CUSTOMS AND FOREIGN

EXCHANGE OPERATIONS



Submitted to: Assoc.Prof.Glzar KURT

Furkan FDAN
Faculty of Business
International Business and Trade
2009434020


zmir, 2014
CUSTOMS AND FOREIGN EXCHANGE OPERATIONS
Q.1. Explain one of the trade transactions (export, import, customs, logistics operations, etc.)
of your company in detail (remember the cases, companies, products, countries that you work
in your company).
I am working at MSN Yldrm Custom Consultancy Limited Company. Our company serves
as consultant in foreign trade actions such import, export and logistics. MSN Yldrm Custom
Consultancy is working as official intermediary rather than exporter and importer. I will
explain one of export transaction between Turkish granite producer and exporter Company
and Italian importers in which our company served as consultancy. MSN Yldrm Custom
Consultancy did not give the names of these companies due to their ethic principles and I will
mention about them as just Turkish granite producer and exporter and Italian importer. I asked
deputy custom consultant of our company to explain all process of this export transaction
from beginning to end. Firstly, Italian importer contacted with Turkish producer to import
granite from Turkey. Italian importer asked price of 1000m
2
granite with Free on Board
(FOB) and Cost Insurance & Freight (CIF) incoterms. After that Turkish Company sought to
prices of insurance and freight to respond the requirements of CIF. These kind of companies
which are doing foreign trade generally have insurer and freighter that the company works
with them usually. And then, the Italian importer took the prices, they decided to CIF
incoterm. In the second step, Turkish Exporter invoiced the bill with approval of Turkish
Finance Office to start the export transaction and present it to customs. Also, FOB price of
goods needs to be written in invoice. Besides that total number of containers/packages, net
and gross weight of containers, payment methods such as cash against goods, cash against
documents, letters of credit, cash equivalent etc., which bank the payment will be done, and
name of producer need to be written in invoice without value added tax. In addition to this,
Turkish exporter prepared commercial invoice in English language with all information which
is written in the Turkish Invoice. And then, packing list was prepared to explain distribution
of goods such how many pack includes how much weights by Turkish exporter. After that
also transaction shipping order was prepared by Turkish exporter. Turkish exporter paid all
expense of customs and contact with transporter and paid all transportation expense from
loading point to port of destination. And then Turkish exporter informed that the approximate
arrival time to Italian importer. In that point, as MSN Yldrm Consultancy Company, our
business begun. Turkish exporter informed our company that the invoice with approval of
Turkish Finance Office, commercial invoice in English, packing list either in English or in
Turkish, shipping order which includes name of importer company, the address of destination
point, total weight that is loaded to truck, total number of packages/containers and type of
delivery and loading time of goods to truck. The goods loaded to truck on Friday. Custom
Consultancy prepared all necessary certificate and created customs declaration draft according
to invoice which includes some details of importer, payment method, shipping order, route
etc. And then, Custom Consultancy Company prepared ATR certificate which is circulation
of goods certificate according to free trade agreement between European Union and Turkey
and country of origin certificate due to this proposal is ordered by importer. After creation of
customs declaration draft, this declaration was presented to Chamber of Commerce with
invoice with approval with Turkish Finance Office to take approval of Chamber of
Commerce. After this step, ATR circulation of goods certificate needs to be endorsed by
Customs office by presenting ex number in certified declaration. Henceforward, Custom
Consultancy declared shifts to customs office due to transactions will continue after working
hours and it paid expenses. Invoice in Turkish, packing list and power of attorney which is
given by Turkish exporter, were added to declaration. After endorsement of ATR circulation
certificate of goods, declaration was presented to customs registration service. Customs
registration service checked all documents which was presented by custom consultancy
company, and it started to acceptance transaction of declaration. Hereupon, line condition of
declaration was identified that includes control of documents or physical control. Our
declaration was decided to do physical control and then customs officer asked customs
consultant to come customs for controlling. Containers were opened and controlled
physically and compared with packing list by red line customs controller officer. Goods were
controlled and approved. Declaration was signed and allowed to move to Italy by red line
controller officer. Thereafter, the declaration was presented to administration of customs and
it was received by shipping agent, and then shipping agent started to do departure
transactions. In conclusion, our customs consultancy company delivered ATR circulation
certificate of goods, commercial invoice that was sent by exporter, packing list, country of
origin certificate to shipping agency. Finally, shipping agency deliver these documents to
truck driver who will present to customs which are on the route and goods are ready to export.
Q.2. What are the personal requirements/capabilities needed to be successful in your company
(analyze the duties and responsibilities of the workers in the company and write a report about
the capabilities)?
Firstly, to work for customs consultancy company, the people have to be graduated from
some specific departments in collage such as business administration, economy, public
administration, labor economics and industrial relations, or foreign trade, export-import,
customs administration according to customs office. After this, they start to work in customs
consultancy company as trainee during a year. Hereafter, they need to pass exam of custom
consultancy which is made by the undersecretariat of customs. After passing this exam,
workers responsibility increases due to they are responsible for all transactions they made.
Firstly, they have to be really carefully while they are examining or analyzing the documents.
Whether they are not carefully enough, it might be ended even in jail or their certificate might
be taken back from them. In addition to this, they have to use computer very efficiently and
usefully as it is required most of works. They have to obey and respect ethic rules. They need
to have ability to speak at least one foreign language. Besides that, they have to use Turkish
efficiently due to most of times they need to write some letters, mails, and petition or make
phone conversation. That means they need to have some communication abilities with other
people. They need to be honest towards the people and be patient. Finally, to work for custom
consultancy company requires lots of ability as it is mentioned about before, and workers
need to apply their experience to the work.