Transaction Management

Unit 17 - Shipping/Logistics

 

Objective of this Unit

 

Once an agreement to sell a product has been reached between the exporter and the buyer…direct or indirect…the product must then be shipped from the production facility to the receiving point in the importing country. Choosing a freight forwarder is very important to assure that what was contracted to be exported arrives at the other end exactly as specified in the sale documents.  This Unit discusses the role of the freight forwarder and ways of locating one. Also, some pre-shipment logistical issues are discussed.

 

Unit 18 - Shipping/Documentation

 

Objective of this Unit

The shipment of an export item requires a number of accompanying documents. Some must be presented to customs services in the importing country and others to the bank that issued a letter of credit (see below). These documents are critical. Their absence…  or insufficiency of information on a document…can cause the item to be held at port, denied entry, or be seized and destroyed by the authorities of the importing country for sanitary reasons. This Unit discussed each document in detail and presents examples for review.  Exporters need to pay close attention to this documentation to ensure that the shipment reaches the intended recipient…and that they, the exporters, get paid.

Unit 19 - Payments, Trade

 

Objective of this Unit

 

Payment for an export may take many forms. They are discussed in this Unit. Emphasis is placed on Letters of Credit which tends to be the preferred form of payment. The exporter should become very familiar with all forms of payment to make sure that money is eventually exchanged for the products shipped.

Unit 20 - Payments, Projects

 

Objective of this Unit

Some exports are related to the sale of products and services destined to supply Major Projects – usually infrastructure such as dams, roads, and power generating facilities. Although these exports are very specialized and few in number they tend to be quite large in money value. Learning about these Projects and how to be paid for providing products and services tends to be quite complicated and extend over a long period of time. This Unit describes that activity and how to manage payments.

Unit 21 - Payments, Direct Marketing

           

Objective of this Unit

Though still uncommon, some exporters prefer to sell directly into a foreign market and get paid directly as well. The internet combined with courier express services and payment via credit card should make this kind of marketing more popular for lightweight, high-value items in the foreseeable future. Exporters, especially those of handicrafts, should study this means of shipping and payment. They control both delivery and payment collection aspects an export transaction directly….thus gaining the most profit from that transaction.