GROUP MEMBERS

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M.OVAIS.SIDDIQUI (31492)
M.UMAIR IQBAL (26509)
HUMAYOAN MUSTAQEEM (27576)
ALI ASGHAR
REHAN
ALI
HASNAIN JUZER

Company, we visited ..

CUSTOM
CLEARENCE
Customs clearance work involves:
Preparation and submission of documentations required to
facilitate export or imports into the country.
Representing client during customs examination, assessment,
payment of duty and co taking delivery of cargo from customs
after clearance along with documents.

Documents involved in
Customs clearance are,
Exports Documentation:

Purchase order from Buyer

Sales Invoice
Packing List
Shipping bill
Bill of Lading or air way bill
Certificate of Origin
Any other specific documentation as specified
by the buyer, or as required by financial
institutions or LC terms or as per importing
country regulations.

CONTINUE
Imports Documentation:

Purchase Order from Buyer

Sales Invoice of supplier
Bill of Entry
Bill of Lading or Air way bill (HAWB/MAWB)
Packing List
Certificate of Origin
Any other specific documentation required by
the buyer, or financial institution or the
importing country regulation.

Form
of
Goods
Declaratio
n

Checklist of Documents for Import:

Submission of documents
Remittance telex
Payment done

LETTER OF CREDIT (LC)

Letter of Credit is an undertaking issued by a Bank (Issuing
Bank), on behalf of the buyer (the importer), to the seller
(exporter) to pay for goods and services provided that the seller
presents documents which comply with the terms and conditions
of the Letter of Credit

Types Of LC
1. Inland LC ( which is used within the
country )
2. Sight LC ( Credit limit not available )
3. Usance LC ( Credit limit available )

The Documentary Sale with a Letter of Credit

SHIP
SHIP // VESSEL
VESSEL
D
Importer
Account Party
(Buyer)

A
Sales Contract
CIF Port of Destination
CAD Irrevocable LOC

C
Issuing Bank

Exporter/
Beneficiary
(seller)

Advising,
Confirming,
or
Negotiating Banks

A. Sales contract calls for LOC

B. Application for LOC
C. LOC forwarded to beneficiary through advising bank
D. Documents prepared according to LOC -- goods shipped
E. Documents negotiated for payment against sight draft through negotiating or
confirming bank
F. Payment after documents checked for discrepencies

11

FOLLOWING A LETTER
OF
CREDIT TRANSACTION
Buyers Application and Contract with the
Issuing Bank.
It is up to the buyer to apply for a letter of credit
from a bank.
LOC contains instructions, terms, and condition to
release the money.
Buyers application for credit is a contract between
the buyer and the bank.

FOLLOWING A LETTER
OF
CREDIT TRANSACTION
Sellers Compliance with the Letter of
Credit.

Seller must read the terms and conditions of the LOC

very carefully before shipment or manufacturing of
product.
Is the LOC accurate? Does it reflect the terms and
conditions of the sales contract?

FOLLOWING A LETTER
OF
CREDIT TRANSACTION

Complying Presentation:

delivery of sellers
documents and draft to the nominated bank or directly to
the issuing bank. Contains:
All the required documents,
Within the time frame allowed and prior to expiry of the
credit,
With no discrepancies, and
Which complies with all other terms of the LOC.

FOLLOWING A LETTER
OF
CREDIT TRANSACTION
Examination of Documents and Discrepancies.
UCP allows up to five banking days to inspect.
Commercial Invoice: required by buyers, banks, and
customs authorities.
Bill of Lading: must be on board.
Insurance Policy (plus 10%).
Certificates of Analysis or Inspection.

Thank you..