C H A P T E R 15 Processing the export order

15.1 Contract of affreightment: terms of delivery: Incoterms 2000 the stage and location the stage at which title to the merchandise passes from the exporter to the importer C B a clear definition of the charges and expenses to be borne by the exporter and importer delivery trade term’s elementsA

four contracts A the contract of carriage B the export sales contract C the insurance contract D the contract of finance

Incoterms 2000 Group E Departure from factory-all carriage paid by buyer EXW Ex-works (named place) Group F Main carriage unpaid by seller FCA Free carrier (named place) FAS Free alongside ship (named port of shipment) FOB Free on board (named port of shipment )

Group C Main carriage paid by seller CPT Carriage paid to( named place of destination) CIP Carriage and insurance paid to (named place of destination) CFR Cost and freight (named port of destination) CIF Cost, insurance and freight (named port of destination)

Group D Arrival- carriage to Delivered paid by the seller DAF Delivered at frontier (named place) DES Delivered ex-ship (named port of destination) DEQ Delivered ex-quay (named port of destination ) DDU Delivered duty unpaid (named place of destination ) DDP Delivered duty paid (named place of destination )

Inconterms 2000-Group Analysis Group E EXW Ex Works(…named place)- suitable for all modes of transport -buyer collects and responsible for all carriage, the seller to load the goods onto the buyers collection vehicle.

Group F FCA Free carrier(…named place)- suitable for all modes of transport-main carriage unpaid. FAS Free alongside ship(…named port of shipment)- suitable for maritime and inland waterway transport only- main carriage unpaid. FOB Free on board(…named port of shipment)- suitable for maritime and inland waterway transport only- main carriage unpaid.

Group C CPT Carriage paid to(… named place of destination)- suitable for all modes of transport-main carriage paid, the seller to provide the buyer,upon request, with the necessary information for procuring additional insurance. CIP Carriage and insurance paid to(…named place of destination)- suitable for all modes of transport-main carriage paid.

CFR Cost and freight(…named port of destination)- suitable for maritime and inland waterway transport only- main carriage paid. the seller to provide the buyer,upon request, with the necessary information for procuring additional insurance. CIF Cost, insurance and freight(…named port of destination)- suitable for maritime and inland waterway transport only- main carriage paid.

Group D DAF Delivered at frontier(…named place)- suitable for all modes of transport-delivered at frontier point. DDU Delivered duty unpaid(…named place of destination )- suitable for all modes of transport- delivered at named place of destination. DDP Delivered duty paid(…named place of destination )- suitable for all modes of transport- delivered at named place of destination.

DES Delivered ex ship(…named port of destination)- suitable for maritime and inland waterway transport only- delivered on board the vessel at the named port of destination. DEQ Delivered ex quay(…named port of destination )- suitable for maritime and inland waterway transport only- delivered on the named quay (wharf) at the specified port of destination, the buyer to pay for costs after discharge.

E Term-is the term in which the buyers obligation is at its maximum. F Term-requires the seller to deliver the goods for carriage as instructed by the buyer. C term- requires the seller to contract for carriage on usual terms at his own expense. D Term- requires the seller to be responsible for the arrival of the goods at the agreed place or point of destination at the border and within the country of import. The seller must bear all the risk in bringing the goods thereto.

15.2 Receipt of export order administration total costcash flow risk areas Insurance payment especial attention

15.3 Export documents required Bank  Custom er  Agent Commercial invoices -3- Certified invoices 312 Certificate of origin --- Bill of lading 2／22／2 2 copies - Certificate of shipment --- Customs clearance  Consulate - Total /4 ---

Bank  Custom er - Agent Insurance policy --- Insurance Certificate --- Weight and contract note 11- Bank draft statement 1-- Customs clearance  ConsulateTotal

15.4 Computerized export department The specifications for modules found in two areas of the computer network, namely export quotations and order processing.

Export software- Exportmaster Systems Ltd. Costings and price calculations Exportmaster Currencies Territories Customers Products Commissions Unit Loads Fob Charges Freight Costs Shipping Costs Database Price lists, offers and quotations Sales orders and order processing Packing, shipping and documentation Invoicing, banking and insurance Analysis and reporting market