Exports, Export Trade, Exporting Goods and Services

By: EconomyWatch   Date: 30 June 2010

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Exports of goods from one country to another involve the participation of customs authorities of both the countries. It also includes those countries through which the goods pass through. Exporting goods and services to other countries is a key part of a country’s economic development, focusing either on raw materials, finished goods or services based on available resources. Export trade helps to create more jobs and boost a country’s economic growth.

Export Trade: Dynamics

A firm exporting goods and services to other countries requires an exports license from the country’s licensing authority. In the US, Exports Administration Regulations (EAR) controls the export of goods. The goods or services to be exported are categorized into various sections across the countries, and the exporter needs to select the appropriate category for the item to be exported.

Exports across the globe are regulated. However, each country may follow different regulations. Exports are typically restricted to countries that are suspected of supporting or participating in terrorist activities. Some products have a global exports restriction.

Export trade uses air and water routes to ship the exported goods. Due to the growing popularity of the Internet, finding information relating to exports has become easier.

Exports: Tariffs and Duties

Tariffs or duties are taxes levied on the goods transported across the country of origin or other political boundary. These tariffs act as a trade barrier and are used for protecting a company’s economy.

The different types of tariffs are:

  • Ad valorem tariff: This tariff is a specific percentage of the value of a good being exported.


  • Specific tariff: This is the fixed tariff that does not change with the market value of a specific good.


  • Revenue tariff: The very purpose of this tariff is to raise money for the government that allows the business.

Many countries negotiated bilateral or multi-party Free Trade Agreements (FTAs) to reduce or eliminate tariffs or duties between them, for specific sectors or in all categories. Although this may reduce the immediate income generated by the government, it will increase total economic activity in all involved countries. Additional measures help, such as identifying and removing internal constraints like bureaucratic red tape and fiscal duties.

Export Trade: The Hotspots

In 2008, the World Trade Organization (WTO) indicated that Germany is the world’s largest exporter, followed by China and the US. Germany’s world class engineering sector comprises small and medium enterprises that operate throughout the world. About 40% of the country’s GDP comes from exports alone. Germany’s contribution to total global exports amounts to about 9.5%. One-fourth of the world’s total global exports are provided by the top three exporting countries. The top 10 exporting nations are:

  • Germany
  • China
  • US
  • Japan
  • France
  • Netherlands
  • Italy
  • UK
  • Belgium
  • Canada

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