Important Terminologies used for Export and Import Business
Just like every other businesses, there are important terminologies used for Export and import business. If you don’t know these terminologies, you will be vulnerable to loss or scammers because it will be obvious you are new to this business terrain.
This is in continuation of our import and export masterclasses. Please ensure you visit ofarms.ng blog to read other articles about export and import business. Remember, we are the largest Agriculture and food marketplace in Africa, so sell your goods through us.
Terminologies used for Export and Import Business
1.) FREIGHT SHIPPING, FORWARDER
This is a specialized company which performs the following functions on behalf of the exporter, advising on the best route to take and the respective shipping costs.
Organize with the exporter the packaging and subsequent marketing of the goods Consolidate the shipments of the various exporters (Groupage)
Customs insurance overseas handling Marine insurance rental for shipment Preparation of export documents Transport organization that will transport the container from and to the stuffing warehouse to the shipping port.
In other words, the broker, who is most often a customs broker, is the one who actually informs the exporter about the cost of freight and insurance.
2.) SHIPPING DOCUMENTS
Final commercial invoice:
It is the invoice of the exporting companies, addressed to the importer, with a description of the shipped goods, the unit price of each shipped goods and the total amount payable.
The exporter may also be required, when providing an export quotation to the foreign buyer, to provide a PROFORMA INVOICE to the buyer.
3.) PROFORMA INVOICE: This document shows the foreign buyer what the commercial invoice would look like if an order were placed. Foreign exchange authorities sometimes require this before an import permit is issued.
4.) Certificate of Origin: It is a document that indicates the country in which the goods were produced. It is necessary whenever preferential rights are claimed.
5.) Bill of Lading: The shipping company that transports the goods to their destination abroad, listing the items by item and the goods shipped. It serves three basic purposes: Confirm receipt by the carrier of the
goods To indicate the carrier’s contractual obligation to transport the goods to their destination in exchange for payment To record the transfer of ownership (or ownership) from the seller to the buyer when payment for the goods occurs
6.) Quality and Quantity Certificate: This is a document issued by a reputable inspection body such as SGS, Alexis Stewart, Alfred Knight, Cotectna, Bureau Veritas, etc. certifying the quantity and quality of the shipment carried out by the exporter. The main thing is to ensure that a third party confirms what the exporter said in its shipping documents.
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