PROFILE INDEX. Introduction 3. Key Definitions 4. Features & Benefits 5. Standard Operating Procedure 6. Service Process 7. Service Undertaking 8

Size: px
Start display at page:

Download "PROFILE INDEX. Introduction 3. Key Definitions 4. Features & Benefits 5. Standard Operating Procedure 6. Service Process 7. Service Undertaking 8"

Transcription

1 COMPANY PROFILE

2 PROFILE INDEX Introduction 3 Key Definitions 4 Features & Benefits 5 Standard Operating Procedure 6 Service Process 7 Service Undertaking 8 Contact Details 9 Trade Finance Glossary 10 Page 2

3 INTRODUCTION Turners Shipping is proud to announce an innovative Start-to-End facility, which has been especially designed for the South African Importer. This bespoke service has been developed by combining the Trade Finance element with the Freight Forwarding and Customs Clearing components, to deliver a total logistics supply chain package. Whilst there are a number of financial institutions who provide importers with trade finance facilities, they are generally only concerned about the financial component of the transaction. We believe that there are enormous benefits for the Importer should they utilise a service provider that offers a facility which combines both the trade finance and the international logistics requirements. Turners Shipping has the unique position of being able to offer South African Importers with this collective Start-to-End facility. Essentially, by utilising Turners Shipping s existing freight forwarding and customs clearing strength as the major ingredient and then by adding the trade finance portion as a value added service, Turners Shipping is able to provide Importers with the ultimate package. This Start-to-End facility has been especially constructed to provide discernible logistics excellence at an all-inclusive rate. A major feature of this Start-to-End service is a total reporting system which provides the Importer with absolute visibility, from the time of order placement, right through to final delivery. In addition a detailed costing schedule is available which identifies every cost aspect of the imported product. The overall objective is to allow Importers the time to concentrate on running and growing their own business while Turners Shipping attends to their total logistics supply chain requirements. This at the best possible rates!! Page 3

4 KEY DEFINITIONS Supply Chain A supply chain is a system of Organisations, people, technology, activities, information and resources involved in moving a product or service from Supplier to Customer. Logistics The process of strategically managing the movement of goods from the point of origin to point of consumption. Total Logistics This concept aims to treat the many different elements that come under the broad category of moving products from one point to another under a single integrated system. This would include the following: Financing Purchasing Inventory Management Cargo Tracking Freight Forwarding Customs Clearing Communication / Reporting Invoicing Page 4

5 FEATURES AND BENEFITS 1. Member of the 118 year old Turner Group of Companies 2. Operating in conjunction with Turners Shipping 3. BEE procurement entitlement for Importers of 137.5% 4. Repayments to suit credit terms and trade cycle 5. Single point of contact 6. Complete visibility track & trace and shipment status report 7. Repayments in South African Rands 8. Full costing analysis per shipment 9. Opportunity to negotiate better pricing & settlement discounts 10. Alleviate cash flow 11. Creates additional working capital Page 5

6 STANDARD OPERATING PROCEDURE Importer orders Product and advises Turners Shipping (TS) of the order details and payment terms. TS will then arrange for Foreign exchange requirements and Payment (in terms with the specific requirement) and for the Freight Forwarding. TS will then handle the Overseas landside logistics, sea/air freight forwarding to RSA, local customs clearing, the final delivery and all RSA charges TS will then prepare a Trade Finance Invoice and a Customs Clearing Invoice in accordance with arranged terms. TS will advise Importer of the status of all the progress stages of the shipment from Estimated Time of Departure (ETD) ex the Suppliers address until the final delivery. This information will appear on both the shipment Status report as well as the Purchase Order Management System (POMS) TS will provide the Importer with a full Costing schedule, which will be inclusive of both the Trade Finance Invoice and the Customs Clearing Invoice. Page 6

7 SERVICE PROCESS Procurement of Product Payment terms with Supplier International Customs Clearing & Freight Forwarding South African Customs Clearing Delivery Local Sales / Distribution / Payments Payment to Turners Trade Finance Page 7

8 SERVICE UNDERTAKING Best practice principals Regular operational meetings (Stakeholders/service providers) Approved Key Performance Indicator (KPI) Sanctioned Service Level Agreement (SLA) Agreed Standard Operations Procedure (SOP) Shipment Status Reports Purchase Order Management Systems (POMS) IT connectivity to Importer Most competitive rates practice Page 8

9 CONTACT DETAILS OPERATIONS Durban Neren Dayanand Branch Manager Johannesburg Paul Carter Branch Manager Cape Town Linda Newby Branch Manager ACCOUNTS Durban Ian Losinsky Financial Director Page 9

10 TRADE FINANCE GLOSSARY An introduction to Trade Terms & Definitions Letter of Credit or L/Cs (or more correctly, Documentary Credits) enable international payments typically for foreign sourced goods. LCs entail a formal set of documents to be delivered to the Purchaser s bank which, if all in order, will result in the bank making a payment to the seller s bank. Documents include a commercial invoice, Bill of Lading, packing list, amongst others. LCs have expiry dates, beyond which the delivery of the above documents will result in no payment being made. Revolving Documentary Credit is set up in the normal manner but does not expire or close. As the beneficiary sends cargo and draws payment against the instrument the credit gets topped up by the applicant at the other end each time they receive cargo or for a specific time period. Confirmed Documentary Credit is when an additional bank (not the applicant or beneficiaries bank) is asked to underwrite the payment in order to insure against the insolvency of the applicants bank, collapse of the country or currency. Standby Letter of Credit differs from the normal documentary credit in that, in order to draw down under the standby the beneficiary one would need to provide the bank with evidence of something the applicant did not do, i.e.. Did not pay under open account terms as agreed. Essentially it is a default instrument rather than a payment instrument. A Telegraphic Transfer is an instruction (via SWIFT) on behalf of a buyer to credit the account of a seller. Effectively, an international EFT. Foreign Exchange Contracts (FEC/ Forward Cover) An agreement to exchange one currency for another currency at a fixed rate on a specified date in the future. This agreement fixes the price of foreign currency payments or receipts expected to materialise at a future date and eliminates adverse currency movements beyond the agreed forward rate. Factoring: This is a sophisticated, financial tool which enables credit sales to be converted into working capital by allowing a third party to purchase your outstanding book of debts, against which an amount is advanced and the balance paid to you once it has been collected from your customers. The third party controls and maintains your debtors ledger. Invoice Discounting a method to raise debt from a company s outstanding invoices that does not require the company to relinquish administrative control of the invoices. General Notarial Bond (GNB or NGB): This is registered over movable property in general terms. That is, the movables are not individually specified in the notarial bond, but, instead, are generally identified (for example, as trading stock or furniture). Page 10

11 TRADE FINANCE GLOSSARY Special Notarial Bond. This is registered over specified movable property. The goods are specified through their description in the bond, which must make it readily recognisable and identifiable. Insurance is a contract whereby the insurer undertakes to indemnify the insured in the event of the specified risk arising. It is the intention of the insurance agreement to place the insured in a position they would have been had the insurable event not have occurred. Marine Insurance refers to the insurance of goods being transported in all forms of transport including air, road or rail An Open Marine Policy is normally used when there is a high volume and frequency of goods movement. Quite often these are taken out by Freight Forwarders and Clearing Agents to offer to their clients. Declarations of goods being covered need to be provided to the insurer before the realisation of a claim. Freight Forwarders arranges transport on behalf of a buyer or seller of goods. When contracting with a transport owner (such as a ship owner) can also be known as a Shipper. In SA, Freight Forwarders usually also provide customs clearing services. Customs & Excise: Ad Valorem costs or charges are applied based on the value of goods during movement or customs clearing, i.e. 10% of the invoice value. Customs & excise rates are generally ad valorem but freight rates are generally calculated in a different manner, i.e. per weight. A Shipper books transport services with a transport owner (such as a ship owner) on behalf of buyers and sellers of goods. Carrier: A transporter of goods, such as a ship owner or land transporter. A Bill of Exchange is defined as instructions from one party to a second party to pay a third. A Bill of Lading (B/L) is a receipt issued by a shipping line for cargo, which is a document of title to the cargo and which details the terms of the contract of carriage. A Commercial Invoice is an invoice issued by a seller to a buyer used extensively for the purposes of Customs & Excise procedures, and is typically one of the documents required to accompany an LC. Clearing Agent interfaces with customs and excise to declare goods in the correct manner use the correct forms and procedures as well as the correct formulas and calculations to ensure that goods are properly cleared and customs duties paid. Page 11

12 TRADE FINANCE GLOSSARY Incoterms: To improve consistency and remove uncertainty in international trade, the International Chamber of Commerce (ICC) in Paris developed INCOTERMS (International Commercial TERMS), a set of uniform rules for the interpretation of international commercial terms defining the costs, risks, and obligations of buyers and sellers in international transactions. First published in 1936, these rules have been periodically revised to account for changing modes of transport and document delivery. For a summary of all Incoterms, please click the following link: Some of the more commonly used Incoterms are: Free on Board (FOB) this means that risk and responsibility pass from the seller to the buyer when the goods cross the ship s rail at the port of loading, cleared for export by the seller. Cost Insurance Freight (CIF): Risk passes from the seller to the buyer when the goods cross the ships rail at the seaport of loading; however, the seller is responsible for the payment of freight and procurement of insurance to the destination seaport. Cost and Freight (C&F / C+F / CFR): The seller meets his obligation under the sales contract i.e. Risk passes from seller to buyer when the goods cross the ship s rail at the seaport of loading. The seller is however responsible for the payment of freight to the destination seaport. Ex Works (EXW): Risk and responsibility pass from the seller to the buyer when the goods are made available on the ground at the works i.e. where the goods are produced, such as at the factory, at or on the agreed future date or future time, uncleared through customs and Excise Please note: The above definitions are for basic information purposes only, and do not constitute technical or legal definitions, as such may differ from country to country, and depend upon the context in which the terms are being used. Page 12

13 NOTES Page 13

14

INCOTERMS 2010. International Commercial Terms by the ICC (International chamber of commerce)

INCOTERMS 2010. International Commercial Terms by the ICC (International chamber of commerce) INCOTERMS 2010 International Commercial Terms by the ICC (International chamber of commerce) Who is responsible and has to pay the damage/loss?? PURPOSE OF INCOTERMS To provide a set of international

More information

INCO Terms LIBERTY-TERMINALS.COM INDEX

INCO Terms LIBERTY-TERMINALS.COM INDEX 2055 Col. Cole Drive Post Office Box 2775 Georgetown, SC 29442 U.S.A. Phone: (+1 843-527-3552 Fax: +1 843-527-3554 Email: managament@liberty-terminals.com INCO Terms INDEX Ex Works (EXW)... 2 Free Carrier

More information

Article 7 - Incoterms

Article 7 - Incoterms Article 7 - Incoterms Incoterms 2000 have been updated by Incoterms 2010 and therefore the old post below is now redundant.. Please read the analysis about Incoterms 2010 here.. -------------------------------------------------------------------------------------------------------------------------------

More information

INCOTERMS 2015. The current set of Incoterms is Incoterms 2010. A copy of the full terms is available from the International Chamber of Commerce.

INCOTERMS 2015. The current set of Incoterms is Incoterms 2010. A copy of the full terms is available from the International Chamber of Commerce. INCOTERMS 2015 An overview International Commercial Terms ( Incoterms ) are internationally recognized standard trade terms used in sales contracts. They re used to make sure buyer and seller know: Who

More information

DSV Air & Sea Inc. Incoterms 2010 Introduction Guidelines

DSV Air & Sea Inc. Incoterms 2010 Introduction Guidelines DSV Air & Sea Inc. Incoterms 2010 Introduction Guidelines Contents Section Page 1 What do I need to know about Incoterms 2010? 3 2 What is Incoterms 2010 and how does it differ from Incoterms 2000? 4 3

More information

Negotiating with Your Supplier: Terms to Protect Your Company. Empower Your Supply Chain Seminar

Negotiating with Your Supplier: Terms to Protect Your Company. Empower Your Supply Chain Seminar 6 Negotiating with Your Supplier: Terms to Protect Your Company What are Incoterms? 11 Terms of shipment and delivery for use in contracts for B2B sales/purchase goods Developed by the International Chamber

More information

INTERNATIONAL TRADE FINANCE SERVICES

INTERNATIONAL TRADE FINANCE SERVICES INTERNATIONAL TRADE FINANCE SERVICES DOCUMENTARY LETTERS OF CREDIT A PRACTICAL GUIDE CONTENTS LETTERS OF CREDIT SIMPLY DEFINED.............................................2 BENEFITS OF A LETTER OF CREDIT...............................................3

More information

CFR (CNF/C&F) (Cost and Freight) has a long history in the INCOTERMS.

CFR (CNF/C&F) (Cost and Freight) has a long history in the INCOTERMS. Incoterms - CFR/CIF CFR (CNF/C&F) (Cost and Freight) has a long history in the INCOTERMS. As an INCOTERM, seller passes the risk to the buyer when the cargo crosses the ship's rail at the port of origin.

More information

Canada Export Requirements Incoterms

Canada Export Requirements Incoterms Canada Export Requirements Incoterms Topics of Discussion Canada export requirements Terms of sale Insurance Documentation Export Process Are there export restrictions? What are the import conditions?

More information

What are Incoterms? Any mode of transport: Sea and inland waterway transport (only): CIP - Carriage and Insurance Paid

What are Incoterms? Any mode of transport: Sea and inland waterway transport (only): CIP - Carriage and Insurance Paid What are Incoterms? International Commerce Terms (Incoterms) are an internationally recognised standard trade terms that set out buyer and seller responsibilities. Incoterms are maintained and developed

More information

INCOTERMS 2000 EX WORKS (EXW)

INCOTERMS 2000 EX WORKS (EXW) INCOTERMS 2000 The purpose of Incoterms 2000 is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different

More information

INCOTERMS 2010 INTERNATIONAL COMMERCIAL TERMS

INCOTERMS 2010 INTERNATIONAL COMMERCIAL TERMS INCOTERMS 2010 INTERNATIONAL COMMERCIAL TERMS (CONTRACT OF SALE) Incoterms Key elements of international contracts of sale. They tell the parties what to do with respect to carriage of the goods from buyer

More information

International Chamber of Commerce (ICC)

International Chamber of Commerce (ICC) International Chamber of Commerce (ICC) Peak representative world business organization Established 1919 Fundamental mission is to promote trade and investment across frontiers and help business corporations

More information

Incoterms 2010. The latest update of the Incoterms have entered into force on 01 January 2011, known as Incoterms 2010

Incoterms 2010. The latest update of the Incoterms have entered into force on 01 January 2011, known as Incoterms 2010 The latest update of the Incoterms have entered into force on 01 January 2011, known as Incoterms 2010 The valid Incoterms as from 01 January 2010:- 1. EXW = Ex Works / all modes 2. FCA = Free Carrier

More information

Incoterms 2010 Workshop. November 2010

Incoterms 2010 Workshop. November 2010 Incoterms 2010 Workshop AGENDA Introduction to the International Trade Terms Trade Terms: EXW; FCA; FAS; FOB; CFR; CIF Trade Terms: CPT; CIP; DAT; DAP;DDP Important Notes on Obligations, Risks and Exposure

More information

A Brief Introduction to Logistics

A Brief Introduction to Logistics A Brief Introduction to Logistics A Brief Introduction to Logistics The international freight market has a wealth and variety of transport providers to meet the needs of international trading companies

More information

INCOTERMS 2010 INDEX

INCOTERMS 2010 INDEX CHAPTER 30 INCOTERMS 2010 1 CHAPTER 30 INCOTERMS 2010 INDEX Para No TOPIC Page No 30 Introduction 3 30 1 EX Works (EXW) 4 30 2 Free Carrier (FCA) 4 30 3 Free Alongside Ship (FAS) 5 30 4 Free on Board (FOB)

More information

Contents. List of Tables. List of Figures. Preface. About the Authors. Acknowledgements

Contents. List of Tables. List of Figures. Preface. About the Authors. Acknowledgements Contents List of Tables List of Figures Preface About the Authors Acknowledgements Glossary xii xiii xv xvii xviii xix 1 International Trade and Inherent Risks 1 Background of International Trade 1 Exporters

More information

INCO Terms. The seven rules defined by Incoterms 2010 for any mode(s) of transportation are:

INCO Terms. The seven rules defined by Incoterms 2010 for any mode(s) of transportation are: INCO Terms INCO Terms The seven rules defined by Incoterms 2010 for any mode(s) of transportation are: EXW: Ex Works (named place of delivery) The seller makes the goods available at its premises. This

More information

World Trade Practices Chapter 14 FCL= full container load LCL= less than full container load (door to door)

World Trade Practices Chapter 14 FCL= full container load LCL= less than full container load (door to door) Logistics Containerized Cargo Twenty-Foot Equivalent Units (intermodal shipping container) 1 TEU 20 long container 2 TEUs per 40 long container World Trade Practices Chapter 14 FCL= full container load

More information

APPENDIX V: INTERNATIONAL COMMERCIAL TERMS (INCO)

APPENDIX V: INTERNATIONAL COMMERCIAL TERMS (INCO) APPENDIX V: INTERNATIONAL COMMERCIAL TERMS (INCO) INCOTERMS (INternational COmmercial Terms) 2000, published by the International Chamber of Commerce (2000 pub 560), are the most commonly accepted terms

More information

THE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE

THE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE THE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE Introduction The working capital cycle is the period of time which elapses between the points at which cash is used in the supply/production process, to

More information

10. Incoterms The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International

10. Incoterms The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International 10. Incoterms The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in International

More information

Letters of Credit. A Guide to Letters of Credit

Letters of Credit. A Guide to Letters of Credit Letters of Credit A Guide to Letters of Credit These manuals are created as resource guides for members of Saskatchewan Trade and Export Partnership (STEP). For more information on these manuals please

More information

Australian Customs Cargo Advice

Australian Customs Cargo Advice Australian Cargo Advice Incoterms 2010 Number 2010/13 This notice is to advise that the International Chamber of Commerce (ICC) has revised Incoterms 2000 to reflect changes in international and domestic

More information

OVERSEAS TRADE FINANCE ( OTF )

OVERSEAS TRADE FINANCE ( OTF ) OVERSEAS TRADE FINANCE ( OTF ) Port to Port Trade Finance Trade Finance Equity Trade Finance Report 3 Port to Port Trade Finance Trade Finance Equity Overseas Trade Finance specialise in sourcing trade

More information

WHAT INCOTERMS 2010 RULES ARE

WHAT INCOTERMS 2010 RULES ARE INCOTERMS NOTES WHAT INCOTERMS 2010 RULES ARE 11 terms of shipment and delivery provided by the International Chamber of Commerce for use in contracts for the business-to-business sales/purchases of tangible,

More information

EXW (insert named place of delivery) Incoterms 2010

EXW (insert named place of delivery) Incoterms 2010 RULES FOR ANY MODE OR MODES OF TRANSPORT EX WORKS EXW (insert named place of delivery) Incoterms 2010 GUIDANCE NOTE This rule may be used irrespective of the mode of transport selected and may also be

More information

International Terms of Sale: Incoterms Webinar. Miller & Company P.C. Charles W. Ballard Kansas City, Missouri June 14, 2012

International Terms of Sale: Incoterms Webinar. Miller & Company P.C. Charles W. Ballard Kansas City, Missouri June 14, 2012 International Terms of Sale: Incoterms Webinar Miller & Company P.C. Charles W. Ballard Kansas City, Missouri June 14, 2012 What are Incoterms? Incoterms are internationally agreed-upon definitions for

More information

INCOTERMS 2010 ANY MODE OF TRANSPORT. EXW (insert named place of delivery) Incoterms 2010

INCOTERMS 2010 ANY MODE OF TRANSPORT. EXW (insert named place of delivery) Incoterms 2010 EXW (insert named place of delivery) Incoterms 2010 EXW The only responsibility of the seller is to places the goods at the disposal of the buyer at the seller s premises or at the named place. The buyer

More information

Financial Instruments

Financial Instruments There are two basic forms of Letters of Credit: Standby (SBLC) and Documentary (DLC). Financial Instruments Documentary Letters of Credit can be either Revocable or Irrevocable, although the first is extremely

More information

TRADE AFRICA Trade Promotion Program

TRADE AFRICA Trade Promotion Program Incoterms 2000 In their sells contract the seller (exporter) and the buyer agree on the conditions of sale: payment on the one hand, delivery on the other. These terms determine at what precise moment

More information

Tamil Nadu Technology Development & Promotion Center

Tamil Nadu Technology Development & Promotion Center Financial Institutions in Food Business Day 3, Plenary Session I, 1000 Hrs-1115 Hrs, 19 th Dec 2009, MSME DI,Guindy, Chennai Presented By: H M Sathyamurthy Tamil Nadu Technology Development & Promotion

More information

Incoterms. This guideline is also posted on the UNOPS intranet: Main Page Practices Procurement How to guides

Incoterms. This guideline is also posted on the UNOPS intranet: Main Page Practices Procurement How to guides Incoterms This guideline is also posted on the UNOPS intranet: Main Page Practices Procurement How to guides Organizational Effectiveness Centre 20 ecember 2006 Contents 1 WHAT ARE INCOTERMS... 2 2 WHAT

More information

CIF Cost, Insurance & Freight

CIF Cost, Insurance & Freight CIF Cost, Insurance & Freight 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 freight necessary

More information

Diagram: International Commercial Terms

Diagram: International Commercial Terms Diagram: International Commercial Terms INTERNATIONAL COMMERCIAL TERMS EXW FAS FCA FOB CFR CIF CIP CPT DAF DDP DDU DEQ DES Ex Works Free Alongside Ship Free Carrier Free On Board Cost and Freight (The

More information

GLOSSARY OF TRADE AND PAYMENT TERMS

GLOSSARY OF TRADE AND PAYMENT TERMS GLOSSARY OF TRADE AND PAYMENT TERMS ACCEPTANCE: Under a Letter of Credit, an acceptance drawn on and accepted by a bank that thereby becomes primarily liable to pay on the maturity date. ACCOUNTS PAYABLE:

More information

Chapter 8 EXPORTS and IMPORT FINANCING

Chapter 8 EXPORTS and IMPORT FINANCING Chapter 8 EXPORTS and IMPORT FINANCING Form of Trade Financing Direct form Loan to finance purchases Prepayment by buyers (sometimes in the form of red clause L/C) Delayed payment by sellers Indirect form

More information

INTERNATIONAL TRADE FLOW DIAGRAMS

INTERNATIONAL TRADE FLOW DIAGRAMS The structure of Incoterms (Copyright INCOTERMS) : Group E Departure Main Carriage Unpaid Group C : Main Carriage Paid Arrival : EXW Ex Works (... named place) FCA Free Carrier (... named place) FAS Free

More information

INCOTERMS 2010 AN INTRODUCTION

INCOTERMS 2010 AN INTRODUCTION AN INTRODUCTION 1 Copyright CargocandisFürst WHAT THEY ARE Incoterms is an abbreviation of International Commercial Terms Incoterms are published by the International Chamber of Commerce First published

More information

FRAMEWORK AGREEMENT For Supply of Tarpaulins / plastic sheeting for World Vision International disaster response

FRAMEWORK AGREEMENT For Supply of Tarpaulins / plastic sheeting for World Vision International disaster response FRAMEWORK AGREEMENT For Supply of Tarpaulins / plastic sheeting for World Vision International disaster response THIS FRAMEWORK AGREEMENT ("Agreement"), entered into on, by and between: [SUPPLIER NAME]

More information

Incoterms Incoterms EXW ex works Seller ex works ex factory ex mill ex plant ex refinery ex site ex warehouse EXW

Incoterms Incoterms EXW ex works Seller ex works ex factory ex mill ex plant ex refinery ex site ex warehouse EXW INCOTERMS Incoterms, promulgated by the International Chamber of Commerce, is an acronym for International commercial terms, and provide a standard set of definitions for trade terms (also known as delivery

More information

Trade Services Service & Price Guide

Trade Services Service & Price Guide Trade Services Service & Price Guide Version1: April-2014 Standard pricing applicable for Trade Services (applicable for Wholesale Banking / Transaction Banking / SME & Consumer Banking Clients of Standard

More information

Logistically Speaking: Using Delivery Terms to Allocate Supply Chain Risks

Logistically Speaking: Using Delivery Terms to Allocate Supply Chain Risks Logistically Speaking: Using Delivery Terms to Allocate Supply Chain Risks Allen L. Anderson, Lawyer FEES & BURGESS, P.C. 256/536-0095; anderson@feesburgess.com Jeffrey L. Roth, Lawyer FEES & BURGESS,

More information

BEST FORMS OF MONEY TRANSFER AND PAYMENT CONDITIONS

BEST FORMS OF MONEY TRANSFER AND PAYMENT CONDITIONS BEST FORMS OF MONEY TRANSFER AND PAYMENT CONDITIONS BEST FORM FOR MONEY TRANSFER FORMS OF MONEY TRANSFER INTRODUCTION: Sending or receiving money for either payment of salaries, settlement of business

More information

Quick Reference Guide to Incoterms 2010. Overview

Quick Reference Guide to Incoterms 2010. Overview Local National International Quick Reference Guide to Incoterms 2010 Overview The Incoterms rules are an internationally recognized standard and are used worldwide in international and domestic contracts

More information

DLC :Documentary Letter of Credit - Issued and guaranteed by the bank for the full amount of the contract, each shipment paid seperately.

DLC :Documentary Letter of Credit - Issued and guaranteed by the bank for the full amount of the contract, each shipment paid seperately. Financial Instruments TRADE DICTIONARY COMMONLY USED TRADING TERMS LC : Letter of Credit - ICC UCP500 guidelines. DLC :Documentary Letter of Credit - Issued and guaranteed by the bank for the full amount

More information

INTERNATIONAL SHIPPING POLICY 2012

INTERNATIONAL SHIPPING POLICY 2012 INTERNATIONAL SHIPPING POLICY 2012 The following is a checklist of information that must be listed on any International Purchase Order before it is accepted and processed. Name and invoicing address of

More information

A GuiDe to DoCumentArY Business. Documentary Credits and Collections.

A GuiDe to DoCumentArY Business. Documentary Credits and Collections. A GuiDe to DoCumentArY Business. Documentary Credits and Collections. Contents. The Documentary Collection. Documentary collection process. 7 General information. 7 The collection order. 8 What you should

More information

Incoterms 2010. General mode of transportation

Incoterms 2010. General mode of transportation Incoterms 2010 The eighth published set of pre-defined terms, Incoterms 2010 defines 11 rules, reducing the 13 used in Incoterms 2000 by introducing two new rules ("Delivered at Terminal", DAT; "Delivered

More information

Guide to importing and exporting

Guide to importing and exporting Guide to importing and exporting September 2011 Version 41 Table of contents Introduction 4 We have the solutions for your needs...4 Important Information...4 Getting started 5 What do I do first?...5

More information

S A G E P A S T E L P A R T N E R V E R S I O N 1 2 V e r s i o n 1 2. 1 T r a i n i n g M a n u a l L e s s o n 4

S A G E P A S T E L P A R T N E R V E R S I O N 1 2 V e r s i o n 1 2. 1 T r a i n i n g M a n u a l L e s s o n 4 V e r s i o n 1 2. 1 T r a i n i n g M a n u a l L e s s o n 4 [ Lesson 4 ] Using the Auto Setup [ Learning Outcomes ] During the course of this lesson, you are going to set up a company using the auto

More information

GUIDE TO INTERNATIONAL PAYMENT METHODS. Making international trade accessible to every business

GUIDE TO INTERNATIONAL PAYMENT METHODS. Making international trade accessible to every business GUIDE TO INTERNATIONAL PAYMENT METHODS Making international trade accessible to every business 2 As the globe is becoming smaller and international trade is becoming easily accessible, the issue of moving

More information

INCOTERMS IN TWO MAJOR GROUPS

INCOTERMS IN TWO MAJOR GROUPS INCOTERMS IN TWO MAJOR GROUPS Incoterms has become a famous term in the international freight world. In fact it is a word that is copyrighted by the International Chamber of Commerce (ICC). Following some

More information

Al-Saudia Virtual Academy Pakistan Online Tuition Online Tutor Pakistan

Al-Saudia Virtual Academy Pakistan Online Tuition Online Tutor Pakistan Al-Saudia Virtual Academy Pakistan Online Tuition Online Tutor Pakistan LETTERS OF CREDIT Introduction: As the world s economy expanded, international trade started. In the beginning, there were serious

More information

ISO20022 Trade Services Dashboard Description of business processes. ISO20022 - Trade Services Description of Business Processes

ISO20022 Trade Services Dashboard Description of business processes. ISO20022 - Trade Services Description of Business Processes ISO20022 Trade Services Dashboard Description of business processes 1 Trade Services Description of Procurement: Sub-Functions Tendering Ordering Delivering Invoicing Process for buyer to contact potential

More information

Trade Finance and Payment Terms

Trade Finance and Payment Terms Trade Finance and Payment Terms June 22, 2010 11:00 am EDT You should be able to listen to this presentation through the speakers of your computer. A copy of the slides of this presentation will be available

More information

Appendix 16 Trade Finance

Appendix 16 Trade Finance Appendix 16 Trade Finance Trade finance is the term used to describe the means by which companies finance and secure payment for the provision of goods and services. It is usually used to describe international

More information

INTERNATIONAL FINANCIAL SETTLEMENTS

INTERNATIONAL FINANCIAL SETTLEMENTS INTERNATIONAL FINANCIAL SETTLEMENTS Dr Katarzyna Sum Chair of International Finance Warsaw School of Economics Lecture information The material for the lectures is available on my website http://akson.sgh.waw.pl/~ksum/

More information

Want to start or grow your import/export business? Learn how from industry experts. View our training schedule. International Payment Methods

Want to start or grow your import/export business? Learn how from industry experts. View our training schedule. International Payment Methods Want to start or grow your import/export business? Learn how from industry experts. View our training schedule International Payment Methods As the globe is becoming smaller and international trade is

More information

Global Transaction Services

Global Transaction Services Global Transaction Services Cash Management Trade Services and Finance Securities and Fund Services Maximizing the Benefits of Export Letters of Credit: A Risk Mitigation Tool William E. Morrissey Director

More information

Export Payment Options. Explore Export Cardiff 2015

Export Payment Options. Explore Export Cardiff 2015 Export Payment Options Explore Export Cardiff 2015 The world is changing fast Source: Financial Markets 3 The benefits of exporting The opportunity currently, only about 20 per cent of UK SMEs export.

More information

Step 7 Transportation

Step 7 Transportation Step 7 Transportation Qualifications of a Good Freight Forwarder How to Prepare an International Shipment How to Handle Small Shipments How INCOTERMS Affect Your Shipment Required Shipping Documents Why

More information

Westpac WinTrade User Guide Import Letters of Credit Westpac Banking Corporation ABN 33 007 457 141 incorporated in Australia (New Zealand division).

Westpac WinTrade User Guide Import Letters of Credit Westpac Banking Corporation ABN 33 007 457 141 incorporated in Australia (New Zealand division). Westpac WinTrade User Guide Import Letters of Credit Westpac Banking Corporation ABN 33 007 457 141 incorporated in Australia (New Zealand division). Westpac Banking Corporation 2008 This document is copyright

More information

Index. call options 102 cap and floor options 103 capital goods 125 capital markets 145 capital risk 111 cargo insurance 16

Index. call options 102 cap and floor options 103 capital goods 125 capital markets 145 capital risk 111 cargo insurance 16 Index acceptance 50 accessory obligation 71 Act of God 24 advance payment 35 advance payment guarantee 77 adverse business risks 20 advising bank 48, 73 air waybill 43 amendments 55 annuities 150 anti-corruption

More information

Frequently Asked Questions Trade Services

Frequently Asked Questions Trade Services Frequently Asked Questions Trade Services IMPORT LETTER OF CREDIT What are the various forms of Import Services? (Payment instruments) in International Trade? There are two main options: Letter of Credit

More information

Required Details to be filled in the Applications:

Required Details to be filled in the Applications: 2 5. Account Number. Cheque No. 5. Amount. Cheque Date. Drawer Name. Customer Signature & Stamp. Cheque(s) must be signed by the Drawer. 2. Cheque(s) must not be Non- Negotiable.. Cheque(s) must be Blank

More information

LOGISTICS EXPERIENCE CUTTING EDGE EXPERTISE

LOGISTICS EXPERIENCE CUTTING EDGE EXPERTISE LOGISTICS EXPERIENCE Unmatched knowledge and experience gives us the ability: to deliver vehicles safely to deliver vehicles efficiently to deliver vehicles cost-effectively to deliver vehicles to even

More information

A Guide to the new Incoterms 2010 (effec7ve as of 01/01/2011)

A Guide to the new Incoterms 2010 (effec7ve as of 01/01/2011) A Guide to the new Incoterms 2010 (effec7ve as of 01/01/2011) Who pays for what? Goods move across interna7onal borders because there has been a sale involving: Seller Buyer Contract of sale should define

More information

LECTURE NO.8 THE ROLE OF GUARANTEES AND BONDS IN INTERNATIONAL TRADE

LECTURE NO.8 THE ROLE OF GUARANTEES AND BONDS IN INTERNATIONAL TRADE LECTURE NO.8 THE ROLE OF GUARANTEES AND BONDS IN INTERNATIONAL TRADE A guarantor issues a guarantee or bond, usually a bank or an insurance company, on behalf of an exporter. It is a guarantee to the buyer

More information

CONTENTS. E TERMS Departure Terms EXW Ex Works (... named place of delivery)... 6

CONTENTS. E TERMS Departure Terms EXW Ex Works (... named place of delivery)... 6 2 World Trade Press World Trade Press Illustrated Guide to Incoterms 2010* 800 Lindberg Lane, Suite 190 Petaluma, California 94952 USA Tel: +1 (707) 778-1124 x 3 Fax: +1 (707) 778-1329 www.worldtradepress.com

More information

Parties to a guarantee. Direct guarantees

Parties to a guarantee. Direct guarantees Guarantees The request for bank guarantees in support of contractual obligations has become common practice in the market and different forms of guarantees have evolved to cater for the diverse types of

More information

PAYMENT TERMS AND EXPORT FINANCE RESOURCES

PAYMENT TERMS AND EXPORT FINANCE RESOURCES GENERAL INFORMATION A successful export transaction starts with the negotiation of a sales contract and ends with a timely payment. The buyer/importer gets the product they want and pays the seller/exporter

More information

Incoterms 2000. English. www.if.fi

Incoterms 2000. English. www.if.fi Incoterms 2000 English www.if.fi THE TRADE TERMS OF THE INTERNATIONAL CHAMBER OF COMMERCE WHAT IS A TRADE TERM? A trade term is a combination of letters or words, which specifies certain obligations within

More information

CERTIFIED EXPORT SPECIALIST (CES) Case Study #005 Incoterms 2010 Study Material & Quiz

CERTIFIED EXPORT SPECIALIST (CES) Case Study #005 Incoterms 2010 Study Material & Quiz CERTIFIED EXPORT SPECIALIST (CES) Case Study #005 Incoterms 2010 Study Material & Quiz Incoterms 2010 Study Material Incoterms 2010 Rules International Commercial Terms (Incoterms ) are terms designed

More information

payment options letters of credit documentary collections import financing bankers acceptances incoterms

payment options letters of credit documentary collections import financing bankers acceptances incoterms Importers Handbook payment options letters of credit documentary collections import financing bankers acceptances incoterms Importers Handbook Table of Contents Global Trade Services...1 Import Payment

More information

The Law of International Trade

The Law of International Trade The Law of International Trade by Ademuni-Odeke BLACKSTONE PRESS LIMITED Contents Preface Acknowledgements TableofCases Table of Statutes Table of Statutory Instruments Table of Conventions Table of Abbreviations

More information

Transport Insurance for International trade

Transport Insurance for International trade Transport Insurance for International trade 1) International trade insurance indemnifies importers and exporters against various types of losses, including damage to goods in transit, products injuring

More information

CIP Carriage & Insurance Paid To

CIP Carriage & Insurance Paid To CIP Carriage & Insurance Paid To Carriage and Insurance 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

More information

FIATA Position on the UN Convention on Contracts for the International Carriage of Goods wholly or partly by Sea (the Rotterdam Rules ).

FIATA Position on the UN Convention on Contracts for the International Carriage of Goods wholly or partly by Sea (the Rotterdam Rules ). Doc. MTI/507 Annex II FIATA Position on the UN Convention on Contracts for the International Carriage of Goods wholly or partly by Sea (the Rotterdam Rules ). FIATA Working Group Sea Transport recommends

More information

Transport insurance Guide

Transport insurance Guide Transport insurance Guide Whether you are buying or selling goods from or to the international market, there is always a risk that they may be damaged, lost or delayed in transit. Most people in the supply

More information

Incoterms 2000. SCA Transforest

Incoterms 2000. SCA Transforest Incoterms 2000 SCA Transforest EXW Ex works at the buyers disposal at agreed place and time the time the goods are placed at buyers disposal at agreed place and time Bear all costs until at buyers disposal

More information

Introduction to Incoterms 2010. May 17, 2012

Introduction to Incoterms 2010. May 17, 2012 Introduction to Incoterms 2010 May 17, 2012 Incoterms 2010 Background Purpose General Notes Important changes for 2010 What Incoterms don t do What Incoterms aren t Recommended Usage Incoterm Groupings

More information

The Training Material on Multimodal Transport Law and Operations has been produced under Project Sustainable Human Resource Development in Logistic

The Training Material on Multimodal Transport Law and Operations has been produced under Project Sustainable Human Resource Development in Logistic The Training Material on Multimodal Transport Law and Operations has been produced under Project Sustainable Human Resource Development in Logistic Services for ASEAN Member States with the support from

More information

Optimizing Payment Cycles for Trade Payables and Receivables

Optimizing Payment Cycles for Trade Payables and Receivables Optimizing Payment Cycles for Trade Payables and Receivables Houston Treasury Management Association Space City Cash Conference September 2013 Madeline Sprague, HSBC Bank USA, N.A. Global Trade & Receivables

More information

Bank Guarantees in International Trade

Bank Guarantees in International Trade Bank Guarantees in International Trade Table of contents Preface.................................................... 3 Acknowledgement.......................................... 4 Introduction...............................................

More information

Flashcards for Chapter 6 Introduction to Working Capital Management [ ]

Flashcards for Chapter 6 Introduction to Working Capital Management [ ] Flashcards for Chapter 6 Introduction to Working Capital Management [ ] [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract

More information

International Insurance - Part 3. Auto, Employee Benefits & Cargo Coverage

International Insurance - Part 3. Auto, Employee Benefits & Cargo Coverage International Insurance - Part 3 Auto, Employee Benefits & Cargo Coverage INTERNATIONAL INSURANCE Auto, Employee Benefits & Cargo Insurance Part 3 Robin Federici, CPCU, AAI, ARM, AINS, AIS, CPIW PO BOX

More information

Export Business Plan Guide

Export Business Plan Guide Export Business Plan Guide Table of Contents Introduction... 4 SECTION 01: CURRENT SITUATION ANALYSIS... 5 Company Overview... 5 Availability of Resources... 6 SWOT Analysis... 9 SECTION 02: MARKET ANALYSIS...

More information

SHIPPER S GUIDE. 18/F., 9 Des Voeux Road West,Hong Kong TEL: (852) 2559 7911, FAX: (852) 2581 3336 www.sinotrans-logistics.com

SHIPPER S GUIDE. 18/F., 9 Des Voeux Road West,Hong Kong TEL: (852) 2559 7911, FAX: (852) 2581 3336 www.sinotrans-logistics.com SHIPPER S GUIDE Sinotrans (HK) Logistics Limited have rich experience in shipping agency and freight forwarding and gained a lot of support and advice from our customers in the pass. Nowadays, our services

More information

APL Logistics. Free Carrier (FCA): Improving Supply Chain Performance

APL Logistics. Free Carrier (FCA): Improving Supply Chain Performance APL Logistics Free Carrier (FCA): Improving Supply Chain Performance FCA: Improving Supply Chain Performance 2 FCA: An Introduction Free Carrier (FCA) is an internationally accepted trade term that assigns

More information

"Cost and Freight " means that the seller delivers when the goods rail in the port of shipment.

Cost and Freight  means that the seller delivers when the goods rail in the port of shipment. - CFR - CIF - CIP - CPT - DAF - DDU - DDP - DEQ - DES - EXW - FAS - FCA - FOB CFR COST AND FREIGHT (...named port of destination) "Cost and Freight " means that the seller delivers when the goods rail

More information

CARRIER ROUTING GUIDE

CARRIER ROUTING GUIDE CARRIER ROUTING GUIDE The following pages are for shipments consigned to General Dynamics NASSCO, San Diego, CA. Failure to comply with these instructions, which incurs additional freight costs, could

More information

Introduction to Incoterms 2010. May 9, 2013

Introduction to Incoterms 2010. May 9, 2013 Introduction to Incoterms 2010 May 9, 2013 Presenter Theresa Sekula Manager, BDP Corporate Compliance Team Joined BDP in 2005, various roles including marine procurement, operations, and compliance roles

More information

Invoice Factoring, Debtors Discounting and Trade Finance are bridging facilities using your debtors, stock or movable assets to raise cash.

Invoice Factoring, Debtors Discounting and Trade Finance are bridging facilities using your debtors, stock or movable assets to raise cash. Dear Sir / Madam, Re Bridging Facilities Invoice Factoring, Debtors Discounting and Trade Finance are bridging facilities using your debtors, stock or movable assets to raise cash. A key element is that

More information

TYPE THIS ON YOUR LETTER HEAD. The Managing Director, Karnataka State Agricultural Produce Processing and Export Corporation Limited, Bangalore.

TYPE THIS ON YOUR LETTER HEAD. The Managing Director, Karnataka State Agricultural Produce Processing and Export Corporation Limited, Bangalore. TYPE THIS ON YOUR LETTER HEAD The Managing Director, Karnataka State Agricultural Produce Processing and Export Corporation Limited, Bangalore. Dear Sir, Sub : Registration of our Company / Firm for Export

More information

MARINE INSURANCE GUIDELINES

MARINE INSURANCE GUIDELINES MARINE INSURANCE GUIDELINES What is Marine Insurance? Marine Insurance, is a contract whereby for a consideration stipulated to be paid by one interested in a ship or cargo that is subject to the risks

More information

International Payments and Trade Finance - Upstate New York Trade Conference. June 19 th 2014 Rochester, New York

International Payments and Trade Finance - Upstate New York Trade Conference. June 19 th 2014 Rochester, New York International Payments and Trade Finance - Upstate New York Trade Conference June 19 th 2014 Rochester, New York Payment Methods - Risk Risk Triangle - A Comparison of Payment Options Seller/Exporter High

More information

The Working Capital Cycle in International Trade September 2013. Copyright The Institute of Export and International Trade 2013

The Working Capital Cycle in International Trade September 2013. Copyright The Institute of Export and International Trade 2013 The Working Capital Cycle in International Trade September 2013 Copyright The Institute of Export and International Trade 2013 1 Contents Finance During the Business Lifecycle The Working Capital Cycle

More information