EXPORT/IMPORT PROCEDURES

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EXPORT/IMPORT PROCEDURES

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FOBFREE ON BOARD

• Cost of freight insurance to a certain point in
  the transportation link (usually within the
  exporting country) is included in the sellers
  price.
• Buyer must pay for freight beyond that point.
• Specification of fob location is critical.
• Ex-factory, Ex-city, Ex-port.

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CIFCOST, INSURANCE, FREIGHT

• Cost of freight and insurance to a port in the
  importing country is included in the sellers
  price.
• Buyer must pay for freight beyond the port.
• Specification of CIF location is useful.
• Ex-port.

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CFCOST FREIGHT

• Cost of freight to a port in the importing
  country is included in the sellers price.
• Buyer must pay for insurance from the originating
  point and freight beyond the port.
• Specification of CF location is useful.
• Ex-port.

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LANDED PRICE

• Usually refers to the ultimate cost of the
  product to the buyer at his/her place of business
  after paying for cost, freight, insurance, and
  customs fees and duties.
• Useful benchmark for comparing quotes from
  different suppliers.

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EXPORT LICENSE

• THE U.S. HAS TWO TYPES OF LICENSES
• VALIDATED LICENSE
• GENERAL LICENSE

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IMPORT LICENSE

• THE IMPORTER MAY NEED TO OBTAIN AN IMPORT
  LICENSE.
• MAKE SURE YOUR BUYER HAS ONE IF NECESSARY.

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EXPORT DOCUMENTS

• Shippers export declaration with Export license
• Commercial (and Consular) Invoice
• Bill of lading (airway bill)
• Packing list
• Insurance certificate
• Special purpose certificates
• Ex Country of origin, Quality, Standards, etc.

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• SHIPPERS
• EXPORT
• DECLARATION
• FORM

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IMPORT DOCUMENTS

• Import license (if required)
• Import declaration form (Summary Form)
• Customs bond
• Special tariff considerations

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COLLECTION DOCUMENTS

• Consignment
• Open Account
• Documents against acceptance D/A
• Documents against payment D/P
• Letter of Credit
• Cash in advance

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LETTER OF CREDIT

• A letter issued by a bank to guarantee payment to
  the seller on proof of shipment
• Irrevocable A L/C that is irrevocable.
• Confirmed A L/C that is endorsed by a second
  bank, that takes up the responsibility to pay the
  seller.

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• IRREVOCABLE
• LETTER
• OF
• CREDIT

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CONFIRMED L/C

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D/A AND D/P

• D/P Documentary upon Payment
• Documents are released to buyer upon payment.
• D/A Documentary upon Acceptance
• Documents are released to buyer upon his
  acceptance.
• D/A is like open account.

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DOCUMENTARYCOLLECTION