Professional Documents
Culture Documents
Team A
Submitted To:
Maa’m Habiba
Submission Date:
[24th April 2009]
PRESENTED BY
TEAM “A”
TEAM MEMBERS:
NAME ROLL
N.o
1. SHAHRUKH KHAN (L)
8334
2. SHAHRUKH KHAN
8332
3. ABDUL RAUF
8335
4. NOUMAN
8354
5. ZEESHAN TARIQ
8306
COURSE
• B.B.A
SEMESTER
• 3rd B
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External Trade
Def:
International trade is exchange of capital, goods, and services across
international borders or territories.
Export\import transactions:
1) LC sight
2) LC usage
In import and export transaction normally 90% LC sight is used and 10%
LC usage.
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Foreign trade and its problem
The basic problem which is faced during foreign trade is that if the
exporter ships the goods and dispatches the documents through courier.
But in some cases the documents are misplaced by the courier company
and on the other hand the goods have reached the port, due the
misplacement of the documents. The importer cannot shift the goods to
his warehouse because to take the goods from the port you have to show
the documents to the custom officer. But in the absence of the
documents, the importer asks the bank to issue a SHIPPING GURANTEE. It
is a document by which the importer can take the goods from the port.
The SHIPPING GURANTEE is issued after taking some charges from the
bank. Rs 500 is charged by Bank Al-Habib.
Language: when the goods are exported to a foreign country, the labels,
informative literature, packing technical handout, should be prepared in
the language of the century in which the goods are marketed. There
should also be salesmen who are versed with that language and know the
habits and likings of the people.
Sale in foreign currency: Every country has its own currency which is
not legal tender in the other country. Buyer abroad prefers to buy the
goods in his own currency just ass seller prefers to sell in the currency of
his own country. The exporter therefore has to calculate the selling price
of the goods into the currency units of country where the goods are sold
taking into consideration due fluctuations in the foreign exchange rate.
The exporter can protect him against possible loss in foreign exchange by
hedging.
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Licenses and documents: When goods are exported or imported a
number of documents are to be prepared.
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EXPORT\IMPORT TRADE PROCEDURE:-
The Export\Import Trade procedure can be explained by the following
example:-
Documentation required:
Export
On the shipment of export commodities an Export Declaration Form
(CUSDEC - 2) must be submitted to the Customs Department together
with the following documents:
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COLLECTION OF PAYMENT OF GOODS BY THE EXPORTER:-
Diagram:
8.
Proceeds
3. 2. 6. Bill
credited
Documen GOODS Paid/
to 5. Bill
ts accepted
exporter’s Presented
and paid
document
s account
7. Proceeds
remitted
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Import Procedure:
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IMPORTANT DOCUMENTS USED BY THE EXTERNAL TRADE:-
There are different types of forms used by the importer and exporter. The
documents are as follows:-
Commercial invoice
A bill for the goods from the seller to the buyer. These invoices are often
used by governments to determine the true value of goods when
assessing customs duties. Governments that use the commercial invoice
to control imports will often specify its form, content, and number of
copies, language to be used, and other characteristics
Certificate of Origin
Bill of Lading
A contract between the owner of the goods and the carrier (as with
domestic shipments). For vessels, there are two types: a straight bill of
lading which is non-negotiable and a negotiable or shipper's order bill of
lading. The latter can be bought, sold, or traded while the goods are in
transit. The customer usually needs an original as proof of ownership to
take possession of the goods
Insurance certificate
Used to assure the consignee that insurance will cover the loss of or
damage to the cargo during transit
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indicates the type of package, such as a box, crate, drum, or carton. Both
commercial stationers and freight forwarders carry packing list forms.
Import License
Consular Invoice
Air freight shipments are handled by air waybills, which can never be
made in negotiable form
Inspection Certification
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10
IMPORT LICENSE
Everybody cannot be importer. To deal with the bank the importer should
have a proved licensed from the government.
C & F basis: when goods are imported on C & F basis the cost of freight
are included in the price of goods.
C.I.F: The letters C.I.F stand for cost, insurance and freight. In case the
goods are exported on C.I.F basis it includes cost, insurance and freight.
C.I.F & C.I: These letters stand for cost, insurance and freight and
commission and interest. When the goods are shipped on C.I.F and C.I
basis it means the price quoted includes the cost, insurance, freight plus
commission and interest.
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