Exporting and Importing Procedures Chapter 21 Exporting and Importing Procedures

Procedures of Export and Import Transaction General Procedures of Export Transaction：  Preparation for Exporting  Business Negotiation  Implementation of Contract  Settlement of Disputes

General Procedures of Export Transaction Preparation for Exporting • Research on the countries or regions • Research on the market • Research on the customer

General Procedures of Export Transaction  Business Negotiation • Enquiry • Offer and counter-offer • Acceptance • Conclusion of sales contract

General Procedures of Export Transaction (CIF Contract)  Implementation of Contract • Preparing goods for shipment • Inspection application • Reminding, examining and modifying L/C • Chartering and booking shipping space • Customs formality • Insurance • Documents preparation for bank negotiation

General Procedures of Export Transaction (CIF Contract)  Settlement of Disputes • Conciliation • Arbitration • Litigation

General Procedures of Import Transaction • To conduct market investigation; • To formulate import plan for a certain commodity; • To send inquiries to the prospective sellers overseas; • To compare and analyze the offers or quotations received; • To make counter-offers and decide on which offer is most beneficial; • To sign a purchase contract; • To apply to a bank for opening a letter of credit

General Procedures of Import Transaction • To book shipping space or charter a carrying vessel for taking over the cargoes, if the contact is in terms of FOB; • To effect insurance with the insurance company upon receipt of shipping advice; • To apply for inspection if necessary; • To attend to customs formalities to clear the goods through the customs; • To entrust forwarding agents with all the transport arrangements from the port to the end user’s warehouse; • To settle disputes (if any).

Organizations Involved in Export and Import Transaction The exporters The shipping agents at the port or airport of loading The railways(in some cases)in the exporter’s country The road hauler(in some cases)in the exporter’s country The port authority The shipping company(or sea freight) The airline(or air freight)

Organizations Involved in Export and Import Transaction The insurance company or brokers The exporter’s bank The importer’s bank The railways(in some cases)in the importer’s country The road hauler(in some cases)in the importer’s country The shipping agent at the port or airport of discharge The importers

Specialist Involved in Export and Import Transaction A shipping agent and/or freight forwarder (forwarding agent) will take responsibility for the documentation and arrange for the goods to be shipping by air, sea, rail or road. Airlines, shipping lines, railway companies or haulage contractors will actually transport the goods. Both the importer’s and exporter’s banks will be involved in arranging payments if a letter of credit or bill of exchange is used.

Specialist Involved in Export and Import Transaction Customs and Excise officers may need to examine the goods, check import or export licenses and charge duty and/or VAT. A Chamber of Commerce may need to issue a certificate of origin, if this is required by the importer’s country. An insurance company insures goods in transit. A lawyer if a special contract has to be drawn up.

Documents needed in export and import transaction Bill of Lading Commercial Invoice Packing List Weight Memo Certificate of Inspection Certificate of Origin Insurance Policy(certificate) Sales Contract