L E C T U R E # 2 B Y

J . N . V O H R A B . T E X T , M . T E C H , F . I . E , C . E N G . , M . I . M . A , M P M A

Export Merchandising and Trade Documentation (For Garment Units)

Important Aspects of Exports Orders Received

Standards and specifications of the styles ordered Quantity of each style with size and colour breakup Total Value of the Contract Terms of Payment, amount/mode & currency Terms of Delivery Insurance clauses Period of Delivery/Shipment Packing, Labeling and Marking requirements Inspection requirements Other Documentary Requirements

Sale Contract

Buyer (importer) and the seller (exporter) reach to an agreement (sales contract) on following points.

Quantity of garments with colour and size assortment Detailed specifications (quality) of the garments Prices of the garments (FOB or C & f, or CIF) Dispatch dates of the goods Mode of transport of the goods (by Sea or Air) Mode of payments (as to how the importer will make payment to the exporter)

L/C Check List

Detailed Checks to be made immediately after the Letter of Credit is received:

Letter of Credit? Confirmed and Irrevocable or revocable Payment terms? At sight or at a later date. Is the value of the Letter of Credit correct? Is the value of the L/C is according to the prices and quantities settled Check the validity dates of the credit.

L/C Check List

Are the terms of delivery the same as you quoted? (e.g. FOB,CIF), Is your company’s name and address spelt correctly And are the buyer’s details similarly correct? Port of Shipment Last Date of Shipment Whether partial shipment/Trans-shipment permitted or not permitted

Insurance Policies

For Road Transport up to the port For Marine Insurance up to destination port

Individual Shipment Policy Open Policy

Preparing Shipments

Merchant must be aware of some basic requirements. It is important that exporters ensure that the merchandise is;

Packed correctly so that it arrives in good condition; Labeled correctly to ensure that the goods are handled properly and arrive on time at the right place; Documented correctly to meet domestic and foreign government and banking requirements. Insured against damage, loss, pilferage and delay.

Preparing the documents for shipment

Getting the shipment checked for quality and obtaining the inspection report from the inspecting person/agency Approving the shipments after quality inspection report Preparing invoices, packing lists, and quality check reports Following the instructions of the buyers regarding dispatch instruction Passing on all the documents to the accounts section to process the papers for obtaining payments as per the terms of the buyer

Invoice

Sample

Packing List

Inspection report

Thank You