Export Logistics Notes

8/20/2019 Export Logistics Notes

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http://www.fao.org/docrep/w5973e/w5973e0g.htm

Exporting and importing are two sides of the same coin; both supply customers with productsmanufactured outside the country. Exports now account for over 15% of global GN and aregrowing at an annual compound rate in excess of 1!%. Export mar"eting re#uires a "nowledgeof the target mar"et$ a mar"eting mix decision$ planning$ organisation and control andinformation systems. Exporting is often an incremental process$ from unsolicited order filling todeliberate export planning. No doubt few firms will export unless profit and growth opportunitiesare expected. heories of trade stress the basis as &comparative advantage&$ but in practice thisis of little use. he most significant factors affecting trade are &firm& not &product& characteristics.'cGuiness and (ittle )1*+1,1found two firm characteristics &restrained from exporting& and &hightechnology& as opposed to product characteristics had an overwhelming influence on thedecision.

-hilst exporting and importing are$ this is not the way governments loo" at it when ma"ingpolicy. imply$ policy can be construed as two/faced. 0ften$ every effort is made to improve andencourage exports whilst every effort is made to curb imports. he combination of policymeasures can have an offsetting effect. Government$ however$ see"s to support export activitiesin three ways by applying lower rates of tax to earnings from exporting or refunds; outrightsubsidies or assistance li"e information giving. 'any 2frican countries have incentives li"eexport retention schemes and revolving schemes to aid potential exporters.

Chapter Objectives

he ob3ectives of this chapter are

• o give an understanding of the complexity involved in managing global mar"eting logistics

• o describe the terms of access$ trade and the different types of export documentation

re#uired in global mar"eting and

• o show the importance of ensuring that export documentation is in order and legal recourse

of any defaulting in global transactions.

Structure Of The Chapter

his chapter is very detailed$ necessarily so$ given the nature of the sub3ect matter covered. hevarious terms of access are described$ including tariffs and duties$ and the non/tariff barrierswhich can be #uite effective in reducing the normal terms of trade. he chapter goes on todiscuss international contracts$ the special terms of trade )40$ 674 etc., and other important

export documents. hese include commercial documents li"e invoices$ certificates of origin$ andtransport documents. he chapter concludes by loo"ing at financial$ insurance and transportdocumentation and the legal ramifications of any defaulting in international transactions. Notethat all cases #uoted in this chapter were sourced from 8welepeta )1**1, 9.

Complexity

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Exporting and importing re#uires an enormous amount of thought and attention to detail$especially documentation. 7f documents are missing or wrongly filled out then the transaction willbe void. 6onsider the following example of the exportation of horticultural produce from 8enya.

Case 12.1 Kenya Horticultural Prouce !xport

7n organising for export$ the exporter needs to be within reach of and must have an office with telephone$fax or telex since the exporter is dealing with a highly perishable commodity and decisions have to madefast with no time lag. he documentation re#uired is as follows

1. a 6ertificate of 7ncorporation from the :egistrar of 6ompanies9. a miscellaneous occupational (icence )Export, from the 'inistry of 6ommerce. export (icence from ?,@. a ban" account5. written contracts with farmers for supply of produceA. have ade#uate "nowledge on the #uality standards for horticultural produce.

"lo# of ocuments in export of horticultural Prouce by $ir

2 shipper is re#uired to submit the following documents to facilitate the processing of exports

a, 2 duly complete invoiceb, 6= form )from 6entral an" of 8enya, available from commercial ban"s,c, 2ppendix


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E C 4rom customs$ agent sends documents to 8enya 2ir freight


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iv, 6ompound or mixed duties / hese duties provide for specific plus ad valorem rates to belevied on the same articles.

v, 2ntidumping duties / 2pplied if in3ury occurs to domestic producers. hese are specialadditional import charges designed to cover the difference between the export price and the&normal& price$ which usually refers to the price paid by customers in the exporting countries.

vi, 6ountervailing duties / 2dditional duties levied to offset subsidies granted in the exportingcountry.

Other import char%es& hese include variable import charges$ temporary import surchargesand compensatory import taxes

i, ariable import charges / 6an be used to raise imported product prices to the domestic pricelevel.

ii, emporary import surcharges / Bsed as a local industry protection measure and in response

to balance of payments deficits.

iii, 6ompensating import taxes / 7n theory these taxes correspond with various internal taxes$such as value added taxes and sales taxes. 2ccording to G2 such &border tax ad3ustmentsmust not amount to additional protection for domestic producers or to a subsidy for exports&.his can lead to great ine#uities.

(on tariff barriers

Non tariff barriers are measures$ public or private$ that cause internationally traded goods andservices to be allocated in such a way as to reduce potential real world income )the attainablelevel when resources are allocated in the most economically efficient manner,. hey virtually

prevent sales in a foreign mar"et.

i, Fuotas and trade control / pecific limits and controls$ and once the #uota is filled the pricemechanism is not allowed to operate. ome countries$ for example imbabwe$ operate statetrading.

ii, =iscriminatory government and private procurement policies / &uy ritish& policies aimed atrestricting foreign supply.

iii, elective monetary controls and discriminatory exchange rate policies / 2ct distortively onimport duties and export subsidies. ome countries re#uire an import deposit$ thus in effectraising the price of foreign goods.

iv, :estrictive administrative and technical regulations / 7nclude antidumping$ siHe regulations$safety and health. he EB$ for example has very strict hygiene measures for imports ofhorticultural products.

Tariff classification


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efore -orld -ar 77 specific duties were widely used and the tariffs of many countries were verycomplex. ariff administration has been made more simple by the russels Nomenclature)N,$ wor"ed out by an international committee of experts under the sponsorship of the6ustoms 6ooperation 6ouncil$ which in 1*55 produced a convention that entered into force in1*5*. hese rules now apply to most G2 countries.

he N groups articles mainly according to the materials from which they are made. -ithmany new products appearing the tas" of classifying becomes more difficult. Exporters shouldsee" the most favourable classification for their products to minimise the duty levied. ometimesproducts can be reclassified to get an advantageous rate. =ifficulties of classification raiseserious #uestions about the accuracy of data in international trade patterns. 7n using data ontrade$ the numbers may often reflect hasty and arbitrary classification which distorts the truepicture of the trade flows. his often explains the discrepancies in import and export figures ofthe same commodity between two countries.

)nternational trae

he export transaction is founded on a contract of international sale of goods with the specialcharacteristic that it is entwined with other contracts$ a thing that differentiates the internationalsale from the local sale. hese connected contracts are the contract of carriage by sea or airunder which goods are exported and the contract of insurance by which the goods are insured.7n many export transactions$ delivery of the shipping documents amounts to performance of thecontract of sale. hese shipping documents consist normally of the bill of lading$ the marineinsurance policy and the invoice. he position becomes more involved when payment is madeunder a ban"erDs documentary credit because this common method of payment re#uires theaddition of two other contracts to the export transaction viH the contract of the ban" with thebuyer and seller respectively.

!xport contracts

2 contract is a general agreement between a seller ma"ing an offer and a buyer ma"ing anacceptance. he acceptance should be un#ualified and any variation is regarded as arepudiation of the contract.

he export contract should be very explicit regarding goods and specifications$ price$ mode ofpayment$ storage$ pac"ing$ delivery schedule and so on. Normally the contract is sent with a proforma invoice by airmail.

2lthough contracts may be oral or partly in writing and partly by word of mouth$ it is always safer for the exporter to produce his terms of selling in writing and obtain the signatures of his buyeror authorised representative.

he essential elements of a contract of sale should include the following

a, Names and addresses of the parties

b, roduct$ standards )#uality, and specifications

c, 7nspection of products


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d, ac"aging$ labelling and mar"ing re#uirements

e, 'arine insurance

f, ort of shipment$ destination and delivery schedule

g, 'ethod of payment

h, rice 40$ 674$ 6 I 4 etc. in international currency or currency as"ed for by the buyer and$

i, ettlement of disputes including arbitration clause.

7f the buyer is satisfied with the terms set out in the contract and the pro forma$ the exporter canthen get an order with duplicate copy of the contract$ detailing payment arrangement and otherdetails and an indication that a letter of credit )(6, has been opened in favour of the exporter.=etails of documents re#uired will also be indicated in the export order. he following musthappen

a, 2c"nowledgment / exporter must ac"nowledge receipt of the order indicating thatconfirmation follows

b, crutiny / contents of the order in respect of product$ siHes$ specifications etc. as per#uotation must be examined in terms of elements of contract conveyed by the exporter to hisbuyer. Fualities>volume should be examined and ascertained in respect of capability to supplywithin the stipulated time.

'elivery scheule& 2ll efforts should be made to ensure adherence to delivery schedule as thiswould affect the re#uirements of the (6. he export order should indicate whether part shipmentis permissible or not.

Terms of payment

his is very important 7f payment is to be by (6 the following should be borne in mind whenexamining the (6

a, confirmation of the (6

b, documents stipulated in the (6 will be submitted by the exporterDs ban"

c, draft to be drawn against the (6 is for the period set out in terms of the contract$ &sight draft&is payment by the recipient or &usance draft& if credit has been allowed in the contract

d, the credit validity period allowed in the (6

e, payment against the (6 is permissible according to re#uirements of foreign exchange controlregulations.

'ocuments


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ince the (6 indicates the documents re#uired along with the bill of exchange$ the exportersshould loo" for availability of the documents called for by the importer and particularly

a, 6ommercial customs consular>legalised invoice. he uyer should endeavour to send aspecial form of invoice re#uired by him.

b, 8ind of ill of (ading )usually &clean on board&, and the number of copies re#uired by himalong with the bill of exchange and non/negotiable copies to be sent to the buyer.

c, 6ertificate of origin

d, ac"ing list / number of copies re#uired

e, 'arine 7nsurance olicy whether in 40 or 674 contract is to be effected by the exporter onbehalf of the importer. he name of the company from which the insurance contract is to beobtained should also be mentioned.

Pre*shipment inspection

o be carried out by an appointed body or any other agency.

Pac+in%, labellin% an mar+in% re-uirements

pecial or usual activities for example$ colour contents$ language$ pac"ing etc.

Confirmation

7f the exporter is satisfied with all of the above$ then he must send his confirmation of the exportorder to the buyer. No special form of confirmation is needed as any letter giving details of order

and indicating clearly terms and conditions would be sufficient.

7f dissatisfied$ the exporter should write to the importer to see" for clarification and necessarycorrections$ 7f the export transaction presents itself to the businessman as a natural andindivisible whole and he is apt to pay little attention to its constituent parts$ li"e the motorist whothin"s of the components of his car only when he notices a fault in them.

Special trae terms in export sales

Export transactions based on the contract of sale usually have terms which are not customary inthe local trade. he most common are the 40 and 674 clauses. 0ther clauses are ex/wor"s$ or

ex/warehouse or ex/store$ the 40:$ 40$ the 604$ ex/ship$ ex/#uay and arrival.

!x*#or+s or ex*#arehouse or ex*store #here the %oos are situate/

his is an arrangement which is most favourable to the seller who desires to conduct exporttrade as closely as possible on the lines of a home mar"et sale. he clause means that theoverseas buyer or his agent must collect the goods at the place where the seller wor"s or wherehis factory$ warehouse or store is situated. he seller must provide goods of the contract


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description and place them at the agreed collection point. Notice should be given to the buyerthat the goods are ready for collection.

"ree on rail or free on truc+ "O0"OT/


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yet passed to the buyers so that the receiver could get them.

7n an 40 contract with additional services$ the parties agree that the arrangements for thecarriage by sea and insurance shall be made by the seller but for$ and on behalf of$ the buyer. 7nboth types of 40 contract the cost of putting the goods on board ship is borne by the seller.=elivery is complete when the goods are put on board ship. he ris" of accidental loss underthe ale of Goods 2ct passes to the buyer when the seller has placed the goods safely onboard ship. he seller must give notice of shipment to the buyer so as to enable him to insure. 7f the seller omits to do this$ the goods shall be at his ris". his can be seen in the following case

C$S! 12.6 7room vs 3arber 1819/

7n Groom vs arber )1*15,$ arber sold Groom 1!! bales of cloth on 674 terms. arber shipped thegoods$ insuring them under a policy which did not cover war ris"s. here was no custom of trade that theseller should insure against war ris"s. heir ship carrying the cargo was sun" by a German cruiser. 7t washeld that$ Groom was bound to pay the price on tender of the shipping documents.

Cost )nsurance "rei%ht C)"/ name port of estination/

his is the most common export clause. 2 674 contract is not a sale of the goods themselvesbut a sale of the documents of title. hus$ a buyer is under an obligation to pay against theshipping documents even if the goods do not arrive. he right of the buyer where the goodshave not arrived is to sue the contract of carriage or insurance which is assigned to him by theseller under the contract of sale.


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ascertained. he claim of the wedish against the shipowners was successful.

C$S! 12.9 K#ei Te+ Chao 4s 3ritish Traers $n Shippers 5t., 189:

7n 8wei e" 6hao vs ritish raders and hippers (td.$ )1*5@, ritish raders and hippers (td. soldgoods to 8wei e" 6hao who were merchants$ the shipment to be made by 0ctober 1st. he goodswere shipped on November rd. he date of shipment shown on the bill of lading was forged to show ashipment in 0ctober$ but ritish raders were ignorant of 7t and not party to the forgery. 2ll the same theytoo" delivery of the goods$ but as the mar"et had fallen$ were unable to sell the goods. 7t was held that

i, the bill of lading though forged$ was not a nullity as the forgery did not go to the root of the contract;and$

ii, 8wei e" 6hao although they had not re3ected the documents still had a right to re3ect the goods andcould recover the difference between the contract price and the mar"et price.

July 1*A5& andthe &bill of lading to be considered proof of date of shipment in the absence of evidence to the contrary&.he goods were in fact shipped on 2ugust 11th and 19th$ 1*A5$ but the bill of lading was out dated andfalsely gave as the date of shipment July 1st$ 1*A5.


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paying for them$ the buyers were aware that the goods were shipped later than provided in the contractand were estopped from complaining of the late shipment or the defect of the bill of lading.

C$S! 12.= Comptoir ?$chat vs 5uis e 0ier 18:8/

7n 6omptoir dD2chat vs (uis de :idder )1*@*,$ a elgian company bought 5!! tonnes of la plate rye froman 2rgentine company. he terms were 674 2ntwerp. he goods were part of a larger consignment andthe documents tendered to the buyer included a delivery order addressed to the sellerDs agents in

2ntwerp instructing them to release 5!! tonnes to the buyer. he buyers paid against the documents butthe ship carrying the goods$ the .. Juliana$ was diverted to (isbon because 2ntwerp had fallen intoenemy hands. 2t (isbon$ the goods were sold cheaply. his was one of some *!! transactions concludedby the parties before on similar terms. 7t was held that$ the contract$ despite it being called a 674 contract$was an arrival contract because the delivery order unli"e a bill of lading$ passed neither possession norproperty to the buyers but was merely a note from an agent of the sellers to another. ince$ owing to thenon arrival of the goods in 2ntwerp$ the consideration had wholly failed$ the buyers were entitled torecover the whole purchase price paid by them from the seller.

Contracts !xpresse to be C)" but not True C)" Contracts

he strict rules discussed above do not apply to other contracts$ in particular arrival contractsand other contracts which are not true 674 contracts$ though they may be described as 674contracts by the parties. hus$ the terminology used by the parties is not conclusive evidence asto the nature of the export contract. he following case evidences this.

Case 12.; @r-uhart 5insay A Co. vs !astern 3an+, 1822/

7n Br#uhart (indsay I 6o. vs Eastern an"$ )1*99,$ Br#uhart sold machinery to a buyer in 6alcutta to bedelivered by instalments$ payment to be paid for each shipment as it too" place by means of a confirmedcredit with the buyerDs ban" in England. he buyerDs ban" told Br#uhart that a &confirmed irrevocablecredit& was open in his favour. 2fter two shipments had been made and paid for$ the ban" on the buyerDsinstructions refused Br#uhartDs bill of exchange. 7t was held that the ban" was liable in damages.

2part from the above situation where a bill of lading is replaced by a delivery order$ a contractexpressed to be a 674 one will not be truly such also where delivery of the goods is expressedto constitute performance of the contract.

$ccepte variants of the C)" contract

he following are some of the variants of the 674 contract which are reconcilable with the legalnature of a true 674 contract.

C)" an C C)" an ! C)" an C an )& C)" $(' C ST$('S "O0 COST, insurance$ freightand commission$ E stands for exchange and 7 for interest. he commission is the exportmerchantDs commission which he charges when acting as buying agent for the overseas buyer.he expression &exchange& is ambiguous; it is sometimes said to refer to the ban"erDscommission or charge$ while sometimes it refers to exchange fluctuations. 7n the former case it


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denotes that the ban"erDs charges are included in the calculation$ whereas in the latter it meansthat the purchase price is not affected by the subse#uent rise or fall of the stipulated currency of payment against another currency. 7t is thought that the former interpretation is more commonas currency fluctuation arrangements are most explicitly made. he clause 674 and 6 and 7 isused when goods are exported to distant places where some time elapses before the bill drawnon the buyer abroad is settled. -hen the seller negotiates the bill to his ban" the latter charges

him commission and interest until payment has been received on the draft in the sellerDs country$and the seller by adding in his contract of export the letter &7& to the clause indicates to the buyer that the #uoted price includes the ban"Ds interest and commission.

'ate of arrival of %oos is mere eterminate for payment of price& he parties sometimesagree on 674 terms adding &payment on arrival of goods& or &payment DxD days after arrival ofgoods&. his clause is ambiguous and its meaning can be ascertained from the intention of theparties. 2s a general rule$ these words refer to the time at which payment has to be made. 7f thegoods do not arrive$ payment shall be made on tender of the documents at the time at which thegoods would normally have arrived.

C an " (ame Port of 'estination/

his stands for cost and freight. he seller is responsible for procuring the contract of carriage of goods but not the contract of insurance which is to be effected by the buyer.


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elow is a list of basic documents used in export trade. hese have been covered in detail inother sectors of this text.

a, 7nvitation to #uote

b, Fuote

c, ro forma 7nvoice

d, 0rder confirmation>ac"nowledgement

e, ill of lading>short form bill of lading

f, 2irway bill

g, 'arine )other, insurance policy

h, 6ommercial invoice

i, 6onsular invoice

3, 6ertified invoice

", 6ertificate of origin

l, ac"ing list>weight note

m, pecification sheet

n, 'anufacturerDs analysis certificate

o,


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p, Fuality inspection certificate>certificate of value

#, 7ndependent third party inspection certificate

r, =ispatch advice note

s, =angerous goods declaration

t, hipping or export consignment notes

u, =ocumentary credit of payment drafts

v, Export licences

w, 7mport licences

x, ExporterDs commission advice to agent

y, 6ustoms and Excise export entry forms

H, EB 'ovement documents EB: 1 4orm

a1, 0ther specifically re#uested documents

Not all of these will be relevant depending on whether the exporter is from a developed or lessdeveloped country.

Note

2 great number of exporters find it more convenient to control the volume and variety of paperwor" and related matters by designing a file folder that has printed on the covers the entire


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control procedure covering documentation$ production of goods$ payment$ shipping instructionsand so on. Each separate transaction is then allocated to a numbered filed folder.

he documents are either re#uired by the importer to satisfy the countryDs trade controlauthorities or to enable a documentary credit transaction to be implemented. rade controlauthorities want to ensure that each document controls the import of a good>commodity for

sanitary>veterinary reasons$ or to ensure no plant disease li"ely to affect the local seeds isimported from another country. he importer also wants to ensure that the exporter fulfills thesere#uirements under documentary letter of credit operations in order for payment to be effected.

Commercial ocuments

0f the documents described earlier$ this section will single out some and describe them in detail.

Pro forma invoice

his is a form of #uotation by the seller to a potential buyer. 7t is the same as 6ommercial

7nvoice except for the words &ro forma 7nvoice& which appear on it. 7t may be an invitation tothe buyer to place a firm order and is often re#uired by him so that the authorities of theimporterDs country will grant him an import licence and>or foreign exchange permit. he proforma invoice normally shows the terms of trade and price so that once the buyer has acceptedthe order there is a firm contract to be settled as stipulated in the pro forma. =etails from theaccepted pro forma must be transposed identically to the commercial invoice that goods are inaccordance with the pro forma invoice. No pro forma invoices are used in settlements

• in advance

• on consignment

• sub3ect to tender

• after an invitation to tender has been accepted by the seller.

Commercial invoice

he following details must appear on a commercial invoice used in international trade

• Names and addresses of buyer and seller and date

• 6omplete description of goods. 7f payment is to be obtained by means of documentary letter of

credit$ this description of goods must exactly match the details in the documentary credit

• Bnit prices where applicable and final price against shipping terms

• erms of settlement e.g. under documentary credit or ! days sight =ocuments against

2cceptance

• hipping mar"s and numbers

• -eight and #uantity of goods


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• Name of vessel if "nown or applicable.

ometimes it is necessary to show to the customs authorities in the buyerDs country

• ellerDs signature

•

0rigin of goods• orts of loading and discharge or places of ta"ing in charge and delivery

• =etails of freight and insurance charges specified separately where applicable.

Certifie invoice

2 certified invoice may be an ordinary signed commercial invoice specially certifying

a, hat the goods are in accordance with a specific contract or pro formab, hat the goods are$ or are not$ of a specific country of originc, 2ny statement re#uired by the buyer from the seller.

here are also formal certified invoices which when submitted to the importing authorities willprovide them with the necessary evidence to pass the goods through customs with a lowerimport duty or none at all. 6ombined certificates of value and origin )60, are used betweenmembers of the 6ommonwealth and special invoices for the other ma3or trade areas such asthe EB. 2ll certified invoices must be signed and in case of combined certificates of value andorigin they should be signed by a witness as well.

Bei%ht note

his certificate may be issued by the seller or often by a third party / it indicates weight ofgoods$ which should tally with that shown on all the other documents. -eighbridge tic"ets aresometimes produced for road or rail shipments. an"s will accept superimposed declaration ofweight on shipping documents$ unless credit calls for a separate or independent document.

Pac+in% list an specification

hese documents set out details of the pac"ing of the goods. hese are re#uired by thecustoms authorities to enable them to ma"e spot chec"s or more thorough chec"s on thecontents of any particularly pac"age. he pac"ing list has no details of cost>price of the goods;the specification does have these details.

anufacturers analysis certificate

he certificate states the ingredients and proportions revealed by an analysis of chemicals$drugs etc.

Thir party certificate of inspection

his is a certificate declaring the result of an examination of the goods by a recognisedindependent inspection body. 7n order to protect himself from paying when substandard orworthless goods have been shipped an importer can call for an independent chec" orexamination of goods before they are despatched.


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his is important for the buyer as ban"sD liabilities and responsibilities under documentary creditare limited to documents and not goods represented by the documents. he usual independentbody which serves buyers>sellers is the ociKtK Generale de urveillance.

Official ocuments

hese are legion. his section loo"s at the following few official documents only for examplepurposes$

a, EB:7 formb, H( formc, 6onsular invoiced, (egalised invoicee, 6ombined invoice and 6ertificate of 0riginf, 6hamber of 6ommerce 6ertificate of 0riging, lac"list 6ertificateh, eterinary 6ertificate.

!C ocuments !@0) an TD5

EB:7 form is used in respect of preferential exports from an EB country to a non EB country.he H( is used for trade between EB member states$ where the goods are being transporteddirectly between member states and without passing through the territory of a non membercountry.

Consular invoice

7mporting authorities of several countries re#uire consular invoices to be produced before goodsmay be cleared through customs. hese invoices are normally obtained by the exporter from the

Embassy of the importing country and are submitted to the Embassy for stamping at a charge.ometimes a 6hamber of 6ommerce is re#uired to certify on the 6onsular 7nvoice that theorigin of the goods is as stated. his mainly happens in the outh 2merican countries. heselling price is mainly examined in the light of current mar"et price to ensure that there is no&dumping& or that importers are not syphoning money overseas or that the correct basis forlevying import duty can be determined by the 6ustoms 2uthorities.

5e%alise invoice

ome countries re#uire that commercial invoices should be legalised by their own embassy orconsulate in the sellerDs country. ellers produce their own invoices and have them stamped)visaed, by the buyerDs embassy. his is normally re#uired in the 'iddle East countries.

Certificates of ori%in

hese constitute signed documents evidencing origin of the goods and are normally used by theimporterDs country to determine the tariff rates. hey should contain the description of goods andsignature and seal of the 6hamber of 6ommerce.

3lac+list certificate


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6ountries at war or with badly strained political relations may re#uire evidence that

a, he origin of the goods is not that of a particular country

b, hat the parties involved )manufacturer$ ban"$ insurance company$ shipping line etc., are notblac"listed or$

c, hat the ship or aircraft will not call at ports in such a country unless forced to do so.

Health, veterinary an sanitary certificates

ometimes these are re#uired for official purposes in the purchase of foodstuffs$ hides ands"ins$ livestoc" and in the use of pac"ing materials.

)nsurance ocuments

he following are insurance documents re#uired in international trade

a, (etter of insuranceb, 7nsurance companyDs open cover certificatec, (loydsD open cover insuranced, 7nsurance policy.

5etter of insurance

7t is normally issued by a bro"er to provide notice that an insurance has been placed pendingthe production of a policy or a certificate. ometimes this ta"es the form of a cover note. heabove documents do not contain details of the insurance being effected and therefore are notconsidered satisfactory by ban"s which normally re#uire evidence of an insurance contract indocuments re#uired under a documentary credit.

ro"erDs certificates$ and cover notes are issued by a third party and not the insurer so that inthe event of any claim$ it would be made against the bro"er.

)nsurance certificates

hese are issued by insurance companies to embrace either open covers or floating policies.he systems of open cover and floating policies are similar in that

a, 0nce the system has been arranged$ the insured party is covered for all his shipments on the

terms and for the ris"s agreed. he insured will declare to the insurance company the value anddetails of each shipment and will receive a pre/printed insurance certificate made valid and thedocument will show the ris"s covered and be presigned by the insurer.

b, Bnder English (aw$ no action will be obtained on a contract of insurance evidenced solely byan insurance certificate. o$ any action to be ta"en against insurers can only be on productionof a policy to be sued on.


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Transport ocuments

$ir#ay bill

he 722 airway bill )sometimes called an air consignment note or air freight note, is often

issued in a set of 19 of which are commercially important$ the remainder being copies forairline purposes. he three important documents are

a, for the issuing carrier b, for the consigneec, for the shipper.

he waybill is a receipt only and not a document of title$ and the goods are delivered to thenamed consignee without further formality once customs clearance has been obtained. 7f thethird original document is in the hands of the shipper this can be surrendered to the airlinebefore delivery is made to the consignee.

here might be an arrangement for payment whereby the ban" might wish to have a lien overthe goods until payment is effected by the importer. he goods will$ therefore$ be consigned to acorrespondent ban" )provided that the correspondent ban" is agreeable to this, and in such acase the ban" will release the goods or documents as instructed. he document should bear theairline stamp with date of despatch and flight number$ and be signed on behalf of the airline.

Combine transport bill of lain%

2s a natural se#uel to unitisation of cargo it has become increasingly customary for the &unitload&$ especially where the cargo has been pac"ed in a container of 9! feet in length$ to beshipped on one contract of carriage from a &place of ta"ing in charge& to a &place of delivery&.his is "nown as a &combined& or &multi/modal& transport$ and is a substitute for the traditional

port/to/port bill of lading. 7ts name is combined bill of lading &combined transport bill of lading& isused. -hen such a document is re#uired under a documentary credit it does not ma"e sensefor such credit to specify ports of loading and discharge$ or to prohibit transshipment as theessentials are the places of ta"ing in charge and delivery.

House bill of lain%

hese documents are issued by freight forwarders for their own services. his exhibit is the formrecommended by he 7nstitute of 4reight 4orwarders (imited for trading members of the7nstitute and bears the 744 tandard rading 6onditions.

Bnder the 6arriage of Goods by ea 2ct 1*C1$ any sea waybills$ data freight receipts$ house

bills$ forwarding agentsD receipts or similar non/negotiable documents$ not being bills of lading or title documents$ are nonetheless$ sub3ect to the


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-ith the growth of freight liner traffic the volume of goods being exported by rail through to finalcontinental destination is increasing. 6onse#uently$ the carrierDs receipt$ or duplicate copy$fre#uently accompanies the other documents. Goods will be released to the consignee$ uponapplication and normal proof of identify$ by the rail authorities at destination or by delivery direct.6ontrol over the goods would be arranged in the same way as for an air consignment. he railconsignment note should bear the stamp of the station of departure and the date of departure.

0oa #aybill C0/

he 6': )6onvention 'erchandises :outiers, consignment note is an internationally approvedand recognised non/negotiable transport document used when goods are travelling by roadthrough or to countries which are parties to the 6':. he contracting countries are 2ustria$elgium$ ulgaria$ 6Hechoslova"ia$ =enmar"$ 4inland$ 4rance )including overseas territories,$4ederal German :epublic$ German =emocratic :epublic$ Gibraltar$ Greece$


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lines serving the same routes or destinations may form a conference$ within which agreementsare made over such matters as the terms and conditions of bills of lading$ freight rates$ andsometimes of sailing and use of berthing facilities.

(on*ne%otiable sea #aybills

he processing of bills of lading is slow since they may have to pass through several hands.herefore$ these documents may not be received by the consignee before arrival of the vessel.he non/negotiable sea waybill was developed to avoid delay in handling of goods atdestination$ and has been adopted by a number of shipping lines as an alternative to bills oflading. 7t resembles the air waybill$ as the goods are delivered to the named consignee withoutany need to hand over the waybill.

ate?s receipts

:arely seen in trade circles$ and rightly so$ for this is merely a receipt for goods shipped abroad.Not being a document of title$ it should be exchanged for the set of bills of lading by the shipperat the offices of the shipping company.

"inancial an financin% ocuments

he financial documents$ bills of exchange and promissory notes are listed below. 2 shortdescription then follows

a, ill of exchange drawn in foreign currency and payable at sightb, ill of exchange drawn in sterling and payable at sightc, ill of exchange accepted payable at ! daysD sightd, romissory notee, 7nspection and sampling order

f, =elivery order g, -arehouse receipth, rust receipt.

3ills of exchan%e

he legal definition )ills of Exchange 2ct 1++9$ ection , of a bill of exchange is anunconditional order in writing$ addressed by one person )drawer, to another )drawee,$ signed bythe person giving it )drawer,$ re#uiring the person to whom it is addressed )drawee, to pay ondemand$ or at a fixed or determinable future time$ a certain sum in money to$ or to the order of$a specified person )payee,$ or to bearer. he words in brac"ets do not appear in the 2ct$ buthave been inserted for clarity.

ills of exchange are widely used in international trade$ partly since they are convenientvehicles for collecting payment from traders abroad. 4inance may be arranged in a number ofways using bills of exchange$ both for the buyer )drawee, and for the seller )drawer,. ills ofexchange which have been dishonoured may be used in their own right as the basis for legalaction. 2fter payment$ the discharged bill of exchange is retained by the drawee as evidence ofpayment$ in other words it becomes a receipt for the money. 7t is the practice in some European


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countries for ban"s to avail bills of exchange by adding the ban"Ds name to the bill; this raisesthe status of the document as the availing ban" has guaranteed payment at maturity.

Promissory notes

-hilst not bills of exchange$ these are largely sub3ect to the same rules and are used for asomewhat similar purpose$ the settlement of indebtedness. 7nstead of being drawn li"e a bill ofexchange by the person expecting to be paid$ they are made by the person who owes themoney$ in favour of the beneficiary. 2 simple way of loo"ing at a promissory note is to consider itan 70B. -hen due$ it is presented for payment by the holder$ who may be the payee orsomeone to whom the promissory note has been negotiated.

)nspection an samplin% orer

-hen ban"s are protecting consignment stoc"s for foreign exporters to$ say$ the B8$ or if theyare lending to a B8 importer against a pledge of goods$ the goods are usually warehoused inthe ban"Ds name pending sale to buyers. rospective buyers fre#uently need to inspect andsometimes sample the goods before buying them$ and it is necessary to be able to authorise awarehouse to permit this to ta"e place. 2ssuming that the overseas seller or B8 importerauthorises sampling and>or inspection$ a ban" may issue such an order on a warehouse andhand it to the prospective buyer.

'elivery orer

his is an order on a warehouse instructing it to deliver goods to the bearer or a party named inthe order. an"s issue such orders when goods stored in their name are to be delivered to abuyer or are to be reshipped and have to leave a warehouse.

Barehouse receipt

his is a receipt for goods issued by a warehouse. he document is not negotiable and no rightsin the goods can be transferred under it. =elivery orders may be issued against the receipt forthe goods which relate to it.

Trust receipt

-hen a ban" wishes to release documents of title$ or the goods themselves$ to a customer ofundoubted integrity$ whilst still retaining its security rights in those goods and>or the proceeds oftheir sale$ it may obtain a completed trust receipt from its customer to whom a loan has beenmade. his is an ac"nowledgement of the pledge of the goods to the ban" and an underta"ingof the customer to ta"e the documents as trustees for the ban" and to

a, arrange for goods to be warehoused in the ban"Ds name$ or

b, arrange for processing of the goods and their return to the warehouse in the ban"Ds name$ or

c, arrange for sale of the goods and to pay all sale proceeds without deduction to the ban"immediately on receipt or within a short$ stated period of time.


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!xport financin%

here are various methods used in the international sale of goods to pay the purchase price.hese are as follows

'rafts coverin% exports

hese may be on sight basis for immediate payment or drawn to be accepted for payment !$A! or *! days after sight. =rafts directed to a ban" for collection are accompanied by shippingdocuments consisting of a full set of bills of lading in negotiable form$ airway bills of lading$ orparcel post receipt$ together with insurance certificates$ commercial invoices$ consular invoicesand any other documents that may be re#uired in the country of destination.

Sales a%ainst cost avances

hese are used where credit is doubtful$ exchange restrictions difficult$ or unusual delays maybe accepted. hey are very little used today.

Sales on a consi%nment basis

No tangible obligation is created by consignment sales. 7n countries with free port or free tradeHones$ it can be arranged to have consigned merchandise placed under bonded warehousecontrol in the name of a foreign ban". ales can then be arranged by the selling agent andarrangements made to release partial lots out of the consigned stoc" against regular paymentterms. he merchandise is not cleared through customs until after the sale has been completed.

he two most common methods are payment under a collection agreement and payment undera letter of credit$ also called a documentary credit. 7n both cases$ ban"s are used asintermediaries and the shipping documents are used as collateral security for the ban"s.

7n the case of a collection agreement the ban" in the buyerDs country is s#uarely responsible foreffecting payment$ whereas in the case of a letter of credit this responsibility falls on the ban" inthe country of the seller.

Bsually$ in international sales$ the seller draws a bill of exchange either on the buyer or on aban". his bill is usually payable a certain number of days after sight$ e.g. *! days after sight.

Collection arran%ements

-here a collection arrangement is organised the seller hands the shipping documents including

the bill of lading to his own ban"$ the remitting ban"$ which passes them on to a ban" at thebuyerDs place$ the collecting ban". he collecting ban" then presents the bill of exchange to thebuyer and re#uests him to pay or to accept the bill. -hen the buyer has complied$ the collectingban" releases the shipping documents to the buyer$ who is then able to receive the original billof lading that enables him to obtain the goods from the carrier on arrival of the ship. hecollecting ban" is liable to the seller if it releases the shipping documents to the buyer withouthaving received finance from him.

5etters of creit


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hese are of particular importance. 2 letter of credit arrangement will be agreed upon in thecontract of sale. he buyer instructs a ban" in his own country )the issuing ban", to open acredit with a ban" in the sellerDs country )the advising ban", in favour of the seller$ specifying thedocuments which the seller has to deliver to the ban" for him to receive payment.

7f the correct documents are tendered by the seller during the currency of the letter of credit

arrangement$ the advising ban" pays him the purchase price or accepts his bill of exchangedrawn on it$ or negotiates his bill of exchange$ which is drawn on the buyer. -hichever methodused is pre/arranged between the seller and the buyer.

Types of letters of creit

(etters of credit can be revocable or irrevocable$ confirmed or unconfirmed. -hether the creditis revocable or irrevocable depends on the commitment of the issuing ban". -hether it isconfirmed or unconfirmed depends on the commitment of the advising ban". hesecommitments are underta"en to the seller$ who is the beneficiary under the credit.

here are four main types of letters of credit$ namely$ the revocable and unconfirmed letter ofcredit$ the irrevocable and unconfirmed letter of credit$ the irrevocable and confirmed letter ofcredit$ and the transferable letter of credit.

The revocable an unconfirme letter of creit& Neither the issuing nor the advising ban" iscommitted to the seller and as such the credit can be revo"ed at any time. his type of creditaffords little security to the seller that he will receive the purchase price through a ban".

The irrevocable an unconfirme letter of creit& 7n this case$ the authority that the buyergives to the issuing ban" is not revocable and the issuing ban" is obliged to pay the sellerprovided that he has tendered the correct document before the expiry of the credit. 7f the issuingban" defaults$ the seller can sue them in the country where the ban" has a seat. 7n some

circumstances$ the seller can sue the issuing ban" in his own country if there is a branch office.4rom the point of view of the seller this type of letter of credit is a more valuable method ofpayment than a revocable and unconfirmed letter of credit.

The irrevocable an confirme letter of creit& 7n this type of credit$ the advising ban" addsits own confirmation of the credit to the seller. hus$ the seller has the certainty that a ban" inhis own country will provide him the finance if the correct documents are tendered within thetime stipulated. he confirmation constitutes a conditional debt of the ban"er$ i.e. a debt sub3ectto the condition precedent that the seller tenders the specified documents. 2 confirmed creditthat has been notified cannot be cancelled by the ban" on the buyerDs instructions. ee thefollowing case

Case 12.8 !-uitable Trust Co. Of (e# Eor+ vs 'a#son Partners 5t. 182


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contrary to =awson artnersD instructions and could not debit there.

ransferable

he parties to a contract of sale may agree that the credit is transferable. he seller can usesuch credit to finance the supply transaction. he buyer opens the credit in favour of the sellerand the seller )who in the supply transaction is the buyer, transfers the same credit to thesupplier )who in the supply transaction is the seller,. his type of credit is used when a personbuys goods for immediate resale and wishes to use the proceeds of resale to pay the originalseller.

The octrine of strict compliance

Bnder this doctrine$ the seller$ to obtain payment$ must tender documents which strictly complywith specifications by the buyer$ otherwise the correspondent ban" will refuse to honour the

credit. he ban"s which operate the documentary credit act as agents for the buyer$ who is theprincipal$ and as such they should not pay against documents that are different from thosespecified. (ord ummer emphasised the importance of this re#uirement in E#uitable rust 6o.of New Lor" vs =awson artners (td. )1*9A,.

"rau in letter of creit transactions

(etters of credit have been described by an English 3udge as &the life/blood of commerce& andas such the defence of the ban" that it will not honour the credit because fraud has occurred isaccepted rarely and with reluctance. uch a fraud may occur if the shipment of the goods isfraudulent or if the bills of lading tendered under the credit are falsified or forged. -here there isa mere suspicion by the ban" that fraud has occurred$ refusal to honour the credit is not

accepted. uch refusal will only be accepted if it is proved to the satisfaction of the ban" that thedocuments tendered are fraudulent and the seller is a party to the fraud or "new of it. hefollowing case sets this out

Case 12.1> @nite City erchants )nvestments/ 5t. vs 0oyal 3an+ Of Canaa 18;6/.

7n Bnited 6ity 'erchants )7nvestments, (td. vs :oyal an" of 6anada )1*+,$ Glass 4ibres andE#uipment (td.$ a ritish company$ sold glass fibre forming plant to a eruvian company$ ayment wasarranged under an irrevocable letter of credit issued by a eruvian ban" and confirmed by the :oyalan" of 6anada at its (ondon branch. hipment was to be made from (ondon on or before =ecember15th$ 1ICA$ while v the 6redit was open until =ecember 1st$ 1*CA$ shipment of the installation wasmade on board the 2merican 2ccord on =ecember 1Ath$ i. e.$ out of shipping time. he bills of ladingwere altered and bac"dated to =ecember 15th. his alteration was made fraudulently by an employee ofthe loading agents without the "nowledge of the sellers of the transfers of the credit. 7t was held that$ theconfirming ban" )he :oyal an" of 6anada, should have honoured the credit of the document.

Conflict of la#


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-here a sale of goods transaction is made on the home mar"et$ little difficulty arises asproblems that crop up are easily resolved by loo"ing at the rules in he ale of Goods 2ct)where the parties have not agreed otherwise,.


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the discrepancy. he convention rules also deal with the case of late acceptances which will begood unless the offeror notifies to the contrary.

The uniform la# on the international sale of %oos

his agreement consists of provisions dealing with the obligations of the seller and the buyer asto the time and place of delivery$ the insurance and carriage of goods$ the conformity of goodswith the contract and the giving of goods title. 0ther rules deal with the passing of ris" and thebuyerDs obligations as to payment and the ta"ing delivery of the goods. hese rules are inseveral respects different from the rules under the ale of Goods 2ct. 7n particular$ the uniformlaws do not recognise the concept of the &condition& which exists under common law for thebreach of which the buyer can re3ect the goods even though the breach causes him no loss.he uniform laws instead introduce a concept of &fundamental breach&. hus$ in order todetermine whether the buyer has a right to re3ect$ one must examine the breach that hasoccurred together with its conse#uences. :e3ection will be possible only if the breach is&fundamental&$ i.e. if a reasonable person in the position of the buyer &would not have enteredinto the contract if he had foreseen the breach and its effects&.

he two conventions have been given statutory effect in B8 by the Bniform (aw on 7nternationalales 2ct 1*AC. 'alawi$ for example$ has not passed any enactment to give legal recognition tothe


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Global mar"eting logistics$ referred to earlier in chapter four$ can present to the unwary anduninitiated an enormously formidable barrier.


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b, 42 )4ree 2longside hip,

ery similar to the above$ except the seller will have performed his obligations when the goodsare carried alongside the ship. he buyer must also nominate a ship.

c, 674 )6ost$ 7nsurance$ 4reight,

7t must be noted that a 674 contract is not a sale of goods itself but a sale of the documents oftitle. 2 buyer is under an obligation to pay against the shipping documents which are ta"en upby him. he seller arranges the shipping$ invoice and freight. 2 buyer can re3ect the documentsand the goods but not if he has accepted them.

9a, ills of (ading

his document is the receipt given by the shipping company to the shipper for goods acceptedfor carriage by sea. 7f in negotiable form it also conveys title to the goods$ and goods will only becleared by the shipping company at destination against sender of a signed original of the bill of

lading. he bill of lading endorses a contract of carriage. ills can be &short&$ &linear& or &non/negotiable sea waybills&

b, ills of Exchange

2n unconditional order in writing$ addressed by one person )drawer, to another )drawee, signedby the person giving it )drawer, re#uiring the person to whom it is addressed )drawee, to pay ondemand$ or at a final or determinable future time$ a certain sum in money to$ or to the order of$ aspecified person )payer, or to bearer.

c, (etters of 6redit

2greed in a contract of sale. he buyer instructs a ban" in his own country )the issuing ban", toget a credit with a ban" in the sellerDs country )the advising ban", in favour of the seller$specifying the documents which the seller has to deliver to the ban" for him to receive payment.7f the correct documents are tendered by the seller during the currency of the letter of creditarrangement$ the advising ban" pays him the purchase price or accepts his bill of exchangedrawn on it$ or negotiates his bill of exchange which is drawn on the buyer. -hichever method isused is pre/arranged between the seller and the buyer.

. here are four main types of letter of credit

a, he revocable and unconfirmed letter of credit.

Neither the issuing nor the advising ban" is committed to the seller and as such the credit canbe revo"ed at any time. his type of credit affords little security to the seller that he will receivethe purchase price through a ban".

b, he irrevocable and unconfirmed letter of credit.

7n this case$ the authority that the buyer gives to the issuing ban" is not revocable and theissuing ban" is obliged to pay the seller$ provided that he has tendered the correct document


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before the expiry of the credit. 7f the issuing ban" defaults$ the seller can sue it in the countrywhere the ban" has a seat. 7n some circumstances$ the seller can sue the issuing ban" in hisown country if there is a branch office. 4rom the point of view of the seller this type of letter ofcredit is a more valuable method of payment than a revocable and unconfirmed letter of credit.

c, he irrevocable and confirmed letter of credit.

7n this type of credit$ the advising ban" adds its own confirmation of the credit to the seller. hus$the seller has the certainty that a ban" in his own country will provide him the finance if thecorrect documents are tendered within the time stipulated. he confirmation constitutes aconditional debt of the ban"er$ i.e. a debt sub3ect to the condition precedent that the sellertenders the specified documents. 2 confirmed credit that has been notified cannot be cancelledby the ban" on the buyerDs instructions.

d, ransferable

he parties to a contract of sale may agree that the credit is transferable. he seller can usesuch credit to finance the supply transaction. he buyer opens the credit in favour of the sellerand the seller )who in the supply transaction is the buyer, transfers the same credit to thesupplier )who in the supply transaction is the seller,. his type of credit is used when a personbuys goods for immediate resale and wishes to use the proceeds of resale to pay the originalseller.

0eferences

1. 'cGuiness$ N.-. and (ittle$ . &he 7nfluence of roduct 6haracteristics on the Exporterformance of New 7ndustrial roducts&$ Journal of Marketing,pring 1*+1$ pp 11!/199.

9. 8welepeta$ .($ &(egal 2spects of 4oreign rade&$ . 6arter )ed.,$ &Export rocedures&

Networ" and 6entre for 2gricultural 'ar"eting raining in Eastern and outhern 2frica$ 2ugust1**1$ pp C+ / +5.

. 8imweli .8. &Exporting of


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Step 1


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they ha!en"t shipped to yet, what the optimal routing is to meet their buyer"s

reuirements, or the best airport/seaport to ship to in order to reduce costs and transit

time. #his page will go through all areas of Exporting that a new or experienced

exporter will need in order to make informed decisions. $our freight forwarder,

%merican Export &ines, is here to assist you along the way with any uestions youmay ha!e after reading this page.

% 'asic (uide to Exporting deals with these issues for those who are new to

exporting. #his book )pdf* which was created by the +.. ommercial er!ice

pro!ides the information any such company needs to feel confident about selling

o!erseas. ost of the chapters end with real-life examples in the form of uccess

tories that pro!e it can be done. 'elow are some additional details that will assist you

in understanding how to export goods o!erseas.

Shipping Your Product Overseas

andling and 0etermining ethod of hipping

#alk to your freight forwarder for their ad!ice on whether you should ship by sea, air,

rail or a combination of two modes )multimodal*. #here are many considerations

when selecting a method of shipping and specifying the handling of your shipment.

lick this link to learn more about determining your method of shipping.

If you are shipping by Sea, we will need to know what type of service you

require:

1 Consolidation2 %lso known as buyer"s consolidation, if we are going to consolidate

cargo for you at our warehouse and then ship e!erything out together in an && )less

than container load* or F& )full container load* method. For this mode, we need to

know if you are going to deli!er the cargo to one of our warehouses or if we are

picking up the cargo from each supplier. If we are picking up the cargo, we need to

know the full pickup address of each location and cargo details.

1 C !less than container load"2 #his mode is when we are shipping your cargo in a

consolidated container with other shipper"s cargo. We need to know if we are picking

up from the supplier or if you are deli!ering the cargo to our warehouse.

1 #C !full container load"2 We need to know if we are deli!ering the container to

the supplier, we need to know the full address and whether it is a business or

residential location. We also need to know if you reuire an o!ernight drop of the

container )aka drop and pull*. 3lease keep in mind the container will be sitting on a

container chassis which makes the bottom of the container 4 feet off the ground.

http://export.gov/static/BGE11-49_web_Latest_eg_main_088325.pdfhttp://www.export.gov/logistics/eg_main_018122.asphttp://export.gov/static/BGE11-49_web_Latest_eg_main_088325.pdfhttp://www.export.gov/logistics/eg_main_018122.asp


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1 $O$O !roll%on roll%off"2 this is generally used for cargo that is dri!able and

sometimes static )not rolling* and is o!ersi5ed for containers.

1 &eavy%ift, 'reak%bulk or Pro(ect Cargo2 if you ha!e o!ersi5ed, out of gauge

)66(*, and/or complex reuirements, we will need to know complete details of the

pro7ect including cargo details and the start date of the pro7ect.

If you are shipping by )ir, we will need to know:

1 #he full name and address of the shipper in order to determine if they are a 89nown

hipper: with the #%. If the shipper is a 9nown hipper, then the freight forwarder

will be allowed to ship your cargo on a 3assenger )3%;* %ircraft which in many

circumstances is less expensi!e than shipping on an %ll-argo %ircraft )Freighter*.

3%; flights ha!e a maximum allowable height of of units )e.g. ?@

cartons, ?@x?@xA@ inches, A@kgs/carton 6B A pallets, 4Cx4@x4@, 4@@kgs/pallet*

1 #he commodity name and description. We also need to know if the cargo is

considered ha5ardous or not, if so, we reuire a copy of the 0. If the cargo is

perishable or has certain temperature reuirements, please specify.

Incoter*s

Incoterms clarify the obligations of each party )e.g. who is responsible for ser!ices

such as transportD import and export clearance etc* as well as the point in the shipment

process where risk transfers from the seller to the buyer. #hese are the terms between

the seller and buyer. lick here to go through the Incoterms Explained website. #hese

related to terms such as E;W, F6', F%, F%, FB, 3#, IF, I3, 0%#, 0%3,

003. ome of these Incoterms are for all modes of transport and others are strictly for

sea and inland waterways. #he link pro!ided abo!e outlines all of this for you in great

detail.

+ocu*entary $equire*ents

In order to determine what documents are reuired for the country you are exporting

to, and how those documents must be written, please contact us. ome countries

reuire certain documents to be legali5ed or attested, while others simply reuire a

commercial in!oice/pro forma in!oice, a packing list and possibly a certificate of

origin )66*. %dditionally, if the shipment is on an &/ your freight forwarder must

http://www.export.gov/articles/eg_main_021809.asphttp://www.incotermsexplained.com/the-incoterms-rules/incoterms-2010-rules/http://www.export.gov/articles/eg_main_021809.asphttp://www.incotermsexplained.com/the-incoterms-rules/incoterms-2010-rules/


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be aware of the details of the &/ so they can meet the &/"s reuirements. ertain

countries ha!e !ery stringent reuirements on how these documents are to be written,

and we are here to !erify with our o!erseas partners who are experts in their

respecti!e country, on how those documents are to be written.

Packing Your Products for Ship*ent

Exporters should keep four potential problems in mind when designing an export

shipping crate2 breakage, moisture, pilferage and excess weight. iew these tips on

product packaging for o!erseas transport. If you need packing ser!ices, the more

specific you are on exactly what ser!ices you need, the faster we can respond with

accurate pricing. ome countries ha!e strict reuirements on the type of wood )e.g.

I3 ?* that can be used in pallets or packing of cargo.

abeling&earn how to correctly label your shipments to ensure your buyer does not ha!e

customs delays at destination because of improper labeling. ertain countries ha!e

!ery strict reuirements on how cargo must be labeled. If your cargo is ha5ardous,

there are +.. reuirements for how the product should be labeled and packed as well

as how it must be declared on the 0(0 )dangerous goods declaration* form. %sk us if

you are unsure on how to label your cargo.

Insuring Your Ship*ents

0amaging weather conditions, rough handling by carriers, and other common ha5ardsto cargo make insurance an important protection for +.. exporters. %lthough sellers

and buyers can agree to different components, co!erage is usually placed at ??@

percent of the IF )cost, insurance, freight* or I3 )carriage and insurance paid to*

!alue. We offer %&&-BI9 and #6#%& &6 insurance policies for all modes of

transport.

Personal ffects Ship*ents, Sa*ples and -ifts

For some general considerations and useful links, !isit the 3ersonal hipment

F%G page. For more information, contact your shipper for directions related to pri!ate

shipments. ome shipments that are samples can be shipped as 3ersonal shipment,

depending on the commodity, !alue, si5e and destination.

http://www.export.gov/logistics/eg_main_018124.asphttp://www.export.gov/logistics/eg_main_018124.asphttp://www.export.gov/logistics/eg_main_018123.asphttp://www.export.gov/logistics/eg_main_018126.asphttp://www.export.gov/faq/eg_main_028022.asphttp://www.export.gov/faq/eg_main_028022.asphttp://www.export.gov/logistics/eg_main_018124.asphttp://www.export.gov/logistics/eg_main_018123.asphttp://www.export.gov/logistics/eg_main_018126.asphttp://www.export.gov/faq/eg_main_028022.asphttp://www.export.gov/faq/eg_main_028022.asp


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http://www.slideshare.net/snehsagar/a$pro%ect$report$on$export$process$and$

documentation

http://www.slideshare.net/sun%i#77/gs$ctpat$scspresentation
http://www.slideshare.net/snehsagar/a-project-report-on-export-process-and-documentationhttp://www.slideshare.net/snehsagar/a-project-report-on-export-process-and-documentationhttp://www.slideshare.net/sunjib77/gsv-ctpat-scspresentationhttp://www.slideshare.net/snehsagar/a-project-report-on-export-process-and-documentationhttp://www.slideshare.net/snehsagar/a-project-report-on-export-process-and-documentationhttp://www.slideshare.net/sunjib77/gsv-ctpat-scspresentation

Export Logistics Notes

Documents

Transcript of Export Logistics Notes