Hard core practice and tools of export and import business
Export-Import business is moving of product/service from one nation to other. Seller is exporter and buyer is importer. Deals can be categorized in flowing types:-
Product type: Commodities, Grains, Mines, Minerals, Metals, Oil, Petroleum, Finished product, raw ore, Jewelries, Stones, Scraps etc.
Packaging Type: Bulk, Container, Box Packaging, Piece packaging, Refills, Cartoon, Bundle, Bag etc.
Contract type: Direct dealing between buyer and seller, Mandate, Trader, Intermediaries, consultant.
Approach Type: Online, Liaison, Direct.
Buyer issues purchase letter, which are termed by Letter of Intent, Letter of Intent LOI etc. Buyer and seller may issue Letter of Mandate to their associates for processing documentation on behalf of them. Seller may accept this LOI with amendment and revert with Soft offer. Draft copy of these LOI and Soft offer is exchanged first for negotiating terms and condition near buyer and seller. On receipt of Soft offer, buyer may issue Irrevocable Confirmed Purchase Order ICPO with banking details and soft probe permission, either attested by bank attorney or not as per demanded by seller on soft offer along with bank comfort letter BCL, Fund proof, Bank readiness letter BRL etc. and Invitation request letter for Table talk meeting TTM. Seller may sign the ICPO and return with Full Confirmation offer, Invitation letter and signed draft contact copy of sale purchase contract agreement included with clause of none circumvent non- disclosure agreement and irrevocable mutual fee protection agreement NCND cum IMFPA. Buyer can sign the sale purchase agreement SPA and send hard copy by DHL or prime courier, soft copy by email and from their bank to seller bank along with set of FCO, sellers signed ICPO and fund proof with readiness of releasing payment instrument for the discussed deal on receipt of Performance guarantee bonus PGB from seller bank. Seller bank may submit PGB and their document in evidence of production and supplying capacity. Buyer bank on satisfaction of the received document does open the payment instrument through money transfer swift. These are carrying vocabulary of several words like MT799 or MT760 or as per banking, country, party’s negotiation of irrevocable, confirmed, spot, discountable, nontransferable, divisible, stand by letter of credit, bank guarantee, MTN, Bond, DLC etc. Seller get the payment instrument of LC discounted from their bank against disclosed terms at SPA on day to day basis stock storage and production evidence copy, weight report, quality qualifying certificate etc. up to committed period of delivery shipment schedule. Cargo can be transported by local tipper, rail rack, truck, small barges, from production warehouse to port plot or transit point logistic can be carried by stevedore to load in to chartered ship vessel by anchoring cranes or manual from jetty to port and dolphin points under loading schedules from the time of anchoring of vessel with target to avail bonus with fast loading rate. The SGS, QSS and other standard quality certifying agency will approve the quarantine standard of contract quality and weight report. With these formalities, the vessel get Bill of Leading BL from port authority to departure for destination port and vessel is sailed in to ocean. Up to this moment, the deal is termed as free on board FOB. PGB are forfeited by buyer on delay of shipment schedule at this BL period. Ship will reach at destination port at expected time of arrival ETA date. The buyer company generally appoint their quality certificate agency for final quality certification for actual quarantine certificate and bonus and penalty of on grade specification are charged from this standard as per negotiated by two party on SPA. CIQ amount returns to the buyer after adjusting price deference due to these specifications deference from SPA.
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