Terminology of export and import-Part.3

Tariff Book

contains all the tariffs and other customs rules related to import (detailed for each product) applied by a country on its import. 

Quotas

The legal limit of imported goods with low tariff was negotiated in a trade agreement

Export quota

Is the rationing of quantities of goods permitted for export, the government is resorting to this procedure either for the purpose of supporting the control in order to avoid prices rising in the local market, or to take control of the goods for defensive purposes

Certificate of Analysis
a certificate requested for materials that need to be analyzed to determine the proportion of components and if it was valid or not like food and drinks, or if it was identical to the specifications & quality standards or not. The certificate must be issued by the specialized bodies such as laboratory.

Clearance Papers
Securities is given by the customs authorities at the port to the ship's captain to indicate that the ship has fulfilled its obligations and have the right to leave the port.

Customs declaration

Passage of goods imported or exported at checkpoints or customs clearance should be provided with permits to facilitate their passage, and customs declarations, several models commensurate with the duties specified.

Import License

Is a license or permit issued to the importer by a competent governmental authority that allows him to bring limited amounts of goods or specific goods, which cannot be imported unless such license.

It is a governmental tool to control movement of trade across national borders

And a mechanism to ensure that trade policies and its implementation are respected

Export License

A Governmental document that allows the exporter to export certain goods to another country.

Harmonized System (HS)
International classification system classifies goods traded internationally under unified symbol of commodity, where the materials are placed in groups according to the nature of the materials.

Note: Harmonized system founded due to several names of goods in each country and this surely affect tariff, therefore the harmonized system constructed to unify all of these names under one code (HS code) to be recognized globally for all countries and make import easier.

Rules of Origin

A set of rules contained in the commercial agreements to facilitate the identification of country of origin, where the advantage of determining the country of origin to obtain preferential tariff exemptions provided for the importer if it was mentioned in the free trade agreements

Customs Bond

is a pledge submitted by importers, owners of warehouses, transport companies and persons who import and handle goods subject to customs duties and the purpose of this pledge to protect Government rights during the existence of these goods in the warehouse or during the handling and customs clearance.

Custom Broker

A person who has a license to clear goods and do all transactions related to imported or exported goods in customs by arranging official transactions for goods imported and customs clearance papers, also preparing papers of exported goods to be submitted to the customs authorities, as well as documents required by the government authorities in foreign countries.

Customs Clearance
Are the transactions and formalities, which include payment of fees and highlight the documents required for customs clearance of goods imported after it’s enter customs checkpoint in the airport, or seaport 

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Import Export Busines -Videos

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what is an import export business?

An import export business  (international trade) is an exchange of goods & services across international borders or territories in most countries.

Trading overseas (import and export business) gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries or goods which has lower price or better quality. It is the reason why you can pick between a Japanese, German and American car.

As a result of  Import export business , the market contains greater degree of competition and therefore the most competitive prices, which bring home a cheaper product to the consumer
. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, stocks, and currencies. And Services are also traded: tourism, consulting, banking and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import .
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Import export business including two parties to make the exchange operation globally 

• Importer, is a party who needs to purchase goods or services
• Exporter ,a party who has goods or services

If you walk into a supermarket and are able to buy South American bananas, and Brazilian coffee, you are experiencing the effects of  Import and export business . also you will aware the meaning of importing and exporting.

1. Import
Retail store owners need additional products to sell so that they making a search to find their needs from foreign manufacturers, distributors, and other suppliers.

Some Advantages of importing
• increased product selection
• lower costs (competitive)

2. Export
Manufacturers can find new customers for their products in foreign countries & ship the goods and services out of the port of a country.

Businesses export their products and services for many different reasons, but generally, the benefits that can be achieved through exporting are:

• Promote business growth
• Exploit technology and expertise
• Enhance competitiveness
• Improve return on investment

Benefits of  Import export business :

• allows countries to participate in a global economy
• Enhances the domestic competitiveness
• Takes advantage of international trade technology
• Increase sales and profits
• Extend sales potential of the existing products
• Maintain cost competitiveness in your domestic market
• Enhance potential for expansion of your business
• Gains a global market share
• Reduce dependence on existing markets
• Stabilize seasonal market fluctuations

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10 tips to import safely

If you contact with a supplier by email or phone for the first time and sure you have no deal with that supplier before but only you have a site of his company and a contact person.

 How to be sure if the Exporter Company or factory is already exist!

1-    If you get the company of supplier “exporter” from a site provides online trade like alibaba, don’t give all trust even for the golden suppliers!

2-    Ask a friend,

If you have a friend in the exporter country you can give him all information related to the exporter company and ask him to check there if it was real

2-    Check the chamber of commerce in your country to know if the company of exporter is registered or not.

3-    Ask your embassy in the exporter country to provide you with any information concern the exporter company.

4-    There are an insurance corporations in your country , choose one and give them the information you have about the supplier company , and ask them to insure the product you will export !

The insurance company will request from you to give them a little time to check!

They will check the information you gave to them by their branch in supplier’s “exporter” country.

And if the company exist and has a good reputation they will accept to ensure the product, here you will know that the supplier is real.

6-    You can also check the ministry of trade and industry in your country

What after of being you sure that the company is already exist and have a good reputation?

7-    You have to sign a contract with the supplier to save your rights, and the contract must be certified from the chamber of commerce in supplier’s country.

8-     You have to try to pay money by LC “letter of credit” and not using TT “Money transfer”.

9-    If you couldn’t Use LC and the supplier insist to get money through TT then it will be better to visit the country of supplier and pay money by yourself, also don’t go back until they load goods on board.

     If you can't visit supplier's country you have to make an inspection certificate and it must be an international and trusted like SGS or TUV....,  in this case the inspector will visit the supplier and check goods then send you back a certificate of inspection if the product is identical for specifications or not.

10- Make an insurance policy by asking the supplier to give you the price CIF, or you can issue it in your country if the price was FOB.

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How to export and import?

IMPORT and EXPORT Steps

1. The Seller and the Buyer sign a sales contract, and mention method of payment in the contract by letter of credit (documentary credit) as the best way to save their rights.

2. The Buyer applies Letter of credit to his issuing bank, usually in Buyer's country, in favor of Seller (beneficiary).

3. The Issuing bank requests correspondent bank or advising bank (if it is possible directly to issuing bank) in Seller's country, to advice, and confirm the credit.

4. The Advising bank, in Seller's country, forwards letter of credit (LC)To inform the seller about the terms and conditions of credit.

5. If letter of credit terms and conditions conform to sales contract, Seller prepares goods and documentation, and arranges delivery of goods to carrier.

6.The Seller presents documents evidencing the shipment and draft (bill of exchange) to paying, accepting or negotiating bank named in the credit (the advising bank), or any bank willing to negotiate under the terms of credit.

7. The advising Bank examines the documents and draft for compliance with Letter of credit terms. If complied with, the bank will accept or negotiate.

8. The advising bank sends the documents and draft to the issuing bank.

9. The issuing Bank examines the documents and draft for compliance with Letter of credit terms. If complied with, the bank will ask the buyer to accept documents and pay for him.

10. All Documents release to the Buyer after payment or on other terms agreed between the bank and Buyer.

11. The Buyer surrenders bill of lading to carrier (in case of ocean freight) in exchange for the goods or the delivery order.

This operation of documentary between the issuing & the advising bank is an agreement between the seller and the buyer to be written as terms in LC (letter of credit).

The advising bank keep rights for seller in order not to deceive by the buyer and vice versa, the issuing bank guarantees all rights for the buyer to be not cheated by seller.

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