Direct Export
Sell goods from your home entity directly to overseas buyers
Definition
The company sells from its home entity as exporter, contracting with overseas importers without setting up a local entity.
Suited for
- First test of an overseas market
- Standardised industrial and consumer goods
- Early stage with irregular orders
Common legal structures
- Home-country exporter
- Overseas importer of record
Preparation
- Confirm HS codes
- Check import licences, certification and labelling in the target country
- Agree Incoterms and payment terms
Limitations
- Limited access to end customers
- Importer eligibility usually sits with the buyer
Tax notes
- Import duties and import VAT/GST typically fall on the importer depending on Incoterms
- Watch for permanent establishment risk if staff work locally for long periods
Key risks
- FX and collection risk
- Clearance delays from origin or certification non-compliance
- Export control and sanctions compliance
Steps
- 1Select market and product
- 2Check market access and certification
- 3Find and vet importers
- 4Sign contract and payment terms
- 5Arrange logistics and customs
- 6Collect payment and after-sales