Contents
What is export?
Export is the process of selling goods or services outside the country. Additionally, export also refers to the transfer of rights to intellectual property results abroad. It is an important part of international trade, allowing countries to expand their economic horizons and develop foreign economic ties.
Export regulation
State regulation of export is carried out through customs legislation, which establishes specific rules for the export of goods and the conclusion of contracts with foreign clients. In Russia, the key regulatory acts are Federal Law No. 164-FZ and the Customs Code of the Eurasian Economic Union (EAEU), which covers countries such as Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan. Although there is no customs control between these states, the export of goods from Russia to these countries is considered export.
Moreover, the state may temporarily restrict the export of certain goods or services. For example, in March 2022, Decree No. 311 was issued, which restricted the sale of certain products in most countries, including inert gases and pharmaceuticals.
Why is export necessary?
For business
- Entering new markets. Export allows companies to expand their customer base, especially when the domestic market is saturated.
- Diversification of risks. Operating in multiple markets reduces dependence on the economic situation in one country.
- Increased production. Export fosters demand growth, which in turn increases production volumes and reduces costs.
- Strengthening the brand. Successful companies operating at an international level are perceived as reliable suppliers.
- Access to financing. International successes enhance attractiveness to foreign investors.
For the state
- Source of foreign currency inflow. Export increases the inflow of foreign currency and helps stabilize the economy.
- Strengthening international influence. Economic ties through export contribute to strengthening the country's position on the international stage.
- Improvement of technological level. Participation in international trade encourages investment in technology and education.
Types of export
Under Russian legislation, exported goods are divided into raw materials and non-raw materials.
Raw material export
Includes the sale of natural resources such as oil, gas, metals, coal, and agricultural products. Although raw material export generates significant revenue, it also makes the economy vulnerable to price fluctuations in international markets.
Non-raw material export
Represents the sale of goods and services created by humans, such as electronics, pharmaceuticals, IT services, and much more. This type of export contributes to the competitiveness of countries and the development of domestic industry. For example, South Korea, lacking natural resources, has achieved stable economic growth through active non-raw material export.