1. THE INTERNATIONAL TRADE TRANSACTION

2. THE INTERNATIONAL TRADE TRANSACTION
THE BASIC MODEL
1. Negotiate Terms of Sale
2. Issue Purchase Order
3. Ship Product to Importer
4. Send Documents
5. Clear Customs & Deliver Product
6. Make Payment

3. THE INTERNATIONAL TRADE TRANSACTION
1. NEGOTIATE TERMS OF SALE
Final Agreement Includes
price - packaging
quality - insurance
quantity
time & place of delivery
payment method
inspections

4. THE INTERNATIONAL TRADE TRANSACTION
ADDITIONAL CONTRACT PROVISIONS
2. ISSUE PURCHASE ORDER
3. SEND DOCUMENTS:
SHIPPING AND DELIVERY INSTRUCTIONS:
Shipping Deadline
Excusable
Inexcusable

5. THE INTERNATIONAL TRADE TRANSACTION
DELIVERY INSTRUCTIONS
INCOTERMS
6 GROUPS OF INCOTERMS
EX POINT OF ORIGIN
ex works
ex factory
ex mill
ex warehouse
SELLER MUST
BUYER MUST

6. INTERNATIONAL TRADE TRANSACTION
F.O.B. (free on board)
ownership transfer evidenced by a clean bill of lading
SELLER MUST:
BUYER MUST:

7. INTERNATIONAL TRADE TRANSACTION
F.A.S.(free alongside)
seller’s obligations are fulfilled when goods place alongside ship; buyer is required to clear goods for export.
SELLER MUST:
BUYER MUST:

8. INTERNATIONAL TRADE TRANSACTION
C & F (cost & freight)
seller’s price includes cost of transport but NOT insurance
SELLER MUST:
BUYER MUST:

9. INTERNATIONAL TRADE TRANSACTION
C.I.F. ( Cost, Insurance, & Freight)
SELLER MUST:
BUYER MUST:
EX DOCK

10. INTERNATIONAL TRADE TRANSACTION
PACKAGING FOR EXPORT
PURPOSE
UNIT LOAD SYSTEM
SHIPPING MARKS

11. INTERNATIONAL TRADE TRANSACTION
EXPORT SHIPPING DOCUMENTS
DOCUMENTATION
Two Categories
SHIPPER’S EXPORT DECLARATION
EXPORT LICENSE
MARINE INSURANCE POLICY
CERTIFICATE OF ORIGIN
CONSULAR INVOICES

12. INTERNATIONAL TRADE TRANSACTION
BILLS OF LADING
FUNCTIONS
TYPES
Straight
Order
other