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Export Procedures

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.

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Export Procedures

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  1. Export Procedures Entrepreneurship 6, 2013

  2. 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

  3. WORK FLOW Find Product to Export Find Buyers Negotiate Payment Send Goods & Document Sales Contract / Purchase Order Entrepreneurship 6, 2013

  4. Terms and Procedures Entrepreneurship 6, 2013

  5. 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

  6. 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

  7. 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

  8. Entrepreneurship 6, 2013

  9. Packing List Entrepreneurship 6, 2013 Like Invoices, Packing List has no price and contain the Gross Weight information.

  10. 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

  11. Entrepreneurship 6, 2013

  12. 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

  13. Entrepreneurship 6, 2013

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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.

  19. 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.

  20. 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

  21. 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

  22. 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

  23. Reference Entrepreneurship 6, 2013 wibowobudhi@ymail.com

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