Foreiｇn Trade Operation in English 貿易取引実務 （英語版）
FOREIGN TRADE AGENCY SERVICES TRADE PROCEDURES & DOCUMENTATIONS
This page is to explain the trade inquiry/procedures adopted and practiced in step by step fashion for those traders, importers and distributors who have seen the product sell offers announced and interested to enter into negotiations for the purchase or the marketing rights of these products for their own markets. The procedures mentioned here should not be mixed with the general procedures of export/import transactions. Those visitors who have no previous knowledge of foreign trade but interested to export/import products to/from international markets for their own businesses and are looking for information to get some general idea about the workings, procedures of export/import transactions.
Most of the trades procedures followed and practiced here are mostly based on the procedures of the United Nations International Trade Procedures for the Sale of Goods. These trade procedures are as follow.
1*- Product inquiry and/or quotation request by fax or e-mail stating the quality/quantity details of the product in question To markets with full contact details e.g. name, tel /fax numbers (please note that inquires without full Contact details can not be replied).
2 - As per the request to reply with an offer (if available) for evaluation and negotiation.
3 - The buyer accepts the offer terms, seller then issues a contract with full banking. If the buyer doesn't accept the price and wants to negotiate further, the buyer then is to issue a signed and a stamped LOI (l LETTER OF INTENT on the Buyers letterhead and/or (if required by the Seller) BANK COMMITMENT LETTER (BCL) for Proof of funds on Buyer's Bank’s letterhead which must be faxed for further negotiations.
4 - Seller will then issue a full corporate offer (FCO).
5 - Buyer returns signed offer to seller.
6 - In the case of large and/or bulk cargo shipments whichever party is responsible for the carriage as per the delivery term of the offer makes a charter party agreement for the carriage of cargo with a transport company and informs the opposite party with the terms of this agreement e.g. the vessel nomination, loading/discharge rates, demurrage/dispatch rates etc as to be the part of sale contract.
7 - Seller then issues a contract with full banking with a possible draft of the L/C he wants to be opened in his favor
8 - Buyer returns signed contract to seller
9 * *- Buyer's bank opens L/C or Non-Operative / Pre-advise Letter of Credit in case of large shipments.
10 - Seller's bank checks the L/C and if everything is okay as per the terms of sale contract informs the seller accordingly Or in case of bulk large shipments Seller's bank activates Letter of Credit by posting Performance Bond in favor of buyer (if and when required)
11. Shipments commence as per contract.
12. Seller usually pays for Inspection at loading port.
(These procedures may vary depending on the product, quantities and/or the Suppliers.)
*Commissions of any parties involved in the selling chain should be added to our quoted price. If price and terms Are accepted by the Buyer, will sign an NCND NON-CIRCUMVENTION, Non-DISCLOSURE and WORKING AGREEMENT to protect the business and your commissions as they will be included in price stated in the sale contract.
* *After opening the Letter of Credit by the Buyers' Bank all Intermediary Commissions will be protected by AGENT'S FEE AGREEMENT