Export import procedure

PRACTICAL APPROACH

Samples of documents are available at http://www.nguyenhoainam.info/modules.php?name=Files&go=showcat&cid=16

Summary of export-import procedure

Summary of export-import procedure

1 Seller and Buyer conclude a sales contract, with a method of payment, assumed: by letter of credit (documentary credit).

Principles of contract performance

- Real performance of contract - Specific performance of contract - Co-operative attitude

Summary of export-import procedure

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

Opening L/C - Conditions to applicant - Ground for the contents - Application form

Summary of export-import procedure

3. Issuing bank requests another bank, usually a correspondent bank in Seller's country, to advise, and usually to confirm, the credit.

Summary of export-import procedure

4. Advising bank, usually in Seller's country, forwards letter of credit to Seller informing about the terms and conditions of credit.

Time in payment of LC
TIME OF DELIVERY

Date of issuing

Date of delivery

min. 21 working days

Date of expiry

-Advising LC -Checking LC -Preparing the goods and delivery - Stand-by time

-Collecting documents -Preparing documents for payment -Presenting documents -Sending LC to issuing bank - Stand-by time

Example: A Vietnamese company exports to France, the delivery date is Dec 31, 2007
They need: - 48 hours for issuing bank opens LC and sends LC to advising - 24 hours for advising bank informs the LC to exporter - 20 days for exporter to prepare the goods and delivery - Stand-by: 10 days => Date of issuing LC: Nov 28, 2007

Time of LC: - 3 days for collecting related documents - 3 days for the exporter to present the documents - 2 days for the advising bank to keep and check the documents - 15 days for the advising bank to send the documents to the issuing bank in France - 15 days for stand-by => Date of expiry: Feb 2, 2008

TIME OF PAYMENT
* LC at sight

Date of issuing

Date of payment

Date of expiry

* Deffered LC

Date of issuing

Date of presenting docs & BE acceptance

Date of payment

Date of expiry

Date of payment

Summary of export-import procedure

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

Export license application

Decree 12/2006 ND-CP - Group of exporting prohibition - Group of exporting with license - Group of free exporting

Packing and marking

* Packing: + Outter:

bag

Drum

Crate Box

Barrel

Case Bale Roll

+ Inner
(tarpaulin) (wood shaving) (cardboard)

(foil) PP, PVC (oil), (grease) (waste paper)

Safe, economic and neat-looking

* Marking: - Information of shippers - Information of transportation - Special marks

* Marking: - Position:

Inspection
Purposes of inspection? Who carries out inspection? - Inspection for quantity/quality of contract goods -> conformity to the contract - Health inspection - Sanitary inspection

Carriage contract
When does the exporter have to deal with transportation? How does exporter deal with the transporter? - Liner contract -> B/L liner - Voyage charter -> Charter party B/L

Ocean Bill of Lading

Receipt for goods Evidence of the contract of carriage Document of title to the goods

Insurance contract
When does the exporter have to deal with insurer? How does the exporter procure with insurance contract? - Voyage policy v.s open policy - Risks cover

RI RO C BO HIM THEO IU KHON BO HIM HNG HA CA HIP HI LUN N (A), (B), (C) 1.1.1982
* Tn tht, tn hi hp l quy cho: -Chy, n -Tu thuyn mc cn, nm cn, chm, lt -Phng tin vn ti lt hay trt ng ray -m, va ca tu, thuyn, phng tin vn ti vi cc vt th khc khng phi l nc

C-D hng ti cng lnh nn

* Tn tht, tn hi gy ra bi: -Hy sinh tn tht chung -Vt hng xung bin -ng gp tn tht chung -Chi ph cu h

-Trch nhim trn c s m va hai bn u c li

-ng t, ni la phun, st nh -Cun xung bin -Nc bin, sng, h xm nhp vo tu, thuyn, phng tin vn ti, container hoc ni hng -Tn tht ton b ca bt k kin hng no b ri mt khi boong tu hoc b ri trong qu trnh xp, d hng t tu hoc s lan -Thi tit xu -Hnh ng sai tri -Cp bin -Cc ri ro c bit

Customs clearance
* Clearance procedure:

Customs clearance
* Documents required: + Clearance form + Contract + Commercial invoice +

C/O application
Certificate of Origin (C/O): document that certifies a shipment country of origin.

Purpose of C/O application? Who issues C/O? Main types of C/O in Vietnam?
Form A: GSP Generalized System of Preferences Form B: as required by importer Form D: CEPT Common Effective Preferential Tariff

Delivering the goods to carrier

Certificate of Origin (C/O): document that certifies a shipment country of origin.

Purpose of C/O application? Who issues C/O? Main types of C/O in Vietnam?
Form A: GSP Generalized System of Preferences Form B: as required by importer Form D: CEPT Common Effective Preferential Tariff

Delivering the goods to carrier

* Sea transportation not in container

1. Making cargo list

Carrier

2. Sending cargo plan

Shipper

6. Changing MR for BL 4. Loading on board (tally sheet) 5.Getting proof of loading (mates receipt)

3. Contacting for information

Port operator

Delivering the goods to carrier

* Sea transportation full container (FCL)

1. (cargo list) 2. Booking (booking note)

Shipper

3. Container allocation & seal 6. Issuing BL

Carrier

4. Packing, customs clearance 5. Getting received for & delivery shipment doc

Container yard - CY

Delivering the goods to carrier

* Sea transportation not full container (LCL)

1. Booking (booking note) 3. Issuing House BL

Shipper Consolidator

2. Delivery

Container Freight Station - CFS

Delivery the goods to carrier

* Air transportation - Booking - Delivering to an airport-cargo service - Customs clearing - Getting AWB (MAWB/HAWB)

Summary of export-import procedure

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

Drawing B/E
Bill of Exchange: An unconditional order issued by exporter which directs the recipient to pay for a fixed sum of money

IMEXCO HCMc exported to MOIJER Rotterdam a shipment of USD 100,000 under the commercial invoice no. V6/80/4500, dated Sep 15, 2002. The payment was arranged by the irrevocable, without recourse L/C no. 40/SX 65 issued on Aug 15, 2002 by Eurobank-Rotterdam. Term of payment is 90 days on the presentation of required documents. The advising and negotiate bank is Vietcombank HCMc. On Sep 20, 2002, IMEXCO drew the draft for payment.

No .

BILL OF EXCHANGE 200. For At .... sight of this FIRST Bill of Exchange (Second of the same tenor and date being unpaid). Pay to the order of ................................... the sum of .. Value received as per our invoice(s) no. .. dated .. Drawn under . Confirmed/irrevocable/without recourse LC dated . To:

Summary of export-import procedure

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

Summary of export-import procedure

8. Bank, if other than the issuing bank, sends the documents and draft to the issuing bank.

Summary of export-import procedure

9. Bank examines the documents and draft for compliance with credit terms. If complied with, Seller's draft is honored.

Summary of export-import procedure

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

Summary of export-import procedure

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

Receiving the goods from the carrier

* Sea transportation not in container

1. Sending (Arrival Notice) 2. Exchanging BL for - DO

Shipper Carrier

ods, o g e h ing t v i e R, c O e C ( g 3. R n a ki m , g n i lear OC) R O R CSC,

Port operator

Receiving the goods from the carrier

* Sea transportation full container (FCL)

1. Sending (Arrival Notice) 2. Exchanging BL for DO

Shipper

Carriers agent

oods, g e h t g n i 3. Receiv king docs ma clearing,

Container yard - CY

Receiving the goods from the carrier

* Sea transportation not full container (LCL)

1. Sending (Arrival Notice) 2. Exchange HBL for DO

Shipper

Consolidators agent

3. Receiving the goods, clearing

Container Freight Station - CFS

Receiving the goods from the carrier

* Air transportation - Receiving documents - Receiving the goods from an airport cargo service - Customs clearing