Mongolia is in east and central Asia, and it is more than six times as big as the UK. With only 3.1 million people, it is the least populated independent country in the world. Almost half of the people who live in Mongolia live in its capital, Ulaanbaatar.

State of economy

Mongolia has a Gross Domestic Product (GDP) of $11.03 billion. This means that it is a lower-middle-income country. Its economy depends a lot on how much it trades with China and how much commodities cost around the world. Over 79% of what Mongolia buys and sells goes directly to or from China. About 20.7% of the GDP comes from the mining industry. Minerals, like copper, coal, gold, silver, and uranium, make up about 70% of what Mongolia sells.

The entry point to other markets

It does not impose export taxes. Since there are no duties, China has been a ready market for many of its exports of minerals. If you have a Mongolian partner or are part of a joint venture, Mongolia can be a gateway to nearby markets. Mongolia and Japan have signed an Economic Partnership Agreement, which means that when 9,300 products are shipped from Mongolia to Japan, they don’t have to pay duties.

Direct sales and exports

A direct export is when you send your goods or services straight to the customer. You are in charge of marketing, selling, sending the goods overseas, and getting paid. Mongolia is a country that can do direct exports. But because of cultural differences, it’s best to use local representation, like an agent, distributor, or wholesaler who lives in the market and goes there often.

When exporting or importing, the following steps are taken to clear customs:

• Goods being declared.
• Customs documents are looked at.
• The goods and the means of transport are checked.

Guide to exporting in Mongolia

Before you can start exporting, you need to get registered as either a manufacturing business or a trading business. If you make things at home and don’t have any employees, you can register your business at your local ward office as a private firm. Then, go to the local office of the Inland Revenue Department to get a PAN and a VAT number. After that, you will need to get an EXIM code to become an exporter. The following is the guideline:

Find trade partners

First, choose the countries where you want to sell your goods. Use tools for market analysis to find promising markets and major export market guides to find sources of information that could help you find a good trade partner. You can also connect with international buyers and find out about upcoming events by going to trade fairs.

Finish the sales agreement

When you find a trade partner, you can start doing business with them. You will probably have to talk about the price, the amount, the date of delivery, the way you can pay, and the trade terms. Remember that after you sign the sales contract, you need to send the importer a Pro-forma Invoice and ask your trading partner to send you a purchase order.

Get a certificate of Origin

When you export goods, you will probably have to show a Certificate of Origin (CoO) in the countries where the goods are going. At the very least, it makes sense to get tax breaks when exporting. Certificates of origin are being given out by the Trade and Export Promotion Centre (TEPC).

Get money to pay for your exports

As an exporter, you need to open a bank account at any of Mongolia’s Categories ‘A’ commercial banks. Most likely, you will get paid either in advance or through a letter of credit. You will need to go to the Foreign Exchange Division of the commercial bank of your choice and tell them about your possible incoming payment. If you want to send money through a letter of credit, you will also need to send the documents required by the letter of credit. These documents will likely include:

• Freight bill.
• Origin certificate.
• Commercial invoice.
• Pro-forma Bill and list of what was sent.

Choose a transporter

To get your shipment from your factory to the Customs office of your choice, you will need to hire transporters. You can also ask a Freight forwarder to help you with this task.

Hire a customs agent

Customs agents help you get your goods through customs when they arrive at a customs building. Find a permanent customs agent to help you with all of your customs-related tasks. There are a lot of customs agent offices near customs offices, so you can choose the one that is closest to you.