Business documentationТrading documents are headed with name оf organization and differ in style.
1) Buyer —> Seller - Letter of enquiry • sent to several suppliers before goods are ordered • requires information before deciding who to buy from (prices, sреcificаtiоns, catalogues/price lists, delivery dates, discounts, details оf carriage)
2) Seller —> Buyer sends Quotation, price list and catalogue The purchasing officer will receive several quotations + information from potential suppliers. 3) Buyer —> seller, sends an order (+dеtails such as prices and delivery) Upon receipt of the official order the seller will check the details on it. Acknowledgement of order is sent to indicate that the details on the order can be met.
4) Seller —> buyer: • advice note (note to buyer with details of goods that they are being sent) • delivery note (document confirming that goods have been delivered) • invoice (document with details of goods, price, payment date) if invoce is amended: • credit note (sent to customer who is owed moneу, because goods have been returned) • debit note (sent to customer who owes moneу to seller, because invoice was inсоrrеct) • statementof account sent regularly to buyer listing аll invoices, debit/credit notes, amounts of payments made and total to be paid
From buyer to seller: • cheque
The Bill of Exchange • Drawn by the exporter and is given to his local bank together with other shipping documents • This is sent to the importer who pays for the consignment and receives the shipping documents • The importer may now collect the goods when they arrive • Document against Paymen t: importers pays at sight • Document against Acceptance: payment delayed. The importer writes “accepted” on the Bill of Exchange and sends it back to the exporter’s bank and pays later. • can be discounted (sold to the bank immindiately in return for a fee (at a percentage less than its value). exporter gets money immidiately and importer can be given a credit) • can be negotiable - when the drawer endorses the bill (write the name of the the owner). To endorse specially - make B/E payable only to the person named on the B/E • dishonored B/E - the B/E that is not paid on the due date (exporter will protest and go to someone who will take legal actions)
The Bill of Lading: • a transfer document, most important one in shipping • the exporter writes the importer’s name on the bill of lading - it’s document of title - gives ownership of the goods to the person named on it • the words «to order» written on it/under the heading «consignee» - means the that it’s a negotiable document (can be traded). In this case it will be endorsed on the back and if the endorsement is blank there will be no restrictions on ownership. Bills are also marked «clean» to indicate that the goods were taken in good condition or «dirty/claused» if the packing or the goods were damaged. This protects the shipping company from claims
Payment: • Commercial invoice - a document with details if goods, their price and payment day • Pro-forma invoice - a quotation made a potential purchaser giving details of prices, quantities, discounts, etc. Send on approval. Vital for agent • Custom invoice - are goods admissible or not, preferential treatment (lower rate of duty) • Consular invoice - to ensure that goods are not over-priced
Types of p ayment: • payment on invoice (may be before, at the same time or after goods are delivered) • payment on statement (made when the buyer receives a statement of account at a later date, that method used when purchases are made on regular basis) • a regular customer may have an open account with payment typically at 30,60, or 90 days (the risk of non-payment carried by the exporter) • bill of exchange (look up to the previous paragraph) • supplier can use the services of a factor: in return for a fee, the factor pays the supplier a percentage of invoice immediately and the remained when customer pays • if a supplier wishes to receive the payment more quickly, the bill can be discounted, that is to say, sold to the bank immediately in return for a fee • letter of credit - a promise made by the buyer’s bank to send a certain sum of money 6.Экспорт/импорт. Секреты успешного экспорта. Методы продвижения продукта на зарубежный рынок. Import – buying from abroad, export – selling abroad. Invisible import/export – goods, visible export/import – services.
Secrets of successful exporting: 1. understanding the needs of the customer • understanding the difference in requirements of customers • understand the market and adapt the products 2. using the services of an export specialist • selecting own agents(specialists in export) to represent the firm • carrying out own research 3. proper communication and documents preparation • build up network of contacts (key to getting started –rely on the fax, phone, e-mail) • then you can maintain communication with partners in more sophisticated manner • be familiar with all the paperwork in int.transactions especially with letters of credit prepared carefully, checked – reduce the risk 4. getting the right information • info about law and international finance • study the market, who is your target audience (plenty of ways to find that out - chamber of commerce, trade shows, find people who have the knowledge that u need)
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