The main difference between import and export is that import is when a company in one country buys goods from another country so that it can sell them in its own market. On the other hand, exporting means that a company sells goods made in its own country to people in other countries.

Trade is the part of business that deals with selling, giving away, or exchanging goods and services in exchange for money. It also helps get goods to the person who will buy them. Internal trade and international trade are the two types of trade. Internal trade is when goods are bought and sold within a country’s borders. It includes both wholesale and retail trade.

External trade, on the other hand, is when goods are traded between different countries. It includes import, export and intraport.

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Table of Contents

Import vs. Export

Comparison Chart

BASIS FOR COMPARISON	IMPORT	EXPORT
Meaning	Importing is when a company buys goods from another country in order to sell them in its own country.	When a company sends goods and services to other countries to sell, this is called export.
Objective	To meet the demand for goods that can’t be found in the country of origin.	To increase its market share or presence around the world.
Represents	A high level of imports shows that domestic demand is strong.	A trade surplus can be seen in a high level of exports.

Definition of Import

Importation is a type of international trade in which goods or services from another country are brought into the home country so that they can be sold in the home market. For the goods to be imported, the following steps must be taken:

Trade Enquiry: The process of importing starts with a trade inquiry to find out how many countries and companies export the product needed. The importing company needs to get all of this information from trade directories, trade associations, etc. After getting the information it needs, the company that is importing talks to the companies that are exporting to find out about their prices and delivery times.
Obtaining an import license: Some goods need a license to be brought into the country, while others do not. So, the person who wants to import must know how the Export-Import Policy works in order to know if the goods they want to bring in need an import license or not. If it is needed, the importer must do everything that needs to be done to get it.
Procurement of foreign exchange: The exporter lives in a different country, so the importer has to get foreign currency to pay for the goods. The exporter will want to be paid in the currency of the country where he or she lives.

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Placement of order: The importer tells the exporter to send the goods by putting in an order. The import order has information about the price, quality, quantity, color, grade, etc. of the goods that are to be sent.
Acquiring a letter of credit: After the importer and exporter agree on payment terms, the importer must get a letter of credit from its bank. This shows that the importer is serious about meeting its obligations.
Arranging funds: Before the goods get to the port, the person who wants to buy them needs to get the money together.
Receipt of shipment advice: Once the goods are on the ship, the exporter sends the shipment advice, which has all the details about the shipment, like the invoice number, name of the ship, number of the bill of lading, port of export, and a description of the goods sent.
Retirement of import documents: After the goods are shipped, the exporter makes important documents that are required by the contract and gives them to the banker so that the money can be transferred in the way that is written in the letter of credit.
Arrival of goods: Based on the terms of the contract, the exporter sends the goods. The person in charge of the ship tells the person in charge at the dock that the goods have arrived and gives them an import general manifest.
Customs clearance and release: Once the goods get to India, they have to go through customs clearance, which is a long process that involves a lot of legal steps.

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Definition of Export

Export is a type of trade in which goods made in one country are sent to another country at the request of a buyer in that country. Here are the steps that were taken to send the goods to another country:

Enquiry and Sending Quotations Receipt: The person who might buy the goods sends an inquiry to several exporting companies and asks for quotes that include the price, amount, quality, and terms and conditions. In return, the exporters send pro forma invoices with information about the items, such as their size, weight, quality, color, grade, method of delivery, type of packaging, payment, etc.
Order receipt: Once the buyer agrees to the exporter’s price, quantity, terms, and conditions, he or she puts in an order for the goods to be shipped. This is called an “indent.”
Determination of the creditworthiness of the importer: After getting the order, the exporter checks to see how reliable the buyer is (the importer). This is done to find out how likely it is that the importer won’t pay once the goods reach their destination. So, the exporter asks the importer for a letter of credit to make sure the importer is a real person.
Obtaining a license: Since the goods are subject to customs laws, the exporter has to follow certain legal procedures. For example, the exporting organization must have an export license before it can move forward.
Preshipment finance: After getting the license to export, the exporter goes to a bank or other financial institution to get pre-shipment financing so that production can continue.
Production of goods: Once the exporter gets the money from the bank, he or she can start making the goods based on what the importer wants.
Preshipment inspection: To ensure that only top-notch products leave the country, the goods must go through the proper checks.
Obtaining a certificate of origin: Importer countries give tariff breaks or other exemptions to goods from exporter countries. For the exporter to get these benefits, the exporter must send the importer a certificate of origin. It makes sure that the goods come from that country.
Shipping space reservation: The exporter talks to the shipping company to reserve space on a ship for the goods that need to be sent. In order to do this, the company exporting the goods has to say what they are, when they will be shipped, where they are going, etc.
Packing and Forwarding: After all the legal paperwork is done and a shipping space is reserved, the goods are carefully packed and all the details are written down, such as the gross and net weight, the name and address of the importer, the country where the goods came from, and so on. After that, the exporting company does everything that needs to be done to get the goods to the port.
Insurance of Goods: The exporter has the goods insured with a company so that he or she is protected against the risk of loss or damage while the goods are in transit.
Before putting the goods on the ship, customs clearance is necessary.
Obtaining a mate’s receipt: When the goods are put on the ship, the ship captain gives the port superintendent a mate’s receipt.
Payment of freight: The Clearing and Forwarding (C&F) Agent hands over the mate’s receipt to the shipping company that is figuring out the freight. After getting it, the company gives the shipping company a bill of lading, which proves that the shipping company has the goods to take to the destination.
Preparation of Invoice: Once the goods have been sent to their destination, an invoice is made that lists the number of goods and the amount owed by the importer.
Securing Payment: Lastly, the exporter tells the importer that goods are being shipped. Next, the importer needs certain documents, such as a bill of lading, an invoice, an insurance policy, a letter of credit, a certificate of origin, etc., when the goods arrive and clear customs in order to claim ownership of them.

The company that is exporting sends these documents to the company that is importing with the banker and tells the banker to only give them to the importing company when the bill of exchange is accepted.

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Differences Between Import and Export

The following are important differences between import and export:
As the word “import” suggests, this is the process of bringing goods from another country into the home country so that they can be sold again on the home market. On the other hand, exporting means sending goods from the home country to a foreign country so that they can be sold there.
The main reason why goods are brought in from another country is to meet demand for something that isn’t available in the home country or is in short supply. On the other hand, the main reason for sending goods to another country is to reach more markets around the world.
When imports are high, it means that domestic demand is strong, which means that the economy is growing. On the other hand, a high level of exports means that there is a trade surplus, which is good for the economy as a whole.

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Conclusion

Importing and exporting goods and services can be done in two main ways. In direct exporting or importing, the company contacts the overseas buyers or suppliers directly and takes care of all the legal paperwork for shipping and financing.

But when firms do indirect exporting or importing, they don’t do much of the work themselves. Instead, intermediaries do all the work. This means that when firms do indirect exporting or importing, they don’t deal directly with overseas customers or suppliers.

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