Topic 1: What are the terms, Incoterms? The term, Incoterms, is an abbreviation for International Commercial Terms.

They are a set of rule which define the responsibilities of sellers and buyers for the delivery of goods under sale contracts. In addition, Incoterms are published by the International Chamber of Commerce (ICC) and they are widely used in international commercial transactions. As you know, the first Incoterms were issued in 1936 and the Incoterms 2010, the most recent version terms, were launched in September 2010. They became effective on January 1, 2011. Incoterms are an abbreviation for International Commercial Terms and are very important in export-import and international payment nowadays.

Outline:

Incoterms:
Set of rules Define the responsibilities Published by The first version The recent launched version Become effective

RULES FOR ANY MODE OF TRANSPORT:

ExWorks (EXW): means that the exporter is free from responsibilities when the goods are on exporters shopfloor Free Carrier (FCA): means that the exporter is free from responsibilities when the goods are on the first carrier Carriage Paid To (CPT): means that the exporter is free from responsibilities when the goods are on the carrier and he/she must pay the carriage. Carriage and Insurance Paid To (CIP): means that the exporter is free from responsibilities when the goods are on the carrier and he/she must pay carriage and insurance Delivered at Terminal (DAT): means that the exporter is free from responsibilities when the goods are delivered at the named terminal Delivered at Place (DAP): means that the exporter is free from responsibilities when the goods are delivered at the named place. Delivered Duty Paid (DDP): means that the exporter is free from responsibilities when the goods are delivered at the named place. In addition, the exporter must pay the duty or tax through the customs.

FOR ANY MODE OF TRANSPORT:

EXW: are on shopfloor FCA: are on the firsr carrier CPT: are on the carrier, pay carriage CIP: are on the carrier, pay carriage, insurance DAT: at the named terminal DAP: at the named place DDP: at the named place, pay the duty or tax

RULES

FOR

SEA

AND

Outline: Topic 2: What are Incoterms used for? As you know, Incoterms include common set of rules to clarify responsibilities of sellers and buyers for the delivery of goods under sale contract. On the other hand, they apportion transportation costs and responsibilities associated with the delivery of goods between importers and exporters. In addition, Incoterms also reflect modern-day transportation practices and reduce misunderstanding among traders. Thus, they help us minimize disputes and litigation in world trade. -

Incoterms used for

Provide to clarify responsibilities. Apportion costs. Reflect modern-day. Reduce misunderstandings Minimize disputes.

Why were the Incoterms 2000 revised?

Incoterms 2010 are the updated version of Incoterms. Incoterms 2010 have been developed as a result of an extensive review of current shipping practices and trends in an effort to keep up with the rapid expansion of world trade. The key drivers for this update include: a need for improved cargo security, changes to the Uniform Commercial Code in 2004 that resulted in a deletion of U.S. shipment and delivery terms, and new trends in global transportation.

the Incoterms 2000 revised?

As a result of practices Trends in trade expansion. Key driver: A need for security Changes resulted in deletion. New trends

Outline: Topic 3: What is a freight forwarder? How does a forwarder help an exporter Freight forwarder is a company licensed by the Government agency, a commission or an association. In addition, the freight forwarders are in close relationship with international transportation companies. And how does a forwarder help an exporter? So, a forwarder can help exporters stay in compliance with Vietnamese export laws. On the other hand, the forwarder also helps exporters determine whether or not they can ship the goods to their customer. They help exporters figure out the best way to meet customers delivery requirements. Thanks to a forwarder, the exporter consolidate the goods with other shippers in order to export economically. The forwarder also give sellers information to prepare a pro-foma invoice to the bottom. Its very easy and reliable. On the whole, Freight forwarder is a company licensed by the Government agency and plays an important role in international commercial trade, especially in import-export.

A Freight Forwarder:
- Licensed - Assists transaction and shipping - In close relationship

How does a forwarder help an exporter

- Comply with foreign laws - Determine whether or not ship - Meet requirements - Consolidate => economically - Give cost, infos => reliable

Topic 4: What is a letter of credit? What Outline does a forwarder do with your letter of credit? As you know, letters of credit (LCs) are among the most secure investment. They are also available to international traders and safe for the seller, who is sure to receive payment. An LC is a document issued by a bank on behalf of the buyer acting as a guarantee of payment to the exporter. In addition, the payment will be made provided that all required documents are presented and the terms and conditions are met. An LC is useful because you are satisfied with the creditworthiness of your buyers foreign bank even when reliable credit information about a buyer is difficult to obtain. On the other hand,an LC protects the buyer from arising payment obligation until the goods have been shipped as promised. Sending a copy L/C to your freight forwarder before shipping your goods will get the free for a time to check it out. The FF also asks you to send them a letter of credit, commercial invoice and perhaps a packing list. They will arrange for a trucker to pick up your product packing if needed, fumigate the material, deliver to the ocean peer and process your B/L all accordance with the L/C instructions. Once the goods are shipped, the freight forwarder processes all the required documents including a certificate of origin, insurance certificate and notarization and prepares all the documents in compliance with the terms of the L/C and finally presents those documents to the bank. That bank will examine the documents .Once approved, that sending you a check could be easier. Your FF knows how to exported economically, safely and most importantly in compliance with export laws. -

A letter of credit:

Secure, available to, safe Issued by banks, as guarantee. Payment made (documents, terms,) Satisfy with (creditworthiness) Protect from arises

A forwarder do with your letter of credit

- Helps get free for times - Arrange for a trucker: pick up, fumigate, deliver, process. - Processes documents ( origin, insurance, notarization), prepares, presents to the bank. - Examine and approve => send a check (by bank). - Economical, safe, important.

Outline Topic 5: What are the common documents for customs clearance? As you know, importers must prepare all required documents for customs clearance if they want to receive goods from sellers. The common documents are required for importation:
1.It is a Commercial Invoice or Pro-Forma that must include the following: full address of Shipper/Exporter, full address of Consignee/Importer, country of Origin, style number , purchase Order number, complete item description, quantity, unit price, total price including the contents of the item (i.e. 100% cotton, plastic, wood) , shipping terms (Example: FOB, CIF, Ex-Works, Etc.) 2. That is a packing List showing the contents of each carton: Net weight, gross weight, and summary must be included on the packing list. 3. That is an Export License/Visa (if required). 4. It is an Airway Bill or Bill of Lading (Freight forwarder will prepare). 5. For all ocean shipments, the following information must be provided to the Freight Forwarder such as: actual manufacturer, country of Origin, Container stuffing location , consolidator

Documents are required:

- Invoice - C/O - Packing list - Export License - B/L or Airway Bill - Ocean shipments informations

Some specific forms:

- Transport - Health - Food Inpection.

Depending on your products, what industry it falls under, some specific forms may be required for other Vietnamese government departments such as: transport Vietnam, health Vietnam, Vietnamese food inspection agency, etc. In short, preparing all required documents for customs clearance is very important. If you dont have enough them, you cannot get the goods or services from the exporter.

Outline: Topic 6: How do you distinguish among Confused by 3 documents these 3 documents: bill of lading, CADEX, Bill of Lading: form B3? As you know, preparing documents required customs such as: bill of lading, CADEX, form B3 is very important for exporters. The exporter can be confused unless he distinguishes among them. Bill of lading is a document that shows the terms and conditions of contract between a shipper and a transport company. It also acts as a receipt for goods received by the carrier and describes the conditions in which cases were loaded on board. Meantime, CADEX stands for customs automated data exchange and the computer system allows importers and brokers to electronically transmit duty and tax information to Vietnam customs. On the other hand, form B3 is used to account for commercial goods. It includes the following informations: importer name and the importer or exporter account, a description of the goods, direct shipment date, tariff treatment or trade agreement, the country of origin, the tariff classification, the value for duty, appropriate duty tax rate and calculation of duties owing. Some of these elements such as: tariff classification value for duty and the origin of goods are difficult to determine because they may be complex. - Shows terms - A receipt describing conditions

CADEX (Customs Automated Data Exchange)

- Allows to transmit (duty, infos,)

Form B3: Coding form including

- Name, account - Desciption - Date - Treatment or Agreement - Origin, classification - Value for duty - Tax rates - Calculation of owing. Elements be complex (duty, origin,)

Topic 7: What is a check? As you know, cheques are among the most popular payment instruments available in international transactions. It is a negotiable document instructing a bank to pay a specific amount from a specific demand account held in the maker or depositors name to beneficiary account. Both the maker and payee may be natural persons or legal entities. In addition, the check had its origin in the ancient banking system. Bankers would issue orders at the request of their customers in order to pay money to identified payees. On the order hand, cheques are a type of bill of exchange and were developed as a way to make payments without the need to carry large amounts of money. A draft is a bill of exchange which is payable on demand of the payee. The cheque originally called a check in reference to the counterfoil used to check against forgery and alterations. In short, cheques are among the most popular negotiable instruments available in world transactions and play an important role in international payment.

Outline:

Cheques:
- Popular instrument - Intruct to pay amount held in maker. - Natural person. - Origin, issued at the request. - Bill of exchange, payments without money. - Relate counterfoil, agaist forgery, alteration

Topic 8: What is an invoice? An invoice is a commercial bill for the goods from the seller to the buyer. These invoices are often used by government to determine the true value of goods when assessing customs duties. In addition, governments use invoice to control imports. They will specify invoices form content, number of copies, language to be used and other characteristics. The invoice usually contains: PO#, date, billing address, shipping address, terms of payment, list of products with quantities and prices. Invoice are often called Bills. On the other hand, The term invoicing is
also used to refer to the act of delivering the baggage to a flight company in the airport before taking the flight. In sum, an invoice is a

Outline

An invoice:
- A bill, used to determine value. - Specified by government (content, copies, languages,). - Contains: PO, date, address, terms, - Refers to the act of flight company.

commercial bill for the goods from the seller to the buyer and it is widely used in world trade, especially in import-export.

Outline: Topic 9: What is a bill of lading? A bill of lading (B/L) is a document issued by carrier. It shows the terms and conditions of contract between a shipper and a transport company. B/L also acts as a receipt for goods received by the carrier and describes the conditions in which cases were loaded on board. Then it may be forwarded to the shipper for acknowledging the shipment. The goods on the ship may be in good conditions and then you have a clean B/L-the captain leaves his box on the document blank. The goods may be in bad conditions, and then you have a dirty or foul B/L-the captain writes something in his box on the document. The B/L also states the terms of transportation. A through bill of lading can be obtained for all modes of transporting goods to their destination. A bill of lading is an important document (forecast, warning,) and if you dont have clean bill of lading you cannot receive the goods from the shipper.

Bill of Lading:
- issued by carrier - Shows terms - A receipt describing conditions. - Sent for acknowledging - Good conditions : clean B/L - Bad conditions: dirty B/L - States the terms, be obtained to destination.

Outline: Topic 10: What is an IMO? - Abbreviation As you know, IMO is the abbreviation of - Similar to regular order, payment abroad. International Money Order. It is a quick and - Used when residing, bought in accepted inexpensive way to send money abroad. An currency. international money order is very similar in many Safer than through the post, only includes a aspects to a regular money order except that it can signature, form be used to make payments abroad. With it, a buyer Suitable for small transaction (sterling, can easily pay a seller for goods or services if he or USD,) she resides in another country. International money orders are often issued by a buyer's bank and - Bought at branches and filled in by bank.
bought in the currency that the seller accepts.On the other hand, international money orders are thought to be safer than sending currency through the post because there are various forms of identification required in order to cash an international money order often including a signature, and a form of photo identification. International Money Orders are suitable for small transaction such as subscription, gifts, order or small import orders. They are usually paid in sterling or US dollars. You can buy an I.M.O. at

An IMO

your local bank branches. The bank can fill in all the necessary forms on your behalf, so you
don't have to complete long application forms.

IMO is the abbreviation of International Money Order and are simple to buy, convenient to use, and are accepted by major banks throughout the world.