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Third Session : Presentation on (Export/Import Documentation Incoterms and procedures of Export /Import by Rajan Sharma. Objective of this Class:. Acquaint the participants with the following: a. Document required for export and Import b. Import and export procedure - PowerPoint PPT Presentation
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Third Session :Presentation on (Export/Import Documentation Incoterms and procedures of Export /Importby Rajan Sharma
Objective of this Class:
Acquaint the participants with the following:
a. Document required for export and Import
b. Import and export procedure
c. Choosing the right means and mode of transportation
d. International Incoterms and its implication in business contract and negotiation.
e. Packing ,warehousing and distribution.
f. Problems in shipping out of Nepal
Raw materialssupplier
Final consum
er
Retailer Component manufactur
er
Assembler
Logistics: transport, storage, packing and
handling
An example of a simple supply chain
IN THE NEPALESE CONTEXT:
The right type(s) of material(s)
In the right quantity(s)
To the right location(s)
At the right time(s), and
For the right cost
Increasingly, a sixth “right” must be added
Delivered with the right tailored services
What is Logistics ?
It generally involves all activities involved in securing:
What does Each Incoterm determine ?
When and where the seller provides the goods to the buyer and when and where the buyer is obliged to pay the contracted price
Obligations for export/import licences, duties, taxes, etc.
Obligations to arrange and pay for transportation and insurance
Conditions for delivery by the seller and acceptance by the buyer
Allocation of responsibility for risk of loss or damage
Allocation of costs associated with movement of the goods
Provisions regarding notices of delivery or dispatch of the goods
Proof of delivery, transport documents or electronic messages
Requirements of seller to check quantity & conformance of goods with the contract and to provide suitable packaging and markings
Obligations of mutual assistance, information and documentation
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Incoterms are grouped into four categories:
ITC
“E” Terms - Ex-works
“F” Terms - Main carriage not paid by seller
“C” Terms - Main carriage paid by seller
“D” Terms - Delivered on arrival
Incoterms – Point of delivery of the goods and transfer of risk
E EXW Ex worksUpon delivery of goods at the seller’s premises
(named place)
FCA Free carrier Upon delivery of goods to the carrier(named place)
FAS Free alongside ship
Upon delivery of goods alongside ship (namedport of shipment)
F
FOB Free on board When the goods pass the ship’s rail at the namedport of shipment
CFR Cost and freight When the goods pass the ship’s rail at the port ofshipment
CIF Cost, insurance andfreight When the goods pass the ship’s rail at the port of
shipment
CPT Carriage paid to
Upon delivery of goods to the carrier(named place)
C
CIPCarriage and insurance paid to
Upon delivery of goods to the carrier(named place)
DAF Delivered at frontier
Upon delivery of goods at frontier (named place)- not unloaded
DES Delivered ex ship
When goods are placed at the disposal of thebuyer on board the ship (named port of
destination)
DEQ Delivered ex quay
When goods are placed at the disposal of thebuyer at the quay (named port of destination)
DDU Delivered duty unpaid
Upon delivery of goods (at named place ofdestination) not cleared for import and not
unloaded
D
DDP Delivered duty paid
Upon delivery of goods cleared for import (atnamed place of destination), duty paid but not
unloaded
Incoterms – Point of delivery of the goods and transfer of risk
DELIVERY and TRANSFER OF RISK can take place at many points between the seller’s premises and the
buyer’s premises
BuyerSeller
EXW FCA
CPT
CIP
FOB
CFR
CIF
FAS DES DEQ DDUDDP
Waterborne transport only
DAF
Cus-toms
Transport by land
Cus-toms
Cus-toms
Cus-toms
TRANSFER OF COSTS takes place at points that are sometimes
different
BuyerSeller
EXW FCA
CPT
CIP
FOBFAS DES DEQ DDUDDP
Waterborne transport only
DAF
CFR
CIF
Import clearance costs on account of the buyer
Export clearance costs on account of the seller
Transport insurance costs on account of the seller
Unloading costs on account of the seller only if in its contract of carriage
Transport by land
**
*
Cus-toms
Cus-toms
Cus-toms
Cus-toms
DAF terms are commonly used for land transport
Customs Customs
COUNTRY OF EXPORT COUNTRY OF IMPORT
Delivered at frontier, export customs cleared
DAF
INCOTERM used in the Sales Contract
Contract of carriage
Custom & practice of trade
The role of the Incoterm used and custom & practice of the trade
in establishing the contract of carriage
Transport Operator(s)
BuyerSeller
ITC
Freight Forwarders Responsibility and Duties:
Duties and responsibilities of the freight forwarding agent when contracted by the shipper(who may be the exporter or importer depending on the Incoterm used):Advise on the most appropriate mode of transport.Arrange reservation of space on a vessel, train or aeroplane.
Take delivery of the goods.
Pack products into containers or onto pallets.
Store goods in transit (before loading on board).
Insure the cargo.
Weigh and measure the goods.
Prepare loading and, if necessary, transhipments.
Transport the goods to a named port or airport of origin.
Freight Forwarders… cont..
Duties and responsibilities of the freight forwarding agent when contracted by the importer (whether or not the importer is the shipper):
Follow-up on the movement of the goods.
Receive and control documents related to the goods.
Ensure customs documents are prepared in advance.
Take delivery of the goods.
Check on goods storage during transhipments.
Assist with customs clearance.
Deliver the goods to the consignee.
Export Documents: Letter of Credit/Advance payment certificate and
Covering letter of bank Invoice (Description of Goods and value per unit and
total. Packing list (Volume and weight break of each Pc) Certificate of origin and GSP Pan /Vat/Company registration certificate copy Authority Letter CTD ATA CARNET
Yellow paper (Custom declaration) Currency declaration Form Handicraft Certificate (for handicraft Goods) Visa in case of garments export Plant Quarantine certificate in case of Plants/Food
items Permission from department of Forestry in cage of
Forest product Certificate from Agriculture department in case of
agro products. Sample goods and special goods permission from
department of Customs ie: diplomatic /Personal effects
Human remains: Fumigation certificate for Agro products or wooden
goods.
Documents for Import Goods: Letter of credit with Covering letters from bank NTWCL Invoice Packing List Certificate of origin Bank forms, Custom declaration AWB/HBL or MBL ( Transport Documents) Permission Certificate from department of custom Permission Certificate from department of commerce
Authority permission by importer (consignee)Insurance covering paperDelivery Order paper from transporterCTD In case of Land Shipment: Mode and Means of Shipment and how to
choose the right mode and means of transport.Air/AirAir/SeaLand/sea.Airplane, Trucking, Train, Ship :
Payment methods
Letter of creditTelegraphic transferAdvance paymentCash against documents
Factors to be considered in the means and mode of transport:
TimeCostPlace of deliveryLoading pointTran-shipment pointCustoms point and infrastructure and cost.
Packing /Marks and Numbers :
DistributionWarehousing (storage)
It protects your product your during transportation. It protects your product your during transportation. It breaks down your product to sellable units (e.g. It breaks down your product to sellable units (e.g.
transforming staple goods into consumer units), transforming staple goods into consumer units), or it simply makes the product accessible to or it simply makes the product accessible to consumers.consumers.
It conveys a message to the buyer/consumer (e.g. It conveys a message to the buyer/consumer (e.g. advertisement or instruction for use etc.).advertisement or instruction for use etc.).
Traditional Distribution Systems
Factory Factory Factory Factory Factory Factory
18 routes
dispatchesper
Import
factory
PortFrontier Airport
Customs
Douane
Minimum of 6
Minimum of 3deliveries per
Factory Factory Factory Factory Factory Factory
12 routes
Maximum of 2dispatches
perImport
Maximum of 1
delivery perfactory
PortFrontier Airport
(B) Using cross-docking centres
CustomsDouane
Using Cross-docking Centres
Option A: Star delivery plan
100 km 100 km
160 km
A
B
C
D
Option B: Multi-point delivery plan
50 km
50 km
50 km
50 km
A
B
C
D
Document required for exporting to EU
GSP(Derogation)Other necessary quality certificationHealth and Sanitization certificateHACCPEnvironment issuesChild labor issues
Export procedure
Preparing shipmentHaulage , choosing the means and mode
of transport, sending pre-alert, issuing the right transport document, negotiation with bank,
Other document compliance.
Import Procedure:
Product findingPrice negotiationadding document cost, haulage cost,
customs cost, tax in the exporting country,Arranging shipping, information flow,
trans-shipment point procedure ,import procedure of the country. dealing with customs etc.
Problems:L/C ComplianceTransport Document ComplianceShipment dateL/C expiryDelivery problem/Delivery orderDiscrepancy due to transportation problemBank release.
Thank You for your Attention.
Any Questions ??????