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    Ejaz Ahmad
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    AIOU Book "Getting Paid for Exports"

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    GETTING PAID FOR EXPORTS

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    AIOU Book "Getting Paid for Exports"

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    71 views60 pages

    Getting Paid For Exports

    Uploaded by

    Ejaz Ahmad
    AIOU Book "Getting Paid for Exports"

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 60
    PROFITABLE EXPORTING GETTING PAID: MANAGING YOUR MONEY | ost PREPARED FOR THE EXPORT PROMOTION BUREAU OF THE GOVERNMENT OF PAKISTAN AND THE INTERNATIONAL TRADE CENTRE, UNCTAD/GATT S COPYRIGHT © 1987 EXPORT PROMOTION BUREAU, KARACHI @ 6 AND INTERNATIONAL TRADE CENTRE, UNCTAD/GATT, GENEVA Contents Preface 5 PARTI 1 Ways of getting paid 7 1.1 Cash in advance 7 1.2 Leuer of credit 8 1.3 Documentary drafts 10 14 Open account 17 1.5 Consignment sales 17 Sample letters of credit transactions 14 Suggested checklist for documentary items under letters of credit 18 Most common letter of credit documentation errors 27 Collections and documents 23 2.1 Commercial invoices 23 2.2 Consular invoices 23 2.3 Centficates of origin 23 2.4 Inspection certificates 23 2.5 Phytosanitary (plant health) inspection certificates 25 2.6 Bills of lading 25 2.7 Dock receipts, warehouse receipts 25 28 Certificates of manufacture 25 2.9 Insurance certificates 26 2.10 Other considerations 26 2.11 Summary of documents: 26: 2.12 Pakistan export promotion policies 32 Managing foreign exchange risk 33 3.1 Introduction 33 3.2 Keep the risk 33 3.3 Summary 34 Contracts and disputes 36 4.1 Introduction 36 4.2 Legal implications of sales contracts 36 43 Arbitration 37 44 Some final tips for you 38 A final word 43 PART IT Basic documentation checklist 44 Documentation completion checklist 45 ‘Some common terms used in international trade 46 Incoterms responsibilities and risks 53 Letter of credit special features 55 ‘Various kinds of collections: a summary 57 jpraphy 58 Preface ‘This book is about getting paid for your exports. ‘The business of exporting means keen attention to detail, absolute accuracy in preparing your documents and accompanying paper work, and thoroughly understanding the process by which buyer and seller interact to complete an export sale. In sum, the situation is: IF THE PAPERWORK IS WRONG, YOU WILL NOT GET PAID! If you don't get paid for your work, you will not be in business for very long. The processes and paperwork are not complicated, really - but they must be ‘understood and filled out properly, and all requirements must be met before you can get ‘your money. You can do it - hundreds of exporters just like you are doing very well indeed, by taking the time to tearm how to deal with the various parties and processes inherent in exporting. ‘The ‘players in the exporting ‘game’ ‘The players in exporting vary, depending upon the transaction, but the following parties ‘are commonly encountered by both new and experienced exporters: + Exporter - this is you, the seller; also often referred to as the ‘shipper’ in many documents. + Importer - this is the buyer/user, the person to whom you are selling and shipping. + Foreign freight forwarder - an agent, usually retained by you, the seller, to arrange for ccargo transport, for preparation of certain documents by agreement, and to handle details related to the physical transport of goods. + Customs broker ~ an agent, usually retained by the buyer, to receive and/or to clear ‘goods through customs at the point of entry overseas. > + Underwriterlinswrerlissuer - the insurance company arranging for the marine insurance to protect against physical damage, loss or theft. + Commercial bank - financial institution(s) to facilitate financing and negotiation of documents between buyer and seller. + Carrier - cargo company that physically transports your cargo abroad to the buyer/user, + Governments - yours and the buyer's. {In the pages of this book you will learn the common ways to get paid for your exports, plus other related information that can give you confidence in your ability to export successfully and profitably. There is no ‘magic’ formula to exporting - just study, good planning, and systematic follow-through in all of your export dealings. ‘Throughout the book you will encounter questions to consider, activities for you to double-check your understanding of what you have read, and many checklists to follow to avoid mistakes in your export transactions. Ask lots of questions always; carefully review all contracis, quotes and enquiries to be sure you can (and do) perform well in exporting, ‘The information in this book is believed to be correct; however, circumstances, laws and practices change regularly. Therefore, you must consult competent counsel in any actual export situation that you or your firm may encounter to determine laws and practices that apply at that time, ‘The book falls into two parts. Part I is the main text and you should read this carefully and attempt the various exercises. The second par, from page 44 to the end, gives more

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