The document discusses various export/import procedures and documentation. It explains terms like FOB, CIF, and CF that specify how transportation costs are allocated between buyer and seller. It also outlines key export documents like the shipper's export declaration and commercial invoice, as well as import documents such as the import license and declaration form. Different payment methods for international trade like letters of credit, open accounts, and cash in advance are also summarized.

1. EXPORT/IMPORT PROCEDURES
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Dr.G.Sivakumar
Associate Professor
Management Department
Sri Ramakrishna College of Arts and Science
Coimbatore - 641 006
Tamil Nadu, India

2. FREE ON BOARD
 Cost of freight insurance to a certain point in the transportation link
(usually within theexporting country) is included in the sellers
price.
 Buyer must pay for freight beyond that point.
 Specification of fob location is critical.
 Ex-factory, Ex-city, Ex-port.
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3. CIF COST,
INSURANCE, FREIGHT
 Cost of freight and insurance to a port in theimporting country is
included in the sellersprice.
 Buyer must pay for freight beyond the port.
 Specification of CIF location is useful.
 Ex-port.
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4. CF COST FREIGHT
 Cost of freight to a port in the importing country is included in the
sellers price.
 Buyer must pay for insurance from the originating point and freight
beyond the port.
 Specification of CF location is useful.
 Ex-port.
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5. LANDED PRICE
 Usually refers to the ultimate cost of the product to the buyer at his/her
place of business after paying for cost, freight, insurance,
customs fees and duties.
 Useful benchmark for comparing quotes from
different suppliers.
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6. EXPORT LICENSE
 VALIDATED LICENSE
 GENERAL LICENSE
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7. IMPORT LICENSE
 THE IMPORTER MAY NEED TO OBTAIN AN IMPORT
 LICENSE.
 MAKE SURE YOUR BUYER HAS ONE IF NECESSARY.
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8. EXPORT DOCUMENTS
 Shippers export declaration with Export license
 Commercial (and Consular) Invoice
 Bill of lading (airway bill)
 Packing list
 Insurance certificate
 Special purpose certificates
 Ex Country of origin, Quality, Standards, etc.
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9. IMPORT DOCUMENTS
 Import license (if required)
 Import declaration form (Summary Form)
 Customs bond
 Special tariff considerations
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10. COLLECTION DOCUMENTS
 Consignment
 Open Account
 Documents against acceptance D/A
 Documents against payment D/P
 Letter of Credit
 Cash in advance
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11. LETTER OF CREDIT
 A letter issued by a bank to guarantee payment to
 the seller on proof of shipment
 Irrevocable A L/C that is irrevocable.
 Confirmed A L/C that is endorsed by a second
 bank, that takes up the responsibility to pay the
 seller.
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