CERTIFICATION & INTERNATIONAL

TRADE PROCEDURES
EXPORT PROCEDURES AND
PRACTICE

Day 2 Slides 2007/version1

CERTIFICATION & INTERNATIONAL

TRADE PROCEDURES
INTRODUCTION TO EXPORT RULES,
TERMS & DOCUMENTATION
Incoterms
F Methods of Payment
F Methods of Transport
F Documents
F HM Revenue & Customs (HMRC)
F

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Incoterms
Every international sales contract should
include an Incoterm.
There are 13 Incoterms.
Define:who arranges pays for what
u where risk passes
u

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The Thirteen
Incoterms: EXW (Ex works)
FCA (Free Carrier)
FAS (Free Alongside
Ship)

FOB (Free on Board)

CFR (Cost and Freight)
CIF (Cost, Ins and
Freight)

CPT (Carriage Paid To)

CIP

(Carriage & Ins Paid

To)

DAF (Delivered at
Frontier)

DES (Delivered Ex Ship)

DEQ (Delivered Ex Quay)
DDU (Delivered Duty
Unpaid)

DDP (Delivered Duty

Paid

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CERTIFICATION & INTERNATIONAL

TRADE PROCEDURES
F

Methods of Payment

Cash in Advance
Open Account
Bills of Exchange
Letter of Credit

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CERTIFICATION & INTERNATIONAL

TRADE PROCEDURES
F

Cash in Advance
You receive the money in advance.
You then forward Customer goods.

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Open Account
You forward goods to Customer
He pays in on receipt of goods
30/60/90/180 days

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F

Bills of Exchange
A you owe me note
Sent to Customers Bank with export
documentation through banking system.
Customer pays or accepts the Bill of
Exchange then gets goods.
Can be at sight or 30/60/90/180 days.

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Letter of Credit
Customer opens L/C through his Bank.
L/C lists
description of goods
u documents required
u how they should be made out
u amount of money to be paid
u latest shipment date
u latest date documents can be presented
u

Original L/C passed to Seller through

banking system.

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Letter of Credit
Provided Seller presents documents in
conformity with Letter of Credit he will be
paid.
Letters of Credit often request Certificates
of Origin.

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Methods of Transport
Road
u Rail
u Air
u Sea
u A Combination (Multi Modal)
u

Each form of transportation has its own

special transport document.

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CERTIFICATION & INTERNATIONAL

TRADE PROCEDURES
F

Documentation
Commercial Documents
Transport Documents
Official Documents

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CERTIFICATION & INTERNATIONAL

TRADE PROCEDURES
F

Commercial Documents

Pro-Forma Invoice
Invoice
Packing List
Weight Note

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F

Transport
Documents:

CMR Note
Bill of Lading
Airway Bill
CIM Note
Certificate of
Shipment
Standard Shipping
Note

Dangerous Goods
Note
Export Cargo
Shipping
Instruction
Insurance
Certificate

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Official Documents

Certificate of Origin
C88 or SAD Customs document
Consular Invoice
Legalised Invoice
EUR1 or ATR Movement Certificate

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HM Revenue & Customs (HMRC)

Rules governing export from UK

Overseas Customs Authorities

Rules governing import at overseas

destination.

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Export from UK
For movement to other EU destinations, no
documents needed for customs unless
goods are restricted.
Intrastat Return required monthly if EU
exports exceed 260K per annum.
For movement to third countries C88 or
SAD document required.

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Import at Overseas Destination

Different requirement for :different countries
u different products
u

Documentation will be required to show any

mandatory statement.
Check Tates/Croners.

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