To some export may seem like a four letter word.

However exporting is a very important aspect of economic growth throughout the world. In fact the United States international trade deficit in goods and services increased to $53.1 billion in June from $50.8 billion revised in May as exports decreased more than imports. With such an important role in the economy it is essential that companies strive to extend their reach to a global level. In 1995 the World Trade Organization was established to do just that encourage and liberalize international trade. This organization provides a common ground for agreements concerning tariff rates, export documentation, and trade facilitation. Working in conjunction with the World Trade Organization the World Customs Organization also oversees many aspects of international trade including commodity classification, valuation and rules of origin. Together these organizations come together to ask the most important questions when exporting Through the WCO an internationally recognized commodity classification system was established in 1988 the harmonized code system. Over 200 countries currently adhere to this system as it helps to answer one of the most important of the 5 Ws of export compliance

What is being imported? The simple fact is that there are import rules and regulations prescribed by every government for the protection of their citizens. Some commodities can have fairly relaxed regulations while others can require strict adherence to specific procedures for importation. Based on what exactly is being imported customs organizations work with a variety of government organizations to ensure the safety of their citizens as well as their own markets. Where are the goods coming from and where are they going? This is another important question of exporting as numerous free trade agreements have been enacted in order to allow free movement of goods between the agreeing countries. A certificate of origin provides customs with information concerning the origin of the product and the degree of that origination when considering the raw materials used to create that product.

Why are these goods being imported? The ultimate use of the goods being imported is essential to tariff determination. Most countries impose different tariff rates for goods being imported for personal use or being used for commercial purposes. Therefore, it is important to make this distinction when exporting. Who are the goods coming from and who are they going to? This question is key when considering import permits and licensing in both the country of origin as well as the destination country. Certain products under strict regulation require that the goods are coming from a government approved establishment within the country of origin as well as being delivered to one in the destination country. In accordance with the goods being shipped it is important to prepare all necessary information properly and follow detailed procedure closely to ensure smooth processing through customs and the necessary government organizations. When does the customer need the goods by? Unlike with domestic shipments the above questions must be taken into consideration when providing the customer with an estimated delivery date. Processing times through customs can vary depending on the good being imported however the provision of the required information in a clear and precise manner can ensure that this process is undergone quickly and efficiently.

In the end it is important to remember that while exporting may be complicated it is key to healthy economies worldwide. The export processes may seem daunting but we can rest assured that in spite of that, international trade IS possible and occurs every day. Considering the five Ws of export compliance is a start to increasing understanding of international trade policies and decreasing the complications that can arise during export.