PROCEDURES FOR INTERNATIONAL TRADE
For international trade to take effect, certain procedures must be followed. The step-by-step procedures for making international payment are as follows
- The importer and exporter are brought together through different means e.g. letter of inquiry.
- The next step is for the producer to send quotations to the buyer in response to the letter of inquiry. The quotation will show the description and features of the products.
- After receiving the quotation, the importer will place an order with the manufacturer. The indent will show details of goods, prices and date of delivery.
- The next step is to make arrangement for payment through any agreed means of payment e.g. documentary credit and telegraphic mail transfer.
- Then, an agreement for the goods to be shipped through a shipping company will be made. The shipping agent will get all the necessary documents like shipping note, calling forward note etc. The goods will then be pack and well arranged in containers.
- The exporter will then prepare and send copies of bill of lading to the importer in advance. Other documents that will accompany the consignment will be prepared and sent.
- When the goods arrive, the clearing agent will process and complete all necessary documents. The agent will check the manifest to ensure that the goods are on board. The customs personnel will assess the consignment and compute the duties to be paid.
- The goods will be taken to the warehouse after all necessary documentations have been completed.