This document discusses important aspects of export orders and documentation for garment units. It outlines key elements of sales contracts such as product specifications, quantities, prices, delivery dates and payment terms. It also describes important checks to be made when receiving a letter of credit, including ensuring correct pricing, quantities, validity dates and shipment details. Finally, it discusses preparing shipments by properly packing, labeling and documenting goods as well as obtaining necessary inspection reports and insurance policies and preparing documents like invoices and packing lists for processing payments.

1. Export Merchandising and
Trade Documentation
(For Garment Units)
LECTURE # 2
BY
J.N.VOHRA
B.TEXT, M.TECH, F.I.E,C.ENG., M.I.M.A, MPMA

2. Important Aspects of Exports Orders Received
y Standards and specifications of the styles ordered
y Quantity of each style with size and colour breakup
y Total Value of the Contract
y Terms of Payment, amount/mode & currency
y Terms of Delivery
y Insurance clauses
y Period of Delivery/Shipment
y Packing, Labeling and Marking requirements
y Inspection requirements
y Other Documentary Requirements

3. Sale Contract
Buyer (importer) and the seller (exporter) reach to an agreement
(sales contract) on following points.
y Quantity of garments with colour and size assortment
y Detailed specifications (quality) of the garments
y Prices of the garments (FOB or C & f, or CIF)
y Dispatch dates of the goods
y Mode of transport of the goods (by Sea or Air)
y Mode of payments (as to how the importer will make payment to the
exporter)

4. L/C Check List
Detailed Checks to be made immediately after the
Letter of Credit is received:
y Letter of Credit? Confirmed and Irrevocable or
revocable
y Payment terms? At sight or at a later date.
y Is the value of the Letter of Credit correct?
y Is the value of the L/C is according to the prices
and quantities settled
y Check the validity dates of the credit.

5. L/C Check List
y Are the terms of delivery the same as you quoted?
(e.g. FOB,CIF),
y Is your company’s name and address spelt
correctly
y And are the buyer’s details similarly correct?
y Port of Shipment
y Last Date of Shipment
y Whether partial shipment/Trans-shipment
permitted or not permitted

6. Insurance Policies
y For Road Transport up to the port
y For Marine Insurance up to destination port
{ Individual Shipment Policy
{ Open Policy

7. Preparing Shipments
y Merchant must be aware of some basic
requirements. It is important that exporters ensure
that the merchandise is;
{ Packed correctly so that it arrives in good condition;
{ Labeled correctly to ensure that the goods are handled
properly and arrive on time at the right place;
{ Documented correctly to meet domestic and foreign
government and banking requirements.
{ Insured against damage, loss, pilferage and delay.

8. Preparing the documents for shipment
y Getting the shipment checked for quality and obtaining
the inspection report from the inspecting
person/agency
y Approving the shipments after quality inspection
report
y Preparing invoices, packing lists, and quality check
reports
y Following the instructions of the buyers regarding
dispatch instruction
y Passing on all the documents to the accounts section to
process the papers for obtaining payments as per the
terms of the buyer

9. Sample
Invoice

10. Packing List

11. Inspection
report

12. Thank You