THE PARTIES TO AN IMPORT-EXPORT

TRANSACTION
 The Exporter
• Seller & shipper
• Most product manufacturers are also exporters
(directly export)
• An export sale is completed once title has passed
from exporter to importer, an invoice has been
issued, an accounts receivable established, and the
transaction recorded in the international accounts
ledgers of the countries involved.
 The Exporter

title has passed from exporter to importer

An export

an invoice has been issued

an accounts receivable established

transaction recorded
 The Exporter
Not an export No title change from exporter to importer

a physical transfer of inventory

A final invoice is not cut

no accounts receivable is created

 The Exporter
Export trading
company a mercantile
firm that buys
from local
supply sources
and resells
overseas
 The Importer

• Buyer or ultimate consignee

• “Arms-length" rule of law = “unrelated”
• Importers have different shapes: distributors / dealers
that resell to consumers / end users
 The Freight Forwarder

• To arrange for the transportation of goods from the

exporter’s warehouse to the importer’s port of entry
and/or warehouse destination
• prepare all export and shipping documentation on
behalf of the exporter
 handle any form of shipment
 The Customs Broker

• To help clear imported merchandise through local

customs on behalf of the buyer
• payment of all import taxes and charges and
arranging for the transport
 International Banks

• Expedite the flow of documents and payments

• Both the seller’s and the buyer’s banks have
correspondent relationships
• If there is no correspondent relationship, extra
expenses and delays can be expected.
 International Banks

• If there is no correspondent relationship, extra

expenses and delays can be expected (In fact, most
multinational banks have banking subsidiaries in
different countries)
• If a correspondent relationship between the two
banks is not possible, either bank will usually locate a
third-party bank with which both original banks have
a correspondent arrangement.
 The Carrier
• The transportation firm
• Single or combine
modes
• Containerized or
bulk/tanker shipped
• Many containerization
companies have their
own in-house customs
brokers and freight
forwarders
 Insurance

• Against loss and/or damage while moving from one

country to another
• In-transit insurance is rarely legally required (except
L/C~marine insurance)
• Either the exporter or the importer should cover