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CERTIFICATION & INTERNATIONAL

TRADE PROCEDURES
EXPORT PROCEDURES AND
PRACTICE

Day 2 Slides 2007/version1

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TERMS & DOCUMENTATION Incoterms F Methods of Payment F Methods of Transport F Documents F HM Revenue & Customs (HMRC) F Day 2 Slides 2007/version1 2 .CERTIFICATION & INTERNATIONAL TRADE PROCEDURES INTRODUCTION TO EXPORT RULES.

– Define:who arranges pays for what u where risk passes u Day 2 Slides 2007/version1 3 .F Incoterms – Every international sales contract should include an Incoterm. – There are 13 Incoterms.

Ins and Freight) – CPT (Carriage Paid To) – CIP (Carriage & Ins Paid To) – DAF (Delivered at Frontier) – DES (Delivered Ex Ship) – DEQ (Delivered Ex Quay) – DDU (Delivered Duty Unpaid) – DDP (Delivered Duty Paid Day 2 Slides 2007/version1 4 .CERTIFICATION & INTERNATIONAL TRADE PROCEDURES F The Thirteen Incoterms:– EXW (Ex works) – FCA (Free Carrier) – FAS (Free Alongside Ship) – FOB (Free on Board) – CFR (Cost and Freight) – CIF (Cost.

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 .

Day 2 Slides 2007/version1 6 . – You then forward Customer goods.CERTIFICATION & INTERNATIONAL TRADE PROCEDURES F Cash in Advance – You receive the money in advance.

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 .

– Customer pays or accepts the Bill of Exchange then gets goods. – Can be at sight or 30/60/90/180 days.CERTIFICATION & INTERNATIONAL TRADE PROCEDURES F Bills of Exchange – A “you owe me note” – Sent to Customers Bank with export documentation through banking system. Day 2 Slides 2007/version1 8 .

CERTIFICATION & INTERNATIONAL TRADE PROCEDURES F Letter of Credit – Customer opens L/C through his Bank. – L/C lists 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 u – Original L/C passed to Seller through banking system. Day 2 Slides 2007/version1 9 .

– Letters of Credit often request Certificates of Origin.CERTIFICATION & INTERNATIONAL TRADE PROCEDURES F Letter of Credit – Provided Seller presents documents in conformity with Letter of Credit he will be paid. Day 2 Slides 2007/version1 10 .

Day 2 Slides 2007/version1 11 .CERTIFICATION & INTERNATIONAL TRADE PROCEDURES F Methods of Transport Road u Rail u Air u Sea u A Combination (Multi Modal) u – Each form of transportation has its own special transport document.

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

Day 2 Slides 2007/version1 16 .CERTIFICATION & INTERNATIONAL TRADE PROCEDURES F HM Revenue & Customs (HMRC) – F Rules governing export from UK Overseas Customs Authorities – Rules governing import at overseas destination.

– Intrastat Return required monthly if EU exports exceed £260K per annum. Day 2 Slides 2007/version1 17 . no documents needed for customs unless goods are restricted.CERTIFICATION & INTERNATIONAL TRADE PROCEDURES F Export from UK – For movement to other EU destinations. – For movement to third countries C88 or SAD document required.

– Check Tates/Croners.CERTIFICATION & INTERNATIONAL TRADE PROCEDURES F Import at Overseas Destination – Different requirement for :different countries u different products u – Documentation will be required to show any mandatory statement. Day 2 Slides 2007/version1 18 .