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Export/Import Process in 12 steps

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The supply chain through which goods are transported consists of multiple agents. These agents communicate with each other and exchange information and documentation to make the freight transport process possible.

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Export/Import Process in 12 steps

  1. 1. EXPORT/ IMPORT PROCESS IN 12 STEPS THE AGENTS INVOLVED
  2. 2. An importing company and an exporting company contact each other to send/receive merchandise. 1
  3. 3. IMPORTER EXPORTER The exporter sends a pro forma invoice to the importer. There they list the description of the merchandise, the prices, incoterms, data of the company, payment terms, etc. The importer accepts and signs the conditions of the pro forma invoice. Then he sends it signed along with an order form. A purchase-sale contract and a letter of credit (if required) will then be drawn up. 2
  4. 4. IMPORTER'S BANK The importer's bank issues the letter of credit indicating the terms that the exporter must meet to receive payment. 3 IMPORTER EXPORTER
  5. 5. IMPORTER'S BANK IMPORTER EXPORTER The exporter's bank then notifies the exporting company that a letter of credit has been opened in its name. The exporter then reviews it and, if everything is correct, accepts it. 4 EXPORTER'S BANK
  6. 6. IMPORTER'S BANK IMPORTER EXPORTER 4 EXPORTER'S BANK The exporter's bank then notifies the exporting company that a letter of credit has been opened in its name. The exporter then reviews it and, if everything is correct, accepts it.
  7. 7. IMPORTER'S BANK IMPORTER EXPORTER EXPORTER'S BANK Depending on the agreed Incoterm, the exporter or importer will assume the cost of international transport through a freight forwarder (who will manage the transport). 5 FREIGHT FORWARDER
  8. 8. IMPORTER'S BANK IMPORTER EXPORTER EXPORTER'S BANK FREIGHT FORWARDER 6 INSURANCE COMPANY The same agent in charge of hiring the freight forwarder will be the one who contracts an insurance policy for the merchandise.
  9. 9. IMPORTER'S BANK IMPORTER EXPORTER EXPORTER'S BANK FREIGHT FORWARDER INSURANCE COMPANY 7 CUSTOMS AGENT The company also hires the service of a Customs Agent who makes it possible the exit of the goods. The goods enter the customs warehouse (temporary warehouse). The Customs Agent submits (electronically) the Customs Declaration of Goods (based on the documents provided by the exporter) to the Customs Office.
  10. 10. IMPORTER'S BANK IMPORTER EXPORTER EXPORTER'S BANK FREIGHT FORWARDER INSURANCE COMPANY CUSTOMS AGENT CUSTOMS OFFICE The integrated Customs Management system corroborates this data. And, if they conform, number and date the Customs Declaration of Goods. Once accepted, the Customs Agent sends a copy of the Customs Declaration of Goods to the exporter, and the goods can now be shipped. 8
  11. 11. IMPORTER'S BANK IMPORTER EXPORTER EXPORTER'S BANK FREIGHT FORWARDER INSURANCE COMPANY CUSTOMS AGENT CUSTOMS OFFICE 9 The shipping company (or the freight forwarder) issues the Bill of Lading (or a House Bill of Landing) to certify that the goods are on board.
  12. 12. IMPORTER'S BANK IMPORTER EXPORTER EXPORTER'S BANK FREIGHT FORWARDER INSURANCE COMPANY CUSTOMS AGENT CUSTOMS OFFICE Maison des arts CERTIFICATION BODY In addition, depending on the type of goods, They must have certain documents and special certificates (issued by certification bodies). 10
  13. 13. IMPORTER'S BANK IMPORTER EXPORTER EXPORTER'S BANK FREIGHT FORWARDER INSURANCE COMPANY CUSTOMS AGENT CUSTOMS OFFICE Maison des arts CERTIFICATION BODY The operations for embarkment begin. 11
  14. 14. IMPORTER'S BANK IMPORTER EXPORTER EXPORTER'S BANK FREIGHT FORWARDER INSURANCE COMPANY CUSTOMS AGENT CUSTOMS OFFICE Maison des arts CERTIFICATION BODY 12 Transport is carried out and the goods arrive at their destination.
  15. 15. PROCESS RESULTS AGENTS INVOLVED TRANSFERRED DOCUMENTS Up to 20 documents/container Up to 27 agents DELAYS 1-2 days on average INCREASE IN COSTS DUE TO DELAYS OR MISSED DEADLINE 20% of logistical costs
  16. 16. www.chaingotech.com

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