Wednesday, January 22, 2014

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.  

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