Chapter12.Exporting and Importing Procedures

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    Chapter 12. Exporting and Importing Procedures

    12.1 General Procedures of Export and Import Transaction

    12.2 Organizations Involved in Export and Import Transaction

    12.3 Specialists Involved in Export and Import Transaction

    12.4 Documents Needed in Export and Import Transaction

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    12.1 Procedures of Export and Import Transaction

    General Procedures of Export Transaction

    Preparation for Exporting

    Business Negotiation

    Implementation of Contract

    Settlement of Disputes

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    12.1.1 General Procedures of Export Transaction

    Preparation for Exporting

    Research on the countries or regions

    Research on the market

    Research on the customer

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    12.1.1 General Procedures of Export Transaction

    Business Negotiation

    Enquiry

    Offer and counter-offer

    Acceptance

    Conclusion of sales contract

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    12.1.1 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

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    12.1.1 General Procedures of Export Transaction

    (CIF Contract)

    Settlement of Disputes

    Conciliation

    Arbitration

    Litigation

    (cf: Fig.12-1 General Procedures of Export TransactionCIF, Letter

    of Credit, Sea Transportation, Commodity Inspection Stipulated)

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    Marketing and Promotion

    Market Research

    Credit Information

    Enquiry

    Offer

    Acceptance

    Contract

    Chartering,Space Booking

    Docks

    Customs Formalities

    Loading, Bill of Lading

    Documents Preparation for Bank Negotiation

    Settlement of Disputes (if any)

    Checking Name of Commodity,

    Specification, Quantity, Packing

    and Marking

    Good Preparation

    Preparation for Exporting

    Business Negotiation

    Performance of

    Contract

    Reply to Enquiry

    Counter-offer

    Reminding of L/C

    Examination and

    Amendment of L/C

    Insurance Company

    Insurance Policy

    Inspection Authority

    Inspection Application

    Certificate of Inspection

    Certificate of Inspection

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    12.1.2 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

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    12.1.2 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 users warehouse;

    To settle disputes (if any).

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    12.2 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 exporters country The road hauler(in some cases)in the exporters country

    The port authority

    The shipping company(or sea freight)

    The airline(or air freight)

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    12.2 Organizations Involved in Export and

    Import Transaction

    The insurance company or brokers

    The exporters bank

    The importers bank

    The railways(in some cases)in the importers country

    The road hauler(in some cases)in the importers country

    The shipping agent at the port or airport of discharge

    The importers

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    12.3 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 importers and exporters banks will be involved in

    arranging payments if a letter of credit or bill of exchange is

    used.

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    12.3 Specialist Involved in Export and

    Import Transaction

    Customs and Excise officers may need to examine the

    goods, check import or export licenses and charge dutyand/or VAT.

    A Chamber of Commerce may need to issue a certificate of

    origin, if this is required by the importers country.

    An insurance company insures goods in transit.

    A lawyer if a special contract has to be drawn up.

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    12.4 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