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AN EXPORT TRANSACTION

economy

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TERMENI importanti pentru acest document

AN EXPORT TRANSACTION

When an exporter receives an order from an old customer, the exporter first acknowledges it. If the price and terms are satisfactory and the goods do exist in stock, they are packed and made ready for dispatch. When the indent may require goods from several manufacturers it has to be split up accordingly and separate orders are placed with the various firms which are given instructions as to time and place of delivery, make-up, packing, marks, etc.




The goods are packed in lined cases (containers) which are sent to a Shipping Firm. The shipping agents charge a commission and relieve the exporter of a lot of complicated formalities. The goods are sent to the port of embarkation either by truck or rail way and the superintendent at the docks is informed of the dispatch of the goods by a Shipping Note. Then, the shipping company makes out the Freight Note which is sent to the exporting firm expected to pay the amount of freight to the company.

A Customs Specification is sent to the Customs Office of the point of shipment within six days of the clearance of the ship. This specification gives all the particulars of the goods in compliance with the Official Export List.

The staff in the exporting firm now has all the data required for making out the Invoice. This is usually made out in triplicate and gives all the necessary details of the goods, the marks, and numbers of the containers and the total value of the goods. If the Invoice is marked Loco it means that he importer has to pay all charges from the exporter's warehouse to his own, i.e. the charge for the containers, the carriage to the port, the freight and other shipping charges, the insurance premium and the cost of the Bill of Lading. The quotation F.O.B. (free on board) means that the seller bears all the expenses until the goods are loaded on board the ship; C.l.F. (cost, insurance, freight) means that all charges from the warehouse to the port of destination are borne by the exporter, while under C&F the insurance premium has to be paid by the importer. FRANCO means a free of charge delivery to the customer's premises. On the back of the Invoice is printed the Certificate of Origin certifying the origin of goods.

Text Comprehension

1. Vocabulary

Indent =comanda

To acknowledge = a confirma

Dispatch = expediere

To be split up = a fi impartita

Delivery = livrare



Make-up = structura

Shipping firm = firma de transport

To charge a commission = a incasa un comision

Amount =suma

In compliance with = in conformitate cu

To bear the expenses = a suporta cheltuielile

Invoice = factura comerciala

2. Answer the following questions?

- What are the duties seller after he acknowledges receipt of an order?

- What is the function of the shipping company in an export transaction ?

- Who bears the shipping and insurance expenses in an export transaction ?

- What is the difference between F.O.B. , C.I.F. and Franco delivery terms ?



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