Import/Export in Argentina

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Import and Export

The main exports of Argentina are food, meat and manufacturing products. The main export partners of Argentina are Brazil, Chile, the United States, China and Spain.

The main imports of Argentina are food, fuel, energy and capital goods. The main import partners of Argentina are Brazil, US, Germany, Italy and Spain.

The Government of Argentina currently imposes quotas for the importation of peaches, white glasses for corrective spectacles, automobile parts, paper, pulp and footwear.

Pharmaceuticals, chemical products, insecticides, veterinary products, medical devices, cosmetics, agricultural products, textiles and defence material require various approvals prior to import.

Planning & Preparation

In preparing to export your goods or services, you must not justassess, but scrutinise your potential, and prepare for the worst.This doesn''t mean you have to negate all optimism; just dont getconsumed by it.

These are the market essentialities toexamine:

• Structure of industry

• Demand for your product or service

• Your competition and how your company will forge itself alongside it

• Acclimatisation - alterations your company, product or service may have to adapt to

Next is the process of market entry, which will always seemsimpler on paper. Your main considerations will be:

• A market strategy that, if needed, acknowledges international trade development

• Financial resources and backing

• People, and how they can help develop your product for export / a new market

• Erudition in local requirements: packaging, pricing, labelling, etc

• Again, erudition, but in the costs and payment procedures of exporting

• Some of these factors alone may establish an unsuitability for your intended market, so research them thoroughly.

Next, is your product cut-out for export? Think about:

• The standards and regulations of products in your overseas market

• The fees involved with altering your product, service and company for a foreign market

UKTI

UK Trade & Investment (UKTI) is theGovernment organisation that helps companies in the UK succeed in theglobal economy. Offering services to UK based firms wanting to gainaccess to global markets through export and foreign expansion, UKTIoffer a range of services tailored to the needs of individualbusinesses, helping them to maximise their international success.

UKTI Services

Expert Trade Advice: The UKTIInternational Trade Team has 40 local offices around the UK throughwhich they are able to meet business owners and offer advice andsupport on international trade and growing a business. Find out more.

The Passport to Export Programme: ThePassport to Export programme was devised to offer new andinexperienced exporters support and guidance in the following ways (find out more):

• Free Action Planning
• Support in Visiting Potential Markets
• Mentoring from a Local ExpertProfessional
• Customised and Subsidised Training
• Ongoing Support

Gateway to Global Growth: A freeservice to experienced exporters which offers a strategic review,planning and support to help grow your company''s business overseas.Solutions could be complex requiring both UK Trade & Investmentservices and those offered by other public or private sectororganisations. It could involve the acquisition of specialistinformation and skills or guidance on how to achieve a specificobjective. It may even involve sharing your experience and problemswith other experienced exporters. Find out more.

Business Opportunities: With a team ofexpert advisors located overseas within British Embassies, HighCommissions and Consulates, UKTI publish overseas businessopportunities open to British companies. To benefit from theseBusiness Opportunities you must register your UK-based business onthe website. Find out more

Access to UKTI Market Expertise: UKTIare able to provide help with the initial approach into a new market,offering help through research and advice through 2 principleservices:

Overseas Market Introduction Services(OMIS): This service will put a business in direct touch with localUKTI staff in their overseas offices who are able to provide supportand access to country and sector-specific advice. Find out more.

Export Marketing Research Scheme(ERMS): Administered on behalf of UKTI by the British Chamber ofCommerce, companies may be eligible for a grant for market researchprojects to obtain commercial intelligence. Find out more.

Help with Visiting an Overseas Market: UKTI provide grant support for eligible Small & Medium SizedEnterprises to attend trade shows overseas and help arrange groups ofUK companies to attend tradeshows and missions. This is implementedthrough their Tradeshow Access Programme, allowing entrepreneurs totest market, attract customers, appoint agents and distributors, anddevelop international business. Find out more.

Selling & Distribution

To improve the chances of overseas success, you need to consider afew key issues. Sales presence, for instance, should be a toppriority. Will you sell directly? Will you trade over the internet?Perhaps trade shows are more suitable? Could you benefit from a localpartner who knows the market? Here are a few fundamental choices:

• Get yourself a distributor who can sell on a local or national level

• Sales agents can either sell a product for you, or alternatively acquaint you with potential clients or customers

• Joint ventures with local companies have gained in popularity, primarily because of their knowledge and established presence in the market. It is often a pricey option, however

• Of course, you can also set up your own office, ensuring maximum control on all operations. This is obviously the most expensive of all your options

A few things to remember. Firstly, when drawing up any contractswith agents or distributors, it is imperative to unequivocally defineobligations such as delivery and payment

Next, yourintellectual property (IP) may be jeopardised if it is not declaredin each foreign country. This can often be a laborious process, so beprepared. Remember that patents are generally recognised only intheir country of origin.

Marketing

Oh, the minefield of overseas marketing. Its no point squeezinga product or service into a new market with the shoehorn ofindigenous merit. Your product or service must adapt, refine, alter,acclimatise, tailor and fashion itself to a market, not rely on somefatalistic hope of simply fitting in. Products are more pliablethan people.

As aforementioned, the necessity to contextualiseyour product or service socioeconomically cant be overstated. Itwill be a paradoxical balance of market sensitivity and exploitation.Does your product require a drastic change to its image? Can it bechanged to flatter a national idiom?

Legal Obligations

Needless to say, a keen attention to laws, legislation andregulation is paramount. VAT rules should be considered early; someproducts may not qualify for the HM Revenue & Customs zero-ratepolicy.

Controls & Licenses

Youll need to check if any of your products require an exportlicense. Products such as chemicals and firearms, for instance,usually do.

Comprehension of the Law

Of course, upon entering a foreign country, a product or serviceis subject to, and must abide, national laws.

Developing Your International Trade Potential

This UK Trade & Investment (UKTI) programme was established tohelp novice entrepreneurs and exporters who are considering sellingoverseas. With its first-class knowledge of overseas business, ithelps entrepreneurs through training, planning and continuingsupport.

Here are some of the features of the programme:

• Free assessment of your preparedness for exporting and help devising an entry plan

• Training in all the essentialities of overseas trading

• Support and help with market research, and the possibility of financial assistance if needed

• Expert advice and help with overcoming protocol, such as language and cultural barriers

• Advice from specialist international trade advisors

• Continuing support for overseas development and trading

You can join the Developing Your International Trade PotentialProgramme if you meet the following requirements:

• Less than 250 employees

• Less than 50 million Euro turnover

• Your company makes 25% or less of turnover from exports

• You are a new, novice or passive exporter

Are You Ready ToExport?

Entering into the export market throughan existing business may seem like an obvious way to increase yourcurrent revenue. In many cases, it is a viable means of expanding abusiness, and generating greater income. However, it is important toconsider the logistics, timing and practicalities before jumping intothe unknown.

Exporting can extend your market, boostyour turnover and prevent you having too great a dependence on yourUK-based customers. But it isn''t always an easy option. Starting toexport poses a whole new set of challenges, from identifyingpromising markets and customers to ensuring that you can fulfil yourexport contracts. Developing new export markets takes time and money.

Exporting isn''t simply an add-on toyour existing business. It should be part of an overall strategy todevelop the business. Before you start exporting, it''s worth makingsure you''ve developed a complete export plan looking at all the costsand risks involved. A well planned extension overseas can bringfinancial and reputational success, but a rushed job may just causemore damage than it is worth.

Planning is key, so consider thefollowing before making any decisions:

• Exporting presents all the normal challenges of marketing in the UK - it''s up to you to find customers and convince them to buy from you. Understanding the market and its requirements is very important. Dont assume that because you know the domestic market, you automatically know foreign ones.

• Exporting is usually a way of growing a successful business, rather than an easy way out for one that''s in trouble. If you''re struggling with limited finances or overworked employees, you may not have the resources to take on the extra work.

• As an international business, you will need to cope with extra logistical problems, contractual issues and paperwork. You''ll probably want a contract drawn up using internationally recognised terms and conditions and standard commercial practices to make it clear what your responsibilities are.

• There''s also a range of paperwork for sorting out transport, customs clearance and payments. These may take more time and effort than you expect, and must be dealt with in meticulous detail.

• You need to comply with regulations in both the UK and overseas. For example, some goods that are allowed in the UK might not satisfy another country''s standards.

• Exporting demands additional resources, both in terms of financing and skilled personnel. Be prepared for your expenditure on staff and expert advice and services to increase significantly before you start to see the benefits

• With the additional costs, such as international transport, you may find you simply can''t compete with local suppliers. If the market only offers low margins, or you haven''t got the resources you need, you may decide that exporting isn''t for you. Make sure that you plan carefully and know that you could present a competitive product or service overseas.

Equally, if you''ve got a good productto offer and a well-run business, the chances are there will beopportunities for you out there in the export market. If the rewardsyou expect justify the investment and the risks, you should commit toyour export plan and make it happen.

The Plan

Assess your skillsand resources

To start exporting successfully, youshould take a systematic approach and decide what your exportstrategy is. You need to spend time and money planning, researchingmarket opportunities and building relationships. You may also need toinvest in modifying your product and service to suit overseascustomers.

Buy in help

Once you''ve planned your exportingactivities, you also need to devote extra resources to handling yourexporting business. Marketing to overseas customers tends to be moredemanding than selling within the UK. Exporting also needs specialskills - such as organising international transport and handlingcustoms clearance.

Many businesses find that the best wayto get started is to buy in the services they need, and buildin-house skills and resources later. For example, you might use alocal agent to sell, and a freight forwarder to handle deliveries.

Source your capital

Exporting can also be financiallydemanding. Customers often want credit from the time they receive thegoods. For a long distance shipment, this could be weeks after youproduced and shipped the goods, so you get paid later than you wouldby a customer in the UK. At the same time, you may have to meet extracosts like transport and insurance.

The more successful you are, thegreater the demands placed on your business will be. It''s worthplanning ahead to be sure you have the capacity to handle the extraproduction, selling and after-sales support.

Organise yourpaperwork

When trading internationally the rightpaperwork is crucial. Missing or inaccurate documents can increaserisks, lead to delays and extra costs, or even prevent a deal beingcompleted.

Whether you are importing or exporting,you need to understand what paperwork is required. Even if you use afreight forwarder or an agent, it''s still up to you to make sure theright documentation is available. See our basic guide below forpointers to get you started.

Documentation Guide

This guide explains the keydocumentation you need to use. It outlines what should be in yourcontracts and what paperwork you need for customs, transport andpayment.

Key documentation for internationaltrade

• There should be a clear written contract between buyer and seller, including details of exactly where goods will be delivered.

• Specific documents may be needed to get the goods through customs and to work out the right duty and tax charges. Requirements of both exporting and importing countries should be addressed.

• Documentation is needed to cover the transport of the goods and insurance during the journey.

• The right paperwork can be an important part of the payment mechanism. It''s important to co-operate with your counterpart on getting the paperwork right.

NB: If you''re shipping goods to acustomer overseas, they should tell you what paperwork they requireat their end. If you are dealing with a non-English speaking country,it can be a good idea to provide one set of commercial documents inthe local language.

International tradecontracts and Incoterms

Different countries have differentbusiness cultures and even languages. It''s a good idea to make sureyou have a clear written contract to minimise the risk ofmisunderstandings.

To avoid confusion, internationallyagreed Incoterms should be used to spell out exactly what deliveryterms are being agreed, such as:

• where the goods will be delivered

• who arranges transport

• who is responsible for insuring the goods, and who pays for insurance

• who handles customs procedures, and who pays any duties and taxes

As well as including delivery details,the contract should cover payment. This should include what currencypayment will be made in, how much will be paid, when payment is dueand what payment method will be used.

Export documentation

You may need an export licence toexport goods. For example, there are controls on exports of chemicalsand military technology. Licence requirements may also depend onwhich country you are exporting to.

Export declarations

If you are selling goods within the EU,most goods are in free circulation and can be easily moved from theUK to other countries without customs controls or charges.

If you are selling to customers outsidethe EU, you need to declare your exports to HM Revenue & Customs(HMRC). This is generally done electronically, using the New ExportSystem (NES). The declaration includes details of the classificationof the goods being exported and which country they are going to.

Alternatively, an authorised agent orfreight forwarder can handle the customs declaration for you.

Export VAT

For VAT purposes, exports are generallyzero-rated, but you should keep copies of your VAT invoices and proofof export. This helps you prove that the goods left the country andthat you do not have to pay any output VAT on them.

If your sales to EU countries exceed£260,000 - you must also complete the Intrastat supplementarydeclaration.

Exports to countries outside the EU donot count towards the Intrastat threshold and do not need to beincluded.

Overseas imports

You should check what documentation isrequired for import into your customer''s country. Typically, you needa commercial invoice and shipping documents such as an Air Waybill.Other requirements can include a certificate of origin.

Once you have considered the logisticsof entering the export market either with an existing business ora new venture you can start planning. Just remember to bemeticulous, and plan everything to the last detail, follow ourpointers, and you should enjoy a lucrative business opportunity!

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