IMPORT AND EXPORT MANAGEMENT
Thomas De Boeck
Academic year: 2023-2024
Teacher: Hans Jacobs
Business management: Supply Chain Management
,Table of content
Chapter 1: Incoterms â 2020 .......................................................................................................................... 4
1.1 Why Incotermsâ .......................................................................................................................................... 4
1.2 History of Incotermsâ .................................................................................................................................. 4
1.3 Introduction to Incotermsâ 2020 ................................................................................................................. 5
1.4 The 4 groups of Incotermsâ ......................................................................................................................... 6
1.4.1 E-group – Multimodal ........................................................................................................................... 6
1.4.2 F-group – Multimodal ........................................................................................................................... 7
1.4.3 C-group – Multimodal ........................................................................................................................... 8
1.4.4 D-group – Multimodal ........................................................................................................................ 10
1.4.5 F-group – Unimodal (ship) .................................................................................................................. 13
1.4.6 C-group – Unimodal (ship) .................................................................................................................. 15
1.5 Summary of all Incoterms ........................................................................................................................... 17
1.5.1 Multimodal Incoterms ........................................................................................................................ 17
1.5.2 Unimodal Incoterms ........................................................................................................................... 17
Chapter 2: Instruments of payment .............................................................................................................. 18
2.1 Introduction ................................................................................................................................................ 18
2.2 Cheque ........................................................................................................................................................ 18
2.2.1 Definition ............................................................................................................................................ 18
2.2.2 The parties involved............................................................................................................................ 19
2.2.3 Mandatory elements on the cheque .................................................................................................. 19
2.2.4 Types of cheques ................................................................................................................................ 19
2.3 Bill of Exchange (B/E).................................................................................................................................. 20
2.3.1 Definition ............................................................................................................................................ 20
2.3.2 The parties involved............................................................................................................................ 20
2.3.3 Types of Bills of Exchange ................................................................................................................... 20
2.3.4 Negotiability ....................................................................................................................................... 21
2.4 The Promissory Note................................................................................................................................... 21
2.5 When to use ................................................................................................................................................ 21
2.5 Summary..................................................................................................................................................... 22
Chapter 3: Payment of short-term transactions ............................................................................................ 23
3.1 Definition of credit risk ............................................................................................................................... 23
3.2 Open account.............................................................................................................................................. 23
3.3 Documentary collection .............................................................................................................................. 24
3.3.1 Definition ............................................................................................................................................ 24
3.3.2 Parties involved .................................................................................................................................. 24
3.4 Documentary credit – Letter of credit (L/C) ................................................................................................ 25
3.4.1 Definition ............................................................................................................................................ 25
3.4.2 Parties involved .................................................................................................................................. 25
3.4.3 Revocable and irrevocable credit ....................................................................................................... 26
3.4.4 Procedure Letter of Credit .................................................................................................................. 26
3.4.5 Letter of credit: variations .................................................................................................................. 27
3.4.6 Letter of credit in practice .................................................................................................................. 28
3.5 Summary..................................................................................................................................................... 29
2
,Chapter 4: Documents in international trade ................................................................................................ 30
4.1 Commercial documents .............................................................................................................................. 30
4.1.1 Definition ............................................................................................................................................ 30
4.1.2 Types of commercial documents ........................................................................................................ 30
4.2 Transport documents (A) ............................................................................................................................ 31
4.2.1 Bill of Lading (B/L) ............................................................................................................................... 31
4.2.2 Sea Waybill ......................................................................................................................................... 33
4.2.3 Rail Waybill (CIM) ............................................................................................................................... 33
4.2.4 Air Waybill........................................................................................................................................... 33
4.2.5 Road Waybill (CMR) ............................................................................................................................ 34
4.2.6 Mate’s receipt ..................................................................................................................................... 34
4.2.7 Delivery Order (D/O) ........................................................................................................................... 34
4.2.8 Forwarder’s Certificate of Receipt (FCR)............................................................................................. 34
4.2.9 Summary of Transport documents (A) ..................................................................................................... 35
4.3 Transport documents (B) ............................................................................................................................ 36
4.3.1 Health certificate ................................................................................................................................ 36
4.3.2 Phytosanitary certificate ..................................................................................................................... 36
4.3.3 Fumigation certificate ......................................................................................................................... 36
4.3.4 Inspection certificate .......................................................................................................................... 36
4.3.5 Certificate of analysis .......................................................................................................................... 36
4.4 (Extra) Customs documents and origin ....................................................................................................... 36
Chapter 5: The financing of international transactions .................................................................................. 37
5.1 International finance .................................................................................................................................. 37
5.2 Commitments and security ......................................................................................................................... 37
5.3 Bill of Exchange (B/E).................................................................................................................................. 38
5.4 Summary..................................................................................................................................................... 39
3
, Chapter 1: Incoterms â 2020
1.1 Why Incotermsâ
INternational COmmercial TERMS
ð International rules for interpretation of trade terms
ð Published by International Chamber of Commerce (ICC)
ð Define allocation of: COSTS, RISKS and TASKS
ð Provide clarity and uniformity
Commercial relevance: costs-aspect (contract price, transport, documents)
Operational relevance: tasks-aspect (who does what, when, where? At who’s expense and risk?)
COSTS and TASKS
- Transport
- Loading, unloading and handling
- Checking, packaging, marking, weighing and measuring
- Insurance
- Customs formalities (export/import/transit)
RISKS
- Packing/conditioning
- Manipulation, loading, discharge, stuffing, transshipment
- Jettison and washing overboard
- Accidents and catastrophes
- Fire, combustion
- Malicious damage, vandalism, piracy
- Theft, non-arrival, disappearance
1.2 History of Incotermsâ
1936: first set of incotermsâ - 6 trade terms
ð Published by International Chamber of Commerce (ICC)
ð Incoterms are being updated regularly to keep abreast of the most recent developments in
transport technology and documentation procedures.
Example: Incoterms have been made suitable for use in situations where Electronic Data Interchange (EDI)
is applied. This is a computer application defined as the automatic sending of trade documents.
Most recent version: Incotermsâ 2020
- B/L on board related to FCA
- CIP/CIP: different insurance cover
- DAT à DPU
4
Thomas De Boeck
Academic year: 2023-2024
Teacher: Hans Jacobs
Business management: Supply Chain Management
,Table of content
Chapter 1: Incoterms â 2020 .......................................................................................................................... 4
1.1 Why Incotermsâ .......................................................................................................................................... 4
1.2 History of Incotermsâ .................................................................................................................................. 4
1.3 Introduction to Incotermsâ 2020 ................................................................................................................. 5
1.4 The 4 groups of Incotermsâ ......................................................................................................................... 6
1.4.1 E-group – Multimodal ........................................................................................................................... 6
1.4.2 F-group – Multimodal ........................................................................................................................... 7
1.4.3 C-group – Multimodal ........................................................................................................................... 8
1.4.4 D-group – Multimodal ........................................................................................................................ 10
1.4.5 F-group – Unimodal (ship) .................................................................................................................. 13
1.4.6 C-group – Unimodal (ship) .................................................................................................................. 15
1.5 Summary of all Incoterms ........................................................................................................................... 17
1.5.1 Multimodal Incoterms ........................................................................................................................ 17
1.5.2 Unimodal Incoterms ........................................................................................................................... 17
Chapter 2: Instruments of payment .............................................................................................................. 18
2.1 Introduction ................................................................................................................................................ 18
2.2 Cheque ........................................................................................................................................................ 18
2.2.1 Definition ............................................................................................................................................ 18
2.2.2 The parties involved............................................................................................................................ 19
2.2.3 Mandatory elements on the cheque .................................................................................................. 19
2.2.4 Types of cheques ................................................................................................................................ 19
2.3 Bill of Exchange (B/E).................................................................................................................................. 20
2.3.1 Definition ............................................................................................................................................ 20
2.3.2 The parties involved............................................................................................................................ 20
2.3.3 Types of Bills of Exchange ................................................................................................................... 20
2.3.4 Negotiability ....................................................................................................................................... 21
2.4 The Promissory Note................................................................................................................................... 21
2.5 When to use ................................................................................................................................................ 21
2.5 Summary..................................................................................................................................................... 22
Chapter 3: Payment of short-term transactions ............................................................................................ 23
3.1 Definition of credit risk ............................................................................................................................... 23
3.2 Open account.............................................................................................................................................. 23
3.3 Documentary collection .............................................................................................................................. 24
3.3.1 Definition ............................................................................................................................................ 24
3.3.2 Parties involved .................................................................................................................................. 24
3.4 Documentary credit – Letter of credit (L/C) ................................................................................................ 25
3.4.1 Definition ............................................................................................................................................ 25
3.4.2 Parties involved .................................................................................................................................. 25
3.4.3 Revocable and irrevocable credit ....................................................................................................... 26
3.4.4 Procedure Letter of Credit .................................................................................................................. 26
3.4.5 Letter of credit: variations .................................................................................................................. 27
3.4.6 Letter of credit in practice .................................................................................................................. 28
3.5 Summary..................................................................................................................................................... 29
2
,Chapter 4: Documents in international trade ................................................................................................ 30
4.1 Commercial documents .............................................................................................................................. 30
4.1.1 Definition ............................................................................................................................................ 30
4.1.2 Types of commercial documents ........................................................................................................ 30
4.2 Transport documents (A) ............................................................................................................................ 31
4.2.1 Bill of Lading (B/L) ............................................................................................................................... 31
4.2.2 Sea Waybill ......................................................................................................................................... 33
4.2.3 Rail Waybill (CIM) ............................................................................................................................... 33
4.2.4 Air Waybill........................................................................................................................................... 33
4.2.5 Road Waybill (CMR) ............................................................................................................................ 34
4.2.6 Mate’s receipt ..................................................................................................................................... 34
4.2.7 Delivery Order (D/O) ........................................................................................................................... 34
4.2.8 Forwarder’s Certificate of Receipt (FCR)............................................................................................. 34
4.2.9 Summary of Transport documents (A) ..................................................................................................... 35
4.3 Transport documents (B) ............................................................................................................................ 36
4.3.1 Health certificate ................................................................................................................................ 36
4.3.2 Phytosanitary certificate ..................................................................................................................... 36
4.3.3 Fumigation certificate ......................................................................................................................... 36
4.3.4 Inspection certificate .......................................................................................................................... 36
4.3.5 Certificate of analysis .......................................................................................................................... 36
4.4 (Extra) Customs documents and origin ....................................................................................................... 36
Chapter 5: The financing of international transactions .................................................................................. 37
5.1 International finance .................................................................................................................................. 37
5.2 Commitments and security ......................................................................................................................... 37
5.3 Bill of Exchange (B/E).................................................................................................................................. 38
5.4 Summary..................................................................................................................................................... 39
3
, Chapter 1: Incoterms â 2020
1.1 Why Incotermsâ
INternational COmmercial TERMS
ð International rules for interpretation of trade terms
ð Published by International Chamber of Commerce (ICC)
ð Define allocation of: COSTS, RISKS and TASKS
ð Provide clarity and uniformity
Commercial relevance: costs-aspect (contract price, transport, documents)
Operational relevance: tasks-aspect (who does what, when, where? At who’s expense and risk?)
COSTS and TASKS
- Transport
- Loading, unloading and handling
- Checking, packaging, marking, weighing and measuring
- Insurance
- Customs formalities (export/import/transit)
RISKS
- Packing/conditioning
- Manipulation, loading, discharge, stuffing, transshipment
- Jettison and washing overboard
- Accidents and catastrophes
- Fire, combustion
- Malicious damage, vandalism, piracy
- Theft, non-arrival, disappearance
1.2 History of Incotermsâ
1936: first set of incotermsâ - 6 trade terms
ð Published by International Chamber of Commerce (ICC)
ð Incoterms are being updated regularly to keep abreast of the most recent developments in
transport technology and documentation procedures.
Example: Incoterms have been made suitable for use in situations where Electronic Data Interchange (EDI)
is applied. This is a computer application defined as the automatic sending of trade documents.
Most recent version: Incotermsâ 2020
- B/L on board related to FCA
- CIP/CIP: different insurance cover
- DAT à DPU
4
