| In today's shrinking world, there is hardly | | | | |
| any business transacted which does not | | | | Shipment documents - a bill of lading is |
| require goods and services to cross national | | | | needed for sea shipments or an airway bill |
| shores. Import and export activity is routine | | | | when goods are sent by plane, as proof of |
| for many businesses, and the lifeblood of | | | | dispatch. |
| others. No doubt, you have used imported | | | | |
| materials in your company before, but if this | | | | Certificates of origin - some countries have |
| is the first time that you are importing or | | | | restrictions on the volume of business that |
| exporting something directly yourself, the | | | | can be done with other countries. |
| following checklist will help you. | | | | Alternatively, there may be tariff benefits |
| | | | accorded to goods from specific supply |
| It is said that international trade does not | | | | sources. In such cases, an exporter will need |
| deal with goods or services, but with | | | | to submit a Certificate of Origin, which is |
| documents. Strange, but true! The importance | | | | endorsed by a designated regulatory authority |
| of correct paperwork cannot be overstated | | | | or Chamber of Commerce. |
| when it comes to import and export | | | | |
| transactions. If you're the type who cannot | | | | Quality or inspection certificates - if the |
| abide paperwork, may we suggest that you hire | | | | buyer specifies an inspection prior to |
| someone who can! Documentation is crucial to | | | | shipment, be sure he wants to see some proof |
| international trade, and there's plenty of it | | | | of that on paper! |
| to deal with. | | | | |
| | | | Packing list - finally, something that makes |
| The documents required to successfully | | | | sense! How would you like to receive a |
| complete an import and export transaction | | | | container full of cartons with no clue as to |
| vary from country to country, but broadly | | | | which one contains what item? |
| they will cover the following: | | | | |
| | | | Invoice - but of course! Make sure you've |
| Purchase order - sure, this is a business | | | | written everything correctly, including the |
| requirement, but a purchase order may also be | | | | currency of transaction. |
| needed by the buyer or seller for arranging | | | | |
| finance. A bank may ask the importer for a | | | | Others(!) - these are specific requirements, |
| copy before it issues a letter of credit to | | | | and change from country to country. For |
| him, which will be used to pay the exporter. | | | | example, Australia has stringent quarantine |
| On the other hand the exporter might be able | | | | restrictions governing the trade of food and |
| to get financing from his bank, on the basis | | | | animal products. You would need to secure a |
| of a confirmed order (also called purchase | | | | permit, or subject your goods to an |
| order financing). | | | | inspection or both. |
| | | | |
| Letter of credit - this is used for making | | | | This might seem like a long list, but is in |
| payments for imported goods, once the | | | | no way exhaustive. That is why you need to |
| necessary documents are handed over (see, we | | | | hire someone who understands import and |
| told you they were important). A letter of | | | | export documentation, so that you can be sure |
| credit basically says that the importer's | | | | that your international business proceeds |
| bank guarantees to pay provided all the | | | | smoothly. |
| papers stipulated in it are in order. | | | | |