The basics of import and export Import and export are interesting areas and not as difficult as some think because the term “import and export” applies to commercial transactions that take place between foreign borders. One might think that the field of import and export is limited to those who do not have much money, which is a very wrong idea. In the 21st century, we have a lot of security, and e-commerce for purchases is made. Sell items without traveling.
Some important tips before working in the field of import / export.
Consider before starting the legal aspect of the question: – Before starting in the field, you must establish a real company with a full license that qualifies you to do this activity, and the best person to ask is a chartered accountant who can prepare you a. Which company can agree to reduce costs. Open a business bank account, this account is closely related to the customs summary, the transfer of money to the company or factory is only allowed through the company account, and then you don’t have to worry about huge office expenses because it is too big. Annoying and successful project takes two years or more and this applies to all areas. It’s okay, you can work from home first.
As long as you keep company and shipping documents for your employees to see, it’s best to use a small part of the home as a small office, as we don’t recommend hosting workers or employees who work from home. If not, find a funding channel. The funding portion may be the biggest hurdle in your business history. You haven’t found a merchant who will pay you up front if you can’t see the merchandise. Especially because of the lack of trust and credibility in our country, everyone is afraid of losing money, so even if they pay part of the shipping cost, try to find a dealer. Do not always import goods that your country does not produce just because the country always imposes high taxes on locally produced goods and sometimes even withholds them because it can negatively affect the economy of your country without you even realizing its impact. Hiring a forwarder in your country, the basics of import and export. The agent works with another shipping agent in the country you are importing from, and this is better than working with the shipping agent in the exporting country, and in the event of any delays, you can receive the goods without any problems.
International contract clauses in the field of import and export
In each field, there are certain terms that must be recognized by the pioneers in the field of international trade, including: – Incoterms: – This is an abbreviation of Incoterms, i.e. Incoterms, used in the business transactions of buyer and seller. Key: – This means that the buyer receives his goods at the factory. FOB: – is an abbreviation of free on board, which means that the buyer receives the goods on board the ship at the port of loading. C&f:- This means that the seller makes the delivery at the port of destination i.e. the buyer pays for the goods to be delivered to the port. CIF: – Safe delivery of goods at the port of destination means payment of freight charges including insurance.
An internationally recognized payment method for import and export
Each payment method has its advantages and characteristics, which are reflected in: Electronic transfer: in accordance with the agreement with the seller, part of the payment is paid after reviewing the documents, and the rest is prepayment. Traders prefer the method because it is the fastest and least expensive method. Letter of Credit:- This method is called documentary letter of credit, in short, the bank makes the transaction by collection, the buyer goes to the bank when he wants to buy the product, so he opens a documentary letter of credit, so the bank makes a document containing the product specifications and prices that are sent to a bank The payee, informs the beneficiary bank, and then the seller accepts or declines the offer, but this approach adds additional fees to both buyer and seller, and the seller doesn’t like that.
Types of documentary credits
There are two types of documentary credits:
Confirmed: – No Confirmed.
Irrevocable: – Any irrevocable or cashable.