Exporting to Asia

The Asian continent, located east of Europe and west of the Pacific Ocean, is the largest continent in the world in terms of land area. The majority of the world's population lives in this continent, which is home to more than 50 countries. The continent's underground resources are well-developed in terms of minerals, with one of the world's rarest minerals, uranium, being extracted from this continent. The most prominent countries in the continent's economy are China, Japan, and India, while many other smaller countries also play significant political and economic roles in the world. Exporting to Asia requires export companies to first become familiar with the major countries in the region, examine the products demanded by the Asian continent, and shape their marketing strategies accordingly.

China, the largest economy in Asia, is also the most populous country in the world. With a population of 1.4 billion, China is a leading country in global trade demands and is the most important country on the Asian continent. Together with India and Japan, it ranks among the top five largest economies in the world.

Japan is another Asian country that stands out economically despite being smaller than China. This island nation is the second most populous island country in the world. With a population of 126 million, Japan is considered a leading exporting country in many sectors in international trade due to its advanced industrial sector and technology. India, ranked fifth in the global economy, is another important country in Asia. With a population of 1.3 billion, it is the second most populous country in the world after China and is one of the world's important agricultural providers. In recent years, with its rapid economic development, it has surpassed China to become the fastest-growing country in the world.

It will be most beneficial for companies wishing to export to Asia to familiarize themselves with these major countries and make plans tailored to the target audience.

How to Export to Asia?

There are some important aspects that stand out in the foreign trade between Asian countries and Turkey. With a major share in global goods production, Asia sells many products to Turkey and buys many products from our country, which serves as an intermediary for trade due to its access to Europe. In the export share, the highlighted Asian countries include China, India, South Korea, Singapore, Thailand, Taiwan, Malaysia, and Indonesia. China stands out on the list of countries Turkey exports to, followed by Japan, India, South Korea, and Malaysia. In the context of globalization aimed at WTO targets, Asia, which increases its foreign trade with a country like Turkey that bridges many continents, has also established intense commercial relations in the last five years.

According to the total goods export distribution index, at the beginning of the last 20 years, Asia's share of world exports-imports was 21%, which has increased to 27.4% in the following five years. Companies wishing to export to Asia, which has a changing but lasting market, need to pay attention to the sectors divided among countries. As ODS Consulting, we assist you in understanding different markets and create roadmaps for your commercial activities in these markets.

What Are the Companies That Export to Asia?

The Asian continent, which hosts the global e-commerce giant China, has an incredible e-commerce network worldwide with other countries as well. Understanding the e-commerce structure, which is one of the cornerstones of foreign trade, and examining the behaviors of internet users in Asia is a good option for companies looking to sell products. After North America, Asia holds the largest e-commerce volume, with nearly 35% of the world's e-commerce share. Important changes in user behavior have also been observed during the 2020 pandemic period in the Asian continent. According to data obtained from research, e-commerce usage in Southeast Asia increased by 70%, setting an all-time record. It has been observed that habits have continued after the pandemic, and the foreign trade structure in these countries has strengthened.

The products sold and relevant sectors under import-export also vary. Leading the global imports are China and Japan, followed by Southeast Asian countries and North Asia. Exports generally include fish, marble, automobiles, fruits and vegetables, iron-steel, ship parts, and metal exports. Exporting companies are advised to conduct their commercial activities in line with these sectors.

What Documents Are Required to Export to Asia?

• All commercial activities are conducted under the companies' organizational structures except for exceptions in any part of the world. Therefore, you must establish a company before starting exports.
• You should read the customs policies of the relevant countries and prepare the customs documents. You can carry out micro-export by obtaining an ETGB (Electronic Trade Customs Declaration) within the framework of the universal micro-export application.
• You must prepare your origin proof documents for the relevant countries.
• If requested, you should complete the preparations for circulation documents and commercial invoices for the countries.
• You need to examine the foreign trade policies and check the standards and certifications of the country where you will sell products.
• If necessary, documents such as a bill of lading, receipt, and cargo delivery document need to be prepared.
• If required, registration with the trade chamber of the country where trade will take place should be done by applying to the relevant institutions.

What Are the Export Taxes to Asia?

Export taxes to Asia vary significantly between countries. Trade agreements made between countries provide customs advantages for countries within the Asian borders. Especially customs agreements greatly facilitate exports. When considering tax rates according to countries, the following countries stand out:
• China: The corporate tax rate is 25% for all companies. In some regions, this rate can be reduced to 15% with investor and incentive applications. Additionally, there is a standard 17% value-added tax.
• India: Different policies are followed in corporate taxes for domestic and foreign companies in India. Accordingly, domestic companies are taxed at 30%, while the rate for foreign companies is set at 40%. A gradual system is implemented for the standard VAT rate.
• Singapore: The corporate tax rate is applied at 17% in Singapore. Tax incentives are provided in the country based on payment methods.
• Vietnam: The corporate tax rate is fixed at 25% for all companies in Vietnam. Standard VAT rates vary between 0 and 10.

What Products Are Exported to Asia?

The source data is from the TIM data for 2021. The values are based on 1,000 dollars. The products exported from Turkey to China are as follows:
• Marble and travertine, eco stone, water marble, limestones = 612,164
• Iron ores and concentrates = 215,014
• Lead ores and concentrates = 194,903
• Chrome ores and concentrates = 191,008
• Refined copper and copper alloys (raw) = 164,806

The products exported from Turkey to Japan:
• Fish (fresh or chilled) = 59,829
• Ferro alloys = 39,013
• Pastas and couscous = 38,682
• Automobiles = 16,910
• Parts and accessories for motor vehicles = 13,220

The products exported from Turkey to Singapore:
• Construction iron = 398,873
• Oils from petroleum oils and bituminous minerals = 180,363
• Jewelry and parts (made from precious metals or metals coated with precious metals) = 31,541
• Gold (including gold-plated platinum) (unrefined or semi-refined or in powder form) = 31,284
• Silver (including gold or platinum-plated silver) (unrefined or semi-refined or in powder form) = 27,966

The products exported from Turkey to India:
• Marble and travertine, eco stone, water marble, limestones = 92,538
• Scrap iron, iron, or steel scraps or ingots obtained from their melting = 91,397
• Soybean oil and fractions (not chemically modified) = 73,665
• Apple, pear, and quince (fresh) = 67,743
• Parts and accessories for motors classified primarily under positions 84.07 or 84.08 = 30,029

What Is the Trade Volume Between Asia and Turkey?

The trade volume between Asia and Turkey has a value exceeding 50 billion dollars, along with key countries. Turkey also has a significant trade volume with other countries. Commercial activities with Central Asian countries are increasing every year, and it is believed that Turkey's agreements and trade arrangements with Asian countries will be favorable for our country.