Procedures of Export
-
basic concepts of export procedures
-
terms
related with export
procedures
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
- KOTRA
- 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
guarantees
money to an exporter
goods to an importer.
▶ If the two parties trust each other
enough,
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
FCA
Free Carrier: 운송인 인도조건
運送人 引渡條件
CIP
Carriage, Insurance Paid to: 운송료 보험 포함 인도조건
運送費 保險料 包含 引渡條件
CPT
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)
(1)
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
Payment
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.
