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Export Procedure & Practice

This document discusses export procedures and international trade documentation. It covers topics like incoterms, methods of payment, transport methods, common documents, and customs requirements. Incoterms define responsibilities for costs and risk of loss. Common payment methods include cash in advance, open account, letters of credit, and bills of exchange. Typical transport methods are road, rail, air, and sea. Required documents include commercial documents like invoices, packing lists, transport documents, and official forms like certificates of origin. Customs processes differ between exporting from the UK and importing to other countries.

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yacine ouchia
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99 views18 pages

Export Procedure & Practice

This document discusses export procedures and international trade documentation. It covers topics like incoterms, methods of payment, transport methods, common documents, and customs requirements. Incoterms define responsibilities for costs and risk of loss. Common payment methods include cash in advance, open account, letters of credit, and bills of exchange. Typical transport methods are road, rail, air, and sea. Required documents include commercial documents like invoices, packing lists, transport documents, and official forms like certificates of origin. Customs processes differ between exporting from the UK and importing to other countries.

Uploaded by

yacine ouchia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CERTIFICATION & INTERNATIONAL

TRADE PROCEDURES

EXPORT PROCEDURES AND


PRACTICE

Day 2 Slides 2007/version1 1


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

INTRODUCTION TO EXPORT RULES,


TERMS & DOCUMENTATION

F Incoterms
F Methods of Payment
F Methods of Transport
F Documents
F HM Revenue & Customs (HMRC)

Day 2 Slides 2007/version1 2


F Incoterms
– Every international sales contract should
include an Incoterm.
– There are 13 Incoterms.
– Define:-
u who arranges pays for what
u where risk passes

Day 2 Slides 2007/version1 3


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F The Thirteen
Incoterms:- – CIP (Carriage & Ins Paid
– EXW (Ex works) To)

– FCA (Free Carrier) – DAF (Delivered at


Frontier)
– FAS (Free Alongside
Ship)
– DES (Delivered Ex Ship)
– FOB (Free on Board) – DEQ (Delivered Ex Quay)
– CFR (Cost and Freight) – DDU (Delivered Duty
Unpaid)
– CIF (Cost, Ins and – DDP (Delivered Duty
Freight)
Paid
– CPT (Carriage Paid To)
Day 2 Slides 2007/version1 4
CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Methods of Payment

– Cash in Advance
– Open Account
– Bills of Exchange
– Letter of Credit

Day 2 Slides 2007/version1 5


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Cash in Advance

– You receive the money in advance.


– You then forward Customer goods.

Day 2 Slides 2007/version1 6


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Open Account

– You forward goods to Customer


– He pays in on receipt of goods
30/60/90/180 days

Day 2 Slides 2007/version1 7


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Bills of Exchange

– A “you owe me note”


– Sent to Customers Bank with export
documentation through banking system.
– Customer pays or accepts the Bill of
Exchange then gets goods.
– Can be at sight or 30/60/90/180 days.

Day 2 Slides 2007/version1 8


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES
F Letter of Credit
– Customer opens L/C through his Bank.
– L/C lists
u description of goods
u documents required

u how they should be made out

u amount of money to be paid

u latest shipment date

u latest date documents can be presented

– Original L/C passed to Seller through


banking system.

Day 2 Slides 2007/version1 9


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Letter of Credit

– Provided Seller presents documents in


conformity with Letter of Credit he will be
paid.
– Letters of Credit often request Certificates
of Origin.

Day 2 Slides 2007/version1 10


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Methods of Transport
u Road
u Rail

u Air

u Sea

u A Combination (Multi Modal)

– Each form of transportation has its own


special transport document.

Day 2 Slides 2007/version1 11


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Documentation
– Commercial Documents
– Transport Documents
– Official Documents

Day 2 Slides 2007/version1 12


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Commercial Documents
– Pro-Forma Invoice
– Invoice
– Packing List
– Weight Note

Day 2 Slides 2007/version1 13


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Transport
Documents: – Dangerous Goods
– CMR Note Note
– Bill of Lading – Export Cargo
Shipping
– Airway Bill
Instruction
– CIM Note
– Insurance
– Certificate of Certificate
Shipment
– Standard Shipping
Note

Day 2 Slides 2007/version1 14


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Official Documents
– Certificate of Origin
– C88 or SAD Customs document
– Consular Invoice
– Legalised Invoice
– EUR1 or ATR Movement Certificate

Day 2 Slides 2007/version1 15


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F HM Revenue & Customs (HMRC)

– Rules governing export from UK

F Overseas Customs Authorities

– Rules governing import at overseas


destination.

Day 2 Slides 2007/version1 16


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Export from UK
– For movement to other EU destinations, no
documents needed for customs unless
goods are restricted.
– Intrastat Return required monthly if EU
exports exceed £260K per annum.
– For movement to third countries C88 or
SAD document required.

Day 2 Slides 2007/version1 17


CERTIFICATION & INTERNATIONAL
TRADE PROCEDURES

F Import at Overseas Destination


– Different requirement for :-
u different countries
u different products

– Documentation will be required to show any


mandatory statement.
– Check Tates/Croners.

Day 2 Slides 2007/version1 18

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