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Import and Export Procedure

This write up is about import and export procedure for business people.

You can also check out our exportation series on our blog, you will like them.

Import and export procedure you must understand;

  1. The seller and the buyer enter into a sales contract, with a method of payment generally by letter of credit (documentary credit).
  2. The Buyer applies to its issuing bank, usually in the Buyer’s country, for a letter of credit in favor of the Seller (beneficiary).
  3. The issuing bank asks another bank, usually a correspondent bank in the seller’s country, to advise and usually confirm the credit.
  4. The advising bank, usually located in the seller’s country, forwards the letter of credit to the seller indicating the terms and conditions of the credit.
  5. If the terms and conditions of the credit are in accordance with the sales contract, the seller prepares the goods and documentation and arranges for the delivery of the goods to the carrier.
  6. The seller presents the documents attesting to the dispatch and the withdrawal (bill of exchange) to the paying, accepting or negotiating bank indicated in the credit (generally the advising bank), or to any bank prepared to deal under the terms of the credit. .
  7. The Bank examines documents and projects to verify compliance with credit conditions. If it is met, the bank will pay, accept or negotiate.
  8. The bank, if not the issuing bank, sends the documents and the withdrawal to the issuing bank.
  9. The Bank examines the documents and the project to verify compliance with the credit conditions. If it is respected, the seller’s treaty is honored.
  10. Delivery of documents to the Purchaser after payment or under other conditions agreed between the bank and the Purchaser.
  11. The buyer gives the bill of lading to the carrier (in the case of sea freight) in exchange for the goods or the delivery note.
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I am Israel Otoijamun, the Founder of Ofarms.ng. I am a blogger, web and graphics designer, brand manager, product manager and farmer. I have interests in crypto currency, technology, business and agriculture.

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Israel Otoijamun

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