Mechanism of trading internationally
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Transcript of Mechanism of trading internationally
Mechanism of trading internationally
The Trade Transaction
GOODS
A BINFORMATION
PAYMENT
Eleven step process Step 1
Prepare a Business plan
Name of the organization
Registration under
companies act
Open a bank account
Step 2
Product selection for
export Market research Product evaluation
Step 3
Registration with Director General of Foreign Trade to
get IEC number
Step 4
Registration with the relevant
export promotion
Registration with Sales Tax Office
Registration with Export Credit Guarantee
Corporation
Step 5
Market Identification Need Analysis
Step 6
Channel SelectionAgents/Distributors/
Wholesalers/ EndUser s/ Sales Reps
Step 7
Identifying the Potential Buyers / Customers
Trade Fairs/Internet/ Personal Visits/Contacts/Agents
Going for procuring orders
Step 8
Agreeing upon pricing, document ,freight charges, currency ,delivery etc.
Signing of contract
Step 9
Determining the payment terms
Advance Payment/ Letter of Credit (LC) / Open Account
Step 10
Importer sends
purchase order
Production Packaging, warehousing
Certificate of quality control
Step 11
Prepare marine, air, and docs
Insurance certificate,
shipping bill Receipt, Bills of
lading
Transportation Maritime / Air /
Road / Rail
Submission of docs to banks
Bank sends docs to importer’s
bank .payment is done
International trade transaction procedures
CommercialProcedures
• Establish Contract
• Order Goods• Advise On
Delivery• Request Payment
TransportProcedures
• Establish Transport Contract
• Collect,Transport and Deliver Goods
• Provide Goods Receipts Status reports
RegulatoryProcudures
• Obtain Import/Export Licences etc
• Provide Customs Declarations
• Provide Cargo Declaration
• Apply Trade Security Procedures
• Clear Goods for Export/Import
Financial Procedures
• Provide Credit Rating
• Provide Insurance
• Provide Credit• Execute Payment• Issue Statements
Prepare For
ExportExport
TransportImport
SHIPBUY PAY
Prepare For
Import
Commercial procedures
Establish contract
Order goods
Advice on delivery
Request for payment
Transportation procedures
Establish transport contract
Collect, transport and deliver goods
Provide goods receipts and status reports
Regulatory procedures
Obtain import export licenses
Provide customer deceleration
Provide cargo deceleration
Apply trade security procedures
Finance procedures
Provide credit rating
Provide insurance
Provide credit
Execute payment
Issue statement
Questions….
Thank you!!!