Export Meaning: Definition, Benefits, and Prohibited Goods Along with International Trade Explanation

Kapanlagi.com - The word export itself is not unfamiliar to us. Yes, in general, people know that the meaning of export is an international trade activity. However, that's not all, KLovers. In fact, the meaning of export itself can be extensive.

Well, in addition to knowing the meaning of export, KLovers can also find out the benefits and goods that are prohibited in this export activity. In addition, there is also an explanation of international trade as one of the activities of export itself.

Therefore, according to various sources, here is the meaning of export along with its benefits and prohibited goods. Also, an explanation of international trade.

1. Explanation of Export Meaning

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What is the meaning of export? Well, export is an activity of releasing goods from the customs area. The customs area itself is an area owned by the Republic of Indonesia consisting of waters, land, and air within the Exclusive Economic Zone (EEZ). And the trading system by releasing goods from within the country to abroad by fulfilling applicable provisions can also be called export activity.

Export activity is generally carried out by a country that is able to produce large quantities of products and that quantity has been fulfilled domestically. Therefore, it can be concluded that an exporter activity is a legal entity or individual who carries out export activities. Each item to be exported has its own requirements depending on the type of item.

Not all individuals or communities are able to carry out export activities, KLovers. This is because there are several procedures that must be followed and quite strict. Although it is not impossible for ordinary people to do so. However, compared to import activities, export activities are much easier to do. Because import activities have many regulations that must be complied with, especially in terms of taxes.

Meanwhile, in export activities, only a few products are subject to export taxes, such as rattan, wood, and crude palm oil. So, KLovers must first know what export and import activities are. And from the explanation above, it can be concluded that export is an activity of releasing products and goods from within the country to abroad by following applicable standards and provisions.

2. Understanding International Trade

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Exporting is one of the activities in international trade. However, besides exporting, there are still many other types of international trade. But, what is the definition of international trade? International trade is not only carried out on behalf of a country, KLovers. Because international trade is a buying and selling transaction that can be done by an ordinary citizen, a company, a government institution, or a non-profit organization.

So, as long as both the seller and buyer come from different countries, the transaction can be classified as international trade. International trade is important for every country. Like any other trading transaction, the main purpose of international trade is to gain profit. Meanwhile, from the buyer's side, international trade is carried out to fulfill their needs.

In general, in international trade, we are familiar with the terms of export and import. Exporting is the activity of selling goods or services abroad. Conversely, importing is the activity of buying goods or services from abroad. Exporting and importing activities are examples of international trade activities. Because it involves two countries, international trade cannot be done arbitrarily. There are several things that must be considered.

These things can even be said to be determining factors for the success of international trade activities. The determining factors of international trade success include inflation, geographical conditions, free markets, government policies, and technology development gaps in the two countries.

3. Benefits of Export

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In addition to understanding the meaning of export, KLovers can also learn what the benefits of export are. Yes, the activity of export actually has many benefits, KLovers. And here are some of the benefits of export activities that KLovers can know and understand.

1. Growing Domestic Industry

The first benefit is growing domestic industry. The export activities of a country will give birth to other much larger industries. Increased export demand for a product will directly impact the development of industries in a country.

2. Creating More Job Opportunities

Export activities indirectly bring new job opportunities. In addition, export growth will create employment opportunities that lead to a reduction in poverty and a decrease in unemployment rates.

3. Controlling Product Prices

Then the next benefit of export is that it can control the price of a product. In fact, export activities are able to utilize overcapacity in a product. Thus, the country is considered able to control the export product prices that occur in the country.

4. Increasing Foreign Exchange Reserves

The value of the wealth that a country possesses in the form of foreign currency is called foreign exchange reserves. For the economic development of a country, export activities will have a positive impact. This is because export activities are useful for opening up new market opportunities abroad.

4. Prohibited Export Goods

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Now that you know everything, KLovers also need to know what goods are prohibited for export activities. Yes, not all goods can be easily exported, even some are strictly prohibited. Well, in the Minister of Trade Regulation No. 18 of 2021 concerning Prohibited Export Goods and Prohibited Import Goods, there are several prohibited goods including,

1. Prohibited export goods in the forestry sector.

2. Prohibited export goods in the agricultural sector.

3. Prohibited export goods for subsidized fertilizers.

4. Prohibited export goods in mining.

5. Prohibited export goods for cultural heritage.

6. Prohibited export goods for metal scraps and leftovers.

And goods that are prohibited from export must meet the following criteria:

1. Related to animal protection, health, fish, plants, human safety, and the environment.

2. Related to national security, national interests, public interests, including social, cultural, and moral interests of society.

3. Natural plants and wildlife.

That is the meaning of export that KLovers can know and understand. Not only about the meaning of export, but also the benefits and what goods cannot be exported.

(kpl/gen/dhm)