A tutorial for export transactions - from financing to shipping, INCOTERMS and contracts.
The Transaction
Finding a market for the goods (market research)
Selecting the marketing channels
Negotiations
Pricing
Distribution channels
Order
Contract
Commercial Invoice
Commercial Invoice must include (minimum):
Payment Terms
Mode of Payment
Division of Costs
Details of Carrier
Details of Receiving Party
Details of Buyer
Other Details
For best results use the ECE (Economic Commission for Europe) Standard Commercial Invoice
Packing List must include (minimum):
Contents of the Packaging (=of the shipment)
If more than one package or outer and inner packing – all contents per each packing and per each package must be detailed separately
Permits and Licenses
Export licenses if needed
Standards certificates
Labeling
Quality control certificates (highest is ISO, such as ISO-9002 or ISO-9000) Health and phytosanitary certificates
Veterinary certificates
Other permits, licenses and certificates
Service Providers
Marine Transport
Air Transport
Land Transport (lorry, train)
Insurance
Warehousing
Banking and other Financial Services (factoring, forfeiting, etc.)
Airway Bill of Lading (ABL)
(More details later – see appendices for samples)
Holder of ABL does not own goods
Air Transport Contract not effected – but ABL proof of existence of such contract, including weight, measurements, number of packages and invoice.
Marine Bill of Lading (MBL)
Proof of receipt of goods in a certain condition
Proof of existence of transport contract
MBL facilitates the transfer of ownership
Negotiable, transferable and assignable
