Indonesia Continuing Safeguard for Cotton Yarn

As my posting regarding safeguard for cotton other than sewing thread, Indonesia has applied a safeguard regulation since June 11, 2011 until three years later or on June 5, 2014. Now, this year is the last year for this safeguard rule.

However, in fact, according to investigation from government during applying the rule, the importation of cotton yarn other than sewing thread still in increasing trend, which taking detrimental impact to the companies in Indonesia. If the additional duty of safeguard to be removed, the disadvantages impact will be more increased.

Because of that reason, Government necessary to take the rule to be continued. The last result Government issued the new rule of safeguard for cotton yarn other than sewing thread. This rule has been issued on May 28, 2014.

The new amount of additional duty excluding the common duty is different from the last rule. Here the difference of additional duty between the old and new regulation:

On  2011 to 2014:

The first year: IDR 40,687/KGM.

The second year: IDR 38,144/KGM.

The third year: IDR 35,601/KGM.

On  2014 to 2017:

The first year: IDR 28,065/KGM.

The second year: IDR 25,522/KGM.

The third year: IDR 22,979/KGM.

This continuing of this new regulation actually pushed by many companies from Indonesia, which having the yarn cotton product. They worry to competitor from abroad, after they watched even though the additional duty has been applied to importation of cotton yarn, but the increase importation volume still can't be avoided. 

For us, this new regulation, of course, will effect to our price offer to buyer, and buyer will always search on finding the lowest price they can.

Documents Required for Shipment to Canada

Beside the common shipping documents required for exportation to other country such as bill of lading, some additional documents are needed to provide when we are going to export some goods to. Personally, I seldom handle a shipment to Canada, in fact shipment to Canada need more extra efforts to keep our exportation to be going on safety. I don't know whether buyers from Canada have the same rule or manual. As I have informed on previous posting, in handle an order form Canada need more efforts to pass the order to smooth condition due to low tolerance from buyer and fully of discount.

In this posting, I want to let you know about the require documents when we make a shipment to Canada:

1. Original and some copies of commercial invoice that indicating 'Standard Export packing'.
2. Certificate of origin. The type of this certificate of origin is Form B.
3. Beneficiary's certificate. This document created by seller or manufacturer and should be in signed condition. This certificate stating that production samples have been sent to applicant.
4. Applicant's letter to beneficiary that stating that sample was received.
5. Packing list in both original and photocopy.
6. Inspection certificate, which evidencing that goods have been inspected prior to on board date and ware found to be as ordered by applicant.
7. Canada customs invoice in both original and photocopy.
8. Bill of lading.
9. Textile declaration or single country declaration, which declare that all information stated on this document are true. The information marks, goods description, description of manufacturing, country of manufacturing, date of exportation, and materials are stated on.
10. Certificate of conformity. Beneficiary certifying that the goods or product meets the requirements pertaining to the Flammability Testing Standards established by the Customer Product safety Commissions under the Consumer Product Safety Improvement Act.

Penalties for Exportation to Canada

We, one of exporters from Indonesia, recently, has received an order from Canada. As usual, for the first order buyer gives a little quantity, and this buyer from Canada as well. The Buyer only gave us 2400 pieces as stated on the order sheet they given.

Buyer  have also sent us the manual for handling their order. When I read the manual until end of the page, I got some surprises when I read some penalty because of some conditions. This kinds of penalty is so high than we have ever. Here I will mention some conditions, which will bring us to take some penalties:

Late delivery.

The discount taken on late delivery, which divide to several interval:

•  6-10 days late from initial delivery. It will taking discount 10% from the total invoice.
• 11-15 days late form initial delivery. This condition takes us to pay air freight charges. It means that the shipment mode will be changed from by sea to air shipment under our account.
• 16-20 days late from initial delivery. The shipment will be by air prepaid or we'll pay the cost shipment until port destination, and additionally, buyer gets 15% discount from total invoice from us.
• 21-25 days late from initial delivery. We'll pay the air freight and buyer gets 20% discount because of this lateness.
• 26-30 days late from initial delivery. Because of this lateness, shipment will do by air prepaid or we pay the air freight and buyer gets 25% discount on invoice.
• 31 plus days late. We pay the air freight charges and the discount to become 50% from invoice.

Shortage and Overage.

The tolerance of shortage or overage buyer given is 5% from the initial quantity. If the shortage or overage out of tolerance, buyer will apply discount depending on the quantity of shortage or overage.

• 50% to 10%. This shortage or overage condition brings us to pay 15% from total amount of invoice.
• 10% to 20%. Buyer takes 20% discount from the total invoice from us if this shortage or overage happened.
• More than 20%. The discount will be 50% from the total amount of invoice, or the order will be cancelled.

Missing price tickets.

We'll pay US$0.50 for each price ticket missing.

Wrong retail price.

We'll be charged US$250.00 at minimum for wrong retail price. 

Wrong ticketing.

Wrong ticketing is when we are wrong on placing or attaching the ticket. For example, we attach size XL hang tag label on size L garment. We will pay US$250.00 for this.

Wrong packing list.

If the packing list differ from the goods shipped or received, US$500.00 will be applied to us as the penalty.

Wrong carton content.

If there is a discrepancy between carton marking and the carton content, we'll pay US$10.00 for each carton with a minimum of US$100.00.

Marking.

Charge for wrong carton marking is US$5.00 per carton.

Late shipping documents.

If buyer receive shipping document two days prior to ETA, we should pay US$1000.00 per shipment and US$500.00 per shipment for late document received one week after on board date.

Missing shipping document.

Buyer charges us US$500.00 per shipment if the shipping documents are missing or wrong.

Export to Japan : Outword Manifest 24 Hours Before Vessel Depature

This article I create for those who are starting export any goods to Japan. According to the mandatory implementation of Japan 24 Hours Rule, all shipper must send the actual shipping details or final data of shipping booking in advance to forwarder. In previous time before this rule implemented, we, shipper in Indonesia could provided the final data of our shipment to Japan on Friday for vessel departure on Sunday or Monday, but after the mandatory date of this rule, we can't do that.

Because of this rule, of course, shippers should provide the final data of their shipment to Japan in advance.

Here are some cut-off times for data  manifest I got from forwarder for direct shipment to Japanese port: 

Shipping line OOCL for destination Tokyo, Nagoya, Yokkaichi, and Kobe, which the shipment date on Wednesday, the cut-off final data of shipment is on Saturday or three days before sailing date.

Shipping line Wan Hai, for the same destination with OOCL, the cut-off for final data of shipment is on Monday at ten o'clock in the morning or two days before departure.

Shipping line MOL, the cut-off almost same with Wan Hai, this only two hours later then Wan Hai.

K'Line has two times departures in a week, one on Sunday and the second on Friday. For vessel departure on Sunday, the final data can be received until Wednesday at twelve o'clock in the morning. And for the Friday's vessel departure, the cut-off will be on Monday at twelve o'clock.

The last, for NYK shipping line has also two vessel departures in a week, Sunday and Friday. For the vessel departure on Monday, the final data for outward manifest limited until Thursday at fourteen o'clock. And for the vessel departure on Friday, the closing of final data for manifest is on Monday at twelve o'clock.  

This condition will brings to the higher cost production in our factory. To meet this new rule, production in a factory must add the production times or might be taking overtime, or a factory will open the additional worker.

Learning HS Code For Sweater

Each HS code determines what goods is about, and each goods has a specific HS code which different to each other. A HS code is containing ten digits numbers. For the first-sixth digits of an HS code will be same in all countries. And the rest digits will be different from one country to each other.

Now, we are going to learn HS code for sweater. Two things we should understand when we want to decide what the HS code of each sweater is to be. Firstly, we have to check the styling of the sweater. The following list will give you some examples of styles or design  I have ever seen:

1. Cardigan, jerseys, or sweater. This styles have the same HS code. The first- four digits of the HS code is 6110.
2. Dress pullover. This style will have 6104  for the first-four digits of the HS code.
3. Sweater for baby. Sweater for baby who the age is under 3 year old, the HS code is 6111. However, starting 3 year the HS code will be in 6110. Therefore, the age is determining of the HS code, too.

The second point we have to learn to determine HS code of sweater is its yarn. I mean what kind of yarn to be used for production of the sweater, or it’s usually called the composition. After we knew first-four digits of the HS code, the next step is understanding the composition. This composition is wrote on the care label, or also written on the order sheet. For example, 100% acrylic.

Herewith a list of HS code I have written on shipping documents:

• 6110.30, this is for cardigan, jerseys, sweater, which the composition is from synthetic fiber, such as acrylic.
• 6110.20, for the sweater that the yarns is made from cotton fiber.
• 6104.43, this HS code is for dress pullover, which the yarn’s composition from synthetic fiber.
• 6111.20, this HS code for baby sweater who the age is under 3 year old and the yarn composition for the sweater is 100% cotton.

The next digit of HS code of sweater after the first-six digits is might be different from one country to each other. For example, in France, 6110.30.9900, however, in Indonesia is to become 6110.30.0000 in the same product or goods.

Credit Note

Contrary with debit note, credit note is reverse form debit note. To make easy in understanding of credit note, I will give a sample in business nature.

A buyer send a package that containing some buttons. In agreement between buyer and shipper stated that all accessories and the courier fee are have to be covered by shipper. But, the fact that buyer provide the buttons and send the buttons to shipper by using a courier under buyer's account. Of course, all charges including buttons and its courier fee will have to return back to buyer by shipper.

In this case, shipper as a manufacturer or beneficiary party will issue a credit note. This credit note as notice that shipper will pay some amount as reimbursement to buyer. 

In issuing a debit note, we'll need the following information:

1. Beneficiary name and address. 

2. Beneficiary bank details.

3. Destination of the payment.

4. Credit note number.

5. Date of issue of credit note .

6. Description.

7. Total amount.

8. Term of payment.

Sometimes a credit note stating that beneficiary agree to pay the amount of credit note within a period of time, such as, 30 days after issuing date of the credit note.Usually, beneficiary creates a credit note with letter head inserted on.

Debit Note For Reimbursement

This posting containing my opinion based on my experience. If any differences meanings to this opinion of the debit note, I will be happy to take it to be a good reference. 

We create a debit note when we want to take reimbursement from any party, which we have paid any charge for. For example, a company send us a goods through any courier, which is using our account. As a result, the invoice of the courier charge will be going to us. Because the courier charges actually have to be paid by shipper, of course, we have to take our money back from the shipper. The way to do that, we need to create a debit note for shipper. Based on these debit note, shipper will return our money back by any method of payment as both parties agreed.

Contents of debit note is likely invoice. These contents are issuing of the debit note, payer, date of issue, debit note number, description of charge, amount to be paid, bank details including the account number, and signature.

However, sometimes a reimbursement inserted to another invoice. For instance, a buyer order some goods to us, let say sweater. When the goods are ready to export to buyer, shipper will issue the invoice or proforma invoice. If any amount should be returned to us, then we can also inserted to these invoice based on agreement between buyer and us. Therefore, we don't need to create a debit note in this case.

Notice For The Importation From Italy

I have ever many times importing yarns for knitting from Italy. This is we do according to buyer request for their order that were putted to our factory.  I thought our buyer from Japan like a luxury yarn with having a high price. The sweater usually has a hang tag that shows the composition and the yarn’s manufacturer.
 

We are not directly order the yarn to yarn’s factory in Italy, but buyer order the yarn to their agent in Japan, then the agent will order to Italy . I thought they have inserted the commission to the yarns price.
 

The yarn’s company we’ll send us the proforma invoice as their confirmation after we sent our purchase order (PO) to them. This proforma invoice isn’t the final quantity we will receive.
 

After the goods are being ready, they issue the packing list and invoice to be forwarded to us for our checking and payment settlement.
 

One thing made us surprise is the condition weight. The condition weight is around five percent from the net weight. So, we have to pay the additional weight for nothing. For example, the quantity or net weight on invoice is 2000 kilograms, but we have to pay 2050 kilograms. The 50 kilograms is the condition weight which we will never receive the goods.
 

Another thing that made us surprise is the term of shipment. For by sea shipment we usually prefer to take the FOB as the shipment term due to the local charges will be cheaper then CIF term. FOB is mean importer or buyer pay all transport charges starting from origin’s port. For example, if we agree the price is in FOB Genoa, the freight charges and the destination local charges will go to us. But, in fact, the last result is all charges starting from the factory will be going to importer.  In this case we may call the FOB Italy is the Ex-work.
 

The difficulty for asking them to provide the complete customs document is also happened. This is my experience, I have reminded them many times to provide all documents for the customs process, but, when the package comes, I found one of documents required is missing. Or sometimes we asking forwarder to send us the Bill of Lading, because shipper didn’t, then they only send another one. Of course, the courier fees for sending original Bill of Lading will be born to us.
 

The yarn’s supplier is also doesn’t cooperate concerning the type of move, I mean whether the shipment is using FCL or LCL. If you work in export and import world, you will learn what the volume is has to be FCL or LCL. I have twice reminded them for the cargo which having the volume or the CBM more than nine or ten, it should be arranged by FCL, otherwise we have to pay extra cost or high cost for the local charges at destination. But in fact, even we have the goods with the CBM around thirty eight, they do the shipment by LCL, then as the result we have to provide the additional cost for the local charges at destination.    
 

As the conclusion, we have to give extra effort when we order any goods from Italy. All things we need should be informed far away from the shipment and we have to remind them many times till we get what we want from them.

Case "TO ORDER OF SHIPPER" and "TO ORDER OF APPLICANT"

I have arranged the shipment to Japan for one of our buyer. We and the buyer agreed to use L/C for the order or trading. Before buyer instructs their bank to issue the L/C, they forwarded me the L/C draft for my checking.

During my reading and checking to the L/C draft, I found buyer wanted “TO ORDER OF SHIPPER “to be filled in the consignee’s column. This is making me to think two meanings when I instruct forwarder to arrange the B/L. The first meaning is "TO ORDER OF SHIPPER" wrote in consignee’s column. And the second meaning is TO ORDER OF our company name.

  

Finally, I decided the first choice or "TO ORDER OF SHIPPER" to be filled in the consignee's column on Bill of Lading. When I submitted all documents required to bank, Bank didn't found any discrepancy in Bill of Lading that I submitted to the bank.

To "TO ORDER OF APPLICANT" is something new for me and it’s seldom stated on an L/C. But, this was happened in our trade.

A buyer from Japan has changed their shipment manual concerning the consignee in Bill of Lading. They changed from "TO ORDER OF SHIPPER" becoming "TO ORDER OF APPLICANT". For our bank it’s something new, too.

I have followed the L/C, and I decided to fill in the consignee with "TO ORDER OF APPLICANT". Before the Bill of lading printed out, I have sent it to buyer to get their approval for the Bill of Lading content. Then buyer confirmed to the Bill of Lading.

After I collected and created all documents required as stated on L/C, I submitted the documents to our bank. Unfortunately, our bank found a discrepancy in Bill of Lading, specifically in consignee's column. The consignee should be TO ORDER OF “Applicant Name”. For example, let say the applicant name is ABC, then the consignee on Bill of Lading should be written with "TO ORDER OF ABC". This is because if we write the "TO ORDER OF APPLICANT", people who receive the Bill of lading will never know who is the consignee? So that the consignee name in details must be written on Bill of Lading.

Because of that, we got the discrepancy charges that will be deducted from the payment, and we have to persuade buyer to accept the discrepancy and release the payment when the documents arrived at their bank. 

Notice of Arrival ( NOA )

When the goods close to arrival at destination the notice of arrival or NOA will be performed by forwarding agent to be forwarded to importer. This notice of arrival containing the details of shipment and importer has to check strictly the contents till importer feels in no doubt.

The valid data on NOA is a must to ensure the customs clearance to be going easy and smoothly. For especially in description of goods and the consignee and shipper name. Better importer making the description of goods with the same description on all shipping documents, for instance, importer has a description " Yarns, 100 % Linen ", then shipper should mentions it on the invoice, packing list, bill of lading or house air waybill, and others documents are requested. This way to do is protecting to any possibility customs problems coming up. Not only the description of goods in uniform, the other data shown on documents should be uniformed, too.

Forwarding agent will follow the NOA to submit the data manifest to customs. It's mean that if the data in NOA is wrong this will leads to customs problem due to there are discrepancies between the goods and the data manifest.

We have ever got a problems concerning the difference data of consignee name. Forwarding agent did not sent us the NOA or the draft of data, we did not check the data manifest prior to submitted. Unfortunately, between data manifest and data on bill of lading is not uniform.The difference is only one letter. On the bill of lading wrote "GARMEN", contrary manifest showed "GARMENT". This difference is only on "T" letter, then this leaded to the customs process longer than common done. This took one week additional times for clearance and of course, this leaded to the additional warehouse fee or charges and such additional handling fee came to our account. So that the correction before the data submitted to the system is a must to do to avoid the additional times and charges happened.

Additionally, at the same time our production having very short time to the delivery date. Because the row material  came late, we should took overtime to finish the goods in time or to reach the delivery date buyer decided. Then the result is a higher production cost came up. Moreover, we had to air parts quantity left because this parts was not finish and can be delivered in time then buyer had decided the part of quantity left to be going aired. Unfortunately, the cost of air freight was came to our account or the term shipment was on prepaid.

This case gives us experience that we should extra strictly to follow up our importation and proactively keep in touch with forwarding agent and we have to get all the drafts of shipping documents before all the documents are issued up and prior to the shipper  ship out the goods.

Beneficiary's Certificate

Beneficiary's certificate is issued by exporter based on buyer or importer request. This kind of certificate is usually needs to issue especially for exportation to Europe union such as France. Almost our buyer from France requested this beneficiary's certificate that stated on the letter of credit or on the shipment manual they sent to us. However, not all buyer request us to provide this beneficiary's certificate. Some of them simply ask only packing list, invoice and bill of lading or air waybill to be provided.

There are various contents of beneficiary certificate. One buyer requested in different contents with another one. One of them ask us to issue a beneficiary's certificate of sending documents to a specific destination with a specific document and in a limit of time. Another one is requesting to provide the beneficiary's certificate of value contents of the goods to be shipped out. Or there is a buyer to mention on beneficiary's certificate doesn't contains a specific material to comply to their government's rules in importing any goods from around the globe.

For example we ever made a beneficiary's certificate for document sending with the the following contents :

"We beneficiary of Letter of Credit number certifying that : 

The following documents have been sent to the applicant's Indonesia office within ten days after shipment date :

1. Copy of commercial invoice.
2. Copy of packing list.
3. Copy of C/O Form A / GSP.
4. Copy of bill of lading or copy of air waybill.
5. Copy of AZO free coloring certificate.
6. Original certificate stating the exact composition of the goods.
7. Original certificate for item bearing accessories which contain nickel or original beneficiary certificate certifying that items do not bear accessories which contain nickel "

This is means that we have to send all above documents to buying agent within ten days after shipment date unless the discrepancy will comes up.

Concerning the beneficiary certificate of value content, we have made this kind of certificate with the following contents :

"We beneficiary of the following order certifying that the exact composition of the goods as follow:

Style number :

Order number :

Composition : "

This type of certificate showing the contents of the goods in " Composition"  for example we ever filled in with 100 percents of cotton for sweaters that the yarn's composition is cotton fiber.

We have ever made a beneficiary's certificate that mentioning no specific contents are found in the goods. The nickle is prohibit include to goods that exporting to France. The sample of this type of certificate as follow :

"We beneficiary of the following order certifying that below items:

Style number :

Order number :

Do not bear accessories which contain nickel. "

As a conclusion, a beneficiary's certificate is a statement from beneficiary or exporter to specific condition of the goods or shipment that are requested by buyer or importer for customs purpose to be going smoothly. Of course, shipper or exporter should respect in providing this document unless the discrepancy fee will came to exporter or beneficiary. In addition, the discrepancy will leads to the payment problem or even buyer will not be able to release the payment.

Download Beneficiary's Certificate

The Advantages of Letter of Credit

L/C is abbreviation from Letter of Credit that is issued by a bank based on applicant or importer request to be passed to exporter in abroad as their business relation. The exporter has an authorize to take the money through issue a draft ( a command for paying indebtedness ) to the importer for some amount of money as stated on the L/C. The issuing bank can accepts and can releases the payment as long as all requires as mentioned on the L/C could be followed by exporter or all terms and conditions are complying to the letter of credit.

The advantages of letter of credit :

• International transaction can be more easy.
• Funds that are provided by importer for their order putted in exporter will be safety. This because exporter can not takes the funds if there is discrepancy on the shipping documents presented by exporter even found one discrepancy. For instance, the description of the goods are not same with the L/C required.
• To ensure exporter provides the shipping documents completely. Exporters will give their efforts to provide the shipping document completely and comply to the letter of credit.
• Ensuring on keeping the delivery date in time. If exporter did not shipped out the goods in time, this will leads to discrepancy condition, then the importer may be did not release the payment.
• Ensuring fully quantity of the goods required are filling up. The quantity of the goods usually must be in tollerant range, sometimes importer can allow the quantities that are shipped out in more and less five percents. Exporter has to ship out the goods with the full quantities as the L/C mentioned up.
• To ensure the payment to order that is putted in exporter. Both exporter and importer sometimes don't know well to each others or occasionally they just have a business relation through an buying agent or importer never met with exporter. Of course, it's a big risk for exporter, what if importer did not release the payment while the goods have been received by them? Through this letter of credit buyer has a compulsory to pay or release the payment to exporter for the goods that have been exported as long as exporter has provided the shipping document with no discrepancy founded on the documents. Then bank will release the payment to the account of exporter. So that the L/C should be issued before the production are starting up.

To get the above advantages both exporter and importer have to check the L/C draft before the L/C is issued to avoid any discrepancies come up. Exporter has to check whether the L/C's terms and conditions are comply with rules in their country or not. And exporter has to check all documents format in its practice. If there is a content that is can not be followed by exporter they may ask importer to revise the L/C draft till exporter confidence in providing the shipping documents.

Protect Using L/C on Shipment by Air

L/C or Letter of Credit of course, this is very important in export and import any goods for especially in international trade. Using an letter of credit the funds of any order that is provided by importer are keeping on safety, because bank ensures will not ever release the payment to exporter or beneficiary till the shipping documents are perfectly presented which are having the correct contents as importer request that are mentioned on the L/C. In the other hand the goods that are provided by shipper will be paid by importer through bank if the documents require is perfectly fulfilled and all those documents comply to the L/C.

But, practically starting vessel departure till buyer or applicant received the documents require will be needed so much times to spending up. I have an experience about this matter, view moths ago we have a buyer that requested us to order a type of yarn that we could not found in our country to a company in Italy. This buyer came from Japan. The yarns is quite heavy and so expensive. Because they gave us a short time to finish the order they decided to air the yarns or the shipment mode to become by air prepaid.

Because the yarns supplier may be consider that we are new buyer for them they insisted to issue a letter of credit prior the production were running up. We were understand with this situation. At the time we didn't realize the effect of taking an L/C to this trade. At the event that exporter have finished the production and the yarns were already to ship out, they send us the shipping documents for our reference. When the goods arrived at the Jakarta airport I was shocked, because the shipping documents were still in buyer's hand and they did not sent the documents to bank. Then after view days buyer sent the documents to bank and then bank checked the documents to ensure the documents comply to the L/C. After the checking was finished then bank sent them to negotiating bank. The process needs twelve days starting the on boarding date till the documents were passed to our office. It's means that we have to pay the additional storage fee for the twelve days. If the shipment is not using L/C this additional storage fee can be avoided.

Based on above experience we decided that if we are willing to import any goods we will chose the T/T payment term is becoming our choice to protect the additional storage coming up. The L/C are applying to our import of sea shipment mode only. We choose the T/T payment with a note the shipper are perfectly credible and trusted. Or at least our buyer guaranties in which the goods will be exported to us.

However, if buyer insists on using an letter of credit to each international trade, the extra costs of storage should be included to the production cost when the price are being calculating. So that this matter should be decided whether shipper prefers to chose an L/C or not prior to the purchase order is created up by buyer.

Issuing Bill of Lading

Bill of Lading or B/L is one of the transport document that is issued by a carrier or their agent or forwarder. Bill of Lading is the title documents that pointing the owner of the goods and each shipment by sea will has a Bill of lading. You can find the rule for Bill of Lading in UCP. Today the latest version of UCP is UCP600.

Before Bill of Lading is issued up, shipper will send a shipping booking or shipping instruction to forwarder or sometimes directly to shipping line. On the shipping instruction sheet shown the shipment data that will be used by forwarder for booking the space in a vessel. The fastest on sending this shipping instruction will keeping you on getting the space in a vessel more possible. The contents of a B/L will follow to the data stated on the sipping booking. Mostly, shippers send the proforma shipping booking which is containing an estimation only. Then in the event that the shippers have finished their production they will send the final shipping booking or final data to be inputted to the bill of lading by forwarder. The sending of this actual data commonly do on the injury time or close to the closing time of sending data. But, of course, sending the final data earlier is the better, especially for shipment to Japan. At this time our forwarder asked us to send the final data far away from the closing date, because if the shipment data is missing it can makes the container will not be loaded to the vessel.

The types of bill of lading that I have ever used are consisting ocean bill of lading, non negotiable sea waybill, and surrendered bill of lading. For exporting to Europe Union, the importers mostly use ocean bill of lading or bill of lading and Forwarder Cargo Receipt. 

Buyers or importers from Japan are usually use the surrendered bill of lading. They actually don't need an original bill of lading once they do the clearance of the goods, because the surrendered B/L that is sent by email or fax  is enough to do the clearance. I think the surrendered B/L is suitable for shipment from Indonesia to Japan that having about ten days sailing date, this short sailing date will take to a problem if they request an original bill of lading, because shippers need several days at least seven days to get the original bill of lading, possibility goods arrived before buyer getting the bill of lading from shipper, then the additional fee of storage will coming up to buyer.

Bill of lading contents :

• Shipper. Shipper will arrange the shipment booking and provides the data for each shipment and shipper also collecting all shipping documents to pass away to buyer or consignee.
• Consignee. Consignee is party of receiver for the goods that are shipped. Occasionally, the transport documents will be sent to them for clear the goods.
• Notify party. This party of bill of lading may same with consignee or sometimes is different with consignee. 
• Vessel name and its voyage. This will be shown on the forth column. For exportation to far away from Indonesia that the port origin is Indonesia, for instance to Europe or USA, two vessel will be typed on bill of lading, because the shipment used two vessel, first vessel is used from Indonesia to transit port and the second vessel is used from transit port to final port.
• Mark or shipping mark, container number and its seal. These data is showed at behind the left of the description of the goods. For LCL shipment type the container number and its seal data will be provided by consolidator of forwarder as the stuffing or loading the goods to the container do by consolidator or forwarder. Differently, FCL shipment, shipper will arrange the loading of the goods to the container, so that the container and seal number are provided by shipper. The shipping mark is always provided by shipper.
• Description of goods. Buyer will provides the description of goods for each order. This usually can be found on purchase order sheet.
• Nett weight and gross weight. Shipper will provides both data and pass to forwarder or shipping line to insert to bill of lading.
• Total container number and size and type.
• Place and date of issue. This date is usually same with the boarding date, but sometimes both date of issue and boarding date are different.
• Type of movement. This data are refer to loading type to the container. CFS/CFS movement will be shown if in one container consists two or more shippers and consists two or more buyer are included. CY/CY movement, means that in one container is used by one shipper only and containing one buyer. CFS/CY, if this type movement is showed on a bill of lading, means that the container are containing two or more shipper and only one buyer is included.
• Freight payable at. This is pointing to who is obligated to pay the freight.

All above data types have to follow instruction from buyer or the Letter of Credit.
 

Creating an Invoice

Shipper will creates an invoice based on the agreement prior to orders are putted to them. If buyer decided the term of shipment they wanted is " payment before shipment date and after inspection" In this case the invoice will be issued by shipper after inspection date and the payment should be received by them then they will directly arrange the exportation to destination as agreed. One of our buyer decided the payment term is on documents against payment , this mean the invoice will be performed once the goods were already been exported and after all documents required are completely provided then they will send the invoice along with the other documents to bank for arranging the payment.

The contents of an invoice that I ever made up as follow:

• Beneficiary. This party are commonly issue the invoice to be performs to buyer and also beneficiary as receiver of the payment from buyer.
• For account and risk of Messrs. This party is destination of the invoice performed. Commonly buyer are stated as to be this party. But sometimes buyer has decided the other name and address to be filled in this space. 
• L/C date, its number and the issuing bank. If the term payment are stated on L/C, those information are always stated on the invoice created up.
• Inconterm. This column will be filled in by FOB, FCA,C&F, CIF, Ex-work or others terms based on  both parties shipper and buyer agreed.
• Information of the carrier or vessel. Exportation from Indonesia to Japan is almost using direct vessel, so that the vessel is only one stated on this column. Differently, Exportation to Europe or USA is always has the vessel transits in Singapore or Malaysia, so that the vessel will be showed on the invoice are containing two vessels.
• Shipment route. The shipment route is consisting Port of  Loading, Port of transit, Port of discharge, and Place of Delivery. If the shipment is using direct vessel, the port of transit wouldn't be showed up. The shipment date is also showed on this column
• Consignee and applicant, Some buyer also decide to ask shipper to mention the consignee and notify party as showed on its B/L.
• Description of goods. The description of each goods are commonly mentioned on the purchase order, for instance " Ladies pullover 100% acrylic". A description of goods are consisting design or product name and composition.
• Style and order number. An order usually has an order or purchase order number and style number for identification purpose. So that the style and order number are very important things to be mentioned on each shipping and financing document as an identity of each order are putted to shipper.
• Color name and number. The color name and number are always mentioned on each invoice. Sometimes the difference color will leads to difference price of each color.
• Size. Mentioning size of each product in invoice is a must, because each size range usually has a specific price. The baby size will be different with the boy size, because material consumption for each size range will be different.
• Quantity of product. Quantities have to be performed on the invoice to calculate the total amount of each color, size, and all total quantities to be delivered to.
• Unit price. Of course, the unit price should be showed on each invoice to calculate the total amount to be paid by buyer.
• Total amount. The total amount of each shipment will be mentioned on the invoice. This is sometimes followed by total amount in words.
• Total quantities. Commonly, the total quantities are mentioned on invoice to show buyer what the actually quantities to be exported to them.
• Total box, the nett weight, gross weight, and its volume.Those information is not only important for buyer, but this is also using on the clearance process.

All those invoice contents are very important to give an attention when we are willing to create an invoice. And the correct contents will lead buyer can easily to process the payment, identification and of course, for the clearance the goods in customs.

In case you have an exportation of salesman to France, now customs will check the price once upon the exportation and payment process. It is a must to mention on both invoice for customs and payment in the same price. Our buyer in France reminded us to do this, because if this is not followed will leads to the penalty applied to buyer.

For all the above things, you have to contact constantly buyer regarding of invoice they want to create up. So that they can protect any unwanted thing happened to them. 

Packing List

A packing list performs a list of the goods or a products that is packed with a packing method. Packing list commonly is created on spreadsheet application like Microsoft Excel or any others. Sometimes buyer has decided the format of the packing list in their shipping manual to be used to each their order they have. If buyer doesn't has a certain format of packing list, shipper will makes a draft to propose to buyer for getting their approval including the content of each shipment.      

Now, some buyers have an online shipment system in a single window. They manage their orders by online system. Starting they put an order to a shipper till the goods are delivered of received by their warehouse, all these are recorded on their online system. Once shipper has finished produce their order, shipper submit the order data to be shipped out to the system covering quantity to be shipped out, the total packaging, the color, its nett weight and gross weight, packing method, and the shipment mode. Then the shipping marks and packing list will automatically created by system based on shipper data submitted to.

The packing list will be passed to buyer and bank in original, and it stated also on the first number of packaging, and occasionally the forwarder request the packing list to shipper, too. 

All contents on packing list stated are should be avoided from wrong. If found the wrong of the contenta it will become a big trouble and sometimes it will affect to the discount or penalty are coming to shipper. We have ever got some penalty because of this wrong thing. For several years ago our buyer from France has decided that the packing list should be written manually by hand. Of course, this is will becoming a big trouble when we don't have spare time to do this, because the closing time for cargo loading almost going over. Sometimes we didn't double check to the packing list we created up according to the short time to send the goods to the consolidator of the goods.

In addition, if we made a wrong content to the packing list and this has arrived in buyer hands or their agent, the extra handling can not be avoided. Then the additional handling fee in destination will born to shipper account.

  

Export to Japan Using IJEPA

When this posting I created, Japan was becoming the major destination of our export. Formerly , our buyer in France is the biggest amount of our export. But after the economic crisis happened in Europe Union, their orders was being dropped to the lowest that have ever happened. Moreover some buyers had been gone away and putted their order to some companies in another countries with the lower price given to them. I hope Japan will be better in amount and the price.

Fortunately, our government and Japan have an agreement to make both parties getting the benefits in trade international from each other. This agreement form is EPA or Economic Partnership Agreement between Japan and Indonesia. For import from Indonesia importer has to provide a document with the name is IJEPA ( Indonesia - Japan Economic Partnership ) and for Import from from Japan the document should be provide is JIEPA ( Japan - Indonesia Economic Partnership Agreement). This agreement will gives the reduction to any duties. To get those opportunities or facility both parties have to comply to some rules of origin as agreed. But not all goods will be covered by this agreement.   

Using this facility both importers Japan and Indonesia will get the reduction for duty till zero. Of course this will makes both parties to get this opportunity for their exports and imports. This will naturally push importer to increase their orders, because the price that will be offered to their customer will be lower and lower. For exporter will get more orders from their buyer and of course with the better in price offer.

In getting this facility the rule of origin has to be followed. The rule of origin involves origin criterion, direct consignment, and documentary evidence.

Origin criterion has product specific rules, those are change in HS code which has three change segmentation , value added in 40 percent or more, specific process, and basic principle or 40 percent value added.  

Change in HS code consists change in chapter ( CC ) , this change in the first two number from the raw material. The second is change in tariff heading ( CTH ), this change is in the first four number of the raw material. And the last is change in tariff sub heading ( CTSH ) or in the first six number from the row material. For instance as follow :

Change in chapter ( CC ) : 
Material : 2603 is HS code for Copper ores.
Goods : 7401 Cooper mattes.

Change in tariff heading ( CTH ) :  
Material : 7402 is HS code for Unrefined copper.
Goods : 7403 Refined copper.

Change in tariff sub heading ( CTSH ) :  
Material : 7403.11. is HS code for Cathodes and section of cathodes .
Goods : 7403.12 Wire - bars.

The requirement for getting IJEPA preference:

• The goods is under cover IJEPA agreement.
• Comply to preference criterion.
• Comply to transport criterion.

Criterion preference of IJEPA:

1. The goods has not an import contents. The letter "A" is written on IJEPA form.
2. The goods is produced by one of the two parties which the materials are got from one of Indonesia or Japan. The letter "B" will be given to the IJEPA form.
3. The goods can fulfill the requirements of PSR or product specific rule. The letter "C" will be stated on IJEPA form.

Safeguard Measures for Cotton Yarn Importation.

In Indonesia, safeguard measures for cotton yarn other than sewing thread do by giving additional duty to the yarn imported from another country beside commonly duty applied to. This regulations release after the importation value and quantity highly increase in big amount and this taking effect to the industries in Indonesia were disturbed in the market share. In the other hand the yarn industries report to Trade Ministry concerning this condition and ask them to apply the additional duty for safeguard measures.

This condition is dilemma. The additional duty of the safeguard is a benefit for yarn industries, of course, this will taking effect to the market share for another country will decrease and the opportunity will comes to local yarn industries. Contrary, for manufacturer industry that its row material is decided by importing from another country, this is will be an additional production charges that will inflict to the higher price to offer to buyer. In the other hand buyer will reconsider to compare with others suppliers in different countries if the price is too higher for their customers.  

The rule has been applied since 6^Th in June 2011 and the validity of this rule will apply for three years onward since this rule is stated. Indonesia's government stated IDR 40,687 for each one kilogram to be an additional duty beside the common one on the first year. For the second year they stated IDR 38,144 for each kilogram, and the last year IDR 35.601 per kilogram to be going applied. I think those additional charges are big enough to limit the importation of the cotton yarn.

However, the additional duty of the safeguard didn't apply to all country in the word. There are 105 counties stated to be exception from this additional duty, those are Albania, Angola, Antigua and Barbuda,  Argentina, Armenia, Bahrain, Bangladesh, Barbados, Belize, Benin, Bolivia, Botswana, Brazil, Brunei Darussalam, Egypt, El Salvador, Fiji, Former Yugoslav Republic of Macedonia, Gabon, Georgia, Ghana, Grenada, Guatemala, Guinea, Guinea Bissau, Guyana, Haiti, Honduras, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Central African Republic, Chad, Chile, Colombia, Congo, Costa Rica, Cote d'Ivoire, Croatia, Cuba, Democratic Republic of Congo, Djibouti, Dominica, Dominican Republic, Ecuador, Jamaica, Jordan, Kenya, Korea - Republic of, Kuwait, Kirghiz Republic, Lesotho, Macao - China, Madagascar, Malawi, Maldives, Mali, Mauritania, Mauritius, Mexico, Moldova, Mongolia, Morocco, Mozambique, Myanmar, Namibia, Nepal, Nicaragua, Niger, Solomon Islands, South Africa, Sri Lanka, Suriname, Swaziland, Nigeria, Oman, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Qatar, Rwanda, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Saudi Arabia, Sierra Leone, Tanzania, The Gambia, Togo, Tonga, Trinidad and Tobago, Tunisia, Uganda, Ukraine, United Arab Emirates, Uruguay, Venezuela, Vietnam, Zambia, and Zimbabwe.

The HS codes of the goods that are applied additional duty of safeguard measures consisting from number 5205.11.0000 till 5206.45.0000. When the goods came to Indonesia and importer submitted the importation data then the customs will automatically checked by their system according to data submitted by importer to customs system. System will check the HS code of the goods whether there are any regulations to be applied to or not. The goods under HS code range number from 5205.11.0000 to 5206.45.0000 will be checked by customs according to status given by system, the status system of the goods usually in yellow line or red line. In case yellow line is given to an importation the customs are checking the shipping documents only, then finally after additional duty paid up the customs will approve the goods to be shipped out to shipper and the customs process was finished. In order to the customs given the red line, this means that the goods should be checked in both checking documents and physically checking, then finally the goods are allowed to be picked up based on customs approval.

For especially manufacturer in Indonesia that has an order which is the materials would be imported from another country has to check the HS code and the rules to be applied to, for example this additional duty for safeguard measures rule. So that all charges of the importation can be added to the price offer to their buyer, this way will protects their benefits to be lost. 

Additional duty for safeguard is not only apply to the cotton yarn other than sewing thread, this is also has applied to some commodities for instance cotton fabric, so that the importer should consults or check with customs regarding any goods will be imported, or at least they have to check to the web provided by customs.     

Learning International Trade Process

1. Sales Contract Process

Promotion

Firstly before exporters or manufacturer export their product to another country they usually make some promotion through any media such as advertisements in newspapers, magazine, or through online by putting the ads in website that well know and having high traffic like Google, Facebook and so on. Occasionally the promotions do by exhibition or by governments directly in an expo or sometimes through the embassy.

Letter of Inquiry.

After one or more buyers interest to the product can be produced by exporter then they send a letter of inquiry which having the contents price and any specification of the goods involves the styling, the quantity will be ordered, delivery time, and the details of transport line. But the most shippers do in getting an order is though a third party or a buying agent. Buying agent will proactively looks for some manufacturers who can provide or produce the products buyers want to. Buying agent usually takes some sample to show to some manufacturers or shippers and ask them whether they can produce the same product or not. Then manufacturers will try to make the same product as the sample to show buyer to get their comment to the sample.

Offering the price

After buyer has approved the sample made by a manufacturer, manufacturer or exporter will automatically sends their price offer base on the sample made up. Manufacturer will calculates based on row material consumption, transportation fee or all importation charges in case the row material will be imported from another supplier from another country, and production charges. Buyer or sometimes traders will directly review shipper's price offer and will compare to the bottom price buyer decided. Occasionally, buyers or traders will compare with another shipper who sent the same sample in considering best quality and the lowest price offering. Some years ago, we have ever made a business relation with a buyer, they always sent their design to many manufacturers who can make the same sample that sent by the buyer or their agent. Then they took the lowest price from various manufacturers offering or mostly they done this by like a tender, they putted a very low price then manufacturers sent or submitted their reasonable price they could offer. This buyer type doesn't pay our goods quality, they always think a high benefit.

Order Sheet.

Order sheet or sometimes called purchase order. The contents consists style number, purchase order number, row material, description of the goods, quantity, price, payment term, shipment mode, destination or port destination, and final destination.

Sales Contract Process.

Sales contracts made by exporter based on order sheet and offer sheet, all important things that are mentioned on both offer sheet and purchase order or order sheet are should be mention on sales contract, too. You may put the additional conditions if any on the sales contract. Such the additional condition commonly put down, the tolerance of over and short quantity, insurance, transshipment, and many other you need to put down on the order sheet. Both buyer and shipper have to put their authorize signs on the order sheet. However, in business practice, with using email they only send and receive order sheet to be agreed by both side without sending the original order sheet and sometimes they did not put down their signs anymore. In the other hand, in our business practice with one of our buyer this is enough by sending the importer Proforma Invoice to check and confirm and buyer has assumed that this is same as sales contract.

2. Letter of Credit Opening

After both parties exporter and importer agreed to all conditions and importer is no doubt to put the order to importer, then the next step is applying a Letter of Credit to any bank trusted in case both exporter and importer choose L/C to becomes payment term. The applying is made by importer to any bank or called Opening Bank, Importer has provide some funds equal to amount of the goods to be exported by exporter or called beneficiary, then the bank can issue the L/C after all requirement for applying an L/C. Before an L/C to be issued and transferred to Advising bank better applicant pass its draft to beneficiary to check and makes sure the term and condition the L/C is correct, this way is to avoid some discrepancies conditions.  

3. Cargo Shipment

After exporter received the L/C from advising bank, as beneficiary they has obligation to provide the goods to be ready to export, this called ready to export if the goods is has been inspected by buyer's agent and the inspection result is in good condition and of course ready to export.

Shipping company will receive shipper's booking for shipment and they will coordinate with their agent at destination to get buyer green light for shipment process. And they have to provide transport documents such as Bill of lading, shipment advice, and FCR for shipper. The shipping company also responsible to arrange the shipment till importer or consignee received the goods in a good condition.

4. Negotiation or presenting documents

Beneficiary or exporter send all documents required to advising bank and advising bank will check the documents presented whether the documents comply with L/C or they found any discrepancies. In order to Advising Bank found any discrepancies conditions they will ask shipper whether they will make the correction or send the documents with discrepant condition to Issuing bank.

After all documents have been arrived at Issuing Bank, they will scrupulously check all term and condition of the documents presented. If all documents comply with the L/C in term and condition Issuing bank has an obligation to fulfill the payment within four days since they received the documents. But if the documents didn't comply with the L/C, they will ask importer to give their approval or acceptance then the payment can be fulfilled.

  

    

FCL Versus LCL in Efficiency

FCL is abbreviation from Full Container Load, when the shipment with using FCL term there are only the goods to be loaded only from one shipper. When a shipper has some goods to be shipped out to another country he or she has to calculate its CBM or volume to decide what size container will be suitable and used up. Various container size you can use for your goods commonly consisting 20 feet, 40 feet, 40 feet in high cube, and 45 feet. The following list you will find out the details interior measurements for each container:

• Container with the size 20 feet : the length 6.058 meters, width 2.438 meter and the height 2.591 meters.
• Container with the size 40 feet : the length 12.192 meters, width 2.438 meter and the height 2.591 meter.
• Container with the size 40 feet HC: the length 12.192 meters, width 2.438 meter and the height 2.896 meters.
• Container with the size 45 feet : the length 13.716 meters, width 2.438 meter and the height 2.896 meters. 

The thing has to be considered is you have to check your package measurements of the length, wide, and its height. Then calculate how many cartons can fill in a container in width line , length line and height line. By this way you can easily decide a container to be used up with no doubt anymore.

LCL is abbreviation from Less Container Load is choosing when the total volume of the goods to be loaded to a container is in low amount. Some goods from different shipper are combined  into one container . The loading or stuffing will do at consolidator warehouse. Shippers usually send their goods or cargos to the consolidator warehouse by their selves or using a third party or trucking company. Therefore, they has to calculate all costs will coming up involve transportation to the consolidator warehouse and some handling charges at the consolidator warehouse to be considered.

Meanwhile, a shipper has to compare between FCL and LCL when they are willing to export their goods. By this way they will decide what is the cheaper between LCL and FCL to protect the costs safety.

You can compare between FCL and LCL by calculating the CBM or volume and each cost in using both FCL and LCL. The FCL shipment of export has costs THC or terminal handling cost, B/L fee, trucking or transport to terminal container, and sea freight in case freight paid by shipper or in C&F term shipment. LCL has costs that usually involves trucking or transport to consolidator warehouse, CFS or container freight station charges that calculated each volume. B/L fee, and sea freight cost or fee which the rate is calculated per volume or CBM.

Some importers who putted their orders to us has decided if a shipment has the CBM or volume 12 over it should be arranged on FCL, of course, after they have compared the costs between FCL and LCL. There are also some buyers want firstly to know the volume of their shipment prior to shipment arranging, then they will send us their approval of details shipping instruction to be followed.

In my country LCL shipment only available on the last day in every week or the boarding date it commonly  on Sunday or Monday. Unlike LCL , the FCL shipment schedule is always provided on mid week or end week vessel schedule.

Occasionally, there are some buyers insist to ask us to arrange their shipment by using FCL although the volume of the cargo is less then ten cubic meters. This is because they want the container opened in their warehouse or at a specific place instead of  in forwarder or customs place. Hopefully, their goods will protect from any damage while handling. 

How to Prepare an Exportation

How to export some goods to another country? You might be have aver asked yourself in a time. I also have ever asked me the same question many years ago when I didn't have a knowledge yet about export and import world. How to begin and what is the last step to export a goods in a big amount? If you unusual or never do the exportation to another country you will confuse, because many factor and rules have to be learned in export and import some goods by using a forwarder. Additionally, rules concerning export- import are different for each country. And the export-import is not only a knowledge, but this is a skill that needs much exercises and long experience to become an expert.

However, in this posting I will try to tell you a lists preparations to export some goods to another country in around the globe I have ever done.

1.  Goods details to be shipped out. The first thing to realize in exporting a goods is knowing goods description in details. For instance, you will export some sweaters to USA by using a forwarder services, you have to know such as who will wear those sweaters?, what is the row material?, what is the composition of the material?. Those goods specifications will be mentioned on export documents or shipping documents.
2. Categories and HS code or harmonise system of the goods you will export. Category of the goods is refer to the age segmentation and style of the goods. Each goods will have a specific HS code which is consisting six digits number for example cardigan, jerseys and sweater which is the row material in synthetic like 100% acrylic will having the HS code 6110.30.0000 in Indonesia and 6110.30.9900 in France. Sometime the last four digits is different in a country to each others. You may check all HS code lists to customs in each country or you will find out in their webpage.  
3. Rules in both country of origin and destination. After you got the HS code of your goods, you have to check what rules to be applied to the kind of your goods. In my country we can easily check out the rules applied to any goods after we knew its HS code. Our government has created a webpage that have a feature or a page for checking all HS code with description of goods in details and the rules to be applied. We can easily anytime check out by online the rules for each HS code we have got.
4. Term of shipment. Various terms of any shipment we can use up. The term shipment commonly I have ever used involved ex-work, FOB or free on board, CIF or cost insurance freight, C&F or cost and freight. The ex-work is all charges transportation from shipper's factory till to be arrived at destination or receiver born to buyer. If we use FOB, the cost transport from usually port of loading until the goods received by buyer is obligated to buyer. CIF term shipment is all charges from factory to port at destination including the insurance is has to pay by shipper. Likely CIF, the C&F term is all charges till the goods arrived at port destination has to pay by shipper except the insurance charge it will be invoiced to buyer.
5. Term of payment. Before a purchase order to be issued, the payment term has to be decided. Some of them I ever used are T/T payment, DAP or Document Against Payment, Documents Against Acceptance, Advance payment, Payment after done the inspection, and payment under L/C or letter of credits. All those payment terms will be explained in details in a specific posting.
6. The port of discharge and destination.
7. B/L or bill of lading type. Those are Original Bill of lading, Sea Waybill, Surrendered B/L, FCR, Full set of B/L. Those Bill of lading type are different to each others.
8. Consignee and notify party.
9. Packaging details and the shipping mark.The packaging has to follow buyer requirement. Buyer usually send a guide of the goods delivery to be followed by shipper. The purpose of managing  the packaging is to make easy in distributing to many store or to some the customers. So that the packaging should be managed by a guidance  from buyer then the manufacturer follow that guidance is a must. Marking of each packaging is commonly showing the identity which are usually having the contents buyer or consignee name, manufacturer, style or item number, purchase order number , quantity, gross and nett weight, port name, destination, and packing method. The shipping mark will be noted on surface of the cardboard. 
10. Various tests and inspection before shipment. The tests I mean are testing for goods including the raw material, and each parts accompanied the goods such as the accessories, poly bag, and its cardboard box. In some countries I found they have many laws to be complied in avoiding some substances come to those countries. So that buyer ask us to do some tests of the goods contents and even of part of the packaging. Regarding the inspection, after the goods were ready and all tests have been done, now the time for final inspection by inspector that is pointed by buyer. In order the inspector didn't found a major defect or the inspection result is under the tolerant then the inspector issue the inspection certificate that will note on the inspection certificate a pass inspection, it's mean that the goods can then be exported to destination as agreed.
11. Document required and its specimen. The shipping document commonly requested are packing list and weight list, invoice, Bill of lading, House Air waybill in order the shipment by air, and inspection certificate. Additionally some buyer requests certificate of origin, shipping advice, manufacturer certificate, single country of origin declaration and so on. If buyer wants the same format for each documents you may ask to buyer directly. However, if buyer can not provides the specimens you may create the documents required and send the drafts to buyer to get their approval.
12. Forwarder and the shipping line or airline. You will send the shipping booking to forwarder that pointed by buyer in case the shipment is in collect term, means the sea freight or air freight will be invoiced to buyer or consignee as agreed. Sometimes buyer also requests to use a specific shipping line to handle their shipment, so that we have to mention the shipping line will use up when we send the shipping instruction to the forwarder.

Those are the basic preparations you have to obtain when you are willing to export some goods using a forwarder service. Each country has specific lows in international trade that you have to realize when you will export to, beside rules in your country. If you didn't have enough knowledge of laws in a country keep in touch with your buyer an ask proactively to them.  

Choose Best Courier Services

When you have goods or package will send to any place in around the world you might consider what is the best courier will send your package to destination you want to. There are many various couriers companies you will find in your region may be, or you have ever got some offerings about courier services through some media such as emails, sales letters, social media, or marketer call you directly to give clearly explanation of their services.

However, you have to realize that all most marketers will always give you the good of their company or service to get your worth attention then hopefully you consider to use their service or buy their product. The actually you have to give more attention is what the expertise they have to ensure your package to be going to destination with a good condition, in time delivery, and easy to track your package alert while your package in the way.

Here I will give the list of things that you may consider when you willing to send a package for especially to abroad destination:

1. The agent for each city or country. Credibility agent of each country is sometimes different with the head office. This based on my experience in last time ago. Our buyer sent a package through a courier, our buyer then informed us these shipment when the package already in the way and they also informed us its Air waybill. Then I tried to track the package status, surprisingly I didn't find out the branch office in my country and even person in charge in handling the package until somebody called me to inform the notice of arrival of the package. In that time I asked to them " where is actually their office in this country or our city?" Then they only gave us a personal phone number to follow up the package or shipment. Therefore, you have to chose a courier with a fixed agent that having a clearly address.
2. Tracking online system. The tracking online system is part of the most important things to provide by any courier company to make easy for both customers or shippers and courier company on tracking and manage various of shipments. By this tracking online system a customer or sender or receiver can easily follow up the status shipment any time and any where by real. He or she doesn't needs to contact the customer service for just knowing where her or his package is to be, just type the web address and put the Air Waybill number to get the last update of the package.
3. Proactive in giving information. Proactively give any information about our shipment and anything happened that will impact to our package is one factor in making our trust. I have ever used various couriers to arrange various shipment to another countries in the globe. There is a courier that provides a service that when our package already in delivered status or has received by consignee they will automatically send me a notice concerning these receiving. Additionally, they always let me know of any news that impact to a shipment such as government regulation of both from origin and destination, a typhoon and various news that useful for me and of course, for my shipment.
4. Helping. This is one thing that you may consider for choosing a courier to arrange your shipment. If we regularly send package to around the world, might be you have ever  faced an unsatisfying condition to one of your shipment, for instance, the shipping documents was not complete that impacted you could not received you package until you fulfilled the documents required. A good customer service will assists you to solve these problem till everything to be clear and finally you can receive the package smoothly. If your package is in a big amount or weight this will takes to a high storage fee on you. The storage rate is counting per charge weight per day. Therefore, the short time in clearance a package is will be better in saving your money.
5. Customer satisfied. The short way to know what is the credibility of any courier is by asking to anyone that ever used its service. This way mostly that I ever done to look for a courier to ensure I prefer a courier service that will makes me confidence to arrange my shipment. You may ask to your friends or you clients of their experiences to their shipments. The information usually consisting the name, its service, the delivery time, and also the price or rate.
6. The best price and discount. After you consider those five things listed then you may also consider the price offer and the discount. The best price and the discount will be given to a customer when he or she can be a member or after had an account for her or his shipment on both export and import. By giving your permission to be a member of any courier they assumed you has a regular shipment for each period of time or monthly.

As a conclusion, before you decide a courier company that will arrange your shipment better you check their expertise and experiences in handling various shipments that ever handled. Those six things listed above is quite enough to check a courier company that will makes you confidence on giving your package to them.             

Documents Against Payment is not T/T Payment

Documents against payment or sometimes called DAP is one of part of term payment in trade for especially in international trade. With using this payment term shipper or beneficiary or drawer having an obligation to provide the shipping documents as agreed that mentioned on purchase order or PO, and then send the documents through bank to pass to buyer's or consignee's bank. After consignee's bank received the documents, they proactively send a notification of this arrival. Before consignee can collect or pick the documents up they must settle the payment according notification from their bank then the documents for clearance the goods can be released.

This is important that don't proactively arrange the payment by transfer to shipper account directly. This will effect the payment status still in blank in your bank records, because this payment not follow the DAP line. Then the impact you can't release the documents. The such case was happened to our trade. View months ago one of our buyer from France putted an order or bought some sweaters  to us with a little quantities. Before the order is confirmed, they send us a sample to follow for making sample with some modifications and the measurements are included. Then we directly made the sample that followed their requirements and instruction. When the sample was being ready we directly send it to buyer to get their approval.

Fortunately they gave their approval and the purchase order was made up and sent to us by email. Then we sent them an order confirmation which was mentioning the payment term was in DAP or documents against payment and they have agreed of this payment term.  

After that we did further process to order the yarns as the raw material for knitting then the bulk production was done. After the production was finished and the quantity was full then we exported the goods with using a nominate forwarder that pointed by buyer. Then we made the transport document and finance document to send to our bank for beneficiary. We sent to our bank all documents require covering Bill of Lading , Certificate of Origin GSP Form A, Commercial Invoice, packing list, and consignee's bank details.

Our bank did not checked the contents of documents, because those documents were not under Letter of Credit or L/C. Our bank only checked whether the documents presented were complete or not. After that our bank sent them to consignee's bank. When the documents was already received and then the bank sent an the acknowledgement  to applicant or our buyer. 

Our buyer wired the payment to our account directly or this transfer is called T/T payment. Of course, this was wrong, they didn't arrange their payment by followed DAP line and this brought to impact they could not took the documents from bank, because the payment status is still empty. 

Many times they sent me an email to release the documents, we said that the documents will be released after they settled the payment. Then they sent a telex through their bank that mentioned that they have wired the payment and asked us to release the documents. When we received this telex from our bank we directly called our bank concerning this telex and our bank said that they was false by wiring the payment by T/T instead of follow the DAP line, so that their bank could not release the documents. Then I realized this situation or condition and directly instructed our bank to send a telex which is having the contents " We already received the payment in these amount and please release the document free of payment. All charges if any will born to applicant and our bank may close the file". Finally, our buyer as applicant could picked up the documents to release the goods from customs. 

This case show us that DAP is different with T/T payment and can not be mixed up one to each other, and by understanding both payment terms and conditions will make a short time in releasing the documents and of course, safe a couple of money.