THE INTERNATIONAL TRADE TRANSACTION

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THE INTERNATIONAL TRADE TRANSACTION
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THE INTERNATIONAL TRADE TRANSACTION

• THE BASIC MODEL
• 1. Negotiate Terms of Sale
• 2. Issue Purchase Order
• 3. Ship Product to Importer
• 4. Send Documents
• 5. Clear Customs Deliver Product
• 6. Make Payment

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THE INTERNATIONAL TRADE TRANSACTION

• 1. NEGOTIATE TERMS OF SALE
• Final Agreement Includes
• price - packaging
• quality - insurance
• quantity
• time place of delivery
• payment method
• inspections

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THE INTERNATIONAL TRADE TRANSACTION

• ADDITIONAL CONTRACT PROVISIONS
• 2. ISSUE PURCHASE ORDER
• 3. SEND DOCUMENTS
• SHIPPING AND DELIVERY INSTRUCTIONS
• Shipping Deadline
• Excusable
• Inexcusable

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THE INTERNATIONAL TRADE TRANSACTION

• DELIVERY INSTRUCTIONS
• INCOTERMS
• 6 GROUPS OF INCOTERMS
• EX POINT OF ORIGIN
• ex works
• ex factory
• ex mill
• ex warehouse
• SELLER MUST
• BUYER MUST

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INTERNATIONAL TRADE TRANSACTION

• F.O.B. (free on board)
• ownership transfer evidenced by a clean bill of
  lading
• SELLER MUST
• BUYER MUST

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INTERNATIONAL TRADE TRANSACTION

• F.A.S.(free alongside)
• sellers obligations are fulfilled when goods
  place alongside ship buyer is required to clear
  goods for export.
• SELLER MUST
• BUYER MUST

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INTERNATIONAL TRADE TRANSACTION

• C F (cost freight)
• sellers price includes cost of transport but NOT
  insurance
• SELLER MUST
• BUYER MUST

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INTERNATIONAL TRADE TRANSACTION

• C.I.F. ( Cost, Insurance, Freight)
• SELLER MUST
• BUYER MUST
• EX DOCK
• SELLER MUST
• BUYER MUST

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INTERNATIONAL TRADE TRANSACTION

• PACKAGING FOR EXPORT
• PURPOSE
• UNIT LOAD SYSTEM
• SHIPPING MARKS

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INTERNATIONAL TRADE TRANSACTION

• EXPORT SHIPPING DOCUMENTS
• DOCUMENTATION
• Two Categories
• SHIPPERS EXPORT DECLARATION
• EXPORT LICENSE
• MARINE INSURANCE POLICY
• CERTIFICATE OF ORIGIN
• CONSULAR INVOICES

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INTERNATIONAL TRADE TRANSACTION

• BILLS OF LADING
• FUNCTIONS
• TYPES
• Straight
• Order
• other

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