INTRODUCTION

The information in this Bul etin is provided to as ist the potential KSA
Producer/Exporter to be aware of the criteria for:- (a) export documentation, (b)
payment methods, and (c) to understand the meanings and implications of the
various exporting terms used in daily international busines operations. The Bul etin is intended to as
ist the KSA company to bet er understand how to
addres legal documentary factors and understand the various payment mechanisms
- were it to expand its sphere of operations into international markets. These
factors could positively or negatively af ect the companys busines overal
prospects and operations. In this respect, before taking the decision to enter an
export market, it is es ential that local companies work out how best to me t the
legal documentary requirements of their targeted markets, as this could af ect
their future export viabil ty. It is, therefore, hoped that this Bul etin wil as ist local companies who
are lo king
at export markets as the next stage in their expansion and busines development
programme. The Bul etin provides basic information on several key aspects of
export documentary requirements and payment mechanisms, which it is hoped wil
provide some as istance to the KSA Producer/Exporter endeavours to export. LOGISTICS OF
EXPORTING
When preparing to ship a product overseas, the KSA Producer/Exporter ne ds to
be ful y aware of al the relevant requirements pertaining to export logistics which
ne d to be addres ed and relate to things such as packing, label ing, documentation, and insurance .
As the product wil be transported by external ship ers to overseas
customers, the company must fol ow al the ap ropriate ship ing requirements and
regulations to ensure that the product is:- cor ectly to me t local legal requirements
as wel as those
that are relevant in the target country.2
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ap ropriate man er, so
that it ar ives at its destination in a

ar ive on time and at its desired destination. Due to the variety of things that ne d to be considered
in the proces of physical y
exporting a product, in most cases it probably bet er for the Producer/Exporter to
rely on securing the services of an experienced international freight forwarder. Before ship ing, the
KSA Company should check with their export customer
regarding the required destination for the products. Customers often want the
purchased products to be ship ed to a fre -trade zone or a fre port where go ds
are exempt from import duties in their country. Final y, when deciding on the best
method of international ship ing, the KSA company may find it useful to consult
with its freight forwarder in order to ascertain the cost of shipment, delivery
schedule, and ac es ibil ty to the ship ed product by their export customer. Since
ship ing ves els are often used for large and bulky shipments, the
Producer/Exporter should reserve space on the required ship ing car ier wel
before actual shipment date - this reservation is cal ed the bo king contract. Types of Export
Documentation
As there is a profusion of documentary requirements for exporting, the
Producer/Exporters should seriously consider having the freight forwarder handle
the considerable amount of documentation that exporting requires, since the
freight forwarders are specialists in this area. In this respect, the documents
listed below are commonly used in exporting. However, not al of them wil be
required for every export sale and the freight forwarder can, therefore, advise
which of them specifical y are required in any individual circumstances the type of
documents required are dependent upon the local legal requirements as wel as the
regulations of the country of destination. The fol owing is a list of the various legal
documentation that can be used for exporting their descriptions and respective
details are provided in AP ENDIX 3:-



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Al documentation must be precise as slight discrepancies or omis ions could
prevent the product being exported, which would result in the Producer/Exporter
not get ing paid for it in certain circumstances this could also result in the
seizure of the company's products by Customs authorities in the importing country. It should be
noted that col ection documents (e.g. let ers of credit) are subject to
precise time limits and may not be honoured by the nominated bank if it is not
submit ed within the stipulated time period as they wil become out of date. The number of
documents the Producer/Exporter must deal with varies depending
on the destination country of the shipment, because each country has dif erent
import regulations, so the company must be careful to provide proper
documentation. If the KSA exporter does not rely on the services of a freight
forwarder, then there are several methods of obtaining information on foreign
import regulations from, amongst others, the fol owing sample sources: -
government and consulates can often provide
-by-country
regulations
af ecting air shipments and includes other information on tarif rules and
rates, transportation charges, air waybil information, and special car ier
regulations. The guidebo k can be obtained from Air Cargo Tarif , P. O. Box 7627, 1 17 ZJ Schiphol

provide publications that contain information on specific documentation
commonly used in international trade. NCITD can be contacted at, National Council, International
Trade Documentation, 350 Broadway, Suite 1200, New York, NY 10013, USA Telephone No: +001-
212-925- arches can often provide information in certain specific
ing/haulage company which
provides the required services to the destination country in question. Export Packing
Packing for export is dif erent from domestic packing as the packaging ne ds to be
designed to be more robust. The fol owing points should be kept in mind when
designing the ship ing case for the products:- - designing a export package to be strong is
es ential as it
should be borne in mind that while most general cargo is car ied in4
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containers, some is stil ship ed as bulk cargo. Besides the normal
handling encountered in domestic transportation, a bulk shipment moving
by ocean freight may be loaded aboard ves els using various methods (in a
net, by a sling, conveyor, chute, etc.), which can put added strain on the
package. Once in a ship's hold, the package may also be stacked one on
top of the other, or come into violent contact with other go ds during the
voyage. Also handling facil ties overseas may be les sophisticated than in
the KSA and the cargo could end up being drag ed, pushed, rol ed, or
drop ed during unloading, or while moving through customs, or in transit
to the final in- - can also be a problem because a ships cargo is subject
to
condensation even in the hold which may be equip ed with air
must
take into
ac ount the weight that wil be car ied within it and be designed
ac ordingly to protect the product during the period of ship ing and

the packaging ne ds to be designed to minimise the risk of los or damage
to the product. Since proper packing is es ential in exporting, it is often the case that the
customer specifies his packing requirements. If he does not specify the type of
packing require, then the Producer/Exporter ne ds to ensure that his products are
packed with the fol owing points in mind: -
with adequate fil er
the container, regardles
of size, making
should be packed in ocean-going
containers, if pos ible, or on pal ets to ensure greater ease in handling at
both ends. Packages and packing fil er should be made of moisture-
can be avoided/minimised by having the case strap ed, sealed, and/or shrink-wrap ed, as this is an ef
ective means of deter ing theft. Apart from legal y me ting the packages label ing requirements,
mentioning anything on the cases that could identify it to pilferers should
be avoided.5
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Normal y, air shipments require les heavy packing than ocean shipments, but it
must stil be adequately protected. In many instances, standard domestic packing
is ac eptable, especial y if the product is durable and there is no concern for
display packaging. In most other instances, high-test (at least 250 lbs/sq.in.)
cardboard or tri-wal construction boxes should be adequate. For both ocean and air shipments,
freight forwarders and shipment car iers can
advise on the optimum packaging requirements - marine insurance companies can
also be sometimes contacted for advice. The best advice that can be given to a
Producer/Exporter is for the company to hire a profes ional organisation to
provide package services for export, if the exporter is not equip ed to undertake
this task. In many cases the freight forwarder can also provide this service, which
is usual y provided at a moderate cost. Final y, because transportation costs are determined by
volume and weight, special
reinforced and lightweight packing materials have be n devised for exporting. Care
in packing go ds to minimise volume and weight while giving strength may wel save
money while ensuring that go ds are properly packed. Export Label ing & Ship ing Marks
To ease the despatch of exported products, and their receipt in the country of
destination, specific label ing and marking are used on the export packages in
order:-
countries may require many dif erent types of markings to be on the
shipment package. To me t these requirements Producers/Exporters may ne d to
put some or al of the fol owing markings on their export packaging: -

and in the language of the country of destina
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International Maritime Organisation - IMO). It is also worth noting that export marking should be ad
ed to the standard
information provided on a domestic bil of lading, which should show the name of
the exporting ship ing car ier and the latest al owed ar ival date at the port of
export. The Producer/Exporter should also include instructions for the inland
car ier to notify the international freight forwarder by telephone on ar ival of the
products at the port. Legibil ty of markings on the export packages is extremely important to prevent
misunderstandings and delays in shipment. Let ers are general y stencil ed onto
packages and containers in waterpro f ink. Markings should ap ear on thre faces
of the container, preferably on the top and on the two ends or the two sides. Any
old markings, if any, must be completely removed from the packages. In addition to the port marks,
customer identification code, and indication of
origin, the ship ing marks should also include the package number, gros /net
weights, and dimensions. If more than one package is being ship ed, then the total
number of packages in the shipment should be included in the markings. The
Producer/Exporter should also include any special handling instructions on the
packages. It is always go d idea to repeat these instructions in the language of the
country of destination. Standard international ship ing and handling symbols should
also be used in an ap ropriate man er. KSA companies may find that Customs regulations regarding
freight label ing are
strictly enforced in many export countries. If requested, most freight forwarders
and export packing specialists can sup ly neces ary information regarding specific
regulations.