Export procedures
This presentation is the property of its rightful owner.
Sponsored Links
1 / 23

Export Procedures PowerPoint PPT Presentation


  • 71 Views
  • Uploaded on
  • Presentation posted in: General

Export Procedures. Entrepreneurship 6, 2013. Class Objectives. Students learn what negotiation aspect they need to know and master before making a sale Students understand how sale process is being processed and the aspects that controls them. Entrepreneurship 6, 2013. WORK FLOW.

Download Presentation

Export Procedures

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Export procedures

Export Procedures

Entrepreneurship 6, 2013


Class objectives

Class Objectives

Students learn what negotiation aspect they need to know and master before making a sale

Students understand how sale process is being processed and the aspects that controls them

Entrepreneurship 6, 2013


Export procedures

WORK FLOW

Find Product to Export

Find Buyers

Negotiate

Payment

Send Goods & Document

Sales Contract / Purchase Order

Entrepreneurship 6, 2013


Export procedures

Terms and Procedures

Entrepreneurship 6, 2013


Container terms

FCL (Full Container Load), container is loaded with goods from one exporter

LCL (Less Container Load), container is loaded with goods from several exporter

Container Terms

Entrepreneurship 6, 2013


Shipping term

FOB (Free on Board) Exporter responsibility rest on delivering goods to ship. Buyer finance ship delivery.

CNF/CFR (Cost and Freight) Exporter responsibility rest on shipping to destination country. (buyer buys insurance)

CIF (Cost Insurance Freight) Exporter pays for shipping and insurance

Shipping Term

Entrepreneurship 6, 2013


Export document term

Invoices: a document consist of goods specification and cost. Total amount invoices will be charged to buyer.

Invoices consist info on shipping dates, container number, seal number, LC number, ship name and departure dates.

Export Document Term

Entrepreneurship 6, 2013


Export procedures

Entrepreneurship 6, 2013


Packing list

Packing List

Entrepreneurship 6, 2013

Like Invoices, Packing List has no price and contain the Gross Weight information.


Document terms

Ocean Bill Of Loading (Ocean BL) is a document of shipping acceptance issued by the shipping line.

BL will be used to ask payment from buyer by giving the document to bank or the buyer.

BL will be used by the buyer to collect the goods by giving it to the shipping line at the destination port.

Document Terms

Entrepreneurship 6, 2013


Export procedures

Entrepreneurship 6, 2013


Certificate of origin coo or surat keterangan asal ska

A document issued by Indonesia’s ministry of trade that stated the origin of goods to be exported. Valid for all goods that comes from Indonesia.

Certificate of Origin (COO) or Surat Keterangan Asal (SKA),

Entrepreneurship 6, 2013


Export procedures

Entrepreneurship 6, 2013


Export procedures

HS CODE / Harmonized System Code.“ an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization (WCO)

HS Code 01: Live animals; animal products

HS Code 02: Meat and edible meat offal

HS Code 03: Fish and crustaceans, molluscs and other acquatic invertebrates

HS Code 04: Dairy produce; birds' eggs;natural honey; edible products of animal origin, not elsewhere specified or included

HS Code 05: Products of animal origin, not elsewhere specified or included

HS Code 01: Live animals; animal products

Code 0101 Live horses, asses, mules and hinnies

Code 0102 Live bovine animals

Code 0103 Live swine

Code 0104 Live sheep and goats

Code 0105 Live poultry, that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys

Code 0106 Other live animals

Code 0104 Live sheep and goats

010410 Live sheep

010420 Live goats

010410 Live sheep

01041010 Sheep: Sheep including lamb for breeding purpose

01041090 Sheep: Other


Document terms1

PEB(Pemberitahuan Ekspor Barang) : a notice from exporter to Indonesian Customs to inform them about goods to be exported. Consist of exporter and buyer information, shipping line, goods, port of embarkation and destination, price, etc.

FIAT MUAT is a load aggrement issued by Kantor Pelayanan Direktorat Jenderal Bea dan Cukai in embarkation port.

Document Terms

Entrepreneurship 6, 2013


Payment methods

Payment by Letter Of Credit (LC)

Buyer opens a L/C (Letter of Credit) to exporter through a bank.

Letter of Credit is a method of payment whereas the bank who issued the LC promised to pay the LC bearer if certain documents is delivered to the bank.

Based on time, L/C can be used as:

AT SIGHT L/C : payment is warranted the time the document is delivered to the bank.

USANCE L/C: payment is warranted based on certain time constraint. Ie, 45 Days Usance means the bank will pay to the exporter 45 days after the Bill of Loading time stamp.

Payment Methods

Entrepreneurship 6, 2013


Export procedures

5

1

2

12

4

6

3

7

10

8

Shipment of goods

9

Domestic

Overseas

Exporter

Importer

Production on ordered goods

Foreign Exchange Bank

11

Sea & Air Transport Svc

Correspondence Bank

13

customs

8a

COO / Other docs

Entrepreneurship 6, 2013

Port of Destination


Workflows

Workflows

Entrepreneurship 6, 2013

  • Buyer/Importer send Buying Contract

  • Importer deposit funds to Bank, opening a LC.

  • Opening Bank opens LC dan send LC to advising Bank

  • Advising Bank inform exporter about the L/C

  • Eksporter produced goods according to the Contract

  • Eskporter load and send the goods through an embarkatation port.

  • Shipping Line create Bill Of Loading document and delivered it to the Bank.

  • Custom issued PEB and FIAT muat.


Workflows cont d

Workflows – Cont’d

Entrepreneurship 6, 2013

  • (A)COO, Invoices, Packing list and Certificates is created according to buyer needs

  • Goods is shipped to destination port

  • Export document is submitted to advising bank

  • Advising bank send documents to Opening bank, opening bank will transfer the funds to advising bank and delivered it to the eksporter

  • Opening bank deliver document to importer

  • Importer picked up the goods in arrival port by producing the document to the shipping line agent.


Payment method other than lc

Payment By Cash or TT

Buyer transfer the fund to exporter before shipping. Exporter ships the goods after receiving payment and shipping document will be send to buyer. The buyer will use the document to release the goods from the shipping line.

Cash Againts Document/ Document Againts Payment (cad or dp)

Eksporter release export document to bank, document will be delivered to buyer, after buyer transfer the funds to the bank, bank will deliver payment to exporter.

Payment Method other than LC

Entrepreneurship 6, 2013


Payment method other than lc1

Open Account

Buyer will pay after goods is delivered

Deposit

Exporter send the goods to buyer with a deposit status. Buyer will pay the exporter based on the number of goods sold

Payment Method other than LC

Entrepreneurship 6, 2013


Assignment

Assignment

  • Make a visit to one export company (exporter), do the following:

  • Ask the example of export document

  • Ask the exporter to explain how the exporter can get the documents

  • Make a written report based on your findings , give copy of documents as examples

Entrepreneurship 6, 2013


Reference

Reference

Entrepreneurship 6, 2013

[email protected]


  • Login