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.