successful exporting

7/31/2019 Successful Exporting

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Process Of Successful

Exporting:

Terms , Documents and Procedures


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Our Objectives

Avoid the delays and over costing in deliveryour exports as agreed

Improve the participants knowledge andskills in export techniques and conditions

Analyze the different aspects of export

process Leverage costs and risks to conclude a

profitable business


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The Main Points:

Background 4 Main Terms of Trade transactions:

Delivery

PaymentShipping

Insurance

Export Documentation & procedures Conclusion


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1.BACKGROUND: Exporters must bear in mind:

It is not an easy business

The agreement with importer is just the beginning

Terms of a trade offer just the basis for save deal .

So.?

Other parties involved. So So many!!

Huge number of: Steps ..Documents .. Moves ..Risks

..Costs

Imagine How Complex is?


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Summary of Export Procedure


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2.DELIVERY TERMS

Reflects terms and conditions agreedupon between exporter and importer

Forms of agreements: Evidence for sale

International sales contract

INCOTERMS


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2.1. INCOTERMS

What ? International Commercial Terms (INCOTERMS)

Standard international legal instruments

Issued and revised by ICC

The most recent is INCOTERMS 2000 Classified into 4 main groups and 13 contracts

Why?

Avoid misinterpretation of sales conditions

Firmly determined Obligations and Responsibilities ofall parties

regard specific Risks and Costs

Ease and speed of disputes settlements


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4 Groups , 13 Contract 0f ( INCOTERMS 2000)

Stands forTERMGROUP

Ex WorksEXWEFree CarrierFCAF

Free Alongside ShipFAS

Free On BoardFOB

Cost and FreightCFRC

Cost, Insurance andFreight

CIF

Carriage Paid ToCPT

Carriage and Insurance

Paid ToCIP

Delivered At FrontierDAFDDelivered Ex ShipDES

Delivered Ex QuayDEQ

Delivered Duty UnpaidDDU

Delivered Duty PaidDDP


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How to choose the right contract

Barging power of the parties ( exporter and

importer) : The Strategy

Mode of transport

Accustomed trade practices


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Trade terms and Modes of transport

GROUP TERM Mode of Transportation

Land Ocean Air Multimodal

E EXW

FCA

FAS

F

FOB

CFR

CIF

CPT

C

CIP

GROUP TERM Land Ocean Air Multimodal

DAF

DES

DEQ

DDU

D

DDP


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Summary of Trade Contract Responsibilities of the Exporter and Importer

GROUP TERM Trade Contract Responsibility

1 2 3 4 5 6 7 8 9 10

E EXW

1 2 3 4 5 6 7 8 9 10 11

FCA

FAS

F

FOB

1 2 3 4 5 6 7 8 9 10 11

CFR

CIF

CPT

C

CIP

1 2 3 4 5 6 7 8 9 10 11

DAF

DES

DEQ

DDU

D

DDP

Seller is responsible

Buyer is responsible

see the definitions of 1 - 11


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1 11 are ;Activities

costs, levies.

ect:

Inland freight in Seller's country;Delivery to the carrier or frontier.

1

Customs clearance in Seller's country.2

Payment of customs charges andtaxes in Seller's country.3

Loading to the main carrier or meansof conveyance.

4

Main carriage/freight.5

Cargo (marine) insurance.6Unloading from the main carrier ormeans of conveyance.

7

Customs clearance in Buyer's country.8

Payment of customs duties and taxesin Buyer's country.9

Inland freight in Buyer's country.10

Other costs and risks in Buyer'scountry.

11


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2.2. Payment Terms

Seller and Buyer whishes to reduce

financial risk and get a good deal

It cover three areas:

Currency

Credit Terms

Methods of payments.


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Methods of Payment Specified in the

contract and shown in the invoice base on:

Available Finance option

Accustomed contract terms

Timescale ( need for money) Political situation

Foreign currency considerations

Terms of contract

seller & buyer R/S

Importer funding

Risks of :


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Documentary Credits

Provide a better method to obtain payments:

Secure payments to exporter

enable importer to receive goods as ordered

The usual form is irrevocable credit Set out details of goods: price, packing, origin &

destination, type of price( FOB, CFR,CIF) , .etc.

Allied with basic documents such as: Invoice, Bills of

Lading( Sea way Bill, Multimodal transport document,Airway bill,..), Insurance policy.

DC my be the type issued and revised by ICCC andsubject to UCP 600


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2.3. Shipping Terms

SHIPPING service of high quality and low

cost is a source of exporters advantages

Shipping vary according to:Type of commodity

Modes of transports

Means of shipping Freight vary widely according the above

items


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3. Export Documents &

Procedures Document:

Official and obligatory

Commercial

Additional and optional

Procedures:

Customs and release

Shipping: arrange for space booking Applications for documents


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At Least 4 documents required:

Invoices ( pro-forma and commercial)

Packing List

Shipping Document: B/L , Airway Bill,Consignment notes, etc

Certificate of origin

see the attached file for copy documents


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4. Conclusion

Export business need more than just agreementwith an importer Remember that you need to check for 4 types of

terms and conditions: delivery, payment,shipping and insurance

INCOTERMS reduces conflicts and avoidadditional costs

Good shipping save money and improve yourimage

DC is a guarantee for payments Prepare right documents and start o release

early facilitate trade


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