If you prefer to use PayPal, navigate to http://www.xdoc.com.au/forum/Products.aspx Contents 1.The International Trade Cycle...........................................................................5 2.International Trade an Overview.................................................................... 6 2.1International Trade Regulations......................................................................6 2.2Trade Blocks.................................................................................................6 2.3Australia's Free Trade Agreements...................................................................8 2.4Developed vs. Developing Countries.................................................................9 2.5Trade Barriers .........9 3.Managing Risk ....... 10 3.1Risks Facing Importers & Exporters..................................................................10 3.2Risk Mitigation Strategies...............................................................................11 3.3Trade Credit Insurance...................................................................................12 3.4Without recourse export finance for risk management.........................................12 3.5Foreign Exchange contracts.............................................................................12 4.import / Export Capability.................................................................................13 5.Market Potential..............................................................................................13 6.Import Export Plan...........................................................................................14 7.Obligations of importer in australia....................................................................15 7.1Trade Practices Act.........................................................................................15 7.2State Fair Trading laws...................................................................................15 7.3Standards.....................................................................................................16 7.4Testing........................................................................................................16 7.5Labelling......................................................................................................17 8.Bar Codes......................................................................................................17 9.setting yourself up overseas.............................................................................18 9.1Seek out your trading partners history or credentials......................................... 18 9.2Strengthening your position in the market.........................................................18 9.3Trading terms and guarantees.........................................................................18 9.4Distribution Options.......................................................................................19 9.5Written Agreements.......................................................................................20 10.Moving goods by sea......................................................................................21 10.1Types of ship:.............................................................................................21 10.2Containers Shipping.....................................................................................22 10.3Break-Bulk..................................................................................................23 10.4Bulk...........................................................................................................23 11.Moving goods by air.......................................................................................23 11.1Packaging for air shipment............................................................................23 11.2Air cargo containers.....................................................................................24 12.International Freight Forwarding......................................................................26 13.Safety standards overseas..............................................................................27 13.1SAI Global..................................................................................................27 13.2.Trade Associations.....................................................................................27 13.3.Overseas buyers........................................................................................27 14.INCOTERMSฎ...................................................................................................28 14.1INCOTERMS 2000...........................................................................................28 14.2Summary of main Incoterms changes.............................................................29 14.3INCOTERMSฎ 2010...........................................................................................29 14.4EXWORKS (named place of delivery)..............................................................30 14.5FCA -FREE CARRIER- (named place of delivery)................................................31 14.6CPT -CARRIAGE PAID TO- (named place of destination)....................................32 14.7CIP -CARRIAGE AND INSURANCE PAID TO- (named placed of destination)......... 33 14.8DAT -DELIVERED AT TERMINAL- (named terminal at port or place of destination) 34 14.9DAP- DELIVERED AT PLACE (named place of destination)...............................35 14.10DDP- DELIVERED DUTY PAID- (named place of destination).............................36 14.11FAS -FREE ALONG SHIP- (named port of shipment).........................................37 14.12FOB -FREE ON BOARD- (named port of shipment)...........................................38 14.13CFR -COST AND FREIGHT- (named port of destination)....................................39 14.14CIF -COST INSURANCE AND FREIGHT -(named port of Destination)...................40 15.Pricing/costing..............................................................................................41 16.Import Duty- Customs duty............................................................................42 16.1Import duty calculation................................................................................42 17GST.............................................................................................................43 17.1Deferral of Payment Scheme.........................................................................43 17.2GST and Exports.........................................................................................44 18.export declaration number.............................................................................44 19.PRe-receival advice (pra)...............................................................................44 20.export declarations.......................................................................................44 21.BASIC METHODS OF PAYMENT........................................................................45 21.1Prepayment...............................................................................................45 21.2Open Account............................................................................................45 21.3Documentary Collections.............................................................................45 21.4Irrevocable Documentary Credits..................................................................46 22.purchase / sale CONTRACT............................................................................48 22.1Sample contract.........................................................................................48 22.2Instructions for a purchase or sale contract....................................................49 23.LETTER OF CREDIT.......................................................................................50 23.1Completed Letter of Credit Application..........................................................50 23.2Sample letter of credit................................................................................53 23.3Checking a letter of Credit...........................................................................56 24.FORWARDING INSTRUCTIONS(F.I.) or shipping letter of instruction.....................57 24.1Sample Forwarding Instruction......................................................................57 24.2Completed Forwarding Instructions................................................................58 24.3BILL OF LADING..........................................................................................59 24.4Sample Bill of Lading...................................................................................60 24.5Bill of Lading invoice....................................................................................61 24.6What To Check When Receiving A Bill of Lading...............................................62 24.7Sample Air Waybill.......................................................................................63 24.8Sample AWB invoice.....................................................................................64 25.Sample commercial invoice..............................................................................65 25.1Completed Commercial Invoice.......................................................................66 25.2Instructions for Invoice..................................................................................67 26.MARINE cargo INSURANCE................................................................................68 26.1Cargo Clauses...............................................................................................68 26.2Type of marine insurance contracts...................................................................69 26.3Sample Insurance Certificate............................................................................70 26.4Completed Insurance Certificate...................................................................... 71 26.5Instructions for Insurance................................................................................72 27.Sample Certificate of Origin...............................................................................73 27.1Completed Certificate of Origin........................................................................ 74 27.2Instructions For Certificate of Origin................................................................. 75 27.3Australian Customs Services (ACS)....................................................................75 27.4Export permits................................................................................................75 27.5Australian Quarantine and Inspection Service (AQIS)............................................76 27.6AMSA and IATA...............................................................................................76 27.7Sample Packing List.........................................................................................77 27.8Instructions for Packing List..............................................................................78 28.extra documents requested.................................................................................79 28.1Fax advice example..........................................................................................79 28.2Instructions for extra documents...................................................................... .80 29.Bank instruction................................................................................................81 29.1Bank Instruction form.......................................................................................81 30.bill of exchange.................................................................................................82 30.1Sample Bill of Exchange form............................................................................ 82 30.2Completed Bill of Exchange.............................................................................. .83 30.3Instructions for Bill of Exchange/draft..................................................................84 30.4Types of drafts:................................................................................................84 31.Packing Declaration.............................................................................................85 32.CHRONOLOGY OF INTERNATIONAL TRADE DOCUMENTATION.....................................86 33.ways to finance in international trade....................................................................87 33.1Transferable Letter of Credit............................................................................. .87 33.2Assignment of Proceeds................................................................................... .90 33.3Finance From Financial Institutions......................................................................90 33.4Post Shipment Finance For Exporters....................................................................91 34.Export Market Development Grants (EMDG)........................................................... .94 34.1What is it?.......................................................................................................94 34.2Who is it for?....................................................................................................94 34.3What expenses cant be claimed?.........................................................................94 34.4What can you claim?......................................................................................... .95 35.Government Export Assistance...............................................................................96 35.1TradeStart........................................................................................................ 96 35.2New Exporter Development Program (NEDP).................................................... ......96 35.3Are you eligible to apply?....................................................................................96 35.4How can Austrade and TradeStart help?.................................................................97 36.THE ATA CARNET..................................................................................................98 36.1Countries recognising the ATA carnet.....................................................................98 37.Tradex Guidelines.................................................................................................99 37.1Who is eligible to apply?......................................................................................99 37.2How Do I Register?............................................................................................ .99 38.THE FAIR TRADE MARK (FTO Mark)...........................................................................100 39.Trademarks, patents and Intellectual PropeRTY,.......................................................101 40.Useful Australian Organisations............................................................................ ..102 40.1Australian Chambers of Commerce and Industry.......................................................104 41.National Industry Association..................................................................................105 42.Bilateral Trade organisations................................................................................ ..107 43.STATE Organisations............................................................................................. 109 44.International trade Useful Websites...................................................................... 110 45.GLOSSARY............................................................................................................111 45.1About the Author.................................................................................................116 45.2Acknowledgements..............................................................................................116 45.3Other Service Providers........................................................................................116
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