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Third Country Export/Import

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Third Country Export/Import

This scenario describes the processes involved in exporting goods from your country to an independent country (third country) where no trade agreement exists between your country and the importer. In this case, you are responsible for compliance with the export laws of your own country.

REASONS FOR EXPORTING GOODS

Three primary reasons for exporting goods include:

  • Increase profit
  • Consistency in sales profits
  • Extension of the product cycle
CONSISTENCY IN SALES

Peaks and valleys in the business cycle are inevitable. When the economy of one country is on an economic downturn, the economy in other nations may be in a relatively prosperous phase. If you have customers in countries other than your own, your business profits tend to become more consistent from year to year.

PRODUCT CYCLE EXTENSION

When you export your product, the end of the product cycle is postponed. When the market in your own country is saturated, exporting allows you to introduce your product into other countries.

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