Export / Import International Trade Brandon Walcutt

Overview General overview Player identification What to sell/where/how Methods of Selling Ex/Im Financing Global Logistics

Why Import / Export 3 Primary Reasons –Availability – bananas in Korea –Cachet – imported products are more desirable, ie. French champagne, Italian handbags, etc. –Price – Chinese goods can be considerably cheaper than those from Korea

Process Overview Have products (manuf., agent, etc.) Determine your market Find buyers Make the sale Financial arrangements Ship the product Get paid!

Export Players Exporters (p16) –Manufacturer Export Department –Export Mgmt Company –Export Trading Company –Import / Export Merchant

Import Players Importers (p22) –Manufacturer Representative (Specialist) –Representative (Generalist) Usually commission based –Distributor (Wholesale) –Retailer –Buying agents / trading companies

Govt. Players Customs offices Tax offices Other offices –Agriculture –Etc.

What to Sell…Where? Your first step… –Import or Export –Contacts –Products Product Market Research (p104) Country Market Research (p106) –Considerations –Where / What would you sell? Why?

Making Contact - Exporting Sales Leads –Internet –Govt. Assistance – ie. KOTRA Local embassy –Private Firm Assistance Sales Trip

Making Contact - Importing Social / Sales Networks Cold Calling Lots more information on these activities on pages 192~ in your packet.

Additional Methods - Sales Intermediary Direct Purchase / Sale

Process - Exporting 1. Generate interest 2. Set: –Price –Shipping date and terms –Payment agreement –Necessary documentation –Packing / labeling documentation

Process - Exporting 3. Generate pro forma invoice (quote) –Negotiate if necessary 4. Receive LC from the bank

Process - Exporting 5. Fulfill the terms of the LC –Arrange for product –Make shipping / insurance arrangements –Packing –Transportation –Collect shipping docs 6. Present shipping docs to the bank 7. Get paid!

Process - Exporting 1. Generate interest –How? Direct / Indirect sales efforts. 2. Set: –Price Per unit / carton / container –Shipping date and terms Shipping Method –Air / Land / Sea Shipping Terms –Insurance – p54

Process - Exporting 2. Set: –Payment agreement Direct payment Letter of Credit More will be discussed on this subject at a later date.

Process - Exporting 2. Set: –Packing / labeling documentation –Identify what is necessary Packing slip for the shipment Bill of Lading – p76 ~ 86 Certificates of Manufacture / Origin Commercial Invoice Consular Invoice Dock Receipts Inspection Certificates Insurance Certificate Shippers Export Declaration

Process - Exporting 3. Generate pro forma invoice (quote) –P48~49 –The pro forma should have the following points: Product description Price Terms of sale – ie. How shipped, when does title change hands, etc. Terms of payment Length of time prices are valid Length of time necessary for shipping

Process - Exporting 4. Receive LC from the bank (p59~69) –Define –Walk through LC parts p64-69 –What happens if terms are not exactly met?

Process - Exporting 5. Fulfill the terms of the LC –Arrange for product Make it if necessary or prep what you already have –Make shipping / insurance arrangements –Packing (Also see p174) –Transportation –Customs –Collect shipping docs 6. Present shipping docs to the bank –Necessary for the fulfillment of your LC 7. Get paid! –Banks fulfill the LC terms