to issue Electronic Commerce Customs Declaration. It provides a fast service and allows the companies it cooperates with to inquire about declarations via its website.
TNT Micro Export
TNT, which has the authority to regulate ETGB, ensures that the products sold within the scope of micro-scale exports are delivered to the address abroad. After the necessary documents are delivered to the company, the shipment’s exit procedures are started. In this process, it is an important detail that the products subject to the declaration are within the micro-scale export limits.
FedEx Micro Export
One of the popular cargo companies preferred in the micro export process is FedEx. FedEx issues ETGB on behalf of the exporting company and completes all transactions related to this electronic declaration.
PTT Micro Export
PTT, one of Turkey’s most comprehensive companies in terms of cargo, is also authorized to transport micro-scale export shipments. Products subject to export must be delivered to PTT centers together with their Turkish and English invoices.