Exports

BUSINESS

The purpose of exports is to ensure the continued growth of the company that sells in other countries. EXPORT=SALES

The exports: are subject to different regulations and administrative; have different customs and business practice.

1. International commercialization

1. international business terms

2. methods of international payment

3. internationalcontracts

INCOTERMS: international Commerce Terms.

RAFTD: Revised American Free Trade Definition.

INCOTERMS: are a set of internationally recognized trading terms, defined by the international chamber of commerce (ICC), which are used for the purchase and shipping of goods in the international market place. There are 13 dif terms, each of which helps users’ deals with different situationsinvading the movement of goods.

constitute a basis for regular trading; they delimit in detail the rights, responsibilities and obligations between buyer and seller, making a direct reference to the transport that is used and the place where he delivers the goods.

Inco terms are most frequently listed by category.

E= Exit /ORIGIN E: E- terms occur when a sellers responsibilities’ arefulfilled when the goods are ready to depart from their facilities.

F= Free /ORIGIN F: term beginning with F; refer to shipment where the seller does not pay for the primary cost of shipping.

C= Cost /DESTINATION C: the seller contracts the transportation at their expense, without assuming any risk or responsibility of the goods once it has been shipped.

D= Delivered /DESTINATION D: D- termscover shipment where the seller’s responsibilities’ ends when the goods arrive at some specific point.

Incoterms

EXW :( Exworks) means that the seller delivers when he places the goods at the disposal of the buyer at the factory or warehouse. The seller doesn’t have the obligations to load the goods at any collecting vehicle.

FCA: (Free Carrier) means that the seller delivers the goods,cleared for export, to the carrier nominated by the buyer at the named place. Delivery is accomplished at the predetermined port of destination point and the buyer is responsible for insurance.

FAS: (Free Along Side Ship) Means that the seller delivers when the goods are placed along side the vessel at the named port of shipment. This means that the buyer has to bear all costs and risks of lossor damaged to the goods from that moment.

FOB: (Free On Board) Means that the seller delivers when the goods pass the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or damaged to the goods from that point. The FOB term requires the seller to clear the goods for export.

CFR: (Carriage and Freight) Means that the seller deliverswhen the goods pass the ship’s rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination but the risks of loss or damage are transferred to the buyer.

CIF: ( Cost, Insurance and Freight) Means that the seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the costs and freightnecessary to bring the goods to the named port of destination, but the risk of loss or damage to the goods occurring after the time of delivery, are transferred to the buyer.

CPT: (Carriage Paid to) Means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means thatthe buyer bears all risks and any other costs occurring after the goods have been delivered.

CIP: (Carriage and Insurance Paid To) Means that the seller delivers goods to the carrier nominated by him but the seller must pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any additional costs occurring after the goods...