The Definition of importing is that it is an essential process of international trade, where goods and services are brought in from producing  countries for sale and utilization in other countries in need, and the word ‘import’ is derived from the word ‘port’ since the goods were shipped by ship to for foreign countries.    

In that article we demonstrates the definition of importing trade to ease  your forward readings …

The importance of imports

 

 The importance of importing is:

1. Increased employment opportunities
2. Improving the level of markets 
3. Improving the economy 

The Benefits of importing 

To Definition of importing  many advantages and benefits, perhaps the most important of which is :- 

• “Increase profit for the importer” as higher taxes, costs and minimum wages in some countries make imports an easier way to increase profit, by bringing goods from countries with much lower costs, fees and wages.
• “Quality efficiency”  some countries are characterized by the availability and production of some products of better quality, making imports an important process for the provision of high quality goods and services.
• “Facilitating government-assisted trade” in many countries’ governments have an effective role to play it in managing trade between domestic producers and importers, making the government provide additional support and benefits to importers, including Tax cuts and customer assistance.
• “Contributing to the knowledge of new products that are invading the market” The import process has helped to open up to other countries and learn new products they were not familiar with before.
• Leadership in a particular industry by importing products from competitors makes you the first importer for this product , which make you lead especially if this product is unique over time   

 

     Import defects 

As for importing advantages, it also has defects, the most important of which are:-

• Reliance on consumption rather than production, which is usually considered to be poor indicates that the importing country is heavily consumed, resulting in a decline in its economy.
• The impact on the country’s economy and the currency’s price, by increasing the demand for foreign currency.

Importing vs Exporting

Import and export are complementary processes, representing international trade financial transactions. “Import” is a means of bringing goods and services from the producing country for sale and use in other countries. Export is the process of selling products from one country to another, and is carried out in accordance with regulations and laws that support import by consuming countries and export by exporting countries.

Export is of great importance in that it is an important source of income for countries by opening new markets for their services and products, and the process of ‘export’ depends heavily on the ‘shipping’ industry, with each product having its own export method.

Import And Export Types

‘Import and export two types :- ‘ is either directly or indirectly “

Direct Import 

in which the importer the importer within one country buys the goods from the source or from a specialized brokerage company located outside the country and imports them directly without the need for a simple trading company located within the imported country 

This type of import requires, the following:-

• The ability to communicate with importers in the country of origin in terms of language and culture.
• Full market knowledge and offers available.
• A specialized department is required within the company to import and employ the necessary competencies(Transfer – contracts, etc.) and requires warehouses for the importing company within the country of origin as well as a procurement department.
• Sometimes it may require warehouses for the imported company within the country as a procurement department.
• It requires a large capital compared to indirect imports.

 Indirect Import

• In indirect import the importer buys the goods or services through an intermediary company located within the importing country, This type of import is characterized by a lack of risk resulting from the import process during purchase and transport and the verification of the quality of the goods prior to purchase, in which the price of the goods is more expensive than direct imports.In addition, reliance on the company is a good solution when companies import a large amount of different goods, helping to reduce the cost of transportation and obtain cheap prices for imported goods.

 

Direct Export

The exporter transfers the goods directly out of the country, all without the need for an intermediary.

This type of Export requires, the following:-

•  The ability to communicate directly with the client, whether linguistically, culturally or technically.
• Focus on the main objective of market knowledge in the country of import, and provide the necessary means to stay informed on the market situation.
• Ensure that after-sales services are provided if necessary, in order to maintain the company’s name in the markets of the import countries.
• Company warehouses must be located in the country of import.

Indirect Export

• Indirect Export The exporter is assisted by a foreign trade distribution or brokerage company located within the country of origin to transport goods out of the country.

 

Mandarin orange, which fall under the group of citrus fruits, it’s characterized by its small size, flat shape in addition to its smooth cover, and amount of seeds that vary from one type to other mandarin orange is usually sweeter than orange.

The benefits of mandarin orange to the human body vary, as it enhances immune, digestive and heart health, helps improve cognitive functions, and reduces the risk of diabetes.

Types of Mandarin OrangeTYPES OF MANDARIN FRUIT

Types Of Mandarin fruit

Mandarin Orange from the citrus fruit group, its have a very short growing season so they are in great demand when they are available Therefore, “EG Gate”company provides the product of various types for export outside Egypt, here are some of tangerines :-

1. Murcott Orange
2. Tangerine Orange 
3. Clementine 
4. Tangelo
5. Cara cara orange
6. Blood orange 
7. Bitter orange 
8. Bergamot orange 
9. Lima orange
10. Heirloom navel orange
11. Madrine Orange

 

Egyption mandarin orange

previously we mentioned that Egypt is unique in growing many agricultural crops and exporting them to most countries of the world, especially citrus. Oranges, mandarin orange, and tangerines comes at the top of consumption among citrus species, specially When we  transition from winter to spring, a time when the chafing March winds start to concede their fury and sunshine begins to stick around, we think about citrus Here’s what we found out about Tangerines we will clarify the types of mandarin orange grown in Egypt and exported to most countries of the world throughout “EG Gate” company.

The mandarin orange which “EG Gate” Exports

“EG Gate” Company Famous by Importing and exporting agricultural products Especially mandarin orange, Here are the types provided by our company and we are more than willing to export These are the following:-

1. Murcott Orange
2. Tangerine Orange 
3. Clementine 

 

Clementine Mandarin One Of Our Exports

Clementines are also a kind of mandarin are a small sweet and seedless variety of tangerines. The skin that covers the inner fruit is thinner than what you will find with regular tangerines. Clementines are known for their sweet tasting juice Clementines are less acidic than your grocery store-variety oranges,and our company “EG Gate” Export clementine mandrine .

 

Murcott mandarin fruit

Murcott mandarin fruit  are medium-sized, round and slightly flattened at both ends. They are about 5 centimeters in diameter and have a golden orange skin with subtle pebbling.

 The rind is thin and fragrant and clings to the flesh, making them moderately easy to peel. The pulp is bright orange and juicy with a rich, sweet flavor. Murcott tangerines can be seedless or may have up to a dozen small seeds.

 Until recently, they were marketed under the name ‘Honey’ in Florida, which caused confusion, as there is a California tangerine hybrid of the same name. Most Florida sellers currently use the name ‘Murcott Honey’ to distinguish the two. The Murcott is one of the most widely grown late Florida mandarin varieties.

 Murcott  keep at room temperature for up to a week and up to two weeks when refrigerated ,and our company “EG Gate” Export Murcott mandrine .

Packing in EG Gate station

EG Gate announced its readiness to contract to export Egyptian oranges of all kinds with high quality and the best competitive prices especially in large quantities and different types, we  Declares our readiness to export mandarin orange of various kinds as well and in the following quantities:- 

Size :- all sizes are available

Packing :- Telescope and Open top Carton and plastic box.

Gross weight 16 and Net weight 15

Gross weight 8 and Net weight 7.

In the framework of Egypt’s role in the cultivation and production of citrus fruits worldwide, especially oranges of the types of ‘Baladi orange and Valencia orange‘, because of the availability of the necessary conditions for their cultivation, which is the fertile soil and the right atmosphere, in addition to the availability of water.

Egyptian Baladi orange

 

  total annual production About 3.8 million tons, 1.2 million tons of which are exported,  Egypt’s citrus exports in 2019 rose to 1.555 million and 633 tons to all world markets, according to the Report of the Central Agricultural Quarantine Administration on Agricultural Exports.

Orange exports reached $353 million in the first quarter of 2018, according to the Report of the Central Authority for Public Mobilization and Statistics, and the “Baladi” a large share in that value, which is one of the most diverse agricultural crops.

It is worth mentioning that the orange export season from Egypt starts in October each year, and the date of the start of export is set in coordination between the Export Council and the Ministry of Agriculture, in addition to Egypt is developing a plan to expand the export of oranges.

 

 “Baladi ” as an export for “EG Gate” 

 

EG Gate” Company Famous by Importing and exporting agricultural products Especially Baladi orange Both types Seeds $ Seedless.

Packing in EG Gate station

 

EG Gate announced its readiness to contract to export Egyptian oranges of all kinds with high quality and the best competitive prices especially in large quantities and different types, we  Declares our readiness to export of various Baladi  kinds as well and in the following quantities:- 

• Size :- all sizes are available
• Packing :- Telescope and Open top Carton and plastic box.
• Gross weight 16 and Net weight 15
• Gross weight 8 and Net weight 7.

  

 

 

 

 

Oranges are a popular citrus fruit in winter, and are one the most important source rich vitamins, minerals and nutrients,  with Egypation orange varieties between Baladi orange and Valencia orange.

In that article we list some facts about our industry for ‘Valencia’ ….

A large scale spherical ‘Valencia Orange, with a smooth surface  and thick peel, with an average diameter of 2.7 to 3 inches (69 to 76 mm; 6.9 to 7.6 cm), and a piece of this fruit weighs about 96 grams, has 45 calories and 9 grams of sugar, and December is the harvest season for this The type of orange in Egypt.

“Valencia” are also an essential source of juice, a good source of vitamin C and fiber as well as containing antioxidants that help boost immunity.

Valencia orange  as an export for “EG Gate” 

 

“EG Gate” Company is Famous for Importing and exporting agricultural products Especially “Valencia” , which is considered one of the juices best choice at summer times.

 

 

Indeed, distance and borders are disappearing so that the countries of the world stand by each other to meet their needs… Only globalization can link the east to the west , so that the world will prevail in openness and cooperation, as the greatest evidence of this is the import and export of the world’s various food goods and products, especially the citrus import.

Citrus is the most widely used agricultural product worldwide, ranking 224th among the most traded products and 1070th among the most complex products according to the Product Complexity Index (PCI), resulting in a significant increased production and consumption of citrus fruits. Since 1980, the annual production of citrus fruits exceeds 70 million tonnes, with oranges occupying more than half of the production, according to the United Nations Conference on Trade and Development.

On the other hand citrus fruit production in the EUROPEAN Union reach 11 million ton in 2018, and revenues reached $12 billion, representing total revenues of both producers and importers, and citrus production continues to be relatively stable with a marked increase compared to previous years.

Spain tops global export market:

Spain remains the largest supplier of citrus fruits in the EU, accounting for 69% of total exports ($3.5 billion), while the Netherlands ranked second in the rankings with a share of $354 million, equivalent to 7 of total exports, followed by Germany with 5.3.

In the same vein, the price of citrus exports for 2018 in the EUROPEAN Union was $1,046 per tonne, with the export price increasing from 2007 to 2018 at an average annual rate of 1.3%.

As a difference, there were significant differences in average export prices among major export countries, with Germany receiving the highest export price ($1,245 per tonne), while Greece was among the lowest ($557 per tonne).

‘Egypt’ First Arab In The Export Of Oranges:

On the Arab side… Egypt ranks first in the Arab world in the export of citrus fruits, especially oranges, and second in the world with a peak of 1.14 million tons, after Spain, which ranks first with an export value of 1.6 million tons,  On the egyptian side, Russia ranks first among egyptian product imports with 21%, followed by Saudi Arabia with 20%, the UAE in third place with 7%, followed by the Netherlands with 5%, and England in the last place of the Egyptian orange importing countries with 4%. 

In the term of the global import market for 2018, France (1.2 million ton) the UK ranked in second place (602.000 ton), followed by Italy (369.000ton) and poland (357.000 ton). While the country receives a small share of total imports , Romania (269,000 tons), Portugal (183,000 tonnes), Sweden (160,000 tons), the Czech Republic (145,000 tons) and Belgium (141,000 tons) occupied.

The price of citrus imports still indicates a fixed pattern set by the European Union in 2018, which amounted to $933 per ton, but there were differences in import prices among major importing countries, Belgium received the highest price ($1,135 per tonne), while Romania had the lowest price of $745 per ton.

The favorable weather increase crop production, and in the past 8years oranges have been grown over large areas, as the result of its high consumption among countries of the world, where Egypt is the largest orange exporter (1,600 tons), followed by South Africa with a quota (1,230 tons), and then America got  Third place with a share (465 tons) and Turkey (350 tons).

Which Turkey specialized in cultivation of Mandrine with the highest standards of international quality, which made it to the top of the list of exporting countries with a share  (710 ton) followed by china in the second place with an annual export rate of (700 ton) Morocco also exports 595 tonnes and South Africa (285 tonnes) from Mandarin.

 Grapefruit was exported by South Africa (250 tonnes), followed by China with 230 tonnes, while Turkey exports 160 tonnes of grapefruit, followed by America with (56 tonnes).

With regard to lemons, Mexico ranked first in its export with (765 tonnes), followed by Turkey with (575 tonnes), South Africa with( 240 tonnes), and Argentina allocating (200 tonnes) of its share of its lemon production for export abroad.

5 steps to import citrus fruits successfully.

There are some basics that make it easier for you to import…..

• Country 

You should follow some of  criteria before you choose the country you import from, first you have to know import regulations assigned to that country, the commodity you need may be cheap to buy, but there are other factors that may increase its cost, and you should specify some information about goods that you need, such as If that item is subject to certain restrictions or restricted entry due to its origin in a restricted country.

• Supplier 

Which is the most important step that determines the success of receiving your shipment specially if you are anew importer , there are government agencies dedicated and ready to answer your questions, you can consult some trade and professional associations, or join international and local exhibitions, to know a large number of suppliers and then Choose what suits you among them, and once you contact an external supplier it is best to have an interview with them in their own country. 

• Fees and taxes

Import duties vary from product to product, depending on the item being imported, their declared value and country of origin, but in general import duties are calculated as a percentage of the declared value of the commodity, import duties can be as low as zero or up to 100. The declared value of the product.

• Freight forwarder 

You should find a documented shipping agent by providing daily updates from the moment you order with your shipping to receive your shipment in your hands.

• Freight 

Don’t wait for your cargo to be shipped at the last minute, it costs you a lot of money, in case of early shipment you may only pay for inventory, and keep in mind that there may be delays due to the failure to sail the ship on time, if you choose to ship your goods.

Trade Exchange can be defined as exchange of products between countries without the use of money, it is a simulation of a barter system. These products can be goods or services that are traded in international markets.

Trade exchange can be classified into main categories as follows:

•  “Bilateral trading” that takes place between two countries only 
• “Multilateral Trading” that take place between many countries 
•  “Regional Trading” that occurs between neighboring states. 
•  “ Domestic Trading” takes place between places that have surplus to others that have a shortage in the same product.
• “ International Trading” that takes place between different countries.

Benefits of  trade exchange

Trade exchange has many fruitful benefits that includes:

• “Reallocation of resources” which means the goods are redistributed according to where it is needed the most & will drive the best value from it, this facilitates commercial & economical operations.

 

• Exchanging makes all parties more satisfied.
• Exchanging trade reinforces economic & political relations among states.
• it works on developing & supporting the economy of the company as well as increasing the per capita income.
• it  controls the prices of the exchanged goods & minimize its fluctuations.
• it has a key target of reducing the unemployment between its nations.
• it facilitates projects funding.
• Trade exchange is utilized to fix cases of inflation & recession. 
• Trade exchange is considered as an indicator that measures the economic activity of a given country.

relation with international trade:- 

Trade was established by the inception & developing of human till it becomes a vital process in his life as exchanging goods & services between two or more parties.

 There is a direct relation between trade exchange & international trade, as the later has a crucial role in providing markets on a larger scale for exchanging goods & services due to three main reasons:

1. Diversification of resources allocation: 

what a country has a surplus in the other country may have a shortage in that same product, the thing that facilitates exchanging among them.

• Quality difference:

Due to the difference in facilities of manufacturing between countries; this stems in superiority of some countries over others so trade exchange take place to move these Superiorities to others in need places. 

• Different costs of production:

Countries tends to import goods & services from others that have lower production costs.

Foundations of trade exchange

Each country has a diversified needs than others which results in diversified demands of goods & services; so the global market has expanded to suit the needs of all countries, the foundations of the trade exchange may be divided into two main types:

1- The Abundancy & Scarcity of commodities:

Every country has different needs based on different requirements that may be divided into:

• Goods that the country produces on a large scale that cause a surplus which directs it to exporting, e.g. Egypt that exports onions, cotton & rice as it regarded from the first countries that export these products.
• Goods that a country produces in small quantities which directs it to importing the quantities that will compensate the shortage. E.g. Egypt imports wheat & meat to meet the needs of its market
• Goods that the country can’t afford due to the absence of its raw materials so the country tends to import these materials. E.g. Egypt import coffee, tea & tobacco.
• Goods that are produced in equilibrium with the domestic consumption & in that case that good don’t participate in the international trade.

2- International specialization:

There are some factors that complement each other to pursue the international specialization which divides into:

• Climate 

Climate conditions are considered a privilege in a country that is absent in another one. For instance, hot countries are famous for the production of bananas, spices & rubber while the temperate regions are famous for wheat & barley.Here comes the importance of trade and exchange to meet the shortage of both

• Diversification of natural endowments:

Where nature grants each country endowments that are unique to it, we may find agricultural crop production abundant in Canada, Australia, Egypt and America due to the presence of fertile soil for them, as the Gulf countries like Saudi Arabia and Kuwait are famous for producing oil and exporting it to the countries of the world.

 

‘International trade’…. The backbone of strong economic systems

 

In the context of international trade is one of the most important economic factors between countries because of the diverse goods it provides to consumers, and raising the standard of living, in addition to providing many opportunities for employment, the importance of international trade is its main role that strengthens the benefit of countries with each other.

 

International trade has also evolved as a result of geographical expansion, so that the world is in great need of it; Therefore, the importance of international trade for societies and nations could be reflected on the following points:-

 

• It is the most exploitable means of state resources and compensation for the underdevelopment in other countries.
• Helps provide many ‘specialty’ goods and services that provide each at lower prices.
• Stimulate countries to increase their production of goods.
• The rise and growth of the international economy due to the excellence of each country in producing certain commodities known for it and exporting it to other countries .
• Its creates many new markets, supporting marketing capability 
• Countries help build strong economic system, as well as promote economic development which contribute to the easy development  of countries 
• It increases the well-being of communities by providing many services and goods that allow consumer and investors to choose 
• Help to take the advantages abundant raw material  both for exporting and importing countries.
• They are important factors that help measure the capabilities of countries in both ‘competition, production in global markets, and product marketing’.
• It facilitated cultural and cultural exchange between countries and strengthened diplomatic relations as a result of making deals and agreements through import and export.    

 

Services Of International Trade

“Tourism And Travel” The Most Important Services Traded In International Trade  

International trading in services has grown significantly recently, as trading in goods were of greater prevalence till it reached approximately, the triple of services, that is due to its intangible nature in contrary to goods.

That intangible nature of services makes it undergo more restrictions, that’s because It is non-transferable so  requires physical proximity between service providers and customers, unlike international trade in goods which is tangible, storable, transportable and consumable in any place at any time.

Further, some services are provided by the public sector or it may be obliged by national legislation which may restrict its trading across borders. Also, the need of the buyer & seller to be face to face limits its proliferation. 

Despite all this, the progress in communications technology allowed more services to be traded, the most important among them are “Travel Services, Transportation Services, Business Services, Financial Services and Insurance, Communications and Computing Services, Intellectual Property Services, Professional and Administrative consulting Services, and Technical Services”.

 

Impact of international trade 

International trade & developing countries

The international trade is of great impact on the economical growth & and fulfilling basic humanitarian needs as it has a vital role in the progress of the developing countries, thus helping to reduce poverty & creating opportunities for emerging countries to participate in larger markets around the globe.

The best example is its help to Brazil, a strong agricultural sector, expand the world’s largest markets, making it the largest source of both soybean and beef around the world.

International trade provided the chance for the developing countries to be part of international production networks and supply chains, as the European firms use them for certain functions, such as ‘data processing and customer service” in which communication technology has facilitated the transfer of service functions from industrialized countries to less industrialized ones.

 

 

With the aid of Globalization, the concept of international finance grew. It fundamentally addresses the issues of monetary interactions among world’s countries. These issues may include currencies exchange rates, global monetary systems, foreign direct investments(FDI) and other important issues involved in international financial management.

On another side, it avails perceiving & maintaining balance of all international organizations fundamentals though no mutual change between them, International finance is considered one of the most vital economical instruments of international trade growth & staving it off from continuous economic fluctuations.

in particular, when concept of lending & borrowing has extended between countries as it may formulate modern secure ways to funding trade which facilitate goods & services circulation among them.

“Banking transfers” is perceived as one of the funding channels that is adopted by states to invest among themselves. It depends on prepayments made by countries with a commitment to pay the balance within the predetermined time interval by the “documentary collection” which the exporter’s bank provides to guarantee the full payment of all financial receivables of the foreign countries.

International finance importance

 

As the international finance plays an effective role in the international trade & exchanging of goods & services, that importance relates to some reasons as follows: –

• International finance is a key indicator to find the exchange rates & identifying the relative values of currencies besides comparing inflation rates for reconciling & eliminating debt securities.
• International finance maintains monetary system equilibrium that ensures peace between nations; otherwise, they will work for their self-interests regardless of others’.
• International finance is constantly reviewing global markets; as the economic factors aid in identifying whether the investors’ money is secured with the foreign debt securities.
• International finance organizations as international monetary fund IMF & world bank are the intermediaries that manage the international financial conflicts.

The parties involved in international trade are:

• Commercial funding corporations
• Insurance companies

• Banks

• Export credit agencies and service providers.

Exporter & importer cycle

The international finance is the third party in the completion of transactions between importer & exporter as it to an extent eliminates the payment risk for both, It also secures the international trade from the risk of currency fluctuations & political instability, It may identify the International currency exchange rates under the broadened lending & borrowing concepts among countries.

Instruments of international finance in international trade consists of: –

1. Banks Issue credit lines to aid both, importer & exporter.
2. Banks use “insurance” for freight & delivery of goods, & so guarantee the exporter’s accounts receivables.
3. The importer bank offers a letter of credit to the exporter bank stating payment when certain documents are provided, as it ensures for the exporter that the importer will commit to payment. In case of acceptance on the conditions listed in the letter; both parties should commit with it to complete the selling process between them.

International finance fences international trade from risks

•  International finance is a cornerstone on which importers & exporters depend to ensure the payment of their accounts receivables & evading risks that may arise from both.
• Consequently, the letter of credit is considered a tool that secures both parties as it guarantees the importer payment to the exporter once the issuing bank receives the proof that the later shipped the goods – as “bill of lading” and the terms of the agreement have been met.
• In the same vein, the buyer’s bank assumes the responsibility of paying the seller. The buyer’s bank would have to ensure the buyer was financially viable enough to honor the transaction. Trade finance helps both importers and exporters build trust in dealing with each other and thus facilitating trade.
• In the business sector, Trade finance allows companies to increase their revenue through trade by the help from private or governmental trade finance agencies; which facilitates getting new business with the aid of the creative financial solutions that trade finance provides.
• And at the other end of the spectrum, the international finance is a supervisor for the companies that lags their payment or may follow up a major customer or supplier that losing him may have some extended consequences. Also, it may avoid companies’ financial risks by providing credit facilities & accounts receivables.