Business Across Borders – Understanding International Trade

International trade is a complex process, but also an exciting business opportunity. DHL can help not only with global customs requirements and trade terminology but also with local import and export support and resources.

Learning the Incoterms® Language

Incoterms® - an acronym for International Commercial Terms – are managed by the International Chamber of Commerce. They are recognized and accepted as the standard for international trading and are regularly updated as commercial conditions change.

Familiarity with Incoterms® will ensure you purchase goods from manufacturers abroad in accordance with applicable regulations, documentation and procedures.

Their main objective is to define criteria for the distribution of expenses and the assignment of risk between parties involved in international transactions.

Incoterms® serve to standardize the process of shipping and receiving merchandise. In addition, they determine the cost allocation of international commercial transactions and establish agreed responsibilities for exporters and importers.

Incoterms® 2010 are classified into two categories according to the mode of transport.

Incoterm and Definition

EXW	Ex Works	The seller's only obligation is to make the goods available at its premises or at another named place (works, factory, warehouse, etc.). The buyer bears all costs and risks involved in taking the goods from the seller’s premises to the desired destination. This term represents the minimum obligation for the seller.
FCA	Free Carrier	The seller’s obligation is to hand over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. The parties are advised to specify as clearly as possible the point within the named place of delivery, as the risk passes to the buyer at that point.
CPT	Carriage Paid To	The seller pays the freight for the delivery of goods to the carrier or to another person nominated by the seller at the named destination. Once delivered, the risk of loss or damage to the goods is transferred from the seller to the buyer. This term requires the seller to clear the goods for export.
CIP	Carriage and Insurance Paid To	The seller has the same obligations as under CPT but has the responsibility of obtaining insurance against the buyer’s risk of loss or damage to goods during carriage. Insurance only needs to be obtained at minimum coverage and the seller is required to clear the goods for export.
DAT	Delivered At Terminal	The seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” includes quay, warehouse, container yard or road, rail or air terminal. The seller is responsible for the export clearance procedures and the importer is responsible for clearing the goods for import, arranging import customs formalities, and paying import duty.
DAP	Delivered At Place	The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller is required to clear the goods for export and the importer is responsible for effecting customs clearance, and paying any customs duties.
DDP	Delivered Duty Paid	The seller is responsible for delivering the goods to the named place in the country of importation, including all costs and risks in bringing the goods to import destination. This includes all export and import duties, taxes and customs formalities.

There are four Incoterms® in this category:
FAS (Free Alongside Ship),
FOB (Free On Board),
CFR (Cost and Freight)
CIF (Cost, Insurance and Freight)

These Incoterms® are listed for your information only as they are not needed when sending shipments with DHL Express.

The Incoterms® Chart of Responsibility provides an overview of the exporter’s and importer’s obligations within each category.
View Chart of Responsibility

Use of Incoterms® is not a legal requirement, however using them is always recommended to simplify transactions, reduce misunderstandings with those you do business with.

You can read more about global Incoterms® by visiting the International Chamber of Commerce website, which includes an FAQ and an explanation of Incoterms rules.
Access the International Chamber of Commerce website

Learning about Customs with DHL

DHL Express has been a global expert in international trade for well over 40 years and now processes several million customs entries every day. As one of the world's largest customs brokers, we use local expertise to understand diverse customs regulations.

That’s why, with DHL as a partner for your small business, its in-house experts are well positioned to help you navigate the complexities of customs compliance and all of the related terminology and guidelines. Understanding the processes and terminology involved will help you enter markets and build a long-term foundation for successful international trade.

The importance of understanding the Customs requirements of each country that you trade with cannot be overstated. National regulatory bodies will use your customs documentation to verify the contents of your shipment, its value, country of origin and other factors to determine the amount of duties and taxes that are due on the goods. You therefore need to ensure that your documents are as detailed as possible.

Failure to complete proper documentation or adhere to the rules regarding shipping to another country can cause considerable delays, so it is important to pay close attention to this aspect of international trade. Inadvertently trying to import controlled or restricted goods can cause long-term problems for your business.

However, with DHL to support and reassure you every step of the way, this type of drama can be avoided. Therefore, feel free to call on our close relationships and historical ties with customs organizations around the world to help your international business succeed. Our local DHL Express Customs experts will always be there for you.

Every country has a variety of requirements, agreements, regulations and laws regarding importing and exporting. Because all countries depend on international trade as an important element of their economic growth, most publish helpful web-based information to guide importers or exporters doing business with that country. Therefore, it is still always highly recommended to contact destination country border authorities or consult their websites.

These are the reasons why DHL is the best partner for all Customs-related issues:

More than 40 years direct experience in managing customs clearance
More than 1,200,000 formal import customs declarations processed each month
More than 4,350,000 import shipments processed each month
First-hand experience in handling complex customs clearance
Electronic declaration capabilities (EDI)

This is the homepage of the Directorate of Taxes and Customs of Colombia, known by the acronym DIAN. From here you can access the following pages:
Directorate of National Taxes and Customs of Colombia

This section of the website provides explanations about different customs procedures, both for exports and imports.
Valounet

On this page you will find answers to many questions about foreign trade and customs in Colombia.
Customs FAQ

In the top menu, you will find a button with the normative terms. Click that button to get information on customs and trade laws, decrees, directives and decisions.
Legislation and regulation of imports and exports

This guide was prepared by ALADI, the Latin American Integration Association.
Guide to Customs Tariffs

Learn More about Customs Learn More about Customs

Read Key Country Facts Read Key Country Facts

What You Need to Know about Exporting

Products of Colombia, a private company that provides this guide to all the procedures that need to follow to achieve success in exports. The guide covers topics such as customs declarations, shipping, freight, taxes, tariffs and currency exchanges.
Basic Guide to Exporting

Especially in the current economic climate, it is essential to have accurate, current and reliable information for the accountant or the person responsible for the finances of the company to make correct decisions in a highly competitive global market. This guide, published by COOMEVA Foundation, an institution created to promote business development for its members, provides information for your company to achieve advantages over competitors.
Guide to export in Colombia

Colombia ProExport created this competitive analysis to help determine the importance of exports. It provides all the information necessary for the development of exports and provides the appropriate framework to discuss questions such as the position of the company compared to others in the industry, the ability of flexibility with the need for change, and the speed of response to changes on the market.
Importance of export

ProExport developed this explanation of the elements needed for an export strategy. This tool helps ensure that the production process and products properly comply with the requirements of international market.
Strategic aspects of export

RGX, Global Network of Export, provides consultations on foreign trade statistics and information on international commodity prices. On this website you can access information on a wide range of commercial transactions applicable to your industry specific needs of your company and the type of merchandise you ship internationally.
The resources of this web site include:
RGX, Global Network of Export

RGX offers this service primarily intended for chambers, business associations and government agencies dedicated to the development and export promotion. You can access various development programs, training and more effectively you manage your business. At the end of the page you can through a form to request more information regarding these services.
Export Development Program

Field studies conducted with exporters in the region suggest that, increasing its business in foreign markets aggressively, it could substantially increase sales. Through the international promotion you can improve your company needed to know the actions you should take to make your negotiations. At the end of the page you can request more information regarding these services.
International Promotion

It is a service developed especially for companies with small sales approach targeted to small distributors, retailers or final consumers external medium sized companies wishing to conduct online platforms that allow them to integrate business and operational processes and add value to their customers.
Web Design Export Strategy

The commercial terms INCOTERMS are international language developed to facilitate trade, and defining the obligations of each party in order to minimize risks.
International Export Terminology

Colombia Products offers this complete guide to start exports. Includes items that need to master for this business process.
How to start an export

See this page of the Ministry of Commerce to get information on exports. Note that the questions on this page cover a wide range of topics, the questions related to exports start at number 24. Topics include finance, customs, documentation and fees.
FAQ on the development of international trade

The Information Center of Foreign Trade and Consultancy ZEIKY is a service of PROEXPORT of Colombia. Its purpose is to provide information, advice and training to entrepreneurs who are engaged in the export of products from Colombia. This page provides a description of the organization's services and links to contact information for local offices throughout Colombia.
Information and Counseling Center of Foreign Trade Zeiky

Fulfilling all Customs requirements and correctly completing all procedures can be especially difficult for small business owners or those who are exporting for the first time. If you find the process too difficult to manage on your own, contract a Customs broker who can guide you through the export process. This will help to ensure that you realise your foreign commerce transactions in the simplest and most correct manner.

DHL recommends that you do not seek a Customs broker on your own. Our personal advisors can analyse your shipping needs with you and put you in touch with a trustworthy broker who knows your industry and can provide the specific experience and services your business needs. With our extensive network of accredited, trustworthy brokers, we are in a position to find the broker best equipped to meet your company’s export needs. It is our pleasure to offer this service to our clients.

Colombian customs developed this guide with all the documentation necessary for developing an export strategy, including the official forms required to document an export agreement.
Colombian Customs Complete Guide to Export

The office in Colombia, known by the acronym DIAN, makes this information available to the exporting companies to provide services, procedures and forms. It also offers software that allows you to create Provide Certificates on any computer.
Forms for companies involved in international trade

This information was prepared by ENCOLOMBIA, which is responsible for classifying companies by sector, as a practical guide for export procedures. It also includes information on the different institutions responsible for processing the documentation in each of the phases of the export process.
Procedures for Export

What You Need to Know about Importing

According to CUODE (Classification by Economic Use or Destination), a statistical agency of Colombia, the volume of imports has grown annually to double between1996 and 2006. Although the rate of growth is not equal to exports, it is clear that imports have kept growing in recent years.

DHL has created this guide to help you learn more about the support available to them if they decide to consider business opportunities for import into the world economy. Expect not only to DHL international shipments, but also to help find future opportunities for international shipments.

This website of the Bank of the Republic of Colombia goes beyond a review of the documentation to explain how imports can be developed within a company. It also describes a series of programs designed to stimulate and encourage imports.
Why to Import?

BusinessCol , a company that closely follows the commercial trends of Colombia, provides a variety of materials that are of interest to anyone interested in the importation of goods or services. Includes market research and economic feasibility, among others.
Import Guide

Banco de Bogota offers a variety of credit lines designed to meet the needs of importers in the country.
Import Credit Letter of Banco de Bogota

El Banco Santander offers Standby Letters of Credit to finance imports.
Import Letters of Credit Banco Santander

Colombian Confederation of Chambers of Commerce

Colombia-Ecuador Chamber of Commerce

Colombia Mexico Chamber of Commerce

Colombian-American Chamber of Commerce

Colombian-British Chamber of Commerce

Colombian-German Chamber of Commerce

Colombia-Spain Chamber of Commerce

FUNDES: This network of international trade provides a variety of services, including the development of both sectors and industries in specific countries and internationally. Its members include Argentina, Bolivia, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Mexico, Panama and Venezuela.
FUNDES

For small and medium enterprises, it can be burdensome to sort through import regulations. The good news is that you don’t need the internal resources of a big company to be able to complete these import requirements. A Customs agent can guide you through the entire import process.

DHL recommends that you do not seek a Customs agent on your own. Our personal advisors can analyse your shipping needs with you and put you in touch with a trustworthy Customs broker who knows your industry and can provide the specific experience and services your business needs. With our years of experience with respect to Customs transactions, you can count on us to realise your transactions with your Customs broker. It is our pleasure to offer this service to our clients.

Please note: In some countries, the law requires you to contract a Customs broker to complete your import transactions. In others, the Customs service recommends that you contract a broker.

This government website provides information on procedures that can be performed online, including forms of export permits and certificates of origin, among others.
Procedures and services

The Ministry of Commerce has authority to determine what products can be exported, or imported and which not. You can check back to see how the government has classified your company, products and services, and if you could receive government approval to export or import.
Ministry of Commerce, Industry and Tourism of Colombia

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Find facts about key countries and understand requirements for working with international customers.