Business English(Lecture 2).pdf

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Procedures of Export


basic concepts of export procedures



related with export



Receipt of order and contract Offer/ Counteroffer

Credit inquiry

(inquiry by a prospect) Business proposal Search for a buyer


- Center of export support, Korea Small and Medium Business Administration


- Korea Chamber of Commerce and Industry - Korea International Trade Association

- Korea Agro-Fisheries & Food Trade Corporation

- Embassy in the country where you want to launch your products


Shipment of goods Customs clearance

Transportation & Insurance Arrangement of goods

Receipt of L/C Sales contract


Importance of Letter of Credit (L/C)

Technical terms related with L/C


Importance of L/C

A bank as a third party


money to an exporter

goods to an importer.

▶ If the two parties trust each other


payment can be made by way of telegraphic transfer(T/T).


negotiate: 매입 買入 (cf. 협상 協相)

issuing bank: 발행은행 發行銀行

(also called opening bank or establishing bank) 개설은행 開設銀行

advising bank: 통지은행 通知銀行

(also called negotiating bank) 매입은행 買入銀行 bill of exchange: 환어음 換於音 beneficiary: 수익자 受益人 = exporter applicant: 신청인申請人 = importer


(1) The applicant requests the issuing bank to establish L/C in favor of

the beneficiary.

(2) The issuing bank sends the L/C


(3) The advising bank notifies

the exporter of the arrival of L/C. (4) The exporter confirms the L/C

and picks it up.

(5) The exporter draws B/E and attaches to the bill documents required in L/C, such as invoice, packing list, B/L,

insurance policy and certificate of origin after the shipment has been completed.


(6) The exporter requests his bank to negotiate the documentary bill or draft(貨換於音)

documentary bill:

bill of exchange with various documents attached to it


terms transportation insurance responsibility responsibility

FCA importer importer CIP exporter exporter CPT exporter importer



Free Carrier: 운송인 인도조건

運送人 引渡條件


Carriage, Insurance Paid to: 운송료 보험 포함 인도조건

運送費 保險料 包含 引渡條件


Carriage Paid To:

운송료 포함 인도조건 運送費 包含 引渡條件


Issuing Bill of Lading (B/L) Issuing Mate’s Receipt (M/R)

Supervising load

Shipping Order ( S/O) Shipping Request (S/R)



Booking Note

A shipping company issues

a booking note after space has been


(2) Shipping Request (S/R)

The exporter or the forwarder submits S/R to the shipping company.


(3) Shipping Order (S/O)

The carrier sends S/O to the captain

ordering him to ship the goods to the destination.


■ The shipment is made after the chief mate signs the S/O.

In the process of shipment,

the exporter should supervise

the loading of the goods. The exporter sees if the goods have been loaded in accordance with the S/O in the

presence of Tally Mate, and then

draws up a Tally Sheet and reports it to the chief mate.


(4) Mate’s Receipt (M/R)

The chief mate issues Mate's Receipt

(M/R) to show that the goods have

been received. In case that the goods are in the form of a container,

CY(container yard) or CFS(container freight station) operators issue

Dock’s Receipt (D/R) to

the exporter after they receive the goods at the dock.


(5) Bill of Lading (B/L)

After the shipment is completed,

the exporter presents the M/R or D/R to the carrier

The carrier issues B/L to the exporter.

B/L is a document proving that the

goods have been received and shipped (=loaded into the ship).


Shipping Request(S/R): 선복신청船腹申請 Booking Note: 예약확인서 豫約確認書 Shipping Order(S/O): 선적지시서 船積指示書 Chief Mate: 일등항해사 一等航海士 Tally Mate: 검수인 檢數人 Tally Sheet: 검수표檢數表 Mate's Receipt(M/R): 본선수취증 本船受取證 Dock Receipt(D/R): 부두수취증 埠頭受取證 Bill of Lading(B/L): 선하증권 船荷證券



Bank’s checking Bank’s negotiation


(1) Drawing Bill of Exchange (B/E)

The exporter draws a bill of

exchange and requests the bank to negotiate it presenting all the

documents stipulated in the L/C, for example, bill of lading, invoice or packing list.


(2) Bank’s Checking

The negotiating bank checks if all the documents are presented as stipulated

in the L/C and if there are any errors in

the documents drawn up.


(3) Bank’s Payment

If they find that everything is OK, they pay the exporter.




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