In our opinion, commercial activities are of those difficult ones to do and I would say, it actually is!
As far as the matter of export is concerned, there are several parameters you must consider if you are looking for start it. For instance, if you are intended to export products of any sort to Russian Federation following steps must be taken:
- Market feasibility study including assessments to check whether it is possible to import that specific sort of product to Russia or not.
- Initial negotiations including price adjustment and finally contract conclusion. Several aspects is suggested to be considered:
- Taxes subject to the product which you are intended to export.
- Check whether any duties are applied on that specific sort of product. For example, in some countries to make raw minerals more difficult to export, significant duties will be applied on their final invoices.
- It is better for you if you issue a proforma invoice as the seller of the cargo writing the name of the Russian company as the Buyer. This is not a necessary document in Russian Federation but it may be helpful in some customs procedures.
- Contract conclusion with your Russian party who wants to buy your cargo. You contract must be in two Russian and English language with the equal content. All banking transactions and customs declration will be made based on your bilateral contract between you and your Russian party so this part of operation is by far one of the most important steps in your job.
It should be noted, although there are contract templates in Russian and English language, you must check the contract line by line and article by article. I must admit that, even a single sentence in the contract that you didn’t or couldn’t check may throw you in a big trouble!
- Cargo preparation and packaging in comply with destination standards.
- Customs affairs in the country of origin.
- Cargo transportation. Cargo insurance.
- Certificate of inspection (if required).
- Documents issuance including Invoice, packing list, CMR or BL, certificate of origin and any other documents required in country of destination.
- Customs declaration in place of destination. VAT and customs duties to be paid and cargo should be cleared.