Article

What Is Exporting?

Exporting is the sale and shipment of goods produced in one country to buyers in another. By exporting commodities, businesses can reach broader markets beyond their domestic customers, expanding their operations. An example of exporting is a U.S. company making gadgets and selling them to customers or clients in Canada. Exporting allows countries to bring in goods they either can’t produce or don’t naturally have access to. Consider a country like Canada that can’t grow bananas. They need to import them from China, India, or Latin American countries, where they’re mass produced for export.

Exported cars coming off of a cargo ship

What Are Some Key Exports in the U.S.?

While much of the United States focuses on importing goods for agriculture, technology, and textiles, exports are equally important to ensuring economic stability. In fact, exports provide 11 million jobs in the U.S..

Import vs. Export

Imports and exports differ by the direction goods are traveling across international borders. When a business imports products, they bring them in from a supplier in another country. In contrast, businesses export goods by acting as the supplier and sending them to one or more sellers in another country. When businesses import goods, they often take advantage of resources or lower production and acquisition costs in the exporting country, ultimately allowing them to better serve their domestic customers.

2025 Top U.S. Exports:

  • Mineral fuels (oil and gas)
  • Machinery
  • Electrical machinery
  • Vehicles and parts
  • Airctaft and aerospace products

 

Most Exports Went to:

  • Mexico
  • Canada
  • Switzerland
  • The United Kingdom
  • China

 

Top Exporting States in the U.S.:

  • Texas
  • New York
  • California
  • Louisiana
  • Illinois

 

Exporting vs. Importing

The difference between importing and exporting goods is simply a matter of the direction in which they’re headed. Imported goods are entering the country, while exported goods are leaving the country. Some businesses will focus their efforts on either importing or exporting their goods. However, import-export businesses serve customers on both sides by bringing goods into the country while also sending them out. When it comes to moving products through the supply chain, domestically or abroad, they go through several stages before reaching theirt destination. Continue reading to learn more about how exporting works.

Stages in the Supply Chain for Exports

  • Sourcing (procurement)
  • Manufacturing (production)
  • Delivery (logistics and distribution)
  • Returns (reverse logistics)

The main difference between the domestic and international export supply chains is the scale at which they operate. Your international supply chain will operate similarly to your domestic supply chain, but the complexity and scope will increase as it spans greater distances, requires more regulations and compliance, and introduces additional risks.

Product Identifiers and Barcodes Used for Exporting

Barcodes act as a universal language that enables consistent communication and tracking even as goods cross international borders, reducing errors and operating costs. When exporting products, it’s essential to understand which barcodes you need to use for your products and pallets.

  • A barcode that holds a 13-digit GTIN® (Global Trade Item Number®) used by brands and retailers and is accepted worldwide.
  • EAN-8 (European Article Number): A barcode that holds an 8-digit GTIN to be used (to be used on smaller packaging).
  • UPC-A (Universal Product Code): A barcode that holds a 12-digit GTIN used by brands and retailers in North America. It is accepted worldwide.
  • SSCC (Serial Shipping Container Code): An 18-digit identifier assigned to cases or pallets packaged together. It is globally accepted.

EAN vs. UPC

It’s essential that businesses that plan to sell products understand how to properly mark their goods for domestic or international sale. Understanding when to use an EAN or a UPC depends on where your products will be sold. In the U.S. and Canada, a UPC-A is the barcode at a point-of-sale (POS). However, an EAN is needed to sell items across most of the world, including Asia, Australia, Europe, and South America. Both are globally accepted at point-of-sale (POS) for retailers around the world. Here’s a brief breakdown of the differences between an EAN and a UPC.

  • EAN (European Article Number): A 13-digit GTIN used by retailers across much of the world. An EAN can be used as either an EAN-13 or EAN-8. An EAN-13 is a full code, while an EAN-8 encodes a GTIN-8 and is used for smaller packaging.
  • UPC-A or UPC (Universal Product Code): A barcode that uses a 12-digit code, typically referred to as a UPC, used in most of North America instead of the EAN.

While EAN and UPC provide access to a significant amount of useful product information, they’re limited to encoding 12 or 13 digits worth of information. Neither can hold web addresses, raw data, or contact information like a 2D barcode can. Some items that will need to be assigned EAN or UPC include but are not limited to:

  • Food and beverage items
  • Helath and beauty products
  • Electronics like phones, computers, TVs, and accessories
  • Cleaning supplies and other tools
  • Books and magazines
  • Automotive parts and electrical components that are sold at retail
Graphic highlighting 13 digit EAN vs 12 digit UPC

SSCC

An SSCC is a Serial Shipping Container Code that acts as a logistics unit and is encoded into a GS1-128 barcode. It is also known as an SSCC-18. It’s an 18-digit identifier assigned to cases and pallets packaged together. The SSCC is used by all parties in the supply chain to identify and track shipments. Retailers can use the SSCC to identify that they’re receiving the right goods and quantities when they need them. Furthermore, government agencies use SSCCs to monitor compliance in the food and pharmaceutical industries

Assigning an SSCC to cases and pallets shipped internationally is required by many retailers and logistics partners to help monitor via Electronic Data Interchange (EDI) and Advanced Shipping Notice (ASN) systems. Effective tracking with an SSCC also helps reduce costs and increase efficiency and order accuracy with shipping, receiving, distribution, invoicing, and returns.

GS1 Logistics Label showing SSCC

How To Get an SSCC Code?

To get started, you can leverage an existing GS1 Company Prefix that you have already used to create UPC barcodes. If you have only licensed single GS1 US® GTINs, you will need to license a GS1 Company Prefix to meet SSCC requirements. Be sure to visit our list of GS1 Standards Professional Barcode Image and Print Vendors to help you generate the SSCC in a GS1-128 barcode. Also, be sure to check out more information on the GS1-128 barcode.

warehouse working checking inventory for exporting compliance

Export Preparation and Compliance Considerations

Exporting comes with significant regulations, including licensing, screening, and taxes. Any business that’s planning to export goods needs to implement an Export Compliance Program (ECP) to manage compliance, perform risk assessment, and classify products.

To ensure compliance with international trade laws, select goods, software, and technology must be assigned a five-digit ECCN (Export Control Classification Number) to determine if they fall under the Export Administration Regulations (EAR) or International Traffic in Arms Regulations (ITAR), which classify dual-use items based on their technical characteristics and potential for misuse. The Commerce Control List (CCL) provides information regarding products that may fall under ECCN requirements.

In addition to classifying exported products, it’s essential to perform a Restricted Party Screening (RPS). U.S. businesses are forbidden from working with sanctioned entities. Violations can result in heavy fines, loss of export privileges, and even prison time.

Finally, currency exchange rates should be considered. These changes can often have a significant impact on how invoices are paid and should be considered when negotiating with supply chain partners.

Duties and tariffs are often used interchangeably, but they’re not always the same. Duties include customs fees, excise duties, processing fees, and tariffs. Duties are taxes used to bring in revenue or regulate trade paid to the country where you’re exporting commodities, and will increase your operating costs. Unless you choose to absorb the cost, it will be passed on to customers by raising your product prices.

As part of imposed duties, governments can enact either widespread or specific tariffs on goods exported from the U.S., which may affect what you export and where you export it. Depending on the country, agriculture, energy, and vehicles may be subject to tariffs. As of early 2026, these are some of the countries with tariffs on U.S. exports:

  • China imposes widespread tariffs on U.S. goods.
  • Canada imposes 25% tariffs on aluminum, steel, and automotive products. 
  • The EU imposes 15% tariffs on many U.S. products. 
  • India and Brazil impose tariffs up to 50% on certain U.S. products. 
  • Mexico imposes varying tariffs, including 25% on most goods and 10% for energy and potash. 

Customs declarations are documents used to provide details about goods crossing international borders. A declaration lists the contents of a package or pallet, its value, the country of origin, and quantity to help assess duties, control trade, and ensure legal compliance while regulating the flow of goods and preventing illegal items from crossing borders. According to cbp.gov, some items subject to customs declarations include food and agricultural products, alcohol, tobacco, currency exceeding $10,000 USD, and pharmaceuticals. Failure to declare goods at customs can result in seizure, civil penalties, and even criminal charges. For example, food and plant violations can result in fines up to $10,000, while failing to declare over $10,000 USD can result in fines exceeding $500,000 USD and prison time.

Customs officials require documentation with a Certificate of Origin and Harmonized System (HS) Codes to determine proper duties. A Certificate of Origin is an official international trade document that certifies that the goods in a shipment were produced, manufactured, or processed in a specific country. Customs officials will use this to verify the origin of goods, determine duties, and apply trade agreements. Goods that have been “substantially transformed” are considered to have a Certificate of Origin in the U.S.. Think a transmission manufactured in Mexico and tires made in Japan are put on a truck assembled in the U.S., then exported to Canada.

HS Codes are 6- to 10-digit numerical codes used by customs officials to classify traded products, determine duty rates, and manage import/export regulations. In addition to ensuring compliance with trade regulations, HS Codes can help governments and other organizations gather economic data for analysis. Products shipped without an HS Code may face significant shipment delays, customs holds, or even return to the sender.

There are plenty of things to consider when working with foreign currencies. Exchange rates can change by the day. Even if day-to-day changes aren’t significant, they could impact how much your company gets paid months or years in the future. Especially when dealing with larger transactions. Putting hedging mechanisms in place, like forward contracts, allows you to lock in exchange rates for future payments, protecting your revenue from future economic uncertainty.

Pricing your products can also be a problem in international markets. Sharing pricing information with international sellers in domestic currency reduces risk. However, pricing with foreign currency increases market competitiveness.

Another consideration is banking and currency conversion fees. It’s not uncommon to pay a 1% fee or more to convert one currency to another. Additionally, banks and card issuers may include international transaction fees and wire transfer fees. While fees are often levied at a small percentage, they can quickly add up and reduce profit margins.

Proper documentation is required to avoid shipping delays and fines. Documents required for export include:

  • Proforma invoice: A non-binding bill of sale sent by sellers before shipment and delivery outlining the items, costs, and terms of a transaction. The invoice has no legal value; it’s simply a detailed quote or estimate for goods or services.
  • Commercial invoice: A legal document for international shipping that serves as the primary declaration for customs to determine duties and cargo compliance. Acts as a bill of sale between buyer and seller, detailing goods, their value, and origin.  
  • Packing list: A detailed document listing specific contents, weight, and dimensions of each package, box, or pallet in a shipment. An itemized inventory for customs officials, freight forwarders, and buyers to verify, inspect, and handle cargo. 
  • Bill of lading: A contract between the shipper and carrier for the receipt of goods. 
  • Electronic Export Information (EEI): Information filed through the Automated Export System (AES) for shipments exceeding certain value thresholds or requiring a license. 
  • Export license/declaration: An authorization from the government for specific goods and a declaration for tracking purposes. 
Trucks at a loading station picking up exports to transport

Supply Chain Planning for Exporting Success

As with anything in life, success with your export supply chain requires planning. If it’s your first time exporting products, you’ll need to build relationships with supply chain partners and establish processes to effectively and efficiently transport goods across international borders. To plan exports, forecast international sales. Will your profit margins make exporting goods worth it? If so, then start creating a production schedule guided by the forecast. During production, start optimizing your logistics by establishing partnerships with shipping companies. Include considerations like the most effective shipping routes to reduce costs. Will it be better to go with long, slow routes that are cheaper? Or will you benefit more from faster shipping that ensures timely delivery? Consider how logistics will impact balancing inventory levels across multiple countries.

An essential part of export planning is customs compliance. Speak with a lawyer before exporting to ensure compliance with legal, tax, and regulatory standards. This will ensure that proper licensing and other procedures are satisfied, helping you avoid penalties and other issues that can delay production, delivery, and sales.


GS1 Standards for Planning and Execution

GS1 Standards make it easy to identify, capture, and share data across the supply chain. By implementing GS1 Standards across your supply chain, you can enhance efficiency, reduce errors, and ensure reliable traceability while complying with global standards. You and your supply chain partners can communicate effectively using the same language, streamlining exports from end to end and reducing delays with customs officials.


Demand Forecasting

Demand forecasting predicts future demand for products and services based on historical data. Making predictions using robust data ensures that you know when to export and how to create efficient shipping routes so that you can effectively send inventory on time. Optimize your inventory management to ensure on-time delivery and develop improved production and delivery plans. By opening your business to international markets, you’re going to unlock more than 95% of the world’s population, which creates seemingly endless opportunities for growth and eliminates dependency on a single market. Some other benefits exporting brings to your business are:

  • Increased sales and profits
  • Increased competitiveness
  • Market diversification
  • Product lifestyle extension
  • Improved business value

Part of exporting is choosing an effective entry method. How do you want your customers to have access to your products? Direct exporting allows you to sell to importers or customers without intermediaries. This eliminates the middleman, making it easier to ensure products get where they’re supposed to be when they’re supposed to be there. Indirect exporting uses export management companies (EMCs) or export trading companies (ETCs), which take care of logistics and sales so you don’t have to worry about it. Selling on a licensing or franchising basis allows a foreign company to pay a fee to sell your product. Creating a joint venture involves partnering with a local firm to help establish your brand in the area.


Risk Management

There’s risk in nearly every aspect of running a business, so risk management analysis is essential to reducing losses and disruptions. Assessing export risks makes it easier to plan for unexpected circumstances or events that can affect exports. Possible events that can affect exports might include:

  • Exchange rate fluctuations: Exchange rates directly impact revenue. As exchange rates change, you might see income streams fluctuate outside normal ranges.
     
  • Tariffs: If a country increases tariffs on imported goods, it could raise the price of your products at the POS for customers.

  • Political instability: Geopolitical tensions can sometimes make it difficult to export goods to serve customers in other countries. Keep tabs on what’s happening around the world to prepare for possible disruptions.

  • Consumer preferences: Trends change over time, which can change your customers’ buying habits.

  • Logistical reliability: Talk to your logistics partners to learn about the contingencies they have in place in case of breakdowns, driver shortages, or other issues that could arise during the transport of your products.

How Can GS1 Help?

Request more information from our knowledgeable team to learn how GS1 Standards can help your business grow through exports.